What is a Franchise and is it Best For You?

For many people, the “American Dream” is the idea of owning their own business, being their own boss and taking control of their life. Well, a franchise is a great way to do just that. Owning a franchise gives the buyer some unique advantages and in the current market some of the best new franchises are as diverse as a High School gym during a pep rally.

Well, what exactly is a franchise?

A franchise is an independently owned and operated retail business that is being backed by and marketed by a “parent company.” This agreement allows the buyer of the new franchise unit to be a student and the parent company is kind of like a mentor.

Some of the biggest advantages to buying a franchise include…

1) The reputation of the parent company. These companies usually spend years build trust in a community. As a franchisee you buy that reputation, and the community will already be willing to trust you, which will free you up to focus on your business.

2) There is already a proven system of operations in place. The parent companies have perfected the way that the business should operate, so you will not have the burden of learning through trial and error. The large corporation has already done that for you.

3) The corporations care deeply about your success. You might be thinking, “I’m supposed to believe that these money hungry multi-billion dollars a year in sales corporations are going to care about me?” Well, yes. You would be representing them and their product. If you fail, so do they by losing a customer base that they have tried for years to get to remain loyal.

4) They have excellent support. They want you succeed so they have instituted the tools you need in order to do so. More so, they are there to help when you have a crisis. Remember, you are representing them, so they need you to do well and they will do what it takes to make sure you do.

“It is starting to sound too good to be true. What’s the catch?”

Well, as with any business proposition, there are a few disadvantages.

1) If the parent company is very large, it can be hard to get approved to open a new unit. If they already have a saturated market, it is in their best interest to focus on the existing units, than to open a new one. You can, however, get around this. You could buy an existing unit, which has its own advantages. This way you can see the profits that the business makes, the way it operates and exactly what you are getting yourself into.

2) There are a lot of rules to follow. This is especially true if the parent company is a very large corporation (Starbucks anyone?) This cannot, however, be seen as a true disadvantage. These rules are in place to ultimately help your business succeed, so really, they are helping you out.

3) It could be hard to be approved to get the branch. These large companies get thousands of inquiries for franchises a month. That means there is a lot of competition for the buyer. You have to be aggressive and play up your strengths. Or you could go with a smaller company, which has its own advantages, such as, much less market saturation.

On that last note, there are many new franchises every year; some of the best new franchises have yet to be discovered. If you are going to invest a substantial amount of money into a franchise, it is best to go with one that is new. Being weary is not a bad thing! If the company is very new at franchising, watch it for a while. It won’t hurt you to take your time. It is best to get in right before the snowball occurs, you know that moment when you just heard about it and then there is one on every corner (Starbucks, anyone?).

Here is a list of the top 2008 best new franchises, as reported by entrepreneur.com:

1) Instant Tax Service

2) Massage Envy

3) Snap Fitness Inc.

4) System 4

5) One Hour Heating and Air Conditioning, LLC.

6) Super Suppers

7) Mathnasium Learning Centers

The Growth Coach

9) Play N’ Trade Franchise, Inc.

10) N-Hance

If you do go with an over-saturated market, know that success is possible, but it will take much longer. Remember, franchising is the best kept secret of the 21st Century!

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Hottest Canadian Franchise Business Opportunities

Though businesses sometimes like to restrict themselves to certain geographic boundaries, the entrepreneurial spirit knows no borders. With the right kind of self-starting, hard-driven business owners living on both sides of the US/Canada border, there is no reason to neglect the franchise needs of either group. As such, here are some of the best possible business opportunities which are mostly US based, but are available to the business-savvy Canadian entrepreneur.

Oxford Learning Centers

A native Canadian business, Oxford has been one of the premier tutoring facilities in the nation for over two decades. The secret to their success is simply that they love teaching and learning. It begins with the relationship between franchisor and franchisee, in which, the franchisee is immediately given all the business and tutoring training he needs to build a successful business and educate children at an unrivalled level. That love of learning is then passed down to the staff and students, and it is continually refined by regular teaching seminars. If you have a knack for business, a love of education, and a heart for kids, there is no better franchise opportunity.

Padgett Business Services

If you have any kind of accounting experience and you have a deep desire to help propel small business owners into bigger and better success with their companies, this is the franchise for you. Ranked #1 in its category by Entrepreneur Magazine, this company has made an impressive name for itself as being more than capable of taking care of any and all financial needs for small businesses that may not be doing so well. For the Padgett Business Services owner, the best part of the deal is that wherever your personal financial know-how falters, further support for you and your client is never more than a phone call away. There is support for everyone involved.

