FranchiseProBootCamp.com announces an upcoming Franchise Boot Camp for Franchisors & Franchise Executives.
If you sell Franchises for a living, you may want to attend this online Boot Camp Training Session.
Visit: http://FranchiseProBootCamp.com
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Wednesday, April 29, 2009
Recession Proof Franchises
It's no secret that people are losing their jobs-it's an epidemic. These talented people are simply victims of our current economic circumstances. Jobseekers won't find many attractive employment options in the market today, and this may be the situation for quite some time.
As an alternative, many people are looking into buying their own franchise. In tough times like these, it's essential to focus on franchises that produce good results in bad market conditions. Though no business is truly and absolutely recession-proof, a number of industries seem to thrive--and you should focus your research efforts on them. Here are some helpful examples of industries to look into:
People will buy, whether times are good or bad. What do people consider a necessity rather than a luxury? Businesses that provide necessities will thrive during a recession. One example: haircuts. Regardless of the economy, hair grows and has to be clipped. Another example is tax preparation: Everyone needs to file a tax return each year, and many people find the process too complicated to do themselves. Last is child care; Quality providers in this space always seem to be operating at near-capacity.
Low-cost businesses. Consumers tend to downgrade their spending patterns during a recession. This dynamic benefits fast-food companies such as McDonald's, at the expense of more upscale and expensive restaurants. Decreased spending patterns also benefit companies that sell used items (such as clothes, games, sports equipment, CDs, etc.), as an alternative to buying new items from a full-priced retailer.
Businesses paid for by third parties. When a pipe bursts and floods your basement, it has to be fixed immediately by a professional. This dynamic also applies to automotive repair shops: Cars get damaged in accidents in every type of economic climate, and they need to be fixed. In both cases, repair costs are covered by insurance so franchises offering such services tend to be more immune to recessionary times.
Products or services with a rapidly growing demand. Follow a demographic or sociological trend that supports strongly increasing demand, and the business will do very well even in tough times. A great example of this in today's market is the senior care industry. Baby boomers are getting older, and a host of senior-care franchises are growing rapidly and doing very well. Outplacement agencies, offering services designed to assist the unemployed are also expanding from growing demand.
Services that offer a chance to "escape" from the everyday grind. These businesses typically offer entertainment options to their customers, in the form of movies, games, treats, gifts or other indulgences. Beware, though: Decreased consumer spending habits can easily harm this category of business. So it's important to study past and present industry fluctuations before making an investment decision.
Children and pet services. The interesting thing about these services is that they violate some of the factors listed above. Good times or bad, people will spend large amounts of money providing for their kids or pets. These expenditures can be items that many would consider luxuries, breaking the cycle of leaning toward low-cost providers. Child-related franchises include supplemental education opportunities, featuring core learning as well as enrichment classes for art, music and sports. In the pet sector, groomers and sellers of boutique accessories will flourish, even during economic recessions.
It's pretty easy to distinguish unsuccessful businesses and franchises from successful ones in tough times, because the answer is often intuitively obvious. You hear about and see their failures on TV and in the newspaper. Stay away from them. You may find it helpful to consider a consultant from a company like FranChoice to steer you in the right direction. These seasoned professionals in the franchise market have a good grasp on which industries and companies are faring the best. They cannot make the decisions for you, but their services are free and often save you time by helping you narrow your search.
Regardless of how you research potential franchises, it's still essential for you to complete a thorough process of due diligence. The process of buying a franchise needs to include calling existing franchisees to verify or disprove the information you're receiving before making a final decision on any one franchise opportunity. Take all the time you need to ensure that you find a franchise that thrives during tough times, and you'll be one of the few who are happy with the economy in the upcoming recovery period.
For more information on Recession Resistant Franchises visit this page: http://OpenAFranchise.com
.
As an alternative, many people are looking into buying their own franchise. In tough times like these, it's essential to focus on franchises that produce good results in bad market conditions. Though no business is truly and absolutely recession-proof, a number of industries seem to thrive--and you should focus your research efforts on them. Here are some helpful examples of industries to look into:
People will buy, whether times are good or bad. What do people consider a necessity rather than a luxury? Businesses that provide necessities will thrive during a recession. One example: haircuts. Regardless of the economy, hair grows and has to be clipped. Another example is tax preparation: Everyone needs to file a tax return each year, and many people find the process too complicated to do themselves. Last is child care; Quality providers in this space always seem to be operating at near-capacity.
