Archive for the ‘Franchise Tips’ Category

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…

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PostNet store, South Africa

Will branding by a franchise company help an independent business reach new heights? Could be, provided you partner with the right franchise company.

What is this all about?

Basically, the idea is for your existing business to be transformed with franchising concepts – Management restructuring, business process and system refining, and re-branding.

Your business premise is re-designed and re-purposed in a way that is most effective (according to the franchise company you partner with.) Your staffs will wear (different) uniforms, and their performance will be measured with different set of rules. In your case as the…

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Analysing new franchise opportunities

New franchises – especially those offering new and in-trend concepts – are always interesting and will likely to attract fans and enthusiasts into franchisees.

New franchises play an important role in franchising: New franchises breathe fresh air to the franchising world, adding value to the wealth of opportunities in franchising worldwide.

Full of potential, new franchises will likely to attract adventurous franchisee candidates to invest in a franchise unit and join the band wagon of ‘the next big thing’ – Some of the new franchises do become the next big thing, indeed.

However, anything that bears…

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Franchise agreement signing

I have just read an article from The New York Times that covers the questions you should ask to yourself and a franchisor before deciding on buying the franchise of your dream.

The article opens up some facts that, to tell you the truth, somewhat against franchising, in a sense that you should take great(er) care to invest your money in a franchise opportunities, as many facts and pitches made by the franchise companies are misleading to the ‘untrained eyes.’

I enjoy reading and benefit greatly from the…

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Franchisee income

This question (supposedly) jump out of a franchisee candidate’s mind: How much can I make from this franchise opportunity?

Unfortunately, the answers can be vague, misleading and, in a sense, secretive. The income reports you saw publicly (such as in franchise expos) are either averages or forecasts/projections.

Franchise companies are not in the habit of telling prospective franchisees how much their franchisees are making annually. Even if they do, I’m sure the answer would be in the form of averages, with different methods of calculating averages from one franchise to another.

Unfortunately, averages are misleading and, due to…

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Franchise partnership break-up

We are always ‘reminded’ by various publications on franchising, online and off line, that franchising is expensive, and bailing out from the franchise agreement is costly for the franchisee.

Unfortunately, not many realise that not only franchisees, franchisors are also financially affected by the franchisee-franchisor partnership break-up – And that is just the tip of the iceberg.

Break-up costs to the franchisee

It is obvious that the franchisee will be severely hit by huge monetary loss due to ‘the-usuals’ in the franchise agreement – The non-competing agreement and the right for the franchisor to terminate the franchise…

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Franchise Financial Projections

Reading franchise business publications and attending franchise expos will give you some ideas on how the bottom line – the financial analysis – of franchise opportunities you are interested in.

As some, if not most, franchises are keen to recruit new franchisees, some of them are utilising their financial projections as tools to pitch franchisee candidates.

My main problem is this is: They are projections and based on averages.

I don’t know how about you, but to me, averages are misleading.

Consider this simple illustration:

Suppose you asked a car dealer how many cars he sells in…

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Franchise talk

You have done your homework and have found a great franchise to buy. What’s the next step?

There are many paths you can take as your next step, but I suggest you to talk with the franchisees of the franchise company you are interested in. Most likely than not, having a chit-chat with several franchisees will give you an idea or two about the franchise companies – good words and bad words.

A great franchise company is the one that has franchisees as the evangelists. Of course, franchisees are generally required to keep all the “secret recipes” remain…

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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…

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Franchise support

I have invested in franchise opportunities and business opportunities, and I concluded that there is one major difference among those two: The level of support.

For those of you who think that franchise fees and royalties are simply useless and waste of money, think again – You will receive what you have paid for.

Many, if not most, business opportunities are using “no franchise fee” and “no royalty” as selling points. The downside that not many business opportunities reveal is their level of support.

Despite some business opportunities offer ongoing training to investors, not many think the partnership…

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