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Digg it UP - Finding the Right Franchise
Remember, the few days back there was a zero size in clothing, but you may get shocked if you find size smaller than zero. It’s true – now fashion designers are coming up with collections sizing minus zero.Don’t have an idea of a minus-zero size women? Well, a good example is the soccer star’s wife Victoria Beckham, who has ideal body to easily fit into a minus-zero size. According to one newspaper, her waist is nearly 23 ? inches. However, the fact is that the population of sliver in America is getting lesser day by day, while the rest are growing in girth and clothing size. American women are ce
Third, franchisors with longer track records have more established training and support programs. While you might save a few thousand dollars buy getting into a franchise early, chances are you won’t get much for your investment. New franchisees haven’t had the time to put together development support or training programs or marketing campaigns. Also, if you are one of the first buyers, you are the guinea pig which often means more risk. Maybe a new food concept works great in a mall food court or maybe it doesn’t? Wouldn’t be nice if you weren’t the one who had to run the experiment?
3. Strong, independent franchisee association
There is a story about a man who was traveling in the desert. His travels had been long and the days had been hot. He came upon a small brook trickling through a small oasis. He desperately sought a drink to refresh himself, but noticed the largest pool (which was small by any standard) had a scorpion clinging to a small rock on the side of the brook.It seems that the scorpion had fallen into the water and was having difficulty getting out. With the scorpion in the water the man had no real choice but to remove it just to get a drink.Being a kind man he sought to remove the scorpion from th
Here are SmarterFranchise’s signs of a great franchise concept.
1. Multi-unit Ownership
The proof is in the pudding. The best indication that a franchisee is happy with his business is if he spends more money to purchase another unit or an additional territory. The logic is the same as why Honda has such a strong reputation in the car market. If your uncle Jeff has bought three Accords in a row, Honda must be doing something right.
For the most part, multi-unit owners start with one store which becomes so successful that the want a second and so on. In order to finance a second store, a lender will examine the first store’s cash flow. If a franchise wasn’t financially viable, it would be nearly impossible to open additional units.
Multi-unit ownership is also an indication of operational efficiency in a concept. With some franchises, there is so much work that is impossible for the franchise owner to focus on anything but day to day operations. The book, “The E Myth” talks extensively about this trap of getting stuck “working in your business” vs. “working on your business.” Even if you never plan to open multiple units, this is an important characteristic, because more likely than not, you would eventually like to retire or at least take a vacation one day.
Be wary of franchise owners who explain low multi-unit ownership by suggesting franchisees make enough money with just one unit. If there is one thing history has shown, people rarely decide they have “enough” money.
2. Proven Franchisor Track Record
There are three items to think about when examining the franchisor’s track record. The first is an understanding of how much risk there is that the franchisor might go out of business. Unfortunately, many of the 2,500 franchise concepts available just won’t make it as sustainable businesses. If you purchase one of these concepts, you may lose much of your investment.
Second, the franchisor’s track record should give you an indication about the quality of the concept. Did the franchisor own several successful stores for many years before deciding to franchise his concept or did he just decide one day that there was good money in franchising so he better come up with a concept.
Third, franchisors with longer track records have more established training and support programs. While you might save a few thousand dollars buy getting into a franchise early, chances are you won’t get much for your investment. New franchisees haven’t had the time to put together development support or training programs or marketing campaigns. Also, if you are one of the first buyers, you are the guinea pig which often means more risk. Maybe a new food concept works great in a mall food court or maybe it doesn’t? Wouldn’t be nice if you weren’t the one who had to run the experiment?
3. Strong, independent franchisee association
U
Corporate Investment Recovery ProgramsEvery business eventually has items they no longer need. For some businesses this may be machine tools, processing lines, and even complete plants, while for others it’s overstocked inventory, end of life products, computers or vehicles. Most everything that flows through the billion dollar purchasing channels and supply chains of the world will some day be discarded or sold. In some situations these items may be relatively new and still in original packaging or recently installed, while in other cases the asset may be 50 years old a
For the most part, multi-unit owners start with one store which becomes so successful that the want a second and so on. In order to finance a second store, a lender will examine the first store’s cash flow. If a franchise wasn’t financially viable, it would be nearly impossible to open additional units.
Multi-unit ownership is also an indication of operational efficiency in a concept. With some franchises, there is so much work that is impossible for the franchise owner to focus on anything but day to day operations. The book, “The E Myth” talks extensively about this trap of getting stuck “working in your business” vs. “working on your business.” Even if you never plan to open multiple units, this is an important characteristic, because more likely than not, you would eventually like to retire or at least take a vacation one day.
Be wary of franchise owners who explain low multi-unit ownership by suggesting franchisees make enough money with just one unit. If there is one thing history has shown, people rarely decide they have “enough” money.
2. Proven Franchisor Track Record
There are three items to think about when examining the franchisor’s track record. The first is an understanding of how much risk there is that the franchisor might go out of business. Unfortunately, many of the 2,500 franchise concepts available just won’t make it as sustainable businesses. If you purchase one of these concepts, you may lose much of your investment.
Second, the franchisor’s track record should give you an indication about the quality of the concept. Did the franchisor own several successful stores for many years before deciding to franchise his concept or did he just decide one day that there was good money in franchising so he better come up with a concept.
