Factors To Think About When Buying A Franchise

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For whatever type of industry that exists, there’s literally a franchise out there for that industry. Don’t believe me? If you do a search on Google about ‘strange franchises’, you’ll find some franchises named Texas Lice Squad, 1-800-Puke-Off, Doody Calls, Bully Busters, The Eraser Store, Offline Dating Franchises, Mr. Snowman and so on. Yes, these are REAL franchises.

Now that you know you can find a franchise in every industry imaginable, it’s important to then take a look at a 50,000 ft level and see what industries are right for you and poised for growth. This article will identify 4 factors to consider when buying a franchise.

1. Understand what you want – It’s absolutely essential that you know what your goals are. If your main objective is to spend more time with your family during nights and weekends, buying a franchise in the restaurant industry makes no sense whatsoever. Those are the peak times. If you want to be able to run your business from anywhere in the world (like Bora Bora for instance), don’t buy a franchise the requires you to be physically present in order for the business to run.

2. Be smart about your decision – It’s wise to find a franchise in an industry that you’re absolutely passionate about, which is what I would recommend. If you’re anything like me, you’re probably more productive when you’re happier with what you’re doing. Don’t you agree that there’s something magical with being happy in your work? The bottom line is it’s important to start off finding a few franchises that align with your goals and values in an industry that you enjoy.

3. Analyze the industry you’re considering – Now if the industry you’re considering is stagnant or mature, walk away and move onto another industry. You’re looking for an industry that’s in a position of growth and stability. Take a look at the fastest growing companies today like Facebook, Apple and Google. At the time of this writing, Facebook has just been valued at 65 Billion (with a B) and the company just turned seven years old. Google has been around a little over a decade yet we would all be lost if we didn’t have Google in our lives.

4. Analyze the top franchises in an industry – Identify the top 10 franchises in the industry you’re considering and find out if they are expanding or if they are stagnant. Go ahead and research their earnings to see if they’re profitable if they happen to be public companies. Make sure you can tell if their growth is sub-par or exponential. Don’t be scared if there’s a lot of competition. In fact, you should welcome competition because healthy competition leads to innovation.

How To Qualify For Franchise Financing In Canada A Franchising Finance Business Loan That Makes

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What do I need to do to get to the goal line? That’s a favorite client question when it comes to franchise financing in Canada. We’re talking about a franchising business loan to finance your new business (or one that exists already which you’re buying).

Information. Solid info that you want on the qualifications and process involved in getting approved for your franchise investment. Let’s dig in.

To say that franchise finance is a ‘ specialty’ area of Canadian business financing is an understatement. There is a fundamental misunderstanding of how this type of finance works, the processes around it, and the risks that you can avoid by doing things properly… with some expert advice along the way.

Is there a systematic way, or method that Canadian franchisees can use to get the financing they need? We think there is. Essentially it is really two very simpe concepts, planning, and knowing the process. Simple as that.

Many new Canadian franchisee ‘ wannabees’ view financing as an obstacle. We can forgive those clients sometimes because in the last few years any type of business financing has been a challenge, whether you’re General Motors or purchasing a new franchise in the restaurant industry!

Many franchisees (mistakenly so) think the franchisor you are working with is either going to provide you with the financing you need, or in some cases at least steer you in the right direction. They might do a bit of the latter, but let’s be honest here; the franchisors job is selling franchises, not financing them. Even various banks and other franchise lenders probably would like to see franchisors being more involved in the franchising finance business, but we simply don’t think that is going to happen.

Education. And guess what, we are not talking about educating you, we’re talking on your need to be able to educate your franchise lender about why you are the perfect franchise financing in Canada candidate.

And who are the franchise lenders in Canada. That’s probably the main thing you wanted to know, isn’t it? There are 4 key franchise lenders in Canada. They are the Canadian chartered banks under a special program called the BIL/CSBF program , one or two very specialized franchise finance lenders ( they only do very large transactions ) , and thirdly some independent finance firms that offer equpment financing tailored specifically for the franchise industry .

But didn’t we say there were 4 lenders? We did. And we’re pretty sure you know that 4th lender already. It’s yourself, because your own equity portion or down payment into your business is viewed of course as a debt or a loan.

