Franchising Issues That Your Franchise Solicitors Can Help With

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Taking the option of franchising can be a positive move, however it is a move that is not suited to every type of business.

This article looks at some of the things you should definitely think about when considering going into a deal as a franchisee; if you have questions or are confused, your franchising solicitors will be able to provide you with more information.

Costs and financing

As any franchise solicitor will tell you, one of the most important issues you need to consider with any business deal is how much it costs and how you are going to pay for it. When you are thinking of becoming a franchisee, you need to know where your financing is going to come from as it is more than likely you will have to buy in to the agreement. This could be more than 45,000 depending on the business, so it is definitely something to consider.

As well as the initial start-up costs, you also need to think about your long-term running costs as you need to know you will be able to make ends meet while you get everything up and running, just as you would with any other business.

The franchise itself

You should also think about the company you are planning to make an agreement with. What industry are they in? Do you have experience in that industry? Does the company have a good reputation? If the company already has franchisees, it can be a good idea to talk to them so you can get a better idea of what it might be like if you decide to go ahead with an agreement.

Length of the agreement

The length of the contract is another important issue to consider before going ahead with any agreement. Some contracts are relatively short (up to three years, for example), while others lock you in for a decade or more so you should think about what you want before signing anything. Your franchising solicitors will be able to talk you through your options.

Who has control?

What you actually get for your money is important, too, as some franchises offer their subsidiaries more control than others. You need to know who would have financial responsibility for things such as uniforms and training, as well as how much creative discretion you’d be allowed, as some companies are stricter about following precise business plans than others.

Intellectual property

Intellectual property advice is another issue it’s worth thinking about as trademarks, training manuals, promotional material and more all fall under this banner and so licenses need to be sorted out for the franchisee. In fact as franchising has sometimes been described as “renting a brand”, issues about branding are critical – so you will need to make sure that you get expert intellectual property advice as part of your legal package from your solicitor. This is something your franchise solicitor will be able to guide you through to make sure you understand what’s happening.

Deciding On How To Finance A Franchise Canadian Franchising Business Loan Info On Financing And L

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Not only do you want to have a solid plan when you want to finance a franchise in Canada – it sure helps when that plan makes sense for the business financing loan / loans that you need!

We think that most Canadian entrepreneurs who are either first time franchisees or perhaps are adding another location to their business would agree that its not as important as to where the franchise lending and business funding comes from, but that you get the full funding at terms that make sense for you personally .

Let’s examine some of those key decision points and requirements that you need to fulfill a proper franchise financing solution in Canada.

We think that a lot of franchisees are sometimes overly focused on ‘ the interest rate ‘ when they are seeking a franchise loan. That’s human nature we guess, but the reality is that the loan is simply commensurate with your overall credit quality and in line with the types of financing that are out their in the Canadian business financing market – unfortunately that market for new franchisees is somewhat more limited that in the U.S.

In Canada franchises are financed really in only 3 or 4 different manners — actually 5 we could say if you considered financing the whole franchise yourself through personal savings.

While that might seem a good idea we think in many cases it is not for a variety of reasons – i.e. collapsing personal investments and savings and assets when you don’t have to cant be an overall great strategy. We spoke awhile back to a franchisee who had pledged and used all his personal assets to acquire a franchise – business was slow, and he was unable to secure additional outside financing to re- boot the business because all his personal assets were pledged/gone. Bottom line, not recommended!

So the question then becomes as to how you decide to finance a franchise once you have made that acquisition decision. We’d like to share a couple key points. First of all, whether it’s a franchise or any business whatsoever, it’s financed by two guys, debt, and equity; i.e. what you borrow and what you put in yourself. Spend some time determining the optimal mix and you will best be able to gravitate to the right financing strategy.

In Canada these days we see franchisees putting in anywhere from 10 -50% as their personal investment into the business. Whats the perfect number? The reality is there isn’t one, because each business requires a different amount of financing and has a different mix of assets and financing needs. The key assets and financing needs in franchising are all your initial soft costs, such as the franchise fee, and then comes your costs to open the door, often called the ‘ turnkey ‘. That turnkey component consists of equipment, leaseholds and opening working capital.

We spoke of 4 methods of franchise financing in Canada .Those are as follows : Specialized commercial finance firms that have dedicated franchise finance divisions , Equipment financing, Working Capital term loans as a supplement to your overall financing, and finally the BIL/CSBF loan . The latter is the government SBL loan that is used by hundreds, probably thousands of franchisees to acquire their franchise. It only has one or two limitations, one of which is that it caps out at 350k, but that certainly covers a lot of franchises in Canada in different industry segments – examples restaurants, service businesses, etc.

So, today’s bottom line? Simply that spending some quality time early on in the process in understand which of the 4 options makes sense for you is a valuable investment. That time, coupled with your business plan and financial projections will help you ensure that you have the right mix of financing solution, as well as a properly chosen business loan strategy for your franchise.

Speak to a trusted, credible and experienced Canadian business financing advisor on how to best decide which financing mechanism works for you.

