FAQs about Franchises
There are many questions that go along with getting yourself into a franchise operation. If you are the owner of the franchise then you particularly want to know all the specifics about owning a franchise, so here are some questions and answer that many people will typically ask the company directly in order to know where to begin first.
Franchise Question #1: How Much Capital Do You Need?
Answer: The most obvious concern that one should think about before approaching a company for one of their franchise businesses is how much startup capital they will need. Most of the time this answer will be laying right out in the open, but it's okay too if one decides to approach the company directly and ask how much he or she will need. Many times the company will have a startup capital requirement, but then again some companies are only concerned about getting their fees that are associated with a franchise being able to use the company name, logo, and reputation. On the same note, it would be a good plan to pay the startup or initial fees of the company with cash instead of relying on a business loan for the money. Considering the fact that many franchises will need to get business loans anyway for all types of supplies and other necessary furnishings the best route to take would be to essentially pay for your franchise with cash!
Franchise Question #2: Where Will You Get Supplies?
Answer: Perhaps the next thing that a franchise owner will want to know before he or she actually starts opening the business is where the supplies will come from. When dealing with company headquarters there are many different rules and regulations that are associated with each type of franchise. Some companies will require the franchise owner to purchase the supplies, such as seating, chairs, and cash registers from a specific company that furnishes all of their company's store branches, but there may be other companies that have real loose guidelines about the whole issue. One must make sure, though, that he or she knows all the ins and outs of furnishing the store with supplies before any agreement is ever made!
Franchise Question #3: Am I required to Advertise?
Answer: This is a very important issue in and of itself. Many would-be franchise owners don't realize this, but the advertising that is done for the franchise is actually done by the company itself! Some of the fees that are required to be paid by the franchise include advertising fees, and these advertising costs and fees are supposed to be used by the company in order to generate advertising and marketing for the franchise itself. Such advertising methods may include special discounts that are given on a monthly basis, coupons that are placed in newspapers, and customer appreciation days. Of course, if the franchise is allowed to advertise in whatever way the owner sees fit then no advertising fees may have to be paid, but knowing what exactly is required is of utmost importance before advertising for the franchise itself!
Choosing a Franchise
There are hundreds of options to choose from when it comes time for you to decide to open up a franchise of your own, but there are some important considerations that one must think about prior to doing so. Even though it may seem important to you to jump right into a franchise opportunity with both hands tied behind your back, being so careless about owning a franchise is just one way to enable a failing franchise from the outset! Nevertheless, many people do jump into purchasing a franchise of a company before they really think about what type of a franchise they truly should be running. If you are one that is prone to quick thinking decisions then here are some things about choosing a franchise that you should consider:
Even though you've probably heard over and time again that it is very important to think about your interests when opening a franchise, this could very well be an indicator and predictor of whether or not your chosen franchise will sink or swim! Do you want to own a restaurant franchise? Is opening up a restaurant franchise something that you will be able to keep up for years on end? Even though franchise opportunities, such as upscale restaurants like The Olive Garden, The Golden Corral or another company may seem like a very profitable direction to take, you may not feel like owning the franchise is ten to fifteen years, although many franchise contracts usually require a minimum of twenty years.
Indeed, then, it is truly important to think about what you like doing in your spare time that should lead you to what types of franchise opportunity that you want to open up. For example, if you love watching sports games on television than you may just think about opening up your own sports memorabilia franchise so that you'll be able to watch and be surrounded by the things you love all day long. On the other hand, if you love working with cars then perhaps opening an automobile accessory franchise is the thing for you. In the end, spending time with things that you are passionate about is very important so as not to get too burnt out on the work that you have to do each day in order to make the franchise survive!
Opening your own Store!
Even though owning a franchise can seem like a tempting option to choose, another avenue that many people overlook before heading to the franchise aisle is to open up their own business. There are many advantages to owning your own business rather than having a company franchise, and some of the benefits include being able to dictate what you will do with your own store, as well as how you'll decorate the company store you've created!
