If you're keen to start your own business but worry about your lack of experience, a franchise is the way to go. When you sign up with a quality franchisor, you get the clout of an established name and all the backup and resources you need to get started. But franchising can be a murky world. And while most franchisors are straight and above board, there are a few sharks in the water.

At the point of receiving disclosure documentation, many potential franchisees are recommended by their franchisors to use the Franchising Code’s 14-day waiting period to undertake their due diligence on the franchise investment.

The problem for many potential franchisees at this point is that they don’t know what due diligence is and may have never heard the term before.

Lately, more and more franchise companies are converting a significant number of their company-owned units by selling them to franchisees. This trend, commonly referred to as refranchising or retro-franchising, can be driven by any number of motivations on the part of the company, and it may represent a wonderful opportunity for a careful buyer if the circumstances are right.

Each year, Entrepreneur, a prominent online and print source for everything business, releases its list of the top 10 new franchises. While it’s unclear exactly what the criteria is for this list, one thing that’s clear is that every business that makes it onto the list has a solid business model and business plan and has proven itself to be a viable business option in the current market.

You’re looking into buying a Franchise, and you need the best information possible to make sure you make a good decision about buying a Franchise. Well, over the past 20 years, I’ve seen (and heard about) people making the same mistakes over & over again that added tremendous risk to that decision.

This might not be something you have considered, but in the franchising business you do need some expertise sometimes.  This will apply to both franchising your business and buying a franchise.  Do not go it alone either, especially if you are first time franchiser or business owner.  There is a lot to learn about buying and selling franchises and you likely won’t find it all online. At least not yet.

It is no secret that the restaurant industry is a tough one to succeed in. However, when you look at the real numbers, it is because far too many people get into the industry thinking that all they have to do is open their doors, have a good time and the profits will roll in. Take it from someone who has been there, the benefits of restaurant franchise give a new owner a much better chance of success.

Take a look around you and you can see signs of the flailing economy. Jobless claims are up, businesses are downsizing and others are going bankrupt. Not to mention the foreclosure and credit crisis.

So I ask you this question. "Why are you looking to start a franchise business, now?"

'Good franchises' are those that are a good for YOU, some people succeed and others fail in the SAME franchised business. This happens for several reasons and in all types of business.

The following information relates mainly to small franchises which are home based but most of the information would be useful to anyone whose aim is finding a franchise that suits them.

Having a short list of industries to investigate lets you start looking at specific franchises. Potential franchisors should send you detailed information at no cost - simply call companies you are interested in and request the information. You can get many more leads at franchise trade shows, which bring together hundreds or thousands of franchisors looking for buyers. You can also talk with a franchise consultant or broker.

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.

When one thinks of a franchise business, people usually think of Pizza Hut, KFC, McDonald. However, many people I talk to have zero interest in that particular business model.

Recently, the trend offers flexibility, limited and controlled hours, and businesses that offer lots of family time Something that doesn’t require big capital up front.  These day many people looking for Home-based franchises business.  Is there such franchises available?

Let's say you're tired of corporate America and you'd like to own a business of your own. Unfortunately, you've never owned a business before, and your parents didn't own a business either, so you really don't know what to do to get started. This is the biggest dilemma for many corporate employees who want to ditch corporate America and start their own company.

A significant step in the development of starting up a business venture is deciding whether or not to buy an existing business, finance a start-up or invest in a franchise alternative.

One of the biggest mistakes involved in new business ownership is making a decision that may significantly affect you and your family, without gaining a full understanding of the key components involved.

Often franchise buyers become interested in a certain type of business and brand in the franchising sector. They've always considered owning a business of their own, but never really had the experience to quit corporate life and go for it. Franchising seems to be the answer, and they when they see a concept or brand name which they are drawn to they start to do a little more research.

If you are considering on buying a franchised outlet as a business of your own then perhaps one of the questions you might have is regarding the franchise territory that comes with your franchise. Often, franchisors will make a "bullet point" in their brochures about "Exclusive Franchise Territory" as if this is some kind of a bonus that you get for giving them the $20,000 franchise fee.

When planning new ventures, you need to decide whether this new business should be a franchise or not. Well, major entrepreneurs have analysed the franchise opportunity and have recognised the following excellent characteristics of any franchise opportunity:

1.Firstly, with a franchise, a lot of the headaches have been worked out for you. This includes the menu, kitchen, equipment, the approach, employee attire, design and layout as well as how the franchise business is run.

