| In these still uncertain times, you want to take as little | | | | royalty fees. It's similar to the cell phone business |
| risk as possible. For many wanna-be entrepreneurs, | | | | model. You get a top-notch cell phone at well below its |
| franchising is a good bet because there are many | | | | retail value if you sign a one-year or two-year contract |
| advantages to becoming a franchisee. | | | | with the cell phone provider who will be collecting a |
| Caveat: If you are the type of person who insists on | | | | steady flow of monthly revenue from you. |
| maintaining total independence in every aspect of your | | | | 4. Your chance of business success increases |
| business, franchising is very likely not for you. Why? | | | | dramatically as a franchisee. During the Great |
| Because, as a franchisee, you can become your own | | | | Recession beginning in 2007, consumer spending |
| boss - Sort of. "Sort of" means that once you sign a | | | | decreased dramatically. During uncertain times, |
| franchise agreement, you must adhere to the | | | | consumers will purchase from a recognizable name; |
| franchisor's mandatory franchisee rules associated | | | | they want the comfort of doing business with a brand |
| with their business model - rules, regulations, systems | | | | they know and trust. In a recession, a franchise |
| and procedures. Additionally, you will be paying the | | | | business has a greater chance of staying in business |
| franchisor an ongoing royalty on sales as long as you | | | | than an independent business. |
| remain a franchisee. | | | | Additionally, you'll have the continuous support of the |
| If either of these non-negotiable factors don't sit well | | | | franchisor during difficult economic times. They have |
| with you, franchising is probably not a viable option for | | | | had experience in both boom and bust economies; |
| you. | | | | they know how to survive and will support you in both |
| Here are four top reasons you should seriously | | | | good times and bad. They have a strong incentive in |
| consider franchising - now that you've decided it's time | | | | ensuring your longevity - collecting monthly franchise |
| to stop working for others and finally become your | | | | (royalty) fees. |
| own boss. | | | | O.K., now that you're interested in looking into the |
| 1. Successful franchisors have a proven business | | | | Franchising Option to start your own business, here's |
| model. Think of a franchise as a turn-key business. | | | | the most critical first step. Only seriously consider a |
| Over time, the franchisor has learned from successes | | | | business you can get thoroughly excited about. Don't |
| and setbacks and taken all the risks that have led to a | | | | select a business because the business category is |
| stronger, more predictable business model. "Best | | | | forecast for excellent growth. If you're not excited |
| practices" of the particular industry are in place, along | | | | about the product/service or energized about going to |
| with effective marketing strategies, site selection, | | | | work every day, your chances for success are |
| preferred vendor list, inventory systems, customized | | | | greatly diminished. |
| software - to name just a few. | | | | To get you started, here are 15 Franchise Categories* |
| 2. Franchisors provide financing assistance either | | | | for you to consider: |
| directly or indirectly. Business lending may have | | | | - Automotive |
| loosened up - but only slightly. If you need financial help | | | | - Business Services |
| with the franchise fee and start-up costs, many | | | | - Children's Businesses |
| franchisors either offer in-house financing or have | | | | - Financial Services |
| long-standing relationships with third-party lenders. Also, | | | | - Food |
| the Small Business Association (SBA) looks upon | | | | - Home Improvement |
| franchise loans more favorably than an independent | | | | - Hotels & Motels |
| business start-up. | | | | - Maintenance |
| 3. As a franchisee, you'll get ongoing support from the | | | | - Personal Care |
| franchisor and fellow franchisees. Support begins day | | | | - Pet Businesses |
| one after signing the franchise agreement. As a | | | | - Recreation |
| franchisee, you'll be well trained in all aspects of running | | | | - Retail |
| a successful unit - marketing, accounting, operations, | | | | - Service |
| human resources...and more. Depending on the | | | | - Tech |
| franchisor, training programs are typically required for | | | | - Training |
| new franchisees and can run from a week to four | | | | Final Note: Below are two excellent franchising |
| weeks. | | | | research tips: |
| Marketing is arguably the most important component | | | | Check out the SBA's Franchise Registry Franchises |
| of starting a new business. If no one knows about | | | | on this list have been pre-approved by the Small |
| your business, how can you possibly be successful. | | | | Business Association, which makes the loan application |
| That's why most franchisors are deeply committed to | | | | process smoother. |
| national and regional advertising programs to keep their | | | | An excellent site to conduct in-depth research is You |
| brand "top of mind" with your potential customers. | | | | can search for franchise opportunities by industry, |
| Remember, the franchisor has a very strong incentive | | | | region and level of investment. |
| in your success and continued growth as a franchisee. | | | | *The source for the list of 15 Categories is from the |
| Franchisors make their money, not from the initial | | | | web site of Entrepreneur magazine. |
| start-up fee, but from collecting a steady flow of | | | | |