Franchising

So, you are thinking of starting up your own rent-to-own franchise. What sort of people are the major franchisers looking for? And which of the franchisers is right for you? Generally speaking the franchisers want leaders with a true entrepreneurial spirit.

As David Ingram, who is the CEO of one of the smaller franchisers states, Easyhome franchise information is looking for captains of football teams, not simply football players. Perhaps this is because Easyhome has almost 200 company-owned stores, but up til now just one store operated by franchise. Ingram wants franchise owners who will build large Easyhome franchise territories, rather than just operating at one location at a time. But Ingram is also looking for people who are new to franchising and have a pioneering spirit.

He wants franchise owners who are as aggressive as he is. He points out that Easyhome is a young and still-small company in its field, which gives him an urgency and need for speed to grow as quickly as possible. The advantage of signing up with Easyhome is precisely the adaptability and willingness to make changes which comes with a new and fresh outlook. But Easyhome is not an amateur enterprise by any means - franchise owners can draw upon the marketing creativity and expertise of an experienced rent-to-own management team which historically has brought in double-digit revenue growth.

Choosing an older, more established firm also has its advantages. According to Colortyme franchise information, one advantage of working with a huge, established franchiser is the low initial investment which the franchise owner has to put up. In the case of Colortyme, this can be as low as $140,000 (half of what other rent-to-own franchisers require), and yet Colortyme, which specializes in home furnishings and appliances, is an industry leader in marketing support and total financing for its owners.

According to Colortyme's Jim Deering, Colortyme is unique in providing inventory financing, flexible and substantial programs for buying merchandise, and terrific marketing and graphics support. Colortyme's experience in the field (it has no company-owned stores but over 200 franchises) enables franchise owners to open their store in from 3 to 6 months after they sign the franchise agreement. Colortyme has training programs for all positions, and it provides marketing materials that are the best in the business. Colortyme presently operates in 34 states, and has an aggressive plan to expand nationally, which offers unique opportunities for development throughout the country.

Another example of a smaller franchise operation, which specializes in both rent-to-own as well as retail performance tires and custom wheels, is Rent n Go. According to Rent n Go Franchise information, the company is just starting up, with three franchise-owned stores, but with plans to expand throughout the U.S. Rent n Go is actively seeking candidates for its franchises who have already successfully proved themselves in rent-to-own management positions and who have a good understanding of the dynamics of rent-to-own.

Like Easyhome, Rent n Go wants aggressive franchise owners who have a true entrepreneurial spirit, who know how to work within a franchise environment, and who have enough start-up capital to launch a successful Rent n Go franchise. Because they are new in the field, Rent n Go strives to be the very, very best at everything it does, and is deeply committed to the idea of continuous improvement. Their franchise owners will be overwhelmed with support and service from the company's personnel and suppliers.

If you have been thinking about starting your own business, you've probably considered the possibility of opening a franchise. Becoming the owner of a franchise is not for everyone, but for the right person with drive, determination and the ability to follow a proven business model, a franchise business is the perfect opportunity for success.

Finding a franchise business that is right for you, however, can be a frustrating task. If you have ever researched viable franchise opportunities in your area, you know that there are many. Narrowing down the businesses that fit your personality can be a long and arduous task. The most important thing to remember when searching for a franchise business that is right for you is that you will be spending a tremendous amount of time and energy working on getting the business running. It is critical that you have a natural interest in whatever goods or services the franchises sells.

An advantage to starting a franchise, though, is the franchisor provides a great deal of startup training and materials for promotion and marketing. If you were starting your own individual business, you would have to come up with these business models and startup costs yourself. Following a proven business plan and marketing strategy will allow your new franchise business to thrive much sooner than if you were creating a new company completely on your own.

Hiring a franchise consultant can significantly contribute to your goals by helping you focus your effort on finding a franchise business that is right for you. Franchise consultants that will spend long hours researching companies on behalf of their clients, and will make an effort to steer them toward the franchise business that appears to be the best fit. Certain franchise companies seem to always thrive, and the franchise consultant will let you know if you could be successful with a popular chain in your market region.

There are facts, figures and statistics that a franchise consultant will study in order to determine whether the franchise business can be successfully run in a certain area. It is important for you to work with the consultant to explore all potential business options to find the right fit for your personality and your financial goals. Starting a franchise business requires a serious investment of money and time, and a utilizing the services of a professional franchise consultant will help ensure that you don't waste that investment.

The information a potential franchise owner can gain by using a franchise consultant is invaluable. It will give them negotiating power and a strong foothold on the market when the business finally opens its doors. Franchise consultants can be your most valuable asset when searching for the right business opportunity.

With all of the options available it is hard to discern which the best franchise opportunities out there are.

Franchise opportunities are available in many fields within the spectrum of business. Franchise opportunities are no longer limited to fast food chains. These days cleaning companies, coffee houses, beauty/tanning salons, and even fitness centers offer franchising opportunities. The options in business franchising are endless.

Investment available for a franchise is just as important as the concept itself. Start up costs for a business franchise range from £1,500 to upwards of £500,000. While some franchises provide in-house financing others do not. When researching a franchise business, this factor should be taken into consideration. Also, it is important to note that necessary equipment is not always included in total purchase costs. Discussing this possibility will give you a better idea of the total financial obligation required for start up.

What are some of the benefits that come with franchising a business? Some of the most important factors to consider when franchising include:

o Brand recognition
o System and marketing support is often provided
o Franchising concept provides training to franchisees
o Vendor and supply partner relationships are pre-established
o Business strategy has already been proven effective

However, there are some downfalls that are associated with franchising as well. Negative aspects of franchising a business include:

o High start up costs ( can be upwards of £500,000 depending on the concept)
o Ongoing royalty payments
o Adherence to company policies and procedures

Having discussed start up costs, as well as pros and cons we can move on. In addition to these factors, it is important to research top performing franchise opportunities. Franchising can be a significant investment into your financial future and should be related to as such. By investing into a top performing franchise the more soundly you will sleep at night. Some of the best franchise opportunities out there include:

o Haagen Dazs
o The Body Shop
o Curves International
o Sign-A-Rama
o Burger King
o Pizza Hut
o Bang and Olufsen
o The Carphone Warehouse
o Kumon Institute of Education
o 7-Eleven
o Jani-King
o Century 21 Real Estate

Top performing franchises are a great investment into your future. When looking to franchise a business take the time to research your options. Making an informed decision when franchising will increase your chances of success.

The franchise agreement is a lengthy legal document - oftentimes containing more than a hundred pages - that even an experienced franchise lawyer may find challenging to explain to a prospective franchisee. If you know which franchise questions to ask, and whom to ask, then the chances of buying a franchise that's right for you go up immeasurably. The questions to ask a franchise operator are just as important as those you will ask of the parent corporation. Here are 20 franchise questions well worth asking - 12 for the franchisor and 8 for other franchisees.

Franchise Questions To Ask The Franchisor:

1. How much will it realistically cost me to open for business?

Franchise agreements clearly state the total franchise fee you must pay, plus whatever ongoing royalty payment is due. However, total costs - including a retail location or wholesale warehouse, vehicles, equipment, inventory, and countless other expenses - are usually expressed in a range of values, for example from $350,000 to $730,000. That's a range as steep as the Rockies! Based upon real estate values in your area and other variables, a franchisor should be willing to narrow that estimate considerably.

2. How many other franchises are in your system?

A low number is not necessarily bad, nor is a high number an automatic winner. In general, you will want to invest in a company that has had its franchising system well tested, and having only a handful of locations does not accomplish that. However, getting in on the ground floor, while a high-risk proposition, can also be incredibly lucrative. Some early round franchisors may be willing to cut you a deal or even grant you master franchising rights to an entire state or national region.

3. Where are your franchises located?

A nationwide franchise has the advantage of huge buying power for inventory and supplies, although a regional franchise may offer a better selection of products or services based upon local demand. Something that sells well on either coast may not necessarily find a strong following in the Midwest, and vice versa.

4. How many franchises have closed, and why?

A franchisor is required by law to divulge the franchises that have left the system, but an honorable corporation will also be willing to explain exactly why this or that operation bit the dust.

5. Have there been any lawsuits between the franchisor and franchisees?

Understanding how the parent company handles disputes with franchisees should give you a pretty good idea how you might fare with them as well.

6. What experience does your management team have?

It is good to understand the background of upper management and their experience within the industry, keeping a special eye on how long they have been with the company. If there has been significant turnover among the corporate players, this could mean their basic franchising model is weak.

7. Who is your competition, and why should I choose you over them?

Naturally you will have done this homework already, but getting the franchisor's take on other companies in the industry can be very enlightening.

8. What will be my operational territory, and how am I protected within it?

In order to show a profit, you must avoid undue competition from other franchisees in your system. A too small territory may not generate the kind of cash you will need to succeed.
9. How does your corporate team help me select my business site?

If you are opening a retail franchise, your location will be your best friend or your worst enemy. Ideally, real estate experts from the home office will tour your area with you, spending as much time as necessary to pick a spot with optimal visibility and high levels of traffic.