So whats the clear process in qualifying for franchise financing in Canada. Is there a clear road map you can follow? We categorically think there is. And here it is.

Identify the total franchise funding you need. Determine what amount of owner equity you are prepared to put into the transaction. Anywhere from 10 – 40% is typically required. Determine which of the 3 other methods of financing will allow you to cobble together a total solution to finance your new business.

Next step – prepare a package that includes a business plan, cash flow, info on yourself and the franchisor, with a focus on success and repayment of your debt. Along the way don’t forget that you need reasonable personal credit history, and boy does some specific industry experience or general business knowledge help in confirming your future ability to be successful for a franchise finance business loan.

Focus on the best financing that matches your needs; we strongly recommend the BIL program which has great rates, terms, structures, and limited personal guarantees.

Going it alone? It’s possible. A better idea? Speak to a trusted, credible an experienced Canada business financing advisor on information and help on franchise financing in Canada. Next step = ‘ You’re approved ‘!

Why Choose a Food Franchise Business

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The major reason why food cart franchising a very good idea for everyone happens because a more successful company will probably be helping you by using it. Getting a food franchise will not bring you down. Here are some explanations why more people are opting for food franchising as their business. You can use the Internet or contact different companies to be able to learn more about it and the business you are getting into. Another reason why food cart franchising can be easier clients is because you will not be spending a lot of cash just to start earning profits.

If you have a food cart, youve an income generating machine. All youve got to do is always to look for someone who is willing to operate on the cart and make money from it. Operation – the amount of hours that you just operate can also be an important factor, but you should consider the different factors before you increase the number of hours you operate. The key to building a passive income with food cart franchise is to ensure that you will be checking everything prior to deciding to hire someone. The reason why food cart franchising has to be successful business model happens because there are thousands of people who are promoting the item.

You have to make sure the cart is going to be able to generate more cash if you were to raise the hours of operation to make sure that you will get more money from your cart. The primary reason why food cart franchising is a great business opportunity is really because you dont have to glance at the guesswork only to be successful from it. An excellent issue which will assist you happen to be expecting the opportunity success of the franchise is that this length of your time the franchisor are in successful operation. The more carts of the brand are visible; the greater brand recognition could be expected from people.

Customers trusts the brand, which franchise businesses already done that to suit your needs, no need for you personally to try this because it will take a long time to earn trust out of your customers. The best part about this method is that you just can have numerous carts as you want, as well as it wont require anything from you, you can simply focus in reading good food cart franchise and build additional money streams. However, there exists a method that you can use which will help you make more cash without spending a lot of cash, and also this is by looking for any food cart franchise. .But additionally you have to remember that there will likely be some companies that are going to take advantage of this excellent success.

Location – this is probably the most crucial thing that you should consider if you want to succeed in food cart franchise. Food is something which we cant live without, and it is one from the largest industries that you can find into in order to have a strong source of greenbacks. But what are the results if you are going to combine MLM and food cart franchising? Do you think it will be a great opportunity for you personally? .There are lots of food cart franchising companies that you simply can contact if you wish to start earning profits with ecommerce.

Important Aspects Of A Franchising Contract

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Franchising is a popular business model world wide and over 21 million jobs in the Us are generated by franchising which is a approximately USD 2.3 trillion industry.

In any venture or business the foundation to security and success is the contract or agreement. While a franchising business will run on organizational ability, commitment and passion the peace of mind will come from having a contract that protects you legally and takes care of your interests.

A franchising contract lays down the rules and is binding for both the franchisor and the franchisee (you). It is advisable to get efficient legal counsel during the buy/sell process of a franchise. An experienced lawyer will help ensure that the contract covers all important aspects of the venture.

The most important/ crucial things are:

1. The purchase agreement must define clearly the franchising package; the services; and the price.

2. The license part must cover: the rights of the franchise; the obligations of the franchisor; the responsibilities of the franchisee; the trade restrictions; the termination conditions and so on.

3. Ensure that the agreement permits you to use patents and trade marks, any secret methods/ formulae, recipes, copyrighted materials, identified suppliers and so on.

