Franchise

Franchising is one of the fastest growing areas of the modern business world. For young entrepreneurs franchising presents an ideal opportunity to get started in business simply because you don’t have to start from scratch. Aspiring entrepreneurs simply need to choose an existing brand, then expand it and refashion it with a new spin of their own devising. They will be following a business model that has been proven to be phenomenally successful in America today. Among the franchising opportunities that are available today, few of them are as popular and youthful as that of the market for children, whether it is toys, games, clothing, education or any other field that caters to the kids’ market. Toy stores and other franchises geared toward the younger generation are rapidly establishing themselves at the very top of the business franchising market in today’s world. Perhaps it is because today’s young businessmen are not so far removed being kids themselves. Many enjoy playing computer or television games that children also enjoy, and many a businessman can remember what children of all ages like to play with and what is likely to appeal. Whatever the reason, the fact cannot be denied that the kid’s market sees a massive turnover that the wise businessman would do well to pay attention to.

More than at any time in the past many of today’s kids are in control of their parents’ income; it is this that makes the kid’s market so valuable in today’s business world. It was not so one or two decades ago, but today Americans spend more than 100 billion dollars per annum on what they perceive to be their children’s needs, let alone their wants. With this kind of money sloshing through the economy it is not to be wondered at that the kids’ market is booming. Moreover, the amount of money spent on children’s goods is only going to grow in the coming years, far ahead of the rate of inflation, according to industry experts.

One of the chief causes for the rapid growth in this market might be attributable to the steep decline in families with only one “bread-winner” who earns a “family wage”. While this trend has been deplored by some more conservative family experts, the fact remains that many families are now supported by two working parents who have to juggle the twin responsibilities of career and children instead of devoting themselves to one or the other. The result is that while there is more expendable income passing through the family budget, there is also less time for parents to spend with their children. This means that children are often forced to entertain themselves while parents seek to make up for time away from the family by spending more for their children, and this of course leads to greater amounts of spending on toys, books and kid’s fashion.

With both parents working, huge opportunities have opened up in markets such as day care provision and extra-curricular activities for young children. This, together with the increased spending on kids’ entertainment and necessities, has created a wide open world of franchise possibilities. The juvenile market should not be ignored by anyone wishing to enter an industry with unlimited growth potential. If you are someone who wants to go into business for yourself but aren’t sure what market to focus on, you could hardly do better than focus on developing a business or service for the kids market. Kids grow up quickly, but the kids market is certainly not going to disappear, so investing in it could provide you and your family with a profitable business with massive future potential.

Deciding to open a franchise business is a great choice if wanting to own and manage your own business. Franchise businesses are known for being more successful than independently opened businesses. This is mainly because the franchise business has already gone through opening and daily processes so they have most likely already worked out the bumps along the way. However, franchises are not just guaranteed to be successful. If you are deciding to become a franchise owner you will have to invest a lot of time and commitment to your new business. Also way to boost your chances of success is to have a support network for your franchise.

It is important to have different people you can call on when you run into road blocks or discouraging times while owning and managing your franchise business. You will need different support from different people on your franchise journey.

First of all you need to have your families support in your decision to become a franchisee. It is important to talk with those in your household and let them know how it will work. You may know that you will be making sacrifices, however your family may have to make a few sacrifices as well as you begin this great endeavor. Be sure to let them know exactly what to expect. Having your families support to call on and provide you encouragement will be of great help when you need it. Also, if they know ahead of time what to expect they can help you rather than work against you out of anger of the sacrifices they may make.

You should also have someone who can provide you business support. Your family can be great for the moral support, but you need to have someone who can help you sort out the business aspect as well. This may be someone that you know well that is business savvy or a franchise attorney. You need to have someone who can provide guidance to you as you embark on a new business, especially if you are new to owning and running a franchise business.

It may even be wise to create a support network with fellow franchisees within your franchise. It is always good to have someone who can relate directly to what you are going through. Also if they have been in the franchise for some time they should also be able to provide more specific answers to questions you may have. Since they are a fellow franchisee from your franchise they know more specifically how your franchise works.

Even though franchises have a high success rate, you still need to set yourself up for success! As soon as you begin the steps to becoming a franchisee it is important to start setting up all the support networks you will need like family, business and fellow franchisees. This may be what really helps you become a successful franchise in the long run.