10. How much input do I have regarding ad placement and expenditures?

Most franchisors earmark part of their royalty revenue - money you pay to the parent company each month - to national, regional and sometimes even local advertising campaigns. Companies that listen to their franchisees on this topic generally enjoy greater sales success.

11. What items must I purchase directly from the franchisor?

In order to ensure quality standards from one franchisee to another, nearly every corporation has a list of inventory and supplies that you are required to obtain from them.

12. What happens to me if the parent corporation is sold?

Every business ownership group devises an exit strategy before they start the business. Knowing in advance what their plans are, franchisees can be better prepared for the changes that are likely to occur once a transition is made.

Franchise Questions To Ask Other Franchisees:

13. How long did it take for you to show a profit?

Even though every franchise is different based upon location, clientele, and the individual skills of the owner, this sort of information will give you a timetable against which your own expectations can be measured.

14. How close were your opening costs to the total originally projected?

This is a test of the amount of money you should expect to spend, no matter what the home office may have declared in its marketing materials.

15. Are you satisfied with the support you have received from the franchisor?

You will want to dig into this subject and note in particular any concerns that are ongoing.

16. Did you find your initial (and ongoing) training sufficiently helpful?

By recognizing any training shortfalls experienced by existing franchisees, you will be better prepared to fill in those gaps during your own period of instruction.

17. Have you or your fellow franchisees had any disputes with the parent company?

You will have asked this question of the franchisor (see #5 above), but it always pays to get the other side of the story.

18. What do you see as the company's greatest competitive advantage and disadvantage?

More than likely, this avenue of exploration will lead to a very valuable discussion of the competition and how one rises above it.

19. What would you change regarding the corporation's marketing plan?

Some promotional ideas floated at the corporate level are simply brilliant, while others fall flat at the retail level.

20. If you had to do it all over again, would you still buy this franchise?

It goes without saying that the answer to this question will speak for itself.

How to Market a Franchise:

The perpetual question on every franchisor's mind today is how do I keep generating good quality leads for franchise sales in this economy? When the going gets tough, the franchisor needs to get creative. The great thing about franchise marketing is that it is very targeted and specific. When was the last time you saw a Super Bowl Ad marketing for new franchisees? It's just not that likely. The reason is simple, the consumer advertising we see every day is expensive because of the reach and coverage. It is worthwhile for a company to advertise for car insurance when almost anyone who sees the TV commercial could be a potential client. That is not the case when advertising for a franchisee, the franchisee is a clearly defined candidate. The demographics have hopefully been defined ahead of time, the areas of interest are predetermined, the capital requirements and all other attributes are clearly defined. Thus, the advertising is much more focused and generally speaking less expensive.

The different avenues that franchisors use for franchise marketing run the gambit. The Internet of course is the most widely used medium, about 74% of all franchise leads today come from the web. Print Media can be effective based on the readership and specificity of a publication. Direct Mailings can work in some instances as well as Email Marketing Campaigns. Tradeshows are the most showy and grand of the marketing mediums for franchise lead generation and can also be a wonderful way to market a franchise. When it comes down to it there are a lot of avenues...but how does a franchisor know where to spend their ad budget? How do they determine where they will get the most "bang for their buck"? There are several keys that my firm has lived by when it comes to franchise marketing, if these key issues are clearly and completely defined and addressed, the franchise marketing process can be a lot of fun and generate great leads. If these key points are ignored or only briefly addressed, the franchise marketing process can drive a franchisor mad!

1. Define your Buyer. Have you ever heard the phrase, "Ready, Fire, Aim!" It sounds funny, that's because it doesn't make sense! The first goal of the franchise marketing effort should be to clearly define the buyer. I don't mean "salesperson with a desire to succeed".....I mean, "Female, ages 28-37, Midwest and Southeastern US, Household income between $75k-100k, work experience with kitchen products, married, preferably with children." We want specifics, down to every last detail. Once we completely figure out who this franchisee is, then we can more effectively plan our marketing.

2. Establish franchise sales goals. Clearly identify the marketing approach. Start first with how many franchises you plan on selling into the system within the next 6 months and year. Don't plan much further than that, because beyond that point you will most likely have to redo this plan based on then current circumstances. Once we have the goals set, we then can back out of that equation. Typically we are looking at around 1000 qualified leads for every 50-100 meetings with prospective franchisees. From those meetings the closing percentage is typically around 5%. So if we determine that we would like 5 franchises to open during the first 12 months of rolling out the franchise, we need to plan on generating 1000 leads during those first 12 months. The beauty of franchise marketing is that it is very measurable and much easier to track then consumer marketing...we can actually tell how effective it is!

3. Determine the advertising mediums. Different buyers can be reached via different advertising avenues. In some franchises all of the marketing can be done over the Internet, in others the marketing has to be done through direct mailers to specified candidates....like doctors in the case of a rapid care facility. Outline the pros and cons of each medium and establish the most effective based on the cost. This is where the importance of the defined franchise buyer comes through.

4. Establish the Budget. The average cost per lead on the Internet is around $30, the average cost from a tradeshow can be as much as $200 when factoring in travel, time, booth set up and other costs. So take into account some kind of an average cost based on the advertising venues you have determined will be most effective at reaching the target audience. For those thousand leads you may need $10,000 in advertising dollars for that first year to hit the 5 franchises sold.

5. Create the Collateral materials. A Franchise is a big investment for most franchisees, in fact for many of the buyers it is literally everything they have. The franchise offering should look extremely professional and really has to be buttoned up. This means that the brochure should be top quality, there should be a sales video to present to the buyer what the business entails and helps create excitement in the franchise. Pamphlets and handouts should be put together. All of this built around creating value in the business offering, not the product or service that the business offers. The overall theme should be "Mr. or Mrs. Franchisee, you can make a great living doing this, and have fun while you're at it." Franchise buyers fall in love with franchise concepts because they envision themselves running a business doing what the franchisor does. The collateral materials should be the vehicle that sparks that interest in the franchisee's mind.

6. Put together a comprehensive application form. There should be two forms in the end...one that the franchisee fills out initially to give the franchisor initial information from which the franchisor can make a decision if they want to follow up with the prospect any further. This should be basic information that the franchisor should know up front as soon as possible in the sales process, like how much capital do you have to invest! The second form will go into much more detail and would be sent with the brochure and information packet. This form should go into work history and personal background, so that the franchisor can really get to know who this prospect is and what they are all about.

7. Execution. Franchise marketing is like all advertising and marketing, it isn't a science, although it is much closer to one than consumer marketing, it still varies a great deal in its effectiveness and results. Some times, just when things are getting to the point where a franchisor is thinking they should throw in the towel and call it quits is when they really should do some MORE advertising! It takes consistency. The franchise buyers can be fickle, lots of time it has nothing to do with the franchise offering or the marketing, but rather with the franchisees life and circumstances. They do come back and look again, we want to be there when that prospect makes the buying decision.

8. Excellent Follow Up. Great franchisors have wonderful salesmanship in the sales process. Leads should be followed up with immediately upon contact. Phone calls are important and there should be high frequency between calls until a contact is made. The franchise sales process isn't rocket science, it just takes hard work and good planning.

What does a franchise consultant do? In general terms they can take your franchise concept from idea stage to full blown market penetration. They advise you on creating your operations manual, brochures, franchise agreements and help you to market your franchises.

They can advise you on the best methods for raising capital not only for successfully launching your franchise but also for the franchisees to be able to afford to buy your franchise in the first place! Many new franchises fail at the first hurdle purely because they are underfunded at the initial stage.

They will also assist you in your business plans and setting goals. It is imperative that right from the start you have set targets to meet. These will probably need to be reviewed every quarter as real life figures take over from numbers in a spread sheet.

The secret of success in the franchise industry is to find the right franchisees. You can have the best business model but if you fail to make the right selection when recruiting then it is asking for trouble. Marketing using the right channels right at the start will make a great difference to the success of your venture.

The biggest gripe that many franchisors have with regards to franchise consultants is the exorbitant fees that they charge! Undoubtedly some consultants offer excellent service but not many young businesses starting out on the franchise route for the first time can afford their charges!

Some work on a fee only basis whilst others take a percentage of every franchise you sell! The first route is definitely the wiser option if you are sure that you franchise business will succeed and your cash flow allows for a large payment upfront. The second route is wiser if you are not sure about your concept and want somebody else to share the risk.

It makes sense to speak to as many franchise consultants as you can before you embark down this road. Even if you do not end up using their services, just by going through the process of getting a quotation you will learn so much about the franchise industry and the processes involved in successfully launching your franchise.

Creating, defining, marketing and launching a franchise is much more complicated than most people realise. It is not just about being able to sell your franchise but also involves putting support systems in place to help your franchise network. They will require ongoing training as new products are released. The poorer functioning franchisees will need the most help to make their business a success.

As the franchise network grows, more of the management's time is taken supporting existing franchisees! This can hinder the marketing and growth of your franchise network. The ideal solution is to outsource your training and ongoing support.

If you get a professional franchise consultant whose sole aim is not to milk you for all your cash then it is possible to achieve much faster growth than going it alone. Speak to other franchisors to get recommendations. Some consultants are very good and can really help your franchise network grow quickly.

