Franchising

We've all dreamed about it - having a job that allows us to make a substantial income whilst having a flexible lifestyle. This is achievable with a part time franchise.

The ideal candidates for a part time franchise are busy professionals looking for a second income or stay-at-home parents who want to spend time with their kids and make extra money. Part time businesses have all the added benefits of traditional franchises including brand recognition, training and support, and a tested, proven system, all allowing the franchisee to take less risk.
Further, most part time franchises allow the franchisee to work from home, although they may require regular visits to clients depending on the business. Examples of part time franchises include:

o Business consulting and accountancy franchises where the franchisee works with clients to cut their costs or put their finances in order.
o Dating franchises where the franchisee organizes events at different venues and provides Internet dating services for clients via their website.
o Vending franchises where a vending machine or snack boxes are installed and maintained by the franchisee.
o Automotive franchises where the franchisee travels to provide convenient car repair and valet services to the clients.

Benefits of Part Time Franchises

A part time franchise opportunity presents many benefits, including a healthy work/life balance, a second income, and reduced risk. However, do not let these benefits fool you into taking it less seriously than a full time franchise. Do your research and ask the tough questions. You don't want to enter into the franchise opportunity and find out it's not as "part time" as was advertised. Also keep in mind some franchises are not exclusively part time opportunities, yet you can make them that way. For example, if you become a domestic cleaning management franchisee, the time requirement will be determined by how much business you solicit. Alternatively, if you do lease a retail space, you may manage it part time and hire someone to oversee the operations on-site. This option will work well if you have a great pool of candidates to choose from since you want a qualified individual with the interpersonal skills to effectively manage other employees you may hire.

Evaluating Part Time Franchises

Consider the following elements when investing in a part time franchise opportunity, as you will want to make sure you benefit from them. They are:

o Flexible hours: You usually get to decide how much time you put into this business and what your hours will be, making it much more flexible than a typical 9 to 5.
o Few employees (if any): Depending on the franchise, you may need to hire some employees. For instance, domestic cleaning management franchises usually allow you to operate out of your home by hiring cleaners to do the actual cleaning.
o Low overheads: Part time franchises are generally low-cost, low risk endeavours, largely because they don't require a storefront or office. The low capital and operating costs allow for a relatively quick return. For instance, some online business franchises can be run from your home with nothing more than a computer, an Internet connection, and a phone.
o Minimal equipment and stock: Part time franchises generally don't require much equipment or inventory stock. This means that you don't have to spend money on costly items and you won't have to find the space to store them!

Steps to Achieving a Part Time Franchise

Before becoming a part time franchisee, discuss important details with the franchisor about the opportunity, including what you will specifically need to do, what kind of support and training you will receive, and how much capital it will take to start the business. Make sure to ask pointed questions to determine whether this is really a part time franchise or not.

Then, speak with current franchisees to find out the real deal on the part time franchise. Ask how many hours "part time" constitutes for them, whether or not they work from home, what kind of earnings they are seeing, and whether they recommend this franchise to others.

Keep in mind you will need to be motivated enough to put in the hours, disciplined enough to work from home, and highly organised.

Also, beware of opportunities that sound "too good to be true" - they often are. Even if this is only a part time franchise, you will still need to put in the effort to make it a success. Those franchises that guarantee you will turn a large profit in a short amount of time with no effort at all are probably not legitimate. Set realistic expectations for how much you can make with a part time franchise.

Browse through Franchise Direct's many part time franchise opportunities to find one that catches your eye.

There are lots of myths, misinformation, and even lies about buying a franchise that can cause you to make bad investment decisions. Franchise companies, franchise salespeople, and even franchise consultants do a great job of touting the success rate of franchises.

Because of these franchise myths, hundreds and thousands of people all over the world have bought a franchise that the franchisor should never have sold them. They were not fit to sell franchises in the first place.

Please don't make the same mistake!

Buying a franchise has been touted as a virtually risk-free way of owning a business. The message delivered in countless franchise brochures and sales pitches is that buying a franchise turns business ownership into a much safer investment.

Business franchising is essentially a mechanism to deliver a product or service to consumers. The more consumers a business can reach, the healthier its profits are going to be. But to reach those consumers, a company will need large amounts of capital to develop new sites and open new outlets. Franchising allows companies to attract investment and expand quickly, while allowing franchisees an opportunity to run their own businesses marketing a proven product.

It's a win-win situation right?

Wrong!

There are all sorts of potential problems in franchising -- problems that can blow away a franchisee's capital and leave him or her stuck in a franchise relationship that offers nothing more than frustration. These aren't the kind of problems you're going to read about in most of the literature on franchising.

When people think of franchising, they think of business ownership and success. They see the advantages of owning a franchise and the benefits of becoming a franchisee. They imagine:

• Buying a proven business model.
• Complete training in their chosen business.
• The advantages of name or brand recognition.

The bottom line is that franchising is often SOLD on the promise of success rather than on the merits of the individual franchise company.

Franchising clearly promotes the idea that you will have more chance of success as a franchisee than if you were in business on your own. In reality, the risks of owning a successful franchise are much higher than the franchise industry would have you believe.

Franchising -- According to the Franchisors

Let's look at what you're being sold by the franchise industry. They'll tell you that you can expect a caring and considerate franchisor, someone who is always there in a crisis, someone to guide you through the unknown, someone who is experienced in business as well as franchising, someone who is supportive and can fix your problems -- they'll have you believe you're in a father/son relationship.

And on top of all that support, they'll also give you a strong brand that will attract customers, and training to keep them happy. Understanding the true relationship between franchisor and franchisee is crucial to succeeding in the franchise industry.

The franchise industry has made a lot of promises. The most important of these is that franchising is a safe investment. One statement used widely in the past is that "only 5% of franchises fail in the first five years of business." Another is that "80% of non-franchised businesses fail in the first two years."

These figures lead would-be business owners to believe that franchising offers a low-risk entrepreneurial opportunity. The statistics are way off. In reality, thousands of franchisees FAIL every year. The promise by the franchise industry that franchising is the easiest and fastest route to success is not only a lie, it's downright negligent.

Let's be clear about one point. There are successful franchisors. We see them everyday of our lives, and we buy their goods and services. But for every successful franchisor there are many more that trade-off the reputations of these well-known brands, and even some of the most successful franchises have their drawbacks.

You would expect that as a franchisee, there would be laws in place to protect you.

Well, in reality there aren't!

All the franchisor has to do legally is disclose all of the details of the franchise to you. Once you've signed, if problems arise later in the relationship (which is anytime after the Franchise Agreement has been signed) you will have waived any rights.

The pitfalls of franchising are many and serious. But only by understanding all of them will you be able to make a fully informed decision on the franchise you are appraising.

When thinking about entering business via buying into a computer franchise business it is first very important to look at information technology in its entirety and whittle down the type of systems offered to you.

From the directory you produce you can then start to consider which divisions of the market are growing or declining. You can in addition see major personal requirements that are needed.

This will aid you to center on what sort of computer franchise business will perform best for your business building future.

PC Maintenance

Computer repairs is a service that gives computer support assistance to all sizes of companies. This can be achieved either in-house or by outsourcing. Outsourcing is growing in popularity, principally in a weak economy as it allows companies more flexibility and less liability with employment expenses.

Ink Cartridge Recycling

The recognition of green businesses has been expanding in recent years and franchising has a considerable part to play in this marketplace. Government legislation can help to grow the recycle marketplace as companies need to be responsible for ecologically aware policies and obligations.

Hardware

Promoting the sale of hardware is a industry in decay and you will not come across much franchising involvement in this sector. Computers are sold as loss leaders for other products such as insurance.

Advertising

Online marketing is a increasing area. As hard copy directories sit on the shelf, an increasing number of customers turn to the internet via local searches in the major search engines to discover valued services to purchase.

A lot of computer franchises for sale don't insist on technical know-how as training is provided as a component of the franchise business package. World wide web Advertising franchises for instance generally require simply that you possess plain skills to use a computer and the internet. Whereas ink cartridge and hardware type franchise businesses rely more on sales skills.

What to consider

After taking into consideration which advertising franchise system you may be interested in you should take some time to consider the franchise cost and charges. In addition, talk to the franchisees and get their opinions on the franchise opportunity and the backup supplied by the franchisor. This is wise as they can usually provide you with beneficial insight into how the franchise system operates and also performs in support of them on a day-to-day basis.

Next, its time to go to your bank for advice and additionally get their opinion about the franchise system you are considering investing in. Its additionally worth opening talks with the franchise association in your country for further advice.

As soon as everything is decided, sign up, get trained up and be devoted to the brand's established system earnestly for best return on your time and investment.

We've compiled 5 tips that will help you discover the right organic franchise business and begin making a high income. Discovering the right franchise requires a lot of time as well as research. If you're fortunate you find the ideal business and begin getting excited with regards to the possibilities. In addition, you need to realize that purchasing a franchise doesn't guarantee that you'll make any money regardless of what their track record appears to be. Nevertheless, by simply following these 5 tips you'll be able to increase your odds of finding the right organic franchise and building wealth.

1. Imagining Yourself in an Organic Franchise

Many experts will advise you that to achieve success in a franchise you have to choose one that you could have confidence in. The franchise that you're looking to purchase needs to be one that directly fits your passions as well as your abilities. That could mean that you should have a look at yourself and determine what your weaknesses and strengths are before investing. Look into different owners of franchises you're interested in and find out if they have comparable personas as yours.

