home-business: Business for sale in columbia sc

What are the Warning Signs Array About a Particular Franchise System?

Description:

An aspect I investigate with my clients is the franchise infringement policies. Sales can be greatly reduced if there are not strict infringement policies in place.

Content:

I often give seminars in my local community. One question that I am asked at every single seminar is "What are some of the most common "warning signs" about a particular franchise system?" My reply is something like: buying a franchise is usually the biggest business decision most entrepreneurs will make, so one has to use a great deal of care. There are many good franchise systems AND bad ones as well.

A good indicator is how the franchise responds to your questions, and in what time frame. If they do not keep appointments, or return calls / emails in a timely manner, you may want to consider whether you really want to invest in that franchise.

I also like to see all the franchise fee’s up front, instead of buried in the fine print. I like percentage royalty fees instead of flat fees. Having a percentage fee will ensure the support from the franchise, because they have a vested interest. The more support they give, the more successful you are, and therefore the more success you experience. If you pay one flat fee per month, they get their fee, whether they help you or not.

An aspect I investigate with my clients is the franchise infringement policies. Sales can be greatly reduced if there are not strict infringement policies in place. An example is Ben & Jerry's Ice Cream. If you can buy it in the grocery store, will people frequent your ice cream store as often?

Lastly, I highly recommend to the client that they do validation calls to current franchisees. Franchisees do not mind these calls, because they have been through the process, and did the same thing. There are a variety of questions I council clients to ask. The most important question I think is “If you had to do it again, would you?” Then the follow up with “Why?”

If you would like more information, there are two great websites: www.masterfranchisingandareadeveloperopportunity.com or www.franmartconnection.com

Author: Katherine Fein

About Author:

I have experienced success in the franchise business as the owner of multiple types of franchise units. I have extensive knowledge of starting, growing, operating, and selling franchises. Like Fran Mart Connection, I believe strongly that a business should facilitate the dreams of its owner.

In 1983 I completed my MBA in small business management and entrepreneurial studies, then purchased her first franchise. I won numerous awards for quality management, and became a key “go to” business owner upon whom the Franchisor depended on to train new franchise owners.

In 1998, I successfully sold all of my franchises. Today I continue to consult in business development and work force training. I am excited about my relationship with Fran Mart Connection as an independent consultant, as it affords me the opportunity to use my knowledge first hand about franchising and business ownership. I have become is an expert in advising and coaching others in decision matrix development, and execution.

Whether I am coaching youth debating, serving on a local political committee, or helping in my community, my passion is to help others achieve their dreams.

I am an avid reader, and active in the local library system volunteer organization. I have three (almost grown) children, one getting ready to go off to college. www.masterfranchisingandareadeveloperopportunity.com

or www.franmartconnection.com

Random related phrase: