Posted in Buying a franchise on June 17, 2011
This franchise guide explains the benefits of investing in a good franchise business. Franchises provide you with the opportunity to start up your own business with a proven business model, the support of an organisation that specialises in helping its franchisees to be successful, and sometimes the power of a brand name that people know and trust.
With so many online franchise directories and franchise websites, it can be a minefield trying to find a reliable source of information. At The Franchise Opportunity Guru you’ve found a unique website. This site makes no profit when franchises are sold and has no allegiance with any franchisor. It is here as a uniquely unbiased source of quality franchise information for people who are interested in franchises. Without further ado, here’s a guide to franchising…
The best franchise oppportunities are a bit like a turnkey business – you literally get it out of the box and follow the instructions (plus lots of specialist training, followed with the hard work to push through the early stages) to make the business turn a healthy profit for you. Although be warned, for every great franchise, there are a bunch of bad ones just trading off the good name that franchising has.
Franchising can be an ideal way for you to get into business if you’re a bit nervous about starting up without any support in place. For example, coming up with your own business idea and making it work can be a lot more hit and miss than simply investing in a franchise business that you know is already successful. All you’ll have to do is add the effort and follow the system to generate your own profitable business.
Before you go any further, you need to ask yourself what kind of business and ambitions you have. For example, some franchises are ideal if you want to just work for yourself rather than building a business that works for you. Some people enjoy the freedom of having a hands-on business where you do the work yourself, but you’re the boss and set your own working hours and don’t have to “answer to the man”.
On the other hand, if you want to have a business that’s going to keep growing whether you’re there or not, and that will be something that you can build and sell in future years for a profit, a franchise that needs you personally to do a job will not work. In fact, if you’re needed to keep the business running, your business will have a far lower value than one that can run without you.
You’ll also want to ask your franchisor, before you buy, whether or not you can easily sell the franchise on to another investor. You see, the big return is normally made from business when you sell, rather than when you operate the business. That’s when you recover your investment in money and time to build the business. If the franchisor can unreasonably limit your ability to sell the franchise on, you can lose this substantial amount of profit that’s come directly from your blood, sweat and tears.
Be warned, though, about the “franchise vampires”. These are the rogue operators who look reputable and may have been around for many years. Make no mistake though, that these blood-suckers will happily take your money while appearing to be a great franchise opportunity.
They base much of their sales pitch on the myths of franchising (these are explained in the free guide, The 7 Myths Of Franchising, you can get for free from signing up at the top right of this page). They’ll suck you dry of cash and keep coming back for more – even your house.