2. Steer clear of "Trending" Organic Franchises

As we all know, trends can come and go. Investing your hard earned money in a franchise that may only last a while rather than possess a long-term future is silly. Franchises that happen to be hot now can cool off in the same way quickly. Stay clear of organic franchises which have lots of copy cats in the market. That sort of competition will most likely prevent you from achieving your goal.

3. Look for Successful Organic Franchises

It's all about the actual sales and you need to invest in a franchise that has excellent product sales figures. If you discover that a certain franchise has many units on the block that may mean the business is having issues and you need to stir clear. One method to validate is to take a look at franchise brokerage sites to ascertain if other franchise companies are selling, particularly at affordable prices.

4. Give Special Attention to Franchise Complaints

Another component of checking out a franchise to purchase is to search for complaints. By simply checking the net you might find complaints from existing or past franchise proprietors. This may be information that is crucial to you in your determination to acquire that business. Bear in mind though, you will constantly find a few complaints with regards to a business. If you can find just a few of them you can generally chalk it up to some unhappy former franchise owners.

5. Avoid the New Organic Franchises

Starting out a brand new business can often be difficult particularly when that franchise is totally new. All you need to do is check out the history of franchises to find out that lots of start-ups come and go. To boost the chances of you being successful choose a well-established franchise, the one which has been around business for a minimum of five years. A well-established organic franchise will lessen your risk and you'll have the benefit of other entrepreneurs that have great strategic business plans you can utilize. Research, browse the franchise documents very carefully, and get introduced to these owners which are in the industry. If you carry out all those prior to signing any contract, your chances to achieve success are pretty much guaranteed.

Hand in hand with specialist publications and websites, franchise exhibitions are a useful addition to your franchise research arsenal. After all, when else will you get the chance to meet and compare the head office teams of so many franchise brands in such a short space of time?

Although franchisor attendance of exhibitions is on the decline as franchisors switch their funding toward web and print-based recruitment drives (only 21 per cent of franchisors rate franchise exhibitions as the most useful method of recruiting franchisees according to the 2005 NatWest/British Franchise Association UK Franchise Survey), the forthcoming National Franchise Exhibition (7th-8th October at the NEC, Birmingham) still expects to draw in excess of 250 brands. These companies operate in fields as diverse as quick service restaurants, high street retail, health & fitness, lettings & estate agency, driver hire agency and domestic & commercial cleaning.

Each of these brands will be spending thousands of pounds to set out their stall to potential franchisees. In addition to the cost of booking exhibition stand space, exhibitors have invested capital in creating a highly colourful and branded stand, devoted time, travelling and hotel expenses to moving themselves and their staff to the event for its duration and possibly commissioned a promotional campaign in the national and franchise press to publicise their involvement. All this investment creates a highly charged and competitive selling atmosphere, with the onus on the staff manning the stands to achieve the franchisor's ambitious targets for the number of prospects conversed with and registered for further contact.

This pressured environment can be intimidating, so keep in mind your goals: to identify a number of promising opportunities that deserve further investigation after the event and to meet and gain an impression of the management of those franchises, all the while retaining a level of detachment sufficient to avoid being swept up in the hype and enthusiasm. Franchise exhibitions should be treated as part of your franchise research, not the whole, and wise visitors will set aside a whole day to visit as many stands and talk to as many franchisors as possible. By approaching the event with a strategy, perhaps sitting down with a copy of the expo catalogue when you arrive and identifying your 'must sees', you'll have a better chance of coming away from the event satisfied that you have gained an accurate picture of the range of opportunities you want to explore. A full calendar of UK and international franchise exhibitions has been compiled by the franchise consultancy FDS and is available on their website: http://www.franchise-group.com/exhibition_calendar.htm

THE TWO-WAY INTERVIEW

Meetings between franchisors and potential franchisees are often described as two-way interviews, and this is the best way to approach franchisor exhibitors. You are both gauging each other's potential as a partner in a franchise relationship, and you must strive to maintain a balanced approach to the meeting.

On the one hand, you are attempting to discern the details of the franchise and the philosophy of the management team from your meeting, which may not be with a member of the management. Arm yourself with a list of questions before the event to ensure you make the most of this opportunity - an excellent crib list of questions is The Franchise Magazine's Franchise Guidance Checklist.

On the other, the person you are talking to is charged with evaluating you. Do you have the capital investment that you claim? Do you have what it takes to operate the franchised business, and conform to the corporate values of the concept? Are you capable of making the decision to invest or unlikely to commit? It is possible they may misread your intentions and not class you as a genuine prospect, in which case they'll be quick to ask you to fill in a registration card for possible follow-up after the exhibition and seek to devote their time to meeting with more promising stand visitors. If your interest in the opportunity is sincere, make this clear and request that you receive the attention your serious interest deserves.

BFA ACCREDITATION

Many exhibitions reassure visitors that all exhibitors are vetted by the British Franchise Association (www.thebfa.org). However, companies that sign up to participate in the event too late for the proper checks to be made will be classed as 'Accreditation Pending', while 'Provisional Listing' status is conferred upon franchises that may still be at the pilot stage.

Make yourself aware of the levels of BFA accreditation (see box, right), and the level of accreditation of each brand you speak to, but don't rely on this status to the detriment of your own research.

The BFA itself recommends that "you still have the responsibility to undertake your own research on the substance of the proposition and your suitability for it...it is not a substitute for your own research."

SEMINARS

Most exhibitions run accompanying seminars to educate visitors. Subjects such as 'An introduction to franchising' and 'How to franchise your business' are covered, usually lasting the best part of an hour. It is up to you to decide how your time is best spent, although anyone who has read more than a couple of editions of The Franchise Magazine will learn little new information.

KEEP YOUR CHEQUEBOOK CLOSED

Most franchisors view the return on their investment as a significant amount of registered interest in their opportunity - a list of leads on which to follow up, with a percentage 'converting' by investing in the franchise.

Certainly no franchisor should be seeking to sign franchisees up on the exhibition floor, and you should consider any attempt to get you to sign a franchise contract or signal of intent document as a highly dubious practise - one which could signal a franchisor keen to avoid too much investigation into its track record, or one that is desperate for the franchise fee to shore up a dodgy financial situation.

COOL OFF

Approached properly, franchise exhibitions represent valuable and even fun opportunities to gain access to the people involved with the franchises available and secure the information you need to properly consider the opportunity being presented. By the end of the day you'll be returning home with a couple of plastic bags full of brochures and promotional literature, which you can read through during your cooling off period. Combined with the research you have carried out on the internet and through reading The Franchise Magazine (www.thefranchisemagazine.net), you should now have enough information to begin identifying the opportunities that most interest you.

Starting a business is a daunting task because it requires huge investments. There will be high risk in this type of business; chance of loss is very high. Financial risk is reduced significantly in the case of starting a new franchise business. Cost of starting franchises are very low, resources needed for running the business is minimum and can be reduced even more. Finance Select UK franchise is only £6595 for example.

There are many franchises in UK, Trash Express, Clean Machine, Finance Select are just some that are advertised on the Franchise Select UK website. Some are low cost and some are high cost franchises. While considering the franchises in UK, there are various things to be taken into account.

Go for a franchise that has proved its place in the market and is a highly reputed one. Check whether the franchise is following the rules and regulations imposed by British government. Franchise should follow the rules of British Franchise Association. Discuss with the people who are already running the franchise and find out their way of operation. Study whether the franchisor is interacting with them for improving their business. For example, Trash Express franchise or Clean Machine franchise, you can spend a day with one of the current franchisee's to see how they work on a day to day basis.

Find the cost needed for building up the franchise and also the resources required. Make a note of monthly charges imposed by the franchisor. Franchisor may charge for several issues for example charges for advertisement, charges for supplying the goods etc. Also there are certain franchises that don't charge fee's, but charge for goods or services, like Trash Express you will only pay for bags and bins which you need to buy anyway. Clean Machine you only pay for cleaning materials, again which you need. All these and many more franchises can be found on the Franchise Select UK website.

The main thing is the franchise agreement; there should be a standard legal agreement between the franchisor and the franchisee. All the agreements made should be rechecked by an experienced person in the franchising field.

There are various franchises that can be operated easily for example Clean Machine franchise, Finance Select UK, which can be run by a single person. There are even bouncy castle franchises like Bounce World which can be run from home by just one person.

Companies who opt to grow their businesses through franchising are increasing in number every year. Equally growing, is the number of people who want to own their own franchise, revealing that franchising is not only a viable option to owning your own business, but is often times a very lucrative one. Here we'll specifically examine oil franchises and discuss important questions to address during the evaluation process of becoming a franchisee.

Oil Change Franchises: What Are They, and Why Think About Buying One?

As long as people drive cars, the oil change franchising business will remain a non-seasonal industry that will always be in demand. If you've never heard of oil change franchising, the concept is simple. It allows you, the franchisee to operate a well known oil change franchising business from a larger company, or franchiser. In other words, you get to operate your own oil change franchising company that already bears a reputable, well know name.

Considering the Factors

Profitability - The first question many naturally ask is, "how much money can I make with an oil change franchise?" The answer to this is of course dependent on a number of variables, but in general, a franchisee in any industry shouldn't expect to make much until the second year. You can find a range of incomes listed in a "UFOC" or " "Uniform Franchise Offering Circular" provided by most franchisers, but the best way to get an idea of how much potential there is with any oil change franchise is to meet and talk with their various locations. The success of your particular franchise will in part be determined by location, marketing and your personal level of commitment to making profit.

