What should you know about protected franchise territories? Our expert provides both sides of this important issue.

How much should your franchisor help in finding the right location?

Here are 5 franchises that may be a good fit for older workers

Ex-military personnel prove well-suited to new firms' risks, rigors.

Franchising suffered a downturn during the recent economic slump—a slide that surprised many in the industry.

Subway has surpassed McDonald's to become the world's largest restaurant chain in terms of units, the sandwich company confirmed Monday.

The current economic recession has sparked a renewed interest in franchising.   Many unemployed and retired individuals see franchising as a viable option to achieve economic success.  However, no business venture is without risk.  A primary reason individuals pursue franchising is to minimize the risk of business failure.  Franchising offers a proven model for business success in many cases that can be replicated by motivated and business savvy individuals.

Cooperation has always been a key element of successful franchisor-franchisee relationships, but with new challenges to accessing credit that collaboration is “more important now than ever,” said Grant Benson, Dunkin’ Brands vice president of franchising and market planning.

When franchisees and franchisors communicate clearly, consistently and work toward goals that benefit both, disagreements are manageable and sometimes meaningful.

As more baby boomers look for ways to strike out on their own or supplement income in retirement, a surprising number are turning to franchises.

Always wanted to own your own business, but held off because you were weary of the headaches that can accompany hiring, paying and managing staff? You might find the perfect fit in these five franchise business models, all well-suited for franchise owners who are seeking to go into business solo.

As job growth continues to sputter, some frustrated or laid-off workers are taking an alternative route to finding new employment.

Everybody knows Subway is a successful franchise chain. But did you know last year it cracked 33,000 units and should shortly hit 34,000? The fresh-sandwich chain passed McDonald's to take the top fast-food franchise crown.

Thinking of buying a senior-care franchise? This column suggests the move may be a wise investment.

You need a strategy before investing in a franchise. Doing your homework about the franchise first will help you gain a solid understanding of what to expect as well as the risks that could be involved.

Many baby boomers who are not ready to retire and want to supplement their income are turning to franchises. These older franchisees are often wealthier than their younger counterparts, and some are looking to hire their children and pass along the business. Boomers are capitalizing on big trends in franchising, with an increase in home health care, training and work-from-home franchises.

Franchises can expect an average of 4.7% growth this year, according to a PricewaterhouseCoopers report commissioned by IFA. The report predicts 4.6% average growth for full-service restaurant franchises and 4.9% for quickservice restaurants. The overall number of franchises is expected to increase 2.5% -- creating 194,000 jobs in the process.

At the IFA show, experts discussed how to help franchise owners secure capital

People interested in acquiring a franchise often ask the question “Which is the best franchise?” There is no real answer to that question.

In franchising, we have witnessed some established franchises make it, while some others don’t – both franchisees and franchisors share their own mistakes; in franchising, the saying “it takes two to tango” couldn’t be more relevant.

Sometimes instituting legal action against the franchisor is the franchisee’s only option, but, often times, the parties could more amicably and efficiently settle their dispute through negotiations in a mediated atmosphere.

A Steady Decline in the Number of Restaurants

Franchising is in for a good year. According to the 2011 Franchise Business Economic Outlook, nearly everything is heading in the right direction.

Business owners can gather a lot of information and insight merely from talking with -- and listening to -- one another. I'm not a franchisor or a franchisee, but I learned plenty this week by attending the 51st annual International Franchise Association (IFA) convention.

Nobody knows how to run a business better than somebody else running the exact same business

Fast food and restaurants is and will still be the fastest growing segment of the franchise industry.  While this may be so, your success is not guaranteed when you enter this race.  Because of the popularity of food franchises, the market tends to become saturated with this type of business.

After much, much research, you have finally found the franchise for you. All you now need to do is buy it, but how do you go about raising the finance for buying a franchise?

To help illustrate the economic impact of franchising to members of the 112th Congress, the International Franchise Association announced today the launch of the latest advertisement, which features Choice Hotels International, in its ongoing Public Awareness Campaign.

Franchises offer entrepreneurs a network of supporters and a path to follow that's already been blazed

A study compiled last month by consulting firm PricewaterhouseCoopers on behalf of the IFA projected that the number of new franchise units industrywide will grow 2.5 percent in 2011, as compared with an increase of 0.3 percent from 2009 to 2010.

One of the key benefits of franchising is that most franchises will allow those with no prior experience in their industry to purchase one of their franchises.  The reason being that they will train them in all they need to know.

Owning a franchise gives you the best of both worlds. Sure, you get to be your own boss, run the business and reap the rewards from your hard work. But you also get the knowledge, experience and support of an established brand and system. It's being in business for yourself, but not by yourself.

Most people don’t realize the impact that franchising has on an economy and would be surprised to learn that around 45% of all retail sales in Canada are generated by franchised businesses.

There are subtle differences between franchise opportunities and business opportunities, as we explain below.

Like most business strategies franchising to has some draw-backs associated with it. Some of the major advantages and disadvantages of franchises are listed below

The International Franchise Association commended the advisory opinion released yesterday by Virginia Attorney General Ken Cuccinelli clarifying the definition of franchise businesses as a “distinct form of business enterprise” that distinguishes relationships between franchisors and franchisees from ordinary employer/employee relationships.

Rather than take a lower-paying job, Stanley started looking into opening his own business via a franchise.

Here's a rundown of common pitfalls people fall into when buying a franchise, and tips that could help you avoid a listing in a future ABA casebook.

Franchising has a set of rules, and these rules are manifested in a document called the Uniform Franchise Offering Circular (UFOC).

Franchise brokers are employed by franchise companies to sell franchises. If you are looking at franchise opportunities, sooner or later you will encounter a franchise broker.

Most franchisees believe that a business that appeals to as many people as possible is the surest path to success. While one can find plenty of validation for this model — who doesn't love a Baskin-Robbins cone? — there are also many benefits to targeting a narrower customer base for your franchise.

Laid off from his foreman's job last June, José Cruz has turned his vision toward opening a franchise -- a venture that would combine his wife's cosmetology skills with his psychology degree, focusing on women and beauty.

When you think about how much time -- and money -- most of us spend in franchise establishments, it's no wonder that, as the economy improves, the franchise outlook is rebounding as well.

According to a just-released report, the...

If one of your 2011 resolutions is to start your own business, you are going to need financial help.

But headlines suggesting that youll get short shrift at your bank could be wide of the mark - if you do your homework.

In today's day and age, where monopolies are very rare and choice is the norm, products and services are extremely similar and the client has more and more options for the purchase of his items or the place even where he purchases it...

Franchise businesses are poised for stronger growth in 2011, according to a report prepared for the International Franchise Association Educational Foundation by PwC*. As the economy recovers from the “Great Recession,” the...

Franchise executives were slightly more optimistic about the year ahead mixed with major concerns about access to credit, lackluster same store sales, government regulations, competition, taxes, health care, and labor issues such as...

The U.S. franchising industry is poised for modest growth in 2011, according to two new studies to be released this week.

Franchise businesses in most sectors are expected to add more store units and employees this year...

Franchising is a kind of licensing arrangement wherein a business owner, known as the "franchisor," distributes or markets a trademarked product or service through affiliated dealers, who are known as "franchisees." While these franchise...

As a new calendar year approaches, it’s natural to reflect on the past and ponder the future. However, rather than wondering what 2011 will bring- what your triumphs will be, what highlights and lowlights will become etched...

Not all can be franchisees – there are certain personality traits and circumstances that can hinder you from being a successful franchisee.

Are you a franchisee material? Here are 100 questions to ask or answer to...

Challenging Corporate
Linda Ekendahl
Edible Arrangements

I opened my franchise six years ago, in a 1,000-square-foot strip mall space in Elmhurst, Ill. It was so small that during the holidays, when I had 15 workers...

Raising enough capital to start your own business can be an up-hill climb, especially given today’s cautious lending environment.

Opening a franchise might be the easiest way to do it as banks swing available credit in...

Finally, the search is over – you have done your homework and have found your dream franchise and you just know it has a bright future. The next step would be: buy the franchise; the big question: how will you finance the purchase?...

Behind every successful franchise concept is a successful franchiser. Is this obvious? Perhaps; but according to Karen Spencer, CEO and founder of Fran-Systems, a Marietta, Georgia, franchise consultant, it bears repeating. "Some people...

As 2010 comes to a close, it's fun to dust off the proverbial crystal ball and predict what the coming year may hold in store for the franchise world. But first, a quick review of the upheaval that the franchise industry has endured...

The economy will inch forward next year, but slowly and sporadically. That's the consensus of many economists.

Tough times will persist, they say, for most small-business owners, especially independents, as they continue to...

Chances are, you've visited at least one franchise business in recent weeks. Perhaps you got your brakes fixed at Meineke® or stopped by The UPS Store® to send a birthday present.

Have you thought about buying a franchise...

After 20 years working in corporate finance, Brian Achenbach was laid off in February for the third time in his career. Instead of looking for another job, he decided to open his own business.

"I found myself in a situation...

Q: Any advice on franchising as a way to satisfy my small-business ownership ambition?

A: Franchisors provide a proven successful structure base and systems to allow franchisees from having to start from scratch. Franchisors...

In researching franchises and reviewing franchise legal documents and contracts you may hear or read terminology that you don't understand, or of which you aren't certain of the meaning.

This glossary of franchising words and...

You need a strategy before investing in a franchise. Doing your homework about the franchise first will help you gain a solid understanding of what to expect as well as the risks that could be involved.

Be a Detective

Most people are familiar with franchising. For the benefit of those who are not, according to http://wikipedia.com franchising is the system of doing business wherein a franchisor licenses...

In The Demolition Man, Sylvester Stallone, just awakened in the 21st century from a 40 year cryogenic sleep, is taken to a "fine restaurant" for dinner. As they pull up in the electric self drive car at Taco Bell, Stallone asks...

Type "franchise" into Google and you'll get 67 million hits (April 2009) -- a number that keeps growing every day. So what are the best sources? Which can you can trust to provide you with the information you want? Which ones...

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...

Susan, a bright, energetic and make believe person, has decided to become a business owner by buying a franchise. She understands that there are many steps to the process and asks me how long it will take before she will...

Reading franchise business publications and attending franchise expos will give you some ideas on how the bottom line – the financial analysis – of franchise opportunities you are interested in.

Buying a franchise business may be tempting because of the brand name and proven systems. But when you decide it is time to get out, will you be able to sell your franchise?

I canvassed a number of franchise experts and...

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...

Opening a business is a very exciting prospect, even for the most seasoned businessman. For those who are just starting, however, it can be a very big decision or it can even be the most important decision they'll ever make in their...

Choosing and buying a franchise is easy. The tough part is finding the right reason why you want to buy one. Learn from my mistakes.

I remember all the excitement that comes with the process of finding the right franchise to...

