Archive for the ‘Buy a Franchise’ Category

Refranchising has always been a hot trend of the decade in franchising. The all-important question: Is refranchising beneficial franchisors, franchisees, or both?

Refranchising

Refranchising is basically about selling the franchisors’ own units to franchisees. So, yes, franchisees are buying established franchise business with well-run operation and positive cash flow.

To me, refranchising is a blessing – I am tired of starting up, and with franchising I expect more than just a start up business. For you who share my vision, you might be interested in refranchising, as well.

Why do franchisors refranchise?

Firstly, you need to know that own units are not always started up by the franchise company. Instead, franchisors…

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Many people deciding to buy a franchise because it is closely related to their hobbies. My opinion: Hobby-based franchises are great, but let your hobby be your hobby.

Science franchise

I have talked with some franchisees in the past who are buying a franchise because it is their hobbies-turned-into-businesses.

One of their most common comments is: Let your hobby be your hobby.

To clarify: Not that hobby-based businesses (in this case, franchises) are bad. In fact, for the right people, hobby-based franchises can be extremely successful, considering the nature of hobby/entertainment community and industry.

Unfortunately, using your hobby as the main reason to decide on buying a franchise is not…

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Due diligence is the keyword to ensure that everything you have planned in buying a franchise will not go in vain. Proper franchise opportunity analysis can only do you good.

Franchise due diligence

Due diligence is resource-intensive. Doing it requires you to put on your business analyst hat, as well as your skepticism hat.

Unfortunately, choosing NOT to do the business due diligence will bring you problems and perils later on.

A price to pay for not doing business due diligence: I lost my franchise units

You don’t need to prove anything, as I have already proved that not doing my due diligence properly before buying businesses cost me not only…

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Franchising leads to many paths

Provided you buy a franchise that allows you to be an absentee owner, being a franchisee can present you with more business opportunities.

Franchisees are comprised of entrepreneurs, professionals, retirees and many other backgrounds – This wealth of background can add diversity, leading to a stronger franchise, benefiting both franchisor and franchisee.

A chance to network and partner with fellow franchisees

In my case, being a franchisee opens up more windows of opportunities – Building a good relationship with fellow franchisees can bring you more business to your other businesses, even partnering to launch a new business together (I’d like to do this with…

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home-based franchise operations

Many people don’t realise that not all home-based franchises are enabling you to do most of your work from home. Some do allow your home to be the ‘headquarters’, where business operations are done mostly outside the comfort of your home.

Let us get this straight – Home-based franchises are those franchises that allow you to, well, use your home as the franchise ‘base’ or ‘headquarters’. Although, in general, home-based franchises describe those that allow franchisee to stay at home and (mostly) work from home, some home-based franchises are mobile franchises – Those that don’t require a premise to run the business (the franchises utilise cars,…

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KFC, New Plymouth, New Zealand

The trivial part in spotting the right franchise opportunity is looking for proofs on all of the franchisor’s claims, regarding franchise operations – the staffing, office/store management, and design/display, to name a few.

There are many ways to do so, but I personally like to visit the franchisor’s own units, to observe and take note the pluses and minuses I found. Visiting franchisees’ store or office is also a good, similar, idea – However, in order to find proofs to what was pitched in the franchise marketing materials (and the UFOC), the franchisor’s own unit is a great starting point.

You might asked,…

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Internet franchises

Franchising has expanded and extended, in such a way that it is now beyond physical boundaries, including geographical boundaries.

Internet franchises are those that pioneering a way to break the online and off line business barrier by offering Internet-based and -related opportunities.

What are Internet franchises?

Internet franchises are those that offer opportunities in Internet industry, including but not limited to Internet service providers, Internet marketing services, Internet consultancies, Internet cafe, web design, Internet marketing and many more.

Due to the nature of the Internet, Internet franchises are closely related to home-based and computer franchise opportunities, as many – if not most – Internet franchises can be home-based.

How lucrative are…

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McDonalds franchise units, Orlando

Visiting franchise expos, I generally pitched with the following, “We have expanded well from X to Y franchise units in 3 years into franchising.”

While expansion, for me, is one of the key indicators of the franchises’ potential, it is often misleading franchisee candidates into thinking that rapid expansion means strong franchise company with great potential.

Quick expansion means more emphasise on quantity and less on quality

Expansion is great, but you must understand that franchises that put expansion into the top priority in their business plan present franchisors and franchisees with a double-edged sword.

In one side, being expansionist presents the franchisor and the franchisees…

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7-Eleven as Kwik-E-Mart

Franchising is more appealing to entrepreneurs than ever – Many thanks to the recession. People are ‘forced’ to take entrepreneurship route due to downsizing and troubled personal finance. As people need a hand in guiding them in the new frontier, franchising comes to the rescue, offering proven system, strong brand name and support/help along the way.

I’ve just read an article from the NYDailyNews.com that, in essence, echoes to what I believe all this time – Franchising as the legitimate business model in the midst of economic uncertainty.

The article, titled In weak economy, having your own biz, but not being on your own, has appeal,…

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Franchise opportunity analysis

Before you sign any agreements with a franchisor, you should know the potential risks entering franchising. You should not expect your franchisor would want to reveal anything more than what is inside the UFOC (the franchise offering.)

You will almost certain to hear good words and upsides of the franchise opportunities you are interested in. However, I believe that things that are not revealed in any information regarding a certain franchise opportunity are the best guide before you do anything involving money and investment.

One of the best sources to know what you could potentially face as a franchisee is franchisees’ complaints.

Franchisees’ complaints

Have you ever…

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