If you look around you, you probably see a McDonald’s restaurant at your every turn. The same for KFC, Taco Bell, Domino’s, and many other foods serving lines. All these restaurants are examples of a franchise business. 

Don’t get it twisted, though, food business isn’t the only field with franchising opportunities. Businesses dealing in auto parts, real estate, furniture, plastic, and so much more can also execute franchises.

In this post, we’re going to be talking about the steps you need to take to start a franchise. That means this post is created for anyone interested in becoming a franchisee.

What Is a Franchise Business?

A franchise is a business structure wherein a large corporation (franchisor) sells the right to open stores and sell products under its brand name to another smaller brand (franchisee).

For example, Toyota is one of the largest auto brands in the world. If someone wants to open a Toyota dealership franchise in their neighborhood, they would need to contact Toyota to strike a franchise agreement with them. If granted, the franchisee will open a dealership store under the name of Toyota, and Toyota (the company) will earn a return, depending on the nature of the agreement.

Who Is a Franchisor?

A franchisor is a company selling the right to its brand name and intellectual property.

Who Is a Franchisee?

A small business buying the right to open stores and sell products under the flagship name of a larger company.

How Much Does a Franchise Cost?

Franchise fees vary depending on the company concerned and the terms of the deal. However, in most cases, business owners can expect to pay between $20k and $50k, according to Small Business Administration.

What Are the Available Franchise Types?

Before starting a franchise business, you need to know the options available to you. Below are some of the popular areas people explore:

• Auto Parts
• Fitness Centers
• Retail
• Restaurant
• Real Estate
• Pet care
• Travel agencies
• Entertainment hubs
• Home and Commercial cleaning services
• Education
• Convenience stores
• Pharmaceuticals

Importance of Visiting a Franchisor Before Starting a Franchise Business

Very soon, we’ll explain the steps to take to find a franchisor to partner with. However, before then, I’ll like to talk about the importance of choosing a franchisor in the United States.

As you know, the United States is one of the largest countries in the world from a business standpoint. There are many businesses in the US, and many more are getting opened every day. But, the real reason we think the US makes the best franchise source is because of the existence of the ESTA online visa.

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The ESTA USA is a unique type of visa that lets business owners come into the US anytime they like for a maximum of 90 days. Also, the ESTA takes just 72 hours to process. So, basically, it is easier to travel to a franchisor anytime you want.

As a franchisee, you know that you will need to visit your franchisor from time to time and to do that, you’ll need a free passage into their country. You don’t want to partner with a franchisor located in a country where the visa takes three weeks to arrive.

How to Start a Franchise Business

Step One: Pick A Franchise Niche That Aligns With Your Business Goals

As we’ve shown you above, there are numerous franchise niches you can explore. In fact, there are hundreds of them.

So, the first step of the process is identifying an area of best fit. Of course, this will depend on factors like:

• Where you want to situate the business
• Demand for the products in the niche
• Franchise fees
• Profit potential and margin, and many others.

It is up to you to sit down and make a decision on the important factors that matter to you.

Step Two: Research, Research, Research

Let’s say you’ve figured out pet care is the best franchise opportunity for your area. The next thing is to start researching potential pet-care franchisors.

As you can imagine, franchisors aren’t created equal. What a brand might lack, another might have. And what one brand might offer, another may not.

So, you have to consider many factors that you believe matter to you. For perspective, some factors to consider include:

• Proven sales record of a brand
• Nature of acceptance of a brand in a target area
• Potential for scale-up
• Competition
• Up-sell opportunities
• Profitability margin

You can find information about potential franchisors on each brand’s website. Franchise owners usually publish information explaining their scope, requirements, and benefits on their sites.

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Step Three: Set Up Your Business as an LLC or a Corporation

Once you’ve identified the franchise area you’re going into, the next thing is to register a business in that line.

Many franchise owners won’t work with businesses that aren’t registered. In fact, some will state explicitly that they only deal with LLC companies and Corporations. So, to avoid getting rebuffed by a prospective franchisor, register your business first.

Also, registering your business helps ensure that your franchise business is getting set up as an entity on its own. From a legal standpoint, that’s crucial for all dealings and contracts.

Step Four: Gather Your Funds

If you’ve done your research well, you should have a clear idea of the amount you need to buy a franchise right from a franchisor. Besides the franchise fees, you’ll also need money for other aspects of the business, like setting up, staffing, resources, etc.

Some franchisors may demand that you have a certain amount in liquid assets. So, you have to know where that money is coming from. You need to have a clear idea of how to get this money.

If you’re leveraging loans, you must know that your credit score and personal reputation will have to be robust enough to carry the weight of a business loan.

If you don’t have sufficient funds and still aren’t qualified for loans, you may want to consider exploring franchises that deal with people who don’t have sufficient starting capital.