Low-cost businesses. Consumers tend to downgrade their spending patterns during a recession. This dynamic benefits fast-food companies such as McDonald's, at the expense of more upscale and expensive restaurants. Decreased spending patterns also benefit companies that sell used items (such as clothes, games, sports equipment, CDs, etc.), as an alternative to buying new items from a full-priced retailer.
Businesses paid for by third parties. When a pipe bursts and floods your basement, it has to be fixed immediately by a professional. This dynamic also applies to automotive repair shops: Cars get damaged in accidents in every type of economic climate, and they need to be fixed. In both cases, repair costs are covered by insurance so franchises offering such services tend to be more immune to recessionary times.
Products or services with a rapidly growing demand. Follow a demographic or sociological trend that supports strongly increasing demand, and the business will do very well even in tough times. A great example of this in today's market is the senior care industry. Baby boomers are getting older, and a host of senior-care franchises are growing rapidly and doing very well. Outplacement agencies, offering services designed to assist the unemployed are also expanding from growing demand.
Services that offer a chance to "escape" from the everyday grind. These businesses typically offer entertainment options to their customers, in the form of movies, games, treats, gifts or other indulgences. Beware, though: Decreased consumer spending habits can easily harm this category of business. So it's important to study past and present industry fluctuations before making an investment decision.
Children and pet services. The interesting thing about these services is that they violate some of the factors listed above. Good times or bad, people will spend large amounts of money providing for their kids or pets. These expenditures can be items that many would consider luxuries, breaking the cycle of leaning toward low-cost providers. Child-related franchises include supplemental education opportunities, featuring core learning as well as enrichment classes for art, music and sports. In the pet sector, groomers and sellers of boutique accessories will flourish, even during economic recessions.
It's pretty easy to distinguish unsuccessful businesses and franchises from successful ones in tough times, because the answer is often intuitively obvious. You hear about and see their failures on TV and in the newspaper. Stay away from them. You may find it helpful to consider a consultant from a company like FranChoice to steer you in the right direction. These seasoned professionals in the franchise market have a good grasp on which industries and companies are faring the best. They cannot make the decisions for you, but their services are free and often save you time by helping you narrow your search.
Regardless of how you research potential franchises, it's still essential for you to complete a thorough process of due diligence. The process of buying a franchise needs to include calling existing franchisees to verify or disprove the information you're receiving before making a final decision on any one franchise opportunity. Take all the time you need to ensure that you find a franchise that thrives during tough times, and you'll be one of the few who are happy with the economy in the upcoming recovery period.
For more information on Recession Resistant Franchises visit this page: http://OpenAFranchise.com
.
Tuesday, April 28, 2009
Franchise Financing
Over the past few months financial service companies have really been under fire. I have also been getting a lot of questions from my clients in reference to how hard it is to get financing for a franchise now that the market is all skewed around.
The main thing to keep in mind when securing financing for your Franchise is that the banks don't just look at you, your credit score is important of course and the higher the better, but they also look at the success rate of the Franchise company. The Franchise Company's success rate is one of the most important things the banks look at, they always have, this isn't something new, but it is still important.
It will be much easier to get a loan for a franchise that has a success rate of 97% and has been in business for 45 years and has 900 locations than it would be to get a loan for a franchise that has a 65% success rate and has been in business for 7 years and has 100 locations. See what I mean? Your credit doesn't play into that at all.
Where your credit will affect you the most is in the interest % numbers and in your required cash injection, this is the amount of actual cash you need to invest in your business to qualify for the loan itself.
So the bottom line is, there are still banks financing franchises, because the success rate isn't as affected as you may think, it is of course to a smaller extent than let's say the real estate industry.
For more information on Franchises visit this site: http://OpenAFranchise.com
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The main thing to keep in mind when securing financing for your Franchise is that the banks don't just look at you, your credit score is important of course and the higher the better, but they also look at the success rate of the Franchise company. The Franchise Company's success rate is one of the most important things the banks look at, they always have, this isn't something new, but it is still important.
