April 2019 – Franchising POC

Franchising A Comprehensive Source For New Establishments In Business World

Posted on April 27, 2019 by blogger

For ones to reach the heights in the business world we need franchising – a licensing arrangement in which a business owner, known as the “franchisor,” markets a trademarked product or service through affiliated dealers known as “franchisees.” While these franchisees own their establishments, terms of franchising agreements typically require them to share operational responsibilities with the franchisor.

Equivalent to success rates, the franchises also tend to have a higher rate of risks and can fail for any number of reasons like any other business. So therefore proper investigation is to be done before buying any franchise.

Types of Franchises:

Business Format Franchises: With this a company expands by supplying independent business owners with an established business, including its name and trademark.

Product Franchises: Here manufactures control how retail stores distribute their products. Through this kind of agreement, manufacturers allow retailers to market their products and to use their names and trademarks.

Manufacturing Franchises: Through this a franchisor grants a manufacturer the right to produce and sell goods using its name and trademark. This type of franchise is common among food and beverage companies.

Business Opportunity Ventures: Business opportunity ventures involve an independent business owner buying and distributing the products from one company.

Mid-sized franchises like restaurants, gasoline stations and trucking stations involve substantial investment and require all the attention of a business person.

Right franchise is totally based upon:

What are your interests?

Do you want to develop multiple units?

How easy it to resell your franchise and what are the restrictions or costs from the franchisor?

What days or hours you want to work?

Advantages of franchising:

Branding: The first thing Franchises offer franchisees is a strategic identity that is not only effective, it has cumulative market impact. A successful brand is one that is remembered, and Franchises have some of the most successful brand identities in the world.

Advertising: Advertising can be one of the biggest expenses for any new business and for good reason. You cant survive without effective advertising and effective advertising is expensive.

Name Recognition: People today want guarantees like never before and name/menu/brand recognition gives them that assurance.

Reputation: The reputation of the franchise is important enough, it is what breeds positive expectations that keep patrons loyal, but this benefit coupled with a built-in umbrella of legal protection is an incredible bonus and one you cannot get as an independent.

Disadvantages of franchising:

You are exposed to fraud. If you fail to investigate the background of the franchisor or youre taken in by promises of quick profits with low franchise costs, chances are, you will just find yourself holding an empty bag.

When you buy a franchise, you are not free to do your own thing. You dont have much control on the products that are to be sold, the system that should be in place and, even, the location and general look of your business establishment.

Costs may be higher than if you are going to start your own business from scratch. Other than the initial cost of acquiring the franchise, you may also pay an agreed percentage of your sales and marketing or advertising fees.

Major Qualities To Run A Franchise Business Successfully

Posted on April 21, 2019 by blogger

Starting a business on your own is like taking a big risk and on the other hand when you buy franchise it reduces the risk. In fact, successful franchise business offers entrepreneurs and investors with a strong business model with a proven track record.

But before exploring franchise opportunities you need to sure whether you have the necessary personality and skills to be a successful franchisee. There are thousands and thousands of franchise business companies offering tremendous business opportunities for entrepreneurs. However, each franchise business requires a plethora of different skill sets in a franchise owner.

To help you make the right decision, here are some key characteristics that can help in determining whether franchising is for you or not.

Making Business Connections

Quality interpersonal qualities are must amongst franchisees to ensure success in a franchise business. Even though franchisors help one to start a business successfully, it is important from the investors point of view to have some business skills such as pleasant behavior, good communication skill, and clear vision and so on. As a franchisee you will be required to manage your employees and work hard to retain them. Plus, the franchisee of any franchise business needs to work towards building good will with their customers to ensure their trust and loyalty in the long run. Thus, good inter personal qualities play an important for getting the maximum benefits out of franchise opportunities.

Eagerness to Follow a System

When you buy franchise business, you are accepting the fact that you cant run the business on your own policies. With a franchise business, the business strategies are already made and the procedures are tested. Here a franchisee just needs to follow that proven business system. This is the essence of franchising as here the investors dont have to waste time and money and trial and error methods. Just need to avoid business pitfalls as described by the franchisor to enjoy success sooner.

Willingness to Ask for Help

A franchisee needs to be willing to take help and support from the franchisor. During the initial time of starting a business franchisors offer all sorts of help and support to set up the business successfully. But even after that, if a franchisee is facing any problem, he or she must not hesitate in asking for help from the franchisors. At most of the franchise business companies, there are teams of people who will train you in every aspect of the business. As a franchisee you just need to convey your message to the franchisor and solutions will be provided.

Eagerness to Devote Time and Energy

Behind the success of any franchising concept there is just no substitute for hard work. As a franchisee it is must to devote time and energy to make the business popular. A successful franchisee is someone who is willing to do whatever it takes to get the job done. Their devotion towards business set examples for their employees to work hard to get the job done.

To conclude, if you are interested in investing in any popular franchise opportunities you must have all the above mentioned attributes to run a franchise business successful. However, just make sure that you understand the concept of franchise business before investing in one.

Choosing A Franchise With Franchising Legal Advice

Posted on April 17, 2019 by blogger

If you are thinking of taking on a franchising opportunity, then you need to be sure that the business you are looking at is right for you. You will need to get specialist legal advice from an expert solicitor before you get involved in any contracting. Read on to find out more information.

What kind of business is it?

Franchise solicitors will tell you that if you are going to invest in a particular brand, you need to be confident that it’s something you could handle. Look at the business you are thinking of investing in and do some research into the relevant market. Have you worked in the area before? Does it offer the kind of work you enjoy? Would it involve working with customers or business-to-business? Having answers to these questions will help you determine whether the opportunity is right for you.