For some, 2009 will be the year to become self-employed, whether this be as a result of a self-generated decision, or a by-product of losing a job. This article provides essential basics for prospective franchisees and insight into what franchisors should expect from future franchise candidates.

Starting your own business should never be an overnight choice, nor should it be something that you take lightly. Before you even write up that business plan, you need to be sure that you are ready to take on the commitment to hard work that starting out often takes. This is true of any business, but also true of getting yourself started in a franchise as well- this is not a get rich quick scheme and as anyone will tell you, if something sounds to good to be true, it is.

An ongoing challenge in franchising is the lack of understanding among franchisees of their obligations under the franchise agreement.

The Franchise Advisory Centre has taken a great number of calls over the years all asking essentially the same question:

“My franchisor wants to me to do / change / stop doing / upgrade or divest something. Can they make me do that?”

The most valuable source of information on any franchise system is its existing franchisees. These are the people who are living the life of a franchisee every day, and they can tell you the reality of what that life will be like for you if you decide to join up yourself.

With any franchise you are interested in, you should plan on calling or visiting a number of the existing franchisees during your investigation.

The term 'franchising' covers a variety of arrangements in which the owner of a product, process, service or even just a name (in the terms of a celebrity) allows someone else to use it in exchange for some payment.

This rest of this page refers particularly to 'business format franchising'.

New guidance issued by the Small Business Administration (SBA) will loosen the limits of the 7(a) loans ability to finance goodwill (intangible assets) in franchise business purchases with changes in ownership.

Goodwill is the term used to describe the intangible assets of a business, verses the hard assets such as equipment, buildings and real estate.

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)?
-How much can you afford to lose? (Remember - nothing is guaranteed.)

If you want your franchise to succeed, you need to give 110% of your efforts; you have to be in it to win it. As a former franchisor, I can tell you that the most successful franchisees went above and beyond the call of duty, they took their businesses as serious as their families, and because of that their success seemed to know no bounds.

To understand the advantages and disadvantages of owning a franchise business you need to have a basis for comparison. Other ways to realize your dreams through business ownership include buying a business opportunity and creating a business from the ground up. There are definite advantages and disadvantages to owing a franchise business over these other career or business ownership options but to know which path...

Franchises account for over 40% of retail sales today. You may go to any center and find franchises operating there. With over a century of History behind them, franchising is a strong, efficient way for you to venture into your new business. What are franchise opportunities? What does it mean to me and will it work in my area?

So you just found the greatest franchise opportunity in the world. Now what? You just need a place to build your store. That should be easy enough, right?? Just find a real estate agent and tell them what you want and Bam!-problem solved! Not so fast... Selecting an excellent site to build a restaurant or retail store is absolutely critical to the success of your business. If you make a poor decision in selecting a site, it could dramatically impact your startup cost.

Whether the business is a franchise, existing business or home business, there are absolutely things that happen (or do not happen) that cause business owners with the best of intentions to fail. The most prominent reason a business fails is that the business quits before they allow themselves enough time for success. Anticipating immediate results in any business is a recipe for failure.

Charlie Morrison, CEO of Pizza Inn, said he encourages his franchisees to experiment with new flavors and toppings on their pizzas. After all, some of the 310-unit-strong chain’s best-selling specialties started at the franchisee level, including a bacon cheeseburger pizza with a mustard base and pickle on top.

Buying a Franchise

An important step in the small business startup process is deciding whether or not to go into business at all. Each year, thousands of potential entrepreneurs are faced with this difficult decision; because of the risk and work involved in starting a new business, many new entrepreneurs choose franchising as an alternative to starting a new, independent business from scratch.

How important is choosing a franchise location in the process of starting a business in franchising? The franchise location is a very important factor in bringing profitability and success into your chosen franchise opportunity. Imagine a business being situated in an isolated place where only few people live or a business selling very expensive goods or services within a community where the median household income is very low.

It's one of the most important tools you'll get when buying a franchise - and the foundation of your relationship with the franchisor.

The Franchise

Did your lawyer approve the franchise contract you are considering after he or she studied it paragraph by paragraph?
Does the franchise call upon you to take any steps which are, according to your lawyer, unwise or illegal in your state, county or city?