Franchise Business Opportunities And Food In India

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Expanding of business at the same time involving interested entrepreneurs in the same has of late gained big momentum. Opening of chain outlets or stores no doubt add to the extensive market presence and an enhanced brand identity. But that involves a good amount of investment besides liability and other factors associated. This is where a franchise business comes into play. Franchising, the practice of using another firm’s successful business model, had been at a nascent stage for quite some time. Today, it is not only in India but also across the world that franchise business is gaining impetus. Offering franchise business opportunities, concerned companies not only see their business expand even beyond geographical boundaries but also get returns. No investment, no maintenance, no liabilities! The franchisor’s success is the success of the franchisees.

Explore the various segments where franchise business opportunities are offered, consider your interests and accordingly choose the right company. If you choose a reputed name, you can look forward towards making some big money in no time. Building a brand rapport takes time and when you get a brand the rapport of which is already built you do experience a win-win situation. You can opt going for a food franchise. Of course, you will have to invest for the set-up, food processing equipments, follow space and food menu conditions followed by the parent group, pay royalty, pay part of income generated and more. Compared to other segments, you need not invest big in a food franchise. You will have to consider the location. The better the location, the more lucrative will be your food franchise chosen.

When we speak of food in India, we cannot think of a counted few items. There are countless food items specific to each region; most of you must have not yet explored the regional food in the towns and villages of each state. Start exploring, especially if you are a travel freak and love exploring cultures. You will be surprised at the countless delicacies with each dish tasting different. Well, food in India commonly offered in the restaurants is same in the menu no matter which part of the country you visit. It can be South Indian food or North Indian food. And again food in India is not only limited to meals; there are sweets, snacks, chaat, namkeen, vegetable snacks, and more.

Those who have tasted South Indian food never let the taste disappear from their palate. Whether it is breakfast or lunch or dinner or supper, they would love to have any of the South Indian food items to appease their appetite. Right from plain dosa, masala dosa, onion rawa masala, rawa plain dosa, rawa masala dosa to plain uttapam, vada sambhar, mixed uttapam, sambhar idli, etc. you have a myriad range of options in the menu to choose from! It is not only in South India but across the country that you will find South Indian food in the restaurants.

Kfc Franchise – What You Need To Know

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A KFC franchise is just part of the umbrella of the Yum Brands empire. Yum Brands is the largest restaurant franchise system in the world. KFC franchises are located in over 80 countries worldwide and have sister franchises like Pizza Hut, Taco Bell, Long John Silvers and A&W.

There are quite a few advantages of being part of the Yum Brands family however, owning a KFC franchise may not be right for you.

First and foremost, any potential franchisee must be prepared to own more than one franchise. Therefore, if you want to open a KFC, you’re also most likely going to need to open another franchise in the same location. That’s why you see so many groups of fast food stores in the same location. A good idea would be to consider owning multiple franchises on multiple sites.

Yum Brands has quite a reputation for having ambitious business owners as their franchise owners. To be considered on their “good list”, you’re going to have to own at least three KFC franchises. In fact, ambitious franchise owners will get help from Yum Brands on building up their franchises.

The upfront cost to get into a KFC franchise is why so many people do not qualify for this particular franchise. Go ahead and plan on spending 1,000,000 to 2,000,000 to start up your KFC franchise and partner brand franchise. Furthermore, your net worth has to be above 1 million and you have to have liquid assets of at least $360,000. On top of that, you must have experience in the food service industry or least your partner must have that experience.

Plan on spending at least a year going through the whole process from start to finish. If you qualify based on their requirements, you will meet with the Yum Brands leadership to see if the relationship would be a good one for both parties involved. Then there would be the work finding a site and all that other fun stuff.

Bottom line is owning a KFC franchise can be very profitable and a very solid investment even if you can qualify for the high demands of buying a KFC franchise.

Find A Franchising Business For Sale Now And Become Your Own Boss

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Starting your own business can be nerve wracking, there are a million and one things that you will need to take care of, from the quality of your product or service through to your branding and marketing, from your front of house to your supplies and logistics. Generally speaking when you start your own business you need to take care of all these different areas yourself and there will be an area, or areas, where you struggle. There is a better way: franchising. With franchising you get all the benefits of running your own business with far less risk, many of the secondary tasks and areas are taken care for you when you run a franchise, from marketing to supply, leaving you to focus on your primary business tasks. You can find great franchise businesses for sale right now.

You will find that there are some incredible franchises available right now. You can find one that suits your talents and passions. Running a business under a franchise means that you get all the advantages of being part of a big business, such as the name recognition, the power of bulk buying and the massive advertising budget all while still being your own boss.

When you start a franchise you get a proven business model, you get to open your own business yet you have the support and guidance of a successful team that will help you at every step of the way, which means that you are far more likely to succeed.

Starting a franchise also means that a you will have a shorter time to opening, you will be give both initial training and ongoing support and you will benefit from having a network of peers (fellow franchisees) who can provide advice and moral support through annual conferences, and franchisee associations; and, increasingly, assistance with securing funding.

If you want to find some great business franchises in Australia then you need to work out what kind of work you want to do. Many people who want to start their own franchise are keen to become more free in their work lives, meaning that a good franchise is one where they are mobile and can pick and choose which clients or customers to pick up.

Take a pool cleaning franchise, you can work in the area near your home and can choose how much you work. You can find some great pool business for sale right now.

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