Food Franchise

Posts Tagged ‘Franchise Business’

In today’s society it’s easier now more than ever before for a woman to open a franchise. There are many franchise opportunities available in any business field for women.

The hardest part would be deciding what type of franchise business you want to open.

In order to receive enjoyment from opening your own business it’s best for you to do something that you like or that brings you joy in doing it. For instance if you don’t enjoy cooking why would you open a restaurant? Figuring out what you would still enjoy doing ten years from now will help insure your success.

Some women enjoy styling hair while others like working out, so opening their own gym would be the best franchise for them. The good thing today is women are not limited in the type of franchise they can enter into anymore. Gone are the day’s of sexual stereotyping, the kind of job’s women can do.

And that’s a good thing women can now do have job’s that used to only be available to men. Young girl’s are lucky that today’s business franchises realize the potential of women. It’s not uncommon to see a woman running her own mechanic’s shop.

Time’s have changed so much that women can have franchises in anything ranging from cooking to computer analyst. The possibilities are so endless that to name them all would take days. Finding what you love to do is all you need to do to get started. For instance my sister owns her own Bar-B-Que business, she has for twelve years now and still today people ask her is the man that smokes the meat there? What man? There’s never been a man working there smoking anything. Why are people so narrow minded to just assume something like that? So open your own franchise and laugh when they ask where’s the man that fixes transmission’s?

Another example is a local automobile used parts franchise, it’s owner is a woman and she has the most successful used parts business in town. That’s with three more automobile used parts business’s in the same town. I understand that it’s on the web and is the biggest in automobile used auto parts business in the state. That shows what a woman franchise can do.

The Franchise Business is probably not something new for you. You’ve probably heard about food and clothing establishments being franchised. But for those who do not have a clue, a franchise is a permission that is provided by the manufacturer or the owner to retailers or distributors to sell the manufacturers’ or owners’ products and or services.

Take for example Restaurant X who specializes in fried chicken. Restaurant X has established its name all over one country. Now, it wants to expand by providing franchising opportunities to smaller companies or individuals looking for a business to start. So if Individual Y wants to have a restaurant that serves fried chicken, he or she may opt to just get a franchise of Restaurant X. If it approves, the Individual Y can open up a Restaurant X of his or her own, using the brand, under the terms provided by the franchisor. Restaurant X will provide training, support and guidance to help Individual Y start the business.

Now that you have an idea of what franchising means, let’s begin to learn about the different types of franchise businesses. For those who are not familiar with the details of franchising, there are four types of such business:

1. The Product Franchise.

With this the manufacturer uses the franchise agreement to determine how the product is distributed by the person buying the franchise. A retail company can be provided with a franchise to distribute, for example, a range of tyres. The franchisee can utilize the brand name and the trademark owned by the manufacturer to distribute or sell the car tyres. The owner of the store will pay the manufacturer a franchising fee or agree to purchase a minimum inventory to sell on to their customers. The manufacturer gets the income from the purchase of the retailer, and/or the franchise fee, and the retailer gets the benefit of the brand and experience of the franchisor.

2. The Manufacturing Franchise.

The franchisee is permitted to manufacture the products under license and sell them using the originator’s trademark and name. They also get the benefit of the national advertising of the product they manufacture. The company owning the product gets the franchise fee and sometimes a fee for every unit sold. Examples include the food and beverage industry.

3. The Business Franchise Venture.

The franchisee purchases and distributes the products for the franchise owner. A client base is provided by the product owner for the franchisee to maintain. Vending machines are a classic example of this, where the franchisee purchases the vending machines and distributes and services them, taking their share of the takings of the machines.

4. A Business Format Franchise

This opportunity is very popular, and involves providing the franchisee a proven business model using a recognized product and brand. Training is provided by the franchise owner and assistance in setting up the business. Supplies are purchased from the franchisor and the franchisee pays a royalty fee. Frequently the franchisor will sell the franchisee the products or raw materials to provide the same quality of product. Most well known fast food franchises are of this type, and also many jewelers and other ubiquitous High Street names.

Franchising is a very popular way that many use to grow their already successful businesses, and a few end up going global. You need to get the right product and the right business in the right area, but if you achieve that and build the right model, then you can create a very successful franchise opportunity.