Start looking for a franchise to invest in today, and set up that support network as well!

In the Franchise Industry the most common questions we get asked by people looking for a franchise opportunity are covered in this list.

Question: What is franchising?

Answer: Franchising is where you buy the rights to a business concept, trademarks & know how. In return you pay a franchise fee and a percentage of your profits.

Question: What is a franchise?

Answer: A franchise is, in its simplest terms, an agreement between the franchisor and the franchisee, whereby the franchisee has the rights to use the logos and trademarks of the franchisor and the ability to market the franchisors products. Both parties commit to a legal agreement which protects both their interests. The franchisee usually pays an initial franchise fee and ongoing royalty payments.

Question: Is it better to buy a franchise opportunity or start my own business?

Answer: Based on the surveys carried out by the US Department of Commerce & NatWest/BFA, the majority of franchisees are still trading profitably after five years. Everyone knows that the majority of people who start out in business on their own, I am sad to say, end up failing within the first three years. When you buy a franchise business, in return for a franchise fee, you receive training and ongoing support. You also benefit from the knowledge that the franchisor has picked up over many years.

Question: How much does a franchise business cost?

Answer: There are no fixed prices for a franchise opportunity. Depending on your budget there are franchises to suit most people ranging from only a few thousand, to over a million.

Question: What’s the first step to buying a franchiser?

Answer: Do a search on the internet for the following: “franchise”, “business franchise” & “franchise opportunity”. You will find a wealth of material on the internet. You can also buy magazines that specialise in franchises and of course, you should attend franchise exhibitions where you can meet the franchisors or their agents and ask questions. At the exhibitions, in some cases you will also be able to touch and feel the products that form the cornerstone of the franchise!

Question: How do I raise the funds required to buy the franchise?

Answer: Most banks have special units set up to help potential franchisees. In many cases the franchisor has done the hard work for you and arranged special terms with lending institutions!

Question: Which franchise is right for me?

Answer: The best franchise for you is not necessarily the business that makes the most money! Buy a franchise which suits your lifestyle and is interesting to you. If you like the products that you are marketing, then you are much more likely to enjoy your work!

Question: Can I sell my business when I want to move on?

Answer: If your franchise business is trading profitably, then you should be able to sell it like any other business. Your franchise agreement will go into detail the processes that are involved in selling the business. Unfortunately, if your business is not making a profit, then it will be difficult to find a buyer.

Finally, always take legal advice before signing any franchise agreement. Your lawyer has to ensure that the agreement is fair for both parties. Your accountant will help in evaluating the profit potential of the franchise opportunity.

With a franchise business, the chances of success are much higher. According to the US Department of Commerce, after completing a 7 year study, over 90% of franchises are still trading profitably.

So why am I saying that a franchise business might not be right for you?

A franchise is not right for you if:

1) You are the type of person who does not like following guidelines

2) You believe that you know better then everybody else

3) You can’t accept other people’s advice

4) You want to change the look and feel of the product

5) You want to do things your way

6) You expect others to take responsibility

7) You don’t believe in hard work

You are aggressive and can’t control your temper

9) You are not ready for commitment

10) You can’t work with people

The limitations to a franchise opportunity are that you will not be able to deviate from procedures. You will have to buy from predetermined suppliers and use the computer systems and software that has been chosen by the franchiser. You will also be limited to where you can operate the business as the franchiser will not allow you to endanger his reputation, in a location, where he believes that there is little chance of success.

When people choose to go it alone, 80% of business start ups fail within 5 years. This is because they are entering a market where their business knowledge is usually poor, although their product knowledge might be good. All their experience comes from trial and error, and the banks are quick to pull the plug if cash flow projections are not met.

Now a franchisor has been through a period of trial and error. They have found a system that works and suppliers who deliver. Why would they allow you to change this proven system?

Although the chances of success in a franchise opportunity are much greater then if you choose to start your own business, only you can decide if you can live within the confines that have already been determined by others….

Irrespective of which road you choose to go down, always take professional advice.

There is always risk involved when you are buying a franchise. It does not mean that if the franchisor is well known, you will also be successful. This is the reason why you have to look into several factors before investing. Think of it as an investment that you can make some profit from if you do the right things.

