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Franchise, Business Franchising — Just What Should You Look For In A Franchise?
by John Thompson
What is a Franchise? · An authorization to sell a company's goods or services in a particular place · A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area.
How did franchising start? One of the earliest franchisors was the Singer Sewing Machine® Company, which set up dealers shortly after the Civil War to sell and repair its revolutionary machines throughout the country. Shortly after the turn of the century, Coca-Cola® licensed others to manufacture and distribute its wonderful elixir. Ford Motor Company® later set up dealers to sell and service its products. Of course, McDonald's® is an example of how an entrepreneur (Ray Kroc) could take an idea and quickly spread it coast to coast (and eventually around the world) without starting out with millions of dollars in capital. Many companies turn to franchising as a system for expansion because they recognize that they can grow rapidly with a minimum amount of capital and enlist top-notch partners if the company is willing to share the profits. The company that sells licenses to its system is called the franchisor, while those who open their own units are called franchisees.
Why franchise? There are many reasons why franchising is the best type of operation for the majority of first-time business owners. Most revolve around the increased probability that the business will succeed and provide profits to the owner in a shorter time frame than an independent business. This allows the owner to address her or his personal goals both financially and personally. Here are a few, more detailed, answers to that question.
Earn what you’re worth Thousands of franchise owners report they were handicapped in their corporate careers by company policies and supervisors that put a cap on their earnings. When you own your own company, your efforts are rewarded and your personal income shows it! Satisfaction of Achievement Many business owners report that seeing their actions turned into reality without stagnating for months in committee meetings (as often happens in big companies) is a major reward of owning their business.
Quicker Start-Up than Independents A proven plan out-paces an independent’s hit & misses operation almost every time. Looking at just independents that succeed you'll find that franchises grow quicker, reach break-even sooner and succeed more regularly than others in the same industry as depicted in the accompanying chart What do I need to know? Another question that arises is “What do I need to know in building my own franchise?” There are four main ingredients found in each business...
· The product or service that is delivered to its customers.
· The location that the business occupies.
· The amount of capital that was invested or borrowed by the venture.
· The management team that runs the company -You! Making a choice Choosing the right franchise can be a confusing process.
First, you must believe in the product or service that the franchise network delivers. Is the niche stable, expanding, long-term, saturated? Next, you must verify the industry's future. What do the trade papers predict? Check your aptitude for the job. If you don't enjoy math, an accounting franchise isn't for you, etc. Often outside sources can help here. A personality and aptitude test (similar to those used by major corporations) will help you discover your hidden talents.
Determine the earnings capability. Most franchisors can't provide earnings projections, but you must make an effort to determine your future return.
Confirm the potential earnings and the franchisor's integrity with existing franchisees. Each franchisor will give you a list of its network members.
You should call them to get their confirmation of your projections. If a franchisor (or business opportunity seller) will not give you a list of its franchisees, you should heed the red flashing lights and end discussions.
While this article is just the tip of the iceberg, you can get a good idea why you should start your own franchise, today.
About The Author: John Thompson is editor of http://www.best-franchise-resources.com : a website full of business franchising resources.
These articles on lifestyle and more
Return to the selection of franchise
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Franchise, Franchise Opportunity - What Questions Should You Ask The Franchisor? by Naz Daud Approximately 633 Words
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You may want to try these websites for additional information
http://www.entrepreneur.com/Franchise_Zone/FZ_FrontDoor/0,4670,,00.html
http://www.franchise1.com/
http://www.entrepreneur.com/franzone/0,4670,,00.html
The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!
What is a Franchise? · An authorization to sell a company's goods or services in a particular place · A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area.
