Is it really a stupidity to buy a franchise?

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Is it really a stupidity to buy a franchise?

Posted On : Nov-01-2011 | seen (423) times | Article Word Count : 582 |

What if the scenario of franchise concept is run through you?

You pay a fee ranging from 20,000 to 40,000 dollars.

You sign a binding contract for 10 or more years, which require you to pay an ongoing percentage of your sales, have limited control of your processes and procedures and no guaranteed results.

Does this sound attractive? It might, particularly, if you depend on this venture to support your family, your lifestyle and also your income? Well that is what you get when you buy a franchise. While, it may seem crazy to some; there are certain advantages to this scenario, especially if you are a first time business owner.

The reason to this is mentioned below.

First and foremost, if you are a new franchise business owner; then, one of the biggest challenges is logistics. Forming your business entity, establishing a business plan and ordering your equipment is also a part of them. In addition, if you are retail based business owner, who needs to lease space; then, you have to find a suitable location, negotiate the lease, determine how to effectively build out your location and order the necessary equipment for your operation.

And let us not forget about marketing…

The lifeline of your business is getting to hear a phone ring with interested customer. There are thousands of ways to market a business and one of the biggest challenges is to determine which media works best and how to effectively market that said media.

When you buy a franchise, these are some of the things that should be already in place. The franchise concept model should have systems, processes, defined marketing pieces, a basic knowledge of when, where and HOW to open. They should have this in place, so you can essentially follow their steps, open in a timely manner and start your business on the RIGHT foot.

One should keep in mind the value of TIME. It is one commodity that we always need more, but cannot get much of it. That is one of the things you can save when you buy a franchise business. This can help you focus on your efforts for getting going, being more organized and staying in a better position for success.

While, there are advantages on buying a franchise; still, not all franchise consulting services systems work. In fact, it is estimated that only 30 percent of the 3000 Plus systems available are willing to disclose any sort of financial performance. With this in mind, it is very important to not make the assumption that just because you own a franchise, you are guaranteed success. In addition, buying a franchise is just like any other investment, which involves RISK. Even some of the most well known and successful franchise systems, such as Subway, Burger King and Dunkin Donuts have had their share of failures. You have to run the franchise business, follow the system and work hard just like any other business opportunity.

Franchising has its costs, which is slightly more expensive than starting out on your own. There are additional costs, restrictions, and royalties required. These essentially compensate the franchisor for the rights to operate a system that they developed. While it may seem unreasonable; if you have the right opportunity, it could be your best option for success.

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<h1>Is it really a stupidity to buy a franchise?</h1> Author: <a href='http://www.articleseen.com/profile_sunshineconsultingltd.aspx'>sunshineconsultingltd</a> What if the scenario of franchise concept is run through you?

You pay a fee ranging from 20,000 to 40,000 dollars.

You sign a binding contract for 10 or more years, which require you to pay an ongoing percentage of your sales, have limited control of your processes and procedures and no guaranteed results.

Does this sound attractive?  It might, particularly, if you depend on this venture to support your family, your lifestyle and also your income?  Well that is what you get when you buy a franchise. While, it may seem crazy to some; there are certain advantages to this scenario, especially if you are a first time business owner.

The reason to this is mentioned below.

First and foremost, if you are a new franchise business owner; then, one of the biggest challenges is logistics.  Forming your business entity, establishing a business plan and ordering your equipment is also a part of them. In addition, if you are retail based business owner, who needs to lease space; then, you have to find a suitable location, negotiate the lease, determine how to effectively build out your location and order the necessary equipment for your operation.

And let us not forget about marketing…

The lifeline of your business is getting to hear a phone ring with interested customer.  There are thousands of ways to market a business and one of the biggest challenges is to determine which media works best and how to effectively market that said media.

When you buy a franchise, these are some of the things that should be already in place.  The franchise concept model should have systems, processes, defined marketing pieces, a basic knowledge of when, where and HOW to open.  They should have this in place, so you can essentially follow their steps, open in a timely manner and start your business on the RIGHT foot.

One should keep in mind the value of TIME.  It is one commodity that we always need more, but cannot get much of it.  That is one of the things you can save when you buy a franchise business.  This can help you focus on your efforts for getting going, being more organized and staying in a better position for success.

While, there are advantages on buying a franchise; still, not all franchise consulting services systems work.  In fact, it is estimated that only 30 percent of the 3000 Plus systems available are willing to disclose any sort of financial performance.  With this in mind, it is very important to not make the assumption that just because you own a franchise, you are guaranteed success.  In addition, buying a franchise is just like any other investment, which involves RISK.  Even some of the most well known and successful franchise systems, such as Subway, Burger King and Dunkin Donuts have had their share of failures. You have to run the franchise business, follow the system and work hard just like any other business opportunity.

Franchising has its costs, which is slightly more expensive than starting out on your own. There are additional costs, restrictions, and royalties required. These essentially compensate the franchisor for the rights to operate a system that they developed. While it may seem unreasonable; if you have the right opportunity, it could be your best option for success.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://www.buyafranchiseconsulting.com/">http:/ Article Source: <a href='http://www.articleseen.com/Article_Is-it-really-a-stupidity-to-buy-a-franchise_98802.aspx'> http://www.articleseen.com/Article_Is it really a stupidity to buy a franchise?_98802.aspx</a>

Article Source : http://www.articleseen.com/Article_Is it really a stupidity to buy a franchise?_98802.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: http:/

Keywords : franchise, franchise consultant, franchise concept, Franchise Models, Franchise System, Franchise Brokerage, Business Coaching, Stra,

Category : Business : Business

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