First of all, you should consider the reputation of the company or the franchisor. This involves the reputation of the franchisor, services, training, support, experience and profit potential. The ultimate reason for franchising a business is its brand and profit potential. You should look at the popularity of the company you are franchising with and find out if it has a registered trademark. This is important because you have to make sure that the business is not just an imitation of another person’s ideas.

You should also find out if the services offered by the company meet your target market needs. The experience of the company is important as well. You have to be aware of the length of time it has been operating or working to know how experienced the franchisor is in the business. Sometimes, the franchisor cannot guarantee close handling of the franchisees needs. That is why it is vital to understand the support and assistance that the company gives to its franchisees.

The training offered by the company is very important, since without adequate training you will not only fail to meet the standards of the franchise, but also be inadequately equipped to run your business properly. A failure of a franchisor to properly train you indicates a weakness, and that could be an indicator for you to get out as soon as you can. Your success depends upon the company’s success, and if the company is based on a foundation of poorly trained franchisees, then the future is bleak.

The franchising disclosure document is important, and you should be provided with a copy of that before signing up. This document will give you valuable information regarding the company, including the business background, the names of the executives, the business processes, the franchising system, and the experience of the company in franchising. Such a document also contains information about the history of litigation, costs, bankruptcy, terminations, restrictions, advertising, and current lists of franchisees. So make sure that you read and understand all the franchising disclosure information, since it will enable you to ask the right questions regarding the disclosure, so that you can get proper clarifications before franchising.

After gathering the information regarding the franchisor, you need to look at other important factors such as the location, market, demand, and competition. The location where you plan to establish the business can greatly affect your venture. Your franchising success will depend a lot on this because these other factors are affected by the geographical location of of the business. A sandwich bar might do reasonable lunchtime business in an industrial estate, but very little at other times.

Selection of the location should be strategic and well planned. Visual inspection is needed to find out if there are competitors in the area that offer the same services. Visit the area you have in mind and have walk around. Knowing the nearest franchisees of the same company is also essential because they can also be competitors. The location of your business should be accessible to your target market. Your market research should tell you which types of location are best for your kind of business; you will want somewhere that provides good exposure and best visibility for your business.

With regard to finance, the cost of the franchise should be well analyzed. Is franchising the ideal route to entry? Can you earn back your investment in a shorter span of time? You need to know how long the return of your investment is. You should also expect additional overhead costs when franchising because earning back your investment usually takes more than a year. This means that you will be spending more before you actually start making profit. There are also other expenses to consider such as the rent, supplies, utilities, and the payroll. Therefore, make sure that you have the necessary funds to sustain the business, so that you will not have to face the risk of bankruptcy.

With all these being considered, costs and benefits of franchising a business should be thoroughly analyzed before making a decision. Some of the factors mentioned above are disregarded by people when they go into franchising, but in order to be successful in the franchising business, you have to consider all these factors and make the necessary effort to ensure that they are in line with your business goals.

Given that you have done your homework and market research, there is no reason why you should not join all those others that are successfully operating a franchise business.

Computer franchises have been one of the most affordable and yet the most profit making franchise opportunities available to the franchisees in recent times. And some of the most popular and thriving websites have been created by these franchisors that have created waves across the franchising industry with their quality services and excellent ROI.

As a franchisee you should be aware of the popular franchisors in the industry as it will give you an idea of which way the common populaces of franchisees are hitting at. Even though choosing a franchise option should not be based on public opinion only, but investing on a popular franchise decreases the risk factor significantly.

Here are some of the most popular computer franchisors that are ruling the computer franchising industry today:

Activ Web Design – This web design franchisor is spreading its wings all over UK and has already got many franchisees hooked on. They also provide training, sales and marketing support. Thus will help even a non-professional with less or no experience to buy and operate a franchise opportunity offered by the company.

Angel 24-7 – It is a reputed online recruitment franchisor and being a franchisee with this company is a big bonus. With full training and support provided, the franchisees can start from scratch and yet establish themselves as successful providers of business solutions. With as little as £4,999 being the initial investment, this computer franchise option is better than the others. Also, with employers and companies looking for easy ways to recruit employees, you as a franchisee can make a fortune by catering to their services through Angels 24-7.

