Get Into Business With A Franchise - Make Sure It's a Good One...Thank you for coming to this page covering franchise selection. We will try to give some background on questions to clear. Before we start perhaps you would like to also consider that it is always good policy when researching a topic to select an authoritive book. We have discovered that there is a book on franchising in 'The Dummies Series'- nothing implied. You can buy your copy online at Amazon. Now for some of our thoughts: Before putting any money into any business venture, you should investigate everything completely. We've prepared a list of questions you should be asking, and should get satisfactory answers to before investing. However first and foremost do not forget the need to create a business plan. You can down load plans for 400 business types at this link so should be able to cover most businesses you may consider. The key questions for your consideration are; 1. Has your lawyer studied the contract, discussed it completely with you, and do you both approve it without reservations? 2. Does the project require you to take any steps which are either illegal or even border on illegal, or are otherwise questionable or unwise in your county, city or country? 3. Do you have an exclusive territory for the length of the franchise period, or can the franchisor establish additional businesses in your territory? 4. Is this franchisor connected in any way with any other company handling similar products or services? 5. If you answered yes to the above question, what is your protection against the second company? 6. Under what circumstances can you end the contract, and at what cost to you? 7. If you sell your business, will you be compensated for your goodwill or will it be lost to you? 8. How many years has the firm offering you the franchise been in operation? 9. Does the company offering you this opportunity have a reputation for honesty and fair dealing among its franchisees? 10. Has the franchisor shown you any certified figures indicating exact net profits of one or more of its members, and have you personally checked the figures with these people? 11. As part of it's presentation to you does the firm give financial projections for the business. If yes you must check them through your business plan. If no you should carefully create your own detailed business plan which will form the basis of discussions with the franchisor. Remember he is selling to you. (no matter how keen you may be - keep your business head on). 12. Will the franchisor assist you with: a) a management training programme; b) an employee training programme; c) a public relations and advertising programme; d) capital; e) credit; f) merchandising ideas. 13. If needed, will the franchisor assist you in finding a suitable location? 14. Is the franchising firm adequately financed so that it can carry out its stated plans? 15. Does the franchisor have experienced management training? 16. Exactly what can the franchisor do for you that you cannot do for yourself? 17. Has the franchisor investigated you carefully enough to assure itself that you can successfully operate at a profit to both of you? 18. Does your area have a law regulating the sale of franchises, and has the franchisor complied with that law to your satisfaction? 19. How much equity capital will you need to purchase the business and operate it until your income equals your expenses? You will need your comprehensive business plan to make sure that the proposition is sound and you can expect a return from your investment. If you can get the answers to each of these questions, and those answers satisfy you and your fully costed detailed business plan is sound, then you're probably thinking of buying a pretty good potential business. However, if you're in doubt about any of these points or any of the business concepts, be sure to check them out and know the answers for certain before you invest or sign anything. Buying a franchise can give you a measure of security, and in some cases, surefire profits. Business surveys show that fewer than 20 per cent of all new franchised businesses fail. This is in comparison to a 60 to 80 per cent failure rate for all new businesses started each year. Information regarding specific business ideas can be found in various related directories, which are generally available at the local library. Often there will be a notice posted in some retail outlets themselves. If you can afford the entry into this business, statistics are on your side. You are now armed with some caution and stop and go signs! However, starting with a franchise need not be expensive as the number one franchise opportunity in the UK and Ireland is priced for start up at less than £200.00! Apply now for your free information pack Franchise UK Opportunity
Good luck and every success.
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