Franchising

Have you ever wanted to own your own business, but have reservations about taking such a significant financial risk? Finding the right franchise business will reduce that risk and help you reach your goals. Owning a franchise business means you have the right to use a company name and sell the company's products, while the parent company (or the Franchisor) sets the standards and makes marketing, advertising and internal decisions.

The franchisor already has a proven track record of success, and therefore already has plans in place to help you, the franchisee, get your franchise off the ground. The franchisor can offer their established and respected name, proven products or services, and training to help you and your employees succeed. The franchisor has knowledge of what mistakes are routinely made by someone who is starting their first business, and has taken action to eliminate those mistakes to ensure anyone who is opening up one of their franchises will have the guidance and support of the franchising corporation.

The first thing you should do when considering a franchise opportunity is think of a franchise that sells a product that interests you. Having passion and knowledge about a product or service you are selling will give you a great foundation for your business. Your knowledge and skill can be taught to employees and come through in your interaction with customers. A franchise consultant can help you focus your goals and assist you in finding the right franchise business for you. Franchise consultants can calculate which franchisor has the best business model for you based on your unique personal profile. Your goals, skills and interests will be matched with a franchise model that best exemplifies your expectations.

Research the franchises you are considering. Find out their financial strengths and weaknesses, as well as their locations in the region. Visit a franchise and, if possible, talk to the owner. Ask him or her their opinion of the franchise, the franchisor and what he or she likes best about the company.

Consider your financial investment. What is the initial startup cost of the franchise and how to you plan to finance the investment? Will you have to take out a loan or do you have the capital on hand? Opening a franchise business is a significant financial investment, so make sure you have enough money left over to support your family and pay employees during the times when business is slow.

Before you sign any contracts or enter into any agreements with the franchisor, meet with a franchise attorney. The franchise attorney specializes in legal business matters that pertain specifically to franchise businesses. The franchise attorney can advise you on certain aspects of the contract and explain to you parts of the contract that are unclear. The franchise attorney can also negotiate with the franchisor's attorney to make sure your best interests are being met.

The most important thing to remember as you search for your new franchise business is to do your research. Enlist the help of a franchise consultant who will ensure your goals are being met. Owning a franchise is one of the most important decisions you'll ever make, and finding the right one for you will give you a greater chance of success.