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Free Business InformationHome Based Franchising
by:
Shawn Price
Copyright 2005 Choreographer Price
Is House Based Franchising for you?
Do you desire House Business Ownership but cringe at the thought of starting from scratch?
Possibly a House based Franchise is your answer.
A Franchise is a business in which "... the franchisor, the owner and developer of the franchise system licenses [you] franchisees to use trademarks, service marks, logos, or advertising closely-held or developed by the franchisor." (International Franchising Association, Franchising basics).
With several franchise programs, the business operates exploitation the Franchisor's brand name only.
Other programs are less restrictive and allow for the usage of several a trade name in addition to the franchisor's brand name.
Common to all franchise programs, the franchisee[ you] is responsible to pay the franchisor, advertising fees, initial fees, service fees, and or royalty fees.
You are responsible for payment whether your business is profitable or not.
Additionally, galore franchisor's provide educational programs to franchisees before the origin of the business.
Often times, they've done demographic studies and another studies to ensure that you have greater odds of returning a profit.
Major Franchise Types
• Unit Franchising
Is the most simple type of franchise in which the Franchisor grants the franchisee the right to operate a single operation at a fixed location or inside
a particular territory.
• Area Development Franchising
In accordance with a "development schedule", the franchisee agrees to establish a preset number of "unit franchises" inside
a particular territory.
• Subfranchising/Master franchizing
Is quite similar to Area Development Franchising with the major difference being that the franchisor grants the subfranchisor the option of opening the unit franchises herself or merchandising the the franchises to third parties. (Common with International franchising)
• Affiliate Franchising
This type of set up is typically used by an owner of an established business who decides to join/affiliate with a franchised chain.
This allows for the benefit of the franchises brand. This is common with galore real estate.
• NonTraditional
This type of set up is custom-made between the franchisor and the franchisee.
Franchises are not the same as Dealerships and distributorships
A franchise or distributorship differs from a franchise in that there is no FEE involved. Dealers purchase products normally from the manufacturer at wholesale prices.
Note however, that a franchise can become a Franchise IF a FEE is paid to the franchisor AND the distributor is dependent upon the franchisor's pay structure.
Considerations once
buying a franchise
• There's a benefit to buying a franchise that is well known
• Wish the franchisor provide in progress education and support?
• Were demographic studies performed?
• How galore of the franchises have closed operation? Why?
• Have you STUDIED the franchiser's Comprehensive Revelation Statement? It's required by Law that prospective Franchisee's are provided Comprehensive Disclosure, a copy of the franchisor's Standard Franchise Agreement, Audited statements, a list of the names of all of the Franchisees, as well as a copy of all documents that require the franchisees' signing.
By law, each of the above must be provided at least 2 weeks prior to purchase date.
• I've detected
the saying, "if you buy a McDonald's, be prepared to eat burger's for breakfast lunch and dinner." In another words, your business requires commitment.
Additional Sources of information
•Success Magazine
•International Franchise Association www.franchise.org
•Franchise Sales Press *Get this magazine since it is acknowledged for its focus on franchise opportunities. Further, they perform regular interviews with several franchisees as well as with franchisors.
•SBA Small Business Association
•Brokerage firms and analysts Since stock information on A public institution is useful.
•Franchise Attorney •Federal Trade Commission Public Reference Branch
•UFOC "Uniform Franchise Offering circular -- the material that is provided by law, by the franchisor to the qualified franchisee. This is likely the most telling of all information gathered.
•Attorney General's Office
•BBB placed in the city of the Franchisor's headquarters.
•Your Banker should have access to the Dunn and Anne bradstreet Report on the particular Franchisor.
•Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling.
Purchasing a franchise normally equates to a reduction in investment risks since the" system" and Franchise name is established, training and in progress keep is provided, market research has been conducted... Conversely…
franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing.
There is a continual rise in the number of franchises. Obviously, there's a Immense market for this know-how
of business ownership. Once
approached methodically and practically, Franchise ownership can be Really moneymaking and more simpler than beginning a business from the ground up.
Be wise and ensure that you conduct adequate research prior to committment.
If you’ll need fiscal backing, then you wish need to create a business plan. There’s a handy Business Plan book
accessible at our site.
Bridging the Gap between Chance and Success, OwnABizToday.com
Just about the author:
Due to her terminally ill, physically and mentally disabled child, Choreographer was FORCED out of the "job market" and FORCED into "self employment" ...After experiencing a multitude of fiscal difficulties. Because of her life's experiences, Choreographer understands that it's impossible to predict futurity circumstances and thus it's terribly important that people...particularly parents, develop fiscal security. Consequently, leading others toward business ownership has become a passion for Shawn. Presently, Choreographer is the Author of OwnABizToday's, Ezine, which presents New House business Start up's and Small Business Resources each week.
To obtain our weekly Ezine, send a blank email to:
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Bridging the GAP between Chance and Success, OwnABizToday (http://www.ownabiztoday.com )
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