"In 2010 Franchising will be the most successful way of market expansion." - J. Naisbitt

So what fits YOU better - a traditional franchise or a virtual franchise?

If you can say YES to 7 out of the following 10 questions, then a TRADITIONAL franchise may be a good opportunity for you!

Significant numbers of established franchises are offered for re-sale in the franchise industry. Owners sell for a variety of reasons such as: cashing in for retirement, spouse job relocation, family circumstances, health issues, other business interests, narrow margins because of poor management and banker pressure. These present opportunities for buyers. In our 2009 economy asking prices are down and terms are loose.

Thinking of buying a franchise, but don't know what you need to know before you go into it? Don't worry; we're here to help with some essential questions that you'll want answered.

There's a ridiculous amount of franchises that people can buy into; some are good, some are bad, some might even be scams. It's working out which franchises are worthwhile (there have to be some, some franchisees become millionaires) that's difficult.

An interesting combination of factors at this time in history may be the reason so many women are turning to franchising to fulfill their entrepreneurial desires. Women’s increased financial power, better education, and corporate experience, combined with their desire for more autonomy and desire to connect with others who share their values make franchising a great fit for many women.

New franchise opportunities are springing up everywhere, and people are rapidly buying into them. A franchise may definitely provide a great business opportunity with a greater chance of survival than a traditional business startup. Here are some reasons why a franchise business opportunity may be just what you are looking for.

You have been bitten by the Entrepreneurial bug. You want to start your own business and you are considering purchasing a franchise. Certainly worth considering. There are many great franchises in operation throughout the world today. Like everything in business, this is a decision which will have a massive impact, not just on your life but on the lives of your family, your friends and your acquaintances.

A study by The Institute for Operations Research and the Management Sciences showed that 91% of successful franchises have one common thing written in their franchise agreement: exclusive territory. That is enough to tell why you should know about this part of your franchise agreement thoroughly before you actually buy a franchise.

Investigating Franchise Offerings

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.

Selecting a Franchise

Like any other investment, purchasing a franchise is a risk. When selecting a franchise, carefully consider a number of factors, such as the demand for the products or services, likely competition, the franchisor's background, and the level of support you will receive.

Many people dream of being an entrepreneur. By purchasing a franchise, you often can sell goods and services that have instant name recognition and can obtain training and ongoing support to help you succeed. But be cautious. Like any investment, purchasing a franchise is not a guarantee of success.

The Benefits and Responsibilities of Franchise Ownership

If you are interested in starting a business and thinking about buying a franchise, it will help your planning to compare the franchise opportunity with the opportunity of starting an independent business.

In a sophisticated business plan for a startup business, the business is contemplated to begin (produce a product or service for an identified market), to accomplish a profit cash flow...

Although it may not be immediately evident, a franchise company is under no obligation to award a franchise to just anyone who can afford the franchise fee.

Like any good business, a franchise company will want to populate their system with great people. Since franchising has as its foundation a strong, consistent brand, a franchisor looks for franchisees who will present the brand in the most positive light.

When you are starting a franchise, a big part of your due diligence process should be devoted to conducting extensive market research. A thorough market research is mandatory, if you want to become successful as a franchisee. But, many novices fail in spite of starting a franchise of a top franchise opportunity, just because they don’t do proper market research. You may find the product/service great, but if there are not enough people to buy it, then it is of no use.

We get so caught up in the daily life of running a business, it’s easy to miss the forest for the trees.

Not that you have a choice! You’re fighting fires, handling a pissed-off customer, rending your face over an emergency bug-fix, the website just went down, and the accountant is coming tomorrow and the books are in shambles.

It may surprise some to learn that Canada has had franchise legislation since the early 1970s.   That is when the province of Alberta chose to introduce franchise legislation of the type then favored in the United States: disclosure with registration.  This was an anomalous legislative development, as the volume of franchise activity in those days was miniscule by today’s standards.

Food franchises are the iconic picture of a franchise and, believe it or not, have actually been one of the minute few industries that have shown growth during our recent recession. Before you make the assumption that food franchises are invincible, understand that they have gained the recession-resistant status through the hard work of building strong brand names and products that appease the American appetite without devouring the American wallet.

From the leadership positions they hold, to the purchasing power they wield, women and minorities play an important role in the overall U.S. economy. Women and minorities have a presence in every industry and their contributions fuel economic growth. Hispanics alone account for 15% of the U.S. population, and by 2050 that number is expected to nearly double to 29%.

As a small business owner, you will probably lose some business during the downturn, despite your best efforts, as client companies cut their budgets, shift strategy, or, sometimes, go away altogether.