It appears that any person thinking about starting their own carpet cleaning business today will probably at one point or another consider a franchise. All things considered it just seems to make sense to benefit from the experience of other people. The franchise is additionally appealing since most of the time the new business owner will have immediate name recognition and business assistance.

The field of carpet cleaning has numerous franchise businesses to take into account. The problem is that when researching a certain franchise for a buddy, I really could not find any genuine review which could not be attributed to somebody marketing a specific franchise. So I guess it's time to provide an independent view of carpet cleaning franchise enterprises in general. Whatever the name of the franchise is, all of them have some things in common which a person must evaluate prior to accepting any contractual agreement.

First: why do potential business owners think about a franchise? In most cases an honest individual will claim its the name recognition or sensation of safety of being linked to a sizable business franchise. However in actuality, quite a few feel they'll never be able to compete against the big franchise businesses so they may as well join them. We will consider the real truth of this later, but what does joining a carpet cleaning franchise truly include?

Any kind of franchise business is founded on the experience and business plan of the former of the franchise. This might seem great but logically think about what that will mean just about the service itself of carpet cleaning. For instance: if a franchise has created a company using high priced truck mount carpet cleaning machines you know what your own kind of cleaning will include? Of course you'll need to possess the same apparatus whether its marketed directly from them or using their resources. The point that somebody not used to the field will not appreciate is the fact that cleaning technology has advanced by a lot during the past five years alone. Some of those truck mount operations can cost anywhere from $75,000 to $135,000 and even more and a lot of honest and knowledgeable operators will confess they do not provide the most effective service. If you notice in advertising and marketing, more and more commercials talk about making use of multiple methods of cleaning. That is because a lot of us in the field have stopped using the truck mounts years ago and started making use of newer and much less costly equipment. I've heard of guys through the country that have their truck mounts in the garage where they now concentrate on low moisture cleaning. Now the problem is the franchise nevertheless calls for exactly the same products they've used for the last twenty years.

This applies to any products used by a franchise. A few call themselves dry cleaning, low moisture, chemical cleaning, natural cleaning and on and on. The point is the fact that buyer of a franchise is going to be tied to any cleaning method, cleaning materials and machines employed by that franchise. Although you may come across something which supplies far better results, you'll be hesitant to change. Naturally, generally you need to obtain your materials and equipment through the franchise and in some cases if not, you are still stuck with their equipment.

The franchise operations usually demand a specific regular payment dependent on a percentage of your business also. They claim that insures your legal rights and marketing costs on a national level. This could be legitimate but just how will you feel writing a check out to your franchise at the end of every month when you did all the actual physical work? After decades in the business I have come across a lot of men who dropped out of their franchise agreements to go it alone. The issue with that is they are still stuck with unneeded machines and supplies in most cases.

As stated earlier, many are searching for name recognition and security when joining a franchise. Coming from my experience and that of many of my contacts, a good business plan will serve you far better. Keep in mind those men with franchises have got to keep making use of outdated cleaning techniques and this also permits new operators to cash in on technology. These days people desire safe cleaning products, good results, fast service and fast drying of their carpets. Those of us skilled in the field recognize you can't fill that bill by following the "corporate line" of any particular franchise. Thus for best results, find a good business plan from somebody experienced in the industry who'll share the secrets of this business. Don't throw your money away on franchise operations.

A contract is binding. When one signs on a contract, it cannot be broken. The terms and agreements apply.

A franchise agreement is a binding contract. It defines the obligations and rights between the franchisee and the franchisor. A franchise lawyer comes in between. He reviews the contract as well as the agreement both parties signed on.

Franchise lawyers are credible to handle unique franchise agreements. For example, duplication of the concept of a business can provide consistent services. The consistency allows franchisors to establish a brand identified to them. They can also have franchised locations that are associated through networking lead to the total reinforcing of the brand to their image.

The franchisor must be protective of its brand. It also has the power to dictate issues that is indicated in a franchise agreement. Franchise attorneys must know the legality of the conditions as presented by both parties - the franchisor and the franchisee.

The franchise lawyer's task is to provide the consistency between the franchisor and franchisee in order to protect the brand. He also dictates the issues that are covered in the contract both parties signed.

If the franchise lawyer does not have the experience to comprehend these franchise matters, there is a tendency for the stipulations to be misinterpreted and his decisions are biased and favor the franchisor.

Therefore, you, the businessman, must have a financial lawyer you trust beside you when making investment decisions. A franchise lawyer specializes on those matters and would gladly review the franchise agreement before you sign.

A credible and well-reputed franchise lawyer separates the contract terms as well as the acceptable obligations set amidst the common practices in a relationship between the franchisor and the franchisee. He weighs out what is unusual or extreme.

Franchise lawyers can help businessmen negotiate with the franchisor. At least by having them on your side, you would get an explanation on the changes the franchisor would like to make and those that have the possibility to be rejected. He may also help you evaluate the opportunity after buying the franchise, as well as coming up with your future business plan.

However, hiring a well-reputed franchise lawyer is not an easy task. Ask anyone who often invests in franchise, inquire for of they know someone they can refer. Try to also ask your own attorneys or accountants whether they know a lawyer who specializes in franchising.

Also, franchise lawyers must be fully informed of all the regulations upon purchasing the franchise. FTC Franchise Regulations require the disclosure of all information such as advertising, licensing, contracting, sales and other promotions of the franchise.

Disclosures that often create an argument between franchisor and the franchisee are:

- the name of the franchisor

- any fictitious name of the franchisor

- franchisor's trademark

- the last five years business experience of the officers and directors

- whether the franchisor, officer, or director have been involved in any actions of fraud during the last seven years

- terms of the franchise agreement including details on how to modify, terminate or sell it

As a businessman, you can expand your own business instead of selling what you already sold to others. Be the franchisee and not the franchisor. If your company owns and runs a successful franchise, expect lotsa cash rolling in.

Thanks to a franchise lawyer, each move you make regarding the expansion of your business will be legal and guaranteed.

There are over 1500 different franchise companies in the United States. When searching for a franchise, you can find them in almost any industry, from computers to cars, from baby clothes to ice cream cones. I am sure you have heard of the big ones, McDonald's, Subway etc...

There are an estimated 1,500 different franchisers (franchise business companies) operating in the U.S. There are believed to be more than 750,000 franchise businesses in the U.S. The franchising industry and businesses employs over 18 million people in the U.S. In 2004, it is estimated that franchise businesses were responsible for over 1.5 trillion in economic output. The franchise industry accounts for 40% of all retail sales in the US. A new franchise business opens every 8 minutes of every business day Approximately one out of every 12 businesses in the U.S. is a franchise business. Franchise fact: More than 75 different industries use franchising as a means to distribute goods and services. The average royalty fees paid by franchisees range from 3% to 6% of monthly gross sales. Most franchise companies have fewer than 100 units. The average length of a franchise contract is 10 years.

There, you now have most of the statistics about franchises, but what is the real question?
Here it is: "Is a franchise right for you?"

A franchise is right for you if, you are looking for a way to be the boss, or be in control of your life. It is right for you if you want financial freedom and a way to generate the income that you need in life. Now that isn't to say that you can definitely make money with a franchise, but the statistics show that more businesses are successful as a franchise, than if you were to open an independent location doing the same type of business. Why is this? Well when it all comes out, simply put, when you buy a franchise, you buy a "System" or "Method of doing business". Most of the time there is support and training as well as a brand name to go along with the Franchise. When considering any franchise, you want to ask the important questions.

1. How successful is your franchise? How many failures have you had and why did they fail?

2. What is my Return on Investment and how long will it take?

3. What is the ramp up period for this franchise?

4. What type of support will I receive?

5. Do I get a protected territory?

6. Who is your biggest competitor and why are they able to compete with you?

7. How fast can I expect to be open?

8. What is the number 1 obstacle to opening this type of franchise?

Those questions and more should be asked, that is just the tip of the iceberg when it comes to the number of question you should ask. Did you notice that I didn't put in there: "How much does it cost to open this franchise?" That question is really irrelevant, as if you can afford it, then it doesn't really matter, because if you are successful, you will see a return on your investment and you will have the freedom that you want. Freedom is worth a lot. Also, the cost of the franchise is not the most important question, yet most people focus on that question and forget the other important ones like the ones listed above.

Time is money right? Well money is time too. Sometimes you have to pay for the time you need, that is what a franchise does, it eliminates a lot of the startup time because they have already made the mistakes and found the suppliers etc... So you don't have to spend the time to do all of that. However, you get what you pay for, so make sure research the franchise you are interested in before committing to anything on paper.

If an individual is interested in franchising, attending a franchise show is a must. These events should be part of every potential franchisee's "due diligence." Franchise shows allow interested parties to explore the world of franchising.

Entrepreneurs should approach these shows with an open mind and a willingness to learn more about franchising. Sometimes people show up at franchise shows with definite ideas. They might want to buy a popular franchise. Yet maybe in reality, a smaller franchise might be a better solution for them.