Step Five: Reach Out to the Franchisor

There are lots of ways to meet a franchisor. For example, you can contact them over the telephone, email them, send a message on their website or social media pages, or simply walk into their office.

Personally, I prefer the physical approach, as it gives you room to communicate and build a stronger relationship. We spoke about the importance of in-person visits earlier.

However, if a franchisor isn’t situated in the same state or country as you, you may have no choice but to contact them virtually. However, bear in mind that you’ll still need to visit your franchisor at some points. 

RELATED ARTICLE: HOW TO SUCCESSFULLY MARKET MULTI-LOCATIONS OF A FRANCHISE

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Buying a franchise is a lucrative venture that allows entrepreneurs to enjoy the independence of owning small businesses while benefiting from the support of more prominent brands and their more extensive networks. As a franchise owner, you already have an established reputation from the onset. Most franchisors train their franchisees on how to operate their business models. So, a person with little or no business experience can run a franchise successfully. 

However, marketing your business as a franchise owner can be very challenging. It can be difficult when you operate in different locations simultaneously. This is because there are various factors that matter in your marketing that you’ll have to take into consideration. You must think about the marketing at the corporate level, that is, the marketing done by the franchisors. Also, you’ll need to consider the unique factors that are important for your local stores based on the independent ideas that your store managers bring. 

Your marketing has to bring all these variables together. If done, you’ll be in sync with the corporate-level marketing and the unique needs of the different areas your store is located. This will help you connect with the local customers and talk to a large, broad audience at the same time. The following tips will help you balance the unique set of challenges with multi-location franchise marketing and maximize your marketing campaigns to yield the best outcomes. 

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1. Develop a Central Brand Guide

A brand guide is an instruction manual on how your brand should be communicated. It should specify every aspect of the appearance and feel of your brand (brand identity) and outline the standards required to represent your brand correctly both externally and internally. Whether or not you have one person handling or managing the marketing of all your franchise locations, it’s essential you have a central brand guide.

When you detail all your marketing assets and manage them centrally, your efforts will always feel cohesive. As a result, someone marketing a store in one location will follow the same branding as someone marketing a store in a different area. Your central brand guide should include details of your logo, font, and brand color. It should also describe your brand voice and tone and explain your key messaging guidelines. 

In addition to your central brand guide, you should create sections for each store location. While your central brand guide talks about your brand as a whole, your regional or local sections should discuss specific areas and give unique guidelines for them. So, describe each franchise location and pinpoint anything that distinguishes them from others. Then, create personas that describe your ideal customers in each location. Remember to include marketing notes about each store location that could be important in your marketing campaigns, such as lists of local festivals or holidays.     

2. Give Each Franchise Location Some Freedom to Market Independently  

Recognize that each business location serves a different set of customers. So, even if you want to keep most of your marketing consistent, you need to localize your campaign to each store. If you don’t let the managers of your store locations have a say over your marketing, you’ll miss the opportunity to get them actually involved in the process that affects their success. They know their local customers best, so they’ll likely know the most effective ways to connect with them. 

So, talk with each manager to learn about their marketing ideas. Afterward, brainstorm how to maximize those ideas in your business’s best interest. Use those ideas to reach and benefit customers in your shops’ local communities.    

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3. Create a Google Business Profile for Each Franchise Location

According to EWR Digital, a franchise marketing agency, ”Establishing a digital presence is crucial to the success of any business, including a franchise.” Most people check Google when searching for businesses close to them. If you only have a Google business profile for your main store location, you will likely miss out on customers at your other locations. That’s why each store location should have a Google business profile so that they can appear in appropriate local searches. 

Also, since Google business profiles help gather reviews, you’ll be able to see the reviews for each of your franchise locations and know what problems customers may be experiencing. That way, you’ll be able to figure out how to address such challenges appropriately. You can also create profiles for each store location on platforms such as Yelp, Facebook, Instagram, and Angie’s list.  

4. Have a Page for Each Store Location on Your Website

Having multi-locations of a franchise doesn’t mean you should create a website for each location. Instead, develop one central website for all locations and dedicate at least one web page to each one. This will make it easier for customers to find specific details about any location they are interested in. And you’ll be able to use paid ads or promotions to drive traffic to the specific URLs on your website when marketing with location-specific content.

Remember, each location needs unique content because your website may not get a high Google ranking with duplicate content. So, you should use different website contents for your locations’ web pages. Of course, you could cover the same topics for various locations, but each webpage should have focused keywords that target the right audience and location. On each webpage, highlight any location-specific facts such as operating hours, exclusive products, local maps, and special announcements. A strong local SEO will help show the relationship between your stores and their surroundings. 