All in all, these are some of the most important things to think about when it comes to opening up your own franchise and possibly starting a company of your own. Many people open up franchises everyday with the intent to succeed only to find out later that they are about to close up shop! Finding a franchise opportunity that is good for you will definitely help you in the long run!
is a franchise in your future? what to consider-
The Franchise Partnership
As mentioned, owning a franchise takes a great deal of financial equity and responsibility. This is something that many people are ill-equipped to handle even though they may want to own the franchise all they want! On the other hand, a franchise partnership may be just the option that they are looking for. As in any partnership, a franchise partnership relies on both people being involved in the business. One party makes half of the financial commitment while the other party makes the other half. Of course there could be various other business agreements as well, such as one party may make the sole financial commitment to purchasing the franchise in exchange for the majority of the profits for a time.
Franchise partnerships can be a great way to getting around owning a whole franchise by yourself and it definitely allows one to have greater freedom and relaxation in the things that are done. For example, instead of having to hire everyone by yourself in order to run the franchise then your partner will be equally as responsible for helping to hire managers, assistant managers, and other employees.
On the flip side, though, as quickly as a franchise partnership is made it can also be destroyed. If you have ever heard the saying that it only takes "one bad apple to spoil the batch" then this is definitely true here. Even though one person of the franchise partnership may be in the business for real and conduct him or her self in an honest way, there are plenty of other individuals who may just be interested in making a quick buck and then pulling out! This can be especially disconcerting if the person who ends up negating the contract was the one to have the least amount of financial obligations toward the franchise business.
All things considered, though, franchise businesses are a perfect opportunity for anyone who doesn't want to own a whole business by himself. These opportunities provide an excellent way for two or more people to be involved so that the responsibilities and obligations, financial or otherwise, don't all rest on one pair of shoulders or in one single back account!
Fast Food Restaurant Franchises: Good or Bad?
Among the many different stores and companies that potential franchise owners have at their disposal to choose from, one route that is very frequently called upon is the fast food restaurant franchise opportunity. There are all sorts of good and bad sides to owning any franchise, but it seems as though the example of a fast food restaurant exaggerates those two sides. Nevertheless, if you have ever wanted to know more about owning a fast food franchise then here are some good and genuine guidelines to follow, but on the other hand each individual has to do what he or she wants and desires in the end.
Owning a McDonald's or Burger King
Even though you thought that you might never see the two fast food giant's names in a line only separated by a small two-letter word, McDonald's and their rival Burger King are actually two of the most popular fast food franchise opportunities in the world today. There are so many great things about these two companies, but on the flip side there are also some things that many people would rather leave alone when considering opening a franchise. For starters, these two companies already do have a large-sized customer base so franchise owners will not need to worry about attracting a loyal customer base.
On the other hand, though, there are so many fast food restaurant franchises, such as McDonald's, that are starting to get a bad reputation because of the horrible service that is received. Along with opening up a franchise also comes expectations and reputations, so opening up a franchise that already has a bad reputation may not be the best thing to do. In addition, plenty of fast food restaurants (not just McDonald's) are starting to receive bad customer ratings because of the service and messed-up orders that are continually thrown out the window!
The Good about your Franchise
Of course there are plenty of good things as well about owning a fast food restaurant franchise. Perhaps the best thing that people love about owning a McDonald's or a Burger King or even a Wendy's Hamburger joint, though, is the fact that they'll be able to receive generous profits probably within the first year as well! Considering the fact that many McDonald's franchise owners actually make a profit of more than one million dollars each year just shows how profitable fast food restaurant franchises can be. But perhaps the profit side of owning one of these stores is about the only good thing of owning a fast food restaurant franchise, but how much more could you ask for? With over a million dollars at your disposal (or close to it with a lot of fast food franchise locations) each year, chances are that you'll have enough resources to ask for more help, if needed.
Nevertheless, the good and the bad of owning a fast food restaurant franchise should be examined. If you think that this is the opportunity of a lifetime then chances are for you it will be a good venture. On the other hand if you start to smell rotten eggs in the franchise opportunity then the best thing to do would be to stay away!