Most people equate franchising with ubiquitous mega-systems: the large fast-food franchises like McDonald's or Subway, hotel operators like Marriott or other business-format franchises like Curves or ServiceMaster. These systems are...

As you -- a soon-to-be franchisee - make your itemized list of start-up costs, the biggest number will probably be the funds it takes to cover your personal expenses before you draw a paycheck.

The way these funds come to you can...

There have been hundreds of theories and books written on what constitutes effective leadership. My work with many franchise companies, both good and not so good, has led me to the conclusion that effective leadership is the...

For many current and former executives, searching for the next career move in today's uncertain economy is more challenging than ever.

As more and more companies stabilize their work forces at employment levels at or lower than...

I heard too many stories of franchisees who “feel” that they were being cheated by their franchises, resulting in an under-performing, if not dying, franchise units.

The general rule of thumb in any business agreement...

A couple of years ago, I gave advice to someone acquiring a franchise from a U.S.-based franchisor, and the deal went wrong because the parties hadn’t dealt with the issue of withholdings tax.

With thousands of different franchise opportunities, the franchise industry in the United States is certainly not lacking in concepts or ideas; yet, even so, some franchise companies based outside the U.S. have managed...

As a 25-year veteran of the franchise industry and a multi-brand franchisor, I've seen tremendous growth in the popularity of franchising. However, a number of misconceptions about franchise ownership still exist, and if you...

All too often, franchisees whose relationships have turned sour with their franchisors contact me and indicate that they exclusively relied on the franchisor’s representations before making their decision to sign up...

It is generally agreed that it is in the best interest of the franchise system as a whole that the uniform standards, methods, procedures, techniques and specifications of the franchisor’s system be fully adhered to by...

How do you find a great franchise opportunity amongst the thousands advertised on the internet, franchise exhibitions and magazines?

In this article I examine the key qualities that potential franchisees should look...

If you want to run your own business, you may be considering a business franchise opportunity. Franchises are a popular choice for many aspiring business-owners, because a lot of the risk has been cut out of the process: your business...

You have prepared everything you need to do to buy your dream franchise: Location, check. Market research, check. Financing, check. The due diligence, check, check and check. Now it’s time to move a step forward: Let your...

Interested in becoming a franchise owner? Get ready for some competition. There’s been a surge in applications — from laid-off executives to military personnel who’ve returned home — thanks to the economic...

Shaped by their war experiences and military training, many veterans are opting to go into business for themselves rather than work for someone else.

Jose Martinez received a medical discharge from the Army in 2006 at age 2...

The future of franchising is looking bright: In September, the U.S. Census Bureau reported that 10.5 percent of all businesses with paid employees were franchises in 2007, the latest data year, and that they generated a staggering...

To help you evaluate whether owning a franchise is right for you, the Federal Trade Commission has prepared this booklet. It will help you understand your obligations as a franchise owner, how to shop for franchise...

Are you thinking of owning a franchise? Reviewing a franchises business plan and analyzing their FDD is a big project but shouldn’t be taken lightly.

What is the FDD

If you're searching for a food franchise for sale, you're most likely wondering how to choose the most profitable franchise. Buying a food franchise for sale is almost always a profitable venture if you choose the right one...

Finally, the search is over – you have done your homework and have found your dream franchise and you just know it has a bright future. The next step would be: buy the franchise; the big question: how will you finance...

He or she is looking to buy a franchise.  He or she is serious, they have made up their mind to escape the corporate rat race and find something better for themselves, their family, and their future.  And they...

If you are considering buying a franchise, you have probably done a great deal of research into the companies you might want to sign up with.  What you may not have considered is that those companies are going to be...

Choosing and buying a franchise is easy. The tough part is finding the right reason why you want to buy one. Learn from my mistakes.

I remember all the excitement that comes with the process of finding the right franchise...

Markus Romero didn’t like crunching numbers or sitting behind a desk; he was busy managing nightclubs and operating mobile tanning salons in Las Vegas. But after he discovered Instant Tax Service, his attitude changed.

Tell me what is wrong with this sentence:  Franchising provides the opportunity for entrepreneurship.  It is grammatically correct and “entrepreneurship” is a “real” word; so, where...

Franchising is about teamwork and relationship. In any kind of relationship you will encounter frictions, whether you like it or not. Here’s my view on how to resolve franchise disputes.

Disputes are often...

Franchising is a business relationship where a franchisor (a company or individual who owns the franchise system) grants a license to a franchisee (a company or person who contracts to use the franchise system) the right...

Two years ago, John Falvey, then a specialist broker for Goldman Sachs on Wall Street, decided he needed a career change. After quitting his job, he came across an old colleague who was thriving as a franchise owner of a...

We all know to expect death and taxes, but tenants can add one more thing to that list: lease renewals.

A lease begins to expire the day it's signed. Yet, how often have you found yourself scrambling to...

With the economy in the dumps, an array of franchisers are raising their standards for prospective buyers. They're demanding candidates bring much more cash to the table, as well as a stronger track record of experience in...

In this article I want to be totally honest with you: Whenever you encounter such offer, not only in franchising but in any business opportunities, my only suggestion for you would be to stay away, even run away from them.

A conventional wisdom on franchising says that absentee ownership is not ideal in running franchise units; Therefore, most franchises offer franchising opportunities that do not allow absentee ownership. Perhaps they should...

Frequently, someone tells me during a consultation that they found us on Google. This is not difficult to imagine, the name of our firm comes up if any one of a number of franchise related inquiries is entered into Google...

Talking to franchisees can give you something you won't get anywhere else: a feeling for what it's like to run this business day to day. Thinking solely in economic terms is a mistake if you end up with a franchise that doesn't...

1. Not reading, understanding or asking questions about the disclosure document. These documents are typically long, sometimes 80 pages, but it is very important that you read and understand each item, 1 through 23, of...

A potential franchisee should always find out about the history of the franchisor in the territory that they are planning to open their store before entering into a Franchising agreement with the company. If the franchisor...

Buying a franchise can be a great way to get into business. You get to be your own boss, your
business has an immediately recognizable name, you have greater access to products,
probably at a lower cost, with...

Ecommerce is reaching enormous numbers as more and more consumers are relying on the convenience of online shopping.  Shoppers can peruse the web for anything from clothes to electronics.  It is much easier to log...

Hardy Grewal may not be as internationally known as Steve Jobs, Bill Gates and Howard Schultz, but his business is as much of a household name as Apple, Microsoft and Starbucks. Grewal went from corporate accountant...

You’ll need to do some sleuthing to find out whether a particular low-cost franchise is really a good business opportunity and if it suits your own interests and skills. Many would-be franchisees skimp on research...

Are you thinking of owning a franchise? Reviewing a franchises business plan and analyzing their FDD is a big project but shouldn’t be taken lightly.

What is the FDD

An economic downturn or recession creates job insecurity and causes unemployment to rise. The down-sizing of jobs adds to the overall uncertainty in the market place, disenfranchising some members of the workforce...

For those about to enter the world of franchising, the leap may seem daunting. After all, you are about to enter into an entirely new business--the business of selling and servicing franchises. And, just like the franchisees you are...

Some franchisers aren't just trying to weed out the less desirable buyers. Instead, they are actively recruiting groups they consider good bets.

Consider Maid Brigade Inc., a house-cleaning franchise based in...

The work at times takes her to dark, dank and moldy places. Sometimes, she can be found creeping through crawl spaces, trudging through water-damaged basements and cleaning out dusty air vents.

Before the financial meltdown sent shock waves through the labor market, Chad Marshall was riding high as an executive at Panasonic Broadcast, where he’d worked his way up the ladder for the past 16 years.

Franchising has been characterized as a way to be in business for you without being by yourself. Rather than having to "reinvent the wheel," a franchise owner can take advantage of tested concepts...

SmartPulse — a weekly reader poll in SmartBrief on Restaurants — tracks feedback from restaurant owners and managers about current trends and issues.

Last week’s poll question: What is the greatest challenge...

More and more people are now starting to think that owning and operating a franchise business is one of the surest ways to become successful. Furthermore, people think that franchising opportunities is a passport to vast riches...

The nation's economic recovery is on a slow track, but the franchising industry is surging ahead.

The Franchise Business Economic Outlook reveals that franchising is responsible for 18 million...

Item 7 in the Franchise Disclosure Document requires franchisors to present in a prescribed format a franchisee's estimated initial investment needed to start the franchise business. It's important for...

Entrepreneurs can decide to buy a franchise or go it on their own with an individual start-up business. There are differences between the two types of ventures. Before individuals make a decision, they...

Reporting comprehensive data on franchise businesses for the first time, the U.S. Census Bureau found that franchises with paid employees accounted for 10.5 percent of the nation's businesses.

Fortunately there are alternatives to the corporate grind today if you want to set up on your own to generate an income. The internet has opened up another platform of commerce that many are turning to build an...

There are literally thousands of available franchises for entrepreneurs to purchase in the hope of achieving small business profit. So how do you go about identifying the best option for you?

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...

When researching a Franchise opportunity, one of the most important things you will do is to talk to current franchisees in the system. No one knows the business like those out in the field and, providing you...

January may be the official start of the New Year, but for many people the September, back-to-school season still signifies a time for new beginnings and making a fresh start. With summer drawing to a close and...

Restaurant companies seeking sustained growth continue to turn to franchising as one of the most important ways to expand, according to a new report from Chicago-based foodservice consulting firm Technomic.

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...

Becoming a franchisee is a commitment that you will likely be making for the long run. Therefore you will want to be certain that you make the most logical choice that you possibly can. In order to do this, there are...

At first glance, it would seem ideal if a franchise does not require a royalty fee. And in fact, there are various franchise opportunities being offered today that do not have royalty fees attached. These opportunities...

Disclosure Documents are a summary of information on the franchisor, its executive team and its franchise agreements. The document is provided to potential franchisees so that they may make a more...

Owning a franchise is not for everyone The right person in the wrong program can lead to profound unhappiness. And, because the investment can involve your life savings and a long-term legal commitment, this...

Every year, thousands of Canadians from all walks of life respond to the call of entrepreneuralism.  Many people are attracted to franchising as a method of doing business because of what they perceive to be a...

In today's tough economic climate a significant number of unemployed executives and managers are investigating franchise opportunities as an alternative to finding another job. Truth be told, most of these former...

According to author and professor Stephen Covey, research shows that trust within businesses is on the decline. "Only 28 percent of employees believe CEOs are a credible source of information," Covey writes...

The U.S. Census Bureau will announce findings from its 2007 Economic Census Franchise Statistics, the first detailed data showing the economic impact of franchising, during IFA's Public Affairs Conference on...

Awareness is growing in Ontario of the potentially enormous scope of the definition of franchise under Ontario's franchise legislation. Familiarity with the definition of what constitutes a franchise will...

