Why A Franchising Opportunity May Be Beneficial To You
Article by Clive Jenkins
If you’ve considered starting your own business, you’ve probably heard of franchising. For those of you who don’t know what I’m talking about, franchising is where a business allows other individuals to set up in business under the same organizational banner, using the same trademarks to sell the same product. Franchising is usually regulated by locality, with maybe one franchise to a town, or region. A great example of a company that franchise is McDonalds, which, for a money consideration, allows anyone to set up a McDonalds Restaurant and sell Big Macs and Fries under the McDonalds name.
So why do companies franchise? For a company to franchise is for it to grow artificially, increasing the number of outlets from which it sells to the consumer. It’s a good idea for businesses, because they get to expand their organization cheaply and rapidly, even making money in the process. However, franchising can be problematic for companies, and many franchises (which are usually tried and tested businesses) end up going bust or destroying the brand because they become too big to handle. Additionally, it can sometimes be hard to keep an eye on all the franchises which can also cause problems.
So why should you consider a franchising opportunity? Well, it’s good for you in that you benefit from the already established brand name, and you know you’ll have customers who know what to expect from your service. However, almost all franchising opportunities do not give you the total freedom like running your own business, as you still have to meet the organization’s benchmark standards in quality, as well as their targets. Also, you’ll have to pay a pretty penny for the license to use their name – that’s the way every franchising opportunity works.
If you’re interested in buying a franchise, or you’ve seen a good franchising opportunity, the internet is always a good starting point. There you’ll find loads of businesses that are looking to attract franchisees, as well as details of the level of independence you can expect and the amount you’ll have to pay for the privilege. Another good bit of advice is to look around and do your research – you never know how much you could save yourself. And don’t just go for something because it’s your favourite store, of fast food place. Go for something you think is going to make you money, which is the main aim at the end of the day.
There are literally thousands of franchising opportunities nationwide, and it’s up to you to find the one best suited to your budget and business needs. Speak to the franchisors, go to conventions, and talk to your attorney before considering signing up to anything. This way you’ll avoid any problems, and make sure you’re getting the best deal you can. A franchising opportunity can be a very useful launch pad for many looking to start their own business, but be careful who you choose, and be wary of how much you’ll have to pay.
Tags: Beneficial, Franchising, Opportunity
How to Evaluate a Franchise Opportunity
When it comes to evaluating a franchising, you’ll be advised to look at different figures like start-up costs, ROI, turnover, projected sales etc. These figures are going to tell you how well a franchise has been performing in the past but what you really need to know is how well the company markets and promotes its product.
The question you need to ask yourself is; Have you ever heard of the product? Have you ever tried it yourself? Have you seen their ads on TV and were you compelled to buy it? Start with being the customer yourself and analyze how frequently you would use the product.
Talk to franchisees; ask them how holiday sales go, how many peak seasons there are and what kind of campaigns are run on a corporate level. Ask them how effective these campaigns have been. Some franchises may start campaigns that actually cut in to profits like buy one get one free deals.
You need to know what kinds of promos have been running.
Investigate the marketing activities yourself. Go to where you’d normally go to buy a product and see if they have an ad there, it can be online, in your favorite magazine or some other place. Many franchise opportunities in USA charge a small amount for advertising and marketing expenses and you should know what you’ll be getting for your money.
Sound business franchise opportunities not only have a solid marketing plan but they’re likely to own trademarks and copyrights to their products. Fresh fruit arrangements and fruit bouquets are an excellent franchise opportunity that run regular marketing campaigns and are an established brand.
Tags: Evaluate, Franchise, Opportunity
A Look at some of the Best Franchise Opportunities
Article by Julie Pitts
Franchising is a way to work for yourself but not by yourself making it a concept that is continuously growing in popularity for both franchisers and franchisees.
Entrepreneur Magazine has a dedicated section for tracking the success of franchises and measuring which ones fall within the Best Franchise Opportunities Category. Their “Top Ten” list for 2010 includes Subway, McDonalds, 7-eleven, Hampton inn, Supercuts, H&R Block, Dunkin Donuts, Jani-King, Servpro, and ampm Mini Market.
This article will discuss the top five franchise opportunities listed by Entrepreneur in more detail.
SubwaySubway is known for offering a healthy fast food alternative with their variety of submarine sandwiches. The company is a franchise only business headquartered in Connecticut. Subway brings in over .3 billion in sales worldwide having over 32,000 locations spanning across 91countries. The reason they are number one on the list is because of their low start up costs and minimal start up requirements. Fryers and grills are not needed to open a location making the square footage requirement only 600 and the cost as low as ,000.
McDonaldsMcDonalds is an international fast food restaurant headquartered out of Illinois. They are most known for their World Famous Fries, Big Macs, McNuggets, and Egg McMuffins. Currently McDonalds has over 32,000 locations spread throughout 118 countries, with over 13,000 restaurants in the United States. Franchising is McDonald’s predominant way of doing business with 75% of their locations in the US owned individually. The start up costs for a McDonald’s is at least 0,000 but their reputation and hands on training has helped franchise owners succeed.
7-eleven7-eleven is the largest operator, franchisor, and licensor of convenience stores. Based out of Dallas, Texas, they currently have over 36,000 locations worldwide with about 6,970 in the United States and Canada. Although Canada stores are all corporately owned, over 77% of the US stores are franchised. The company has even set a goal to have their US market be 100% franchise owned by the year 2013. The company has succeeded as a franchise because of their low initial investment costs, between ,000 and 0,000 and their standard of support for their franchise owners. They set the bar when it comes to support and assistance in the franchise world.
Hampton InnHampton Inn and Hampton Inn and Suites have over 1,600 locations throughout the United States, Canada, and Latin America. The hotel chain is one of the many mid-level options offered through Hilton Hotel Corporation. Hampton Inn is known for their luxury amenities at affordable prices, a perfect combination to outstand the economic ups and downs. Franchise information states that the initial investment is based on the amount of guest rooms with the minimum amount being ,000.
SupercutsSupercuts is a Regis Family Brand hair salon focused in the value- salon market. They offer affordable, yet quality, haircuts, color, and treatments for men and women. With over 2,300 locations in the United States, Canada, Puerto Rico, and The United Kingdom, Supercuts has dominated the industry. Franchisees should expect an initial investment between 2,500 and 3,000. Supercuts support and training has proved successful for many franchise owners.
Tags: best, Franchise, Look, Opportunities, Some