Franchise shows give individuals a chance to explore the possibilities especially the wide range of franchises. Actually, 'big brand' franchises, like McDonald's or Dairy Queen, do not often attend the shows. Their absence is not any reflection on the value of these shows. Such big brands do not need to attend franchise shows. As well, they may not have any available openings.

The shows are an invaluable resource but people must make the most of the opportunities. Being in attendance at the show is not enough to either make a good impression or gain any knowledge. Participating in a show to the proper degree can make all the difference in the final outcome.

Franchise Shows - Proven Tips

Get Ready for the Show

'Getting ready' for the show refers to doing research about the companies at the event. When a person knows a little about each franchise at the show, they can ask intelligent questions. Reputable franchisors welcome relevant questions. People who ask intelligent questions can expect the same calibre of response. A wealth of information is the most valuable tool that a potential franchisee has at their disposal.

Participate in the Show

Do not just stay on the sidelines and browse the aisles. Put yourself in the mix. Drop by the booths, ask questions, and gather together all the available information and data about that franchise.

If the company officials are impressed with a person's approach, interest, and knowledge, they might be invited to meet the company CEO. Often top officials attend the show. Of course, some attendees are nervous about that prospect. There is a common misconception that talking to franchisors means that they will put pressure on you to buy into the franchise.

It is a myth that franchisors use heavy-handed tactics at franchise shows. Indeed, it would not even be beneficial for a franchisor to act in that manner. Franchisors want to get to know any potential franchisees. They do not accept franchisees based on the fact that they stopped by their booth.

Franchisors are looking for that 'perfect fit' for their franchise. Actually, the franchisees must look at a franchise in a similar manner. A franchisee must suit a franchise and a franchise must suit a franchisee.

In addition, buying a franchise is not such a simple process that it can be reviewed and fully discussed in one meeting at a franchise show. Potential franchisees need not fear franchise shows. These events are not about pressure to buy a franchise. The shows are organized to provide a learning experience for franchisees.

We are going to look over the advantages and disadvantages of purchasing a franchise or business, it will provide you with some important tips that will guide in making one of the most important decisions you will ever make.

There are a few good reasons to buy a franchise, first of all you are buying into a recognised brand name and franchise ideas without the customer base in that location. You could well buy a franchise that is up and running to narrow down your risk and minimise the issues involved when setting up a franchise from the start. Finding a franchise for sale and buying into it is a lot like starting your own business. You will more than likely have issues with the premises and have remodelling costs to take into account. But unlike buying a normal business you are not on your own. There will be a franchisor or parent company that can guide you through the start-up process and later on guide you through the operation. This will be a question you must ask yourself, are you willing to take direction from another person in the running of your franchise. Often many people start up their business because they want to be in total control, there are franchise ideas out there that offer this kind of flexibility but a franchise for sale option like this is had to find.

These flexible franchise options are on the market which offer the best of both worlds, the independence of running your own business with the possibility to expand the franchise ideas as you see fit. Many people looking to start their own business like the idea of a franchise because of the independence but without the complete isolation of doing everything themselves, having a guide is thought of to be beneficial to new start-ups. There are more and more home based franchise options that offer the brand and identity but have a lower purchasing cost and running costs to other franchises, this option also appeals to new start-ups looking for a minimum investment and minimum outlay. Be aware of schemes that are advertised on the internet and from other sources, like multi-level marketing and pyramid schemes as these will suck up your money and your ROI will be much lower and take much longer.

The next step is to think about proceeding to the next level. If you have decided that a franchise is the right option then go over the next steps to make it a success.

Talk to the owner of franchisor, the more you chat with the owner the better idea you will have about the franchise and their expectations of you and themselves. You should be able to create a relationship with the franchisor and through this negotiate the best contract for the business or home based franchise.

Do your research into the franchise, where the franchise ideas have gotten the business so far in terms of income and costs, go over the contract in fine detail and make sure you are happy with everything and the numbers add up. If the franchise has employees talk to them, this will help you acquaint you with the culture and attitude of the franchise and ultimately make a connection with the people who are working for you.

Buying a franchise can be hard work, but with the right knowledge and research a good franchise or home based franchise can be found and made into a success.

New franchise opportunities are springing up everywhere, and people are rapidly buying into them. A franchise may definitely provide a great business opportunity with a greater chance of survival than a traditional business startup. Here are some reasons why a franchise business opportunity may be just what you are looking for.

A Franchise Offers a Proven Business Model

One definite advantage that a franchise opportunity provides is that of a proven business model. The amount of "proof" may vary from one business to the next, but some of them are well established businesses that have definitely had the time to learn what works and what does not. While no business model can guarantee success, some franchises may come close if their techniques are closely followed. This is especially true where the brand name and products are well known.

A Franchise Provides Excellent Management Training

A business franchise that has been around for awhile has also had opportunity to develop excellent training materials for franchisees. Time is not always a determining factor on the quality of their materials, but it certainly does show whether or not they know what will work or not. By talking with other new franchise owners, you will be able to verify the quality of training materials, as well as the quality of ongoing training to enhance your franchise business even more.

A Franchise Often Supplies Excellent Marketing Materials

Many franchises will charge a monthly fee for marketing expenses. This may mean that a lot of the marketing is taken out of your hands. You should know, however, that the marketing that is provided will usually be top notch. Any materials available for your own selection will be of the same caliber and you will not need to develop your own or pay for marketing agencies fees for that level of quality.

A Franchise Enables Funds to Be Obtained Easier

Since the business model is proven to work well, lenders are much more likely to provide the needed funds for a new franchise. This is even truer when the franchise has been around for a while, and the borrower has excellent business management skills. Both need to be present in order to get the money needed. Lenders are being more selective these days and will not give a loan to anybody wanting to start a franchise.

A Franchise Furnishes Problem Resolution People

A franchise business also stands a much greater possibility of surviving over the long haul because the main office often provides expert help for franchisees. While not all franchises will provide personnel for management problems - many do. This gives you access to people trained by your particular franchise who are able to provide you with workable solutions in your business. In addition to that help, you may also have access to other franchisees that have faced similar experiences or problems. A new business startup, however, may not have that opportunity.

A Franchise Makes Materials Available for You

One more definite advantage of a franchise investment is that you are walking into a highly developed business. You are given a supply chain with pre-made printed materials and supplies, as well as being able to get them at a discount price. You also have proven products, a brand name, packaging, and marketing materials supplied for your business.

Many franchise businesses will also help you choose the building location and may even provide you with building plans that only need minor modifications for your location. Some companies will also give you many thousands of dollars in equipment or furniture to get your business going.

A Franchise Wants You to Succeed

Another advantage of a franchise investment is that the main office wants to see you become successful. While they must make sure you promote their brand their way, they also want to make sure your business thrives. They know very well that your success also ensures their own.

When you start a new franchise, you may also have the opportunity to start more than one. In fact, some of them will demand that you do so. This gives you an open door to not only have one business - but several; and many of them will also give you protected territories, too, thereby giving you no limit to how much success your new franchise business can have.

People decide to buy a franchise for several reasons. Franchises offer an established brand name and relatively easy access into a specific industry. Many companies that sell franchises will also help the owner along the way by providing franchise related training, money, or clients. This gives the franchise owner an obvious advantage over the average small business owner who must work by themselves to establish their business, name, brand, and product.

Before buying into any franchise opportunity it is important to keep the following tips and suggestions in mind:

What exactly does the franchise sell? This is important to understand market research, geographical needs, and distributor requirements.

How much does it cost? Many times the franchise owner will have to finance his or her franchise purchase. The franchise owner must make sure that the investment is still affordable and can be managed. Even the most successful franchise takes some time to get off the ground, so make sure to leave enough money in savings to last a couple of months while the new franchise location is advertised.

What are the benefits of the franchise? Many small business owners do just fine without a national brand to support them. There are plenty of one room burger joints that are more successful than the local burger franchise because people just like their burgers better. So what is the point of purchasing a franchise? Many established companies may be able to also offer stock options, educational incentives, the opportunity for corporate advancement, retirement packages or legal support should the franchise owner ever be dragged into court. In these cases, a franchise owner has much more probability for success than the average small business owner. It is the responsibility of the entrepreneur to conduct a self audit of their own needs, allowable expenses, and expected returns to determine whether or not a franchise would be a sound investment.

Is the franchise opportunity legitimate? Unfortunately there have been instances in the past of unsuspecting investors buying franchise rights from a worthless company. The entrepreneur must research the company he or she wants to do business with to ensure that the company is as established as it says it is and is capable of providing the support that any franchise owner would expect.

Where are you going to set up shop? Many franchise opportunities provide assistance in leasing out a building for the franchise owner to use. Some franchises may even have a building already set up to accommodate such a business. The investor should study what kind of success he or she should expect from a certain area and should determine just how much assistance the franchise company offers. Remember that in the event that a franchise fails, the company sinks, or business just isn't what it was supposed to be, the franchise owner will more often than not still be responsible for the remaining value on the lease.