5. Track Your Marketing Data and Performance by Location

Data tracking helps ensure that your marketing campaigns are effective. When you run multi-location franchise marketing campaigns, you need to track your marketing data and performance on a local level. Organizing your data by location will help you see how your campaigns performed in different regions.

One of the location metrics for monitoring your marketing campaigns is your local conversion rates. Your local conversion rates will show whether your marketing contents resonate with prospects in specific locations.  

RELATED ARTICLE: HOW TO VET A FRANCHISE

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Franchise businesses are more notable, as they have a much higher success rate than setting up a business from scratch. Developing a solid business plan for your franchise is one of the essential tasks that you must complete. This plan will assist you in thinking about and preparing for any obstacles that may come. It will also help in drafting out your expectations for your new business. Moreover, it is mandatory to show your business plan to most lenders if you plan to secure a loan. So, you should have a franchise business plan that is detailed and one that tackles all parts of the business.

If you have ever thought that developing a business plan is complicated, know that your franchisor has done a lot of the job in creating a business plan for your franchise. Franchisors can assist you in finding all the necessary financial data in their Franchise Disclosure Document (FDD). 

However, there are still tasks that you should carry out. Hence, finding out how to make a franchise business plan is essential. 

Here’s a guide to making a business plan:

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Executive Summary

Within the entire outline of the business plan, the executive summary will immediately come after the title page. An executive summary includes the introduction to your franchise business plan. It consists of a business summary that will attract funders and lenders. Not only that, but it also explains the vision of your goal for the franchise, alongside how you want to attain it.  

Furthermore, in an executive summary, you will have to add the following:

• Details on the franchise’s growth potential
• Information on how your franchise will become distinct from other businesses in the competition 
• Risks and problems that could possibly come when beginning a franchise  
• Details on how you will fill a gap inside the marketplace

All in all, you should demonstrate in the summary that you have a solid grasp of the business essentials.

Business Description

Having a business description of your franchise is the next part of having a simple business plan. Here, you can refer to Item 1 of the FDD to create an overview and history of the franchise. In terms of the franchise’s history that needs to be written in this section, you can inform and convince your lenders that the franchise has a history of financial success, and they can trust the franchise to fulfill its vow. Aside from this, you can include past events that support the franchise’s perception.

Other things that should be part of the section are:

• Location of your franchise business in terms of availability and profitability
• Outline of your target customers and how your franchise will assist them
• Short overview of the franchise’s products and services that it will supply on the market (more details about this will be discussed in the next section)
• The franchise’s unique selling point, which is the key feature that separates the business from others
• Conditions of your entire relationship with the franchisor
• Your best practices on how you will develop brand awareness once your business begins and starts running
• Your plan on how you will promote and advertise the business’s products and services

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Product/Service Description

This section explains the products and services that the business provides in full detail. You must discuss the section well to avoid confusion on the part of lenders regarding the nature of business. The section must also explain how the franchise can improve its product and service in a changing market. Note that others often incorporate this topic into the business description on other business plans. However, if you want to focus more on your products and services, you can create a section specifically for them. 

Item 1 of the FDD is a good source for the information needed in this section. Next, item 16 can be beneficial too in explaining what you as a franchisee of a specific franchise system will and will not be capable of selling. Lastly, item 16 is needed because there are usually limitations in terms of the products a franchise can sell and what it is not allowed to supply. Likewise, if your business monopolizes on a specifically popular product, then you must discuss just how extensive your selling point is.

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Management Section

Your franchise business needs to discuss its management structure and any related core philosophies or values. You should identify who will take charge of the day-to-day operations, particularly you as an owner. You should also ask if the franchise is a sole proprietorship or if many owners will manage it. In terms of you being an owner, will you become an absentee owner, or will you be present in the day-to-day operation of the business? 

For you and others with an ownership stake, this section must cover, if possible, all the business qualifications that you or that other people need. You can determine all the explanations concerning the franchisee’s managerial obligations by getting the assistance of Item 15 of the FDD.

You must take note of who will fill the management positions as well. Second, know what qualifications and skills are needed for each management position. The third step is to determine the salaries and benefits you will provide the management staff. Lastly, decide how you will appoint and train the management staff needed.

Conclusion

Running a franchise business will be worthwhile, as it has a greater chance of succeeding than starting a business from nothing. One way to start handling a franchise is to have a business plan. A plan is an essential part of this type of business since it will help you think about and prepare for whatever issues arise. Additionally, it will help you solidify your expectations for your new franchise and receive the necessary financial help from would-be lenders who require it.

The franchisor will have already prepared the way for you by taking charge of the rest of the tasks in creating a business plan. They can support you by giving you the helpful financial information your franchise business needs. 

However, there’s still some work for you to do, so being knowledgeable about creating a business plan is crucial. 

