By Bigg Success Staff
December 14, 2007
Home Office
Buying a franchise is a great way to get started in your own business. The best franchises provide an established brand, proven procedures, market-tested advertising, and ample training. It’s a business-in-a-box – just add money and open. And they may even help you find some of the money!
The International Franchise Association, the leading organization for franchisors and franchisees, has published an exhaustive, free, downloadable document called
An Introduction to Franchising. Here’s the outline of this amazing resource:
Chapter 1 – An Introduction to Franchising
- What is a franchise?
- What are the alternatives to franchising?
- What are the advantages and disadvantages of owning a franchise?
- What are the legal issues of franchising?
Chapter 2 – Beginning Your Search
- What are your options when you begin your business?
- How do you investigate your options?
- How do you investigate a franchise?
- What are your criteria for selecting a franchise?
Chapter 3
- Navigating the Paper Trail
- What are the key subjects in the franchise agreement?
- What are the key items in the disclosure document (UFOC)?
- What do you have to know about financial statements?
- Where can you get help?
Chapter 4 – Evaluating a Franchise: Interviewing Both Sides
- What should I ask the franchisor?
- What should I ask the franchisees?
- What questions should you ask yourself before buying a franchise?
- What are the keys to franchise success?
Chapter 5 – Writing a Business Plan
- What is it?
- Why should you do one?
- What should it look like?
- How do you write one? Where should you begin?
Frankly, we were surprised at how much great information is included in this paper. Even if you don’t end up buying a franchise, you’ll get some valuable advice for any business you start. We’re happy to recommend it to you!
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[...] the opportunity? Match these up when looking for your franchise.How to find your franchiseCheck out How To Buy A Franchise to learn more about the International Franchise Association. This industry group also provides some [...]
I saw your posting and thought you’d be interested in a few tips from my client who is a franchise expert at Wireless Toyz because even after someone has made the initial decision to buy into a franchise opportunity, there are seemingly endless checklists of things to consider before choosing ‘the right one.’ President of finance and franchise development of one of the country’s fastest growing companies, Richard Simtob recommends a cold hard look at every one of his top ten selection criteria before making the leap.
1. Choose a business about which you are passionate. If you love what you do, you’ll never “work” a day of your life.
2. Choose a business whose daily tasks align with things you like to do.
3. Ask yourself if the dollar potential of the business will meet your long-term financial goals.
4. Make sure the investment requirements and start up costs fit within your budget. Is financing assistance offered? What is your risk tolerance?
5. Determine if the income potential is sufficient for you and your family. Are royalty payments reasonable and designed for both the company and franchisee to profit?
6. Assuming the product is superlative and demand has been established, evaluate the franchise system itself and make sure it is based on a sound business strategy. Will you be comfortable executing that system?
7. Assess if the brand is solid, recognizable and likely to lead to sales on its own strength.
8. Research the company and its history. Has it been around long enough for most of the kinks to be worked out? Has the concept caught fire?
9. Gauge if franchisees are allowed the level of autonomy and independence you desire. Consider the level of assistance or freedom you would like for real estate, store layout and design, ongoing operational field support, business analysis, training manuals, marketing and advertising.
10. Verify an exit plan and separation strategies that are acceptable to you. Knowing how to get into the deal is only half of the equation.
You may contact Richard Simtob at 866-2FRANCHISE or email him at franchise@wirelesstoyz.com. You may also visit http://www.wirelesstoyz.com/franchise for more information.