franchise
Published September 4th, 2008
Q: I am looking at buying a franchise and the franchisor has painted a very rosy picture. What is the other side of the story?
Tom
A: First let me say that as a general rule, I like franchising as a business concept (and write for the Franchise Handbook.) The pros of buying a franchise are self-evident:
There should be less risk - ideally, the business model has been vetted and there is a successful system in place that you can follow.
There is support - a great franchisor will help you all along the way. As Ray Kroc, the... Read more
Tags: buying a franchise, expert advice, franchise, MrAllBiz.com, small business expert, Steve Strauss
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Published March 13th, 2008
The U.S. Department of Consumer Affairs reports that less than 5 percent of all franchises end up failing, as opposed to non-franchise companies, whose failure rate is 30 percent. Those seem like great odds until you’re a franchise owner in that 5 percent, left with an empty bank account and a worthless business. If that happens, you’ll be left wondering if there’s anything that can be done. And the answer is, maybe.
There have been many owners of failed franchises who have sued their franchiser - and won. The reason for their store or restaurant’s demise may have been because... Read more
Tags: advice, american franchise association, buying a franchise, Carrie Hinkel, franchise, small business franchise act of 1999, Starting a Business, startups, tips
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Published January 17th, 2008
The popularity of dollar/99 cent stores has risen dramatically in the past few years, and there are several reasons for this. First, big box stores like Wal-Mart have successfully closed many local retail stores, due to the local store’s inability to compete over price and selection. This has left a gap to be filled by dollar stores - satisfying consumer’s needs to quickly buy convenience items without having to drive across town to the big box store, find a parking space and navigate their way through a warehouse-sized store. Second, name brand companies like General Mills, Proctor & Gamble and... Read more
Tags: Carrie Hinkel, convenience store, dollar store, franchise, ownadollarstore.com, Starting a Business, startups
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Published December 24th, 2007
When you want to go into business for yourself, but aren’t quite sure you want to start from scratch and you can’t find an existing business that fits what you’re looking for, you might consider franchise ownership.
Purchasing a franchise involves paying an initial fee and then a percentage of profits to a franchisor. In return for your investment, you gain the use of the company’s trademark, ongoing support from the franchisor and the use the franchisor’s systems and methods of doing business including logistics, purchasing power, IT systems, and more.
Buying a franchise has several advantages over starting a... Read more
Tags: buying a franchise, entrepreneur, franchise, FTC, Rebecca Button, Starting a Business, startups
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Published October 18th, 2007
Q: I have never owned a business before and am looking at buying a franchise. It is a well-known outfit, so I like that and think I can make a lot of money, but what should I be on the lookout for as I do my due diligence?
Dave
A: First let me say that as a general rule, I really like franchising a lot as a business model, especially for new entrepreneurs. The way it is supposed to work is that an entrepreneur creates a successful business, irons out the kinks, is able to turn it into a franchise... Read more
Tags: advice, entrepreneur, franchise, MrAllBiz.com, small business expert, Starting a Business, startups, Steve Strauss, tips
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Published September 25th, 2007
A lot of people consider getting into the franchise business because it allows you to operate a business by simply paying a franchise fee and taking on another arm of an already established brand name and product. You are given the right to use the franchisor’s name, as well as help in running and setting up the business.
Franchises can be a good investment if you want to start your own business without as big a risk initially because you are setting up an already established business. Although start-up costs and fees can go up to hundreds of thousands of... Read more
Tags: advice, entrepreneur, franchise, Leeia Ladipoh, Starting a Business, startups, tips
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