IRUN – This is a business development, sales and marketing company that caters to its clients through business solutions online. It doesn’t need you to have technical expertise as a franchisee but demands for a mindset that can make sales and business development seem lucrative as a service to the customers.

Locallife – A business and community resource website, Locallife as a franchisor maintains that its franchisees be at ease with attaining quality information and data for the interested consumers. With complete training and support, a franchise opportunity with this computer business franchisor ranges from £5k to £20k depending on the area where you work as a franchisee.

Techclean – A company that is a pioneer in IT cleaning business and other peripheral IT objectives, working as a franchisee with them is a worthwhile venture. The initial investment is £18,950 exclusive of all taxes, and with a turnover often crossing the £100k mark for a franchisee, the prospects are promising.

Websaver – UK Websaver is a company that offers loyalty card schemes; albeit for local businesses and people. With an initial franchise investment of £6,995 + VAT, a franchisee may well weigh his options in favor of working with them. The rewards are quite alluring. Also you get to do exclusive business in your local area and your profits too are proportional to the work you devote.

ORCA – An enterprising website design company, ORCA is a great franchisor to work with on your initial computer franchise venture. Moreover, along with an extensive mentoring program, the franchisees are provided with a business laptop and dedicated teams to help in business development. This franchise opportunity comes at just £12,950 (+ VAT) which is affordable for most initial entrepreneurs.

With the popular websites on your radar, you can explore beyond these computer business franchisors as well. As soon as you think that a franchise opportunity in the computer business suits your requirements, don’t delay. Grab the opportunity at once and start progressing in your computer franchise business career.

Have you considered purchasing your own business? Perhaps you have contemplated being your own boss for some time but dont know which business is right for you. Or maybe, you have particular interests or experience that would be very useful as an entrepreneur that would allow you to work for yourself and create a comfortable income at the same time. A franchise may be an exciting option because it can offer an already established brand name complete with support and training to get you started. Checking out popular social trends may also help make your business search easier by learning what kinds of franchise businesses are in high demand and yielding the best profit and sales.How Social Trends Influence FranchisesLets take a look at the food industry. Since many consumers are often busy with little time to spend in meal planning and preparation, they often seek healthy yet convenient foods. So franchises such as JuiceBlendz offers high quality, nutritious and fresh smoothies and more for the customer who wants to enjoy a healthy alternative. And Whata Lotta Pizza provides a menu with items made from the best ingredients and most wholesome selections. These are only a few of the many food franchises that cater to societys interest and desire for food that is healthy yet fast and convenient.Time is of the EssenceRemember the old adage, Time is money? It couldnt be more relevant than it is in todays society. Not only is your franchise saving your clients time and money; it would be the way to significantly increase your own sales and profit too. Automotive franchises such as Oil Can Henrys and Midas pride themselves on fast, efficient service at affordable prices. Satisfied customers and great franchise advertising will increase your sales and client base quickly and ensure that your franchise is a success.Baby Boomers in NeedChoose Home Senior Care provides excellent home care for those needing non-medical assistance and personal care with the greatest compassion and understanding. And Seniors Helping Seniors is a novel franchise opportunity where seniors who wish to own, operate or simply work in home healthcare can provide much needed services to other seniors who require assistance.

With so many franchises available, there are a number of choices that can be a dream come true for potential franchise owners. Paying attention to current social trends and changes in todays society may be very useful as you decide which franchise is the one for you. If having your own business is in your future, a franchise may be a great place to start.

 

How Not to Buy a Money Burning Franchise

 

Frank Ho

Ho Math and Chess Learning Centre

BC certified Teacher

Vancouver, BC, Canada

www.mathandchess.com

In my 10 years of tutoring business, I have seen so many learning centers come and go in Vancouver, Canada. I had a binder full of names of learning centers which were set up in the past 10 years but most of them are gone now, no where to be found. So if anyone tells you that the learning center is a very easy to run business. Don’t believe it.

To think by joining a franchise, it would be easier to run than running on your own is also a mistake. My answer to this kind of thinking is caveat emptor!

There are so called XXX Learning Center Franchises out there to just want to take upfront hefty franchise fee from you and if you could succeed or not, it is an entire different story. The way to make money for this kind of  Learning Center Franchise is to multiply as soon as they can and milk upfront fee as much as they can out of each franchise. For example, if you pay upfront $25,000 to XXX Learning Center Franchise then if they can convince 200 franchisees to join then how much can they get out of the entire fiasco? Let’s do the math.