It will be much easier to get a loan for a franchise that has a success rate of 97% and has been in business for 45 years and has 900 locations than it would be to get a loan for a franchise that has a 65% success rate and has been in business for 7 years and has 100 locations. See what I mean? Your credit doesn't play into that at all.
Where your credit will affect you the most is in the interest % numbers and in your required cash injection, this is the amount of actual cash you need to invest in your business to qualify for the loan itself.
So the bottom line is, there are still banks financing franchises, because the success rate isn't as affected as you may think, it is of course to a smaller extent than let's say the real estate industry.
For more information on Franchises visit this site: http://OpenAFranchise.com
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Friday, April 24, 2009
Start A Franchise instead of finding a Job?
Taso Louloudis knew the construction industry he and his wife Kim worked in was suffering, but neither expected they’d both lose their jobs in the same year.
Kim was laid off from her job at Engineered Homes in Orlando in May, and Taso lost his job as construction manager for Rey Homes on Nov. 7, his birthday.
“I’ve been doing construction my entire life, working my way up from subcontractor to a point where I was the boss that did hiring and firing,” Taso said.
Story continues below ↓advertisement | your ad here
At age 50, with only a high school diploma, he realized his career choices were limited.
So Louloudis and his wife turned to franchising.
More and more laid off workers are considering franchising as an alternative to working for someone else, according to experts in the industry.
Some see franchising as an easy way to entrepreneurship and economic independence. But becoming a successful franchisee takes a lot of hard work and money. It could take years before you’re able to replace your income.
Because the Louloudises love pets — they have four dogs and five cats at home, many of whom are rescue animals — they embarked on finding a pet-related business.
They considered a host of options, including doggie daycare and pet sitting, but decided against starting their own company from the ground up due to the intense competition for such services in their area.
They now own a Fetch! Pet Care, a franchise that offers in-home pet sitting services.
The Louloudises bought the franchise for $13,000, plus the cost of a flight to Fetch’s headquarters in Walnut Creek, Calif., for training. They expect to bring in sales of about $50,000 by the end of this year.
For more information on Franchises visit: http://www.OpenAFranchise.com
Should you open a franchise?
If you really have the heart of an entrepreneur, franchising is probably not for you. First off, it’s not your business idea that you nurture and grow. You’ll have to follow a strict playbook of operating the franchise.
That said, franchising might be something out-of-work individuals with money to risk and a desire to run their own business may want to consider. But it requires a lot of research and intense due diligence before signing on the franchisee line.
One big challenge is getting the money to pay for the upfront fees franchise companies typically need, between $15,000 and $60,000 for most franchises.
In addition, an increasing number of individuals are tapping into their retirement funds, many of which have been battered by the sinking stock market, to foot the bill.
In some cases, people are choosing to roll over their 401(k) and IRA plans from their former employers into a new franchise and then use those funds for operations.
For more information on Franchises visit: http://www.OpenAFranchise.com
Kim was laid off from her job at Engineered Homes in Orlando in May, and Taso lost his job as construction manager for Rey Homes on Nov. 7, his birthday.
“I’ve been doing construction my entire life, working my way up from subcontractor to a point where I was the boss that did hiring and firing,” Taso said.
Story continues below ↓advertisement | your ad here
At age 50, with only a high school diploma, he realized his career choices were limited.
So Louloudis and his wife turned to franchising.
More and more laid off workers are considering franchising as an alternative to working for someone else, according to experts in the industry.
Some see franchising as an easy way to entrepreneurship and economic independence. But becoming a successful franchisee takes a lot of hard work and money. It could take years before you’re able to replace your income.
Because the Louloudises love pets — they have four dogs and five cats at home, many of whom are rescue animals — they embarked on finding a pet-related business.
They considered a host of options, including doggie daycare and pet sitting, but decided against starting their own company from the ground up due to the intense competition for such services in their area.
They now own a Fetch! Pet Care, a franchise that offers in-home pet sitting services.
The Louloudises bought the franchise for $13,000, plus the cost of a flight to Fetch’s headquarters in Walnut Creek, Calif., for training. They expect to bring in sales of about $50,000 by the end of this year.
For more information on Franchises visit: http://www.OpenAFranchise.com
Should you open a franchise?
