Franchise News

Franchise Information for Successful Business Ownership

Straightforward franchise advice: Pondering whether or not to purchase a franchise? Well, Why not? Many folks start their own business and succeed. Many folks out there wish to start their own business; however, they are hesitant to do so. The main reason why folks are so reluctant to start their own business is that they don’t know where to begin and don’t have anyone who can offer them well franchise advice; they simply lack the management skills to start their own business. Secondly, they don’t want to take the unnecessary risks that are involved with starting a new business, as statistics shows that you are highly likely to go into loss, during your first startup years. Most folks already know these risks, and thus stay away from taking such huge risks. For people who are confident enough to say that their business is bound to succeed because they have a revolutionary idea, something out of the box per say. It’s highly likely that it would back fire for them. However, thanks to franchises, anyone investing in them is likely to succeed, provided they have the startup capital to purchase a franchise business. Investing in Franchise businesses – playing it smart Another good franchise advice is that Franchises vary in sizes and capacities. One can easily become overwhelmed by the options that are out there for franchise businesses. Several websites are out there that offer variety of franchise options. Franchise business can vary from low skilled professionals to highly skilled professionals. Moreover, one can invest with only a few thousand dollars to hundreds of thousands of dollars. Benefits and pitfalls of franchise businesses • No brand marketing, which means your brand, is already well known and people will associate your brand with quality and trust. • No need to set rules and procedures, that’s already there for you to work with. • No need to invest in infrastructure setup, it’s already there for you. • No need for a business plan, the franchiser will provide you with the training and information you need to run your business successfully. Cons of owning a franchise: You are not authorized to add additional products to existing product line offered by the franchisor. For example if you own a burger franchise, you are only bound to sell the franchisors product, as per franchisor specs. If you try to sell your own customized burger, you’ll be breaching the franchisors contract. As per your contract with the franchisor and look out for franchise advice that could help you out. This way, you are able to know that you are bound to pay a royalty fee, which can range from 7 to 10 percent of your turnover, therefore you could be turning over more, but making less profit.