Franchise companies look for a lot of different things when evaluating their candidates. Of course you need to be financially qualified and most people think that because they have the money, they qualify for the franchise. This isn't always true.
I would love to tell you that you could put anyone into any franchise system and they would succeed. However that isn't always the case or the franchise would have a 100% success rate and no franchise location would ever close or fail.
The main things franchise companies are looking for is:
1. Willingness to follow a proven system. A true Entrepreur will probably never buy a franchise, they don't want to follow a system, they want to create the system. The franchise companies aren't looking for someone to come in and reinvent the wheel, they want someone to follow their proven system. Now they don't want a robot of course, and you can think for yourself, but don't buy a franchise if you want to invent a better mouse trap because you are wasting your money.
2. People Skills. Franchises survive based on their people, as a matter of fact so do non franchises businesses, so this isn't unique to franchising, people skills are a key trait. If you don't get along well with your employees, customers & vendors you probably won't do well in your business. Customers & employees are the least forgiving, vendors want your money so they will put up with your bad manners but only for so long. Customers & Employees will let you know right away either by not buying or quiting. So being able to talk to people, provide guidance, training, support & helpful advice is the key to owning a franchise and having the right people skills.
The 2 above items are key when presenting yourself to the franchises you are interested in, remember, they receive 100's of inquiries about their Franchise and only award so many per year.
For more information on Franchises you can visit our main Website: Here or visit www.OpenAFranchise.com
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Friday, September 26, 2008
Wednesday, September 24, 2008
What is an FDD or Franchise Disclosure Document?
An FDD is a Franchise Disclosure Document. These documents are required by the Federal Government. The documents are in a standard format that is provided by the FTC.
The FDD documents are basically the information that the Franchise Company is required to provide to you before you are allowed to buy the franchise. They are required to "Disclose" certain information such as:
Corporate Officer information
Legal proceedings
Up front fees
Estimated investment totals
etc...
So in essence they are required to give you information so you can make an informed decision.
There is also a Disclosure Period that is a standard 14 days. This waiting period or cooling off period is used to make sure you know what you are getting yourself into before buying a Franchise.
Do your due diligence, read the documents and talk to existing franchise owners in the system you are interested in.
For more free information on Franchises, you can visit our main site: Open A Franchise
Here are a few industry sites:
FTC.gov
nassa.org
The FDD documents are basically the information that the Franchise Company is required to provide to you before you are allowed to buy the franchise. They are required to "Disclose" certain information such as:
Corporate Officer information
Legal proceedings
Up front fees
Estimated investment totals
etc...
So in essence they are required to give you information so you can make an informed decision.
There is also a Disclosure Period that is a standard 14 days. This waiting period or cooling off period is used to make sure you know what you are getting yourself into before buying a Franchise.
Do your due diligence, read the documents and talk to existing franchise owners in the system you are interested in.
For more free information on Franchises, you can visit our main site: Open A Franchise
Here are a few industry sites:
FTC.gov
nassa.org
Tuesday, September 23, 2008
Open A Franchise. Is it right for you? What should you know?
Buying a Franchise
Buying your own franchise is one way to break into the entrepreneurial ranks and become your own boss. Buying a franchise can be more expensive than starting a business "from scratch" but the success rate of franchises is generally higher than for startups as you are investing in a product with a proven track record and the franchisor generally provides training, marketing, support and other services to the franchisee.
Costs
Purchasing a franchise is not the cheapest way to start a new business. If you are interested in purchasing a franchise, it's vital you understand the upfront costs and recurring fees. The disclosure document tells you the costs involved to start one of the company's franchises. It will describe any initial deposit or franchise fee, which may be non-refundable, and costs for initial inventory, signs, equipment, leases, or rentals. Compare the estimated costs of your prospective franchise with those of the competition to see if you can get a better deal with another franchise chain.