Third, franchisors with longer track records have more established training and support programs. While you might save a few thousand dollars buy getting into a franchise early, chances are you won’t get much for your investment. New franchisees haven’t had the time to put together development support or training programs or marketing campaigns. Also, if you are one of the first buyers, you are the guinea pig which often means more risk. Maybe a new food concept works great in a mall food court or maybe it doesn’t? Wouldn’t be nice if you weren’t the one who had to run the experiment?
3. Strong, independent franchisee association
During the late 1950s there went the story of Lycra that remained almost unknown until 20 years further. Inventive things mostly have the lengthier period of commencement. But the most fortunately the people over the world have now adopted cotton fabrics that are specially designed to protect the bodies from the commuting strain.For easy and comfortable travel conditions these days we have Waterproof, wrinkle proof and in some of the case even the temperature proof Travel wears. The fabric that adjusts according to the wearer's body temperature makes the traveling between the different climatic ar
Be wary of franchise owners who explain low multi-unit ownership by suggesting franchisees make enough money with just one unit. If there is one thing history has shown, people rarely decide they have “enough” money.
2. Proven Franchisor Track Record
There are three items to think about when examining the franchisor’s track record. The first is an understanding of how much risk there is that the franchisor might go out of business. Unfortunately, many of the 2,500 franchise concepts available just won’t make it as sustainable businesses. If you purchase one of these concepts, you may lose much of your investment.
Second, the franchisor’s track record should give you an indication about the quality of the concept. Did the franchisor own several successful stores for many years before deciding to franchise his concept or did he just decide one day that there was good money in franchising so he better come up with a concept.
Third, franchisors with longer track records have more established training and support programs. While you might save a few thousand dollars buy getting into a franchise early, chances are you won’t get much for your investment. New franchisees haven’t had the time to put together development support or training programs or marketing campaigns. Also, if you are one of the first buyers, you are the guinea pig which often means more risk. Maybe a new food concept works great in a mall food court or maybe it doesn’t? Wouldn’t be nice if you weren’t the one who had to run the experiment?
3. Strong, independent franchisee association
If you are looking to start your own business or are already in business, here are my TOP 7 picks and tips.TIP #1: Never…Ever…Quit.Running a business is not easy and you will have plenty of frustrating moments. The most important thing to know and practice is to NEVER EVER QUIT. No matter how bad the situation may seem like and how bad you look at things, you must NEVER QUIT!TIP #2: Step Out of Your Comfort Zone.If you want to have a successful business, you have to make the decision to step out of your comfort zone. If you got to do things that you are not used to and this wi
There are three items to think about when examining the franchisor’s track record. The first is an understanding of how much risk there is that the franchisor might go out of business. Unfortunately, many of the 2,500 franchise concepts available just won’t make it as sustainable businesses. If you purchase one of these concepts, you may lose much of your investment.
Second, the franchisor’s track record should give you an indication about the quality of the concept. Did the franchisor own several successful stores for many years before deciding to franchise his concept or did he just decide one day that there was good money in franchising so he better come up with a concept.
Third, franchisors with longer track records have more established training and support programs. While you might save a few thousand dollars buy getting into a franchise early, chances are you won’t get much for your investment. New franchisees haven’t had the time to put together development support or training programs or marketing campaigns. Also, if you are one of the first buyers, you are the guinea pig which often means more risk. Maybe a new food concept works great in a mall food court or maybe it doesn’t? Wouldn’t be nice if you weren’t the one who had to run the experiment?
3. Strong, independent franchisee association
If you've ever held a brainstorming session to come up with new product names, you know that it is usually not hard to get people to attend. In fact, such meetings generally start off with a lot of enthusiasm and elation. This quickly fades though as the cold reality sets in. Naming a new product is really difficult.Naming a product is about as close as you can get to having a root canal without going to the dentist. Even done well with an expert team, it's an exercise in pain, frustration, and disappointment.Nevertheless, there are some things you should know about the process.First
Third, franchisors with longer track records have more established training and support programs. While you might save a few thousand dollars buy getting into a franchise early, chances are you won’t get much for your investment. New franchisees haven’t had the time to put together development support or training programs or marketing campaigns. Also, if you are one of the first buyers, you are the guinea pig which often means more risk. Maybe a new food concept works great in a mall food court or maybe it doesn’t? Wouldn’t be nice if you weren’t the one who had to run the experiment?
3. Strong, independent franchisee association
Unfortunately, the unspoken reality is that the franchisor’s and franchisee’s interests aren’t always aligned. Eventually, there will be disagreements over finances, marketing programs or development issues. Knowing that issues are sure to arise, it is helpful to know that you will have an organized group of franchisees who can relate to your situation. Independent associations have many benefits. In addition to creating leverage for the purpose of negotiating with the franchisor, an association also can improve communication among franchisees. Independent associations also allow members to pool resources to hire competent professionals such as lawyers or financial advisors or marketing consultants. Finally, like with any organization, a collective, institutional memory is created. The AFA has an excellent article on associations on its site.
It is also a negative sign if the franchisor goes out of its way to discourage an association. It usually means that the franchisor does not have the franchisees best interests in mind and is afraid of having to deal fairly with franchisees.
In addition to independent associations, franchisees may also develop a co-op to purchase goods at a discount or control a portion of the system’s advertising budget or develop a lobby group for a specific issue. All of these our good signs.
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