Dear Gladys: I have been selling new and used cars for 15 years. Now I'm ready to open my own used car lot. I have several things that I need to work on before my big launch. My biggest concern is...

You have probably heard the term “turnkey” many times and may have wondered what it means in terms of franchising. Turnkey basically refers to a franchise package so complete that everything you...

Acquiring a franchise business system is like dating.  You meet a person you thought you like and before you know it you are head over heels in love with him, but you should know who you...

Franchising is a specialized business model that allows thousands of individuals each year to fulfill their dream of owning a business. While every system may operate a little differently, there are basics that...

With lay-offs abounding, employee benefits diminishing, and less employee/employer loyalty than ever before, now might be the perfect time for you to buy your own business. If you've always thought...

Buffalo Wild Wings (BWLD.O), a U.S. sports bar-and-grill chain, outlined ambitious plans to enter the Canadian market earlier this month, saying it has found a "perfect fit" in a country where people like to eat...

The one question I hear asked the most often about franchising is, “How do I know if this is the right franchised business for me?” If I were asked that question by one of my three...

The economic climate is preventing many franchisees from reaching their full potential, says Miriam Brewer, director of education and diversity for the International Franchise Association, a trade organization...

I have dealt with a great many franchisors over the past 3 years, some 800+ of them in fact and I have found that they fall into certain categories, a bit of a sweeping statement yes but let me explain.

Talking to franchisees can also give you something you won't get anywhere else: a feeling for what it's like to run this business day to day. Thinking solely in economic terms is a...

1. Where can I get a company's pre-sale disclosure document?
The Franchise Rule requires franchise and business opportunity sellers to provide to prospective purchasers with a Franchise Disclosure Document.

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...

1. What is franchising?
A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or advertising symbol and an individual or group seeking the right...

Protect yourself by learning what a business opportunity really is, how the government regulates them, and the steps you should take to ensure you've found the best opportunity available.

Hardy Grewal may not be as internationally known as Steve Jobs, Bill Gates and Howard Schultz, but his business is as much of a household name as Apple, Microsoft and Starbucks. Grewal went from...

Before Kelly Waddell, 31, and his wife, Sandra, 35, opened their Pop-A-Lock franchise in Dayton, Ohio, they went to bed at 11 p.m., and assumed everyone else did, too. "The biggest shock," says Mr. Waddell, "was...

For years I've been reading articles about franchisors' desire to select franchisees that are not too entrepreneurial. Recruiting business people, who are interdependent rather than independent. Of course, there is some...

For the individual owner, there are definite advantages to franchising, some of which are outlined in the list below.

Pros of Franchise Businesses

Well-known trademark, either regionally or nationally...

One of the most important events in franchising is the introduction of the Franchise Rule on October 21, 1979 by the Federal Trade Commission (FTC). The FTC Franchise Rule requires all franchisors operating anywhere in the...

With business loans still hard to come by, franchisors unwilling to sacrifice growth are making their systems more affordable to new owners by reducing franchise fees, offering incentives, providing in-house financing or scrutinizing...

Can you answer a resounding “YES” to these questions?

-Am I willing to dedicate long hours every day for at least two years to get my business up and running?

When your grandfather is one of the co-founders of a successful franchise concept and system, it might seem natural for subsequent generations to be involved. But that wasn't always the case for Justin and Sally Haddock.

If you can't beat 'em join 'em. So said Corey Butcher, a health club entrepreneur who progressively purchased four gyms before deciding he needed some national muscle to stay healthy in the competitive Dallas market....

Gone are the simple days of passive franchise “recruitment,” when potential franchisees were the ones making the first-level decision of who would own a franchisor’s next store. Now, with a tight credit market and...

There are two types of franchises:

1. Product Distribution Franchises
2. Business Format Franchises

The most important part of product distribution format is the product manufactured by the franchisor.

With domestic development slowed greatly among many U.S.-based chains during the past 18 months, international expansion deals have taken on a new importance.

Franchising is a wonderful way to go into business for yourself. So many things have already been established for your benefit: branding, marketing, processes, products, systems, etc. Building a business through Franchising has been...

Difference in Objectives:

Unlike the franchisor whose objective is to sell you his franchise if you qualify, the franchise consultant should have no bias toward any specific franchisor or franchise type. Rather, his sole...

It is generally agreed that it is in the best interest of the franchise system as a whole that the uniform standards, methods, procedures, techniques and specifications of the franchisor’s system be fully adhered to by all...

Bank lending to small businesses is still in the dumpster, and venture capital investment remains way down. But even if times were flush, some entrepreneurs would rather get funding elsewhere. Business owners like Erica Duignan Minnihan...

Q: I think I have the drive, the desire and the commitment to succeed in small business, but I don't have an idea for the business itself. How do I come up with that idea?

The Leelin brothers, Mendrick and Michael, are betting they can turn their sleek new Japanese shabu-shabu restaurant in downtown Los Angeles into a national franchise — despite opening in the worst economy in decades.

Do I really need an attorney? That's a question often asked by participants at SCORE seminars where a section is devoted to legal issues. According to Jonathan Olson, Green Bay attorney and SCORE volunteer, the main reason to...

Starting a small business is an exciting adventure, but the decision to become your own boss should not be taken lightly.

Here are six steps to take into account and plan for before taking the leap into entrepreneur land.

Dear Karen: Finding new clients is tough. How can we develop more revenue from existing customers?

Answer: Identify problem areas for your clients and offer to handle them. If you can find a match between your products or service...

There are different types of available businesses in the franchise industry today. It is of great importance to present an overview of these types so that as a potential franchise investor,  you can easily find the best fit for you.

People who buy franchises are among those creating new American jobs—about 36,000 this year, according to the International Franchise Association. The trade association, which represents about 1,250 franchise companies and 10,000...

Why start a company from scratch when someone's already figured out the business model? That's the lure of franchising.

"Many people don't have the stomach to be an entrepreneur," says Robert Bond, publisher of Bond's...

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...

After careful review of the UFOC/ FDD, you should be able to evaluate the business proposition, and whether or not the franchise will help you meet your financial and future goals. There are several major areas you must consider in...

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...

From fast food concepts to eco-friendly businesses, franchises that occupy a unique niche in the marketplace are flourishing. By offering products and services that people are passionate about, franchises like Wienerschnitzel, the...

Ignore short term pain and get started today

You’ve surely heard the old adage, “No pain, no gain.”

While normally applied to physical activities, it can also apply to starting your business in the...

A franchise business is a method a company uses to deal out its products or services through retail outlets owned by autonomous, third party operators. The independent operator does business using the marketing methods, trademarked...

What is a start-up business? A business is considered a start-up if an entrepreneur begins a business based on a unique idea and takes it all the way from the planning stage to actually running the business. The business is usually...

Franchising is a fast-developing form of business in the US. Take into consideration some facts about it: according to the International Franchise Association, there were more than 3,000 franchise brands with 901,093 franchise...

Franchise businesses have gained popularity over the years. Many business-minded individuals have seen greater potentials for success in franchising rather than starting their own businesses from scratch. This makes the concept of...

While the international business community may seem ripe with potential franchisees, there are some inherent challenges in signing on operators from outside the U.S.

Mario Herman, a lawyer who represents clients in the...

When I refer to the names McDonalds or Dominos to you what thoughts pass through your mind? Do you think of a popular Scottish family name and a popular game played with little black wooden blocks? I would suggest that for lots of people...

With more than 5,000 franchise opportunities available worldwide, ranging from McDonald's to day spas to dog grooming, finding the right one for you can seem overwhelming. But the process may be more accessible than you think.

My opinion is that one does not have to be a "born entrepreneur" to succeed, but it certainly helps. Innate tendencies seem to make certain people more likely to take risks, more able to identify and act on promising business...

While "due diligence" can be used to describe several different investigations that anyone party to a contract might carry out before signing that contract, in the case of a buyer considering taking over a business, the due diligence...

Going into the franchise business might be a very good idea for you as it is one of the popular methods of doing business today but when you do a search of the available franchise opportunities, choosing one among the hundreds might be...

When Justin Kopelman was fresh out of college, he didn’t interview for jobs or choose a set career path. Instead, he tried his hand at entrepreneurship and purchased a Pita Pit franchise. At 29, Shawn Ligon struck out for business...

The following information is inherent to an agreement:

It states that you're a part of the franchise and have a certain fixed fee to pay as part of the consideration. It has location provisions. The company will have the right to...

Have you considered being your own boss, making an assertive business move, and changing your life?  Becoming a franchisee is exactly what you have been thinking about.  One of the better things about adopting the mindset of an...

Arbitration clauses in Franchise agreements are becoming the norm, but is that a good thing from a franchisee’s perspective? Some franchisees hold the belief that, since the franchise agreement is drafted by the franchisor, any...

When looking for a potential business or franchise there may be many questions that one asks themselves, we are going to look over one of the major mistakes that has been attributed to the franchise ideas not working and the potential...

Franchising can allow your business to grow at rapid pace, and gain a presence in new markets. Although there are disadvantages to franchising your business, and although it will not suit all business models, franchising is often an...

Franchisees need to dismiss the notion that ‘royalty fees’ are an extra payment coming out of their pocket; they are a part of the process of partaking in the franchise system.  It should be looked upon as the Franchisor...

Widespread job losses combined with strong regional demographics have turned metro Denver into a popular spot for franchises.

But even though many people who've lost their jobs want to go into business for themselves, getting...

A handful of national franchise brands – ranging from service retailers to restaurants – are offering big startup cost discounts and bigger royalties to new franchisees who live in ‘hot’ areas. And North Texas is...

Considerable discussion and research has gone into survival rates of franchisees. Websites selling franchises often tout how much safer operating a franchise is when compared to starting an independent business. The table below is a...

In the business world, no method, no magic formula can guarantee success or bring success with no efforts.

Franchising reduces risks, speeds up success, allows copying formulas that work, gives the possibilities to avoid mistakes...

Below you will find some interesting facts and stats about the franchising business industry in the USA that validates the major role the franchise business model plays in our national economy.
 
Popular Franchise Facts...

Many Americans dream of starting their own business. In 2008, more than 27 million small businesses were active in the United States, and more than 600,000 new businesses are started each year. One of the first decisions for any...

When it comes to starting a business, many people think of buying a franchise as a shortcut to success. While there is some truth to this, not all franchises are created equal, and not everyone is cut out to be a franchisee.

There are many factors to consider when weighing taking over an existing franchise vs. opening a new one. Obviously, the territory may already be sewn up by the existing franchise, so the question becomes how badly does the potential...

When deciding which franchise is right for you, you may wish to take into account the advantages and disadvantages of large franchise versus small franchise systems. What can you expect from each type?

