Franchising Basics

Franchising Basics

Franchising Basics for Businesses Wanting to Setup a Franchise Operation

Thinking About Franchising? Consider The Basics.

It is said that almost 1 in 5 franchises can succeed, whereas only 1 in 10 other small businesses end up surviving. Imagine how important it is, therefore, to choose the right one. Thousands of franchise opportunities exist. We review franchise deals constantly and have developed a keen sense of what makes a good one. We are happy to share some of our experience with you right here.

Aspiring Franchisees Should Avoid The New Franchise.

You may be excited by the idea of a 'ground floor' or new franchise. Avoid these. The primary value a franchisor brings to you is a well-known trademark which brings in lots of business without you having to spend years building up your own reputation. Next, they bring years of know-how and can show you precisely how to handle anything and everything relating to the business. Finally, they have a track record of success, which reduces your risk of going out of business. Franchises less than four years old usually have none of these benefits. In fact, you usually wind up having to teach them while you build up their name recognition from zero, paying royalties for the privilege. Avoid this common predicament and your odds of franchise success will improve dramatically.

Aspiring Franchisor? Don't Offer Franchises Until You Have At Least:

Your Life Is At Risk.

Unlike many other contracts and agreements, a Franchise Agreement puts not only your money at risk, but often a significant percentage of your remaining life expectancy. Franchises can typically run for periods of 10 and even 15 years, which can represent much or all of a prospective franchisee's remaining working career. So keep in mind, you are not simply putting your money at risk when entering into a franchise agreement. You are risking a real chunk of your irreplaceable time.

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