There are various business types available in the franchise industry today. It is very useful to discuss these types for you as a potential franchise investor to help you assess the best one for you to take. Definitely, your chosen franchise opportunity should fit your total personality, skill set, lifestyle, and investment budget among other elements.

e recent economic instability and uncertainty in the marketplace is exerting a far-reaching impact that, for some professionals, influences much more than just the bottom line. Challenging times often inspire new solutions and provide many individuals with a heightened degree of analytical and strategic insight into the business model that works best for their personal circumstances.

Franchising has been around for over a Century. Franchising helped manufacturers distribute their products throughout a region. Franchising has come along way, and the popularity in the last 50 years has exploded. What are todays franchises? What products are selling?

Albert Singer developed a sewing machine. He made use of "franchising as a way to distribute his machines over a larger market. His market began back in 1851.

Before you decide which franchise you're going to choose, you need to take a while to consider your five year goals - this is in respect not only to the financial aspect, but also, your own life goals as well. Are you someone who doesn't want to be tied down to the area, who enjoys traveling? Then you'd want a more hands off operation.

Stuart Frankel isn't what you'd call a power player in the world of franchising. Five years ago he owned two small Subway sandwich shops at either end of Miami's Jackson Memorial Hospital. After noticing that sales sagged on weekends, he came up with an idea: He would offer every footlong sandwich (the chain also sells 6-inch versions) on Saturday and Sunday for $5, about a buck less than the usual price.

Last summer, when the butcher paper came off the windows at the former Starbucks in Seattle's Capitol Hill neighborhood, locals found a narrow little cafe called 15th Ave Coffee & Tea, serving espresso pulled from a manual La Marzocco machine by hipster baristas with a flair for latte art. Drip coffee is made cup by cup from small-batch-roasted beans brewed in an $11,000 ceramic-filtered Clover machine.

Whether it's hamburgers, pizza, telecom, coffee, Internet, muffler parts, or seniors' services, there are Franchise opportunities available to evaluate. There are great Franchise systems, good Franchise systems, and bad Franchise systems. The challenge is to ask the right questions to find the right system that will fit your goals and dreams. The key is to ask the questions - and listen closely to the responses.

How can I go about investigating a particular franchise that I am interested in?

-Request an information packet from the franchiser.
-Interview owners of current franchises.
-Research the industry and other franchises in this industry.
-Seek expert advice to better understand the franchise agreement.
-Review costs related to getting into this franchise and compare them to the costs of starting a nonfranchised business in this industry.

You may be sitting there asking yourself if you have what it takes to become a success if you buy a franchise. You have already looked into everything you needed to about the franchise itself, assessed your own goals and path and now, you wonder, can you really do it? There are many traits to successful franchisees that you won't find in those who didn't succeed.

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.

Why should I purchase this particular franchise?

A franchise may need to be looked at from a product or service comparison prospective. While one franchise’s product or service may be suitable in a geographic area, another may not be. When evaluating a franchise, close attention needs to be spent evaluating:

Buying a franchise business is something that should always be approached with a great deal of caution and research. You should make sure that you comb over every detail of the franchise you wish to purchase and make sure a competent franchise attorney looks over ever document the franchisor provides to you.

Franchising Strategy

PrePurchase Detective Work

In addition to the routine investigation that should be conducted prior to any business purchase, potential franchise buyers should be able to contact other franchisees before deciding to invest. They should also obtain a uniform offering circular containing vital details about the franchise's legal, financial, and personnel history before signing a contract.

The Franchise Disclosure Document (FDD) is a treasure trove of information for anyone serious about examining a franchise opportunity. It contains all of the information that state and federal franchise regulators consider relevant to a franchise investment, and it is indispensible to a franchise purchaser.

The Keys to Franchise Business Owner Success

The value of the brand, the location, the support provided by the franchisor, the quality of the product or service, local competition, and the economic climate...they all influence business success. We would expect the potential franchise business owner to investigate these factors thoroughly as part of the due diligence process.

Franchise consultants assist businesses that are ready to explore franchising as a means of growing their presence and market share. They also assist potential franchisees to find the ideal business opportunity for them.

Many successful businesses choose to grow their business in the normal way by taking on more staff and more premises in their target markets.