Buy a franchise that works!

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Buy a franchise that works!

Posted On : Oct-15-2011 | seen (645) times | Article Word Count : 717 |

You want to be happy and enjoy the business; but if you cannot generate a profit to pay yourself, it is indeed not a n interested to franchise brokerage.

There is a nouvelle idea about franchise concept that has given birth to search system. If you want to buy a franchise; then, it is the best course of action compared to owning a sovereign business or staying employed. In this direction, you would initiate your research that brings out the fun part involved in it.

To introduce myself, first and foremost, I am a franchise consultant and broker.

Boo! This is the expression that is thrown away by the audience on the aspirant self-promoter about franchise development.

One need not to worry as the things can be dealt with easily that highlights the quote that says, “There is no crying in franchising”.

Now, let us face the reality for a moment about the focus level of the people willing to buy franchise, on the associated negativities. Here is no one is at fault because most venturing into something new, will more often than not make mistakes. Well, I have done likewise personally, which has enabled me to make more bad business decisions than just about anything.

My mistakes are meant to present a bit of a silver lining for those who wish to listen. If you are willing to buy a franchise; so, make sure the model works!

That may seem oversimplified, yet everyday I see people continue to take the wrong approach when they do their franchise research. They have the natural human tendency to focus on what is popular, “en vogue”. They also tend to gravitate towards franchise system models they are familiar with. This narrow-minded approach can often lead to a poor decision.

There are number of important aspects to consider when you buy a franchise. Some of these include:

1) How the franchise fits within your lifestyle
2) The cost of the investment
3) The industry and availability in your market
4) Your passion for the franchise consulting services

While all of these factors are important, if the business model does not work and cannot make money then they’re irrelevant. You want to be happy and enjoy the business; but if you cannot generate a profit to pay yourself, it is indeed not a n interested to franchise brokerage .

So how can you determine if the franchise model works?

There are a few different ways. First, you should do a careful review of the Franchise Disclosure Document (FDD). This will provide a detailed overview of the costs and requirements to run the business. Within the FDD you can also check for an Item 19 – Financial Performance Representation (FPR). This is the only place where a franchise can legally make any disclosures regarding potential earnings.

One potential pitfall is it’s estimated that only 30 percent of franchises make an earnings claim. While I would generally prefer to see a system make a claim, it is not necessarily a bad thing if they do not. The key here in your research is to learn why they choose not to.

Another important thing to do is validate with current franchisees. Ask them detailed questions. Does the model work? Are they happy with the business? Are they making money? If they had to do it all over again would they? If you need a list of franchise owners, there should be a list of all current and previous owners in the FDD.

One final thing would be to create a detailed business plan. While you don’t have to use a franchise broker, I would highly recommend working closely with your CPA and financial advisor. They can help you create a business plan, review your results and help assess the viability of the business model.

When you buy a franchise it’s a serious and long term commitment. It can also be a great way to earn a living and build wealth. The key to your success involves a number of different factors. First and foremost, is the viability of the model and its ability to generate positive returns? If you do not have that, nothing else really matters.

You want to be happy and enjoy the business; but if you cannot generate a profit to pay yourself, it is indeed not a n interested to franchise brokerage.

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<h1>Buy a franchise that works!</h1> Author: <a href='http://www.articleseen.com/profile_sunshineconsultingltd.aspx'>sunshineconsultingltd</a> There is a nouvelle idea about franchise concept that has given birth to search system. If you want to buy a franchise; then, it is the best course of action compared to owning a sovereign business or staying employed. In this direction, you would initiate your research that brings out the fun part involved in it.

To introduce myself, first and foremost, I am a franchise consultant and broker.

Boo! This is the expression that is thrown away by the audience on the aspirant self-promoter about franchise development.

One need not to worry as the things can be dealt with easily that highlights the quote that says, “There is no crying in franchising”.

Now, let us face the reality for a moment about the focus level of the people willing to buy franchise, on the associated negativities. Here is no one is at fault because most venturing into something new, will more often than not make mistakes. Well, I have done likewise personally, which has enabled me to make more bad business decisions than just about anything.

My mistakes are meant to present a bit of a silver lining for those who wish to listen. If you are willing to buy a franchise; so, make sure the model works!

That may seem oversimplified, yet everyday I see people continue to take the wrong approach when they do their franchise research. They have the natural human tendency to focus on what is popular, “en vogue”. They also tend to gravitate towards franchise system models they are familiar with. This narrow-minded approach can often lead to a poor decision.

There are number of important aspects to consider when you buy a franchise. Some of these include:

1) How the franchise fits within your lifestyle
2) The cost of the investment
3) The industry and availability in your market
4) Your passion for the franchise consulting services

While all of these factors are important, if the business model does not work and cannot make money then they’re irrelevant. You want to be happy and enjoy the business; but if you cannot generate a profit to pay yourself, it is indeed not a n interested to franchise brokerage .

So how can you determine if the franchise model works?

There are a few different ways. First, you should do a careful review of the Franchise Disclosure Document (FDD). This will provide a detailed overview of the costs and requirements to run the business. Within the FDD you can also check for an Item 19 – Financial Performance Representation (FPR). This is the only place where a franchise can legally make any disclosures regarding potential earnings.

One potential pitfall is it’s estimated that only 30 percent of franchises make an earnings claim. While I would generally prefer to see a system make a claim, it is not necessarily a bad thing if they do not. The key here in your research is to learn why they choose not to.

Another important thing to do is validate with current franchisees. Ask them detailed questions. Does the model work? Are they happy with the business? Are they making money? If they had to do it all over again would they? If you need a list of franchise owners, there should be a list of all current and previous owners in the FDD.

One final thing would be to create a detailed business plan. While you don’t have to use a franchise broker, I would highly recommend working closely with your CPA and financial advisor. They can help you create a business plan, review your results and help assess the viability of the business model.

When you buy a franchise it’s a serious and long term commitment. It can also be a great way to earn a living and build wealth. The key to your success involves a number of different factors. First and foremost, is the viability of the model and its ability to generate positive returns? If you do not have that, nothing else really matters.

You want to be happy and enjoy the business; but if you cannot generate a profit to pay yourself, it is indeed not a n interested to franchise brokerage.

About the Author: The author of this article has specialization in Franchise Concepts.His enormous experience is summed up in the article ‘Franchise Disclosure Document brings the master plans for the Franchise Opportunities’.Along with this he also provides <a rel="nofollow" href="http://sunshineconsultingltd.com/services/franchise-consulting/">franchise consulting</a>,franchise development and brokerage services to both individuals and franchise systems.Read more:<a rel="nofollow" href="http://sunshineconsultingltd.com"> Article Source: <a href='http://www.articleseen.com/Article_Buy-a-franchise-that-works!_92554.aspx'> http://www.articleseen.com/Article_Buy a franchise that works!_92554.aspx</a>

Article Source : http://www.articleseen.com/Article_Buy a franchise that works!_92554.aspx

Author Resource :
The author of this article has specialization in Franchise Concepts.His enormous experience is summed up in the article ‘Franchise Disclosure Document brings the master plans for the Franchise Opportunities’.Along with this he also provides franchise consulting,franchise development and brokerage services to both individuals and franchise systems.Read more:

Keywords : Franchise Brokerage, Franchise Consulting, Franchise Models, Franchise System, Business Coaching, Strategic Business Planning,

Category : Business : Customer Service

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