RELATED ARTICLE: PRE-PLANNING IS CRUCIAL TO BUSINESS SUCCESS

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There are few things more rewarding in life than building your own business from the ground up and seeing it go on to find success. Entrepreneurs take a huge risk by starting their own company. Although it may be scary, it’s important because it can be very hard to find success in the business world if you are risk-averse. So, why is it so important for entrepreneurs to be willing to take risks?

1. Opportunity Is Tied to Risk

First off, you will find that opportunity is always tied to risks. You cannot expect your business to thrive or reach new levels simply by doing the same thing and playing it safe. You need to be willing to take a chance to grow, develop, and improve.

Horst Julius Pudwill, Chairman of Techtronics Industries and a Director of Milwaukee power tools, took the hard road during the pandemic and ended up reporting a 30% increase in net profit. Pudwill commented, “We made a lot of bold decisions (in 2020) when our competitors were furloughing people, we made the decision to invest further in our business, to build up inventory to support our customers (and) to invest in R&D”.

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2. Passion

Entrepreneurs need to have a passion for their work otherwise it can be very hard to find consistent success. Chances are, if you are taking on a risky project then you feel passionate about it. This means you will be more likely to put in the required work for it to pay off and to mitigate the risks. However, if you do not feel passionate about the work, you are probably less likely to take risks. This could also cause you to tread water or fall behind the competition.

3. Evolution Is Key to Continued Success

Leading on from this, you need to understand that evolution and development are key to continued success in the business world. Those that are able to adapt, modernize, and stay current with trends will remain competitive and appeal to their target audience. The pandemic has been a good example of this. Those that have been agile and able to adapt to not only survive, but actually thrive during COVID-19.

4. Learn from Mistakes

When you take risks, it is inevitable that there will be some mistakes. Even the world’s most famous and successful entrepreneurs will have made dozens of mistakes over their career, but what separates them from the rest is that they are able to view these as learning opportunities and are able to improve.

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5. Grow On a Personal Level

You will also find that learning how to take risks in business will also help you to grow on a personal level. Whether they pay off or not, there is always a huge amount that you can learn from taking risks on a regular basis. Many people find that stepping outside of their comfort zone often is the best way to learn and improve confidence.

 Final Thoughts

As you can see, entrepreneurs need to be comfortable with taking risks. It is vital for the ongoing success of the business, but it can also bring a range of benefits too. Risk is important for growth and development. Plus, you will find that there is a lot that can be learned about both business and life when you are willing to take risks, work hard to mitigate risks and step outside of your comfort zone.

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Technology in today’s world evolves rapidly. Certain products and services that were once considered essential now seem obsolete. If you are running a business and wish to secure its long-term future, you must keep yourself updated about the latest technology and marketing services that are relevant to your enterprise. Web design is a tool all business owners should take advantage of to benefit their businesses.

Utilizing a professional web design is essential for companies that want to succeed online and be visible to potential customers. So, if you’re not embracing web design already, here are a few reasons why you should. 

1. Web Design Can Help Make a Great First Impression

Many people encounter companies for the first time online. Therefore, if you have a slick, fast-loading website that’s fun to use, you are more likely to make a great first impression. Remember, if a customer’s first experience with your business is negative, it’s unlikely they will choose to purchase your products or services.  

If your website seems outdated, cheap, and doesn’t function well, your audience is likely to leave immediately. Also, there’s less chance they will return in future. Quality web design can have a significant effect on the way you’re perceived online. However, a talented web designer can create an attractive website for your business. This encourages people to continue browsing your online space and learn more about what your business has to offer.

2. Web Design Boosts Your Search Engine Strategy

The quality of your website influences the search engine rankings you receive. For instance, if you’re using poor quality tools and practices, you may be pushed down the rankings. Also, this will cause your business to lose potential customers. 

A skilled web designer will ensure your on-page SEO principles are fully up-to-date. Web design elements and your publishing style can both affect rankings as well. A professional web design company can help raise your website’s rankings and outshine the competition. 

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3. Well-Structured Site Wins Your Audience’s Trust 

Not many people trust poorly designed websites. If your website doesn’t look great, people may not trust the information provided or your business entirely. A low-quality website is also likely to turn investors off and cause them to look elsewhere. 

The information on your site must be well-structured and carefully organized so people can easily find what they’re looking for. High quality professional websites tend to gain customer’s trust. It also helps them feel comfortable, more welcome, and eager to make purchases. 

4. Surpass Your Competition with Excellent Web Design  

Chances are your competitors are already using professional web design services and benefitting from them considerably. Therefore, if you don’t have a professionally designed website, you risk falling behind. However, by creating a distinctive and innovative website your customers love to browse, you can prevent your competitors from outranking you. 

