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Welcome to Franchise Tips
Hi, I'm Mary White, one of the hundreds of writers here at LifeTips.com. Enjoy these 230 Franchise Tips! If you’re a business, why not hire the expert writers at LifeTips? And if you’re a writer, apply for freelance writing gigs.
Changing Careers
Many people contemplate changing careers at some point(s) in life. Many things can lead an individual to re-assess goals and refocus on doing something meaningful and fun.
Jumping into a new career can be tricky. Assessments of retraining requirements should be made before plunging into such things. It often takes a while to work up to a successful new career and it is wise to look at this from a financial standpoint (make sure to work out a livable and affordable budget).
Changing careers can be both exciting and frightening at the same time. It can be helpful to work with a professional career coach to get some insightful advice. These individuals can evaluate strengths to find great career matches. Being successful in a new career requires you to assess your goals and yourself. Remember, however, that there's always a means of finding a way to get to where you want to be.
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Buy a Maintenance Franchise for Less than 10k
Everyone needs a little help cleaning, fixing or just doing small repairs for the home or office. Check out these great maintenance franchise opportunities that you can buy for less than $10,000 and run from home!
A cleaning franchise may be the perfect small business for the retiree or stay-at-home mother who desires to add to the household income. Schedule jobs, receive calls and organize your workers on an as-needed basis while receiving the full support and training you need from the home office.
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State Franchise Tax Board
*Depending upon the individual states in which you are doing business, you may need to pay taxes to each state franchise board.
Each state has its own requirements for how and when it collects taxes. Staying up to date on the ever-changing requirements and laws of multiple states can be a big burden for a small company. Corporations with offices in multiple states need to stay on top of the various requirements and deadlines. This can become burdensome. Before expanding your business into new territories across state lines, check with each state franchise tax board to understand your obligations.
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Global Franchises: A Solid Investment During Troubled Times
As the economy tumbles and turns at every corner due to a falling dollar, fears of inflation, concerns over the depressed housing market and a host of other potential hazards, investors are searching for alternatives to traditional investment instruments. One frequently overlooked method of wealth creation is the purchase of a global franchise.
Owning your own business has always been one of the most reliable methods of wealth creation in this nation. But with an 80% failure rate during the first five years of business, many would-be entrepreneurs fear failure. That's where buying global franchises makes good financial sense. These top ranked franchises have already earned a reputation as profitable, highly recognized brand names with a proven business model. Of even greater potential interest, these franchises are available for internationally minded entrepreneurs who may be searching for methods of sustaining growth and wealth creation in emerging markets throughout the world.
According to Entrepreneur.com, the Top Ten Global Franchises for 2007 include:
1. Subway
2. Dunkin' Donuts
3. Domino's Pizza LLC
4. McDonald's
5. UPS Store, The/Mail Boxes Etc.
6. RE/MAX Int'l. Inc.
7. Curves
8. Sonic Drive In Restaurants
9. InterContinental Hotels Group
10. Century 21 Real Estate LLC
Surprisingly, global franchises remain more affordable than you might imagine. Take for instance Subway: The total investment required to purchase the number one Global Franchise for 2007 begins at roughly $75,000! Curves, a top ranked women’s fitness center requires a total investment ranging from just over $31,000 to just above $50,000. More than likely, whatever your desired level of investment; Global Franchises are within your reach!
To explore the potential return on your investment dollar, visit entrepreneur.com’s top 200 Global Franchise list for a complete overview of available Global Franchises including total investment required, how to request more information and more!
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Home Based Business for a Woman
Ladies, stay clear of envelope stuffing schemes and the like when you're looking for a home-based business. Before beginning make sure that you possess the following:
• a sound business plan • a product or service that has an honest demand • a reasonable chance of success based on your skills and background
It might be helpful to find women who are making money in successful home-based businesses and ask them about the specifics involved in their businesses.
Women's franchises are another popular way for women to re-enter the workforce or change careers and some franchises even offer means of starting home-based businesses for women.
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Franchise Basics: Understand the Difference Between a Franchise and Product License
Many people do not fully understand the difference between a franchise and product license agreement. In this short franchise basics tip, we will explore the pros and cons of each, so the small business owner can decide on the most desirable course of action.
-In both cases the small business owner typically has the benefit of a product or service that has already been tested on the market. With the typical franchise, the product or service is usually part of an entire scope of services that may include all or a part of every business function such as advertising, training, location selection, purchasing and even pricing.
-The benefit of buying a franchise is the comprehensive support, training, expertise and reputation of the franchise but the trade off is often the lack of flexibility.
-A product license agreement also allows the small business owner to use a proven product or service but unlike a franchise, they typically use it within an existing business structure. This typically provides a greater degree of flexibility related to most other business decisions but the trade-off is the difficulty in knowing how any product or service will be accepted outside of the original use or population.
-Franchise fees are typically higher than those of a licensing situation but don’t expect the support, training or other business “know how” associated with buying a franchise. Because there are fewer government and other regulatory requirements to offer a product or service for licensing, it can be more difficult to fully evaluate a license opportunity.
It is always advisable to consult with an attorney before making any business related decision, but especially when attempting to navigate the waters between purchasing a franchise versus a licensing opportunity.
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Investigating Franchise Business for Sale
In addition to the usual fees, structure, and support inquiries you should take into consideration before purchasing a franchise, you should also check into the background of the franchise business for sale. Decipher how many franchise owners it has had. Note that a number of owners over a short period of time is probably a sign of some business difficulties (either in that particular location or within the franchise as a whole).