There are a lot of franchise opportunities out there. You have to prepare before you look into a franchise opportunity. Most important factor is the location of the franchise and how well it is run. Decide on what line of business you want to get into! Make sure you have enough cash to invest in a franchise. Trust but also make sure if it is the best for you. Call the franchise ask them questions don’t be afraid to do so, do good amount of research, Discuss your specific plans. Most people just fall in love with the product and don’t dig deeper, and they end up with a bad franchisor. Write down the names of the top five franchisor you think are. See what’s the best opportunity for you is, and check the least best opportunity off the list until you find the best one! My top two franchises are #1 Subway- it was rated #1 Global franchising opportunity by Entrepreneur Magazine in 2008. Growth continues to break records which is good. They say they are responsible for Initial franchise fee, Finding locations, Leasehold improvements and equipment, Hiring employees and operating restaurants, Paying 8% royalty to the company and a fee into the advertising fund. The company provides a lot. #2 Heaven’s Best- They were awarded Franchisor of The Year by Franchise Business Review. Net Worth Required $50,000, start up price is low. It is very affordable. Those are the two that I think are the best. They provide either affordable or the best opportunity. Some franchisors do wait for their Franchisers to hit the wall and sell off the franchise collecting for more royalties. Every franchise has their pros and cons. Some franchises are good and actually offer something valuable. Some franchise are bad and want to steal your money. Which leaves you in debt and you have to spend more money for the debt that you are in. That is not what you want. You want to make money so you can evolve your money. It’s your responsibility to sort the bad from the good and make the right choice.

I’m guessing that if you had a food franchise business offline, you would treat it as if your life depended on it. You would probably even be willing to work 12-16 hours a day to keep your franchise running smoothly!

What you need to realize when starting an internet marketing business is that it is still a real business. Since you already invested up to a million dollars to start up your franchise, it makes perfect sense that you would do whatever it takes to first break even.

And after breaking even you would then wait a few years before you see a positive return on your million dollar investment. Most of you have a realistic mindset when it comes to a ‘real’ million dollar business like that.

But what happens when most of you start a home based internet business? For most of you, the first thing to come to mind is ‘fast money’ and ‘get rich quick’ and ‘effortless cash’. That’s okay, that’s what I thought when I first started in internet marketing.

However, this kind of mindset leads you into thinking that all you need to do throw up a fancy website, watch TV, hang out with friends, and play in your local sports league and you would be rich!

The reality is, to make decent money over the internet it takes time and effort, just like a real business. The only difference is that you are running a business over the internet and it also requires time and commitment.

You already know that an advantage of an internet marketing business is that it has virtually no overhead compared to a traditional franchise. BUT because it’s so cheap to start up, that is also internet marketing’s disadvantage.

Naturally, you and I tend to treat an internet marketing business more like a hobby than a real cash flow generating business because it’s easy to get in and easy to get out. Your life would not dramatically change if you started and did nothing with it and failed.

But in a traditional fast food franchise, you would starve if you had that kind of mindset. But because you put down everything you possess (home, life savings, etc) into your franchise; your focus, determination, and sacrifice to perform and treat it seriously is an absolute must.

You understand that about a franchise, so let me ask you what would happen if you treated your franchise like a hobby? What if you treated your fast food franchise like you treated your internet marketing ‘hobby’?

If you have a J-O-B, what will happen if you didn’t feel like showing up to work for a week because your friends were coming to visit?

What if you decided to close your franchise a little early because you must watch that new episode of “Sex In The City”? With that kind of attitude and lack of discipline, you would get fired and your franchise will close down.

Before starting an internet business, or if you haven’t given your internet business the attention it deserves, ingrain in your mind right now that you need to treat your internet marketing business as seriously as your job or business.

Like your job and business, expect to put in the time and effort into building your foundation with internet marketing. Only then will you be able to see the rewards and lifestyle that your internet business can give you.

If you are over 50, retirement can loom like a cloud over your head. What’s in store? Is this all there is? Maybe your career has gone stale but retirement is still a good 10-15 years away. Maybe you dread the thought of retiring because you fear economic instability. Perhaps you like being active and worry that retirement will spell boredom.

