Franchising
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Franchising : Starting A Franchise
Franchising is a business model that falls between working for yourself and working for somebody else (whether a small business or a large corporation). By starting a franchise you can often begin making money faster than you could do on your own and can see a greater long-term return on your investment.
Franchises come in all shapes and sizes and provide all kinds of business opportunities. You can find them thriving in standalone locations, shopping malls, strip centers, mobile vehicles, and even home offices. There are hundreds of franchisors to choose from, with new ones being established every day, and practically every service-oriented consumer niche is catered for.
For those who start a franchise, benefits include: a better chance of suceeding than in a sole proprietorship; use of an established business model; assistance with finding a suitable site to operate from; training and ongoing support; reduced operating costs through group purchasing; the selling power and trust associated with a known brand; national and regional advertising campaigns.
Once you have a general idea of what you think you'd like to do, you should start researching and seeking advice. Read franchise-related publications / websites and speak with any franchise owners in your town. Consider also contacting a professional franchise broker or consultant. They can recommend brands and concepts to you based on your interests, strengths and weaknesses.
Create a short-list of companies that you're interested in starting a franchise with and start visiting the various franchisors' websites. Most will have plenty of franchising information available online. Send an email request for more information or pick up the phone and call their main office.
Decide which of the two main forms of starting a franchise is best for you. In product / trade name franchising, a franchisor owns the right to a name or trademark and simply sells or licenses the right to use that name or trademark to you. In business format franchising, a more complex relationship is established in which the franchisor will provide you with an extensive range of services and support.
Find out everything you can about franchise fees, investment requirements, and ongoing royalty fee structures. Look for ranges you are comfortable with, both up front and ongoing. Get clear on what is offered to franchisees in terms of operations, training, marketing, and technical support. Don't be afraid to ask any question.