Visit the locations and observe the way they conduct current business. If it's a franchise with repeat customers, talk to some of them. Also take the time to talk to the current franchise owner about the training and support they have received from the parent company. Compare the numbers with other franchises for sale. Make sure you hire an accountant to review the books of the franchise business for sale.
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Restaurant Franchise Restrictions You Should Know About
All franchise opportunities are subject to various restrictions, for example, a restaurant franchise is often subject to fluctuations due to the price of foods, transportation and competition so knowing restrictions in advance can make a bid difference in your potential profit.
Here are the most common restrictions to make sure you understand when comparing the price and service when purchasing a restaurant franchise.
Purpose/order restrictions. Just because the initial up-front cost is less, you may actually pay more in the long run if you are restricted from shopping for the best price due to having to buy all of your goods or products from one vendor. On the other hand, very large franchise operations often benefit from purchasing in bulk and are able to pass the savings on to individual franchise owners.
Territory restrictions. This is a very common restriction related to restaurant franchise establishments. It is common for the home office to assist – if not require – a specific location. Closely related, there is often an inability to relocate the business once it is established.
Goods or services you offer for sale. Remember, when you purchase a restaurant franchise, you are purchasing the good name and reputation of the entire franchise so don’t plan on offering additional items for sale or changing anything! Most restaurant franchise operations insist upon consistency so visitors know what to expect from one location to another and even from one state to another.
If you are considering the purchase of a restaurant franchise, a great place to begin is by visiting a franchise exposition, such as the National Franchise & Business Opportunities Show, held in various locations throughout the nation. This will allow you to speak to representatives across a wide variety of franchise opportunities and get a feel for what is available. Before attending a franchise exposition, research those restaurant franchise opportunities that are within your budget, experience and interest areas at www.entrepreneur.com. Then when you attend the exposition you will be able to ask questions, compare different services and evaluate your top choices.
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Research for your Low Cost Franchise
Whether you are buying a low cost franchise or not, you still need to determine that there is a demand for the product or service. Define your potential customers and figure out how and where they live. Do they buy your product or service on an impulse or is it a pre-planned and researched purchase? A low cost franchise like a snack or ice cream store depends heavily on foot traffic for impulse buys. Location is very important to these kinds of businesses. On the other hand, most people don't hire a cleaning service because they happened to walk by an office one day. For those types of businesses, advertising and publicly displaying information on the business is probably the best way to make an impact (people are more likely to research such services before purchasing them).
*Whether or not you find low cost franchise opportunities, figure out how to reach your prospective customers and what messages will reach them.
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Franchise Directories
There are a variety of franchise directories online. Some are portals, offering a wide variety of information. Others are narrowly focused on certain niches and can show you a franchise opportunity or business directory within a specific industry.
You can search through various franchise directories by industry, investment costs, region, or a variety of other categories. Franchise directories provide you with a quick way to get a feel for the franchise world including:
• availability • costs • financing options
Some franchise directories focus on U.S. franchises and others on international opportunities. Choose the one that best suits your needs.
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Existing Franchise for Sale and Your Accountant
Bringing in an accountant to examine the books of an existing franchise for sale is very wise. Unless you have a detailed accounting background, get referrals from friends and business owners you trust for a qualified accountant who has some experience in business evaluations.
An accountant will review the franchise's financial statements and help you understand them. They can also help you develop a business plan. You might want to get a Dun & Bradstreet report on the franchisor. Your accountant should assess the earning projections made by the existing franchise for sale and help you understand the assumptions on which they are based.
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Turnkey Small Business Opportunity
Some franchise operations offer turnkey packages, giving you almost everything you need to get going with your new small business opportunity. This can be a great help when you are starting out, but it can also be a great rip-off. Figure out exactly what they are supplying and how much that's worth to you. It's fair that you pay something for the ability to jump right into the small business opportunity, but you don't want to spend all your profits before you even get started. Talk to other franchise owners and find out their opinion about the turnkey package for starting a small business.
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Small Business Trends
In addition to researching the particular small business franchise you are interested in, you should research general trends about the industry as well. No franchisor is going to tell you that you're buying in at the tail end of the business cycle. Think about what competition might appear or how your business might change with new technology. Is your service something that could be offered over the web? Will it eventually become obsolete? Look at the competition in your industry and find out whether they're introducing related new products or pulling back and heading in some other direction. Is there specialized knowledge required to run this small business franchise? Is your business plan dependent on cheap labor being readily available and what do the labor supply trends look like? Whatever your success is dependent upon, ask yourself what you'll do if it is not available.
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Top Franchises
It can be helpful to check out the management running the franchisor of the top franchises you are investigating. Find out the names and employment history of the managers. Do they have prior experience in running a franchise operation? Also, check out any indication of shady business deals. In other words, look for criminal records, bankruptcies, and a lawsuit histories related to your top franchises. Alternately, look for past examples of meeting obligations, behaving honorably, and earning stellar reputations.
When you invest in a franchise, you want to be sure it's of top quality. You are relying upon the franchisor to meet their obligations to you so don't ignore omens presented by their past business dealings.
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The Small Business Administration Franchise Directory
The Small Business Administration has a franchise directory of franchises that have worked with the SBA and meet their requirements. They offer a streamlined loan application process because they have investigated the franchise operation and worked with the corporate management. However, just because a franchisor appears in the SBA franchise directory does not mean you should presume anything about their quality or profitability. The SBA will still consider financing other franchises, but the process will be more similar to their typical small business loan process.