Required Investment - It is crucial to obtain as clear an idea as is possible of what upfront costs will be required in operating your franchise until it generates profit. The UFOC will help you to generally estimate these figures; however, speaking with as many current oil change franchisees of several different franchisers will be the most revealing. Some franchisers such as Quick Change Oil offer financial assistance as well as assistance with site selection, operation and marketing. Evaluating various oil change franchises on the basis of the quantity and quality of this support is equally important as looking at the initial investment.

Financing

Funding protocol is generally applicable across the board and is typically non-specific to oil change franchisers. Potential financing options include:

Regular bank loan, usually secured with collateral such as home equity

SBA (Small Business Association) loan

Business Partnering (Eliciting partnership with a investor who has the monetary means to cover start up costs)

IRA or 401k withdrawal. There are companies who assist with drawing upon these funds without penalties, for purposes of buying a franchise.

Friends and Family Loans

Most franchisers and banks do require that you cover at least a portion of the upfront costs in cash, which is known as "having skin in the game."

Financial Strength

The financial strength of an oil change franchise is an important, if not obvious criterion during the research phase of becoming a franchisee. A franchise company that is in stable or prosperous financial position is poised to devote more time, money and over all assistance to its franchisees, and will be more able to support its long term survival. A financially sound company can provide resources to aid with branding and with making modifications and improvements to overall operation.

A company's financial success speaks not only to the increased resources it may be provide you, but to the popularity of the company brand; its effectiveness in generating sales and profit. Your franchiser should be able to provide financial statements, but don't be afraid to seek council if you need help interpreting them.

Many, many businesses owners have found success in the oil franchise business. But remember, when it comes to making a decision between opening an independent business or buying into a franchise system, you can only estimate so far. To make the right decision, you'll have to take stock of your personality, including risk tolerance, ambition, working and learning style.

Buying a low cost franchise is a good option for those who do not have surplus capital to buy and set up a large franchise, as it needs a lot of investment in terms of fees, real estate, marketing, merchandise etc. Low-cost franchises require low initial investment of less than Rs 10 lakh. So aspiring entrepreneurs who were in a quandary due to lack of finances can take a breather and relax.

Franchising offers variety in low-cost franchises

With the evolution of franchising to its present stature, many companies have adopted the franchise route for expansion. Even small businesses which were earlier considered inapt for expansion have taken the franchise route and have tasted success in their journey. Kiosks are the best way to enter franchising in the low-cost way. Apart from taking a kiosk these are the best segments to enter franchising with low investments.

Food industry

F&B industry always gives an impression of a hefty investment for taking any franchise. However this can be quite misleading as there are few segments in this sector which require less than Rs 10 lakh investment. These are:

Juice bars and café bars:

Juice bars are becoming the in-thing with consumers becoming more health conscious. Tropical Sno, Mr Orange, Tornado Cocktails, Juice Lounge etc are some of franchised juice bars which come under low-cost. Similarly café bars have become popular with more and more people preferring to have coffees and talk. The coffee culture is sure to increase in the future as well. Brewers, Coffee Day Xpress, Cupo' Cofe, Café Desire, etc are few franchise in low cost section.

Bakery and confectionery:

This segment also offers great avenues in fetching high profits. Brands like, Waffle Express, Chocolate Graphics, Sweet World, Muffins Bakery, are some low cost attractive options under bakery and confectionery.

Ice-cream parlours:

Kwality Wall's, MiniMelts Ice-creams, Baskin & Robbins, Royal Ice-cream, Gelato Vinto etc are few some of the popular frozen desserts franchises.

Business Services

Business services also provide a low-investment and high- profit opportunity. Franchising in this sector is growing tremendously. Few segments are given below:

Financial services:

As long as people continue to spend money, they'll need financial services providers to manage finances for them. Financial services franchises are the perfect opportunity for agents, brokers and real estate dealers.

Courier Services:

The typical feature of courier service includes doorstep booking, customer convenience and security of each and every consignment that has been entrusted to it. Jaguar Couriers Franchise, Blazeflash Couriers, etc are some of the franchising companies under this category.

Cartridge refilling: In the modern age of I.T, there is a constantly growing need of cartridge re-fills. A cartridge refill franchise offers to its user's quality refills at a fractional cost. Current industry trends and future projections suggest that printer cartridges demand will continue to multiply at a very fast pace. Cartridge World, Cartridge Café, Cartridge Xpress are some of the good low-cost franchise options.

Consumer Services

Services like, dry cleaning, matrimonial alliances, tour and travels fall under this category.

Dry cleaning services have come under the fold of franchise business in the last few years, and some franchisors are: White Tiger, Wardrobe Franchise etc.

Matrimonial sites:

Matrimonial web sites like Shaadi point and Shadilagn are getting increasingly popular these days, and are offering franchise at low cost.

Travel companies:

With the economic upliftment of the common people in last two decades, the tour and travel industry has witnessed a phenomenal growth. Some of the franchisors offering low cost opportunities are East Trip Planners, Mahindra Holiday & Resorts, Arzoo.com etc.

Retail franchising

Retail sector is another low cost franchise option for aspiring franchisees.

Artificial jewellery:

It can be the best alternative to precious jewellery, if one has the interest in it. Trenz, Dia Gold, Silver Maya etc are some costume jewellery franchises.

Florist is another category calling for low investment. Ferns n petals, Florists, Fiore and many other companies are offering opportunities in setting up a florist franchise.

Before opting for any of the above options, clear all your doubts. Apart from your initial investment, take into account the ongoing costs that must be paid to your franchisor, including franchise royalties, marketing fees and other required purchases. After you are convinced go ahead and make your mark in the franchising arena!

Franchise opportunities can get you on the path to being self employed, but in a way that you're not going it alone. Compared to starting a business from the very beginning alone, that's a huge plus. Let's have a look at some of the more obvious benefits of going into a franchise agreement, and why franchises are an appealing option for a great number of small business owner, and exactly why people feel that franchising is a great option to get individuals on the path to business ownership.

Franchising really offers a great deal of very valid benefits for those with a desire to enter the small business marketplace. If you're thinking that franchising isn't an option for you, perhaps consider the benefits before you decide. You might just be turning away your best bet for success.

Perhaps the key benefit in franchise is a proven business strategy. A franchise typically offers business owners a solid and already tested means of doing things- a plan, a strategy, that has already been working, already has the numbers to back it up and has shown to be successful. Most franchises have shown that they are perfectly able to show profit over and over. You'll need to look into this to confirm whatever potential the franchise you are looking into really has, but most franchise companies make it because they have that ability to make sure that their franchisees can turn a profit.

Following that, though, name recognition is another important benefit in purchase of a franchise. Franchises usually afford business owners this already known name, and usually, with an independent business it may take years to get that kind of recognition, and even when they do- consumers may not see them as the lead dog in the pack. Franchises usually are able to give franchisees the benefit of already having an established, recognizable name with a good reputation behind it. It may not always be the case if the company is new to the area, however, being able to show that the franchise has a great reputation in other areas- testimonials and the like, that can also circumvent this. Many franchises have such quick growth that often, this is the case.

These are just the two obvious benefits to buying a franchise. You also may consider that most franchises have established supply lines, a built in support system that usually encompasses training and education, and existing policies that have helped their system run smoothly. More often than not, a franchise will offer on going innovative training for improvements to the system that they make, they will offer their existing franchisees options before they put them out to new franchisees. There are a number of reasons why someone would choose a franchise over an independently started up business, and really, having a look deeper into the franchise option for business ownership can help you to make a much more informed choice.

Starting a franchise is a serious decision. The choice must be well thought of and not random. It is important to take the right step and not have regrets later. So as a business entrepreneur take the right decision by:

1. Finding out all about franchising. Surf the World Wide Web and read as much as you can about franchising its benefits as well as pros and cons. Read magazines and books on franchising too.

2. Researching on the different kinds out franchises in order to choose a franchise that you will enjoy. Any enterprise must give fulfillment and joy just as a writer cannot work on accounts similarly a business entrepreneur must choose to run a business that he will thrive in.

3. Find out what skills are needed for the business you are interested in. never choose a business or model because it is in vogue. Ask yourself:

a. Am I qualified?

b. What is the reach of the product and will it be needed 10 years from now? Think sustainability.

c. How big is the market and what the projected growth potential is?

d. Is the chain local or global in reach?

e. Do the products have universal appeal?

f. In the field how many different franchises are there?

4. Once you have located an industry of choice. Weight your options carefully by studying the pros and cons of every franchise group in the industry. Most industries like say coffee have at least 4-5 successful franchises operating.

5. Contact each franchise and request for information packs. Learn the history, about the successes and failures, the products and services, expansion plans, turnover etc.

6. Meet more than one franchisor in your field of choice. Think did I like them and their attitude. Would I like to be a part of their operations? Did they treat me with respect? Will I fit in their organization?

7. Once you have narrowed down your choice to a single franchise make the effort of doing a thorough back ground check. Find out about the shareholders, directors, financial health, whether they follow the Franchise Association's Code of ethics. And whether fair business practices are in place.

8. Take the professional expertise of experienced franchise accountant, lawyer and bank. Prepare a solid business plan. Weigh the pros and cons of finance options. Get the lawyer to read through the companies franchise agreement and ensure that your rights are protected.

9. Before you sign an agreement survey your locality to find the ideal spot to set up your business.

10. Think about whether you want to start a fresh franchise or purchase one that is already running and up for sale.

Take decisions professionally. Consult your family too! Begin your life as a business franchisor on the right foot and work towards running a healthy and profitable business.