$25,000 times 100 franchisees = $2,500,000,

Over 2 millions in a few years for the franchisor, not bad Oh? What happens for the franchisee? If the majority of them are struggling for survival but just don’t have the courage to close the learning centers since each franchisee paid $25,000 for it and just could not let it go? It is a sad story.

Do you like the landlord who gives a 20% rent increase when comes to renewal time with no justification? Unexpected and sad surprise, who needs this kind of life?

Don’t burn your money by buying a bad learning center franchise. Buy a good and reputable one with very reasonable franchise fee.

Many learning centre franchises give you the “big” talk and mumble and jumble about how great their material or teaching method is but if you examine carefully then you would find most of their description about how wonderful their material is has no real substance.

How is their math material different from others? Or Is it different from the textbooks used at school? Is it different only in quantity? Are the questions only harder? Why the material increases children’s ability in thinking skills? Are there any research papers done on the kind of materials been promoted?

Most of the math learning center could not answer the above questions clearly or will elude the question by answering something like our material is great and our students like them etc. without touching the real issue that is how is the material unique?

You got to know what product you are buying after spending $25,000 upfront fee. This is the most important discriminating factor in buying a math learning center franchise.

If the founder of the learning center did not have any specific philosophy on how math should be taught when set up a learning center many years ago then how could we expect him/her to have one 10 years later? It is a joke. to read their statement on why their math material is good and useful to children when they did not have any clue in setting up their first math learning center.

Ho Math and Chess Learning Centre started with the view that math should be taught in a multi-sensory way that is to not just do computations. There are hundreds of research reports on learning chess benefit kids in many different ways. The only problem is there were no materials which integrate math and chess together so kids could learn math and chess all in one until I created them and started to use it at Ho Math and Chess learning center.

We have the world first, one of its kind, very unique and copyright protected math product for grade 1 to grade 7. You can examine my math products on the web right in front of your eyes. Go to www.mathandchess.com and download a few samples of my worksheets, take a look.

The math learning center business is very competitive and only the best will survive in the years to come, so don’t buy into a math franchise with no unique product. Buy a math learning center with unique, marketable and effective product.

You should not just buy the franchise name, the product is equally important.

Franchise Opportunities in the UK

A Look at the Growing Popularity

Have you noticed the huge increase in the number of franchises in the UK marketplace today? It is difficult to miss the many shops and restaurants that boast a well known, name brand that attracts customers from far and wide. The fact is that franchise opportunities in the UK are becoming a popular choice for many prospective business owners.

The benefits of owning a franchise business are very attractive to anyone considering business ownership. With a very reasonable investment and little or no previous business experience, most people can run a successful franchise. With a proven, reliable operating system and a large franchisor backing individual franchises, the opportunity to build a solid and profitable future can become a reality. This is why the growing popularity of the franchise business is taking the UK by storm.

An Amazing Opportunity

Purchasing a franchise in the UK may be one of the best decisions you ever made. Most of the planning and initial set up is already done for you and many franchises come as turn key operations in which you need only take over and maintain daily operations while profiting at the same time.

Franchisors offer extensive training and ongoing support for both franchisors and their employees. So, while the details involved in setting up the business are already handled by the franchisor, so too are the day to day essentials. Franchisees clearly benefit from the national promotions and advertising campaigns launched by the franchisor because customers are very inclined to purchase products and services from a well known and trusted company. Plus, as a franchise owner, you have the added comfort of starting your business with an established brand name that will generate immediate sales.

Each franchise business is designed and researched so that franchisees can take advantage of the time and effort already invested by the franchisor. Franchises provide products and services that society wants to buy. They readily offer the newest and most innovative items that are in high demand. This is a result of careful planning and extensive study to ensure that the products and services offered are of the highest quality and exceed customer expectations. With such a system in place, franchisees are at a definite advantage when they purchase a franchise in the UK.

Many Reasons to Franchise

Among the many reasons that franchises are rapidly growing in numbers is largely due to the fact that they offer an exceptional business opportunity with minimal risk and often limited investment requirements. For those who want to own and operate a business, most franchises are the perfect solution. What could be better than being your own boss and going to work each day for yourself?