If you really have the heart of an entrepreneur, franchising is probably not for you. First off, it’s not your business idea that you nurture and grow. You’ll have to follow a strict playbook of operating the franchise.
That said, franchising might be something out-of-work individuals with money to risk and a desire to run their own business may want to consider. But it requires a lot of research and intense due diligence before signing on the franchisee line.
One big challenge is getting the money to pay for the upfront fees franchise companies typically need, between $15,000 and $60,000 for most franchises.
In addition, an increasing number of individuals are tapping into their retirement funds, many of which have been battered by the sinking stock market, to foot the bill.
In some cases, people are choosing to roll over their 401(k) and IRA plans from their former employers into a new franchise and then use those funds for operations.
For more information on Franchises visit: http://www.OpenAFranchise.com
The International Franchise Association launches new grassroots program to ensure their voice is heard
By SHERYL JEAN
The national franchise industry has stepped up it advocacy and public policy efforts to make sure its voice is heard on key legislative and regulatory issues.
Full story: http://openafranchise.com/blog/?p=80
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The national franchise industry has stepped up it advocacy and public policy efforts to make sure its voice is heard on key legislative and regulatory issues.
Full story: http://openafranchise.com/blog/?p=80
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Thursday, April 23, 2009
Franchise Profit, How much can I make?
There are always 2 questions you need to get answered before buying a Franchise.
1. How much does it cost?
2. How much can I make?
The first one is easy to get answered, the Franchise Disclosure Documents will show this information and you can usually get that by completing a Franchise Application.
The 2nd one is a bit harder to get answered. On average only about 25% of the Franchises out there make an Earnings Claim in their FDD. Since Franchising is regulated by the FTC, this means the Franchisor can only discuss the numbers that are posted in their FDD.
Even then you have to be careful because the requirements are very vague when they do report an earnings claim, for example they may only report the top 30% of their stores. So this very well could be a skewed number.
Otherwise, the way you get this information is by talking to existing Franchise owners. They can tell you how much they are making. Now this does not mean you will make that much, it just tells you how much they are making.
Part of the Due Diligence process that we recommend at United Franchise Connection is to talk to at least 10 existing Franchise owners before making a decision. We also recommend calling until you find one that isn't happy and compare the attitude and answers from that person with some of the ones that are doing well. You will be surprised. Almost every time I talk to a Franchise owner that isn't doing well, I can immediately feel they have a poor attitude, but that is a different article!
Anyway, Due Diligence is the key.
For more information on Franchising, visit our site.
.
1. How much does it cost?
2. How much can I make?
The first one is easy to get answered, the Franchise Disclosure Documents will show this information and you can usually get that by completing a Franchise Application.
The 2nd one is a bit harder to get answered. On average only about 25% of the Franchises out there make an Earnings Claim in their FDD. Since Franchising is regulated by the FTC, this means the Franchisor can only discuss the numbers that are posted in their FDD.
Even then you have to be careful because the requirements are very vague when they do report an earnings claim, for example they may only report the top 30% of their stores. So this very well could be a skewed number.
Otherwise, the way you get this information is by talking to existing Franchise owners. They can tell you how much they are making. Now this does not mean you will make that much, it just tells you how much they are making.
Part of the Due Diligence process that we recommend at United Franchise Connection is to talk to at least 10 existing Franchise owners before making a decision. We also recommend calling until you find one that isn't happy and compare the attitude and answers from that person with some of the ones that are doing well. You will be surprised. Almost every time I talk to a Franchise owner that isn't doing well, I can immediately feel they have a poor attitude, but that is a different article!
Anyway, Due Diligence is the key.
For more information on Franchising, visit our site.
.
Wednesday, April 22, 2009
Credit Repair Business - Why money won’t buy you a good credit score.
Why money won’t buy you a good credit score.
Most people assume that if you make a lot of money, you’ll automatically have great credit scores. This is a common misconception about credit scores and it’s easy to understand why one would think income would be a factor. It sounds reasonable …and makes perfect sense, so why wouldn’t we assume that income plays a part in our credit scores? The fact is, income is not a factor in determining your credit scores.