The choices in franchise based businesses has grown and now you've got more choice than you could possibly imagine a few years back and the most popular of these franchises are the home based ones. These franchises are looking to expand and that means they're up for sale for anyone looking to be their own boss or work from home and a lot of big time names are included in this list. It's safe to say that the time of fast foods being the only way to own a franchise are long gone.

Of course just because you're running a franchise from home doesn't mean you won't have to deal with anything, as long as you're doing business, you're going to meet a lot of challenges and facing them is the only way to guarantee your franchise's success. Owning a franchise however does give you two huge advantages, you know what works for that business and what the proven ways of getting a head are and then there's the support you get from the franchisor. The safest thing about any franchise is the guarantee that they're built on a proven and successful business model.

Not all challenges faced when running a home based franchise are business related; some have a lot to do with the technology you will use. It may surprise you to learn that technology is becoming the way to run most businesses which has led to an increasing popularity in home based franchise ideas. Working from home has become a more practical option with the idea of an internet based franchise. It's enabled a franchisee to not only get all the benefits of working from home but also earn more than they normally would've performing online services. In addition to internet based franchises, there are also lots of franchises that offer online training. This makes it easier for aspiring franchisee to learn the ropes of the new business from the comfort of their own home and at their own learning level. Different franchises that are working online are support franchises, tutorial franchises and marketing franchises.

One of the more popular home based franchise idea in the market is the cleaning franchise. A lot of cleaning businesses are being run from the comfort of home and finding one is easy. Contact a local cleaning business and inquire about open franchise opportunities in your area.

A home based business has a lot of advantages and now it's become a lot easier to find a franchise that suits your needs. A home based franchise means you get to spend more time with your family and you work for yourself. As opposed to starting your own business and building it up from scratch, a franchise gives you an established and well reputed business model which makes it easier to build your identity in the market. A little research about different franchise ideas will help you pick out what will work best for you.

Working out the validity of a franchise is a major part of your selection process when choosing a new franchise. A good way of looking at the sustainability of a franchise opportunity is to look at the financial history of the franchise company. Looking over the disclosure document that a franchise company has to provide, by law, is a good starting point when looking to buy a franchise. In this disclosure document it ought to outline the financial history of the company including its financial status and audited statements from previous tax years.

It is fairly obvious that investing into a new franchise that is financially unstable is a massive risk as the franchise company may go out of business or go into bankruptcy after you have invested your money. The new franchise may be exactly what you are looking for in terms of location, industry and market but the franchise opportunity needs to be managed correctly and be financially stable in order for you to make a return on your investment.

To make sure you have the all the information about the new franchise you must hire a solicitor to go over the fundamentals that are included in the franchise disclosure document. The solicitor will go over the financial statements that should be included in the document and will give you an accurate reading if you should buy a franchise from this company. If you cannot afford a solicitor and have experience in business then you may only need to look over the statements yourself to get an accurate reading of the franchise companies position. Getting good solicitor advice is highly recommended though as much of working in the disclosure document may be worded to benefit the franchisor and from a biased point of view.

A good solicitor will be able to clarify if the franchise opportunity has a steady growth over the past few years of trading. If the growth has stagnated therefore the opportunities are becoming less and the possibilities for your new franchise will also be less. The franchisor should have a business plan for growth of their franchises, this will be established by the franchise disclosure but it can often be misleading so check the growth against the actual statements from previous years to establish the truth about the options to buy a franchise.

The solicitor or yourself should be able to establish if the franchise is making most of its income from the sale of new franchise opportunities or the ongoing royalties generated by the franchises. The financial statements will have evidence of this. If a franchise is solely relying on the sale of new franchise opportunities then the longevity of the franchise company will be short, as the amount of franchises sold cannot continue year on year. There should be an equal balance between franchise royalties received each month and the generation of new franchise opportunities.

If the franchise statements state that the franchise company is putting back into the new franchise options then this will be a good sign that the franchise is helping the new franchises. This will include initial training, sales and marketing, business support and product advice. A good franchisor will always be available to support the franchisees with their knowledge and experience as well as financial help.

When you decide to buy a franchise make sure you have looked into the financial history of the company before you invest. A good franchise will be transparent about their earnings and potential over the forthcoming years. Hire a solicitor if you do not have the experience and they will be your safety net if the franchise company turns out to be too much of a risk.

In the realm of franchising there is a distinctiveness wrapped around a very tangible air, on comprised of three elements: opportunity, entrepreneurship and prosperity. This multifaceted franchise air is plentiful and blows about constantly, never ceasing to skip or brush against a few fresh faces, turning a good portion of them, no doubt, curious and quite inquisitive as to what franchising has to offer.

It's a blustery business sphere to be in the midst of, and, what wind circulates there, is refreshing as it has touched many an individual and inspired them to claim their own spot in the entrepreneurial-driven franchise world. Namely, those who have felt the franchise breezes and been effected along the way are both businessmen and businesswomen, normal everyday people, entrepreneurs and even retired persons. Of all these aforementioned individuals, it's guaranteed that most, if not all, are currently quite successful and reaping the bountiful benefits.

What Exactly Is "Franchising" - What's It All About?

Franchising is, simply put, just one method or means of distributing products and/or services under an established or up-and-coming brand name. Structurally, franchising is leveled based on the individuals involved. Any franchise system is composed of both the franchiser and the franchisee. The franchiser in such a setup acts as the lender, providing a trademark, trade name or business system. On the other end, the franchisee is the individual whom pays royalties or initial fees for the right to conduct business under a specific franchiser's name and/or system.

What Types of Businesses or Services Become Franchised?

One of the most beneficial aspects of franchising is it's broad, yet rather selective nature, simply attributed to it's comprehensive variety. Literally, any type of business form imaginable lends themselves toward franchising efforts. If you have prior notions of what franchising is or what it encompasses, think again. Step beyond the standard swift fast food and restaurant franchise staples most everyone in accustomed to seeing. Think, well, of anything and everything. Don't limit yourself; franchising itself certain hasn't.

Franchising is now catering to all business forms. Options for franchising now commonly branch out to such options as eclectic and varied from dating services, security services, maid services, automobile services, travel agencies, printing and copying services, computer services and so on. The options in franchising are almost endless, which is great, especially if you're particular and a bit picky about what type of business you want to start running in the franchise world.

Franchising Inquiries - Investing Time and Money

Of course, to reap the benefits of any type of franchise what's required is some form of investment, both in terms of actual time or raw money. Typically, overall costs will vary based on the industry and type of business you're looking into with totals ranging anywhere from $20,000 (or even less) all the way up to $1,000,000. If you're an entrepreneur with a budget and just looking to start out - getting your franchise feet wet - then be prepared financially to put out between $10,000 - $40,000 for franchising rights and fees for your first move. To hone in on and get exact numbers to work with, contact the individual companies of interest to discuss opening costs and initial fees.

Franchise Your Business: What do you need to launch a new franchise system successfully?

In order to franchise your business, there are several elements to a franchise development program which must be in place prior to launching a new franchise system.

1. A good business plan that itemizes the key elements of the franchise expansion model and how the franchise program will take shape. The plan should be as realistic as possible and take into account conservative growth and higher costs than expected to support the franchisees.

2. In order to franchise your business effectively, you should have a good understanding for the marketplace, and the franchise concepts you will be competing with. Know there fee structure and key points to sell against when speaking with potential franchise buyers.

3. A solid understanding for franchise law and a well drafted UFDD are critical to the ongoing success of a franchise program. These documents are not only required by the FTC, but also by many of the states and provinces you will be selling your franchise throughout.

4. To franchise your business, you should have well documented operating systems and procedures that can be taught to a franchisee effectively. The franchise operations manual should protect the franchisor from liability and provide the franchisee with a valuable reference tool.

5. A franchise marketing program that generates leads effectively and efficiently is the final piece of a good franchise development program. Create a good value proposition and deliver it with a punch. Potential buyers need to get the message immediately in order for you to effectively sell franchises.

6. In order to successfully franchise your business, there is one critical variable that should be in place that allows you to leverage throughout the sales and development of your franchise. The "IT" factor, your business either has it....or it doesn't. What is it that separates you from others in the industry? Why should someone pay you a fee for your idea and concept when they could start a business on their own? Good franchises have a great selling proposition, something that can be leveraged and offered to a franchisee in another part of the country. Either you've got a great new idea or a better mousetrap, but you need to create a compelling reason for someone to join your company with their investment in a franchise.

Franchising can be related to the options market in some ways. It is a leveraged expansion model that scales a business system. If there are problems or cracks in the system, the replication of this model will only reproduce negative elements of your business. Have the system figured out and the "IT" factor in place before you franchise your business.

Franchising opportunities provide one of the most dynamic concepts of entrepreneurship in the modern era. It is considered by many as the supreme antidote to the financial security of an economy where the franchisees and the franchisor, both win. The benefits of this unique combination are then transferred to the public. Commercial cleaning franchising offers a unique opportunity to focus on one of the most overlooked segments of the society.

Commercial Cleaning Statistics

The commercial cleaning industry holds over 100 billion in contracts and operates 25,000 franchised units and more than half a million small operators. A cleaning management survey in 2004 revealed that the office buildings account for almost 53 percent of the total commercial cleaning industry. Other cleaning sectors get an even market share that includes residential, school, stores, hospitals and hotels. According to a recent survey by the US bureau of labor statistics, service providing industries will supply 96 percent of the wage paying jobs during the next five years. Similarly, job outlook for the industry is positive for the next decade. Janitorial and commercial cleaning services will be among the fastest growing sectors.