How did franchising start? One of the earliest franchisors was the Singer Sewing Machine® Company, which set up dealers shortly after the Civil War to sell and repair its revolutionary machines throughout the country. Shortly after the turn of the century, Coca-Cola® licensed others to manufacture and distribute its wonderful elixir. Ford Motor Company® later set up dealers to sell and service its products. Of course, McDonald's® is an example of how an entrepreneur (Ray Kroc) could take an idea and quickly spread it coast to coast (and eventually around the world) without starting out with millions of dollars in capital. Many companies turn to franchising as a system for expansion because they recognize that they can grow rapidly with a minimum amount of capital and enlist top-notch partners if the company is willing to share the profits. The company that sells licenses to its system is called the franchisor, while those who open their own units are called franchisees.
Why franchise? There are many reasons why franchising is the best type of operation for the majority of first-time business owners. Most revolve around the increased probability that the business will succeed and provide profits to the owner in a shorter time frame than an independent business. This allows the owner to address her or his personal goals both financially and personally. Here are a few, more detailed, answers to that question.
Earn what you’re worth Thousands of franchise owners report they were handicapped in their corporate careers by company policies and supervisors that put a cap on their earnings. When you own your own company, your efforts are rewarded and your personal income shows it! Satisfaction of Achievement Many business owners report that seeing their actions turned into reality without stagnating for months in committee meetings (as often happens in big companies) is a major reward of owning their business.
Quicker Start-Up than Independents A proven plan out-paces an independent’s hit & misses operation almost every time. Looking at just independents that succeed you'll find that franchises grow quicker, reach break-even sooner and succeed more regularly than others in the same industry as depicted in the accompanying chart What do I need to know? Another question that arises is “What do I need to know in building my own franchise?” There are four main ingredients found in each business...
· The product or service that is delivered to its customers.
· The location that the business occupies.
· The amount of capital that was invested or borrowed by the venture.
· The management team that runs the company -You! Making a choice Choosing the right franchise can be a confusing process.
First, you must believe in the product or service that the franchise network delivers. Is the niche stable, expanding, long-term, saturated? Next, you must verify the industry's future. What do the trade papers predict? Check your aptitude for the job. If you don't enjoy math, an accounting franchise isn't for you, etc. Often outside sources can help here. A personality and aptitude test (similar to those used by major corporations) will help you discover your hidden talents.
Determine the earnings capability. Most franchisors can't provide earnings projections, but you must make an effort to determine your future return.
Confirm the potential earnings and the franchisor's integrity with existing franchisees. Each franchisor will give you a list of its network members.
You should call them to get their confirmation of your projections. If a franchisor (or business opportunity seller) will not give you a list of its franchisees, you should heed the red flashing lights and end discussions.
While this article is just the tip of the iceberg, you can get a good idea why you should start your own franchise, today.
About The Author: John Thompson is editor of http://www.best-franchise-resources.com : a website full of business franchising resources.
These articles on lifestyle and more
Reprint this article free of charge as long as you keep the author's resource box or bio intact and the links active. A copy of the ezine or URL of the page where the article was reprinted emailed to the author would be very much appreciated. franchise
Return to the selection of franchise
You may want to try these articles on franchise
Franchise, Low-cost Franchise Businesses Give Options For Buying The Right Franchise At A Cost You Can Afford by Raymond Lawrence Approximately 882 Words
Franchise, How Will You Know If A Home-based Franchise Opportunity Is For You? by Raymond Lawrence Approximately 1170 Words
Franchise, Buying A Franchise Versus Starting A Business by Raymond Lawrence Approximately 958 Words
Franchise, Top 10 High Income Business Opportunities by Raymond Lawrence Approximately 704 Words
Franchise, Which Is The Best Franchise Business? by Naz Daud Approximately 551 Words
Franchise, Franchise & Business Opportunity - Get All The Facts Before You Buy by Naz Daud Approximately 541 Words
Franchise, Franchise Opportunity - What Questions Should You Ask The Franchisor? by Naz Daud Approximately 633 Words
Franchise, Financing Your Franchise: Sba Loans by Jamie Davis Approximately 673 Words
You may want to try these websites for additional information
http://www.entrepreneur.com/Franchise_Zone/FZ_FrontDoor/0,4670,,00.html
http://www.franchise1.com/
http://www.entrepreneur.com/franzone/0,4670,,00.html
The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!