Quality web design can help you achieve your business’s goals. Seeking a professional’s help will prevent your business from missing out on online and offline success. Even if your products and services are similar to other companies, your relationship with your customers will help you surpass them. 

Conclusion

Why not make your business bigger, better, and more customer-friendly by investing in professional web designer today? It’s time to take your company to the next level and achieve the success you’ve been searching for. 

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A Must-Read Article for Anyone Thinking of Investing in a Franchise.

When I was in my late twenty’s, I had a horrible experience buying into a popular franchise concept. Feel free to read what happened to me.  I am a lover of all things business and have been self-employed most of my adult life. After my sour franchise experience, I have investigated hundreds of franchises trying to find just the right thing. At this point I consider myself a franchise investigation pro.

Truthfully, as I do my research, what I find over and over again is most franchisees are not actually making money. Some don’t even seem to know it. Either that or they just have too much invested (time and money) so denial is their only savior.

Back when I opened my Cold Stone franchise, I had no idea what I was doing. I didn’t know how to vet a franchise or even that I should. I did a little due diligence but I was going through the motions because I didn’t know what I was looking for. I saw the pretty, shiny thing (Cold Stone) and wanted in. Enough said!

Here are the 3 Main Things I did Wrong:

1. I let the franchisor (Cold Stone) tell me the franchisees to talk to – I don’t even think that is legal
2. When I did speak to actual franchisee’s, I asked really stupid questions – I was unprepared
3. When existing franchisees tried to warn me, I didn’t listen.

How to Properly Vet a Franchise

You will start by making contact with the franchisor most likely via their website. They will have some sort of application process whereby you submit a form or talk to a representative to ensure you can afford to invest – before either of you wastes much time.

Once the franchise qualifies you, with capital and experience, they should present the opportunity to you. You can ask questions about locations, build costs, square footage requirements, required capital, loans, royalty percentages, territory protection and so on.

Here is where it gets good – the FDD or “Franchise Disclosure Document”

Once both parties agree there is mutual interest, the franchisor is obligated to send you a FDD (Franchise Disclosure Document).
Chances are it will be enormous and designed to terrify, overwhelm and confuse you.
It is an excellent document, however, and here is what you want to look for right away: (use the FDD index to quickly find these items)

1. The pages where it tells you how much it costs to build out the location and/or start the franchise business in its entirety.
2. Find the franchise fee is. This is usually a one-time payment the franchisor charges you for the privilege to operate your business using their logos, recipes, formulas, methods, software, etc. This fee can be hefty and I’ve seen them as high as $65,000 so be aware.
3. Find out the ongoing royalties. There are usually franchise royalties and marketing royalties that are each a percentage of gross sales but some concepts offer flat fees.
4. Find a list of all existing franchisees (This is the super critical stuff and is usually tucked at the back of the FDD somewhere. It tells you ALL existing franchisee’s in the system and you are going to want to talk to as many of them as possible.
5. Look for a list of franchisees who have left the system. This is critical information as these people are free and clear of the franchise and so can talk to you openly.

*NOTE: I am not telling you not to read the entire FDD. In fact, should you decide to move forward, I would insist you AND your attorney read every page.

What Does the Franchisor Want?

Keep in mind, the franchisor wants to sell you a business. They are sales people and quite good at what they do. Listen to what they have to say then get your lists of present and past franchisee’s out and call as many as possible. I recommend speaking to no less than 10 and I’d prefer you speak to 20.

REMEMBER: The more franchisee’s you talk to, the better informed you will be

Set aside time, call people and be organized. Make a question’s list ahead of time, make 2 dozen copies, one for each franchisee you call. Write their name, location(s), phone number and notes at the top so you can remember who they are and what was said.

I usually learned a minimum of one great tip from every person I spoke to so every call you make is worth your time.

A Warning About Area Development Brokers

Be forewarned, an area development broker or territory broker is not an ordinary franchisee. Their names will be on the existing franchisee list so be sure you check who those people are.

Area brokers are franchisees who purchase a large territory from the franchisor to help sell franchises. In essence, they get paid should you buy in the territory they have purchased.  This was not disclosed to me when I purchased my franchise and of course the area brokers I spoke with raved about the concept. Just make sure, if you call area brokers, you know they have a vested interest in your buying a franchise.

Development brokers can provide a wealth of knowledge on operation questions. Just don’t consider calls to them, as a part of your due diligence, legitimate for our purposes here.