Large Franchise Advantages

After you've received all the documents from the franchisor, you'll enter a preliminary negotiation stage before you sign. This is the most critical period in your dealings with the franchisor. At this point in time, you'll meet a...

Finding the best site for your new franchise unit (assuming your brand is not mobile or home-based) is a critical decision, one that should be based on the cold, hard facts--the numbers. Finding those numbers is easier today than ever...

A franchise is a clone of a successful business. The franchisor has developed a system for reproducing his business (often right down to the last detail). As a franchisee, you rent the franchisor's trademark and method of doing business.

Franchise businesses are businesses structured with a franchisor who licenses specific trademarks and methods of doing business to a franchisee in exchange for recurring payments in the form of franchise fees.

A franchise operation can be an excellent investment for people dreaming of self-employment. Franchise opportunities fall into three basic categories: Product, Service and Wholesale Distribution. The franchise you select must be one that...

If you are thinking about purchasing a franchise, keep the following 5 tips in mind.

1. You are a customer to the franchisor. Many people believe that going into a franchise is like joining a partnership where you, the franchisee...

Q: I am in the process of buying a franchise and am curious. What exactly am I supposed to get for my franchise fee?

A: Let's start with some basics.

In the language of franchising, when you use the phrase...

At first glance, it would seem ideal if a franchise does not require a royalty fee. And in fact, there are various franchise opportunities being offered today that do not have royalty fees attached. These opportunities would boast that...

Development formats and agreements in franchising can be divided into two broad categories: Single-unit franchising and Multi-unit franchising

Single-unit franchising: an arrangement by which the franchisor licenses the...

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...

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.

1. What is your career position at the moment?

Picture an excited new franchisee ready to join a growing franchise system. This new franchisee has already made a life-changing decision after searching for the right concept and the right company. He strongly believes that the...

Have you found yourself getting up in the morning and dreading going in to work?  Is it because you’re tired of seeing that person with the sly, affected, and insidious smile?  I know – that horrific person is your...

There is no magic formula for small business success, but most owners who do well share the same six personality traits, according to a new report.

The Guardian Life Small Business Research Institute report hopes to explain why...

Although most individuals execute the franchise agreement in the name of a corporation, franchisors typically require a personal guaranty by the shareholders of that corporation. This prevents the owners of the franchisee entity from...

Is your franchise agreement coming up for renewal?

If it is, in order to continue in business, you will have to sign a new franchise agreement when your old agreement expires. The renewal provision of your agreement may be a...

Yes, but again, this can vary by franchise concept. Many franchisors will sell area or master franchises within a certain specified territory. These larger territories can be costly. If you own a single franchise and are successful, most...

Are you happy in your current job?  The average worker puts in 40 hours a week… at least.  If you are getting 8 hours of sleep each night, you are at work for at least half of your waking life during the workweek.

Before You Begin

You've carefully evaluated yourself and built an individual model that can be used to determine if a Franchise opportunity has the attributes you want. You know what you need to find in a franchise business to...

When you are searching for franchise ideas and investing in a business, make sure that you are aware of what your rate of investment can be. Many good investors, whether it be on the stock exchange or property always know their possible...

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...

George Miksovsky spent over 30 years working in the electric utility business. He had broad experience in the industry, from customer service to distribution. However, like so many these days, he was a victim of downsizing.

If you are considering a Franchise as your next career move, you probably already understand a number of the benefits to being a part of a franchise system. However, as each franchisor will offer different levels of assistance, it can..

The decision to award a franchise is highly influenced by territorial considerations. Very often, the franchiser will seek partners in specific locations, where their business might be unrepresented. So, when you sign up as a franchisee...

Want start a franchise business but don’t know where to begin? This is a big decision for any entrepreneur and a lot of thought and planning must go into it. You need to consider several factors before you start a franchise...

Once you have decided a franchise is the right route for you, how do you choose the right one? To choose the franchise that is right for you and that will fulfill your business dreams, you must know yourself, your skills, and your dreams...

Tell me what is wrong with this sentence:  Franchising provides the opportunity for entrepreneurship.  It is grammatically correct and “entrepreneurship” is a “real” word; so, where is the error?

Franchising may have been around since the beginnings of humanity.  Albert Singer gets the credit for establishing the first “commercialized” franchise, but historians believe similar activities could have existed well...

If you're considering “buying” a franchised business in Canada and you live in Ontario, Alberta or PEI (and soon, New Brunswick), consider yourself lucky because they have specific legislation that protects franchisees.

Millions of workers are quietly toiling in their cubicles and dream of breaking free from corporate culture. Almost a quarter of full-time or part-time working Americans have considered leaving a job to become self-employed, according...

College buddies Dan Ketmayura and James Kim have gone from selling high-tech know-how to serving up sushi. The pair bought a franchise in Milton after being laid off last year. Instead of waiting on the recovery to yield more corporate...

People who buy franchises are among those creating new American jobs—about 36,000 this year, according to the International Franchise Association. The trade association, which represents about 1,250 franchise companies and 10,000...

Franchises play an integral role in our lives and American society in general. Most likely, you're a frequent customer at the local Subway franchise. Or you know people who have found success through franchising. Perhaps you've even...

Once you have decided to invest in a franchise, step back from the excitement of going into business for yourself and make sure the franchise of your dreams is all it promises to be.

You may have been working with a...

Despite best efforts, there may come a time during a franchise partnership where franchisee and franchisor disagree. This is a reality in any relationship. Maybe you disagree with how national advertising dollars are being spent, or...

The franchisee/franchisor relationship is a unique one. It differs significantly from the average “employee/employer” dynamic in various ways.

Over the course of 16 years, I’ve been both a franchisor and a...

At one time, a good credit score and the backing of a big franchise name was enough to secure funding for a new franchise venture. But these days, credit is so tight that many dreams of franchise ownership have had to be put on hold.

For years I've been reading articles about franchisors' desire to select franchisees that are not too entrepreneurial. Recruiting business people, who are interdependent rather than independent. Of course, there is some truth to this not...

The economy is on the mend. The government has launched a boatload of programs to get small businesses financing. President Barack Obama has urged banks to give the companies a "third and fourth look" before rejecting them for loans.

FAST-FOOD firms have to be a thick-skinned bunch. Health experts regularly lambast them for peddling food that makes people fat. Critics even complain that McDonald’s, whose golden arches symbolise calorie excess, should not have...

So you got the franchising bug. You heeded the calling to go into business for yourself. But you decided you didn't want to go it alone and you've teamed up with an operating partner to launch the new unit. It's now time for a reality...

Whether buying a franchise or looking to franchise an existing business there are numerous issues to consider. One seldom mentioned but important area affecting prospective franchisees and franchisors is deciding on which type of...

Starting a franchise business is the safest and easiest way to enter the business world and enjoy success. Well, once you have decided upon a new franchise business that is likely to provide a high ROI (return on investment), the next...

You’ve probably heard the term “turnkey” many times and may have wondered what it means in terms of franchising. Turnkey basically refers to a franchise package so complete that everything you need to start the...

There are many advantages to getting help from a professional who knows the inside workings of an industry or issue. Just having someone who can help interpret the jargon associated with a topic that is new to you can be a tremendous...

If you were trying an aerial trapeze stunt for the first time, would you do it without a net and safety harness? Probably not because chances are very good that you would fall. The same holds true for business ownership. If you've never...

Over the past 15 years, Jim Idsardi has found success owning numerous businesses, however becoming an entrepreneur wasn't the career path he originally planned on pursuing, "I studied accounting in college, and I wanted to become a DEA...

Investing in your own business can be one of the most critical decisions one will ever make. The challenges are enormous physically and emotionally. Even finalizing a decision to own one's own business is daunting in itself. Many budding...

WASHINGTON, June 15, 2010—A new law in Oklahoma recognizes the important role that franchised businesses play in the economy and clarifies the definition of franchisees and employees, the International Franchise Association said to...

Owning a franchise is often depicted as being in business for yourself, but not completely alone. Franchise owners work under a proven successful business structure. They also have access to proven operational and marketing strategies...

You know, it’s kind of funny.  I very often have people ask me for a business that no one else has.  Something unique, or different from everything else out there.  And I understand the thought behind it, too.

1. Select a franchising company that is primarily interested in distributing quality products and services to ultimate consumers. Although this rule may seem obvious, many (if not most) franchising companies are primarily interested in...

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 franchisor/franchisee relationship.

Recent fast-food litigation involving Burger King raises interesting issues on the rights of franchisors to mandate prices with its franchisees.

Burger King claims it has the right to mandate a maximum price of $1 on double...

Owning a franchise is generally considered to be the safest route to success for the aspiring entrepreneur compared to an independent business. This is due to the high success rate of the franchise business opportunity because of...

The first factor that should be taken into account is, are there enough people or businesses in your area to sustain your franchise ideas? If the answer is no, then research local developments, such as new industrial parks or housing...

Imagine a well-run franchise as an orchestra. All of the musicians are attentive, working together and following the conductor’s lead to make a beautiful piece of music. Then, imagine what it would be like to be part of such a...

When Remi Tessier recently decided to open a pizza franchise, he got a big surprise: it was not going to be easy to get financing from a bank.

Mr. Tessier had owned a liquor store for nearly a decade. He had a good credit score...

Opening a franchise business is widely regarded as a very effective way for the average entrepreneur to minimize their risk when starting a new business. In general terms I would agree that this claim is accurate. However, don’t...

Is the franchisor a one-person company? or
Is the franchisor a corporation with an experienced management that is well trained?

Is the franchisor offering you an exclusive territory for the length of the franchise? or...

Financing for franchisees continues to be an obstacle to the growth of franchise brands. Conventional lenders have pulled out of franchise lending unless the concept meets very stringent criteria. The International Franchise Association...

As the song by Joni Mitchell goes; " I've looked life from both sides now," and, I have. (The song was part of the opening ceremonies at the 2010 Canadian Winter Olympics, and keyed my imagination.) After spending more than three...

Franchising has had an unquestionable impact on many countries economies and is widely acclaimed for its contribution to GDP, retail sales, job creation and training. Many chain operations utilising franchising have grown large franchise...

The Franchise Disclosure Document (FDD) - An Overview

If you're serious about buying a franchise, at some point you're going to receive and review a Franchise Disclosure Document (FDD). The purpose of the FDD is to give the...

Of all the offerings in the franchise market, the restaurant industry certainly offers the most choices. Any why not, people need to eat! Prospects are drawn to the restaurant industry under the assumption that since they like to cook...

In the early 1990s before he was a professional ice hockey defenseman and Olympic medalist, Aaron Miller studied business at the University of Vermont and wrote a business plan for a sports bar.

The franchising industry has undergone many changes since the concept took off fifty years ago, and one of the biggest changes is the opportunity for multi-unit ownership. This is where the franchisor grants a franchisee the right to...