Here’s an idea for those of you over 50; what about opening a franchise? At 50+ , you are the ideal candidate to buy a franchise. You have wisdom and experience. You know what people need and want. You have perspective that younger folks haven’t aquired yet. A franchise business may be just what you need at this point in your life!

Stuck in that rut of a job with years left until retirement? Now is the time to venture out into something fresh! What have you always dreamed of doing but just never got around to? Now’s the chance to open that restaurant, sporting goods shop, auto parts store, fitness center or salon you always talked about.

A franchise will take a lot of the guesswork out of opening your business. You will be able to concentrate on the fun part; making satisfied customers! Worried about economic security? A franchise can provide you with the income you need to retire without fear. Getting a loan when you are over fifty is much easier because you are established; your age gives you credibility with loan officers.

Maybe you are concerned about the work involved in a franchise. Well here is the great news; you can put that common sense and discernment you’ve developed to work for you. You are the boss; you get to hire the staff. You can hand-pick emplyees that you trust. A franchise is a wonderful gift to your family, also. In the present economy, it’s difficult to find a satisfactory job. With your successful franchise and business acumen, you can offer employment to children and grandchildren. If your franchise is a success, you will have a legacy to pass on.

If a franchise opportunity is tempting you, here is a guide to help you select the right franchise one. What are your hobbies and interests? Are you a good repairman or housekeeper? Open a hardware or cleaning franshies. Do you collect things? Open a hobby shop. What is your cultural heritage? You can open a specialty food or beverage franchise. Like fitness, travel or cosmetology? Open a salon. Use your interests as launch pads for potential franchise opportunties.

Here is a list of the most popular franchises, based on Entrepreneur’s Franchise 500 and Franchise Business Review’s Top 50. Ratings are based on start-up fees and overall cost compared got growth rate and earning potential. Prices reflect overall investment. 7-11: convenience store (costs vary)

#1 Franchise 500 Subway (76K-200K)

#2 Franchise 500 ReMax: real estate (33K-197K)

#10 Franchise 500 Kumon Math and Reading Center: Tutoring (31-110K)

#18 Heaven’s Best: Cleaning and Maintenance ($24,900-$60,000)

#1 2008 Franchise Awards i9 Sports: Sporting Goods ($45,900-$86,900)

#2 2008 SeaMaster’s Cruises: Travel ($10,250 – $16,445)

#6 2008 Awards Paul Mitchell School: Beauty ($75,000)

#3 2008 Awards Great Clips (107K-198K)

#19 Franchise 500 Merle Norman cosemetics (31-169K)

#39 Franchise 500 Jazzercize, Inc. (3K-33K)

#4 2008 Ace Hardware (400K-1.1 mil)

#12 Franchise 500 Matco Tools

#30 Franchise 500 HobbyTownUSA (50-200K) generally good ratings Lil Angels Photography (40K) generally good ratings

Buying a franchise at age 50+ can provide income, satisfaction and fulfillment for your retirement years!

Once you have selected a franchise you would like to buy, you must consider a number of factors to ensure your success in managing that franchise. You might think about how you are going to fund it or market it. Or your concerns may be related to staffing and training your new employees. These are big concerns, but you may be missing something big. One of the absolute most important factors in successful franchising is location. A great business in a poor location may be unable to turn a profit, and your franchise could become a losing endeavor.

How do you analyze your location to see if it will bring you success? The first factor to consider is the size of your city. If your city is simply not big enough, and is not likely to grow any time soon, you will not be able to sell enough products to turn a profit on your franchise, or even break even. This means you have to rethink everything. Maybe you can open your franchise in a neighboring city which is larger. Or you might try a different franchise which is more likely to be successful in a smaller locale because it has a broader appeal. You must also consider the size of your customer base. If you are catering to a small segment of the population, you must live in an even larger city in order to have the largest possible volume consumed.

Another important thing to consider is the location and routes that the customer you are catering to uses. You must know the target demographic of your customer and be able to capitalize on that using location. You want to put your franchise business on a route where your customer is likely to go, and to shop. If your target customer is wealthy, you want to keep your franchise business in an area of town where wealthy people shop, perhaps near stores with similar target demographics.