4. Understand the franchisee promises. There will be restrictions pertaining to operations, advertising, training, insurance, corporate image, look and feel and so on. Be clear that you will be able to toe the line. If you have any questions clarify them before signing the contract.

5. The contract must define clearly what the franchise package will include. It would cover aspects like equipment, inventory, training, accounting procedures, collaterals and so on.

6. Be clear about what the initial services umbrella covers. These may include site selection assistance, marketing services, setting up on signage, look and feel of interiors and so on.

7. Arrive at an agreement about termination policies. Define the terms clearly. Understand the laws and regulations that apply. Define the minimum advance notice period. The termination clauses should be fair for both you and the franchisor.

8. Make sure the contract includes a assignment/death clause. In event of death a representative or dependant should be allowed to keep the business going.

Before signing a contract it is important to read through a draft contract with an experience lawyer. Know what clauses are negotiable. Determine clearly what your responsibilities will be and find out about what kind of hand holding is on offer. Many franchisors offer help until the franchisee is well settled and understands the ropes. Be sure to examine aspects like business background, litigation history, bankruptcy and insolvency information, and financial statements. Familiarize your self with franchising laws and regulations that apply to your state.

Begin a franchising business smartly and on the right foot understand the pros and cons clearly.

Play School Franchising In India

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The concept of preschool franchising has become an appealing overture for the upcoming class of edupreneurs. Each day more and more people are getting inclined to the education sector as this sector offers immense scope for growth & development. Although at first, opening a preschool seemed a pretty tedious task but with the advent of preschool franchising, it has simplified a lot. Without the franchise model, good quality preschools would have been restricted to limited areas and limited schools. Moreover, the quality of preschool education in our country had been of very poor quality & standards for a long period of time. But with the appearance of so many different companies in the preschool franchise sector, the situation has improved a lot. The franchise model has contributed loads towards the growth and development of the education sector in India.

Usually the parents sent their kids to the nearby play school at their early stages of education. This unorganized sector comprising of neighborhood preschools captured almost 75 per cent of the market as per some estimates. But due to the growing number of preschool franchisees in our nation, the parents inclination towards a branded play school for their tiny tot is on the rise. They prefer to have their kids go to a school which provides them a whole new experience in life & increase their inclination towards education & other co-curricular activities. With the increasing number of people in the middle and the upper-middle class in the Indian society, the number of parents preferring a branded play school for their kids has achieved new heights.

Earlier people were hesitant of entering into the education sector due to the complications of running a school. Around 20 years back, there were hardly any people who were aware of the term franchising. A decade later when several companies were offering franchisees to people, their main concern was to choose whether to own a franchise or run a business on their own. But with the growing number of companies in the preschool sector in todays world, people are mainly confused choosing between various brands offering franchise. Their major worry is to select the right franchisee for starting their school. The idea of opening a school on ones own almost seems impossible in todays world with the numerous options of franchisee available.

Moreover, owning a play school franchise & entering the education sector seems to be the wisest business decision in todays world because the demand for playschools will remain strong. With practically no barriers, growing middle class population, increasing income of the people & the growing number of working women, the education sector is most beneficial to invest in. There is increase in the need for quality preschool educational institutions.

The sector is even more appealing to people because of the flexible work timings. Especially women are much more comfortable & relaxed working in an environment where they can easily manage work & home. Moreover, the people working in the education sector get a lot of regard in the society due to their valuable contribution to the society.

On the part of franchisor, it is definitely a great deal offering tremendous growth. There are not many regulations on entering into the preschool business and it always yields good results & profit. Not just that, it is a relatively safe business proposition due to the low capital investment requirement & the constant returns. Pre-schools are quite evident in society and the success in pre-school arena can clearly predict the success of many upcoming brands and entrepreneurs in this field. So, all these factors result in a constant stream of new franchisors wanting to cash in on this boom.

However, the sector is plagued with the greedy franchisors where the issues spill over into disputes. Major reasons of disputes include over commitments before signing ,not giving each pre-school adequate space, renewal charges on agreements, hidden charges, etc. So, at the time of royalties payment, all these issues surround the franchisor of the school and hamper their goodwill. At the end, all these disputes results in the exit by the players who are unable to reach a critical mass of happy franchisees!

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