TIPS: When you First Call Existing Franchisee’s:

• Tell them you have a few quick questions. People are busy so let them now you respect that and will be quick. They get a lot of calls and will more likely speak with you if you agree to be quick. Once on the phone, they usually take all the time you need
• Mention who you are and say you are looking at a territory far from them. If they think you will be invading their territory they might clam up. For instance, if you live in CA, call franchisee’s in WA, TX, FL & NY
• Get to know them a bit before you ask the HEAVY questions. Introduce yourself and ask where their stores are located, how many they have, how long they have been operating and if they are opening more
• My experience has always been that franchisee’s want to help others succeed. They might be standoffish at first but if you ask good questions and are courteous, they warm right up. Once you get them sharing you have struck gold
• Start out light and airy and let the questions build
• Once you have established a rapport, it’s time to find out if they are making money
• Yes, you can ask that. Ask every franchisee if they are profitable – you need to know
• If they hesitate with a question, ask it again in another way until they answer e.g:
  • Do you find the home office to be honest people?
  • Are the people in the home office pretty sincere?
  • If you have a problem does the home office help you?
  • Is there anyone in the  home office I should stay away from?

  Questions You Need to Ask to Vet a Franchise

1. Where are your stores located or what is your territory?
2. How many locations or territories do you have?
3. Are you planning to open more locations or territories? (If they are it could mean good things or bad). Good if they did not buy a multi-franchise contract as that means they WANT to open more. Bad if they signed up and paid for a multi-store contract and HAVE to open more stores whether or not they want to. To find out, just ask them.
4. How did you find out about the business opportunity? (Let them talk and share their story).
5. Have was the deciding factor in you deciding to invest? (This can be critical information so pay attention to what they say).
6. Have you found the franchise to be honest and helpful when you needed it? (If the franchise is not honest, do you really want to work with them)?
7. When you have a problem does the franchise actively help find a solution? (In my experience, they did not. I am a “do it now” kind of person. When something breaks, I want it taken care of same day or ASAP. Solutions from a franchise that need to be committee approved over a 6-month period might not jive with your work ethic).
8. Did the training program prepare you to run the business?
9. What is the hardest part about the business? (This is a good one. If the business is painful they usually tell you now).
10. If you had a do-over, would you invest in this franchise? If they say no make sure you find out why.  
11. The franchise told me it would cost $95,000 to open the business. Is that correct? If it cost a lot more, they will tell you. Remember, a dishonest franchisor is something to be very wary of. 
12. Does the franchise protect your territory? This is critical. If they are growing and selling to everyone (think Subway) this is something you need to know.
13. Are the other franchisee’s happy or dissatisfied? In a franchise, you really get to know the others in the club. This question is great because it gives you a lot of info of how others are doing without speaking to every one of them. (If they do mention someone in particular with a gripe, it would behoove you to give that person a call).
14. How many hours a week are you putting in and are you able to travel? If they work 60+ hour week because they have to, is that really something you want to do?
15. Can I ask you how long it really took you to profitable?
16. I have looked at a million business concepts and most times I find out they are not profitable. Can you tell me if I can make money in this business? (start asking about money now).
17. I have run the numbers and from what I understand, I am planning on year 1 gross sales of $500,000 with 20% to the bottom line. Does that seem accurate?
18. Always close the call by thanking them and asking if there was anything critical you should have asked but didn’t. That gives them a chance to tell you things that might be going on that you would not know to ask. Many times they will invite you to call them again should you have more questions. Definitely call them should you need to.

A Warning About Franchises In General

A franchise is a funny thing. Once you buy in, you are invested. For many people, they put their life savings and more into it and they need it to be successful. Therefore, they are not going to easily tell you bad things about the business. After all, they are trying to run theirs and maybe hope to sell it one day soon.

Also, when you buy a franchise, sometimes you get into bed with some powerful (and evil in my case) franchisors and you don’t want to make them mad. For example, at first, my husband and I were careful about what we said to potential franchisees who called us. We were exhausted and growing angry but we had so much invested we had to stay the course. Eventually, however, we saw countless good people come into the system upbeat and happy. Within a year they were stressed beyond belief, had gained weight, looked unkempt, had gone gray and were filled with regret.

Our consciences weighed in and we began to gently tell inquiries the stores were very hard work for very little pay. When word got back to Cold Stone they terrorized us about it. It was an ordeal that all these years later, I am still not quite over.

I tell you this so you will know a franchisee is in a precarious position. When you call them, at first they might be standoffish and un-trusting. They more they warm up to you and learn you are not a franchise shill, the more they will open up to you. I’ve had more than one franchisee, in my investigative work, say to me, “just between you and me,” or, “don’t ever repeat this but.” Usually this happens in the last 5 minutes of the conversation because they want to tell you but they have to trust you first.

All of which leads to the next step, calling former franchisee’s too. They have sold out of the franchise, or closed, and they no longer have any reason to be shy.

Questions for Former Franchisees

Former franchisees are not as easy to get a hold of as existing franchisee’s so you might have to work a bit harder and call more of them to get a call back. I’d call every single one on the list if it were me.

