Franchising Solicitors Can Help With Common Questions

You may already know the basic bones about franchising and what it could mean for you. If you don’t want to create your own business from scratch, the next best thing could be to buy into a franchise. In fact it can often be a better solution because the framework of the business is already there for you, and it has also been proven to be a success.

However it would be unwise to go ahead and dive into the first franchise you find without getting decent franchising legal advice first. This is available from franchising solicitors – solicitors who have chosen franchising as their particular speciality.

Before you go and find a solicitor to help you, it is a good idea to think about a franchise opportunity so you have some good questions to ask. In some cases it might be better to narrow down your choice of franchises first. This means you will have a good idea of the type of franchise that will suit you, so that you have some concrete questions to ask.

Franchising solicitors can give all kinds of franchising legal advice to budding franchisees. Don’t be afraid to ask any of the questions you are thinking of – the chances are that other people will already have asked them at some point! It’s good to have all your questions answered before you make the final decision on which franchise to opt for. Remember that this is a major decision in many ways – financial as well as business related – and it will affect your life in lots of ways. It makes sense to get as much franchising legal advice as you can before you make such a decision.

It’s worth remembering that specialist franchising solicitors have lots of experience in the field. They will have dealt with many different franchise situations and clients. This means they will likely know the answers to most or all of the questions you want to ask without any research needed at all. While you may be able to find the answers to some of your questions initially without help, you are bound to have some unanswered questions at the end. These will need to be resolved before you go ahead and invest in the franchise you have narrowed your choice down to.

In any event franchising solicitors will be vital to you if you wish to make everything go as smoothly as possible. From answering your initial questions to providing franchising legal advice every step of the way, you can be sure you will arrive at the best possible situation.

What Is Franchising

You are an unhappy office staff, toiling more than ten hours a day, and noticing playing by the rules does not give you what you really wanted and it only made you old and busy.

Going entrepreneur came into your mind. But, with all those news about traditional businesses closing left and right, the terror stop you from taking action.

However, you find in the newspapers, in the TV and in the internet, firms offering franchising. Maybe this is the type of business for you. And you are intrigued. You ask yourself, what is franchising, anyway?

This blog post will tackle the definition of franchising.

Franchising is a practice where an already established allows another entity to use the company’s already successful business solution. The franchisor (the company that provides the business solution) and the franchisee (the entity that uses the business model) enter into a contract to use and capitalize on the companys successful business model and/or its existing brand awareness (most often called Goodwill) for a faster return of investment.

In return, franchisees expend two payments in general. First is a one time investment, called the franchise fee, and the second is royalty fee, which is a recurring expense, for the continuous usage of the business model, advertising and training costs. Royalty is usually 3-10% of gross profit.

Franchising is a interconnected network of mutual business relationships that permits a number of people to share:

– A brand recognition

– A successful method of doing business

– A proven marketing and distribution system

Thats pretty what much franchising is.

One common misconception about franchising is the phrase, “I am buying a franchise”. You are not buying; you are investing onto the business. What you will own are the physical assets that are needed to act upon the franchise, like the building and equipment.

For a business to work as a franchisor, it must have a good track record of being profitable and the business model it employs is easily duplicable. Otherwise, that business is not suitable for franchising.

What’s so great about franchising?

For the franchisor, the company can grow and gain more chains while lessening the traditional risk and liability of doing so. It is also a great way to gain more brand recognition and reputation.

For the franchisee, they are capitalizing in an already proven business model and recognized brand. In fact, a franchising business is 90% proven to be successful. With a success rate like that, who can go wrong?

The Nature of Franchising

Many people have been considering owning and managing their own business. Getting into business is their way of achieving their financial goals and needs. Some are also considering getting into the franchising field.

What is franchising? It is the method of entering a franchise agreement wherein two parties agree to do business with contractual provisions. The setting would be, one party has an idea of the business while the second party will do the business of the other party and pay for its name and reputation.

Many prefer franchising than setting up their own name. That is because they do benefit from it. One benefit it provides is the speed of expansion that one may get once he has entered the franchising world. There is already a brand image since the company will have one common system that will be followed.

Franchisees may also enjoy from discounts on the supplies and raw materials needed in operating the business. Franchise networks buy in bulk, which makes more room for greater discounts among franchisees. Therefore, if the supplies and raw material are cheaper it will be easier to compete with other establishments.

There is also a greater opportunity for a higher profit. The return of investment is higher since the return of revenue will be lower. This means that the percentage of pure profit is higher.

Franchisees that are within the network are able to offer knowledge that has been learned based on their experiences in the field. This is a knowledge that is not learned in business schools. Getting connected with experienced franchisees can also help in expanding the business overseas where there are greater opportunities.

Here are some tips to consider when getting into the franchising business.

1. Franchising as a business is a different kind of business opportunity. It is only recommended that a person ask questions first before entering franchising. It is also advised to attend workshops and seminars before entering it. The person should gather enough information regarding the business he would like to franchise.

2. Seek some advice. When in workshops and seminars, the person should grab the opportunity to seek advice from those who have enough experience with franchising. Seminars are a good way to connect with many franchisees and they can help a lot in giving advices that is based on their experiences.

3. A person that is considering the franchise business should also beware of scams. People who enter this field should be aware of the pitfalls and challenges that may be encountered in the process. There may be many offers for franchise once they have learned that the person is interested in it. However, he should be careful enough in choosing which business to franchise. A research on the stabilty of a certain company is recommended. He can also try a background check of the person offering the deal.

