Owning Franchise

What most people who have a 9-to-5 job and collect a paycheck, a pension, and have all kinds of benefits, don't understand is that running your own business takes a lot of personal sacrifice. It's not like you can just pack up at the end of the day when five clock hits and go home and not worry about anything.

Indeed, the small business owner whether it's a franchise or not has to worry about every single detail of their business operations. Just because you buy a franchise doesn't mean you will be alleviated from the personal sacrifice and hardships that it takes to run a small business.

Sometimes it makes sense to do quite a bit of soul-searching to see if you have the right personality type, or if you can handle it. Now, if you have a family it's not just about you and the sacrifices you make in your personal life, but it will also impact your family, sometimes adversely and this can be a real problem.

If you have young children or teenagers at home you may not wish to allow them to run free when you are away working 12 to 15 hours each day. This is not to say that building up a franchise outlet cannot be one of the most rewarding experiences of your life, and add to your eventual financial freedom, as profits increase and you grow your business.

It is well-known that McDonald Corporation has made over 17,000 millionaires out of their franchisee owners. Still, this is not always the case if you do not sacrifice yourself or if you are not willing to work harder than you do at your 9-to-5 job then chances are you'd be better off financially just staying at that job and collecting your paycheck. I hope you will please consider this and the reality of franchising.

Lance Winslow is a retired franchisor - Lance Winslow's Bio Lance Winslow is formerly the CEO of WashGuys family of franchises for instance one of Lance Winslow's favorite companies on the team; http://www.windowwashguys.com/links.shtml.

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If you were the kind of kid that was always thinking of better business ideas like how to run a more financially viable lemonade stand, you've probably got a streak of entrepreneurship in you.

Starting your own business has probably been something you've considered over the years. Perhaps the time to begin is now. But have you thought of franchising? Starting your own business requires a lot of financial risk. Getting into the business market as a franchisee might be a good way to begin.

There are a few reasons why becoming a franchisee might be a better option than starting your own company from scratch. First, the two most obvious reasons are the established brand and customer base and the marketing support.

In most cases, a franchise has already made a name for itself and created loyal customers. The minute you open your doors you have access to those customers. The franchisor most likely has a national marketing plan already in place, which you have access to.

These are two obvious reasons. But there are a few you might not have thought of, like training, for example. Most likely if you start your own business, you are learning as you go. With a franchise, you have access to professionals who can train you and your employees in the most effective business methods.

Another benefit you might not have considered is research and development. Most franchisors have a department focuses on the research and development of new products, so you can focus on running the business.

Though the benefits of owning a franchise are many, it still requires hard work and effort on the part of the franchisee. Success is never a free ride. In order for your business to succeed, you will need all of your hard work and business savvy.

Cromwell Corp. (http://www.grainsofmontana.com/) is a franchise restaurant opportunities Ryan Coisson is a freelance writer.

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So, you want to own a franchise but are wondering what it would cost you to start one. Read on and get the scoop on the actual cost of owning a franchise. Like all things in life, you have to pay a price for owning a franchise - remember, there are no free lunches.

The price tags for franchises vary depending on the type of business you choose, with mobile and home-based business franchises being the most affordable category:

- hotel franchises: $4 million to $6 million

- full-service restaurants: $700,000 to $3.5 million

- fast food restaurants: $250,000 to $1 million

- auto repair: $200,000 to $300,000

There are different types of costs involved in owning a franchise. While some of these costs are typical expenses that you would expect to pay in any small business, there are other costs unique to franchises. This is the price to be paid for the added value a franchise presumably brings to your business venture.

You will incur both initial and ongoing costs. The initial or upfront costs include:

- Front-end franchise fees: You will have to pay an upfront fee for any franchise that you choose. This fee can range from $5,000 to $50,000 or more. In exchange for this fee, you receive the right to use the franchisor's name and business concept. In most cases, you also receive a certain amount of training from the franchisor.

