You say The reason you open a business is to make money . Not to sound rude or anything but that s not the way it works. I can t tell you too much about a franchise but I can tell you that you have to have-Good CreditA good incomeLiquid assets(Some franchises require above $100K. Most require more)You have to know the business. IF you meet the above requirements, there are people over the franchise department that will evaluate you before letting you open the franchise.And there are more requirements than this.You say- The reason you open a business is to make money . Again, if you were to just lease an office or something, the leasing agent will want to see proof that you can afford the amount of the lease with what you already bring in.So if your lease is $3,000 per month, you have to be able to afford that NOT including what you make from the place you re wanting to lease.
Here are 5 key questions I would ask before getting involved in a franchise operation.1. What s my upfront cost going to be? This is the most obvious initial financial question. But immediate out-of-pocket costs are only one consideration in franchising. 2. What other fees should I plan on? You may be required to lease property or equipment from the franchisor. You may also have to pay the franchisor a percentage of your annual sales. Those numbers must be cranked into your own equations when you re trying to figure out if a franchise deal makes sense.3. How is the franchisor making money? Franchisors may make money by owning their own establishments, by providing services to franchisors, by simply collecting initial franchise fees from people like you or by some other combination. It s tough to make a blanket statement about whether one model is better than another, but surely you want to know where the franchisor s own interests lie.4. What restrictions do I have on suppliers?Are you going to be required to purchase certain goods or services from particular vendors and/or from the franchisor? If certain purchases are required, are they going to cost you more than you would otherwise have to pay if there were no restriction on where you could buy them?5. What kind of regional protection am I getting? Do you have any guarantees that the franchisor isn t going to sell other franchises or open up its own outlets in your geographic area? If so, how long are those guarantees good for?
With literally thousands of franchises in business today, you can quickly become mentally exhausted when researching which opportunity is the best. There is no ��best franchise�� out there that all franchise seekers should sign on for. Do you honestly believe that there is this line of people a mile long outside of Mcdonald��s franchise development office? Of course not. How come? The answer is rather obvious. What is best for you may not be best for me. Maybe you love the idea of managing 10 or 20 employees and would thoroughly enjoy the pride and prestige of franchising for the world��s best known fast food brand. Someone else may have just been laid off after 20 years of service for a computer software company and now wants to pursue his dream of a franchise opportunity that is home based and requires zero employees. You see, it all depends on your unique values and interests. The product or service you offer should be secondary to the type of lifestyle your business will allow you and your specific role as a franchisee. That being said, however, there are several essential features to look for when evaluating any franchise business. Here are the top six:1. Stable industry. You need to be marketing something that will be profitable no matter the economy. One example is a disaster restoration franchise in which the franchisee organizes the clean-up process for businesses when fires or water damage occurs. As the franchisee, you are assured immediate payment by the insurance company to clean up the water damage or rebuild after a fire and those repairs need to happen immediately.2. A necessary, recession-resistant product or service. Choose something that consumers either don��t have time to do/make or despise doing and, thus, would rather pay someone else for. Stay away from fads, as they are unpredictable and don��t provide longevity.3. Market potential versus the competition. It��s wise to choose a franchise that has little or no competition from other similar, established franchises. You wouldn��t (and shouldn��t) locate a Quiznos franchise within a block of two Subways that have been there for two years and are always crazy busy. Ideally, pick a franchise where your main competition comes from small mom and pop stores, which allow you to dominate and thrive. 4. The leader in it��s category. A major contributor to your potential success a franchisee is teaming with a franchise in which they are the undisputed leader.5. A dominant brand. Brand recognition is huge. Aamco = transmissions. Fantastic Sams = hair care. This is a major reason to franchise in the first place. 6. Growth Opportunities. Look for a franchise that encourages you to buy a 3-pack or a 5-pack. Or one that markets the rights to become an area developer or a master franchisee. These are strong indicators that the franchise is thriving and planning to expand and grow the business. There are plenty of franchise businesses out there that provide the above key components. The tricky job is identifying and finding them. That��s where an experienced franchise consultant with a vast inventory of various opportunities can be a valuable resource to you. I encourage you to call me for a free franchise discussion and together we can identify the best options for you and your situation.
there are innumerable franchise companies in the US(assuming this is where you are located) and all you need do is contact them to see what you need to dosometimes a local franchisee is selling his interest, you can sometimes buy one that wayI have a client interested in a local 7/11 which would be $200,000 to buy however it is not a really good locationfranchisers usually instruct you in their business, they want you to succeed too, and they charge you a fee each month on your sales, sometimes, depends on what the product is, all your purchases will be through themyou need to decide what franchise you are interested in and see how many in your area before you go too far
It takes work and money to open a franchise.Then you have to operate the business like they tell you.If you should make any money that s good. They make theirmoney no matter what.
