subject: To Franchise Or not to franchise? [print this page] Training is providedTraining is provided. Consultation is often available after purchase. It is true that there are fees, royalties, and other charges but a franchise should bring you more business than you could draw by yourself. People have been trained for decades by the McDonald's example. At any place from coast to coast you may buy the same hamburger and the same french fries in the same basic atmosphere. Why guess about quality or service when you can know for sure? Here are some tips about evaluating whether or not you want to franchise:
See what they offer. Ask for a franchise brochure. These are unually free and contain lots of propaganda. They usually will not have all the information you are looking for but they will be a good start. If you want all the information, you may have to make an informal application or even provide financial data about yourself.
See what they charge. Examine the franchise offering to see what the fee, royalties, and other charges are. Compare one franchise opportunity to the others.
Check filing statements. Most states require companies that offer franchises in that state to file a complete document. They make it available to anyone who asks. Ask.
Check with existing franchisees. Before you make your selection you should ask a few franchisees what the weaknesses and strengths of teh franchise are. Are they financially strong? Have they honored their franchise agreement? Does the franchise name bring extra customers throught the door? Would that business owner choose to franchise if they could start over?
When looking at franchises, compare what they offer. Some offer training, help in setting up the new franchise, regional supervision, name recognition, exclusive territorial rights, and other features. Some of these items are included in the initial franchise fee; others are not.
Unfortunately, many franchises are now keeping the best markets and locations as Company Stores. A necessary task in considering franchises is to talk with existing franchusees and see how they are being treaded. If you interview one for enough away from the market you plan to enter, the franchise will most likely be glad to talk with you. They want the franchise to grow, too.
To Franchise Or not to franchise?
By: David Pin
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