Business Management : What Is a Franchise Fee?
A franchise fee is the amount of money a person, organization or company pays to the franchise holder to support the knowledge of the system. Find out how franchise fees provide opportunities to buy into this system withhelp from a management teacher in this free video on business management and franchises. Expert: Mark Clifton Bio: Mark Clifton has a degree in marketing management from Oxford Brookes University, and has successfully completed the CELTA teacher training program of Cambridge University. Filmmaker: Paul Volniansky
Topics: Franchises | 9 Comments »
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Franchise Opportunity – Questions and Answers
Franchise Opportunity – Frequently Asked Questions
In the Franchise Industry the most common questions we get asked by people looking for a franchise opportunity are covered in this list.
Question: What is franchising?
Answer: Franchising is where you buy the rights to a business concept, trademarks & know how. In return you pay a franchise fee and a percentage of your profits.
Question: What is a franchise?
Answer: A franchise is, in its simplest terms, an agreement between the franchisor and the franchisee, whereby the franchisee has the rights to use the logos and trademarks of the franchisor and the ability to market the franchisors products. Both parties commit to a legal agreement which protects both their interests. The franchisee usually pays an initial franchise fee and ongoing royalty payments.
Question: Is it better to buy a franchise opportunity or start my own business?
Answer: Based on the surveys carried out by the US Department of Commerce & NatWest/BFA, the majority of franchisees are still trading profitably after five years. Everyone knows that the majority of people who start out in business on their own, I am sad to say, end up failing within the first three years. When you buy a franchise business, in return for a franchise fee, you receive training and ongoing support. You also benefit from the knowledge that the franchisor has picked up over many years.
Question: How much does a franchise business cost?
Answer: There are no fixed prices for a franchise opportunity. Depending on your budget there are franchises to suit most people ranging from only a few thousand, to over a million.
Question: What’s the first step to buying a franchiser?
Answer: Do a search on the internet for the following: “franchise”, “business franchise” & “franchise opportunity”. You will find a wealth of material on the internet. You can also buy magazines that specialise in franchises and of course, you should attend franchise exhibitions where you can meet the franchisors or their agents and ask questions. At the exhibitions, in some cases you will also be able to touch and feel the products that form the cornerstone of the franchise!
Question: How do I raise the funds required to buy the franchise?
Answer: Most banks have special units set up to help potential franchisees. In many cases the franchisor has done the hard work for you and arranged special terms with lending institutions!
Question: Which franchise is right for me?
Answer: The best franchise for you is not necessarily the business that makes the most money! Buy a franchise which suits your lifestyle and is interesting to you. If you like the products that you are marketing, then you are much more likely to enjoy your work!
Question: Can I sell my business when I want to move on?
Answer: If your franchise business is trading profitably, then you should be able to sell it like any other business. Your franchise agreement will go into detail the processes that are involved in selling the business. Unfortunately, if your business is not making a profit, then it will be difficult to find a buyer.
Finally, always take legal advice before signing any franchise agreement. Your lawyer has to ensure that the agreement is fair for both parties. Your accountant will help in evaluating the profit potential of the franchise opportunity.By: Naz Daud -
Article Directory: http://www.articledashboard.com
Naz Daud is the founder of CityLocal Business Franchise Opportunity Business Franchises and UK Business Directory Business Franchise Opportunity
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Business Management: A Franchise Model
What is a franchise model?
A franchise model provides information on the steps and methods for how a business engages and how it works with customers.
Find how franchise models must be followed in agreement with franchise holders with help from a management teacher in this free video on business management and franchises.
Expert: Mark Clifton Bio: Mark Clifton has an degree in marketing management from Oxford Brookes University, and has successfully completed the CELTA teacher training program of Cambridge University.
Filmmaker: Paul Volniansky
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Be a Franchise Owner – Owning a Franchise Information
Owning A Franchise May Be Hard Work, But There Are Considerable Benefits To Being Part Of An Established Business.
At a glance, it seems that our community is working harder and longer than ever. As the national economy is slowing and unemployment is predicted to rise accordingly, it seems only natural that workers put their noses to the grindstone in an attempt to move up the ladder, or even just to make ends meet.
Whilst this is certainly the case for a majority of the population, for the remaining group there can be noticed a significant shift in their intention and chosen direction when it comes to making decisions about their working life. More and more people, females in particular, are choosing flexibility and family commitments over climbing the corporate ladder and earning the big bucks.
Currently, one of the most common options that people are turning to as a way to have more control over when, where and how much they work, is franchising. Once only associated with large multi-national businesses such as McDonalds and Starbucks, the franchising sector in Australia continues to grow steadily and can be anything from a cleaning business, to mortgage brokers and supermarkets. This growth is attributed to two major factors, one being that a greater number of successful business owners are looking to expand their empire and do so by creating and selling franchises. The second reason compliments the first, as people chose to prioritise what is important to them and what best suits their desired lifestyle, they are consequently choosing to purchase these newly created franchises.
Owning a franchise allows business owners to have control over a range of aspects that would be unlikely to be up for negotiation in a regularly employed position. By owning a franchise, business owners are able to set their own work hours, perhaps molding it around picking up the kids from school, playing tennis with friends at 11am on a Wednesday or any other commitments that may exist. They are able to work from home or a selected convenient location, as well as having the satisfaction of reaping the direct benefits of their hard work.