In all actuality, it’s impossible to use income in the credit scoring calculation. This is because the information used to determine your credit scores is derived solely from the information contained in your credit reports. It’s also important to understand that just because it can go into your score doesn’t mean that it actually does go into them. The information must be predictive, legal, and it must be readily available on your credit reports. Let’s take a quick look at exactly what makes up your credit reports. All credit reports can be divided into the following sections:
Personal Identifying Information – this section includes your name, address, social security number and date of birth. It can also include employment information, previous addresses and other known aliases. This information is reported by your creditors and comes directly from the applications that you submitted when you applied for credit with them.
Account Information – this section includes all of your credit accounts – which are also commonly referred to as trade lines. This is the bulk of the information that makes up your credit report and contains the type of account, the date the account was opened, the credit limit on your revolving accounts or the loan amount on installment accounts, the balance and your payment history – all of which are used in determining your credit score.
Public Records – this section includes bankruptcies, judgments and liens. There are many other types of public records but these are the only ones that are reported in your credit report and therefore, are the only ones that are used in the credit score calculation. A word of advice: public records can never be good – they are always bad so you should avoid them at all costs.
Collections – this section includes collection accounts that are reported by collection agencies. As with public records, collections are never good and they are most certainly used in the credit scoring calculation.
Inquiries – this is a listing of anyone that has accessed your credit report and on what date. Inquiries remain in your credit report for two years and occur whenever you apply for credit. These hard inquiries are included in the credit scoring calculation but only those that have occurred in the last 12 months. You may also see promotional or soft inquiries, which occur whenever a lender orders your report in order to make a pre-approved offer of credit in the mail. These types of inquiries are not counted in the credit score calculation.
Now that we know what’s included in your credit reports, let’s go over what’s NOT included. Your race, your salary and your level of education – all of these things are not included in your credit reports. As such, none of these things can be used in the credit scoring calculation.
Some people would argue that your salary, race, and level of education have an indirect impact on your credit scores because they play a part in how you establish and manage credit. This is probably true, but the fact remains the same. Race, salary, and level of education are not on your credit reports and therefore do not have any overt impact on your credit scores.
The bottom line is that your credit score only looks at information that is contained in your credit reports. And guess what? Your income is NOT included in your credit reports. You could be the world’s richest person but if you don’t manage your credit wisely, you could also have one of the world’s lowest credit scores.
Click to learn more about Credit Repair and starting your own Credit Repair Company.
Recession Resistant Franchises
Working with over 300 Franchises I get to see many different types. Talk to many different franchise owners and franchisors.
From my perspective the Franchises that are doing well right now are franchises like:
Credit Repair Business
USA Mobile Drug Testing
SuperCoups
Comfort Keepers
& other similar Franchises. I think these Franchises all fit well within their niche market and a lot is to be said about their management teams, offerings, training & support.
So if you are looking for a recession resistant Franchise you might want to look at one of the above.
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From my perspective the Franchises that are doing well right now are franchises like:
Credit Repair Business
USA Mobile Drug Testing
SuperCoups
Comfort Keepers
& other similar Franchises. I think these Franchises all fit well within their niche market and a lot is to be said about their management teams, offerings, training & support.
So if you are looking for a recession resistant Franchise you might want to look at one of the above.
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Tuesday, April 21, 2009
Credit Repair Franchise Business, Credit Restoration Business
Credit Repair Franchise Business, Credit Restoration Business
http://www.CreditRestorationBusiness.com
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http://www.CreditRestorationBusiness.com
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Monday, April 20, 2009
Sunday, April 19, 2009
Announcing eFranchiseNews.com
Are you involved in Franchising? Franchisor? Franchisee? Broker?
Submit your news, articles & stories for free here:
www.eFranchiseNews.com
Must truly be newsworthy articles, news or stories. No advertising permitted.
.
Submit your news, articles & stories for free here:
www.eFranchiseNews.com
Must truly be newsworthy articles, news or stories. No advertising permitted.
.
Opening A Franchise Tips & Facts
Open a Franchise
Want to reduce your risk? When opening a Franchise, you reduce your risk if you pick the right one. Make sure to do your research when choosing the right Franchise for you and your family.
What is a Franchise?
By definition, a franchise is a legal and commercial relationship between a franchise owner and a franchise operator. The owner owns the trademark, trade name or advertising symbol. The franchisee pays the franchise company to use that identification to open and run a business. There is a "System" that is usually followed that helps eliminate the startup headaches you hear about when someone tries to open a business without a plan.