Famous Franchises

There are many good commercial franchises to choose from. Jani-King is the world's largest commercial franchise with over 12,500 franchises in 120 countries. It was named as the 3rd low cost franchise and the 7th fastest growing franchise, among all franchise companies, by the entrepreneur magazine. In fact the magazine has rated it the number one commercial cleaning franchise, nine years in a row. Apart from the giant, Coverall is another great commercial franchise. It has seen incredible and constant growth over a long period of time. In fact, it is the fastest growing large commercial franchise in the United Sates. The company has over 9000 franchises serving 50,000 customers.

Advantages of a Franchise

Whatever you do and whoever you choose the advantage of owning a commercial cleaning franchise is that you are buying an idea that is already successful. You should know that the management and the support are ready to help you and small business loans are readily available for franchising opportunities. It is a fact that franchise businesses don't falter easily. Historical studies from SBA have revealed that only 5 to 6 percent of the franchise business closes in first year as compared to 62 percent new businesses.

Your Options

The very first thing that you should do when buying a commercial cleaning franchise is to collect the terms of agreements from the perspective franchises. Due to the high insurance and costly lawsuits, a few franchises charge their operators a hefty annual fee. You should also take your time and visit the facilities of the franchises. It is also important to visit the head office and interview the representatives. Note down the qualities and drawbacks of every franchise. Evaluate each cleaning franchise and then compare it with your intended goals. Another important and probably the most essential aspect to consider, when looking for a commercial cleaning franchise, are to look for a brand that has the most marketable image. When it comes to commercial cleaning, institutions and offices prefer a relationship with a recognized leader in its area. Happy hunting!

It is a lifelong dream for many to be their own boss and own a business. However, running a business can be very challenging and financially risky. Finding the right franchise that fits your personality and lifestyle can reduce the risk and make the dream of owning a business come true.

To understand how a running a franchise business can work, you must first understand what it is. A franchise is a business agreement where an individual purchases the right to use a company's name and sell the company's products or services. The company, or franchiser, retains the right to set guidelines and standards that you, the franchisee, must meet. Failure to comply with the company standards will result in the individual losing their rights to the franchise.
There are many successful franchise businesses available to potential proprietors. A major advantage of franchising a successful company is that they have already established their brand, advertising campaigns and have tested products and services. They know how to succeed, and have already eliminated any mistakes. A person entering into a business on their own must go through all of these pitfalls before any success can be measured, but a franchiser has already done the startup work for you and found a business plan that is profitable.

You ask yourself some very important questions before you enter into a franchise agreement with a company. Do you enjoy the freedom of testing new ideas and business models or would you rather stick to a proven track record or success? Remember that owning a franchise business means you must stick to the business plan of the franchiser. How much money can you afford to spend? It costs a lot of money to get a franchise running, and there is never any guarantee for success. Often times, you - the franchise owner - may have to dip into a reserve savings in order to pay your bills and maintain payroll.

Are you willing to work long hours? Owning a business requires you to be ready to tackle any problems that arise at any time of the day or night. Owning a franchise business is no different. It is not uncommon for a franchise owner to put in 12 or even 16-hour days, especially in the beginning. A franchise owner must take on multiple responsibilities, including human resources, marketing and accounting. Make sure the dedication a franchise requires is something you - and your family - can handle.

Find a reputable franchise consultant to help you narrow your focus and find the business that is right for you. A franchise consultant will be there to answer any questions you may have and help you navigate through the uncertain waters of franchise ownership. It can be overwhelming when trying to decide what franchise would be the right fit for you and your family. A franchise consultant will provide you with the research and support to help you make an informed decision and offer guidance in quest to become a successful franchise owner.

With any investment it is always wise to have a good estimate on the expected return on that investment (ROI) before making any actual monetary commitment. Franchising ventures are no exception to this general rule. In fact, when considering whether or not to buy a franchise, this projection because even more valuable to the potential investor.

Unlike investments into real estate or stocks, the decision to buy a franchise entails not only a substantial financial commitment, but also demands a great deal of time and energy on the part of the buyer. Any speculated return on investment should account not only for the amount of money invested into the business, but also compensate for the time spent establishing and running the business. As such, for a franchise to be viewed as potentially successful the expected earnings from the business should be significantly higher than the returns from a similar financial commitment to a passive investment.

It is important to understand that, when purchasing a franchise, higher initial investment does not necessarily translate into higher returns. A great deal comes down to the ability of the owner to effectively manage the franchise and the marketability of the franchise in the purposed area of business. For example, if the community consistently prefers hamburgers, then no amount of money invested is going to move fried chicken. Conversely, if the hamburger market of the same fictional locality is already fairly saturated, it's going to be very difficult to attempt to edge into the market.

When deciding to explore the earning potential of a particular franchise, there is some very basic and very important preliminary research to be performed. An excellent first step is to request a copy of the company's Franchise Disclosure Document. As a general rule, these documents relate information regarding the earnings of various franchises across the geographical boundaries of the franchise organization and can help in projecting an estimate of ROI for the area proposed for the purchased franchise.

The Franchise Disclosure Document will also give information regarding current and previous franchise owners. Conversing with owners within the region that the buyer proposes to do business, as well as owners in similar regions, can offer great insight as to what sort of return on investment can be expected. These same franchise owners can also form a backbone of a vital and invaluable support network for the new owner.

As mentioned above, another major factor in a franchise's earning potential lies in the owners own capabilities to effectively run the franchise. It is always wise to seek out a franchise that utilizes previous experience and existing skills. A person with an extensive background in restaurant management is obviously going to fare better as a restaurant owner than as a gas station owner.

Above all, it is important to keep realistic financial goals in determining what franchise is most suitable. Taking into account the market in the proposed area, the earnings of franchises operating in similar locations, the time required to operate the proposed franchise and the owner's ability to run the franchise in an effect manner can provide a good estimate of what one might expect to see in the way of return on the investment made into the franchise and the overall viability of the business.

The Franchise Cost Can And Will Determine The Duration Of Your Time In Business

There are several key factors when looking at the initial franchise cost of any business. Determining your investment will be based on your specific goals with that particular business model. Knowing the amount of marketing costs, initial business setup (materials, equipment, inventory, staff, insurance, etc.), your competition whether local or virtual, and most importantly the ROI (return on investment).

An initial franchise cost can set a new business owner for a fast return on their investment or a possible positive return on investment that can be delayed for years to come.

Unfortunately, the current economic situation that not only this country is struggling through but every other country in the world as well, also has a determining factor in a duration and profit margin of any young franchise. But there are some industries in which their initial franchise cost is still considered to be in the profitable range with an even better ROI than traditional franchise models.

Let's go over a few.

A Franchise Cost Comparison Of Several Popular Industry Models

The following is a short break-down of just a few business models ranging from highest franchise cost to the lowest. The first is:

• Fast Food Franchises - While most individuals as diving into fast food purchases more often that the typical restaurant, the thought of investing into a McDonald's, Burger King, and maybe even a Dunkin Donuts franchise can seem as a lucrative franchise to invest in. But consider this, the typical fast food chain restaurant will cost on average between $80,000 to $100,000 initially. While still in the budget of a franchise cost for most small business owners, the chances of finding available capitol and investors willing to invest their funds in a down economy are extremely difficult.
• Typical Restaurant - Whilst still remaining in the average franchise cost of $80,000 to $100,000 to begin, the difficulties increasing maintaining a profitable business. Long business hours, fast paced environment, tons of staff members, not to mention the high cost of operations to maintain a restaurant in proper order with health code regulations, the franchise cost continues to increase. Not to mention that seeing a positive ROI averages between 7-10 years, while research as been done showing that the average business only remains open for 3-5 years. Something to truly consider!
• Department Stores - Even though the average person will always make the time to visit a department store considering having a tough personal financial situation, the cost of maintaining a department store's inventory alone can be a bit overwhelming. Not to mention that the start up franchise cost can reach the $1M mark. Ouch! Staff costs, utility costs, and business expenses can reach undetermined heights in which even the greatest of department stores have been unable to maintain. Circuit City stores are a great example. As a kid, I remember visiting numerous Circuit City stores to only recently learn of their filing of bankruptcy. Yet another to see the hardships of this economy is Ashley Furniture Stores. All but a few are left and not too long from now, there won't be any left. Truly sad considering I purchase ALL of my furniture from Ashley's.
• Virtual Business - As tough as it may sound to some small business owners, the virtual world is among us. From browsing the web on your PC or MAC, to browsing online using your smart phone, most new customers are being made via the use of the all-powerful internet. Taking into consideration an extremely low franchise cost (averaging between $2,000 to $20,000 depending on the type of top-tier business), the unlimited reach in attracting customers and building a loyal following to your franchise brand is extremely powerful. On average, the most profitable virtual business models carry NO inventory, NO overhead expenses, NO large franchise cost, NO rent, NO insurance, and above all, the ability to set your business hours as you please. And even in today's economic crisis, the virtual industry has had very little from our financial crisis considering the franchise cost while the typical franchise struggles literally daily to maintain their doors open. Talk about stressful when you as a franchise owner has the responsibility of the financial downfall of those under you!

The Franchise Cost Is Not All That It's Cracked Up To Be

Just as you read above, there are several facts to consider into a franchise cost that can be extremely important and very dangerous if not thought through and researched properly. But is that all there is to owning a franchise?

