When one is looking at a franchise it is important that one do the research so that they know what they are getting into. A little homework at the beginning will avoid surprises down the road. You want to go into the opportunity you select with both eyes open. 
Doing Research on a franchise Opportunity
No franchise is perfect.

Tips to help you select the best spot for your new business.

The topic of finding a good location and then negotiating a favorable lease is one that all franchisees face when they are in a site-based franchise system. Because most new franchisees do not have any experience in finding a location, they can experience significant anxiety if the proper assistance is not available from the franchise company.

In becoming a franchisee, you are about to invest a large portion of your valuable time and money as a new business owner. Therefore, you should make sure that you are doing everything possible to fully understand the deal before you invest. In order to do this successfully, it is highly recommended that you hire an attorney specializing in franchise law.

Owning a franchising business can offer you brand awareness, trustworthiness and consistency that can take years to build up for any new business. It can be one of the easiest and most successful methods of entering the business world, however don’t think of it as an easy ride. A franchise takes a lot of hard work and dedication to make it a success and you have to find the right kind of franchise opportunity for you.

When investigating a franchise opportunity, many people make several very basic mistakes, based on common assumptions or misconceptions. If you are looking into this possibility, whether you have found a possible franchise or have not yet even started looking, it may be wise to spend a little while asking yourself some basic, but very important questions before deciding just how appropriate such a venture will be for you.

Franchising is booming. Here are the right questions to ask when evaluating franchise opportunities.

Franchise businesses such as Wendy's, McDonald's and Jack-In-The-Box are booming. The people setting up franchise ideas and businesses know a good thing, and are really promoting this idea. Franchises for just about every conceivable kind of business are being sold in ever increasing numbers.

So you want to be your own boss? Well you should know that 90-95% of most independent small businesses fail in the first 5 years. One of the key reasons for business failure is lack of capitalization. One method of beating this failure rate is to buy into a proven business system or plan. How do you do that?

Name: Carina Mäkelä

Professional background: Research & Marketing (private and NFP sector).

This is an interview with a lady who has done her homework in investigating the opportunity that franchising will provide her in starting up her own business. She won a free copy of my e-book in the competition I ran last month.

Buying a franchise is a major investment. You should expect to draw on almost all of your financial resources and/or take on additional lines of credit. Before start talking to franchisors, have these questions answered:

-What is your net worth? How much of that is liquid (accessible cash)?

Know your rights--and limitations--in disputes with franchisors.

Q: I'm a franchisee of a retail specialty chain. For the past three months, I've been selling a new product I found through one of my local vendors. My customers are thrilled with the new product, and it's selling very well. My franchisor's field representative was in this week and told me the product was not authorized and that I had to stop selling it immediately.

Have you ever wondered what it would take to leave the corporate world behind and own your own business? Are you tired of being the go-to girl, a small fish in a big sea, earning money for someone else?
Is it time to take charge of your future and really be in control of
your destiny?

If you answered “Yes” to any of these questions, then you’ve thought about business ownership – but something has stopped you from moving forward.

The primary benefit of franchising is that it leverages the brand and experience of a successful business concept, while the main drawback is the tight control franchisors exert over their franchisees.

Pros
The franchise system provides the benefits of a big company to an individual businessperson. These include:

Many franchise buyers want to get in on the ground floor of the hottest new franchise that is available. They see that the company is selling the franchises like hotcakes and they want to get in before the franchise is sold in their area where they live. But you must be very careful about buying franchises that are part of a Fad and not part of a long-term trend.

Product recognition has never been more important than it is now. And this includes the restaurant and food services industries. Statistics show that, come mealtime, fast food is the first choice of hungry people all over the world, and these numbers are only on the rise. In an economy where few markets are growth markets, it only makes sense to buy into one of those showing increased profits.

A proven business model that has stood the test of time
Franchising really began to blossom in the post-war 1950s and 1960s. Franchisors of convenience goods and services seemed to be popping up on every corner. McDonald's, Kentucky Fried Chicken, laundry services, dry cleaners, hotels, and rental car franchises flooded the marketplace.

"Franchising works by combining the drive and energy of the entrepreneur with the experience and expertise of the franchisor."

This wonderfully concise description of franchising comes courtesy of a franchisor from Down Under: Jesters Franchising, purveyor of Jesters Jaffle Pies (all-natural meat, vegetable, and fruit pies) with 50 units in New Zealand and Australia.

The thought of being your own boss can sound pretty wonderful to someone tired of working 50 to 60 hours a week to make money for some impersonal corporation. And there is probably no better way to be self-employed than by Buying a Franchise and taking advantage of all that Franchising has to offer: a tried and proven business model, initial and continuing

An important aspect to consider when talking to potential franchisors is that they are evaluating you, as well. While you are paying hefty fees for the right to use their name, they are entrusting you with their image and investing time and effort in your success. If they lack confidence in your ability to run a successful franchise, they can turn down your application.

