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Buying Your First Franchise
by Trevor Marshall
Published on this site: February 6th, 2006 - See
more articles from this month
A lot of aspiring entrepreneurs have saved enough money and
are still in search of some guidance when it comes to entering
the small business arena. Always be on the lookout for buying
a franchise opportunity that is not seasonal but can still
rake in the cash for you.
- Budget Everything
First and foremost, you need to have a budget. Having a
set budget will enable you to think of how much money you
can actually spend on your franchise. It is best to be in
touch with reality here since buying a franchise, as compared
to just starting a small business from scratch, is not only
risky but comparatively costly as well. So you need to be
fully aware of what you are putting your money into and
if it is truly worth all that trouble.
- Choose Wisely
This brings us to the next highly important thing that you
need to consider when buying a franchise: the countless
franchise opportunities out there. Keep in mind that the
success rate of buying a franchise is lot higher than just
a starting small business. Look for franchise opportunities
that are considered hot.
Still you have to think twice (or maybe a million times)
before buying a franchise. Not only the ones that are deemed
as hot but for any franchise. One day their products might
be selling like hotcakes and are considered as a hot commodity
but what about after the season or at the end of the year?
Are they still hot? Are they still selling? Some franchise
opportunities unfortunately fall flat on their faces after they have over
saturated the market with their products.
- Understand the Business
When it comes to finally committing to buying a franchise,
the franchisee must fully know and understand the policies
of the franchise opportunity that he or she is actually
buying. The contract for example, should always be understood
well by the franchisee before signing it. Mere coaxing from
the company and just mere verbal word play are something
that companies use on new entrepreneurs just to make them
see it their way which is why when it comes to buying a
franchise, entrepreneurs must always proceed with caution.
A good franchise opportunity should be able to provide the
franchisee with various benefits and services that the franchisee
is entitled to from the moment that he or she signs on to
buying a franchise. Such benefits include the franchisor
providing the training, marketing, and support needs of
the franchisee. Franchisors that do not comply with such benefits
should be seen as dubious since they are just merely trying
to make some extra profits from the franchisee and are not
exactly interested in helping him or herself out in this
small business venture.
Before signing the bottom line, consider the following:
- Proper Training
Most franchisors will actually offer to help your small
business to get some added leverage by helping you first
establish, run and as well as expand you small business.
Buying a franchise clearly has its perks since newly started
entrepreneurs will have the opportunity to learn the ropes
from established businesses.
- Financing
Contrary to popular belief that you must have a lot of money
for you to be able o acquire the franchise of your dreams,
a lot of franchisors actually provide their franchisees
with some highly flexible financing options.
- Proven Products and Methods
When it comes to buying a franchise, it is highly important
that you take not of the ones that are really in-demand
and are not seasonal. When it comes to having a franchise
as compared to starting your own business out of nothing,
you will actually have the confidence at heart that your
products and services will sell because it already has a
proven market.
- The Cons
- Fees
Franchisees always face this problem when it comes to buying
a franchise. Since franchises are highly expensive, there
are usually ongoing payment that the franchisee must pay
to the franchisor as a result of the royalty fees as well
as the debt service that one must pay for when it comes
to buying a franchise.
- Loss of independence
For those who are buying a franchise, you need to be reminded
that since you did not come up with this business idea all
by yourself, you must always adhere to you franchisors strict
rules and regulations when it comes to the upkeep of your
franchise. You should be able to adhere to the company’s
good image and quality of products and services.
Trevor Marshall For more great franchise related articles
and resources check out http://www.weknowfranchises.com
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