In addition, you will want to locate your franchise near related businesses in order to draw the maximum possible customers. If you are opening an office supply store you will want to be located near schools and offices in order to serve those customers and be most convenient for them. If you are opening a café, locate near businesses whose employees are likely to need coffee in the morning. Your customers will dictate where you locate your franchise business.

Employees are another important consideration. You want your franchise to be accessible to possible employees because otherwise you will have difficulty hiring and maintaining a quality staff, and consequently, quality service.

Lastly, consider the competition. You do not want to locate your franchise right next to a business that is a direct competitor. However, at first, you may be useful to locate your franchise near a competitor so that your customers are aware of your service and may defect to your business rather than your competitor’s.

Field-tested business consultant shares secrets of choosing the right franchise

Farmington Hills, Mich. – Even after one has made the initial decision to buy into a franchise opportunity, there is an endless checklist of things to consider before choosing ‘the right one.’

Recognized franchise expert and President of Finance and Development of Wireless Toyz; one of the country’s fastest growing companies; Richard Simtob recommends a cold, hard look at every one of his top 10 franchise selection criteria before making the leap.

There is one acid test Simtob prescribes to everyone who comes to him for advice about choosing a franchise opportunity: “Make sure you select a business which you are truly passionate about,” says Simtob, a 38-year-old entrepreneur who has managed the expansion of Wireless Toyz Cellular Superstores into national mega-chain status.

“Like any business you choose to run, you’ll be nurturing it for a long time,” says Simtob, “and nothing is worse than a marriage without love. Are you intimidated by technology and change? Then a telecommunications franchise is not for you.

“The second most important thing, is to have skills and a real liking for the daily operational tasks required in your selected business. If you hate dealing with people and problems, don’t choose a business in which success is predicated on being a good listener and inventive trouble-shooter. Don’t expect to change your basic character just because the money is good.”

Simtob sees this principle at work everyday at Wireless Toyz where he is responsible for the strategic direction and management of the organization’s franchise growth, as well as its technology, financial and business systems.

“Wireless Toyz is a good example where franchisees with passion for the business are typically more successful,” says Simtob, “we were founded on the realization that even knowledgeable consumers of wireless products and service are overwhelmed by rapid changes in technology, confused by too many choices and intimidated by ‘techie experts.’ A successful Wireless Toyz franchisee actually looks forward to every frustrated customer and unique problem that walks in the door. Patience is a plus, but what really characterizes our consistent sales leaders is a passion for solving problems, one customer at a time.”

Here are Simtob’s Top 10 criteria for choosing the right franchise – regardless of the businessperson’s temperament or personality type. Simtob emphasizes that this is not a definitive list by any means, but a good starting point. Legal considerations, for example, constitute an entire checklist in themselves:

1. Choose a business about which you are passionate. Do you believe in what you will be doing? If you love what you do, you’ll never “work” a day of your life.
2. Choose a business whose daily tasks align with things you like to do. Do you enjoy dealing with people, food, travel, coffee? Are you happy recruiting, managing and retaining employees? Make a list of likes and dislikes.
3. Can the dollar potential of the business meet your long-term financial goals?
4. Do the investment requirements and start-up costs fit within your budget? Is financing assistance offered? What is your risk tolerance?
5. Is the income potential – short and long term – sufficient for you and your family? Are royalty payments reasonable and designed for both the company and franchisee to profit? Is this is a true entrepreneurial opportunity to acquire wealth or just a repackaged “employment opportunity” and which do you want?
6. Assuming the product is superlative and demand has been established, is the franchise system itself a good one and based on a sound business strategy? Would you be comfortable executing that system?
7. Is the brand solid, recognizable and likely to lead to sales on its own strength?
8. Has the company been around long enough for most of the kinks to be worked out? Has the concept caught fire? Franchising is a business model in which being “in on the ground floor” is not always an advantage. Many never grow beyond a few units before they’re dust. Buying in too early can be risky, but also comes with rewards as a founding franchisee.
9. Are franchisees in the system allowed the level of autonomy and independence that you desire? Or will your business creativity be stifled at every turn? If you want maximum decision-making freedom, don’t consider a Mc-franchise. On the other hand, you may not like that feeling of twisting in the wind if there is minimal or no support. Consider the level of assistance you need for real estate, store layout and design, ongoing operational field support, business analysis, training manuals, marketing and advertising.
10. Knowing how to get into the deal is only half the equation. Is there an exit plan and separation strategies that are acceptable to you?