Who will provide the employees? Will the franchise owner have full discretion over who is hired or will the company provide its own personnel. Some companies may require experienced managers to run a store for a certain amount of time before it can be determined that the franchise owner knows what he or she is doing. This may or may not be an important aspect for the franchise owner, but it is an important question to ask none the less.

Deciding to buy a franchise is the same as deciding to buy into any investment opportunity. It is the responsibility of the investor or purchaser to do the necessary homework to make sure that the opportunity is legitimate, sound, and potentially rewarding.

Few things are better than the passion and satisfaction that is brought by the wonderful aroma of BBQ food.

There is no doubt in anyones mind that if barbecue was a national food, in the United States it would win without losing a breath. One of the core reasons behind this is the simple fact that barbecue is enjoyed World over by almost every culture that you can imagine, and as such, enjoys a level of popularity not seen in other types of cuisine.

On top of that, every person that is capable of holding a pair of barbecue tongs also has their own personal favorites and knows how to best cook and present their favorite BBQ dishes.

Within the United States, there are four well known styles of barbecue that exist; from Memphis, Texas, Kansas City and Carolina, and within each of these states, barbecue restaurant franchises are available and offer an exciting opportunity to new restaurant owners seeking a successful business model within a well established market.

To whet your appetite for business in the Barbecue Franchise Market, here is the "meat" of the facts!

1) 7, 429 Barbecue Franchises operating since 1998; this figure has risen dramatically from 1998 - 2008. (1998 Recount U.S., a service of NPD Foodservice Information Group, Rosemont, IL.)

2) Burgers (82%), steak (79%), chicken (72%) and hot dogs (71%) top the list of the most popular BBQ foods prepared on a hot barbecue grill!

3) Charcoal grill owners are most often prompted to cook on their charcoal grills by a desire to eat great tasting food (77%)

4) Four in ten consumers who eat from a charcoal grill (39%) normally use barbecue sauce to add flavor to their dishes. Most popular flavors include hickory (65%), mesquite (49%) and honey (49%). (Source: The Hearth, Barbecue and Patio Survey 2007)

5) The first bottled barbecue sauce originated in Kansas City. (Dotty Griffith, Celebrating Barbecue..., 2002)

Is investing in a BBQ Franchise a sensible thing to do?

Passion for food is paramount to run any successful BBQ restaurant franchise, and if you have the energy and will to succeed, then you should seriously consider taking up the reigns on a barbecue franchise.

If you have a strong gut feeling that there is a great opportunity for a barbecue franchise in the area that you are considering launching, then start looking for a franchise that fits your financial criteria while satisfying your diners.

It should be known that the first year is the hardest for any franchisee and it is rare for a new BBQ franchise to break even. This is the nature of starting a new restaurant franchise.

How much does it cost to run a BBQ restaurant franchise?

To start your own barbecue restaurant franchise, you should be ready to invest in the regions of $75,000 and $250,000 in total capital investment.

Your BBQ franchise fee can be expected to average out at around $35,000 and the franchisor may possibly take a cut of around five per cent of your takings.

Locations, meanwhile, are likely to be large and spacious. You'll need to have a customer-facing approach that can fill that space, night after night.

Some franchisors construct from scratch to guarantee standardized experiences. Bar-B-Cutie for example, takes between 90 days and six months to build and prepare a site, so bear this in mind. If you are in a hurry to get started, that may not be the way to go as that could douse your grilling dreams in a bucket of cold water.

You could also find that barbecue restaurant franchisors want to be hands-on and take the lead on designing your BBQ restaurant so that it blends in with the franchise's brand.

This can include things like staff workwear, menus, dinner plates and so forth; leading names like the well-known barbecue restaurant chain such as the 55-year-old Bar-B-Cutie, are adamant in ensuring that their corporate identity is kept intact within their outlets.

If, on the other hand, you prefer running things your way, then it would be wise to seek a smaller barbecue restaurant franchise as they often have less stringent controls on the way you run your business.

It should go without saying, but always read the small print in any franchises terms and conditions, as they will all vary, some to your liking, and some not.

If you think you are ready to take up the tongs on your own barbecue franchise and open your own restaurant, take a look through these fiery franchise delight below and see what lights your fire.

The current list of active Barbecue Restaurant Franchises in the United States.

BD's Mongolian BBQ

Since 1992, BD's has been delivering a unique, interactive dining experience that sets them apart from the competition focusing on: Fun, Choice and Control. BD's are currently looking for franchise partners to help them build on the success they have experienced with both owner-operated and franchise restaurants.
Dickey's Barbecue Pit

When you open a Dickey's BBQ restaurant franchise, you're not just opening a restaurant. You're becoming part of the family. That's why Dickey's is the biggest fast-casual barbecue brand in the United States, and also the fastest growing.

Dickey's are quite selective about who they choose to join the Dickey's BBQ franchise family. Whether it's an Owner/Operator or a team member, they select only the the very best.
Famous Dave's Barbeque

Famous Dave's is a "specialty" casual dining restaurant franchise, creating environments that transcend current restaurant offerings by serving the highest quality, flavor-intense foods in surroundings that are stimulating, interesting and fun! Famous Dave's is more than a restaurant - it's an escape from the ordinary.

As of June 15, 2009, Famous Dave's had 176 restaurants open - 46 corporate and 130 franchised locations in 38 states. They have been ranked #1 in our restaurant category by 'Entrepreneur Magazine' in 2005, 2007, 2008, and 2009.

Sonny's Bar-B-Q

Sonny's reputation wasn't built overnight - it's been almost 40 years in the making. Sonny's Bar-B-Q customer acceptance is based on their unwavering commitment to making outstanding Bar-B-Q served by outstanding people.

Today, their success continues as a result of a strong family of dedicated franchisees backed by a solid system that delivers consistent products and profits.

At Sonny's Franchise Company, community involvement is a top priority. That's why they support various community initiatives throughout the southeast. Sonny's has strong partnerships in Education, Arts & Humanities, Charitable Initiatives, Youth Development and Human Services.

Virginia Barbeque

Their business model has been specifically designed to be family friendly to the customers and the franchise owner. Owners are drawn to the BBQ business because of the lifestyle freedoms that are unique to their chain that opens at 11 am and closes no later than 9pm.

Virginia Barbecue are also quick to point out that, "Americans now spend 47.9 percent of their annual food budget in restaurants, making it nearly equal with grocery stores and other retailers as their main source of food, the NRA stated."

Woody's Bar-B-Q

Woody's have a passion for Bar-B-Q, and a passion for great franchise partners. With a lower start-up entry cost and outstanding franchisee support, Woody's is a great opportunity within the fast-growing casual dining segment. And, Bar-B-Q is hotter than ever.

Woody's are committed to training new franchisees in all aspects of operating a new BBQ franchise business and provide dynamic opening advertising assistance and customer generation techniques, and the toll-free support line means that as a new franchisee, you will always have someone on hand to help.

The simple truth is that any business and any idea can be franchised. This is what Canadian Franchises believe in. The word Franchise in the directory in described as a special privilege granted. It was also described as the wave of the future by the futurist. In today's environment, Franchising is simply a method of doing business through the marketing of a product or service. Franchising offers people the freedom to own, manage and direct their own business within an established framework created by the Franchiser who then grants the privilege to operate within the guidelines of the proven structure. Canadian franchisers have known it all. They are making big profits as franchisee.

Richard Cunningham president of the Canadian Franchise Association recently stated franchising represents $100 billion in sales in Canada, employs more than 1 million Canadians directly and continued to grow at double digits during the last four years of the 1990's. He stated, Canada is one of the franchise capitals of the world, led only by the U.S. In Canada, franchising accounts for over 45% of retail sales.

The public in the world is increasingly attracted to recognize brand names because of the perception that they will receive quality, consistency, convenience, friendly service and value. Customers become loyal to a brand and usually are reluctant to switch provided their expectations are met. Canadian Franchises have realized the awesome power franchising has in developing and controlling a market through a network of owner operators, supported by a brand identification, a successful method of doing business, a proven marketing strategy, purchasing power, strong training programs and ongoing comprehensive support. Canadian Franchises reaps the benefits of the vigor and resourcefulness of local private ownership and can therefore dominate an existing market or enter new markets at a rapid rate by attracted those qualified individuals who are seeking an opportunity to be in business for themselves but not by themselves.

The Canadian franchises have a solid footing in the fast food chains like 'Custom Café' or 'Blendz' or 'Blimpie', retail franchises, health franchises, and work from home business. Canadian Franchises have rapidly expanded in recent years. Canadian franchises do extensive advertising in a given market because the costs are spread among many units. This combination of having many high profile locations with large advertising budgets is a competitive advantage that can't be overcome.

Prospective franchisees should also be aware that the Canadian Franchise Association requires its member franchisers to provide a disclosure document to prospective franchisees. Indeed, the Canadian Franchise Association is a strong supporter of the concept of "disclosure" and encourages prospective franchisees to "investigate before investing". Franchising can be a rewarding and lucrative business method, and there are lots of very happy and successful Canadian Franchises out there. But the fact is that this type of regulation is the norm and should be there for situations where franchisees are at risk.