Ask them these 4 questions:

1. Why did you leave the franchise?
2. Did you make good money?
3. Was the franchise honest with you?
4. If I was your family member, would you advise me to invest in the franchise?
If you do that, you should have more than enough information about the franchise to make an educated decision. If you don’t feel you do, call more people. Don’t stop calling until you feel certain you can make a living running that business AND that it fits your anticipated life style!

Conclusion

Am I saying that all franchises are bad? No, of course not. My only point is that if you want to open one, you need to do your due diligence first. It is very important you know how to properly vet a franchise so you can make sure if it’s the business is right for you.

I do want to leave you with this…whatever your dreams are, start living them today.  If you wait until you are 100% ready, you may never get started because we are never 100% ready. Sometimes you just have to jump in and figure things out.

I hope this article helps you and please share it if you think it can help someone else you know.

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RELATED: TOP NEW FRANCHISES TO INVEST IN

To help narrow your search, we’ve compiled a list for you in a variety of industries from which to choose. Take advantage of today’s hot franchises and make your dreams of owning your own business a reality. The right opportunity is out there for you — go find it!

Orangetheory Fitness

Min Investment: $150,000
Orangetheory Fitness is a one-of-a-kind, group personal training workout broken into intervals of cardiovascular and strength training. Backed by the science of excess post-exercise oxygen consumption (EPOC), Orangetheory’s heart-rate-monitored training is designed to maintain a target zone that stimulates metabolism and increases energy. Led by skilled personal trainers, participants use a variety of equipment including treadmills, rowing machines, TRX suspension training and free weights, burning an average of 900 calories including after-burn. The result is the Orange Effect — more energy, visible toning and extra calorie burn for up to 36 hours post-workout. Orangetheory Fitness has become one of the world’s top fitness franchises, with more than 200 open studios in 28 states, and more than 600 franchise licenses awarded in and outside of the United States. In addition to its newest international location in South America, Orangetheory currently has studios in Canada and the U.K., Mexico, Colombia and Australia.

Auntie Anne’s Franchise Cost and Information

The 5 Best Small Investment Home-Based Business Opportunities

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This isn’t the same as borrowing against your 401k, and hence, there are fewer (or no) penalties or limitations. Instead, you’re investing your 401k assets in yourself and your own business.

We ran a guest post from a company that provides this service late last year called Guidant Financial.

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Maui Wowi Hawaiian continues to expand its presence in the franchise company’s home state of Colorado with its newest franchisee, Stormy Burge. She joins Maui Wowi to bring the gourmet Hawaiian coffees and all-natural, fresh fruit smoothies to Colorado.

“I had never heard of Maui Wowi, but once I came across it, I knew it was the perfect fit,” said Burge. “There’s something for everyone in the family; my kids love the smoothies and my husband and I love the coffee.”

Burge has a background in criminal justice and has worked for the last five and a half years as a Corrections Officer, which has proven to be a very stressful and physical position. She sustained an injury, which gave her even more reason to seek a new career path; one where she could continue to provide her community with something of value, while living a more relaxed lifestyle.

The post Maui Wowi Hawaiian Continues Rapid Expansion In Its Home State appeared first on Business Opportunities.

European Wax Center, one of Inc. 500’s fastest growing companies in America, is opening its doors in Tulsa on Oct. 1 in the Tulsa Hills Shopping Center at 71st Street South and U.S. Highway 75. The newest location of the franchise will bring upscale, affordable and professional waxing to the Tulsa community in a clean, convenient and classy environment.

As part of its debut in Oklahoma, European Wax Center is hosting a week of free waxing Wednesday, Sept. 26 – Sunday, Sept. 30. During these days, guests can experience European Wax Center’s proprietary wax, services and products free of charge. The team of aestheticians at the center are licensed to perform waxing on all parts of the face and body — including Brazilian bikini waxes — using a wax developed in Paris that clings to the hair, not skin — for a more pain-free waxing experience.

“Our team is excited to meet their new Tulsa clients and get to work,” said owner Roy Adams. “We are thrilled to offer comfortable, healthy removal of unwanted body hair to residents of the Tulsa area.”

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Nearly 53 years after its founding in Ypsilanti, Michigan, Domino’s Pizza today opened its 10,000th store and celebrated the milestone in Turkey – one of the fastest-growing markets for the recognized world leader in pizza delivery.

One day after opening its 9,999th store, located in Carlsbad, California, Domino’s Pizza (DPZ) opened its milestone store in Kaligthane, a district within the city of Istanbul, in an event attended by Domino’s President and Chief Executive Officer, J. Patrick Doyle.

“The extraordinary efforts of many people over many years have led us to this exciting milestone for everyone associated with Domino’s Pizza,” said Patrick Doyle.