4. The person should be able to learn lessons from past decisions made in this field. Lessons learned might not be from him but from others who have encountered wrong decisions. One major lesson that has been learned by franchisees is that big companies and brand names offer limited and flexible negotiations in the franchise system.

When entering into the franchise business, there will be a lot of opportunities for greater profit. However, one should also be prepared on the challenges that may be encountered. It is important that one is dedicated and prepared in order for the franchise business to be successful.

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Franchising Business Commercial Franchise Lawyers

Franchising Business Commercial Franchise Lawyers – We have all heard of the term, and most of us know people involved in it. After all, it now contributes more than 10 billion to the UK economy, across numerous business sectors. But what is it really all about, and how are some businesses so successful at it, whilst for others it brings disaster?
The concept is fairly simple. In a franchise, an established business (the franchisor) grants someone (the franchisee) the right to trade under the franchisors trade mark or trade name.
Most franchising is actually business format franchising. This means that the franchisor develops a business concept, including a trade name and operating methods, and they train the franchisee in how to run their business using this concept. The franchisee operates his/her own business under the franchisors name and under some fairly tight controls and guidance. These are set out in a franchise agreement, and usually an operations manual as well.
At heart, a franchise agreement is essentially a trade mark licence, with a number of operational instructions and controls placed on the franchisee.
In many cases, the franchisee is given an exclusive territory in which to operate during the term of the franchise agreement.
For franchisors, franchising can therefore be an exceptionally quick route to business growth, with low overheads and low risk. We will look at this in more detail later on in this article. For franchisees, franchising can provide an attractive opportunity to own and operate their own business, but one which has a proven business concept and which provides training and support. Franchising can in some cases also provide a very rare opportunity for genuine work/life balance.
Sadly however, as with everything in life, it is not always that simple. Although survival rates for franchisee businesses are much higher than for other business start-ups, franchisees all too often fail. Some lose substantial amounts of money, often through no fault of their own. Below are some of the perils to avoid:
Peril No. 1 – Not doing enough homework before handing over your cash
Most franchisors can talk a good talk. It is their job to convince you that their franchise offering will bring you wealth and success. However, whilst many franchisors are scrupulously honest and professional in their dealings with prospective franchisees, some of them are unfortunately not.
Remember when you take on a franchise this is a business to business agreement. There is no consumer law to protect you, so your legal remedies may be very limited. It is your responsibility to check out what you are being told, and never to take promises and forecasts on face value.
It pays to remember the age-old saying: If it sounds too good to be true, it probably is!
Membership of the British Franchise Association – requiring the signing of a charter for ethical franchising – is a good indicator of an opportunity worthy of consideration, although there is no substitute for properly checking out and researching a franchise.
Peril No. 2 Taking on a franchise which does not play to your personal strengths
You need to think long and hard about whether taking on a franchise will suit your personality and skills. You may imagine, for example, during a frustrating day at the office, that nothing would be lovelier than leaving the rat-race and running your own cafe. But beware of the grass is greener over the fence philosophy. No matter what franchise you take on, it is likely to involve hard work, and this will never be satisfying unless it is something that you are passionate about.

An Overview of Master Franchising Business Opportunity

With new business opportunities come up in the franchising industry, aspiring entrepreneurs are finding the concept of -Master Franchise- as a better option. Master franchising is a very dynamic and lucrative business concept of the franchising industry. The Master Franchisor is provided the responsibility of helping develop and grow the franchise brand in an exclusive territory. The master franchisor buys the development rights to an exclusive territory. In many cases this territory can be quite extensive. The master franchisors work towards generating new business opportunities within that specific area.

Key responsibility areas of a master franchisor:

To facilitate franchise sales of the particular brand to qualified prospective buyers. The franchise company will provide assistance in the process of selling a franchise business.

The Master Franchisor needs to own and operate at least one unit within his territory. This unit will be help in generating a revenue stream, where prospective buyers can come and see the working module of the business.

The master franchisor also has the responsibility of providing training to prospective buyers.

The master franchisor needs to analyze the territory popular and the number of potential units a specific territory can accommodate.

Also needs to work out on new business opportunities so that the brand gets more popular.

Essential qualities of master franchisor’s

To buy the best master franchising business opportunities ideas, an entrepreneurs needs to possess certain qualities, such as:

Familiarity with the local market of the territory for which master franchising is offered.

Experience in the relevant industry. This is not always essential but having experience can be an added benefit for the franchisor.

The master franchisee must have the budget to purchase the franchise rights, set up units and develop the franchise business in a particular territory.

Having management skills is must for owning the rights of master franchising.

Various sources of income for master franchisors:

With master franchising business opportunities ideas, the franchisor enjoys new ways of generating income which is generally higher as compared to any other normal franchise business.

Franchise fees: In a master franchise network you receive a franchise fee when you sell a franchise. In a typical master franchise program the owner gets a good share of the franchise fee.

Ongoing royalties: With the opening of a new franchise outlet within the territory of a master franchisor, the owner gets benefitted of additional royalty income for the rest of the life of that franchise. This is the ultimate income source.

Products or additional services: Often products or additional services needed by the franchisees are sold at the master franchisor’s outlet. This is a great source for additional income. But for this you need to look out for best business opportunities in master franchising category.

Real estate: If real estate is involved with the franchisee’s location, often the master franchisors gets involved in the development of sites and doors get open for receiving other types of real estate related income.

In conclusion, master franchises are best option for entrepreneurs with sufficient financial resources to develop a network of franchises in a specified country or region. However, you need to look out for the best business opportunities in this area to enjoy success.