Today's marketplace changes very quickly, often if you do not move quickly on expanding a concept, someone else will. The window of opportunity will close, and Canadian franchises just do not let it close.

If you're looking for a way to start a business out of your own house but aren't sure what you could do to become an entrepreneur, you may want to consider some home based franchise opportunities. These are ways for you to enter into a ready made operation with less risk and more profit potential if you're interested in working from home.

Before you make a decision to jump into this option, you'll want to learn a little bit more about what's available for you. However, we should start at the beginning.

What is a Franchise?

Before you can decide if his is how you want to start working from home, you need to understand what a franchise is. Most of us have spent money at a franchise before. If you've ever bought a Happy Meal or a Subway Sub then you've been to a franchise operation.

Although these are not home based franchise opportunities, they are examples of franchises that have been operating for a long time and doing quite well. They are proof that franchises can be big money makers not just for the head of the company but for the individual owners of the restaurants.

How Does A Franchise Work?

Basically, here's how a franchise starts. Company A opens its doors in one location. The company has a great service or product, as well as an effective marketing plan, which makes it successful at that location.

Maybe the owners of Company A decide to add a few more locations in their community and those also do well. It's clear that people in other parts of the country would also be interested in what Company A is selling but they don't want to be responsible for all of the locations in all parts of the country.

Instead, they make a deal with Person B who is looking for a way to start a business but aren't sure what to sell. They create a partnership. Person B agrees to open up a location for Company A. In exchange, Company A supplies the business and marketing plans, as well as the product or service being sold.

Of course, Company A doesn't do all this for free out of the kindness of their heart. Person A is usually charged some upfront fees for the service (this would vary from company to company) and must give a portion of their profits back to Company A regularly.

Of course, the benefits are clear. Person B is going to get a great deal with a ready-made company that could literally start making profits immediately. Company A gets a stream of income and is able to spread their company around the country easily. It's a win-win deal for everyone involved.

Working from Home Franchise Options

A work from home franchise is essentially still a business, but one that you can run from your home based office or one that does not require investment in commercial premises. Although if the venture really takes off, then sometimes renting an office can be an option.

If you're interested in starting a franchise from your home, you may be surprised at how many different choices are available. Below are a few ideas that are worth considering.

Local Directories and Magazines

These are essentially either a written publication or an on-line directory. Revenue is generated from these types of franchise predominantly from advertising.

It is entirely possible to start your own on-line directory but unless you are prepared to do a significant amount of software configuration it is probably best to purchase a franchise for this so you can concentrate on income generation as opposed to development

Education and Learning Franchises.

Ideal if you are keen on education. With these typically you will be selling online courses for either children or adults or even both. Overheads are low but you will need to be happy contacting cold customers or concentrating on generating referrals.

Training, marketing material and brand name normally form part of this home based franchise opportunity from the likes of ComputerXplorers for example.

Cleaning Franchises.

There is a whole host of home based opportunities in this market across a broad spectrum of industries.

This could range from home and office cleaning opportunities for example Merry Maids. The key here is to realize that you won't be doing the cleaning but would be developing and winning cleaning contracts and then recruiting employees to fulfil the contracts. Your income is the difference between the contract rate per hour or job and the employee rate.

Automotive Franchises.

Another huge market for the home based entrepreneur is the automotive field. Franchises here will require a certain amount of mobility so would not be suitable for a stay at home mom for example unless they were employing a managerial strategy and outsourcing or recruiting.

Typically automotive franchises could include bumper repair, dent removal, mobile valeting and windscreen replacement to name but a few.

The list of home based franchise opportunities is almost endless and if you are a true entrepreneur there is no reason why you cannot find one that is suitable for almost anyone if you want you own business bad enough

Just make sure you do your research and know what you're getting involved in before you make the commitment. Then you're going to be on your way to becoming a successful working from home entrepreneur.

Jim and Sally run a successful auto business, which they have built up over two decades and have expanded to three stores and many of their friends keep saying, "You should Franchise." They think about this for about five years read a few books, like "Franchising for Smarties The "E-Myth", "The Franchising Bible" and many others on the shelves of the new big book store in town with the coffee shop inside. They finally decide that it makes sense especially as they have friends and loyal employees who wish to be associated with them and even own the first franchises. So they set out to franchise.

They visit an attorney since that says in all the books to do. Most books about franchising are, at least in part if not whole, written by S2D2s (lawyers: S2P2s; Self-Serving Parasites of Planet) anyway, so they take that advice and visit an attorney. The S2D2 explains the MUD and helps by charging them a good chunk of change; $35,000 to prepare a boilerplate document which is so complicated they could not do it on their own without years of study. They give the S2D2 (scoundrel) the money and they look at the document and start asking questions.

They do not ask him about the price gouging laws that their state has after all the flooding from the remnants of Hurricane Ivan, although they feel severally violated in the outrageous costs to prepare the documents. After all there is some new shop equipment they need to test cars to stay in compliance with the latest smog certificates and they are not cheap either. So they ask some typical questions instead of why they had to pay so much.

"But Mr. S2D2, we want to be fair and give this and that assistance to the new franchisees, Bob and Margaret are long time customers of our shop and friends. Joe has been working with our company seven years and they want to buy the first franchises. The S2D2 explains that the Federal Trade Commissions Franchise Group is doing this for the consumer's protection. Jim and Sally understand this but what is all this about termination, litigation, arbitration or mediation? Why does it say we may give you this and that, of course we would support Bob and Margaret and Joe they are dear friends of ours and it is our name on the building, of course we are going to go out of our way to help them."

The S2D2 says, "yes, I understand that but this is for your protection too." Sally says, "great but, it sounds so vindictive and mean, why would anyone sign it?" The S2D2 says "there is much case law and history as to why these things are in these documents and they are to protect you, that what you are paying me for." Jim thinks to himself, we are paying you to pick a fight with our new franchisees and long time dear friends. Attorneys are mean spirited - #$%^&*. Are our worst customers at the shop and I will never forget that time a one-week temporary worker hurt his hand because he was not paying attention, then sued us. Even though it was on his way to work or so he said, we had to fight the case, we won but it costs us $17,000, gosh, I hate attorneys. Jim just gives a slight aggravated look and gazes towards the window over looking the river and much of downtown. How can anyone call what this guy does work?

So Sally looks at the cover page and the second page and the third and it says: "This sounds mean and ugly almost vindictive." The S2D2 says, "this is to protect you, franchising is very litigious." Sally: "But these are our friends." She looks at Jim and gives him a look, what are we getting ourselves into? The attorney also has an interesting look, a grin. Knowing that soon he will have much work defending them in lawsuits, he thinks to himself; gotta love these entrepreneurial suckers, so naïve thinking they are going to do good in the world, help people get into business and make money at the same time, living in a dream world, oh well thankfully they do exist, although I am noticing a decline in such folks over the years, but this is live bait, and I will make all I can while they still have money.

The S2D2 then starts smiling as they leave. Knowing he can return the favor to some of his fellow attorneys nearby who specialize in divorce law and bankruptcy, etc. He has seen it before, good companies franchise and then the lawsuits, divorce and bankruptcy, he can smell it. He does not think more than a second or two that he and his S2D2 are the cause of all of it. Even if we are, we deserve the money, we are smarter than everyone else, have spent years learning all this dribble and besides I need another new BMW and the golf membership is coming due. Must keep up with the boys to continue to get those referrals.

Jim and Sally are having second thoughts, but are committed to the plan and already have the first three franchises sold to family, friends and loyal employees. "We promised Jim, we gave them our word, they are counting on us." "Yes, but Sally, I really hate attorneys, they seem so cold and they don't care, look at what he is charging us?" Sally says, "yes I know, but if we sell enough franchises we can send our kids to law school, that is where all the money is, look how hard we work to build a business and that fat cat attorney, just sits in that office with the view and works a few hours a day and that paralegal in the back seems to do all the work." Jim observes; "You know Sally, I really want to do this, we have worked so hard. Hey did you notice the way the secretary was looking at the attorney? I think they have something going there?

Well maybe he is doing the paralegal too?" Sally says " yes I think you are right about the secretary, but the paralegal is definitely gay, you really think so?" Jim says, "Heck, yes, he seems like the squirrelly type, I do not trust him." Sally says "But, Jim you know his wife is a VIP in town? I agree with your comments did you notice how fast the attorney took you up on that offer too give his car free service?" Jim "Says, well the lawyers are a necessary evil, we ought to double the price whenever they come in with cars to the shop." Sally says, we ought to deny them service, so they do not try to sue us." Jim says "Yah, but there is probably some law against it and then they really would sue us, maybe we should just defer to Caesar on this one?" Sally agrees, "Caesar was Right!" Jim shouts, "Take no prisoners, kill them all, ha, ha, ha." Jim gets on the on ramp and lets all 455 cubic inches roar. "We're gonna pass everything but a gas station from here on out!"

The next day, Jim and Sally are over the negative observations and Jim says "Well now we have the documents let's go visit our future franchisees, finally after four months of paperwork." Sally smiles. Jim says "you know I love you honey, we are finally going to do this." Sally says "good, for a second I thought you had the hots for that paralegal, he was sure checking your rear end out." Jim says "oh great! But I think I am more worried about his boss trying to screw both of us in some bizarre three-some."