Is the business doing well?

Not all businesses are right for franchising, which is why you should always seek franchising legal advice before accepting an opportunity. The business in question should have been established for a while and it should be successful; after all, it doesn’t make much sense to buy into a business that is undoubtedly failing. You need to be confident that the state of the current business is healthy and that it has potential as a franchise.

If the company already has some franchisees, you should talk to them before you consider getting involved. This can give you a better idea of what it might be like to work with the company and how much freedom you would have to run your own business under the pre-existing brand.

Where is the business based?

You should also look at issues such as where the business is based, as some opportunities are highly local and so might not be right for your area. If you’re thinking of opening a franchise some distance away from the parent company, you need to be certain that the market is suitable for it. This is where your research comes in; your franchise solicitors will be able to give you advice if you need it.

How much does it cost?

One of the most important things to think about it how much buying into the business is going to cost. There will be an up-front fee that you need to pay to the parent company and then you’ll also have to pay them royalties based on your profits. Your business will also have running costs and you’ll need to build in legal costs, too; you need to be certain you can afford it all before you agree to anything.

Is a Franchise Business Your Opportunity

Posted on April 11, 2019 by blogger

A lot of people desire to be their own boss. One way to do that is through a franchise. In this article we will discuss the pros and cons of investing in a franchise opportunity, to help you determine whether or not franchise opportunities are for you. After reading this article, you should walk away with a better understanding of how franchise opportunities apply to your situation.

If you’re going to be successful running a business, you must be good at being self-employed. Typically people that thrive on being their own boss are those who are willing to take the initiative, are not afraid of failure or risk, and are willing to put in the necessary amount of time to get their efforts off the ground and running. They do not get bogged down by details, and are able to see the big picture. Does this sound like you? If so, you’re the perfect candidate for being self-employed.

Now the choice is whether or not to create your own business from scratch, or to take your money and invest in a franchise opportunity. The main difference between a business and franchise opportunity is your rights and what you can do in the business. If you want create your own business, you have to create your own business model system, and brand awareness in the marketplace. But you also get to dictate who you buy supplies from, what hours you operate in, where you can locate at and how you can advertise.

Compare that to a franchise. While you don’t have as much flexibility or creative input, you do get a workable, proven business model, oftentimes you enjoy brand identity awareness in the marketplace, and you can spend more of your efforts in making sure things are running smoothly, and working on the day-to-day business affairs. Franchises present the best opportunities to generate passive income without your day-to-day presence at the business.

Are you ready to be an entrepreneur? It takes a lot of self-determination and want to really work for yourself. I’d say at least 75% of people in business today are not cut out to be entrepreneurs. If you have that burning desire to own a franchise or your own business, then a franchise could be what you have been looking for. Take time to sit down to assess and plan your skills, finances, and goals to see if you are ready to take the leap to self-employment. Always consult a financial planner and attorney before making any decision that will impact your financial future for a long time.

Tri Tax Franchise Founder Carlos Marquez says “One key to a good fit is that the person investing in the franchise needs to have similar objectives as the franchise company. “I’ve learned that personal goals drive business goals, so it’s very important for us that someone interested in joining Tri Tax has clear goals. We educate an individual on what a franchise is. This isn’t a get-rich-scheme, but a systematic way of running a business, and it takes a particular type of person to follow the system.”

So what it all comes down to is knowing what you want out of the business, and knowing what skills are required to run a business successfully. Also, it involves knowing how to analyze franchise opportunities to find the winner that suit your personality best. If you can do that, and follow the advice given above as it relates to franchises, maybe franchise opportunity is the perfect thing for you.

Background Of Franchising Business

Posted on April 7, 2019 by blogger

Franchising is known to be among the available options that businessmen and entrepreneurs can use as business opportunities without having to go through the usual motions of having to brainstorm and hypothesize on studies that most business tycoons would initially make. Franchising can be seen today in local food chain stores like McDonald’s, Burger King and Subway. They are practically seen in all countries of the world.

Mixed Origins of Franchising
Franchising does not really have a clear trace of its background. There has been various information as to where the franchising business originated. These include countries like China, England, and Europe and of course the United States. It is even traced as far as the Middle Ages where the business opportunity issues back then was more on the lack of transportation for the goods to be transferred from one place to another. Other considered franchising as well as a means of establishing stands, vendors and a better means of being able to offer goods towards customers in other places within the coverage area.

Franchising at a Glance
Franchising is not a new term for defining business opportunities. It extends as far as home business opportunities for people who would want to be their own boss and hold their own business hours. Franchises would usually depend on the location to which franchisees would want them to be located, ideally in populated and commercialized areas for maximum exposure. Depending on the product or service to which the franchise caters, people can even do business from their own footsteps at home. This way the expenses to be incurred such as rent or warehouse allocation expense can be avoided, an expense that is certainly something tough on the budget allocation constraints of franchise owners.

Think Big but Start Small
A franchising business does not have to start big. Just like any ordinary business, it can start from the simplest and smallest business. Like most business endeavors, as long as they are managed properly, business can grow at an instant at any time. Franchises are not different from conceptualized businesses and the varying factor would be the people who would run it and how they would view such a business at a glance.

Placement and Scope of Target Market
Placement of franchise establishments, just like any other product that most people would be interested in today would have to analyze and survey the market class to which they would want to serve. It is not merely a place and operate venture. It requires gathering strategies and putting minds into action, the usual backbone towards success in business ventures.

There will always be issues concerning the target market and identifying what product or service to serve. This has always been the issue that makes businesses different from others and unless it is properly defined, a franchise or business will falter eventually if franchising business owners are not careful.