Buying a franchise opportunity from a company with a track record of success is no guarantee that your particular franchise will succeed. Before making your decision, you need to research the industry you are considering and the specific companies selling franchises.

First, narrow down your shopping list by considering which industries your natural interests and skills align with.

Virtually every article dealing with the promotion of positive franchise relations places the responsibility upon the franchisor.

In an effort to maintain positive relations with its franchisees, the franchisor is advised to maintain ongoing and open communications and to seek franchisee feedback on a regular basis.

Anyone seriously considering the purchase of a franchise will ultimately have to decide if a "service" franchise or a "retail" franchise is a better fit. It's an important distinction in terms of both entry requirements and operational realities, and it's a decision that can determine your ultimate effectiveness as a franchise operator.

When buyers choose to purchase an existing franchise they can enjoy the benefits of regional or national recognition as well as a history of revenues and profits from the location. Buying an existing franchise is somewhat different than buying any other type of business because you are essentially purchasing the business from the seller (franchisee) and the rights to the franchise from the franchisor (company that owns the franchise.)

Buying and operating a Franchise is different than most of the other purchase or investment decisions you will make in the course of your lifetime. You are getting a business that you will run using a more-or-less established system, not purchasing something physical like a car or a house.   Here are some points to check when considering a  franchise.

Many people who have decided to go into business for themselves recognize that they do not have all the skills and experience they need to get started on their own. Others are not willing to risk their life savings and financial security on an unproven business idea. Still others do not have enough money to start a business on their own and need to obtain financing for any new venture.

You've just finished attending Discovery Day and you like what you've witnessed in this final installment of the franchise courting process. You've decided this is the franchise for you. You sit down with the franchisor at the end of the day and he brings the franchise agreement to the table. There are a few things you should know.

How can you talk about site selection without mentioning "location, location, location"? There, we did it. Now, let's dig deeper.

(Note: This is targeted to franchisees who need a retail storefront, office, or other physical location. Franchisees with a home-based or mobile concept can focus on the challenges involved in those franchise models.)

Becoming a franchisor falls squarely in the realm of business strategies that aren't for the squeamish, yet a handful of Ozarks companies have mastered the art of franchising - with the occasional misstep here and there, of course.

Building a successful franchise that's easily replicated in other markets is no simple feat, and Springfield-area businesses providing corporate support to a growing number of franchisees have learned lots of practical lessons.

I still get asked what seems like an age-old question: Are entrepreneurs born or made?

Let me start by making it clear that entrepreneurship is not in our genes. While some have tried to demonstrate that there is something innate that leads people to pursue entrepreneurial careers, there has never been a study that has found any link between our nature and entrepreneurial risk-taking.

Multi-Unit Operators Are New Majority in Franchising and Private Equity Firms Are Now Major Source for Funding

SAN JOSE, Calif., May 28, 2009 - Franchise Update Media Group (FUMG), the leading industry resource for franchise development, reports that for the first time, multi-unit franchises are the new industry majority, providing growth opportunities in these times of economic uncertainty.

One of the most significant trends in franchising over the past 15 years is the emergence of ex-corporate executives as new franchisees. This trend began in earnest with the downsizing of the early '90s, and has continued steadily--corporate layoffs of white-collar workers have become a way of life in large companies.

As a franchise sales consultant and an individual who grew up with a franchise business (my family owned a Dunkin Donuts for over 2 decades) I am often asked what type of franchise business I would personally recommend to buy. Although all franchise business categories have their inherent advantages and disadvantages, my personal preference would be to buy a service related franchise concept for a number of reasons.

It used to be that when someone turned 55, he or she was considered on the downhill slide into retirement. But today, 55 is the new 35. People in their 50s now realize they’ve got a lot left to offer and experience, and they’re spending their time not thinking about retirement, but figuring out what they want to do with the second half of their adult life.

As any franchise organization grows and develops, it's critical to maintain adequate levels of support, in all forms, to both new and existing franchisees.  While franchise management can offer the best concepts, product lines and brands, without the support of a franchisee action plan to make current franchisees profitable, franchisee success and corporate growth will suffer.

Before investing in any franchise system, be sure to get a copy of the franchisor's disclosure document. Sometimes this document is called a Franchise Offering Circular. Under the FTC's Franchise Rule, you must receive the document at least 10 business days before you are asked to sign any contract or pay any money to the franchisor. You should read the entire disclosure document.

At an International Franchising Symposium in London, Peter Holt made the bold statement to his audience of Franchisors that they needed to understand that their business would fail, and in fact all businesses are bound for failure. Needless to say, there were a few shocked faces in the crowd. He was making the point that it really is just a matter of the number of calendar flips before time strangles any business.