- Initial investment: Apart from the franchise fee, you will need to have some amount of money readily available to you to meet your initial setup and working capital expenses. Depending on your business, you may need as little as two to three months worth or as much as two to three years' requirement of working capital. You can get an estimate from the franchisor as to how much this amount should be.

- Other expenses: You will have to pay professional fees for legal services and operating licenses; and things like insurance, employee training, inventory, rental and equipment will also cost money. Depending on the franchise, you may also have to pay up advertising costs upfront and buy signage packages from the franchisor.

The ongoing expenses include:

- Royalty Fees: In addition to the upfront franchise fee, many franchisors also require an ongoing royalty fee. This fee is assessed on a percentage basis and usually ranges from 5% to 10%. In return for the royalty fee, you are entitled to participation in national marketing campaigns, ongoing training and territory rights.

- Other expenses: Apart from the royalty fee, you will also incur regular ongoing expenses on advertising, equipment maintenance, employee salaries, insurance and inventory.

It is better to be prepared with complete knowledge before you take the plunge. Before you make the decision to buy into a franchise, make sure you have a thorough understanding of all the costs of ownership.

Hi, I'm Akhil Shahani, a serial entrepreneur who wants to help you succeed. If you like to work smart, check out http://www.SmartEntrepreneur.net It's full of articles and resources to help you start and grow your business successfully. Please visit us & download our special "Freebie of The Month" at http://www.smartentrepreneur.net/freebie-of-the-month.html

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How exciting it is to decide to start a business of your own. You are going to be your own boss. You are going to make lots of money. You have decided to buy a franchise; after all they have all the systems in place and must have worked out all the bugs. What you lack in inexperience of running your own business, they have figured out. They will train you, help set up the business and even train your staff. Everything is going to be fantastic or is it?

I have personally owned or been a partner in several franchise businesses, not as a working partner in the franchise but as an investor and managing partner. I have made lots of money in some franchises and I have made no money or lost money in other franchises. Please learn from my experience. It is free.

I will start by talking about the franchises that I made millions in. My husband and I built and operate several very successful hotel franchises. After doing the due diligence we carefully selected locations and the franchise. These projects were multi million dollar projects so found investors to partner with us (hopefully as silent partners) and contribute the equity required by the mortgage company to be able to fund the project.

At first I would invest a small amount of cash and perhaps own 2% of the project and gradually I worked my ownership portion up to as much as 22%. This was over the course of 10 years. Would I recommend an investment in a hotel franchise? Yes I would if after the due diligence it looks like it will be a good investment. Out of the 20 some hotels that I have invested in, only 2 turned out to not make any money and until they are sold, which at this time they are not, the investment cannot be deemed a loss yet.

The disadvantages of this franchise for you may be that you are looking to create a job for yourself, but with many partners you only have control if you own 51%. A large amount of money is required for this. We had managing partners that we fired for nonperformance so they only bought themselves a position for awhile. Incidentally to remove them as manager we ended up buying them out.

These are long-term investments. You may see a cash return on your investment in 2 to 3 years or it may take 10 years or longer to see a cash return.

The franchises that I invested in that made no money or even lost money is restaurants. We did alright at first. My husband and I would hire a manager and make them a partner and again raise capital with other investors. The businesses did alright as long as the managing partner stayed but they never made more than a salary so in a few years got complacent and moved on to something they though would be more lucrative.

We were left with the business and had to find a manager to run it. In short after about 5 years of feeding the business we sold it or closed it down. They only way we made money with these businesses were by being the landlord of the business real estate. Unfortunately our investors usually did not want to be a part of this arm of the business so they were lucky if they got their initial capital investment out.

The points you need to consider in a franchise you are thinking of opening are the following:

1. Initial training is very good, you are paying for it dearly, however what about follow up training or training for the new staff. Remember your initial team of employees will be a part of the training but what happens when they leave. How does the new staff get trained? Normally once the store is open and the initial training is done, you are on your own.

