Tips for Researching a Franchise BusinessWritten by June Campbell
A franchise operation can be an excellent investment for people dreaming of self-employment. Franchise opportunities fall into three basic categories: Product, Service and Wholesale Distribution. The franchise you select must be one that will maintain your interest through years to come. Not even a lucrative franchise opportunity will work for you if you find business dull or boring. However, like all business opportunities, there are risks involved. You'll minimize risks by doing your homework before you sign on dotted line.1. Conduct Preliminary Research Ask franchise company to send you brochures, pamphlets and videos, if possible. Then, locate nearest two or three franchise operations and visit each. Talk with franchise holder, employees and customers to get their reaction to product or service. Hint: Ask franchisee if he or she would purchase same franchise again. 2. Study Company Documents US franchisors are required by law to provide you with documents offering full disclosure of franchise opportunity. (Laws may differ in other countries). These documents could be called Offering Prospectus (OP), Disclosure Document or Franchise Offering Circular. These papers provide you with a wide range of information about franchisor. Look for a company that is three years old or more. Senior executives should have positive business experience in franchise field and have a good record regarding previous litigation and bankruptcies. 3. Consult with Business Professionals Take OP, Disclosure Document, and franchise contract to an accountant, attorney, management consultant or other business professional for analyses of financial and legal aspects. 4. Learn Franchisor's Policy Regarding Territory Protection You'll want to know franchisor's policy regarding number of franchise unit's they'll establish within a geographic area. Do you have a protected territory? You don't want to discover that company has established a similar unit across street from your operation. Additionally, some franchisors also open and operate company owned stores as well as franchise outlets. What's their policy regarding company stores? 5. What Fees Must You Pay? Expect to pay an initial franchise fee (often non-refundable), as well as fees for startup expenses, inventory, licensing, insurance, and a "grand opening fee" for initial promotion. Anticipate annual expenses such as royalty fees and marketing fees. Find out what portion of your advertising fees goes to your own outlet and what portion goes to national advertising. Hint: Ask about hidden fees.
| | THE ONE PERCENT SOLUTION!Written by Philip E. Humbert
Many years ago, someone told me that key to success is not doing something big or spectacular, but doing little things extraordinarily well. When we think of Olympic athletes, it's tempting to pretend that they are somehow "different". We tell ourselves they were born with incredible strength or unusual talent, or had training that we could never get for ourselves. We look at Michael Jordon in sports, or we compare ourselves to Barbra Streisand as an entertainer, and say, "I could never do that." While there is truth in acknowledging their incredible talent, there is also a lie in pretending that because we don't have their genetic gifts, we are somehow excused from necessity of doing our best. That is simply not true! The vast majority of highly successful people, in any area of life, are simply those who worked a bit harder, stayed a bit longer, and did a bit more. The highest paid people in any industry earn many times more than average income. Is that because they are 100 times smarter? Are they 50 times more ambitious? Do they work 20 times harder or do they have more hours in a day? Of course not!
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