Running a franchise is sort of like renting an apartment. When you rent, you may be able to repaint or make modifications but you still need to check with the landlord before going ahead. You may be living in the location you want, but you need to pay the landlord a monthly fee to stay there. Ultimately, you'll never be an owner exactly but you'll still have many freedoms and advantages. Similarly, the business franchise allows you to use a location, business plan and name brand by paying a fee to a franchisor. You don't exactly own the business, but you operate it and can make some money off a proven trademark. Before buying, you must consider the various costs and financial implications of running your franchise business. You'll have to pay an upfront franchise fee, which can be anything from several thousand dollars to a couple of million dollars. You're essentially buying the name brand, the proven business model and assistance from the franchisor with this money, which is often non-refundable. Additionally, you'll need to cover rent for your location and in some cases you may need to build a new location. You'll have to buy inventory, supplies, fixtures, operating licenses and insurance. Over time, you'll be responsible for paying continued royalties on a franchise because you're using the name brand. The amount varies and will be included in your franchise agreement. Sometimes, it's a percentage of your weekly or monthly gross income but other times it's a flat rate. Be aware that you'll be responsible for these ongoing payments even if your establishment isn't making a lot of money and even if you opt out of the franchise agreement early. Advertising fees are due a few times a year as well, which goes into a pool for all the franchises and covers national advertisements that will benefit you and other franchise owners. Before you decide upon a franchise system you'll need to look at how much you have to invest, how much you can afford to lose, what your credit score is, what savings you'll live off and where you'll get financing. You'll also need to consider whether to get additional technical experience, education or training to run your business most effectively. If you have experience as a business owner or manager, then you might want to choose that same industry. There are franchises available in the restaurant, auto, sports, business services, computer, video and retail industries, just to name a few. A whole world of information about a franchise eagerly awaits you from Mike Selvon portal. We appreciate your feedback at our franchise opportunities blog.
Related Articles -
a franchise, business franchise, franchisor, franchise business, franchise agreement, franchises available,
|