Obviously not! The most important cost factor to consider is the actual physical time you will be devoting to building that particular franchise.

As an entrepreneur, you most likely already realize the amount of dedication you'll need to create a successful business. But knowing and actually implementing that devotion, 16 hours a day, sometimes 7 days a week, can be a bit overwhelming both physically and mentally.

Above all this is exactly why I personally, as an entrepreneur, placed this as my largest center of focus and could not fathom having to remain away from my growing family for that long period of time. I placed my investment into the virtual online business model and I suggest you do the same.

For a view and more information on the low franchise cost business model that has built hundreds of successful business owners throughout the world, visit the link below.

All franchises must meet the legal definition of a franchise no matter what they call it before it is an actual franchise. This is the Federal Trade Commissions take on the franchise rule. It is not illegal to call a company a franchise even if it is not one and if it is not it does not have to follow the rules. In this opinion of law, I do have a quick summary of thoughts for the Federal Trade Commission Franchise Rule Making Group:

So what you are saying is that even if a company calls what they do a franchise, it is not a franchise unless it meets the test. And if meets the test then it is a franchise no matter what the parties call it?

Well then Al Queda, which is often called a franchise in our national news, which is operating in the United States, actually is not a franchise and therefore does not need to disclose anything or any information. Yet all the legitimate businesses, which are franchises must disclose everything. Why not make Al Queda meet the definition of a franchise since they have similar training camps, collect fees and use similar handbooks, operations manuals and methods? Each international cell or franchise follows the same plans. If the FTC can make them fall within their definition; then the FTC can get a list of all their franchisees and the Federal Trade Commission can sue them to prevent attacks? Just like the Federal Trade Commission is doing with SPAM. Doing a lot of good there, let me tell you, with 2111 worth of junk mails today alone. Thanks for nothing. I want my taxpayers money back! What a complete disgrace and failure, is the Federal Trade Commission unfit to lead? Next question:

It appears the Catholic Church is a franchise but call itself a church. Operates using the same marketing plan to collect tithing, pays franchise royalties to the parent, even molests young children which seems to be a common theme and practice? So does this mean if Bob Smith owned a Motorcycle Repair Company instead of a car shop that it could become a church and franchise out and collect fees without being a franchise? "Zen and the art of..."

Although one might have problems with this argument since these examples are totally absurd, from a philosophical standpoint, one does have to ask the question? And perhaps even ask; why do we even have a franchise rule in the first place? Obviously it is to help other business models over the franchise model? So the Federal Trade Commission has a franchise rule to make it difficult for franchises to survive so other business models can do better? Yet it is now proven even with all this bogus over regulation franchising still wins as the most efficient model. I present these examples as so much of this report and those who commented are out to lunch.

Someone somewhere was afraid of how fast franchising was moving so we ended up with the franchise rule? That is not a sufficient reason to keep it. Especially with 105 complaints in a decade, 70% bogus meaning 26 complaints actual with over 350,000 outlets sold, show me another industry, which can show those types of figures? Well, show me, because I have been studying this and I can tell you none exists.

The Wal-Mart or Starbucks of the world have proven equally powerful and efficient to the franchise model, however much of their methods except for private ownership of units follows that of the methods of franchising. Now if we continue to limit franchising they will have no competition. The FTC claims to help competitive markets, yet it destroys competition rather than leveling the playing field; deny this.

The recent franchise report by the FTC and this discussion is pure unadulterated mental masturbation. Franchising is about win-win-win situations and solving problems in the marketplace, serving the needs of the economy, franchisor, franchisee, customer and even sometimes the shareholders. That is a good thing, if we argue over what is and what is not and try to define it one way or the other, we miss the point of why it even exists, it exists to extend brand name, save on capital outlay for rapid expansion and fill a niche in the market place where buyers and sellers come together of their own free will to partake using a unit of trade. Mr. Snow recently spoke about franchising and reiterated the President's message that "franchising means jobs!" How can you argue with that logic? Look at how many jobs are provided by franchising? Why would anyone want to over regulate the forward progress of all mankind and the value of the greatest business model ever created in the entire written history of our specie? WAKE UP!

You can make definitions all you want, you can redefine, re-write, argue, manipulate common words of the English language, but in the end all you do is limit the possibilities of the creative genius of those who seek and find niches to fill for the common good of all. Why are we doing this, can't we just reduce this burdensome regulation and let free will and free markets flourish? Why are we attacking small efficient businesses which turn to the franchise model for expansion? Meanwhile if you want to stop the Catholic Church from molesting children or Al Queda from hurting our country, be my guest, I hope you sue the crap out of them. Good luck. My question to everyone is what good is making definitions if it hurts commerce by sweeping in other businesses and industries into this never ending fold of over regulation and intense litigation? Let's use some common sense here please. "Enough Already!" Think on this.

1) Evaluate your tolerance for risk

Opening a new business is a scary prospect. There's a lot of personal, professional and financial risk to consider. It's natural when contemplating such a profound step in your career to look at ways to manage your risk and increase your chance of success.

The Small Business Administration conducted a survey that found 62% of non-franchised businesses failed within 6 years. A separate study by the United States Chamber of Commerce found that 97% of franchises were still open after 5 years.

The research conducted by these independent third party organizations clearly demonstrates that choosing a franchise business carries significantly less risk than starting a business on your own.

2) Work with what you've got

Making a list of your strengths is easy. But when launching a business, it's also important to make an honest assessment of your weaknesses.

Before you get to work selecting a franchise, take the time to develop a list that honestly depicts your strengths and weaknesses as a potential business owner. Then use this profile as a tool to help with the decision making process.

Ask franchise owners questions about the duties they perform, and compare the job requirements to your profile. If the business has the potential to be a good fit, the skill sets required to run the business will either be skills you already have or skills you can learn quickly. If this is not the case, it's best to keep looking.

If a certain aspect of a franchise has a steep learning curve but the business is otherwise a great fit, you may want to consider hiring someone experienced with that position. If this is the choice you make, be sure to include their salary and benefits in the financial business plan.

3) Remember to run the business

Many potential franchisees make the mistake of thinking they're limited to buying a franchise in their current field. In fact, this might be the worst way to go.

Some franchises will not allow someone skilled in a particular industry to buy a franchise in that industry. For example, a mechanic may not be allowed to purchase an auto repair franchise. Skilled technicians sometimes find the transition from hands-on work to management work difficult to make, and are tempted back onto the floor to do the job they're familiar with.

The problem with this is that you grow the business by running the business, and what a franchisor wants to see on the bottom line is growth. A business owner needs to be out networking, marketing and interacting with customers. If there's too much work on the floor of an auto repair franchise, then the owner - even if he's a highly skilled mechanic - needs to hire more mechanics.

Basic business skills are transferable to any franchise. If your current position involves universal roles like sales, marketing or accounting then your franchise options are practically unlimited.

4) No business is recession-proof

There's no such thing as a business that can't be impacted by a faltering economy.

There are, however, certain industries that are considered recession "resistant." These are generally products and services people can't do without no matter how much they're cutting the budget.

The good news is there are hundreds of great franchise opportunities in recession resistant industries. The following are just a few examples:

Top recession resistant industries: Food · Automotive · Healthcare · Medical·Clothing · Education

Recession resistant franchise industries: Fast food restaurants· Automotive maintenance, parts and repair · Weight loss and fitness · Resale shops and discount (dollar) stores · Education (tutoring) and child care

5) Objectively evaluate professional advice from personal sources

Friends and family have your best interests at heart, and their advice comes from a place of love and concern for your well-being. No one would suggest making the personal, professional and financial commitment to launching a business without consulting your loved ones.

But friends and family are not subject matter experts and their advice can - intentionally or not - discourage a new business venture. The people who love you worry about what could happen if you fail, and their instinct will be to protect you from the risk.

When it comes to the final decision whether or not to proceed with purchasing a franchise, of course you will carefully weigh all the advice you've received. The key is to rely most heavily on the advice offered by industry professionals.

6) There's no such thing as a free lunch

There are countless "free" franchise brokers and consultants out there claiming to offer unbiased information on franchise opportunities. They will work with you to assess your needs, and use your professional profile to help make recommendations on franchise opportunities that may suit you.

The problem with these services is that they get paid by the franchises for selling franchises. That means they are naturally only going to show you options they'll get paid for. And in the case of high profile franchises that may offer them 2 to 4 times the average commission, there's a real risk they may steer clients to those businesses whether they're a good match or not.

These broker services may have access to detailed data on several hundred franchises and they can be a great source of information. Just be cautious about their recommendations, and get a second opinion before investing your money.

7) Tune out the hype

Never before was the adage "if it sounds too good to be true, it probably is" more applicable. You're going to hear a lot of hype - good and bad - while assessing potential franchise opportunities.

Between marketing blitzes and human nature, it's easy for success stories to spread like wildfire. Think about the guy who lost weight eating Subway - that story is so pervasive it's become almost impossible to separate the allegory from the restaurant in the public's perception. The hype surrounding that marketing campaign will have an impact on potential Subway franchisees for the foreseeable future.

It's also natural for people to look for something to blame when things go wrong. Because of this there are also going to be negative, emotionally charged franchise stories in circulation. However, keep in mind the nuanced details that created such situations are never discussed; only the attention-grabbing outcomes.

No one is suggesting you completely ignore these stories, because hidden beneath the hype there are likely valuable lessons to learn. Learn from them what you can while keeping in mind what they are: unique situations with complex back stories that probably have no bearing on your success whether or not you choose the same franchise.