During this year’s IFA Legal Symposium, I have the privilege of   moderating a plenary session panel discussion entitled “Franchise Dispute Resolution: The Judge’s, Arbitrator’s and Mediator’s...

THE mood of executives at retail firms normally moves in lockstep with that of their customers. But in America the news on May 25th that consumer confidence had reached its highest level in two years left them oddly subdued. Consumer...

The hottest opportunities in franchising are new and old. Services that cater to children or seniors will be among the most significant opportunities in franchising over the next five years, says Rob Bond, president of the World...

It's the kind of franchisee-backlash horror story that keeps a franchisor up at night. Last December, an independent association representing half the 1,800 franchisees of the Super 8 hotel chain threatened legal action to overturn an...

What's a franchise?

A franchise is a license to use a trademark in exchange for payment of fees or royalties and involves some material assistance from the trademark owner. The typical business franchise provides the franchisee...

The term franchising involves a relationship between two parties, the franchisee and the franchisor. We will start with the franchisor; they provide the guidance for the business, have an identifiable brand name, a substantial supply...

Think franchise opportunities are limited to fast-food chains? Think again.

Sure, the traditional fast-food favorites are still going strong, but some interesting alternatives are popping up as well.

Owning a franchise is generally considered as the safest route to success for the aspiring entrepreneurs compared to an independent business. This can be due to the high success rate of the franchise business opportunity because of the...

A franchisee must be a sound business person. Even if its about food or cosmetics for a franchise to be a success it is important for the franchisee to have sound business sense and keep the franchise on track.

Today the concept of franchising is getting popular day by day. And why not? Owning a franchise of a well known company or brand has got a number of benefits. New franchises opportunities allow you to own a business without worrying...

A franchise agreement is the legally binding cornerstone of a franchisor-franchisee business relationship. It spells out, in carefully worded terms, how the new franchise will be run, as well as what the franchisor's role will be. It...

Franchising has become one of the most important and effective business growth strategies in the past quarter century. Although franchise system development dates back centuries to the times when monarchs awarded territories to tax...

Finding success in franchising is not that difficult; still, the job becomes easier if you have some pointers regarding the business. Here are some top tips on how to find success as a franchisee:

• Research and research...

The phenomenal growth of franchising in the U.S. is a testament to the value of the franchise model to those interested in owning their own business. How big is franchising? A study called the Economic Impact of Franchised Businesses...

Why Interview Franchisees?

Buying a franchise is an increasingly popular way to start a business. Before you buy a franchise, however, you need to perform due diligence to be sure that the franchise is a viable business and that...

Prospective franchisees should do their homework

Unsinkable luxury liners aren’t supposed to hit icebergs on their maiden voyages, let alone plummet to the bottom of the Atlantic.  Yet, notwithstanding watertight...

If you are thinking about purchasing a franchise, keep the following 5 tips in mind.

1. You are a customer to the franchisor. Many people believe that going into a franchise is like joining a partnership where you, the franchisee...

An investment franchise is one that generally involves a high amount of investment that may require some time to realize a benefit. You can actually judge all franchise businesses an investment in one sense given that all will require so...

Raising enough capital to start your own business can be an up-hill climb, especially given today’s cautious lending environment.

Opening a franchise might be the easiest way to do it as banks swing available credit in...

In today’s highly competitive franchise food marketplace, it is no accident that some franchises have maintained a strong market position even in this very tough economy. The food service business is often living on the edge with...

There are so many important factors to consider when it comes to franchising. If you are thinking about buying into a franchise, you must invest the time into research everything you need to know. You want to make sure you are investing...

What is a reasonable rate of return on investment in a franchise opportunity? Though the question seems simple, it is still an important one, so let's analyze the factors involved in getting an answer.

If you are purchasing a restaurant franchise there are a few items you should know about that are not required to be disclosed in a Franchise Disclosure Document when you buy a franchise. Although the Federal Trade Commission requires...

If you have been thinking about starting your own business, you've probably considered the possibility of opening a franchise. Becoming the owner of a franchise is not for everyone, but for the right person with drive, determination and...

More and more the trend nowadays is for a family to come together to make a business work.

Through a survey I did towards the end of 2009  – I’ve found that the growing trend is that people are pushed out of...

In his autobiography, Mark Twain quoted Benjamin Disraeli as having said that there are three kinds of lies: Lies, Damned Lies and Statistics. Had they been involved with franchising, I’m sure they’d have made the third...

2009 was a difficult year for most franchisors, but 2010 is a new year and many franchisors are again looking to grow their businesses. Developing and implementing a "non-traditional" franchise program is one of several key growth...

Starting a business is a lot like becoming a parent. Not only do you have to prepare for your start-up emotionally and financially, but you have to be committed to its constant needs until it’s mature enough to hum along on its...

Business: The franchisor gives to its franchisees, all the elements necessary to allow them to sell the products or services to final consumers; some examples: cellular phone franchises, gift shops, restaurants, cafes, and travel...

Sometimes it seems that the longest journey in building a brand is getting off the ground. Starting a new concept or planning to franchise an existing one requires a tremendous amount of hard work, a dedicated support staff, lots of...

Clients who are contemplating purchasing a new or existing franchise in Canada are always asking how financing a franchise works in Canada. The Canadian franchise industry is of course huge and covers almost every type of business in...

The first step in identifying whether a franchisor provides financing is to review the Franchise Disclosure Document (FDD) and in particular Item 10. This section of the FDD deals with franchisor financing. Another approach is to simply...

Joining a successful franchising business is the most reliable way to open your own business. Purchasing someone’s operating franchise allows you to skip over the start-up phase when profits are usually very scarce. In addition...

Franchisees searching for opportunities have a number of choices. The best approach is to use a combination of these choices. By following this approach a prospective franchisee can increase their probability for finding the best...

Jim Denney faced a common choice: buy a franchise or start an independent company?

He was an experienced business owner in Scotia, N.Y., near Albany, who had spent a year investigating a promising franchising opportunity...

If you're considering “buying” a franchised business in Canada and you live in Ontario, Alberta or PEI (and soon, New Brunswick), consider yourself lucky because they have specific legislation that protects franchisees.

Millions of workers are quietly toiling in their cubicles and dream of breaking free from corporate culture. Almost a quarter of full-time or part-time working Americans have considered leaving a job to become self-employed, according to...

It comes back to supply and demand. Researching what items people purchase within the community -- and what items they leave the community to purchase -- is one of the first things Richard Proffer, a business development specialist with...

There are four critical factors that combine to make a good franchise system:

1. The Organization 

Does the franchise organization have the ability to develop and maintain a franchise network?  It is one thing...

Pros of Franchising

Reduced Risk

Franchising does not guarantee success, but a good franchise should help reduce the chances of failure.

A Proven System

With a tried and tested operating system, the...

Now that you've got an idea of the industry you're interested in and the financial requirement you can commit to, try visiting a franchise trade show. They're a terrific way to gather a lot of preliminary information and survey the field...

Owning your own business is an attractive prospect for many people, but it does carry a great deal of risk with it. There are many advantages to working within a franchise rather than owning your own business.

Being part of a...

Most professionals in franchising would agree that trust is a vital element in a successful relationship between a franchise system and its franchisees, whether on an individual level or between the franchisor and its franchisees as a...

A franchise agreement is the legally binding cornerstone of a franchisor-franchisee business relationship. It spells out, in carefully worded terms, how the new franchise will be run, as well as what the franchisor's role will be. It...

To improve your probability of success, you must take the time to evaluate yourself, your strengths and weaknesses, and, most importantly, the franchisor and the industry in which it operates.

The "fit" is critical. Square pegs...

Talking with thousands of franchise buyers and owners has revealed many common mistakes that kept them from reaching the best decision for their situation. Here are the most common:

A great industry assures your success. Some...

1. Understand how franchising works!
 
2. Know what your own financial situation and objectives are to determine if franchise ownership is a workable option for you.
 
3. Examine your own motives...

Sooner or later most people at least wonder if becoming their own boss would be a better alternative to paid employment. However without fully examining alternative options you can end up going from the frying pan into the fire, losing...

After spending years in the franchising industry, Joe White has seen it all -- the good, the bad and the completely disastrous.

"There are great franchisors who have failures," Mr. White says. "The reason they have failures is...

When it comes to owning their own businesses, many people are intimidated. They look at developing an idea. They think about what they love. But then they get stuck.

After all, when it comes to starting a business and building...

When the job market hits the skids, employees start looking for a little more stability. Often, their gaze lands on franchising.

In New York, more than 430,000 people make their living owning franchises, according to a report by...

When buying a Franchise, you buy a lot more than the bricks and mortar and the inventory that stocks the shelves. In fact, what you’re actually buying are the things that you can’t see and often the things that you...

Question: I've always wanted to own my own small business, but rather than having to come up with a product or service business myself I am thinking about purchasing a franchise. What kind of monetary investment would I need to make to...

In order to receive financing, a business must apply for credit at a source such as a bank, commercial lender or leasing company. With proper planning and guidance, you can greatly influence the financial institution's decision on...

Despite all the scams there are hundreds of legitimate franchise opportunities available, including home-based franchises. So how do protect yourself from the scams? It's simple: be cautious!

You need to beware of companies...

Until last March, Tami Swearingin was a division general manager in Atlanta for PPG Industries, the glass, sealant and coating conglomerate, with a six-figure salary and a sure path toward a top-tier position. Now she is driving trucks...

You should always know what you are getting into and this is a big must especially if you are thinking of signing that franchise agreement.  A mistake here or lack of foresight on your part would definitely cost you more than your...

The overall goal of a FAC is to facilitate communication between franchisor and franchisee and provide a platform for the sharing of ideas and implementation of ways to maximize profits for both parties.

In 1993 during the...

Owning and operating a franchise may be a great way to fund your retirement. Yet for more and more people who take an early retirement, it’s become a way to ease into full-time retirement. Franchising has even become a vehicle for...

More and more women are realizing that franchising can earn them some serious cash as well as allow them the flexibility to spend more time with their families.

When I first told some moms that I was writing an article about the...

In today's troubled economic times of layoffs, downsizing, and outsourcing of jobs, many individuals find themselves unemployed without enough resource to live out their years. A quick review of their retirement plans, savings and home...

Now May Be the Best Time to Start Something New

Seemingly not a day goes by without hearing about the negative aspects of our economy. With all of the negative attention, aspiring entrepreneurs should see one thing - opportunity.

Training is everything for new franchisees. They have a lot to learn about their new business, one aspect being their financials. The key for a franchisor is knowing the right time to train its franchisees on this one very crucial...

The face of the typical startup entrepreneur these days is a bit wrinkly, sporting some gray hair, and having the wisdom that comes with age. But is it a good financial move to start a business late in life?

According to recent...