The economic downturn has made client and investor retention trickier than ever. Business owners have to do a lot more to compel investors and clients to make long-term commitments and agree that investing in their services or products are essential.

Consistency lays the foundation and creates expectations, employees, franchisees, vendors and customers.

Promoting consistency within any system is tantamount to laying   the cornerstone of a great company, for the consistency which you create, develop, nurture and enhance will eventually permeate your organization.

Given the choice between purchasing a box of Honey Nut Cheerios to help benefit a local school or buying a similar brand offering no such promotion sitting on shelf next door, many people will choose the charitable offer.

Consumers are more likely than not to support corporations pitching offers that benefit a worthy cause, particularly in this economic climate.

Franchising is the preferred vehicle for many to join the business world. It has become more important than ever, as the country is undergoing an economic downturn and jobs are being curtailed. Even corporate people are turning towards owning their own business to get away from jobs in which they are unhappy.

The franchising industry has gotten a lot of notice of late from people who are using the tough economic times to re-evaluate their futures. Perhaps you were laid off from a company where you’d worked for decades. Loyalty to employees is no longer a strong suit in corporate America. Perhaps you were determined to take your career into your own hands and not be at the whim of corporate dictates.

ReRetailers large and small are bringing in customers with in-store events: cocktail nights, art shows and movie screenings.

Navin Megji calls it "the thoroughfare" -- a stretch of San Vicente Boulevard that isn't a shopping district so much as a racetrack for commuters. Yet it's this strip of posh Brentwood where the 25-year-old boutique owner set up Feature -- a chic,

The United States Postal Service offers postage discounts for pre-sorted mail. The problem is finding out which changes are required to qualify for lower rates. The understanding of postal regulations is a science. For example, mailing to addresses and not specific recipients provide big savings if done correctly. The total cost, including the printing and postage, can be less than the $.44 price of a first class stamp.

Things have been going so poorly for so long that any of us could be forgiven for thinking recession is the new normal. The economy has been in decline for 22 months, and as we head into 2010 many pundits assume things are going to continue as they are—or maybe get even worse. Others figure 2010 can't be anything but better than 2009 and recommend business leaders plan accordingly.

Weathering the current economic storm requires clear, level-headed thinking and a strategic process for action.

Low consumer confidence, fickle consumer spending, unpredictable commodity costs, and tight credit markets are all causing distress throughout the franchise industry and injecting new stress into the franchisorfranchisee relationship.

Prior to the economic downturn, Eric Diaz was managing a department that handled futures systems for Merrill Lynch in New York. Today he's a full-time pet groomer, riding around Hudson County, New Jersey in a tricked out Mercedes van replete with two 65-gallon water drums, a hydro tub and a host of shampoos, conditioners and other doggie styling aids.

Trish Harrington brought her 6-year-old daughter to a birthday party at Snip-its in North Attleborough and fell in love with the children’s hair salon. A CPA and controller at a Rhode Island financing company, she went home, did her homework, and four months later signed an agreement with the Natick-based franchise to develop three new locations.

A look at today's franchise candidates will reveal they are more sophisticated, better educated, and more technologically advanced than ever before. In addition, and even more so because of the economic downturn, they are extremely cautious.

Today's candidates are spending more time researching opportunities, and doing so at a much slower pace.

If you are looking to buy a franchise, one of the most difficult questions you will be forced to answer is, "What kind of business shall I buy?" The best franchise for one person may not be the best franchise for someone else. One thing is true, however. If you select an option from among the 10 best franchise opportunities listed below, you can hardly go wrong.

As traditional funding sources dry up, franchisees have to get creative. Fortunately, reliable strategies aren't being kept secret.

It's been said many times, "Necessity is the mother of invention." The credit crisis has made funding a new franchise much more difficult, but you needn't give up hope.

Want to know what will put the "grand" in your grand opening?

Find out from some of the biggest and best franchises in the country. Here's what they are saying will assist franchisors and franchisees in having a successful and profit-producing grand opening. And read what some of their "star" franchisees have to say as well.

One of the best ways to effectively jump-start awareness and interest in your franchised business is to hold a grand opening. A successful grand opening can often result in a short-cut to sales and revenues that otherwise might have been longer in the making. A well-thought-out and successfully executed grand opening can greatly assist with your ultimate goal:

A business partnership can be said as a marriage between two people who share the same vision. Like in a marriage, both the partners have to work in tandem for the business to work. They have to trust each other and perform their assigned duty to their best ability. And like a marriage, the partnership too can have disputes which, if not handled properly, can lead to a “divorce” between the two partners!

