All posts in Franchising

Having your own business is the American dream and, increasingly, international interest in owning a business has been building as well. There are many questions that must be answered before you consider owning a franchise or starting any business at all. Franchising is not for everyone!

The first question to ask yourself is: “Do I really have the right mindset that is required to work for myself”? The reason this question is first is because without the attitude, drive, and ability to focus on long term goals, you will not be happy owning your own business whether it be a franchise or anything else.

This is not a “get rid of the boss” and live happily ever after situation. It will require many hours hard work, much dedication, always tough decisions and, most likely, many times where you must put the business first over your own needs.

If you do not have the stomach or the drive to do this, then continue getting a regular paycheck and forget a business of your own or consider looking for more easy money making ideas here:

http://www.sites-plus.com/cb/easymoneymakingideas.html

You will find your customers to be much more demanding than any boss could ever be! Along with this introspection, is the question: “How have I worked own my own in previous situations?” Is this a new or untried product or service, Do I enjoy the experience of working for myself?

The second question to ask yourself is: “Have I researched the market or field regarding the area I plan to purchase a franchise”? This must be very extensive as you want to have a good mix of the business fit being right or correct for you and a market that will support your decision.

After you have researched your desires and needs and attitudes, the next step is to address your financing issues. What amount can you comfortably afford to put down on a franchise? What will the operating expenses be? Within this thought process there are many pitfalls including employee salary, benefits, replacement training, recruiting ads, possible temporary help, government regulations for employment, accounting fees, local licensing fees, and many more costs that will need to be addressed within a start-up package plan.

You will want to check the Internet for lists and types of franchise licensors that are willing to take on new franchisees. Check the business publications such as Inc. magazine, Franchise Today or Entrepreneur to see what franchises are up and coming or those that are solid and gaining ground.

Once you have narrowed down the field you want to be in it is time to talk to the franchisor that grants the license.

The first thing to remember with a franchisor is that they are there to sell you a franchise. Even the best franchisor out there will attempt to market their product and downplay other franchises. What you want to realize here is that their goal and game is to have successful franchisees but that does not prevent them from possibly making a wrong fit with you. You are your best advocate. Keep your head and do not let their enthusiasm become overwhelming to you.

The best thing you can do for yourself after you have selected a franchisor, is to have a business attorney of your choice go over all the papers, suggest items that might need some changing to benefit you more, and general advice on whether this licensing agreement is standard in the industry. You want to avoid being locked into a franchise that offers their licensees little resources should a problem occur.

The conclusion is franchising can be a wonderful method of jumping into being into business for yourself but not by yourself. The licensor can offer many resources it might be hard to afford by yourself. They are a good source of encouragement and hand-holding when you are starting out and things seem overwhelming. Being in business for yourself can be exhilarating and franchising can be your ticket if researched thoroughly and properly.

One of the most popular type of business in the Philippines today is franchise business. And this is because of its many benefits which made it simpler and easier compared to starting a business from scratch. So what are these benefits and advantages?

Advantages of Franchise Businesses There are many benefits of starting a franchise business rather than starting from scratch. Some known benefits involve the advantage of starting up quickly based on a proven trademark, and the tooling and infrastructure as opposed to developing them.

In addition to that, franchise businesses can also offer the convenience which will allow its franchisees to start their business without having to worry about their supplier or their consultant, or other important aspects of businesses. This is because their franchisors can also stand as their consultant and their supplier, making it easier for Filipino entrepreneurs to start their business.

However, other than just the benefit of starting-up quickly, there are also other reasons why franchise businesses had gained a lot of popularity in today’s market. And that is because of its affordability.

New Franchise Businesses and its Benefits Popular franchise businesses in the past are comprised of medium and large businesses from bakeries and convenient stores, to grocery and fast-food chains. Because of this, franchise businesses in the past can only benefit those that can accommodate its costs, such as wealthy families, corporations, as well as companies.

Today, a new breed of franchise businesses were introduced in the Philippine market which aims to offer many Filipinos to have the same opportunity that wealthy Filipinos have had in franchise businesses. This is when food-cart or food-stall businesses were introduced in the market.

Compared to larger franchise businesses, food-cart or food-stall businesses are far more affordable, allowing more Filipinos to own a business which they can easily gain profits due to its many unique benefits.

In addition to its affordability, food-cart businesses are also known for its many benefits which made these types of franchise businesses unique.

Although many of today’s franchised food-cart businesses are built to stay in one place, which is similar to other franchise businesses, there are many food cart businesses today which can be moved due to its size. This allowed its franchisees to choose which place can offer them the profitability they needed.

Business Loan Services What made franchise businesses even more popular is because of the support of many companies by providing them different business loan services which can offer financial assistance to Filipino entrepreneurs. A popular example is Ka Negosyo franchise and Business Loan services which can offer the kinds of services appropriate for their needs.

Ka-Negosyo is one of the few popular business loan service provider that can offer Fast cash loan Philippines which allows Filipinos to start their business quickly, particularly if their racing against time in securing a very important location for their food cart franchise business.