One of the universal questions asked by anyone looking to join a franchise is, “Why are prospective franchisees attracted to a franchise?” The answer lies in the understanding of what motivates personal decisions...

1. What is franchising?
A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or advertising symbol and an individual or group seeking the right to use that identification in...

Financing for franchisees continues to be an obstacle to the growth of franchise brands. Conventional lenders have pulled out of franchise lending unless the concept meets very stringent criteria. The International Franchise Association...

Arthur Romanov and Irina Salgan opened their sixth Edible Arrangements fruit-basket shop recently to take advantage of low real-estate prices and easy-to-negotiate contractor bids.

Despite good credit and a strong track record...

What defines a qualified franchise attorney?
Good indicators of a qualified franchise attorney include:

-Specializes in franchise law.

-Years of franchise industry experience.

A number of months ago, Franchise Trade quoted author Jaynie Smith in our article Healthy Fast Food: Oxymoron or Competitive Advantage?: "If someone would create a chain with healthy food, and I don't just mean healthy food that tastes...

During the years of the Internet Boom, you could count all of the Venture Capital firms interested in acquiring franchise companies on one finger - and have change left over.  Today, we live in a different world.  Now that the...

With unemployment at levels not seen since the 1930s, many people are turning to franchising to get control of their lives back by starting their own business. And now more than ever, it is essential to make sure that any business you're...

Well, very often there is, but only you can really make that determination.  The thing is, most people consider being self-employed, but most people don’t do anything about it.  Without a proper investigation of the...

It's a fact that most franchisors are passionate about the products or services they offer, but to say that the founders of Flip Flop Shops® have a passion for their business may be a huge understatement. With more than 50 years of...

Although new franchise opportunities become available all the time, some have more lasting potential than others. In this guide, we'll take a look at those industries that offer the biggest potential for franchises in 2010 and list some...

Before Kelly Waddell, 31, and his wife, Sandra, 35, opened their Pop-A-Lock franchise in Dayton, Ohio, they went to bed at 11 p.m., and assumed everyone else did, too. "The biggest shock," says Mr. Waddell, "was that our phone...

Jim Denney faced a common choice: buy a franchise or start an independent company?

He was an experienced business owner in Scotia, N.Y., near Albany, who had spent a year investigating a promising franchising opportunity...

Attending a franchise exposition allows you to view and compare a variety of franchise possibilities. Keep in mind that exhibitors at the exposition primarily want to sell their franchise systems. Be cautious of salespersons who are...

Once you decide to purchase a franchise, it will be necessary to prepare a business plan, not only for funding purposes, but also as a guideline for running the business successfully. Moreover, the franchisor will require the franchisee...

Merchant Processing: Friend or Foe? Most franchises recognize the fact that credit card acceptance is replacing cash and checks. However, most franchises have an aversion to the perceived high cost of accepting credit cards.

Running a small business requires some level of expertise in many areas. There are management issues, marketing questions and financial realities. Trying to master all areas, or at least sort them all out, can be frustrating, exhausting...

Q: I'm looking to buy a franchise, but I'm not sure what some of the terms mean. What's a UFOC? How is a master agreement different from an ADA? What are all these waiting periods for? Why do the feds restrict franchise companies from...

Prospective franchisees report that they when they read Franchise Disclosure Documents (FDDs), they are often seized with a condition called MEGO—“My Eyes Glaze Over.” It’s understandable given the amount of...

Q: I know the franchise business is regulated, but I'm not sure how that works. Are there laws to protect me as I'm looking into franchising, and, if so, how do they work? Also, do I have any potential liability in the process of...

It is generally agreed that it is in the best interest of the franchise system as a whole that the uniform standards, methods, procedures, techniques and specifications of the franchisor’s system be fully adhered to by all...

Franchise Finance in Canada calls for both you as the owner, as well a lender, to, on a combined basis, complete the financing you need for a franchise acquisition. In Canada you could of course be acquiring a new turn key franchise from...

Are you looking to get into business? There are many options to go with. One of the best options is buying into a franchise, and in this article, we will look at the options!

Take time to read this article, and you will find some...

The franchising industry is the doorway to a world of opportunity. Thousands of franchises offer countless concepts, all with varying startup costs. And while many require a storefront and overhead expenses, a large number of them...

Not so fast, Martha Stewart.

OK, you're special. You are talented and one of the best at what you do. But that doesn't mean that you're equipped to run your own business--even one within a field or industry you've been working in...

On many weeknights last year, in the depths of the recession, Tursi’s Latin King restaurant in Des Moines closed one of its three dining rooms and pared its kitchen to a skeleton crew.

Now, all three rooms are open on most...

Jim Denney faced a common choice: buy a franchise or start an independent company?

He was an experienced business owner in Scotia, N.Y., near Albany, who had spent a year investigating a promising franchising opportunity...

Since 1979, the US Federal Trade Commission (FTC) has required that companies offering franchises for sale (the franchisors) provide potential buyers (the franchisees) with a document called a Uniform Franchise Offering Circular (UFOC).

Many franchisors are moving away from territory-based systems in favour of franchises that are site- specific or for a non-exclusive territory or marketing area. This trend occurs both in systems which involve retail premises and those...

The term "franchising" refers to a business model that's been around since the mid-1800's when the manufacturers of the Singer sewing machine first dreamed it up as a way to expand the distribution of their products.

1. Not reading, understanding or asking questions about the disclosure document.

These documents are typically long, sometimes 80 pages, but it is very important that you read and understand each item, 1 through 23, of the...

You're ready to quit your day job, and venture into the uncharted territory or working for yourself. But you are still at the point of having to choose to branch out on your own, with unique business of you own making, or to invest your...

This article has been provided by the law firm Osler, Hoskin & Harcourt LLP and examines some of the legal matters you should consider when investing in a franchise, and what you can expect to receive in return.

Before New York Broadway producers bring a production on the road, they’ll test it in a few smaller cities to see if the humor or pathos translates well to different audiences. After all, not every town sees life in the same way...

Of all the offerings in the franchise market, the restaurant industry certainly offers the most choices. Any why not, people need to eat! Prospects are drawn to the restaurant industry under the assumption that since they like to cook...

In this day and age anything can be easy, so also in terms of business. This time to start a business, you need not worry about how to make good business system, how to make an acceptable product markets and other things that make you...

Is the franchisor a one-person company? or Is the franchisor a corporation with an experienced management that is well trained?

Is the franchisor offering you an exclusive territory for the length of the franchise? or Can the...

From fast food concepts to eco-friendly businesses, franchises that occupy a unique niche in the marketplace are flourishing. By offering products and services that people are passionate about, franchises like Wienerschnitzel, the world...

When Cheryl Robinson took over the bookkeeping responsibilities at a Supercuts location in 1980, she had little idea that she would one day own and operate her own Supercuts. Today, she and husband Joe, oversee an empire of 31 Supercuts...

The beauty of the franchise business model is that it allows individuals to start their own businesses without the sweat equity and headaches associated with starting a business from scratch. No reinventing the wheel here. Hundreds and...

WASHINGTON, DC. (WUSA) -- A record turnout at the International Franchise Expo this weekend at the convention center may be an indication more people are interested in becoming their own boss.

9NEWS NOW talked with a 58-year-old...

Are you a business owner who wants to purchase and run a franchise? If your answer is yes then you would probably want the services of a franchise consultant who can provide you with its knowledge and support throughout the franchising...

As a franchise investment consultant one of the most frequent questions I receive from individuals who are considering becoming a business owner is why should I buy a franchise versus starting a new business from scratch. My answer is...

Making the switch from being an employee to being a franchisee is a big change. And no matter how excited you are about becoming your own boss, you will face some major challenges -- both psychological and operational.

The partners in a franchise agreement are the franchisor, who grants the franchise license to the franchisee, who invests in it.
 
Remember, a franchise is NOT an independent business. The franchisee buys the opportunity...

If you like the idea of being self employed yet entering the marketplace with an already established business then a franchise might be a good opportunity for you. However, there is a lot to learn about franchises before taking a leap...

We all have some of that entrepreneurial spirit in us, even though most of us are employed by someone else.  It stands to reason, then, that most of us also consider self-employment as an option to working for someone else, and for...

At the age of 50, California Businessman Jeff Gilly found himself out of work with a great resume that couldn't get him a second interview at jobs he was over-qualified for. Meanwhile, the Florida coast lured 57-year-old professional...

Jodi Rowell, a Syracuse-based consultant for MatchPoint Franchise Consulting Network, says with more than 3,500 franchises nationwide, the search for the right one can be daunting.

What are some questions a potential franchise...

How Much Money Can You Make as a Franchisee?

When investigating a franchise opportunity one of the most difficult pieces of information to get from the franchisor is how much money you might make. This may be frustrating because...

So is there such thing as a franchise that won't cost anywhere from $10,000 to $500,000? Why are franchises so expensive? One of the most popular ways of starting your own business is by buying a franchise. Franchises will provide you...

An increase in first-time franchisees, many of which are laid-off workers who've received a golden handshake in the past year, is causing some experts to warn potential franchisees about exactly what they are getting into.

Franch... more



Buying a Franchise with Bad Credit
Posted by: Admin Post on April 3, 2010
Author: Kerry Miller

It's true that it's easier to get a bank loan to buy a franchise than it is to start your own business, but that doesn't mean it's easy—especially if you have less-than-perfect credit. But for potential franchisees who been turned...

Checking out Twitter the other day, I read that Taco Bell just launched its first franchise in India and that Gap has opened franchises in Australia – the 24th country where it is now franchising.

These were just a couple...

A Franchise Opportunity - What is This Exactly?

The best way to describe a franchise is to imagine it as a business that is delivered to you in a box at a certain cost and after approval. When you open the box, you will find mark...

Starting your own business from scratch can sometimes be overwhelming for first time entrepreneurs. Instead, investing in an already successful franchise concept may be a great choice for your new business venture.

The most affordable franchise is the one that allows you to franchise within the franchise. Entering into this type of franchising opportunity allows for maximum leverage. These type of franchise arrangements can have low investment cost...

Looking for the best franchises to buy? you are sure to have myriad questions running around in your mind begging for answers. To ease your mind and to give you control during the decision-making process, we’ve prepared a checklist...

WASHINGTON, March 29, 2010—A recent ruling by U.S. District Court of Massachusetts Judge William G. Young will severely impact the ability of franchise businesses to operate, create jobs and provide millions in economic output in...

Choosing the right site and negotiating the right lease for your franchise is a complex task, and one that can significantly influence the success -- or failure -- of your franchise. What kind of assistance can you expect from your...

So why should I be interested in franchising anyway?

The International Franchise Association (IFA) estimated that product and trade name franchising accounted for $554 billion in sales in 1992. This represents roughly 28% of all...

Fast food and restaurants is and will still be the fastest growing segment of the franchise industry.  While this may be so, your success is not guaranteed when you enter this race.  Because of the popularity of food franchises...

