In the course of a person’s life, at least once or twice, the thought of owning his own activity has crossed their minds. The idea of independence and not relying on someone else to control the salary is the dream of many.
So, what is holding back the great majority from the realization of that dream, Well, for starters, most of us do not have a new product or service that we can offer to buyers. And if we had something useful to offer, many of us doubt that we have the ability to run a full-service business because we have no experience or training.
Is there an answer to this dilemma, Yes, there is and it comes with the purchase of what is known as a franchise business. & Rdquo;
What is a franchise business, A franchise business is like owning a small portion of a larger company. In fact, it could be said that most of the big companies in our world today are franchised businesses (although most are not) when you consider how many small businesses it takes to understand the big business.
A franchise business offers you the advantage of sharing the skills of a well-established company and has experienced the ups and downs of taking off the business. With a franchise business you get mad and get the direction you need to succeed.
As a franchise owner, you can keep most of your profits and pay a “royalty fee” to the Parent, “how much you pay for what could be called a copyright.” This commission gives you the right to ride. literally the tails coat the reputation of the parent company, regarding its product and / or service.
The Parent Company (the franchisor) is responsible for providing the marketing tools to the new franchise owner (franchisees) and grants the franchisee the right to market, sell and distribute the franchisor’s products and / or services. They will offer support, training, organizational help and managerial competence.
Depending on the franchise you are interested in buying, most of the product’s materials will have to be purchased by the parent company (eg McDonalds), while other start-up costs and possibly the equipment will have to be purchased on their own, as well as the ‘building you will use.
What are some of the things you should think about, Before starting any adventure, you have to do your research and think about what your skills and likes are. Buying a franchise is a long-term commitment to money, time and a great deal of energy. It is said that when you enter into business on your own, you will work harder than you have ever done before. & Rdquo;
It is important to do research on every franchise you are considering, talk to other franchise owners, talk to competitors, contact a franchise broker and / or a franchise consultant. Do not leave any stone unturned before committing.
Some parent companies require large startup fees and annual commissions, along with the royalties that must be shared. This is why it is absolutely necessary for you to do your homework. Make sure which franchise you choose, adapt your lifestyle and find appropriate and responsible help to help you manage the business.
Commitment is another great consideration. The average contract for a franchise may be shorter than 10 years, but usually requires a commitment of 15 to 20 years. These contracts are extremely difficult to overcome and, in case of need, there is a large breach of contractual fees. Searching and searching for the right franchise are important, but understanding the commitment you need to make is even more important.
In many situations it is advisable to hire a franchise broker. What does a franchise broker do, More or less like a real estate agent, but they take care of all the paperwork necessary to put the deal together instead of selling you a home.
A franchise broker will help you by providing the necessary documents; help with the creation of contracts, help with communication between the parties and provide assistance during the entire franchise procedure.
There are also franchise consultants. These people will help you find a franchise that best suits your individual needs, will help you understand all the implicit legal implications in the documents presented and will help you understand all the requests that need to be met.
The advantage of paying for this advice is that the consultant can reduce the personal time you may have to spend searching for the best franchise for you and getting you into the business faster.
The important thing to consider if you hire a franchise broker or a consultant is that they are advising you as an outsider and you need to consider your needs and needs and make your own decisions.
A franchising company should also provide a list of current and previous deductibles. This list is called the uniform circular offer in franchising, lists the names and phone numbers of the people who own the franchise. It’s up to you to start calling and asking questions, some will talk to you and answer questions and some will not, but you can get a great insight into the franchise business by just talking to the owners.
Some of the questions you should ask are:
* How long have you been in business,
* Is your company growing as planned,
* Has the franchiser provided adequate training and been helpful,
* Have there been any hidden charges,
* Did the franchiser respond quickly to your needs and questions,
* Were there any conflicts involved and were they solved easily,
* Tell me about a normal business day.
* Would you be involved in this business again,
* What were some of your biggest problems, These questions and many others you can think of will help you get a better idea if the franchise is what you might be able to get.
As in every company there are pros and cons and therefore I have decided to list some that you should consider when you think about buying a franchise,
* You must follow the rules and regulations established by the franchise. You will be limited to trying out your ideas and ways to grow your business.
* You have to pay taxes to use the brand name and images for the products or services.
* You must pay royalties on your earnings.
* You must follow the guidelines and respond to the Parent as you would your current boss.
* You are stuck in a place, product, service for a fixed period of time that can be anywhere from 10, 15 to 20 years.
* You must agree not to open another franchise that is in competition with what you own and if you sell, you are not allowed to open a competitor for a certain period of time. Now that you know the disadvantage of the positive side and see what the benefits are.
* There is a great risk reduction by owning a franchise. It is a consolidated business with a name.
* It is much easier to get an active and functioning franchise than a new business idea.
* Earning is easier as you are operating under a consolidated umbrella.
* Your operating materials are cheaper as you buy from a resource that buys wholesale at a much lower price.
* It is easier to obtain financing as it operates with a known product / service.
* You are formed by the parent company and learn the operating procedures.
* Due to the name and the product / service of the Parent Company, recognition is immediate. Owning and running a franchise business is a great way to start your own business. However, it is not a scheme to get rich quickly, most affiliates work very hard to run their business and expect it will take several years to make a good profit.
If you are willing to work hard, follow the rules set by the parent company, do your research before you even start, you can be your boss, have your place in the world and become a successful entrepreneur. It’s just a matter of time.