8) Look beyond the big brands

Sometimes it's easy to forget there are thousands of franchise opportunities out there, because the big name brands get all the attention. When you're in the early stages of your search, it's a good idea to bypass the overblown marketing of the huge franchises and make an effort to learn about the "no-name" franchises in your industry of interest.

There are quite a few advantages to lesser known franchise brands. For instance, they are often cutting edge concepts that can get a lot of marketing attention. Lesser known franchises haven't yet saturated your local market. And they're usually less expensive to start up, which means less financial risk.

Of course, you may be looking for the security and benefits that come with a big name franchise. Criteria such as national marketing campaigns, standardized employee training, management support and strong purchasing power may be at the top of the checklist for what you're looking for in a franchise, and there's nothing wrong with that. But if you're not interested in being another instantly recognizable box in another strip mall, then a 'no-name' franchise might be for you.

9) Look beyond the price tag

Just because a franchise is more expensive does not mean it will be more successful.

It's important to evaluate every aspect of a franchise - financial projections, monthly franchise fees, franchiser support levels, issue response time, customer base and marketing, to name a few. The price tag is a factor to consider, but should not be the sole criterion for evaluating the quality of the business opportunity.

Once you narrow down your preference to a particular industry, conduct due diligence on 2 to 3 franchises in that industry. Gathering adequate information on several comparable franchises will allow you to make an informed decision.

10) Comparison shop

Once you decide a franchise is right for you, keep looking.

If you decide to purchase a franchise of Coffee House A, then it's time to start looking for reasons not to buy it. Build a list of questions, and then go talk to owners of Coffee House B and Coffee House C.

Be blunt - ask the competing franchise owners why they feel their business is better than Coffee House A. Ask them what made them choose B over A and C. Ask them if they would recommend you buy the same franchise, and don't stop digging until you're clear on the why (or why not) of their response.

Build a spreadsheet comparing the details of the franchises. Include data such as the benefits offered, financial commitment required, estimated monthly expenses, commercial lease requirements and franchise fees.

If your franchise preference stands up to the scrutiny, then you're on the right track.

11) Contact current and former franchisees

The best way to find out if a franchise is right for you is to go behind the scenes and ask a lot of questions.

Before making a buying decision, prepare a list of questions. Contact at least five current franchisees and make an appointment to discuss your interest in the business. Whatever else you discuss, be sure to ask the questions you prepared.

Try to arrange an all day job shadow session with at least two current franchisees. This will allow you to observe the daily operations of your potential future business without committing to personal financial risk.

Contact several separated franchisees to learn about their experience. Understanding their reasons for getting into - and out of - the franchise can impact your decision.

12) Do your due diligence

All franchises are not created equal, and it's your job to sort them out. The information is out there - all you have to do is go get it.

Conducting due diligence on a franchise opportunity should include:

· Check with the Better Business Bureau for complaints

· Check with the State Attorney General for complaints

· Speak with the franchisor

· Request a Franchise Disclosure Document (FDD)

· Attend a discovery day with the franchisor

· Make at least 10 calls to current and separated franchisees

· Make appointments to meet franchisees and visit the operation

· Job shadow a franchise owner (or owners) for at least a day (longer, if you can)

· Repeat as necessary

The purpose of due diligence is to reduce your risk. All the steps are necessary, but the most important step is interviewing and job shadowing a current franchise owner.

Some franchise owners will allow potential franchisees to spend weeks at their business learning the ropes. They may be willing to share detailed financial data, and can confirm or refute claims made by the parent company. A franchise owner can answer questions the franchisor may be legally bound from discussing. You may be able to make assessments about your own management style or potential business location by observing theirs. Visiting operating franchises in the course of due diligence may be the single best method for evaluating your potential success with a franchise opportunity.

13) When the time is right, hire a legal and financial team

Getting expert advice on the legal and financial aspects of a potential franchise purchase is essential. Some buyers skip this step to save money, but this is not the place to cut corners. The relatively small fees a lawyer and accountant charge pale in comparison to the enormous financial loss you'll incur if the business fails.

Bringing in the legal and financial experts too soon in the purchase process can also be a mistake. Their professional opinions are necessary and valuable, but their advice can be expensive and potentially counterproductive in the early stages of your search. It's crucial to remember when seeking their input that they should not choose the franchise for you.

Bringing in an accountant too soon can mean paying for them to run Profit & Loss data on every franchise that catches your eye. This onslaught of numbers can cloud your judgment, particularly if they're taken outside the context of in-depth, due diligence research on each business.

Bring in an attorney too soon can mean paying them to review the Franchise Disclosure Document (FDD) for every franchise that strikes your fancy. Studying detailed franchise information at such an early stage with a legal advisor who doesn't understand your personality, lifestyle and professional preferences can be detrimental to your search. You could end up inadvertently being talked out of the perfect business.

Waiting to bring in legal and financial advisors until your franchise choices have been narrowed down dramatically is not just cost effective. It's the logical way to use the team's expert advice to your best advantage.

14) Feel the fear and do it anyway

The best way to manage your fear of buying a new business is to manage your risk. The best way to manage your risk is to learn everything you can, then proceed according to what you've learned.

Start the process with no intent to purchase. That removes the chance of getting so excited about business ownership that you take an irrevocable leap with the first prospect you research.

Above all, ask yourself "can I picture myself doing this all day?" If the answer is "no," then be grateful for what you've learned and move on to researching a different industry.

The research and due diligence processes get easier with practice. It may take a few attempts to find the perfect franchise, but your efforts are not wasted. By actively engaging in the search, you've made yourself familiar with the process. And there's no fear in the familiar.

15) Go it alone

Business partnerships are appealing on the surface because the idea of splitting costs, liability and workload is tempting. But it's nearly impossible for any two individuals to work together as much as necessary to launch a new business without problems developing.

If it is a financial necessity to form a partnership in order to purchase your franchise, it's crucial to define the roles each partner will play well in advance. If at all possible, try to structure the partnership so you own 51% and have the power to make binding decisions for the business.

Entering a partnership is not to be taken lightly, and should not be done without consulting your attorney.

16) Lease, lease, lease

Most franchises provide detailed specifications on the type of commercial real estate required to launch the business, and many will assist with the search for an appropriate property.

Leasing a commercial property is nearly always preferable to purchasing one. The capital required to purchase a property is better reserved to fund operating costs for the first few years. It's also preferable to sign short lease terms with options to extend rather than committing to a long lease term.

Because many commercial leases include taxes and assessment fees buried in the fine print that can cause financial problems for your business, it is very important to have your attorney review any commercial lease before you sign it.

17) Don't forget you've got to eat

One of the most common mistakes people make when working up a financial business plan is forgetting to pay themselves. This simple oversight is at the root of a lot of failed businesses.

In a perfect world we would all have enough in savings to go a year without a paycheck, and everything a new business makes could go right back into making it stronger.

The reality is we've all got bills to pay. It's important to be honest and thorough when estimating the salary the business will need to pay you. Cutting yourself short will create enormous problems, especially if your fledgling business can't afford to give you a raise yet.

This is one area where decisions you make for the business directly impact your personal life. The franchise isn't going to do you much good if your heat's turned off and the bank is foreclosing. Taking extra care with this critical detail could someday save more than just your business.

18) Consider alternate financing options

In the current economic climate, strict lending standards are making it harder than ever to get a commercial loan issued. When loan approval is a problem, it is worth considering your 401(k) or IRA as a resource for purchasing your business.

These self-directed retirement structures do permit individuals to actively invest their retirement funds into a business without taking a taxable distribution or incurring early withdrawal penalties. A successful use of this financing method offers the chance for a greater potential return on your money than the original investments.

Using your retirement funds to purchase a business is not to be taken lightly. But if done right, having your own business could be the best retirement plan of all.

19) Lead by example

If you're not working hard for your business, neither will your employees.

At the end of the day, the only one who cares if your business succeeds is you. This is not the time to kick back and count the money. In fact, that attitude is the quickest way to ensure that soon there won't be any left to count.

Even the most diligent business owners may forget that employees can't see through the office door. They have no idea you're calling customers, ordering supplies, writing a marketing plan, reviewing applications and trying to find a way to cover next week's payroll. For all they know, you're taking a nap.

When an employee sees a manager coming in late, leaving early and taking long lunch breaks they think the worst. They don't understand that you came in late because you attended a 7 am referral group meeting. They have no idea that your lunch ran long because you were signing a deal with a big new client. It doesn't occur to them that you left early so you could attend a Chamber of Commerce networking function.

Communication with your employees can help them see you're working as hard as they are. Share your growth projections and help individuals set goals to meet them. Bring key employees to client meetings. Send high performing employees to networking functions in your place. By giving your employees a role in growing the business, they'll take pride in supporting your success.

20) If you don't love it, don't buy it

Confucius said "Find a job you love and you'll never work a day in your life."

If you wake up in the morning and dread going to work, your franchise will not be successful. It's as simple as that.

The beauty of franchising is the endless variety of options - there's literally something for everyone. You just need to devote the time and effort to figuring out which one will make you hop out of bed every morning, happy to be doing what you love.

21) Use every resource at your disposal

Investing your personal, professional and financial future in a franchise opportunity is a big decision. Use every source of information you can find, and compare the data to make sure you're getting the whole story.