Franchise Business Buyer's Guide

While most franchises are sold directly by the parent franchisors, there is a growing set of middlemen called franchise brokers or franchise consultants. Much like real estate agents, they work to help match buyers and sellers. Their services are free to the buyers - they are paid a commission by the franchisor.

You know there are "right" customers and "wrong" customers and while you may not (yet) know how to tell them apart before they become your customer, you know that the "wrong" customers deliver the least value and create the majority of problems in your business.

Who is a customer?

Nothing can be worse for a business, if you find that someone is starting a franchise of the same franchisor just a few feet away from your outlet. Sometimes, even a company-owned franchise may open a location near you. In this situation, you have to compete not only with your competitors, but also with your own company!

The franchising industry has gotten a lot of notice of late from people who are using the tough economic times to re-evaluate their futures. Perhaps you were laid off from a company where you’d worked for decades. Loyalty to employees is no longer a strong suit in corporate America. Perhaps you were determined to take your career into your own hands and not be at the whim of corporate dictates.

What is a franchise?

When you think of a franchise, you probably think of McDonald’s because it is famous for its franchises. So, let’s use the Golden Arches as our example. If you buy a McDonald’s franchise, you will be responsible for running your restaurant, but you will use the marketing methods, name recognition, brand, products, and services that have already been developed by the corporate company.

If you've been considering buying a franchise business, you are probably weighing the pros and cons and looking for holes in the logic. As with any business venture there are risks involved with buying a franchise.

Q: Do women face unique risks starting a franchise business?
A: This is a pretty common question and the answer applies to minorities as well. Essentially, the answer is no.

Women interested in franchising are finding new and unique opportunities in the educational and personal services industries.

More and more successful women are learning about the benefits of owning their own franchised businesses. Catalyst, a non-profit research firm devoted to advancing women's careers in business, reports that women choose to strike out on their own for a mix of reasons.

Which franchise categories hold the most promise for 2009? We break it down and give you the first look.

The world of franchising is as dynamic as ever. Every year, new franchise concepts emerge, existing ones expand and opportunities abound for individuals interested in getting into business for themselves via franchising.

Franchise opportunities provide the best of both worlds for aspiring entrepreneurs as they give you the freedom and independence to operate your own business while also having the backing and support of a major organization. For aspiring business owners, franchises can provide a great way to realize a stable income with great opportunity for growth and expansion.

The first McDonald's franchise was given to Nathan Fox in 1953 and opened in Phoenix Arizona. This was thirteen years after the McDonald brothers opened their first McDonald's restaurant. Dick and Mack had begun their McDonald's legacy with a restaurant in San Bernardino California in 1940 with a menu that has 25 items on it.

Franchising involves an almost symbiotic relationship between the franchisee and the franchisor. The franchisee provides expansion, additional profit and increased brand recognition while the franchisor provides the basic know how, brand name, supply chain, and continuing support for the franchisee. To pay for this instant business, the franchisee shells out an up front fee or a franchise fee for the use of the business system and the brand name.

Guarantee your own success by choosing the right franchise for you from the beginning! Don't just buy a big name become a huge name.

If you have already decided to become a franchisee that is one big decision that you no longer have to worry about. Now you need to figure out which franchise you want to start. This can be a tough decision since there are so many franchises to choose from.

One of the most important parts of buying a franchise is doing your homework. So get out there and grill the people who know the franchise best.

Sell skin-care products or own a hotel. Groom dogs, help people lose weight or do their taxes. These are just a few of the opportunities in today's franchise world, which includes a boggling variety of concepts selling every imaginable product and service.

As a franchise sales consultant I am often asked what are the advantages of the master franchising business model and buying a master franchise. Master franchising, some times referred to as sub-franchising, is a form of franchising that allows an individual to buy the rights from a franchise company (The Franchisor) to sub-franchise their business concept in a specific territory or large geographical area.

Experienced franchise players can continue their success and those new to franchsing can ensure a bright future.

By Linda Burzynski, CFE

There’s no doubt the economy, lack of capital and limited access to loans are having adverse effects. Though the golden parachutes of decades past are now just a memory, franchising will make a comeback because of prospective franchisees’ drive to succeed.... more



And the Survey Says, Future is Bright for Franchising
Posted by: Admin Post on October 1, 2009
Author: John Reynolds

Current economic conditions are good for franchised businesses and the outlook for the year ahead is very optimistic, International Franchise Association franchisor-members confirmed in a recent Web-based survey. More than two-thirds (68 percent) held a favorable view for their specific business, half calling current conditions "very good" while a similar share said things were "somewhat good."