Hello everybody!

If your thinking on food franchise opportunities then your looking to make your own business grow using other business name which already has some type of growing on the industry of food.

What’s franchise?

A franchise is a license to use a trademark in exchange for payment of fees or royalties and involves some material assistance from the trademark owner. The typical business franchise provides the franchisee with a complete operating system that includes all of the systems, techniques, practices and sometimes equipment that the franchisee needs to get up and running and continue running. Usually, the franchiser also provides a marketing program and other support services.

Franchise businesses account for about one third of total retail sales in the United States, 10% of all full time businesses with employees, and franchises provide employment to over 7 million Americans. The average investment, before real estate expenses in over 75% of franchises, is less than $250,000. For this reason alone, franchises are appealing to many entrepreneurs.

There are a few franchises that are new, up-and-coming and are hot in the franchise offerings right now.

Health Career Agents provides health care providers with unique employment placement services through independent channels. The capital requirement needed to invest is $27,900.

Right at Home is a company that offers in home care and assistance and is dedicated to improving the quality of life for its clients. The capital requirement to invest is $50,000 – $60,000.

FranNet is the world’s largest network of franchise consultants. Consultants at FranNet assist new franchisees with every step of setting up their own franchise business. The capital requirement needed to invest is $30,000.

Altoids gum is being sold from designer candy machines. You can own these gum dispensers as a franchising opportunity. The capital requirement needed to invest is $16,000.

Diet Center is advertising that it is ideal for the female entrepreneur population. They are a leader in the weight loss industry. The capital requirement to invest is $29,292 – $55,374.

Mathnasium is a learning center that focuses purely on improving student’s math skills. The capital requirement to invest is $41,000 – $65,200.

Vendstar vending machine sells to individuals who are interested in business opportunities. The capital requirement needed to invest is $2,500 – $25,000 depending

It’s really not hard to figure out which franchises are the most successful. You see them advertised on television and on billboards, hear them advertised on the radio, and cannot drive through a shopping center anywhere in the US without passing one or more of them.

Not only do you know who they are, you have probably been in some of them so many times that you know exactly what they have to offer. These franchises, in other words, have succeeded wildly in branding their products. What are they?

Franchise restaurants, of course. Anybody borne after 1955 probably cannot remember a world in which McDonald’s didn’t exist, and they were only the beginning. If you are one of the millions of people thinking about breaking away from the nine-to-five routine and starting your own business, you could do much worse than a franchise restaurant.

Why? Because given the choice of trying to establish a loyal customer base for a new, unfamiliar product of your own choosing, and going with a restaurant franchise with food already familiar and proven to keep the customers coming back, the odds are definitely on the side of the franchise restaurant.

The Pros and Cons

There are, of course, big risks in starting a restaurant of any kind. Only those people who have a genuine love for the business usually stick with it long enough to make a profit; while having a franchise restaurant may ease some of the concerns, there are some realities you need to face before you start.

First, buying a franchise restaurant can be very expensive; they can include actually buying the land on which you will build your operation. You may be able to get help with your financing from the franchisor, and banks also realize that a restaurant franchise is one of the less risky small businesses, so may be willing to give you favorable terms.

On the positive side, you will have the advantage of selling only those foods which are proven moneymakers, so you can limit your inventory, which will be ordered from the parent company’s preferred suppliers. You and your company’s other franchisees in the area can share the costs of joint advertising. For more info see http://www.startfranchisehelp.com/Franchise_Broker/ on Franchise Broker.

On the downside, be prepared for long hours at your franchise restaurant; as a franchisee you will have certain standards, both service and financial, to maintain, and you will be giving regular reports to your franchisor. If you have personnel shortages, you and your family members will have to fill the gaps.

Be Prepared

You can almost count on having personnel problems; low pay and unchallenging work will make it hard to keep employees for extended periods. Restaurant employee turnover is extremely high. But if you and your family are willing to supply the elbow grease, your chances of succeeding with a well-established franchise restaurant are better than they would be in any other business you could start.