2. Construction of your business may be dictated by the franchisor. You may pay considerably more because they say. We negotiated our own construction for one store and saved more than 50% by doing it ourselves.

3. Advertising dollars are controlled by the franchisor and may not benefit your location at all. We owned one franchise that was the first in our country and asked to keep that money to advertise in our country as they were not spending anything locally or regionally. They refused so we paid them out of the franchise and started our own. Big mistake for them as they lost millions in franchise revenue. For us we kept the money.

4. You will be creating a management job for yourself but trust me, you will probably be working more than your employees and getting paid no more than you are making now. Perhaps even less.

5. Costs must be controlled. If they are not any cost uncontrolled is coming out of your pocket.

6. Franchises can change the rules after you get in. We owned one restaurant that did well for the first couple of years, and then they started giving away salad and breads and making us run specials where there was no profit left. They didn't care as the franchise fee is paid on gross sales not net. We ended up closing it down. Incidentally every one of those stores in the country did not make money, not just us.

As an entrepreneur for the past 20 years, there is nothing more rewarding than working for yourself. I have found a new opportunity that does not cost a 6 figure digit to get into, you are your own boss and it can be run with no employees just yourself at home. You will get out of this business what you put into it. Please have a look at it.

C Langstroth has a background in finance. She was the Chief Financial Officer for one of the fasted growing property management and development companies in the country. In her mid 40's she retired from this career and has started pursuing other business opportunities She encourages you to looking into this exciting business for yourself.

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It is not by accident that the majority of US small businesses today are franchise operations. Many people who opt to start their own business opt for the security and proven track record of owning a franchise that is based on an existing business model that has worked successfully for many other people.

Today, franchises in the US employ over 10 million people and account for nearly ten percent of the US gross domestic product. However, for those who are trying to decide whether to buy a franchise or not, there are advantages and disadvantages to be considered.

Some of the most popular franchises today in the US include McDonald's, Jiffy Lube, KFC, Subway, Holiday Inn, and countless others. A franchise agreement is where a host company, or franchisor, sells the rights to use a business name and sell a particular product to consumers within a specified sales region.

The advantages for many business owners to purchasing a franchise involve less risk and management and marketing assistance from the franchisor. In addition, the franchisee can own a business that has a nationally recognized brand name with a good reputation among consumers. Also, many times franchises who are new to owning and managing a business can receive financial advice and assistance from the franchisor as well.

Often, new business owners find that financial record keeping is one of the most difficult tasks to master when starting a new business. In this instance, franchisors can provide advice and assistance to new franchisees on how to keep up with these tasks.

In addition, some franchisors also provide financial assistance, such as payment plans and financing options for new franchisees, which can help to minimize the burden associated with high start up costs. In essence, owning a franchise is kind of like participating in a mentorship, where experienced leaders within the franchisor's operation assist new franchisees in owning and running their stores.

The downsides, however, to owning a franchise are what hold many people back from buying one of these kinds of operations. While franchises historically have a lower failure rate than other types of operations, the cost of purchasing a franchise is often quite high. In addition, franchisees have to share profits with the franchise company, which can be a deterrent for many who would rather take a chance on achieving larger results with their own ideas.

Management regulations are often seen as an impediment for some franchise owners as well. Often, disputes among shared management can lead to a great deal of conflict, and imposed regulations can be difficult to adhere to in some regions. The franchisor can also dictate to whom you can sell your franchise, if you ever desire to leave the business.

Also, with some smaller franchises, there is an increased risk of coattail effects. This means that if a number of other franchises fail, the effect can bring down your franchise operation as well. While some opt for purchasing franchise operations because of the reduced risk and the fact that they believe many of these existing franchise operations to be stable and profitable, it is important to keep in mind that there are still a number of fraudulent franchise companies out there, so it is important to do the necessary research into a specific company before investing a large sum of cash into a franchise operation.

The author has been writing articles online for over 4 years now. Not only does this author specialize in health, fitness and relationships you can also check out his latest websites on Electric Food Grinder and Home Ice Makers

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