Archive for the ‘Franchise Tips’ Category

Starting a company and turning a new company into a profitable company are two entirely different feats. Starting a company is easy. All you need to do from a practical standpoint is incorporate the entity for a few hundred dollars and that’s it. You have a company. Now, taking that company and turning it into a profitable, cash-strong company is an entirely different feat altogether.

Now, the unfortunate truth is that most companies fail in between these two periods. It is common knowledge that nearly 70% of companies will fail during the first three years of operations. This begs the question – why do companies fail?…

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Every day, more and more Australians are giving up traditional 9-to-5 jobs and venturing into the franchising world. In Australia, franchising is worth a whopping $130 billion – and that number is expected to keep growing.

Why?

Franchising offers you the chance to be your own boss – without starting up a company all by yourself. Instead of trying to build a brand from scratch, you get to use a business model, a product, and a company name that customers already know and trust.

What do you need to know if you’re thinking of opening a franchise?

If you think that the franchising world is right for you, take a look at these 4 facts.…

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You have decided on the franchise you want to buy.  Dreams of early retirements are beginning to swirl in your mind.  Images of you on a beach, reclining in a hammock, sipping exotic cocktails.  That is the dream!  But it is very important to realize that the path between now and then is going to be challenging.  Launching a successful business is not easy.  The good news, however, is that with a combination of planning, hard work, and dedication, it can be done.  In this article, we are going to discuss 5 key tips for successfully launching your new franchise.

Test Your Idea

Before you take out a restaurant loan or throw down the cash to buy this franchise, make sure you do exhaustive marketing research and talk with industry insiders in order to ensure that this is the right decision.  In the early stages of launching a company, everything seems perfect.  It is easy to see the world through rose-colored glasses and to think that wild success is only a few months away.  However, there has never been a time when you needed to be more objective in your judgment and reasoning.  Therefore, consult with others.  Share your business plan and idea with successful entrepreneurs and business owners.  If you get a steady stream of negative feedback, with most people believing you will not make money, then you need to seriously reconsider the idea.…

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If you are thinking about investing in a franchise, there are many things to take into consideration before diving in head-first. Doing your homework is essential–if you buy into the right one, you may find yourself running a very successful and profitable business. On the other hand, a hasty investment made without proper consultation and research could end up leaving you in a financial hole you can’t climb out of. Here are several things you should consider before making the decision to buy into a franchise.

Franchise Options

There are many different franchises for investors to consider–from hotels and restaurants to cleaning businesses and car washes, the possibilities are numerous.…

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This is a guest article by Andy Mutt

As more people lose jobs in this economy, more people are considering becoming franchise owners, today. But in order to increase sales, franchisees will need to start thinking out-of-the box and working closely with their franchisors to increase sales.

Here are some activities you should consider to increase revenue:

Direct mail coupon campaigns:

In this economy, everyone considers the price before purchasing any product and the best way to attract customers to your store is to provide them with coupons.

Mobile Marketing:

Mobile marketing is marketing on or with a mobile device. Coupons sent to consumers through mobiles have led to an increase in store traffic for many FMCG franchises in the U.S.…

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When you are pitched by a franchise company that franchises can’t fail, just stay away from that franchise: Franchises – just like any other businesses – can fail. What to do next if your franchise is failing?

I was pitched that franchises has a better sustainability due to their inherited ability to succeed. I was also pitched that franchises can’t fail because when you buy a franchise, you buy a proven system.

Wrong – my two franchise units were going out of business for one reason or another.

I’m not going to point a finger to my franchisor because pointing fingers won’t solve anything. In fact, I believe in the saying that if you point one finger to other person, the other four fingers are pointing at yourself – meaning, I am the one who is responsible for my big failures in franchising.…

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Not all can be franchisees – there are certain personality traits and circumstances that can hinder you from being a successful franchisee.

Are you a franchisee material? Here are 100 questions to ask or answer to ultimately help you determine whether you have all the potential to be a great franchisee or not, excerpted from Franchise Bible:

1. Have you and your spouse and knowledgeable family members discussed the idea of buying a franchise?

2. Are you in complete agreement?

3. Do you have the financial resources required to buy a franchise? If not, where are you going to get the capital?

4. Are you and your spouse ready to make the necessary sacrifices in the way of money and time in order to operate a franchise?…

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“Franchise opportunities – easy to run, no experience required!”

In this article I want to be totally honest with you: Whenever you encounter such offer, not only in franchising but in any business opportunities, my only suggestion for you would be to stay away, even run away from them.

Franchises are mistakenly touted to be businesses that are easy to run – thanks to the proven franchise system in place. This is misleading and could lose franchisees money eventually.

Here’s the cold, hard truth: Despite the proven system in place, new franchise units are essentially business startups – meaning, you need to take time to learn the system, ‘feel’ the competition, and get everything to run in order before you make something out of the system.…

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You have prepared everything you need to do to buy your dream franchise: Location, check. Market research, check. Financing, check. The due diligence, check, check and check. Now it’s time to move a step forward: Let your franchisor know that you are ready for reviewing and signing a franchise agreement.

Franchise agreement is where things are put at stake – Misinterpret it, and you’ll face the consequences for at least 5 to 10 years.

Franchise agreement can be 50 pages long, even more, and can be overwhelming to read word-by-word, especially if you are not familiar with the jargons and clauses normally used in commercial contracts.…

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I heard too many stories of franchisees who “feel” that they were being cheated by their franchises, resulting in an under-performing, if not dying, franchise units.

The general rule of thumb in any business agreement is: read every word, and don’t forget the fine print.

Not to discredit franchisors, but some seem to have a subtle intention to “trick” franchisees into signing for franchise agreement. Alas, we can’t ask for franchisors to guarantee anything – they can’t, and even if they do, they are considered as both unethical and illegal.

The truth is, you and I can’t put all the blame to the franchisors or ask them to guarantee something.…

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