Posts Tagged ‘franchise ownership’

Think outside the box – literally

The title above is probably one of the questions franchisee candidates have in their mind but are too reluctant to raise the issue with the franchisors.

We all know that in everything we worked in (to make a living,) we need to put our best effort into it. Just like any other type of business startups, franchising, too, require franchisees to put top effort in order to succeed.

Suppose you have a day job that is too difficult to let go to allow you running a franchise unit full-time – Are there any possibilities to run both at the same time?

Yes, you…

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Multi-unit franchising

You have done your due diligence well – You have searched and evaluated dozens of franchise opportunities you are interested in, and you have finally picked the one suit you best. And your hard work proves right – Your franchise unit is profitable and growing well.

The idea of multi-unit franchise ownership – owning more than one franchise units of the same franchise company – is suddenly pop out of your head.

On paper, the idea looks good: If you own a franchise unit, owning two of the same franchise is double the fun, right? Maybe. Maybe not.

The opportunities of multi-unit franchising

Being in the same franchise…

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Entering Startup

Buying a franchise is not buying an established business. The fact is this: buying a franchise is ‘renting’ a proven system and established brand image – You can never, ever own the system and brand name (unless you own the franchise company.)

Apart from the system and branding, the new franchise unit itself is, in fact, a business startup.

Surprisingly, many franchisee candidates believe that buying a franchise is buying an established business that guarantees them a certain amount of income and a certain Return-on-Investment (ROI.)

First of all, nobody can guarantee you any results. Financial claims are based on averages, projections and/or estimates from past performance.…

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Business owners

Franchise ownership is one route to entrepreneurship and financial independence, provided you buy a franchise with the right knowledge and mindset.

Unfortunately, for the sake of seeking new franchisees, some franchise opportunity offers are simply misleading, even degrading.

Here is what I found searching on Indeed for the term “franchise opportunities jobs“:

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Franchise ownership

I stumbled on an article on Yahoo! Small Business, that (again) put franchise ownership as one of 7 most overrated businesses.

Kelly K. Spors and Kevin Salwen, the article writers, have conversed with small business experts to identify the overrated businesses. Other than franchise ownership, the other six are: Restaurants, direct sales, online retail, high-end retail, independent consulting and traffic-driven websites.

The culprit that put franchise ownership on the list is, again, the franchise agreement. “…too many people don’t understand the risks associated with franchising and sign restrictive franchise agreements without thoroughly researching their franchisor and their contractual obligations.”

With all due respect – While small business…

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The right franchise opportunities

Buying a franchise is not a simple task these days – With virtually hundreds, if not thousands, franchise opportunities present, choosing some, let alone one, opportunities that you are interested in is trivial. You need help – You need the services of a franchise consultant.

A franchise consultant can offer you expertise and guidance from every step involved in buying a franchise, starting from looking for the right franchise opportunity to closing stages of the purchase process.

Here are 7 reasons why consulting with a franchise consultant is the best way to find and purchase a franchise:

1. Free and confidential consultation
   The consultancy is free for…

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Franchise ownership myth

I just read an article posted by Joel Libava (The Franchise King) about not including buying a franchise as a backup plan after someone is being downsized.

Unfortunately, I do heard stories of people who put buying a franchise in the top list of what-to-do-after-you-are-being-downsized – I agree with Joel: Franchising is not for everybody. How people are being misled? The culprit is the widespread belief that buying a franchise gives you a huge opportunity to succeed – The coveted 95% success rate.

In another article, Mr. Libava indicates that the 95% success rate of franchise ownership is a myth (and an urban legend), as there…

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Exhausted franchisee

You fed up working for others and have called it quit. With your cash in hand, you set your sight focused on a mission: being a successful entrepreneur.

You revved up, and despite of all the worries and negative comments on you quitting your job, you are start looking for a business to invest in, simply because you feel you don’t have enough experience in starting out yourself. One logical choice you have found: franchising.

You are excited, ready to take the most promising franchise today. You learned that it only took you $20,000 to start with $2,000 projected net profit – 10 months to ROI?…

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Win-win solution

A conventional wisdom on franchising says that absentee ownership is not ideal in running franchise units; Therefore, most franchises offer franchising opportunities that do not allow absentee ownership. Perhaps they should think about allowing absentee ownership, as it presents a win-win solution for both franchisee and franchisor.

Absentee ownership means owners who are not physically present on-location to manage their franchise unit’s daily operation.

Non-absentee ownership requirement is justified due to the fact that franchisors need to maintain franchise operation quality standard across their franchisees, and to achieve this, they require non-absentee franchise unit owners. Of course, there are some exceptions, such as in semi-automatic franchises, e.g.…

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