Training
One of the advantages of buying a franchise is that the franchisor provides intensive training on how to run the business and offers some kind of ongoing support. A good training will give you thorough knowledge of all aspects of the business without having had years of experience in the field. The amount of training you need from the franchisor will depend on your present business knowledge and experience, and on the operating standards you must keep. If the training costs are part of the franchise fee in most cases, the franchisee will be responsible for his/her travel expenses while in training. If you have doubts that the training might be insufficient to handle day-to-day business operations, consider another franchise opportunity more suited to your background.
Advertising
You can benefit from the franchisor's activities in such areas as advertising, marketing, research and development and you can take advantage of their enhanced buying power. You often must contribute a percentage of your income to an advertising fund even if you disagree with how these funds are used. The local advertising and publicity program in support of your franchise should be an extension of the national program.
Support
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. One of the advantages of buying a franchise is that the franchisor provides intensive training on how to run the business and offers some kind of ongoing support. If franchisors have little experience in managing a chain of franchises, their promises of guidance, training, and other support may be unreliable.
Is it right for you?
Buying a franchise can be a great way to gain financial independence and secure your financial future, but it is not as easy as it appears. While buying a franchise may reduce your investment risk by enabling you to associate with an established company, it can be costly. The benefit of buying a franchise is that much of the work has been done for you. In many ways, buying a franchise validates the fact that there is no free lunch, there are no shortcuts to success, and hard work and serious effort are required, no matter what the franchise opportunity. If the idea of a buying a franchise still makes sense, do your homework on the company and its concept.
You can find more free information on franchising here: http://www.OpenAFranchise.com
.
Buying your own franchise is one way to break into the entrepreneurial ranks and become your own boss. Buying a franchise can be more expensive than starting a business "from scratch" but the success rate of franchises is generally higher than for startups as you are investing in a product with a proven track record and the franchisor generally provides training, marketing, support and other services to the franchisee.
Costs
Purchasing a franchise is not the cheapest way to start a new business. If you are interested in purchasing a franchise, it's vital you understand the upfront costs and recurring fees. The disclosure document tells you the costs involved to start one of the company's franchises. It will describe any initial deposit or franchise fee, which may be non-refundable, and costs for initial inventory, signs, equipment, leases, or rentals. Compare the estimated costs of your prospective franchise with those of the competition to see if you can get a better deal with another franchise chain.
Training
One of the advantages of buying a franchise is that the franchisor provides intensive training on how to run the business and offers some kind of ongoing support. A good training will give you thorough knowledge of all aspects of the business without having had years of experience in the field. The amount of training you need from the franchisor will depend on your present business knowledge and experience, and on the operating standards you must keep. If the training costs are part of the franchise fee in most cases, the franchisee will be responsible for his/her travel expenses while in training. If you have doubts that the training might be insufficient to handle day-to-day business operations, consider another franchise opportunity more suited to your background.
Advertising
You can benefit from the franchisor's activities in such areas as advertising, marketing, research and development and you can take advantage of their enhanced buying power. You often must contribute a percentage of your income to an advertising fund even if you disagree with how these funds are used. The local advertising and publicity program in support of your franchise should be an extension of the national program.
Support
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. One of the advantages of buying a franchise is that the franchisor provides intensive training on how to run the business and offers some kind of ongoing support. If franchisors have little experience in managing a chain of franchises, their promises of guidance, training, and other support may be unreliable.
Is it right for you?
Buying a franchise can be a great way to gain financial independence and secure your financial future, but it is not as easy as it appears. While buying a franchise may reduce your investment risk by enabling you to associate with an established company, it can be costly. The benefit of buying a franchise is that much of the work has been done for you. In many ways, buying a franchise validates the fact that there is no free lunch, there are no shortcuts to success, and hard work and serious effort are required, no matter what the franchise opportunity. If the idea of a buying a franchise still makes sense, do your homework on the company and its concept.
You can find more free information on franchising here: http://www.OpenAFranchise.com
.
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