You see Mr. Federal Trade Commission this is how it all starts, it all starts out on the wrong foot. Why? This MUD is clouding the reasoning and strength of franchising. Franchising is a win-win situation, when it is buried in MUD it creates an adversarial relationship from the beginning.

Jim and Sally are ready and they call the attorney to make sure it is okay for them to visit the prospects, who are already to sign up. The attorney says well, wait a minute we need to discuss this, because there are rules of disclosure and you should also think of setting up a sales department and have forms for compliance.

The cold electronic like S2D2 right on que says; "tell me about these prospects." Sally says "oh they are so very nice. First; Joe has been a trusted employee for years and knows everything about the business and he has a partner and his parents are putting up the money for the equipment for part ownership and helping him qualify for the lease on the building, he already has a location picked out, the same one Jim and I were going to put our fourth store, before we started to franchise instead." Well that is very nice the S2D2 says to Sally "incidentally Sally where do his parents live?" Jim says "They live across the river in IL and his partner is from MI, he will be moving here once the business gets going."

The S2D2 is salivating understanding that MI is a notification state and IL is one of the three worst states to do business for franchisors, some franchisors have even gone to the length to say that the state of IL is on drugs like those 'fruits, nuts and flakes' at the California Department of Corporations along with the rest of the population of girlie men in and around San Francisco, although everyone likes the new 'Governator'. The S2D2 says; "well Jim we have a slight problem." Jim thinks to him self, uh oh, he remembers, 'ah Houston, we have a problem' and then says; "What, it is all set up, the parents already sent a check to Joe for the first and last on the lease and he signed the lease this week, Joe already gave them a deposit." The attorney says "well we need to slow down, first Jim and Sally I do not know how to break this to you, but MI has to be notified that you are offering franchises in their state and IL needs full registration, I of course can do all that for you." (huge smile comes over the S2D2, even feels a tingle in his thing and winks to the paralegal as he reaches for his member in a display of manliness, similar to the movie 'Wallstreet' or 'Boiler Room'.)

Looks like the S2D2's golf membership is in the bag after all he thinks to himself; Sushi tonight, hell for the rest of the week, why not. This is going to be great; he thinks just maybe; I can sneak off with Liz, the secretary, for the weekend and tell his wife it is another very important rule making session in Las Vegas for the Federal Trade Commission's Franchise group where important franchise attorneys from all over the country meet to discuss the franchise rule which has had no changes in 10-years. It has been documented that law enforcement officials, judges, policemen and attorneys are the most likely professions to have extra curricular affairs with either members of their same sex or the other. (Source: Netscape News Online Oct. 2003).

The S2D2 says to Sally and Jim, "The registration for IL could take up to several months, if everything goes perfect." "Several Months" shouts Jim. "Yes, well this is nothing compared to Cal-if-forn-ia." Explains the S2D2 and goes on to say; "our standard fees are $10,000 to register in IL and we can probably do the MI thing for a thousand plus fees." Sally says "But, we are not are only charging $10,000 for the franchise fee to begin with and we are not franchising in IL or MI, surely not for a couple of years, we have a strategic plan to 'Start Small and Finish Big', besides we want our first franchisees close by so we can help them, running a business is not easy you know and we need to be available here."

The S2D2 changes from friend to father daughter mode and in a voice only grandfather's use he says; "Dear Sally, I think you are misinterpreting what I am saying here, I understand you are not franchising in Illinois right now or even Michigan for that matter. But the people involved in your franchise have partners who will have interests in the franchise who live in those states you see and that requires you to be registered in those states or in the case of Michigan to notify you are offering them a franchise."

Sally says "but we are not offering them a franchise, we are offering a franchise to Joe our employee. Who is already to start and we want to give him that 'UFO thing', the U-FOC, I mean U-fock as you call it, you said they have to have it for ten business days and there is a holiday weekend coming up and Joe wants to start ASAP, he has been buying new tools like mad from the Snap on Tool guy, he is so ready, he wants to get busy and make money before the 30 day bill comes in for all those tools." S2D2 explains, "Sally, I understand your frustration, but that is the IL law.

It doesn't matter, what you think the law says or what you have worked out with Joe of your own free will, you are in a franchise now. Also Sally remember about the master lease clause and additionally if Joe's parents pay for the lease and are a partner in the company and their residence is IL then we already may have a problem. We will disclose this to the IL registration people, but it may delay application since technically we are in gray area and as per law a technical violation. Meanwhile see if Joe can get his deposit back so you can sign the lease and sublease to him. Also in your franchise agreement we agreed that site selection was part of the franchise fee."

Since I am a franchise consultant/broker, some may dismiss this article as biased. However, the main point that I am trying to address on this page is to analyze the actual dynamic of searching for a franchise and the realistic value franchise consultants bring to the process.

When searching for a franchise, entrepreneurs often come across various franchise consultants and wander: "Why should I use their services?" The answer is simple: "To save time and money." Franchise consultants may not provide a total solution, but their services usually come at no cost and they regularly spend hours interacting with people who buy and sell franchises, making them a good source of information

It is rare to for anyone to actually know a franchise consultant before seriously starting their search. Plus, there are just not that many franchise consultant around. It is a niche profession that was born from the franchisors' constant thirst for more qualified candidates. The first time people start hearing about the franchise consultants is when they actually start searching for a franchise.

Just like in any service profession, there are all kinds of franchise consultants out there. Some spend hours a day studying franchises and doing research on behalf of their clients, constantly looking to learn and improve their resources. Others spend little time learning and more time steering people towards the companies that they know will pay the highest commission. Some work with ten companies, some represent hundreds. It is not, and never should be, a secret that the majority of franchise consultants work on commissions paid by the franchise companies. Consultants, or brokers, provide their information at no cost with a plan to pass along a qualified candidate to the Franchisor. That does not make them any less useful. Many consultants compare their business to that of corporate recruiters who spend their time talking to hundreds of people in search of the right candidate.

My advice to someone looking for a franchise is to explore every option available. This includes utilizing the services of a franchise consultant. In the same manner I would advise anyone to use the services of a good lawyer and accountant during their search. Not using a consultant will not save the franchise shopper any money that is for sure. Legally, a candidate can't cut a consultant out of a deal with a franchise they were referred to, similar to the way some people undercut (bypass) real estate agents.

I suggest thinking of a franchise consultants as a tool in a Swiss knife. They may not work for every job, but are definitely well suited for a quite a few. They may not be able to find the "right" business. Candidates may not like what they have to say or the companies they refer them to. However, it is very likely that they know a good deal about franchising and can provide a volume of useful information. At the very least, a franchise consultant will educate potential franchisee on the process and will help sort our businesses they do not want. That is a great start within itself.

If a candidate is serious about buying a franchise and approaches the process thoroughly, the information they obtain will definitely help them become a better buyer. As long as candidates remain pragmatic through the process, the information franchise consultants can provide will help them save time and money. In the end, the choice belongs to the candidate. Franchise buyers are responsible for the due diligence, analysis and, of course, their money. However, understanding what franchise consultants do and utilizing them as a tool in a franchise search process can be very valuable, indeed.

An individual who signs a franchise agreement is executing a valid legal contract. It requires the franchisee to fulfill certain obligations and follow guidelines for operating their franchise.

Before you sign the franchise agreement you need to be comfortable with all of its provisions. In order to achieve this comfort level you and your franchise attorney may feel it necessary for the franchisor to make changes to the agreement. Some franchisors will negotiate terms of their franchise agreement while others will not. Quite often, the decision to negotiate is based upon the size and maturity of the franchisor. The larger franchisors find it much easier to say "no". Although franchisors are guided by franchise regulations, state statutes and sound business practice, certain provisions can be negotiated and changed.

Before you arrive at the point of negotiating your franchise agreement there is a process you'll need to follow.

· Engage An Experienced Franchise Attorney To Review The Agreement

· Confirm That The Franchisor Will Negotiate Terms Of The Agreement. Some franchisors will not make any changes to their agreement. On the other hand some franchisors may have unreasonable or onerous terms in their franchise agreement. In order to protect yourself make sure your attorney reviews the agreement to identify any possible issues even though you can't negotiate the agreement.

· Recognize That Certain Terms Are Non-Negotiable

Royalty fees, territory size, termination provisions, length of the agreement, non-competes and legal venue are examples of what are considered the "untouchable" provisions. Few if any franchisors will negotiate or change these provisions.

· Focus On The Important Points In The Agreement. Restrictions on products and services that you wish to sell

· Indemnification Provisions. Be careful that you're not held liable for loses or damages that are not caused directly by the acts of you or your employees. You may request language, which does not require you to indemnify the franchisor if you follow the procedures and policies of the franchisor.

· Advertising. Provisions that require you to spend a set dollar amount or per-cent of sales on advertising may be lowered during your first few years of operation.

· The Transfer and Assignment Section. Be sure your attorney carefully reviews this section and that you understand your responsibilities and rights.

