Archive for the ‘Franchise Tips’ Category

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 as more than supplier-buyer relationship: You …

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Franchise opportunities expo or franchising fair is always visited by a lot of people, worldwide. Especially in some part of the world, franchise opportunities expos seem to attract a large number of visitors in record breaking pace – One of the proofs that franchising is recession-resistant.

I have attended some local franchising expos for quite some times, and I observe that investors’ interests are high and conversion rate is great. In every franchise opportunities expo, some of the franchisors I know can recruit an approximate of 3 new franchisees, even in economic downturn. Not bad expo results, I think.

While most visitors are on …

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It seems that, to some people, the biggest downside of franchise opportunities are the franchise fees and royalties.

Those two are the reason why some people ‘despise’ franchising and look to non-franchise business opportunities. Their main reason is that the fees and royalties are stripping off a large part of the business’ profit; in other words, franchise fees and royalties are expensive.

Non-franchise business opportunities (BOs) are smart – They see a market to tap into, and they use “No franchise fees, no royalties” to pitch to potential investors.

Although BOs have their rights to use whatever marketing methods they feel the most effective, …

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When it comes to franchising, franchisee-franchisor relationship is often more important than the business itself.

In franchising, if you have a bad relationship with your franchisor, you will not run your franchise unit well. Not that your franchisor is subjective in giving support and assistance, but like it or not, you need to teamwork well with your franchisor to make the most of your investment in a franchise – A bad relationship won’t help you to achieve this.

A case study of franchisee-franchisor relationship gone bad

I remember a case, in which bad franchisee-franchisor relationship ruin a what-suppose-to-be successful franchise unit.

The franchise unit …

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One of the most logical steps in preparing yourself for franchising is reading as much franchise information as you can. The question is, were to start? Here are some sites that can help you learn more about a certain franchises or franchising as a whole.

International Franchise Association (IFA)

First and foremost, you should visit International Franchise Association (IFA)’s website – Franchise.org. The site contains wealth of resources aimed for franchisors, franchisees, suppliers and investors who look to network, share information and form a partnership.

For franchisors, IFA can help in providing resources that can help them better their franchise business. The resources …

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Franchise and business opportunities, by all means, are different in nature. Yet, so many people have mistaken one with another.

Sadly, the business owners themselves also inaccurately believe that their business opportunities (often referred as BO) are franchises. To make matter worse, potential investors also believe on their claims.

Let us set things straight once and for all.

The difference between a franchise and a business opportunity (BO)

The main difference is the fee being charged for the investors who are interested in the business proposal. Some BO owners charge a fee that resembles a franchise fee – Some called the fee “license fee” and …

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Some enter franchising with a bit too much hope – They dream of cutting their way into entrepreneurship and, since they buy a proven system, success is guaranteed and being filthy rich is on the surest path. The story ends happily ever after.

Unfortunately, if you were one of those people, I have to slap you to wake you from your day dream.

I have mentioned in my previous article that if you are not ready, you better postpone your intention to enter the world of franchising.

Being not ready includes a misconception about franchising and a false hope in becoming rich easily through franchising.…

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There are always pros and cons in franchising. The pros always believe that strong brand name and proven systems are the main benefits of franchising. The cons always believe that franchising is expensive and unfair (benefit franchisors more than their franchisees.)

I am always pro-franchising. However, I can not deny that there are some legitimate reasons why you should not buy a franchise, if you do not have the proper mindset and knowledge for franchising.

10 reasons not to buy a franchise

According to Nolo.com, there are 10 good reasons not to buy a franchise:

1. Questionable profitability
   Most franchise owners don’t show potential franchisee

…

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The basic rule of thumbs in buying a franchise unit is to look for a franchise that suits your interest, personality and management style.

However, a seemingly suitable franchise will not guarantee you any success if it is not great. Being good is not enough – You would not want to invest tens of thousands of dollar on something less than great. What’s more, investing in a great franchise reduces your risks in starting up phase, as well as prolongs the business life cycle considerably.

What make a great franchise?

Here are some guidelines that indicate whether a franchise is great or simply good:

• Offer

…

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When you are looking for a franchise to invest in, you will surely be invited for a short interview to learn why you are interested in one. In some occasions, you may also be invited to take a personality assessment.

The personality assessment held by a franchisor is aiming to profile franchisee candidates in order to determine whether a candidate is suitable or best fit for the franchise. The premise: The best-fit franchisee candidates will likely to succeed. In other words, the franchise units managed by the suitable franchisees will have lower risk of failure.

As I mentioned in Franchise Note’s previous articles, the …

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