There are numerous elements that go to make up a successful franchise business. If you are looking at becoming a franchisee it is essential you are able to recognise these key attributes to ensure you buy into the right organisation.

For a franchised business to succeed, the franchise system must be inherently sound and managed by a knowledgeable franchisor. Additionally, a franchisee should possess an entrepreneurial spirit while being able to run his or her...

Obviously, you need to be very concerned about your financial ability to not only buy a franchise but also to continue to operate it until such a time as it begins to make a profit. Fortunately, careful due diligence will enable you to...

The Franchise business model that you might be looking at, right now: What is it about THIS one?

1. Is it the idea that you need to finally get out on your own, thinking that buying a franchise will enable you to make your own...

Everyone in the franchisor’s organization must understand the legal “do’s” and “don’ts” of franchise development.

Every successful franchise system has built its foundation with several...

Does it surprise you to know that the very best franchisors only “award” franchises, they don’t “sell” them? It’s true … now let’s look at why.

If you buy, let’s say, a...

Raising enough capital to start your own business can be an up-hill climb, especially given today’s cautious lending environment.

Opening a franchise might be the easiest way to do it as banks swing available credit in...

Are you looking into franchise opportunities but not sure which way to turn? Maybe you have only considered traditional franchises to date unaware that there are many low cost alternatives by way of online franchises. Here are some...

Many people dream about owning a small business. You may be one of those people who have had a “notion” for years that someday you would be president of a company, successful beyond your wildest dreams. Turning that dream...

The investment opportunities for business ownership that you find on the web today range from the instantly recognizable fast food and brake and muffler franchises to businesses which offer you the opportunity to place beverage vending...

In a sense, franchising is a business opportunity with the primary purpose of risk minimization. Every study ever done on the success rate of new (non-franchise) business startups concludes the same thing. Starting up a new business is...

Are you looking to find the best franchise? In this latest business opportunities article, you will discover some golden tips to finding the best franchise business opportunity!

There are many places to go to find opportunities...

Understanding a franchise agreement is instrumental when building a business relationship between a franchisor and a franchisee. It outlines as simply yet detailed as possible what roles both parts play in this relationship.

The collapse of Kleins and several other insolvencies of both small and large franchisors has thrown the issue of franchisor failure into a rarely illuminated spotlight. Franchisor failure is an unsavoury topic which participants in the...

"How did it all start?" Few people really know the exact answer. According to definition, the word "franchise" comes from old French, meaning privilege or freedom. Some say franchising began with an effort to collect taxes, as government...

There are four critical factors that combine to make a good franchise system:

1. The Organization 

Does the franchise organization have the ability to develop and maintain a franchise network?  It is one...

Since most franchises offer a cookie cutter plan for operating within their system, there may not seem to be much room for creativity. However, there are some ways to make the franchise your own while still adhering to the...

Before New York Broadway producers bring a production on the road, they’ll test it in a few smaller cities to see if the humor or pathos translates well to different audiences. After all, not every town sees life in the same way...

In terms of capital investment, your franchise fee will be determined by the profitability of the business. Most companies have a scale when it comes to franchise fees. They can have varying ranges, anywhere from $2,000 to $100,000+...

In these tough economic times, some experienced executives have been laid off, downsized or minimized, but still have plenty to offer. They might desire to look at franchises, which offer the opportunity to make a change, run a business...

Are you interested in starting a business? Franchise opportunities are popular, but why get into a franchise opportunity to start a business? In this article, we will look and find the benefits you need to know about.

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.

Buying a franchise is an option considered by corporate employees experiencing downsizing or unfavorable work conditions. Before you take the leap, your About.com Guide for Small Business Information has assembled the pros and cons of...

Now that you've got an idea of the industry you're interested in and the financial requirement you can commit to, try visiting a franchise trade show. They're a terrific way to gather a lot of preliminary information and survey the field...

If you are interested in earning some additional income then you may have been trying to find the best franchise opportunities. This article is written to help make that decision a much more informed one.

Think buying a franchise means you get the benefits of owning a business without the risk of business failure? Think again. Without proper due diligence, franchisees can find themselves stuck in bad business models, chained to...

Being a franchise consultant I am often asked what type of franchise business would I recommend buying in these current challenging economic times. Although their are a number of important factors to consider and careful research to be...

Today’s tough economy doesn’t have to put a damper on your dreams of buying a franchise opportunity. True, you do need to do your due diligence, and you may need to work harder to get the necessary financing. But in some ways...

Before signing on the dotted line be sure your due diligence is complete

When prospective franchisees search for franchise opportunities they have the advantage of accessing a wealth of information. This information can be found...

An important measurement of the health of any given Franchise company is the rate of growth of their system. Specifically, the franchise system should be growing at a rate that shows it is healthy and vital and is able to attract a...

When you start to take a closer look at franchise businesses, the variety of opportunities offering the prospect of financial security and the change to grow a prosperous business seem to be unlimited. As you look around, you'll find...

It sounds cliched, but leadership really does begin at the top. It's the attitudes and behavior of the CEOs, VPs, and other executives who set the tone for how well the franchise brand operates and grows. What's modeled at the top...

We know you've seen them, the shops that sell nothing but pretzels--salty pretzels, sweet pretzels, pretzels wrapped around hot dogs…

Or maybe you've puzzled over all the new day-care services for dogs, with names like...

Starting with a real basic: What is franchising?
Franchising is a way of distributing products or services. There are at least two levels of people involved in the franchise system. The franchisor, who lends his business system or...

The term franchising can be defined as:

-The authorization granted to an individual or group by a company to sell its products or services in a particular way.

-A revolutionary business concept that provides a low-cost...

An entrepreneur who starts a business from scratch is not trained or perfect and therefore is always at risk whereas purchasing a franchise is a different experience. It too involves a certain amount of risk but a franchisee can operate...

Susan, a bright, energetic and make believe person, has decided to become a business owner by buying a franchise. She understands that there are many steps to the process and asks me how long it will take before she will be able to open...

If you know you are ready for self employment but you are unsure of how to get there consider franchise ownership. Franchise ownership can make your dreams of self employment come true faster and safer than going it alone. Franchises...

A wise investor, whether he puts money in the stock market or real estate or even collectible figurines, always considers the return he can expect on his investment. This should also be true of franchise investments. Those investigating...

As many first-time business owners find out, there is a high failure rate for independent, non-franchise businesses. Franchising provides a proven system and the support of a much larger organization. If you are first-time business owner...

Starting a franchise can be a great way to start your own business. It is worth bearing in mind though that as with any type of new venture there are some advantages and disadvantages which you need to be aware of.

The green movement has brought about many changes in the way people live, conduct business and understand the world. A growing demographic is taking measures to evaluate their lifestyles and their impact on the planet, from the products...

After being unemployed for a year, Pauline Hamian ditched the résumé and bought herself a job. The former Burger King employee had no luck finding a job after being part of a corporate restructuring in 2008.

Franchise financing is an integral part of the Canadian entrepreneur's challenge of obtaining and building a success Canadian franchise. As most Canadian business owners quickly discover, franchisors do not provide direct or indirect...

In today’s challenging economy, many people feel that they have lost a sense of control over their careers. Widespread corporate layoffs and downsizings have made the job market a tenuous environment in which to build a solid...

This report gives a brief overview of the US pizza industry and outlines the costs and fees associated with a typical pizza franchise. The data contained in this report was drawn from the Franchise Disclosure Documents (FDD), formerly...

Franchise financing is an integral part of the Canadian entrepreneur's challenge of obtaining and building a success Canadian franchise. As most Canadian business owners quickly discover, franchisors do not provide direct or indirect...

Want start a franchise business but don’t know where to begin? This is a big decision for any entrepreneur and a lot of thought and planning must go into it. You need to consider several factors before you start a franchise business...

Research by the Franchise Advisory Centre indicates there are several key motivating factors for the decision to buy a franchise. While most of these factors will be present for different people’s decisions, the relative importance...

Before you buy your own franchise, there are two critical tests you have to pass:

1. Personal Inventory: Are You the Ideal Franchisee?

The most important test you must pass is a self-examination of your characteristics...

It’s too risky. I don’t have the capital. People might not buy my product. I don’t know the first thing about running a business. Yes, excuses proliferate. And with the economy the way it’s been for the last year, forget about it.

That’s why it’s nice to have help, and there’s probably no bigger source for startup help than a well-chosen franchisor.

Franchising is when someone uses another person's idea or business formula to start their own business.

The person selling the franchise namely the franchisor grants the independent operator namely the franchisee to copy and distribute its products and use its trademarks and name in return for a percentage or royalty payment of the gross monthly /yearly sales.

The idea of a microfranchise originated at Brigham Young University, Utah, in the USA. BYU’s Marriott School defines a microfranchise as small businesses that can easily be replicated by following proven marketing and operational concepts. The overall objective of MicroFranchising is to promote economic development by developing sound business models that can be replicated by entrepreneurs at the base of...

Just as every franchisee needs a qualified franchise attorney, it is also important that prospective and current franchisees have an accountant on their franchise team; that is, an accountant who specializes and has experience in franchising.

James Layton, CPA, CFE, and director of Systems Support & Development for top accounting firm Fiducial, says that most franchisees are...

Q: I'm currently looking at several opportunities. Some are franchises and some are business opportunities. Can you tell me the difference?

A: Telling the difference between a franchise and a business opportunity can get very confusing sometimes. But knowing the difference is important to understand before you sign on the dotted line.

Q: I am considering either buying a business or starting my own, so I'm in the process of researching different opportunities. A friend suggested I look into purchasing a franchise. What are the advantages and disadvantages of buying a franchise verses starting a stand-alone business? Wouldn't starting my own business give me more control?

The franchise business has been around a long time; in fact they go back as far as the 1850’s. The notion of selling off a business or a part of a business in order to expand into new areas usually came from the lack of investment funds from the business owner.

While the business of franchising has grown over the years it all had to start somewhere. The concept of franchise businesses started...

Here is a sample of frequently asked questions answered by the CFA. See the Canadian Franchise Association for the full list.

What is a franchise?
Franchising is a business relationship where a franchisor (a company or individual who owns the franchise system) grants a licence to a franchisee (a company or person who contracts to use the franchise system) the right to use the franchisor's trademark, brand, operating...

Personal Liability and Obligations of Franchisee and Family Members

What entities and/or individuals will be responsible for performance of various obligations under the contract? If the franchisee is a corporation, will a personal guarantee be required, and if so, what obligations are covered? If the franchisee will execute the contract as an individual, does he or she have the right to assign the franchise to a corporation that he or she owns?

Becoming a franchisee is a commitment that you will likely be making for the long run. Therefore you will want to be certain that you make the most logical choice that you possibly can. In order to do this, there are some questions that you should ask yourself while choosing the type of franchise that is best suited to you.