Franchising contributes large amounts to Australia’s economic landscape through not only creating a wealth of new business owners and providing them with a platform in which to learn and grow as business people and as human beings, but also provides job opportunities and valuable products and services to the community.
By purchasing a franchise, the franchisee is provided with a support framework from the franchisor. This can be anywhere from regular training, to marketing support and networking opportunities, all of which directly benefit the franchisee’s business as well as contributing towards the good name and future success of the company as a whole.
A recent Potential Franchisee Survey, conducted by Mortgage Choice, shows that for those considering purchasing a franchise, the most appealing factors were all related to the fact that what they are buying into is already established. In most cases, there is an established recognition of the business brand within the community. Purchasing a franchise also ensures that there is an established business model along with other necessary tools such as suppliers and access to support networks via the franchisor and other franchisees. Potential franchisees like the fact that there is a better likelihood of success when compared to starting a small business from scratch. It also opens the door for increased exposure through advertising and media as the combined resources of a franchise can access much more that a single small business owner.
Obviously, purchasing a franchise is not necessarily the right fit for everyone, however many of those that have made the choice would swear that it has made a drastic change in their lives and they will never look back. As with every important business decision it is strongly recommended that you seek professional independent advice before taking any action, as failure to do so could be damaging down the track.
At The Quinn Group the team of legal and accounting professionals are able to provide you with comprehensive advice regarding all aspects of buying and selling businesses and franchises. So, if you are looking to buy a franchise or would like to investigate if franchising is a viable option for you, call us on 1300 QUINNS or click here to submit an online enquiry, and one of our team will contact you to further discuss your specific situation.
By: Michael Quinn
Article Directory: http://www.articledashboard.com
The Quinn Group is an integrated, accounting, legal, and financial planning practice offering expert advice to help you achieve your business and personal goals. With more than 15 years’ professional experience, we are committed to building long-lasting relationships with our clients by providing superior service in a timely and cost-effective manner. For more free advice please visit Tax Lawyers.
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6 Reasons to Start a Franchise Business
Why a Franchise? Because it can be the best way to start making money online which is not easy but neither something extremely complicated.
There are few basics outlined below to answer why to use a franchise to build a profitable business online.
So, the point here is, investing the minimum and earning the maximum, and to begin, here there are 6 straight to the point reasons on why to choose a franchise business.
- EASE – Starting a business with a franchise it’s easier than it would be with any other kind of business.
- SET UP – System is already in place.
- COST – Investment is lower and less risky compared to setting up your own business.
- NO HYPE – No “get rich quick”, no “make money fast” schemes in a franchise system so you know you’re building a profitable long term business.
- SECURITY – A franchise provides a safe business opportunity and a secure path to business ownership and financial independence so it offers a great opportunity for people to enjoy the benefits of self-employment.
- FREEDOM – Franchising is a way of joining a successful organization but keeping, at the same time, the liberty that owning your own business gives.
To begin and not spending a lot of money trying this and that, buying this and that, you can start with a cheap franchise business. Why? Because, despite there are many other business models, you’ll start earning 100% of the profits and because you are starting you need as much as you can earn, right?
Hoping this helps by now, you can take a look at a very affordable franchise to begin.
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What are the cons of franchising out a successful business?
I want to venture into franchising. I had a prospect, a car accessories chain.
When I inquired, I was told that all their outlets were company-owned and that they don’t franchise out their business. I don’t understand why. Will a particular company spend extra if they venture into franchising?
Any thoughts?
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Franchise!?
Can I own more than one type of franchise at a time?
For example, after getting my bachelors in business… can i open a dippin dots at 22 in vegas, then when i’m 23 open a Auntie Anne’s shop? then when i’m 24 open a restaurant? and manage them all at the same time?
Thanks for your help!
Also, if there’s already an Auntie Anne’s shop in the fashion show mall in Vegas, can i buy the franchise from the current owner even if their contract isn’t over yet?
Also, anyone know about how much profit or revenue each of these small shops make? estimates?
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Franchise Buying Tips
Franchise Buying Tips. What Is A Franchise Fee?
Buying a franchise business is a venture that can be very rewarding and profitable. One of the key factors you much understand is, what is a franchise fee and how does this effect your profitability.
Each Franchise is different with different ways of calculating the total franchise fee. Franchise fees are made up of typically and initial lump sum and an ongoing maintenance fee that is paid weekly to the franchisor. In addition, you will have local and national co-op fees that are used to advertise outside the four walls as well as within the four walls of your business.
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Writing a Business Plan – Bloomberg: Your Money
Do you have a business plan?
Many people have unique ideas about businesses they want to start. But before you do anything, you need to have a detailed business plan in place. It may be your blueprint for success.
Topics: Business | 5 Comments »
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Master of Business Card Throwing
Just for fun:
Watch this video where a guy plays with a business card. The whole thing was performed for the new Samsung Digital Camcorder H205 launch. Absolutely amazing!!!
Topics: Business | 3 Comments »