These represent some of the more noteworthy examples of sections in a franchise agreement, which you and your attorney may wish to negotiate. A franchise agreement is a complicated document and by design is favors the franchisor.

Make sure that before you sign on the "dotted line" you fully understand your obligations and are comfortable with the final agreement.

Before you sign the franchise agreement you need to be comfortable with all of its provisions. In order to achieve this comfort level you and your franchise attorney may feel it necessary for the franchisor to make changes to the agreement. Some franchisors will negotiate terms of their franchise agreement while others will not. Quite often, the decision to negotiate is based upon the size and maturity of the franchisor. The larger franchisors find it much easier to say "no". Although franchisors are guided by franchise regulations, state statutes and sound business practice, certain provisions can be negotiated and changed.

Before you arrive at the point of negotiating your franchise agreement there is a process you'll need to follow.

· Engage An Experienced Franchise Attorney To Review The Agreement

· Confirm That The Franchisor Will Negotiate Terms Of The Agreement. Some franchisors will not make any changes to their agreement. On the other hand some franchisors may have unreasonable or onerous terms in their franchise agreement. In order to protect yourself make sure your attorney reviews the agreement to identify any possible issues even though you can't negotiate the agreement.

· Recognize That Certain Terms Are Non-Negotiable

Royalty fees, territory size, termination provisions, length of the agreement, non-competes and legal venue are examples of what are considered the "untouchable" provisions. Few if any franchisors will negotiate or change these provisions.

· Focus On The Important Points In The Agreement. Restrictions on products and services that you wish to sell

· Indemnification Provisions. Be careful that you're not held liable for loses or damages that are not caused directly by the acts of you or your employees. You may request language, which does not require you to indemnify the franchisor if you follow the procedures and policies of the franchisor.

· Advertising. Provisions that require you to spend a set dollar amount or per-cent of sales on advertising may be lowered during your first few years of operation.

· The Transfer and Assignment Section. Be sure your attorney carefully reviews this section and that you understand your responsibilities and rights.

These represent some of the more noteworthy examples of sections in a franchise agreement, which you and your attorney may wish to negotiate. A franchise agreement is a complicated document and by design is favors the franchisor.

Make sure that before you sign on the "dotted line" you fully understand your obligations and are comfortable with the final agreement.

How To Achieve The Basic And Most Obvious Goal Of A Franchise: To Make The Relationship Beneficial To Both The Franchiser And The Franchisee.

Franchising can be likened to having a car after a trip to the car dealer. Once we are done with choosing a franchise or deciding to franchise our business, we would need to address this crucial question: in the same way that we need to get the car out of the dealer's premises after paying for it, in the same way that we need to get the car out of the dealer's premises after paying for it, how do we make the franchise work once it's in our hands?

Much has been written on how to franchise a business or to choose one, but this particular phase of franchising is simply the tip of the iceberg, so speak. It is making the franchise work making it succeed and grow into a viable and vibrant business that's really the heart of the matter, and I must say that this is a challenge that is bound to test the maturity of both the franchiser and the franchisee.

The basic and most obvious goal of a franchise is, of course, to make the relationship beneficial to both parties, but even then, we must recognize that our actions in going into a franchise relationship may not necessarily be motivated by the material benefits that we can derive from it.

It could be that the benefits we expect are primarily social - "I want to own or belong to a successful team." "I can prove my business has excellent potential."- or psychological- "I just would love to do what franchise concept calls for." "by franchising, I can now expand my business." - or perhaps even emotional - "I will need a support system to start my business." "I won't be alone but have other entrepreneurs managing similar branches." Still, the bottom line w0ill ultimately be the financial benefits that both parties can derive from the franchise relationship.

Indeed, franchising may be distinct from other means of expanding a business, but the expectation of a good financial return will always be at the root of it.
As in driving a good racing car to peak speeds of up to 220 kilometers per hour, you can make the franchise engine work at peak efficiency only if all of its components are working smoothly and harmoniously. Franchises are like vested cars in races -they have to be very well maintained and their parts must always be kept in tip - top condition.
So, to pursue the analogy further, if your franchises were a car, how would you make it work so you can derive the maximum benefit from it and harness its full potential?

The Operations Manual

The first thing to do is to make the franchise Operations Manual work for you.

Oops! Don't make the mistake of keeping that manual in a secure and safe place or, even worse, keeping it under lock and key. The Operations Manual is meant to be understood and regularly referred to as you operate your franchise. You must read and fully understand the operating manual of the car. Why? It's because that car manual identifies all the parts of the car, explains how they function, and shows the user how to maintain them. In the same token, the Franchise Operation Manual contains all the information you need to make the franchise functional, whether you are the franchiser or the franchisee. Because it prescribes in detail the standards of the business model, the Franchise Operations Manual is what will enable the franchise system to achieve uniformity and consistency in its implementation.

The franchisee should use the Operations Manual as the primary guide for running his or a static and inflexible set of rules. The franchiser should regularly update and improve it to enable the franchise system to keep up with technology. It won't be an understatement to say that a franchise system that doesn't regularly update its Operations Manual is headed towards disaster sometime soon.

The Communication Fuel

Tons of articles have been written about the importance of communication not only in franchising but also in general. To go back to the car analogy, what will keep the car running to our desired destination is fuel. In a franchise system, the equivalent of the car's fuel is communication. It is communication that will enable the major participants in the franchise system - the franchiser and the franchise - to achieve unity of vision and objectives and to agree on how to achieve them. When there is basic acceptance of the importance of often dialogue between franchiser and franchisee, the franchise system is greatly enriched and grows much faster.

When the unity of minds between franchiser and franchisee is the goal, the communication dynamics in the franchise system be comes more challenging and exciting. On one hand, no longer will you have a franchiser who thinks his or her franchisees are just there to collect fees and not to provide support. In such a situation, even if the initial atmosphere may be stiff and uncomfortable, at least the franchiser and franchisee can now sit down in a spirit of openness and dialogue.

The franchiser often has to make the first move by going back to the basics, particularly on why there is a franchise in the first place and why there is a franchise in the first place and why he or she decided to franchise the business.

Then the franchisee can begin to verbalize his or her reasons for choosing the particular franchise among all his other choices. The dialogue can continue and move on to the identification of the present concerns of both the franchiser and the franchisee. They need to view these present concerns from the perspective of initial goals and objectives, and when they do they will find that their goals are not contradictory but actually the same, thus leading to a mutual desire to continue with their franchise relationship. Agreements can then be sealed with a handshake and both parties can leave the room in high spirits and on a positive note on how to further grow the franchise system together.

Preserving the Brand or Trademark

In the past, brands and trademarks were not given an actual value; today, however, the value of companies goes far beyond their actual physical assets due to the value of their brands and trademarks. The likes of such giant global brands as Colgate, Coca-Cola, and McDonald's, for instance, are of such immense actual value. For this reason, preserving the brand in a franchise system benefits not only the franchise but its franchisees as well.

Some franchisees often frown at their franchisers' strict rules in the use of the trademark; for instance, in the printing of promotional materials that calls for written approval of the franchiser in its use. This is actually an unjustified reaction. The preservation of the integrity of the trademark should be a paramount concern not only to the franchiser but to the franchisee as well, fro it is the trademark that the customers will remember about the franchised product or service, and it is only when a customer gets a "wow" experience from using that product or service - translated to a highly favorable perception of the brand - that a franchise system can expect to add that customer to its coveted loyal and regular customer base.

So important is the franchise trademark or brand that some franchisers even take pains in preparing a corporate identity standards manual to give precise specification for its use down to how a brand should be rendered in pantone colors. It is therefore extremely important for all parties in the franchise system to work closely together in communicating a consistent trademark or brand to the market and to its various other publics.

Constant Maintenance

The productive life of a car greatly depends on the constant care and maintenance it receives, and some classic cars are even known to outlive the life of its owners. What lesson can we derive from this analogy? It is that the franchise system's engine could be expected to continue producing energy for growth only when the franchiser and franchisee are one in making sure the system undergoes constant improvement. Indeed, while improvements in the franchise operation manual are a must, the entire systems itself also need to undergo upgrading periodically.

The big questions to be asked are these: Is the franchise model still relevant to the changing market? Can the franchise application process be improved to screen applicants even better? When was the last time franchisers and franchisees sat down together to review the franchise agreement? Do franchisees regularly analyze their local market and their position? Is there a sustained effort to promote and market the brand? Are franchisees consistent in doing local store marketing?

Are changes needed in the format of meetings and conferences so that both franchisers and franchisees actually look forward to attending them? Does the franchise system regularly monitor its present market share versus its target?

Is there a corporate planning conference participated in by both franchiser and franchisees? Are initial franchise fees and royalties reviewed regularly? Are there comparative studies conducted to check the financial performance of both the franchiser and the franchisees?

These are some of the questions that need be answered if the franchise system is to outlive the life of its founder, like what McDonald's has achieved by maintaining very strong and viable franchise system despite the demise of Ray Kroc.

Making the franchise engine work will always be a challenge to both the franchiser and franchisee, but when both parties keep their focus on the mutuality of benefits, the task need not be an adversarial and unpleasant one.