One of the most popular type of business in the Philippines today is franchise business. And this is because of its many benefits which made it simpler and easier compared to starting a business from scratch. So what are these benefits and advantages?

Advantages of Franchise Businesses There are many benefits of starting a franchise business rather than starting from scratch. Some known benefits involve the advantage of starting up quickly based on a proven trademark, and the tooling and infrastructure as opposed to developing them.

In addition to that, franchise businesses can also offer the convenience which will allow its franchisees to start their business without having to worry about their supplier or their consultant, or other important aspects of businesses. This is because their franchisors can also stand as their consultant and their supplier, making it easier for Filipino entrepreneurs to start their business.

However, other than just the benefit of starting-up quickly, there are also other reasons why franchise businesses had gained a lot of popularity in today’s market. And that is because of its affordability.
New Franchise Businesses and its Benefits Popular franchise businesses in the past are comprised of medium and large businesses from bakeries and convenient stores, to grocery and fast-food chains. Because of this, franchise businesses in the past can only benefit those that can accommodate its costs, such as wealthy families, corporations, as well as companies.

Today, a new breed of franchise businesses were introduced in the Philippine market which aims to offer many Filipinos to have the same opportunity that wealthy Filipinos have had in franchise businesses. This is when food-cart or food-stall businesses were introduced in the market.

Compared to larger franchise businesses, food-cart or food-stall businesses are far more affordable, allowing more Filipinos to own a business which they can easily gain profits due to its many unique benefits.

In addition to its affordability, food-cart businesses are also known for its many benefits which made these types of franchise businesses unique.

Although many of today’s franchised food-cart businesses are built to stay in one place, which is similar to other franchise businesses, there are many food cart businesses today which can be moved due to its size. This allowed its franchisees to choose which place can offer them the profitability they needed.
Business Loan Services What made franchise businesses even more popular is because of the support of many companies by providing them different business loan services which can offer financial assistance to Filipino entrepreneurs. A popular example is Ka Negosyo franchise and Business Loan services which can offer the kinds of services appropriate for their needs.

Ka-Negosyo is one of the few popular business loan service provider that can offer Fast cash loan Philippines which allows Filipinos to start their business quickly, particularly if their racing against time in securing a very important location for their food cart franchise business.

Franchising your business can be an excellent way of expanding your company’s profile in any locations, states and nations. When you make the plan to franchise your business, you basically give rights to investors to use your trademarks, logo and proven business who in return of this pay you a fee on some pre-defined terms. Even if franchising is popular for many companies, it is not always necessary that it will be for your business concept too. Not all businesses can enjoy the benefits of franchising.

To franchise your business in a fruitful manner, a lot of preparation is required from your end. In fact, you should think about franchising only if your business is ready to franchise. The conclusion must be made from your end. But the question is how? Well it is very easy, just get answers to some questions such as: Is franchising right for you? Is your business expandable? Will the target audience like your products or services? Having answers to these questions will give you an idea whether your business is ready to become a franchise.

In fact, if you are not able to analyze yourself, take help of a franchise consultant. There are many companies and firms who offer franchise consultancy and are ready to help you in all possible manner.

A franchise consultant will help you to know:

The unique characteristics of your business that might help in franchising your business. For any franchise business to be successful there are certain elements such as unique product line, quality management, easily manageable concept and so on.

There has to be something unique about your product or service that investors might be interested upon to invest in your franchise concept. This unique element must be the highlighted part of your franchising network.

Market survey by professionals is must to come to a conclusion whether your business can be franchised or not. Franchise consultancy firms will first do a survey of the market to find what whether there is a demand for the products or services your company might be dealing with.

Experts will also decide on the budget required to franchise your business. Developing a franchise business needs both time and money. Once you are ready with the franchise proposal, you’ll also need to market your franchise opportunity. Financing your franchise expansion is a very important part of your plan to franchise your business.

When franchising your business, you need to provide a blueprint of your business operation, training, marketing, financial and legal aspects of the company. By taking help of experts you can successfully franchise your business.

There are many franchise consultancy firms who even help in preparing a franchise agreement and business proposal that are must when you decide to franchise your business. It is the detailed business proposal that will attract investors towards your business concept, and on the other hand without franchise agreement no one will take your business as a genuine one.

To conclude, taking help of a franchise consultant helps in franchising your business in a legal manner and in a way that can help you earn profit. Hence, if you have an established, successful business franchising your business is just the right option for you to consider.