Should I Open A Franchise?
The hardest part of opening a Franchise is figuring out whether or not it is right for you. Owning a Franchise is hard work. You are responsible not only for your own well being, but also for the well being of the employees that will work for you in your Franchise business.
Check Out the Competition
Before deciding on whether or not to buy a Franchise, check out the competition. Some Franchise companies target areas that have higher competition, because they know the business is there, others shy away and try to target another segment of the market. Either way, make sure you know who your competition is in the market.
Do Your Homework
Do your Due Diligence. Make sure you talk to no less than 20 existing Franchise owners in whatever Franchise you are interested in. Don't assume that just because a Franchise has been in business for years and years that they are 100% successful, most Franchise do run on a very high success rate, but few are perfect. Ask the tough questions and ask them to the people that own a Franchise. Don't just assume that what you read is what you get.
How much can I make? & How much does it cost?
Everyone always wants to know 2 things when they start researching Franchises. How much does it cost? & How much can I make? These 2 things can be easily answered in just a few phone calls. How much does it cost can be researched through the home office of the Franchise and through the UFOC/UFDD documents. How much can I make? Is the tougher of the 2 questions to get an answer for, usually most Franchise companies don't post this information in their disclosure documents, which in turn means they can't discuss it with you, however, in most cases you can call existing Franchise owners and ask them how much they are making, now don't assume this is how much you can make, use it as a guide to where you may or may not end up. Ultimately how much you can make is usually dependent on many many factors including, location, employees, advertising & most importantly: YOU!!!
Have Fun!
As you go through the process in researching different Franchises, make sure you find one that you can have fun with, remember this: Every day you are going to have to run your business, so make sure it is something you can enjoy.
Opening a Franchise can be a rewarding venture in many different ways. You can spend more time with your family, earn more money, have a more secure position etc... So enjoy yourself!!!
More articles on Opening A Franchise
.
Want to reduce your risk? When opening a Franchise, you reduce your risk if you pick the right one. Make sure to do your research when choosing the right Franchise for you and your family.
What is a Franchise?
By definition, a franchise is a legal and commercial relationship between a franchise owner and a franchise operator. The owner owns the trademark, trade name or advertising symbol. The franchisee pays the franchise company to use that identification to open and run a business. There is a "System" that is usually followed that helps eliminate the startup headaches you hear about when someone tries to open a business without a plan.
Should I Open A Franchise?
The hardest part of opening a Franchise is figuring out whether or not it is right for you. Owning a Franchise is hard work. You are responsible not only for your own well being, but also for the well being of the employees that will work for you in your Franchise business.
Check Out the Competition
Before deciding on whether or not to buy a Franchise, check out the competition. Some Franchise companies target areas that have higher competition, because they know the business is there, others shy away and try to target another segment of the market. Either way, make sure you know who your competition is in the market.
Do Your Homework
Do your Due Diligence. Make sure you talk to no less than 20 existing Franchise owners in whatever Franchise you are interested in. Don't assume that just because a Franchise has been in business for years and years that they are 100% successful, most Franchise do run on a very high success rate, but few are perfect. Ask the tough questions and ask them to the people that own a Franchise. Don't just assume that what you read is what you get.
How much can I make? & How much does it cost?
Everyone always wants to know 2 things when they start researching Franchises. How much does it cost? & How much can I make? These 2 things can be easily answered in just a few phone calls. How much does it cost can be researched through the home office of the Franchise and through the UFOC/UFDD documents. How much can I make? Is the tougher of the 2 questions to get an answer for, usually most Franchise companies don't post this information in their disclosure documents, which in turn means they can't discuss it with you, however, in most cases you can call existing Franchise owners and ask them how much they are making, now don't assume this is how much you can make, use it as a guide to where you may or may not end up. Ultimately how much you can make is usually dependent on many many factors including, location, employees, advertising & most importantly: YOU!!!
Have Fun!
As you go through the process in researching different Franchises, make sure you find one that you can have fun with, remember this: Every day you are going to have to run your business, so make sure it is something you can enjoy.
Opening a Franchise can be a rewarding venture in many different ways. You can spend more time with your family, earn more money, have a more secure position etc... So enjoy yourself!!!
More articles on Opening A Franchise
.
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