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Mama Fu’s Asian House has implemented a more contemporary design in three of its restaurants with plans to give all new locations the updated look. Mama Fu’s expects to have another 10 to 14 units open by the end of 2013.

“Our primary franchise objective is to increase unit level revenue, and the new designs are a natural progression toward that objective,” said Randy Murphy, president and CEO of Mama Fu’s. “The new look is a cost effective, fresh representation of the brand that will also provide further differentiation from competitors.”

The new exterior design features a trestle-style background to accentuate the brand’s signage, a distinctive entranceway, Asian-inspired lighting, signature awnings, window graphics that provide stronger branding and black bamboo planters.

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The Body Shop, an international cosmetics and toiletries brand has opened its first store in Siliguri in West Bengal. The brand’s master franchise for India is Quest Retail Pvt. Ltd, a part of The Planet Retail group. The new store located at Cosmos Mall will make brand’s quality products accessible to the customers in the state. With the new opening, The Body Shop aims to expand its customer base in West Bengal. It will offer fabulous promotions, free make up application, skincare and make up consultation and many exciting offers and services at the store.

The Body Shop India has always believed in the importance of redefining retail experience, maintaining the international standards of retailing its products to the customers…

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Question: I am currently working as an accountant but I am looking to buy a franchise in the hospitality industry (a cafe). What should you look for before making a commitment to purchase a business? What can I do to minimise the risk?

Answer: I am not sure whether you are considering buying the franchise as an investment or whether you intend to be actively involved in running the business. In either case you would first need to do your due diligence on the business you are considering. As you are an accountant you should have a pretty good idea on how to check the financial viability and financial history of the company and in coming to a reasonable valuation of it. So I will not spend further time on these themes.

You will need to assess the likely future earnings from the business and whether these represent an attractive rate of return on the funds you will be committing to it. Read more.

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Convenience franchise, NightOwl, has opened a new store in Queensland’s Fernbrooke and celebrated the occasion with free giveaways and a Brain Chill Challenge.

Opening last weekend, national buying and marketing manager for NightOwl, Richard Elsley said the franchise had received a lot of positive feedback from locals.

“We held our iconic brain chill challenge which saw lots of local children come out and experience the brain freeze phenomenon, it was a lot of fun and several children won some great prizes including a state of the art sound system. The Ipswich Lions Club ran the BBQ and the kids loved the jumping castle and visit from Nova106.9,” he said.

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Jerry Flanagan is a 45-year-old Army and National Guard veteran from Wayne, Pa., who thinks returning vets should have a shot at owning their own business.

He’s the owner of a year-old startup, J-Dog Junk Removal, and he’s putting his opinion practice by franchising his business — only to veterans.

Does that make J-Dog a great business opportunity for veterans? There could be some distinct advantages to enlist in the new, all-veteran organization, but also some very real risks.

Read full post here.

The post Can One Startup Grow By Franchising Only To Veterans? appeared first on Business Opportunities.

Maybe that next career isn’t working for someone else.

If you have the itch to ditch the job search and start your own business, this may be the place to start.

The Northern Anne Arundel County Chamber of Commerce is holding a seminar, “Career Alternative: Start Your Own Business,” on Oct. 2 from 8:15 a.m. to 1 p.m. at La Fontaine Bleue in Glen Burnie.

The promised topics… read on.

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Starting the working day surrounded by home comforts is a dream for many, but to run a franchise successfully there are many elements to take into consideration.

Working from home has blossomed since the 1970s, when it was seen as a low key affair that conjured up images of addressing endless streams of envelopes, delivering a ton of catalogues and planning parties – a little business run on the side to supplement a family’s income.

Today running a business from home has become widely accepted by the business community as a legitimate location of operations.

Read more.

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Consistent with its strategy of expansion through franchising, Jamba Juice Company, a subsidiary of Jamba Inc., recently announced the opening of a new franchised store in California. This new store marked the company’s fourth opening with franchise company, Bright Works Incorporated. John Anderson is the president of this franchise company and a highly experienced franchise operator.

The new Jamba store is located in Westfield Palm Desert Mall – a shopping mall in Palm Desert, a city located in the heart of the Coachella Valley. The mall offers a lot of choices for shoppers and this new store is located in the food court inside the mall and is expected to benefit immensely from its strategic positioning.

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US Restaurants Inc., a franchisee of Burger King Corporation, in cooperation with the Plymouth Township Police Department, is having an all day fundraiser this Friday, Sept. 28 at their Plymouth Township Burger King location on 409 W. Ridge Pike, Conshohocken.

Rita Greene, general manager of the restaurant, reached out to the department after hearing of Officer Fox’s tragic death.

“We felt we had to do something”, said Greene. “And this was the best way we thought that could help the family.”

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