While many people dream of having their own business, many find the process of starting a business from scratch to be much too demanding, costly and slow. There is often a significant start up cost as well as ongoing expenses that can easily build up as the business matures over time. It can take years to establish a customer base and operating system that works. Plus, starting a business from scratch is often difficult to finance since most lending institutions are wary of start up businesses with no previous sales records or performance reports.

Enter, the franchise business.

Many of these obstacles are non-issues when considering a franchise opportunity. Because the franchisor, or head company, has extensive material and proven business strategies and operating systems, a potential franchisee reaps the benefits as soon as they take over ownership of a franchise. It is no wonder why franchise businesses in the UK are becoming the business of choice for many entrepreneurs.

When a potential franchisee decides on the kind of business they would like to own and operate, they embark upon a new and exciting business experience that can offer an excellent framework for future success and profit. Most importantly to many is the notion that they get to work largely for themselves each day and are their own boss. This is a dream come true for many individuals that is much too tempting to ignore. And owning a franchise makes it so much easier.

Planning for the Future

Yet another reason why franchise businesses are steadily gaining ground in the UK market, is the need for potential franchise owners to envision a bright and successful future. With all the benefits of franchise ownership, anyone who decides to buy a franchise and makes a concentrated effort to follow the plan set out by the franchisor, can be relatively confident that long lasting success will be the result.

The firm, solid base of a franchise is certainly an important reason why these businesses are gaining the attention of many entrepreneurs in the UK. With so little to lose and so much to gain, franchise opportunities will continue to grow and become serious competitors in the UK marketplace.

Once upon a time, you were reading Robert Kiyosaki’s “Rich Dad, Poor Dad”. At that moment, you realized that if you wanted to become financially independent, you would have to start your own business.

You came up with a great plan and put it into action. It becomes more successful than you could ever imagine. You become successful within your community and your wealth begins to grow. However, it seems to top out at some point. Could this be due to the competitive franchises that are all around you? Could your business have more growth potential if you decided to buy into a franchise? Let’s just say that it’s a possibility.

But what is a franchise business? This is simply a method that a company can use to easily distribute any of its services or products via retail outlets which are owned by separate, third party operators. These third party operators conduct their business by using the franchiser’s trademarked goods, marketing methods and services as well as the name recognition of the mother company. It’s a great way to expand operations and grow geographically. But is it the right way to go? To know the answer, let’s take a look at the pros and cons to starting a franchise business.

First, let’s go over the advantages. Suppose that you were the franchiser…The franchisees will be responsible for putting up capital, management and, of course, employees for the target location. This reduces your financial commitment. You, as the franchiser, will only have to grant the rights to have the franchisee distribute your trademarks, products or techniques. Because the franchisees also become owners, their motivation to succeed would most likely be greater than that of an employee of the franchiser. This is a given since they also get a share of the business profits.

Every new location that’s set up immediately earns a profit for the franchiser. The franchisee needs to pay you what is called a franchise fee. Aside from that, the franchiser would receive a continuing royalty, which can be anywhere from 9% to 10% of the gross income of the franchisee. With that being said, the franchiser has to make sure that the proposed location would be a good, profitable venue with high traffic and accessibility. Franchising your business can also open up opportunities for international expansion.

Sounds good so far, right? Not quite. There are still some disadvantages to becoming a franchise business.

You have less direct control over the network. Nevertheless, you still have enough control to be able to terminate a contract if the franchisee does not follow your agreements.

There may be times when the franchisee would resent the continued royalty payments. Some would even think of ways to terminate a franchise contract. The might even try to violate the terms of the franchise agreements. These are all serious issues that could arise and you should be aware and prepared, just in case.

Another disadvantage is when a franchisee fails to uphold the quality control methodology you have implemented in your business. This is an issue that can directly affect your company’s image. It may even cause a customer or even a member of the personnel to become injured. The franchisee can be sued and, as we are all aware, no one likes a lawsuit. Unfortunately, when that happens, the franchiser gets named in the litigation as well. Although, if the franchiser has not detailed how the franchisee should act in the particular area affected, the franchiser has usually been successful in defending such lawsuits.

In other words, you should definitely think long and hard about deciding to franchise your business. Weigh the pros and cons carefully. And, if you play your cards right, the right choice can surely boost your business.