On numerous occasion former franchisees of various franchise system have complained that as the franchisor grew the rules changed and eventually forced them out of business - is this a common occurrence? Well, some believe it is and several have emailed me about this problem as I am a co-author of Franchising 101, the premier book for those considering on buying a franchise and wishing to learn the ropes. One of these former franchisees, I replied in an email to recently:

I see you seem to be upset with the first generation of "franchisees" in a new system. I have generally found that the newest franchisees of a new system either get the red carpet or they are forced out later, because the franchisor is able to get more money for territories sold too cheap or too large.

It is unfortunate if indeed a franchisor has forgotten from hence he came. I can remember first starting out in business and running my small business for over a decade, which was nearly identical to the franchised units we later sold. Still, the former franchise who felt slighted by their franchisor stated:

I know, as a former franchisor, that you defend franchise failure as a failure of the franchisee and not a failure of the franchised business plan.

Well the fact is that I am not obligated to defend anyone, actually, I was for a long time the anti-franchisor, franchisor actually. What I am saying here is that it is not so black and white. I have had franchisees from hell, I have had to sell franchises to people I did not want to, because of laws in franchising and then been screwed over by franchisees not paying royalties, changing the name of their business and continuing, when we lost money setting them up and they cheated me. So, that is another thing that happens, over time you are less lose in the deal making and a little harsher to prevent being taken advantage of.

The former franchise then asserted that the franchise failure rates and the information is hidden from view and even the SBA does not come clean on the problem. He stated:

The SBA uses the Loan Default Rate on Franchises on the SBA Registry to prepare Risk Profiles and you can't dispute that the failure rate of first-generation franchisees, if many, does indicate that there is something wrong with the plan.

I do not dispute anything, I tend to agree, although the franchisors that are very big, rarely, if ever share their economies of scale with their franchisees, they over charge them for supplies and work to squeeze profits out of their signed up captured audience. Yet the larger franchisors get carte blanche with regulators, literally. This can be problematic in my observation and first hand experience, thus I am not amused and fear that someone somewhere named Adam Smith did indeed warn us all of some of the problems with government regulators who cozy up to one business, against another.

I have found that there is something wrong with every business plan, even the ones I have created. You see, planning is about change and adapting so you must change with the flow, but over regulation prevents that, this is why Schlotsky's Deli got caught with their pants down with the Atkins and South Beach Diets were all the rage, belly up along with Krispy, that got Kremed. Franchising does best when the government stays out of the way and allows free-enterprise to work. Think on this.

Some say that in the UFOC - Uniform Franchise Offering Circular that is required to be given to new franchise buyers that in Item # 20 franchisor are able to hide franchise failures as transfers. These critics state that regulators allow this musical chair game and it impedes the franchise buyers knowledge of the true success rate and hides their failed business plans. Therefore all the original founding franchisees, which may have failed or been sacrificed for growth strategies in some cases are not recorded as having failed, even if they transferred in a "fire sale" type situation.

Of course, once the franchisor is up and running with 100s of franchisees the Business Plan, system and such is completely different and changed. The original founding franchisees generally have lots of other advantages too. Although you are correct about the original franchisees. The franchisor is busy trying to make it work and balance while trying to comply with all the insanity, rules, the changes and modifications needed for regional variation and dealing with new things that they are not use to. Franchising is a lot different than running company owned units, it is unbelievable the transition.

Critics remind folks like me on this side of the debate that under the 1970's Franchise Rule, the FTC was to protect franchisees by requiring franchisors to disclose information to allow the franchise buyer relevant data to make an informed investment decision and ascertain the risk.

Indeed this is the actual history of franchising law and the FTC perhaps, but those laws have grown and now you see the 250 + pages of disclosure documents that are needed to comply, which in the end serve no real purpose. Imagine the barriers to entry for new franchisees $45,000 to produce documents, $25,000 per year to stay registered in the registration states, $30,000 minimum for audits.

Meaning a new franchisor has to pass those onto the new franchisees. Pretty unfair, especially as a new franchisor has a tough time getting going, after all who would buy a franchise if there are none already? Thus the franchisor has to make deals, cannot be too choosy and this is the basis for most of the original franchisee failures, but remember the over regulation is a factor hurting the franchisor.

One recent knowledgeable franchising critic to these issues and a former franchisee, who felt slighted by his franchisor, stated that the columns in Item # 20 of the UFOC are severely misleading. He pointed out that the transfer columns in Item #20 were a solution to the dilemma of ambiguous information in the disclosure document, but all this has done is allow for manipulation of franchisee failures that are then hidden from the franchisee buyer.

Yes, this does occur, whether by design or necessity or dodging the truth in disclosure and since it is legal, it appears that it is done more often than it ought too. Nevertheless, we are talking a legal technicality, but if we ditch this all together then the franchisee buyer would still not know. The entire UFOC and the new rules are ridiculous, too cumbersome and a slap in the face to the right of citizens and the right to free contract, and to the point of misleading information, well that is yet another result of the over regulation and insanity of the UFOC format.

Some believe that some franchisors like the format charts for Item # 20 that allows them to hide negative information, yet I know of no one who has ever said anything good about it (franchisor, franchising attorney or franchisee) and thus, I often recommend the book "Tips and Traps" for folks who wonder about Item #20. One angry former franchisee stated that Item # 20:

It gives the Government deniability because they don't really know what the transfer columns are indicating in terms of success or failure of the franchise that is being regulated, and they don't want to know.

I think most consumers and franchise investors give the regulators too much credit. SPAM went up 3000% since the FTC took over that task, Identity Theft is out of control and what do they do, harass the little guy and make things tougher. Indeed, the biggest purveyor of American's personal identity is the government and they give away the most information, now they will be giving databases to foreign governments under the auspice of anti-terrorist information.

Thus it appears to at least this Franchise Consultant that if the consumer is looking to government to protect them, and thus believing that they can skip some of their own checking and due diligence that they are in for less than they bargained for. Buyer beware, well that's my best advice and it comes from a heck of a lot of experience, there is no substitute for due diligence let me tell you.

Next in this ongoing debate and saga is the issues of churning, and how some franchisors who call it re-selling have used this as a franchise system management tool to eliminate first generation franchisees in order to make money selling them again and tightening the controls of the franchise system, as it grows. As a franchise consultant and studier of the industry for years, I admit there is a "Re-selling" or the not so nice term churning strategy going on in Franchising today.

Many attorneys at the ABA forum (which I scan daily and for the past 5-6 years) are concerned about these issues also. Indeed not long ago a few were trying to figure out what that guy in Las Vegas is doing, he seems to be the outsourcing churning king. Sure, this helps franchise systems and it is completely legal, but what about the franchisees who are churned and counted as transfers instead of failures, having lost all their money and nearly gone into bankruptcy and barely got out by the skin on their teeth in order to save their credit or prevent a larger debt as they leave?

As good as this new lady is at the FTC, Deborah, a President Bush appointment, she has no clue as to the blatant incompetence of the FTC in the Franchising Realm (my opinion, I have plenty of documentation, if anyone is interested to back up my comment). Many former franchisees and franchise rights advocates in Online Franchising Forums and Blogs state there are number of large Corporate franchises that do a significant amount of churning.

They name names like MBE - UPS Store, Quiznos, Subway and 100s of others and state they are hiding all the failures and bankruptcies in the "Transfer Column" of the UFOC in Item # 20. I have seen it too, not necessarily with those particular companies, I have not checked, but I have seen this scenario too many times to mention, thus I realize it is an issue.

In fact these comments appear to be spot on with regards to Large Corporate Franchisors and Susan Kezios, President of "Women in Franchising" and "The Franchisee Association" in Chicago told me the same thing. It seems rather than addressing this issue at the FTC, since it is fully legal, the regulators will go after companies they think will not fight back or that are slightly outside the protection of the Industry and much smaller and bury them in court paper work. To me it seems outrageous and disgusting, but I did not make the law.

Once, I sat in on an MBE franchise seminar once to see what they do, I felt bad for those investing in such franchises, indeed, I felt sick to my stomach, many large franchisor put on what appears to be more of a dog and pony show in franchise sales seminars. Some former franchisees say that the SBA helps hide the risks in modern day franchising. In my opinion this is a half correct statement. Other critics say that the Franchising Industry is subsidized by government, again, in observation that is also hard to argue.

You know this goes way back to when all the gas stations were selling to foreigners after the fall of the Shaw of Iran. Folks came to the US and wanted to start a business and many would buy gas stations because the understood that Oil and Fuel = Wealth. Then these immigrants who came with down payment monies, business skills would buy a fuel station franchise. When they were not making money as fuel re-sellers and franchisee gas station owners, then they would sell the non-performing business to another immigrant.

Often this went on and on, churning, sometimes over 5-6 sales. Yes, all SBA loans the price was 60% over its value - hello taxpayer on the last loan that defaulted. I thought that was unfortunate, but when you talk about subsidy, are at least partially correct, probably more than they even realize, as most folks are not very aware of this issue, which is water under the bridge now.

Most of those buying a franchise borrow money in order to attain the American Dream of owning their own business. They are not gambling in the stock market as one critic of franchising stated, nor are they using discretionary funds to buy the business. They are looking for self-employment as an answer.

I concur with these critics actually. In fact, this is what every single franchise buyer told me, and they were serious, most I sent away, as our franchise is hard work and lots physical work and as labor got tight. Apparently, this is why we have franchise laws to protect the investing consumer, but these franchise laws are not serving anyone, not the consumer or the franchisor therefore both are hurt in the end with bureaucracy, over regulation and huge legal fees. Since franchising is a win/win, no one is well served. It is time to de-regulate the franchising industry, and get government out of the way.