1. Summarize your credentials
If you haven’t already, compile...

Franchising is a huge and growing part of the nation's economy. More than 300,000 franchised small businesses operating in the United States account for an estimated $1 trillion worth of income each year and provide jobs for some eight million Americans. Franchising has also entered the Internet era.

The franchising phenomenon is not limited to the United States. In England, for example, franchising is one of the fastest growing sectors of the economy.

How to Choose the Right Financing Option to Meet Your Goals

If you've decided that franchise or business ownership is in your future but you don't have enough available cash, or liquid capital as it is often called, now is a great time to explore your financing options. Learn more about the various types of financing that are available to you. Once you've learned about the wide variety of financing programs that are available and decided which...

The term “Franchising” has always had a very specific meaning and referred to a defined business model. When doing a recent article on franchising in the service industry, I noticed that it was an excellent illustration of the metamorphosis of the traditional franchise model. That traditional model; initial fee, royalties and advertising fees, just isn’t the standard anymore. The model has become very flexible and...

Financial

1. Have you and your spouse and knowledgeable family members discussed the idea of buying a franchise?

2. Are you in complete agreement?

3. Do you have the financial resources required to buy a franchise? If not, where are you going to get the capital?

There are a number of reasons to go into business for yourself. Maybe you are intrigued by the challenge of the entrepreneurship or maybe you want to get rid of the mundane routine of working for someone else. Nevertheless, the key to run a money-spinning business depends on the choosing the business opportunity that is right for you! In today's competitive world a number of businesses venture fail, fortunately the business franchise offers great opportunities for everyone be it the beginners or be it the seasoned business men.

Franchising commands a staggering 43% of the nation’s total retail sales and service dollars. It is an employment engine on fire, and produces wealth right through economic decline. You don’t need an MBA to succeed, and everyone is in it together to win. Franchising is the profitable muscle machine that plows through challenge and persistently produces success. And, it consistently achieves record growth across the nation and around the world.

If you’re intrigued by companies that are emerging as leaders in fast-growing industries like the green movement then you’ll be interested in learning about innovative franchise opportunities that let you tap into some of the hottest industries. Earth-friendly franchises, for example, cater to the growing interest in protecting the environment and provide you with the opportunity to own an in-demand, eco-conscious business.

How do you find a franchise with great returns?

A wise investor, whether he puts money in the stock market or real estate or even collectible figurines, always considers the return he can expect on his investment. This should also be true of franchise investments. Those investigating franchise opportunities should look carefully at the company’s potential ROI.

The first year of business poses many challenges, even for the most experienced of entrepreneurs. In buying a franchise however, one would assume it would be easy, after all, you have bought a system with standards and procedures in place designed specifically for the franchisee to follow so it should be a breeze right? Wrong! Like any first year of business there are many challenges to overcome.

"You know it's on their list somewhere after Wyoming, Alaska ... Canada," says Larry Weinberg, a Toronto franchise lawyer who recently co-chaired the American Bar Association's Annual Forum on Franchising in Toronto.

A trend appears to be emerging among U.S.-based franchisors to target the Canadian market first for international expansion. A slow-to-recover U.S. economy, combined with Canada's relative strength during the recession, seems to be luring franchise operators to Canada.

It's easy for an executive to say he is franchise focused, as Nigel Travis, CEO of Dunkin' Brands, told QSRweb.com in a story posted Monday. How franchisees perceive that focus can be another matter.

But Travis is living up to that statement, at least from the point of view of franchisees represented by the Dunkin' Donuts Independent Franchise Owners organization.

If a person is looking to start their own company and they're not sure what they want to do or they don't have a lot of experience, they should look into buying a franchise. A franchise is when an existing company (the franchisor) sells the rights to distribute its products, techniques, and trademarks to another person for a percentage of the gross sales.

Wondering if you should buy a franchise? Here are 7 reasons that should prove to you why franchising is a good investment:

Quickest Way to Own a Business
Other business ventures take a lot of planning, preparation, and time until you can fully implement your operations. But with franchising, you can have your own business in just a couple of months. You won't even have to exert too much effort because everything is already laid out for you.

Legal Documents Required of Franchisors

There are two official documents that a franchisor may use to comply with the FTC Rule-- the FTC Disclosure Document (FTC Document) and the Uniform Franchise Offering Circular (UFOC). The FTC document does not meet the requirements of most state disclosure laws, whereas the UFOC is accepted (with minor differences) in all states with franchise disclosure laws.

Investing in your own business can be one of the most critical decisions one will ever make. The challenges are enormous physically and emotionally. Even finalizing a decision to own one's own business is daunting in itself. Many budding entrepreneurs cop out early into the decision making process.

10 Advantages of Buying a Franchise

1) A Springboard to Entrepreneurship

Buying a franchise allows you to become an entrepreneur in less time, limiting the multiple barriers first-time business owners would face. Essentially, you are buying a “business in a box” – a turnkey operation that has been designed, tested, and proven by a team of industry experts.

Have you ever dreamt of owning your own business? Of course you have, it is something that many people would love to be able to do but in most cases this dream is clouded by the “what if” question - “what if it fails?”. The fear of failing prevents so many would-be entrepreneurs from taking the plunge. But is this warranted? Well, it’s sad to say but yes, statistically it is warranted - Up to 50% of new businesses fail within the first 2 years of trading.

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.

Are you entirely happy with your job?
A poll of more than 2,800 employees in the UK carried out for online learning provider SkillSoft has found that two-thirds go to work wishing they were doing something else!

As well as this, 6 out of 10 of these people are checking job listings and recruitment websites while at work, with half of them having their details registered with a recruitment agency, headhunter or online job service.

You should always know what you are getting into and this is a big must especially if you are thinking of signing that franchise agreement.  A mistake here or lack of foresight on your part would definitely cost you more than your last divorce.  So before you tie that knot, read between the fine lines and make sure to understand and adhere to everything written on the contract.

Even after one has made the initial decision to buy into a franchise opportunity, there is an endless checklist of things to consider before choosing ‘the right one.´

Recognized franchise expert and President of Finance and Development of Wireless Toyz; one of the country´s fastest growing companies; Richard Simtob recommends a cold, hard look at every one of his top 10 franchise selection criteria before making the leap.

Although the 2010 outlook calls for little industry growth, franchising remains popular. Experts say, however, that numerous factors must be considered in picking the right franchise to buy.

Bob Purvin, chairman and CEO of the American Association of Franchisees and Dealers in San Diego, says franchising can be a lucrative investment for those who do their homework.

CHICAGO (AdAge.com) -- Take your average seven-figure CEO and add a load of the company's dirty laundry. Put him in a funny suit while he meets some of his best frontline workers -- and screws up their jobs. At the end, he can give them raises, and address problems exposed along the way.

It's a classic redemption story -- the kind American TV viewers love -- and the premise for CBS's surprise hit "Undercover Boss," which scored 38 million viewers after the Super Bowl.

For an in-depth description of the word "franchising", a quick visit to 'The Wiki', is an order. But to many, when the idea pops into the head, there is a common thread: McDonald's! Yes, McDonald's is among the world's largest and most popular of franchises, with a daily customer base of around 47 million in over 31,000 stores. So how does one with enough capital and ambition get a piece of the action? Create and market their own version of the Egg McMuffin... uh, no!

CHICAGO (Reuters.com) - If you've ever envisioned yourself slinging hash or pouring coffee in your own restaurant, your dream just got a lot cheaper.

With revenues flowing more like molasses than water, franchisors are slashing fees in an attempt to entice would-be entrepreneurs to ditch their cubicles and strike out on their own.

With a new year approaching, now is an ideal time to reevaluate your future goals and aspirations. If the economic climate has put you in a holding pattern and you’re determined to make 2010 the year that you turn your hopes and dreams into action, then consider becoming your own boss. Franchise ownership enables you to get into business in a relatively brief period of time with an established concept that features a well-known brand and a proven business system.

If you have set your heart on that particular brand or product, then consider obtaining that business franchise. Though focus and determination is the key factors to the start up or expansion of any successful business plan, it is important to analyze the factors and the workings before taking the plunge.

If you were trying an aerial trapeze stunt for the first time, would you do it without a net and safety harness?  Probably not because chances are very good that you would fall. The same holds true for business ownership. If you’ve never been your own boss, doing it alone could be difficult, scary, and full of the unknown.

Going into the franchise business might be a very good idea for you as it is one of the popular methods of doing business today but when you do a search of the available franchise opportunities, choosing one among the hundreds might be a daunting task.

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.

Have you always wanted to start your own business but you didn't think you had the money? It is true, starting a business can involve a large capital investment; however, there are other ways to go into business without spending everything you have. There are a number of cheap franchises that require little money to start, and some will even provide financing with a down payment. There are several industries that are ideally suited for cheap franchises.

Franchising research is a dangerous business for potential Franchisees. The Franchisor can hold all the cards, unless you see the relationship for what it is!

Here are 4 tips that new Franchisees should follow when talking to possible franchise owners. Ignore these at your peril, but take them into account and you and the Franchisor can have discussions with the deck not stacked against you.

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.

Demand

Is there a demand for the franchisor's products or services in your community? Is the demand seasonal?

Industry Breakdown

So why should I be interested in franchising anyway?

The International Franchise Association (IFA) estimated that product and trade name franchising accounted for $554 billion in sales in 1992. This represents roughly 28% of all retail sales.

People decide to buy a franchise for several reasons. Franchises offer an established brand name and relatively easy access into a specific industry. Many companies that sell franchises will also help the owner along the way by providing franchise related training, money, or clients. This gives the franchise owner an obvious advantage over the average small business owner who must work by themselves to establish their business, name, brand, and product.

Jobs are still scarce, so the unemployed are reinventing themselves and becoming the majority of new franchise owners, industry sources say. The troubles in commercial real estate are making it easier by driving some landlords to negotiate — sometimes offering several months' free rent or paying for remodeling.

Living With Chains
For entrepreneurs looking to buy a franchise, here's one thing to prepare for: culture shock.

There are entrepreneurs. And there are franchisees. And they aren't necessarily the same thing.

In a sputtering economy and without any experience running a retail operation, Chris Parker is excited about prospects as he plans to open two more Sport Clips hair salons over the next two years.

His first Sport Clips franchise on the near North Side is making an operating profit after opening just more than a year ago and he anticipates double-digit growth this year, Parker said.

When considering the purchase of a franchise, it is important for prospective franchisees to understand the Franchise Disclosure Document (FDD) provided by the franchisor. The disclosure document provides all relevant information about the company including a history and overview of employees, as well as the franchise agreement which outlines...

You want to own a franchise, but you don’t know which ones are available and which one would be right for you.  The big question is: how do you ?

There are many places that advertise franchises for sale: