It may surprise you to learn that you don’t need to be a computer geek to run a tech franchise. You also need not have a wad of cash in the bank to become involved in a sports apparel franchising business either. Fast food franchises can cost a bit of money to start but obtaining financing is much easier and the risk of failure is also much lower.

While a small business startup results in failure 50-80% of the time, new franchises only fail 5% of the time. Before signing on the dotted line, you’ll be able to read detailed manuals outlining your responsibilities. The only question is what kind of franchise do you want?

Tech ones can be educational, creative or can provide troubleshooting services. In the educational tech franchise opportunity, your staff will teach consumers about software programs like Microsoft Word or Photoshop, typically through workshops or instructional courses.

The creative franchise business helps customers create websites, set up email systems or develop e-commerce solutions for their businesses. Troubleshooting franchises fix hardware or software problems.

Food, either restaurant or fast food, is another type of franchise you might want to consider. In the Franchise 500, 7/10 of the top franchises are fast food franchises such as Subway, McDonalds, Pizza Hut and KFC. Restaurant chains also run very well independently, although they cost a considerable amount to start up.

Some new franchises can cost from ,000 to .3 million. While the responsibilities are plentiful, this type of franchising business can churn a decent profit. Many prefer fast food and restaurant franchises because they have trusted reputations and brand names that have existed for decades.

As with anything, there are downsides to buying a franchise. If you want to operate a store to show off your managerial skills or your creative flair for decorating, then a franchising will not be for you. Your building, location, uniforms, advertising pitches, products and services will all be dictated by the corporation.

They have a proven system that distinguishes their name-brand from the competition, so it’s essential that you adhere to it. Secondly, if you plan on becoming richer than your wildest dreams then the franchising business is not for you.

The profit margin for fast food franchises or retail franchises is fairly low, considering all the expenses and fees, although you can certainly make a decent living from your investment. Lastly, if you’re not sure what kind of commitment you want, then you should probably try something else. Most franchise owners plan to run their business for at least 20 years.

About the Author

A whole world of information about a franchise eagerly awaits you from Mike Selvon portal. We appreciate your feedback at our franchise opportunities blog.

Find More Mcdonalds Franchise Articles

If you are among the many people who want to become a business owner franchising may be the best choice for you! People who start a franchise business have a higher chance for success than those who begin their own independent business. However, even with that said a franchise can still fail. It is important that you choose wisely and do everything in your power to ensure that you are on the right path to success, not the path that leads to failure.

Once you have decided to own a franchise, you must find a franchise that fits you and that you will gain the most from. I will stress that it is critical that you find a type of franchise that interests you. If not, you are wasting your time. You must also find a type of franchise that meets your abilities and skills. If you cannot do what is required, why bother. There are so many types of franchises available; you should have no problem finding one that fits for you. You will have a much better shot at success if you choose a franchise that interests you and that you have the ability to do.

Once you establish the type of franchise you would like to open, you will need to find which franchise you specifically want to buy. For example if you have decided that a restaurant franchise is best suited for you. Then you need find which restaurant you would like to own, like McDonalds, Subway, Sonic, KFC, Denny’s, Buffalo Wild Wings, or the many others that are available. This decision is the biggest decision. This will impact your career as a franchisee.

To avoid failure from the beginning you will need to do your research of each franchise you are interested in pursuing. You can do this in a few forms.

The first thing you should do is establish how long the franchise has been a franchise system. Franchise’s that have just begun their process can still be a great franchise to purchase, they just involve more risk. One of the primary reasons that franchises are more successful is because in most cases they have already worked out the kinks and have already established best practices and systems for operating the company. So, therefore a company that has been around longer will have had more time to work out the small problems. That does not mean that just because they have been a franchise for a long time they are guaranteed to be successful. It is only one thing to consider.

One of the best things to do is to talk with current franchisee’s of the franchise you are considering buying. They will be able to really tell you what is like being a franchisee for that particular franchisor. Remember the franchisor can be biased. It is also important that you talk to a variety of franchisee’s from different areas and so forth to give you the best idea.

You will also want to know how much support the franchisor will be offering to you as a franchisee. This is another reason why franchises can be more successful. They get assistance and support from the franchisor when need. In most cases they will provide the training necessary for your success also.

Make sure to avoid franchise failure from the beginning when you are choosing a franchise and you can own a successful franchise!

About the Author

For more information on an automotive franchise, visit BumperDoc auto body franchise and start your path to business ownership.

Although franchising is widely known to offer aspiring, new business owners the best possible chance of success with the least amount of risk, there are some myths out there that can tend to alienate even the most die-hard entrepreneur. Below, I clear up some common franchise misconceptions that will breathe new life into your goal of owning a franchise business.

Owning A Franchise Guarantees Success. You need to get clear on the myth that by owning a franchise, you absolutely cannot fail. That’s a crock. There are numerous factors, both controllable and uncontrollable, that can determine the fate of your success. However, a huge statistic is in your corner: overall, the success rate of franchising is as high as 95%. Of independent start-ups, on the other hand, only about 2/3 are still in business after 2 years and, sadly, less than half survive 4 years, according to the Small Business Association. No guarantees here, but with a determined effort on your part, franchising is the obvious choice.

Brand Name Means Everything. While you cannot minimize the importance of a highly recognizable brand name, it is only part of the equation. Brand is very significant with burger and automotive franchises. However, there are many franchise categories, some you may not even be aware of, where the brand clearly isn’t the main focus, but that doesn’t translate to a lack of success.

Mr. Handyman, for example, a homeowners and commercial maintenance and repair franchise, has over 300 franchise units across the United States and Canada. The Home Improvement market is huge and continues to grow, with Americans spending more money on remodeling, renovating and decorating than ever before. The brand isn’t a household name like Mcdonalds, but this home based franchise is a highly successful one, with a much smaller investment required.

There are hundreds of consulting type franchises that most people have never heard of by name. Many are extremely successful, with much less overhead, than fast food or automotive franchises.

A significant investment is involved, so the only one getting rich is the franchisor. What a joke. Franchisors absolutely need profitable, successful franchisees to flourish. The fact that ongoing royalties are paid by franchisees on a regular basis indicates that a fair an equitable relationship exists between the two parties, and that the franchise is profitable. If they weren’t, who would pay these fees? A poor performing franchisee will not last very long. The franchising business model is structured specifically so that both the franchisor and the franchisee succeed.

Bigger Is Always Better. Not true, especially in the franchising world. Think about it: would you rather invest every last dime you have into a fast food business, make a decent income, and deal with high turnover, high overhead, theft, worry about what is going on at your store with the brand new teenager that is working the Saturday night shift? Or, would you prefer a home-based service franchise that costs ,000 (or less), allows for plenty of family and free time, and generates as good or even better income than the food business? Most potential franchisees are better suited, and would even prefer, a small franchise with limited, but highly skilled, employees.

Owning A Franchise Means You’re On Your Own. Nothing could be further from the truth. Yes, ultimately, whether a franchise succeeds or fails is the responsibility of the franchisee. However, a huge benefit of being a franchisee is that there is always a support staff, provided by the franchisor, ready to help you with any issue you may encounter regarding your business. Some offer 24-hour call centers. You are most definitely in business for yourself, but not by yourself.

Because the general disposition of our society tends to be negative, positive aspects regarding anything, including franchising, can become distorted. I’ve focused on clearing up five of them here, although there are more, to be sure. Do your research and align yourself with an experienced franchise consultant who can provide you with the necessary facts so that you’re able to make an educated decision about a specific business opportunity.

Find Your Perfect Business

About the Author

Cory Barber is a professional franchise consultant affiliated with the world’s top franchise broker network. His free, confidential consulting services help guide you through the entire process of purchasing a franchise based on your background, skillset, lifestyle, and financial goals. For more information about his free Franchise Consulting Service contact Cory at his office: 877-271-4305.

Related Mcdonalds Franchise Articles

The U.K market is overflowing with numerous franchise companies most of whom have remarkable records of success in the recent past and the year 2008 was not an exception. It is therefore a rather difficult task to identify a click of leading franchises in the U.K. A press release by the republic of Ireland and the Northern Ireland master franchise rights opportunity with FDS in November 2008 is the closest ranking we have on the leading franchises in the U.K.

THE FRANCHISE DEVELOPMENT SERVICE (FDS)

This is an organization that seeks to award the simultaneous master franchise rights for the republic of Ireland and Northern Ireland. It works in tandem with the Norwich U.K (PRWEB) which is another leading franchise consultancy and publishing companies.

THE FDS U.K FRANCHISE INDUSTRY REPORT

This report is based on the findings of a study carried out by the U.K based FDS. It ascertains that there exist over one thousand companies that offer franchise services in the entire United Kingdom. It recognized well over fifty-one thousand company owned and about eighty three thousand retail outlets, restaurants and offices all over the country owned by franchisees.

The above is a representation of a mega variety of retail, food, beverage, and business services opportunities for persons who may not have business foundations to be self employed. Caution is however appropriate to anyone who may be interested in purchasing into the franchise opportunities and establishments as just about three hundred out all these are registered with the British Franchise Association (BFA)

THE BRITISH FRANCHISE ASSOCIATION (BFA)

Is an organization that operates of self set policies which has so far done an excellent job of guiding potential investors to acquire credible franchises? All potential investors are therefore advised to sign up membership with the BFA. This will guarantee success in the member’s franchises. History has it that over 90% of the member franchisees have always been successful.

Statistics also show that way more than eighty percent of franchisees investing in a non member franchise do fail to become profitable even after a period of three years. This is enough proof in my opinion to convince potential investors of the safety in BFA membership.

THE NATIONAL FRANCHISE WEEK

This offers potential investors an opportunity to start their own businesses. The perfect starting point is obtaining a copy of the franchise magazine. This can be found with the whsmith borders or on line at The Franchisemagazine.net. After getting this, you can visit the ukfranchisedirectory.net for a chance to view details of franchisors currently looking for franchisees in the UK marketThe franchise magazine is a publication of the FDS. It contains details of over one hundred genuine business formats as well as franchises such as McDonalds, rosemary Conley diet and fitness clubs, papa john’s, pizza hut, prontaprint, Cadbury’s snack in the box, signs express, molly maid, janiking, coffee republic, and work2go among many other emerging launches including private health franchise samedaydoctor.

Grouping U.K’s leading franchises may not be the easiest task you sure are safe starting with the BFA and the FDS reports for a secure franchise in the UK.

About the Author

Getthebestof.co.uk offers even more information and resources to find an UK franchise opportunity that is ready to succeed in the real world, come and see why we are the fastest growing franchise in the UK, visit us today!

In many ways, franchising is the embodiment of the American dream. Starting a business is one thing, but turning that business into a franchise that spans across entire states, the entire country or even the whole world is something really special. While an international franchise may be the ultimate goal, any franchise is going to start on a smaller scale. The busy economy in the state of Georgia makes it a great place to start.

The method for how to franchise in Georgia really isn’t any different than the method you would use anywhere else. That said, if you’re new to the concept of a franchise you’re still probably going to need a lot of help to get your venture off the ground. That’s where franchise business consultants, such as The Business Network. This company can help provide you with all of the details on complicated matters like franchise disclosure documents and other franchise paperwork.

Before you make the leap into the world of franchising, it’s important to understand exactly what the term means. It’s not in every company’s best interest to start a franchise, so you’ll want to consider the decision carefully. In brief, franchising a business means that you’re essentially selling your business model to another person or group who opens a business that is basically a carbon copy of yours. The fast food chains like McDonald’s and Burger King are the classic franchise examples – they’re each owned by different people but operate on the same principles and use the same recipes.

So before you decide to start a franchise, you should determine if your business would work under that model. The first question is: is there enough demand? If you have an extremely niche business, then it may be hard for your franchisees to get much business for themselves, especially if they’re located too near to your original business. This is even truer if you sell your products online and people can just buy them remotely.

Another concern is name recognition. Part of the reason that franchises can be so successful is because people recognize the name of the original business. This allows a business franchise to spread like wildfire in some cases. It gets popular in one city and people learn the name, so when it opens in a nearby city it already has a built-in customer base. If your original business doesn’t have strong name recognition, then it probably won’t succeed as a franchise.

There are a lot of other important questions to ask when it comes to starting a franchise. Contracting with franchise business consultants can help you figure out the rest and give you an honest answer on whether or not a franchise will work for your business. If it turns out that it will, then they’ll help you file the necessary franchise paperwork and get your franchise off the ground. That’s really just the beginning of the franchising process, but a good consulting firm can help you every step of the way and make your franchise a success.

About the Author

Jason Bryant has many lucrative business franchises which he operates in Georgia. He helps businesses develop concepts into franchises, provides franchise operational manual, franchise disclosure documents, and business plans for franchisors.

Find More Mcdonalds Franchise Articles

Hamburgers were made in a way he had never seen before! They were made quickly, efficiently, with little expense and completely identical. The most incredible thing was that anyone could do it!

He watched teenagers working without supervision from the owners, making sure each customer got exactly what they ordered. In Ray Kroc’s mind, this wasn’t just another hamburger stand, this was a perfectly working money machine!

Not too long after visiting the hamburger stand, he approached the MacDonald brothers to let him franchise their system. Twelve years later Ray bought the brothers out and went on to create the largest retail prepared food distribution system in the world! McDonalds now calls itself the most successful small business in the world, and its true!

McDonald’s revenues grew 27% over the three years ending in 2007 to .8 billion, and 9% growth in operating income to .9 billion. What’s all this have to do with building your home based online business? It has everything to do with it!

Ray Kroc created much more than just an excellent business system. He created a model in which a whole generation of entrepreneurs has used to build their life fortunes. What he did was look at his business as the product,  and the people who he sold franchise rights to as his most important customer.

]]>

It wasn’t about making hamburgers. It was about a perfect money making system that anyone could do to make a fortune. McDonalds became a systems dependent business rather than a people dependent business. It became a business that could work without him.

Ray Kroc went to work on his business instead of in his business. This is where the starting place for any internet business should be. He began to think of his business like someone who engineers a prototype of a mass produceable product. A business that can be replicated in the exact same way over and over again.

I am not saying you have to franchise your business. What I am saying is you need to build your business around systems that will be able to work for you even if you aren’t there. The first thing you need to figure out is what you want out of your business. Your business should be the vehicle that takes you where you want your life to go.

So ask yourself, what do you want your life to look like in two, five, and ten years from now? What is it you value most? What do you want out of your life? What do I want my life to look and feel like? What are your goals for the next couple of years all the way into the next decade?

I realize you are trying to start a business, but this is all a big part of it, and a lot of business owners tend to skip this altogether, and end up failing within the first two to five years. Knowing where you are going is absolutely imperative if your business is going to have any meaning to your life at all.

If your business is going to be the vehicle that helps you realize your dreams, you must know what you want out of your life!

So you need to ask yourself:
What do I want my life to look like?
How do I want my life to be on a day to day basis?
What do I want to be able to truly know in and about my life?
How do I want my relationships to be with other people?
How do I want people to think about me?
What do I want to be doing in two years? Five years? Ten years or even twenty years from now?
What exactly do I want to learn during my life?
How much money will I need to accomplish the things I want to do? When will I need it by?

The answers to these questions become the standards with which you can measure your life’s progress. Without the answers to these questions, your life and business will lack direction, meaning and purpose.

Once you see how you want your life to go, you can then develop a clear statement of what your business has to do in order to take you to where you want to be in your life.

If you are planning to take invest in top franchise business opportunities, food franchise is a good option to consider. Today consumers are health conscious and they always prefer to pay some extra money to have food from some reputable food joint or restaurant. The food sector can present a great opportunity for aspiring investors like you, however, as with any other business venture; it will be a good step to do your groundwork before buying into a food franchise. Think about your strengths and weakness and then look for a good option that matches with your interest and skills.

]]>

Here are some useful tips in how you can make your food franchise business successful:

Go for a brand name: There are end numbers of food franchising companies in the market to choose from. If you are new to the food industry, it is always a better idea to invest in a brand that you are familiar with. For instance if you don’t like burgers and pizzas never invest in such fast food chains. Instant invest in a food brand that you would love to sell.

Maintain the quality: Remember popular food brands are popular due to the quality food served there. Visit any fast food franchise outlet of McDonalds and you will find the same type of burgers there. This is one reason why this fast food franchise brand is popular all over the world. Hence, to make your food franchise business successful always give stress on the requirements of your target audience and try to offer quality food. Remember the quality of your food items will help you enjoy good flow of customers.  

Analyze the market requirements: Before you actually start your own fast food franchise or beverage business it is important to learn as much as possible about the demographic profile of the location where you want to open your food outlet. Having knowledge about the population characteristics in terms of their income, age can help a lot in making the right decision.  

High quality customer service: In any fast food franchise or beverage business outlet there will be hundreds of customers to deal with at any given point of time. So, make sure to pay attention to customer requirements and handle them efficiently. Be ready to render any sort of help related to serving of food. Also check whether your staff members are handling the customers properly or not.

Keep these points in mind while starting a food franchise business or beverage business and you will soon get to taste success.

Find More Mcdonalds Franchise Articles

BUDGET! Investing from ,000 upwards in a franchise? Then budget for having your proposed franchise checked out. Allow at least 6 months and budget around 00 to cover franchise publications, exhibitions, telephone calls, travelling and professional services. A front-end spend to check something that could risk your life’s savings is a sound investment.LEARN! Read, learn about and understand franchising. The Directory helps compare franchisors’ offerings and includes plenty of guidance. Lawyers, accountants, government agencies, franchise consultants and banks also produce advisory publications, while franchise magazines are in plentiful supply in shops.ATTEND! Once you have read about franchising and believe you have a reasonable grasp of what is involved, visit at least one of the annual franchise exhibitions – like the Franchising Expo at Conventio Centre at Darling Harbour Sydney – which also facilitate comparisons of offerings. Plus, they permit face-to-face access to franchisors. Exhibitions also stage advisory seminars explaining franchise practice.

At exhibitions, stop, think, listen to advice and then go away, think again and organise research before reaching for your cheque book. Never invest at a show. Always take some time to study the materials you take home and have your target options checked out by professionals.EVALUATE! Evaluate yourself and make sure you understand what franchising is, what it will demand from you – and that you have what it takes to be a franchisee.

At first, certainly, you may find yourself doing everything related to running your business – that’s if you don’t have a family or partner to help out. Franchisors will only train you, make you operational and support your efforts – they won’t run the business for you!

So make sure you have the ability to implement the franchisor’s formula, to work hard and to persevere until success is yours. Not everyone is honest about their capabilities in the rush to pursue the dream of their own business.CHECK! As you survey the franchise options, plenty of sales talk dressed up as ‘information’ will greet you. So study brochures, prospectuses and research everything – the franchisor’s track record and financial status, protection of intellectual property rights, property obligations, pilot experience, territory rights, training, support resources and profit/loss projections.

Check Yellow Pages to evaluate potential competition in your territory. Assess the number of households or suitable businesses and test some to see how likely it is they will want your service or product.NAME! Part of the franchise for sale fee should reflect the value of the franchisor’s trading name. So ask yourself – is the franchisor’s name better known than your own? An attractive brand name with a lengthy pedigree such as McDonald’s and Donut King is an instant crowd-puller, but if the franchisor’s name is not widely known, ensure you are not being charged too much for using that name.ALERT! Never believe that status is a guarantee. Managing directors, bankers, lawyers and consultants can still tell lies or be negligent.

The brochure, profit projections, advertisements, glossy head office and manuals may look authoritative – but could conceal misrepresentation or weakness.

Don’t accept anything at face value, however prestigious it appears. A long pedigree, big-cash backing, being a PLC, a multi-million turnover or having BFA membership are not guarantees for success, so remain alert.TALK! Access to genuine existing franchisees will provide some of the best information. Spend time with them to see whether the system works in practice and if the franchisor honours promises on training, support, product, market, working capital needs and earnings potential.

Be wary of a franchisor reluctant to give you access to franchisees. This may simply reflect unwillingness to having franchisees bothered in this way, but do try and find out the motive behind refusal. If you can’t get to the root of it, you should consider eliminating that franchisor from your options.BANKS! Although you are advised to consult your bank when weighing up a franchise, remember that this usually relates only to checking the financial projections and that you have the financial resources to cover a loan.

When a banker agrees to a loan for a franchise, this does not imply he has checked the franchise exhaustively and is absolutely satisfied about the opportunity. It mostly means the sums look OK and he sees you as a reasonable risk. So you still need to get professionals to verify that the franchise is sound and will keep its promises.LEGALITIES! The franchise contract, as the basis for your ‘business marriage’, will be your single most important document. It must be studied point by point before any purchase decision. Don’t try to interpret a franchise contract yourself – choose a solicitor with a sound track record in franchising.

About the Author

www.listabusiness.com.au

According to American Association of Franchisees and Dealers (AAFD) Chairman Robert Purvin, who launched the organization’s Advertising Super Bowl survey 21 years ago, “Super Bowl advertising continues to demonstrate the power of franchising. How else can small business owners afford to share their messages with almost 100 million households at one time?”

FOX reportedly charged a record average price of .7 million per 30-second spot (,000 per second). The higher cost didn’t seem to impact advertiser demand as FOX had reportedly sold its available inventory a week before Super Bowl XLII game day. The total number of spots played during the game earned FOX an estimated 0 million dollars. Budweiser again led all advertisers with 9 spots, earning it exclusive rights to broadcast during the game and shutting out competitors Miller Brewing and Coors for the first time in years.

Yet for a single spot of .7 million, the advertising cost for a ubiquitous franchise such as McDonalds (who aired just one ad this year) breaks down to under 0 per store when divided between the approximate 15,000 US restaurants in the chain. “The collective marketing power among franchised businesses is formidable,” adds Purvin.

After Anheuser-Busch, only six advertisers ran more than one or two commercial spots. Pepsico was second to Budweiser, buying several minutes of ad time among its franchised soft drink brands and its non-franchised Frito-Lay brands (primarily Doritos). Ford ran several spots during the game as well during the Pregame show. General Motors, Honda and Toyota (all product franchisors) each ran three spots for various brands. Just one cooperative network, California Cheese, advertised; in the past cooperatives like Ace Hardware and the Almond Growers Association have been active, but this year they stayed away.

Business format franchisors — those of which consumers traditionally associate with franchising – accounted for just 11 commercials (one fewer than in 2007, but down more than 50% from prior years), including spots from McDonalds, Taco Bell, Pizza Hut, Cars.com, and regional entries (on the West Coast where the survey was conducted) from Jack-in-the Box. The business format segment was far more active in the pre- and post-game markets.

Franchisors were even more dominate in the pre and post game markets, including a strong showing of business format franchises (who ran 29 spots out of the prime time slots, and increase of 20% from the prior year). The AAFD survey counted 135 spots during the 4 hours of programming before and after the game presentation. 82 ads were placed by franchisers compared to 53 by non-franchisers. Subtracting 20 FOX pregame promotions and a dozen political ads in advance of Super Tuesday primary elections, there were 21 more franchise related spots than non-franchised, the highest ratio in several years.

Between 2:00 p.m. and 10:00 p.m. Eastern time, consumers were ‘treated’ to almost 2 hours and fifteen minutes (approximately 266 thirty-second ads), 62% of which were placed by companies engaged in franchising (164 30-second spots, compared to 102 non-franchise sponsored spots). This was about the same ration as 2007.

Manufacturers led the non-franchised segment with 15 ads, with several from pharmaceuticals. Motion picture promos ballooned to 17 spots during the pregame and game periods, up significantly from last year. Nine retail businesses aired ads during the 7 hours of broadcast—this was a virtually non-existent segment the last two years.

During the game approximately 57 different companies advertised, plus three public service announcements. Bridgestone Tires sponsored the half time show, while Amp Energy Drinks (Pepsi, Salesgenie.com, Chase Bank, Chevrolet, Taco Bell, Pizza Hut, and State Farm Insurance each sponsored segments of the 4-hour pregame show. Cadillac sponsored the short post game festivities.

This year’s crop of ads were less striking than past years, with no candidate seemingly destined for the Super Bowl Ad Hall of Fame, although E-Trade’s infant stock trader was quite clever. Three other memorable ads were delivered by Budweiser (with a Clydesdale ‘Rocky Balboa’) and by Coca-Cola.

About the AAFD

The American Association of Franchisees and Dealers is the oldest and largest direct member non-profit trade association representing the interests of franchisees and independent dealer networks throughout the United States. Stressing market solutions and franchisee empowerment through independent franchisee associations, the AAFD has grown to represent more than 60,000 franchised businesses nationwide.

Formed in 1992, the AAFD is focused on market driven reform to achieve its mission to define and promote collaborative franchise cultures that the AAFD describes as Total Quality Franchising. Since its formation the AAFD has grown to represent more than 50,000 franchised businesses throughout the United States. The AAFD currently has members in all 50 states and represents more than 100 different franchise systems.

The AAFD’s Fair Franchising Standards, Fair Franchising Seal, Trademark Chapters, and emphasis on Marketplace Solutions led to the Association’s recognition as a growing force in franchising. The AAFD’s Branded Partner programs add a new dimension to the value of AAFD membership. The AAFD provides a broad range of member services designed to help franchisees build market power, create legislative support of interest to franchisees, provide legal and financial support, and provide a wide range of general member benefits.

For more information about the conference or the AAFD, please call toll free – 800-733-9858 or visit www.AAFD.org.

As I was reading through this excellent information, I came to think about what is important when picking a franchise? I thought it may be a good idea to tag on some key questions to get clarity on  before venturing out and investing a lot of your money in any franchise concept. This is not a comprehensive list, but a list of key questions; a list of questions, that many people tend to overlook. You need to do a lot more research before signing on the dotted line.

1. What is the Name Recognition of the Franchise?

Franchises work well, when there is great name recognition among the target market. Everyone knows about Subway, McDonalds, and many other franchises. However, before you buy a franchise with little or no name recognition in your area or market, ask yourself, how much leg work are you willing to do to build your business, while still paying royalties and franchise fees. If a franchise has little or no name recognition, launching it will almost be identical to launching a brand new business.

2. What is the Success Rate of the franchisees?

Don’t just believe the numbers the Franchisor will tell you. Many franchisors have ways to make the success rates of franchisees look better than it actually is. Remember, if they are not telling you the average success rate, or are trying to avoid the question, chances are they are not willing to tell the whole picture. A franchise that is well run and established should have no reason to hide this data or artificially inflate the numbers. The success rate of any franchise concept should be significantly higher than that of a regular start-up.  In fact a well run Franchisor should be proud of the success rate of their franchisees. But always remember, that you are still the owner of the franchise and it is up to you to make it work. The franchisor can and will give you no guarantee of your success.

3. What Are they Doing to Help you Market your Business?

As a potential franchisee it will be your responsibility to market your business. You cannot expect the franchisor to do all the marketing for you. However, there are some things that you should expect from a franchisor. Ask what they are doing to promote the name of the franchise in your area or target market. If you are paying marketing fees as part of ongoing payments, ask how these fees will benefit you. If you have to spend 5% of your revenue on marketing fees, it makes no sense, if none of that money will be used to promote the name of the franchise in your territory.

4. What exactly are you buying?

Prior to signing with any franchisor, do some research and ask yourself, what you actually get from spending a lot of money to buy the franchise. Are you getting name recognition? Are you getting intellectual property? Are you getting Marketing Support? Are you getting help with your lead generation? Is the concept of the franchise mature enough so you don’t have to constantly innovate the product or service on your own? Unfortunately, there are businesses out there that decided to franchise their concept too soon, and the franchise system is not matured. As a result, you will have to perform a lot more entrepreneurial tasks than with another, more mature franchise. Yes, you will get in on the ground floor of the business opportunity, but you also will have to do a lot more leg work.

5. Are you a good fit?

If you are buying a fast food franchise, are you going to be happy with the industry? Can you see yourself helping out in the business as you are starting out? If you are buying a service company, are you the “product” the company sells? In other words, will you be selling services provided solely by yourself? In that case, be aware, that you are selling your own time. This is okay as long as you are aware and content with this.

The most important question you need to ask yourself:

CAN YOU DO IT ON YOUR OWN? If your answer to this question is yes, or maybe, you should investigate what it would take for you to start a similar business on your own without franchise fees and royalties. If you have what it takes to be do-it-yourself entrepreneur, you may not be happy with any franchise. Remember, a Franchise will put constraints on you in terms of what you can and cannot do. If you have no issues with that, you may be a good franchise candidate.

Related Mcdonalds Franchise Articles