Accessibility of diverse business opportunities is creating a lot of confusion among aspiring entrepreneurs to zero down on a single business opportunity. To add to this confusion is the increasing trend among brands whether service or product to opt for franchise route for expansion. No doubt taking up a franchise business opportunity is always preferred over opting for an independent business, still it is difficult to zero down whether to get associated with service franchise brand or retail franchising one. Franchising provides all the know-how and expertise of running a business successfully, which an independent business can never provide. From selecting the right location to recruiting the staff and from designing the logo to creating a brand image, everything will be done by the business owner which in not a case with franchising. No doubt franchising is successful business formula yet selecting the right business opportunity needs lot of care.
Franchising is divided into two major categories: Business or service franchising and the second one is Retail franchising. The brands that are providing services to the consumers are called service franchises and the brands that are providing product or are selling products or merchandise from a retail outlet and is expanding via franchising is called retail franchising.
The major sectors or industries that may fall under service franchising include food and beverages, education, health and beauty, play schools and activity centres, pre-school education, IT education and training, business services, consumer services, car care services and school education.
Retail franchising mainly include industries like apparel, footwear, jewellery, pharmacies, FMCG, consumer durables, furniture, electronic goods, home appliances and so on.
Some factors need to be considered before taking up a final call on the franchise business opportunity by the aspiring entrepreneur. Right business selection would definitely decrease the risk of failure and would elevate the levels of success. The article presents some measures; if taken care of at the initial phase of selection of business opportunity, the percentage of success is higher at least, if not guaranteed.
Search and research: Talk to various business owners for experience and knowledge in the areas that interests you. Understand the need of the market and ask questions.

Analyse yourself: It is very important to find out if you are a business person or not. Write down on a paper describing why you want to take up the business opportunity at all. Know your marketing and sales qualities and understand your family obligations.

Check your finances: Take a note on the kind of investment you can make. After having analysed the budget search for the business opportunities that suits you.

Check business model: Search for various business models available in the market. Make your mind if you would like to opt for franchising or independent business.

Select right industry: Having short-listed the industry for which you want to take up a business talk to experts and gather as much information as possible. Evaluate the opportunity in terms of investment required in terms of money and market value of the brand.

Take financial assistance: Talk to your accountant about income and profit projections made by the franchisors and talk to a solicitor about the franchise agreement.

Zero down on a wise decision: Analyse everything before taking up a final call. As you will be putting in your hard earned money in the business so do not just rush into the decision. Be 200 per cent sure, before making an investment.

Conclusion:
The availability of diverse business opportunities in franchising as well retail franchising on one hand offers plenty of prospects where as on the other creates lot of confusion, leading to lot of confusion. A self analysis followed by adequate search and research is the best foot forward for right business opportunity.

It’s a great client question: What in fact is the difference between a franchising loan and a regular business loan when it comes to arranging franchise finance in Canada?

The answer? There are some differences, but you just might be surprised at the similarities when it comes to comparing the two. Let’s explain.

When it comes to the ‘ players ‘ in your finance loan, it’s pretty simple. Contributions are required from you, and your lender / lenders! In Canada those lenders are specialized franchise financing firms, banks, and third party commercial finance companies. While it is extremely difficult in Canada to obtain full financing for your franchise via a Canadian chartered bank the good news is that thousands of franchises are financed via the Government Small Business Loan which can provide funding up to $ $350,000. That’s not chump change! . And when you hear what rates and terms and structures are required you’ll be even more pleasantly surprised.

Clearly franchising fits into the area of the SME sector of Canada, and for that reason a lot of the challenges that the franchisee faces revolve around the same issues faced by any other start up. Yes , we agree that you’re acquiring ( hopefully ) a proven business model but the early stage financing required to get you to a turnkey ‘ in business ‘ stage is still viewed as placing a heavy onus on the entrepreneur to come up with a decent portion of the capital yourself .

Franchising, as well as any other type of business requires two key components for initial capital… a ‘ plan ‘ and ‘management expertise “. And that plan by the way is known as the ‘ business plan ‘ – which is simply your well thought out road map to financial and operational success.

The type of financing that you obtain when you finance a franchise revolves specifically around ‘ use of funds ‘, another common term for any other business financing. In your case that might be real estate, construction, equipment and fixtures, leaseholds, and some opening inventory if you have a product as opposed to a service franchise.

We mentioned the Govt business loan previously as a great conduit to get you approved for your new business. But we point to out clients that that loan program only covers equipment and leaseholds, so items such as the franchisee fee and opening inventory are not financeable. We wish they were… but they’re not!

We have referenced the fact that while Canadian banks provide millions every year for entrepreneurs in the franchise sector via the specialized BIL loan, they in general are reluctant to finance the business outside the Govt program. So discussions around bank financing quickly gravitate to personal collateral, home equity collateralization, etc. It’s simply not the optimal way to go if you want to separate your business life from your personal life.

Another strong similarity in franchise finance when compared to other business financing is the fact that a strong emphasis is placed on your personal financial history. This is typically documented by your credit report and a solid amount of emphasis is placed on this report. In Canada this report is in effect a scoring system and a good score of ‘ 650’ is required.
Simply speaking, the bank or any other commercial lender wants to know you will run your own business in the same manner as you have arranged and run your personal finances, and that of course makes sense – especially if you’re the lender!

So as we have seen many of the concepts and lender views around any business finance loan or proposal pertain to franchise finance, with some nuances / differences. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor for franchise finance assistance.