Jackson’s All-American Sports Grill

A restaurant this good, despite its less than patriotic name, can turn a huge profit because it truly is the best sports grill around. The menu is both original and delicious, and the business is completely turn-key. Franchisees are given professional aid in every aspect of opening the restaurant. There are roughly 50 flat screen TVs in every franchise, and their ergonomic chairs are unlike anything you would find at the typical restaurant or bar; it is the place to watch the game, regardless of what that game is. It may be a franchise with a higher initial investment, but on game day, it all pays off.

IntelliTurf

If you’ve never heard of this home based business, you’re not alone. That is actually one of the benefits of purchasing a franchise from this company: it is a budding company in an untapped market, making a huge potential for growth. Whether selling to a local golf course or a private home owner who wants to redo the lawn, being the only synthetic turf installer in town is bound to pay off quickly.

INTERIORS by Decorating Den

Certainly a well known name in the interior design industry, this work from home franchise is perfect for the entrepreneur with an eye for colors and design. As a mobile franchise, overhead costs in this business are extraordinarily low. There is a huge selection of paint swatches, fabric samples, blinds, lighting, and other decorating needs provided to all franchisees by some of the most trusted names in the industry, and it is all kept for display in the back of the company vehicle. Meet clients in their home, show them what you have, and give them the hottest living room in the neighborhood, all at a fraction of the cost of a major design firm.

Snap-On Tools

For the franchisee who wants to sell the best product at the lowest overhead, this is definitely the way to go. Another mobile business, this retail franchise is the van that mechanics, shipyard crews, and homeowners all love to see pull up. Known for having some of the best tools available for a number of industries, Snap-On Tools is the name that people trust. And the franchisee can trust them too, because their business model keeps costs down by requiring that franchisees only keep sample products on hand and order whatever their clients want at the point of sale.

Arby’s

Even in the world of fast food franchises, few names are as widely recognized as Arby’s. Having already run for a solid 40 years, opening 3700 locations, there aren’t many businesses available with as strong an outlook for future success. The startup cost is higher than that of a mobile franchise, but the return in the long run is much higher, so for the right businessman, there is no better choice.

Wherever entrepreneurs live, there are franchise opportunities available. If you have that drive to succeed in business and Canada is your home, there are plenty of great businesses for you to choose, so take your pick.

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Unusual & Interesting Franchise Opportunities

The most unusual franchise opportunity that I have come across specialises in cleaning mattresses! They have turned this business into an art form. The way I clean my mattresses is by taking them out on a cold day and hitting them with a hard brush. The brush dislodges all the loose material whilst the cold kills any bed bugs.

This franchise has all the specialist equipment needed including hi powered cleaners, UV radiation equipment and specialist hygiene sprays. They claim that a properly cleaned mattress will also reduce many allergies. It can also help in reducing Asthma attacks by removing dust & tiny skin particles from the mattress and thereby reducing the amount of dust in the air. If you are scared of bed bugs or creepy crawlies then this franchise opportunity is not right for you!

Another franchise that I found unusual was a window cleaning franchise - why would any one buy this type of franchise? Surely all you need is a van, a decent ladder, some cleaning material and you are ready? Not all window cleaners are the same…

This window cleaning franchise I looked at can also clear your gutters, decks and fences, roofs, patios and a whole lot more. Their aim is to make what was simply window cleaning turn into a full time business opportunity offering a wide variety of cleaning functions.

All their franchisees are insured specially for the job and use special cleaning solutions to get rid of the dirt and grime as efficiently as possible! They have high pressure washers and use “high tech” ladders and all the safety equipment that you can think of. Not one for people who are scared of heights!

I found an even more unusual franchise that specialises in bird feeding and watching. They find a great location near a busy road which is renowned for the different types of birds that visit the area and create a business which specialises in displays and merchandise for bird watchers. According to their marketing material bird feeding & watching is a 4.7 billion dollar industry!

There is a retail chain franchise in the USA that specialises in cigars, pies and other gifts for the smoker. I don’t know how this will fare in today’s environment where it’s getting more and more difficult to smoke in planes, trains, cafes, bars and shopping molls! This would be an ideal business for someone who loves his pipes!

There are many franchise opportunities available today and some of the more unusual franchises can also be the most lucrative as the standard types of franchise businesses usually have a lot of competition. It is also important to get into a business that you enjoy and one which suits your lifestyle.

By investing in a franchise you are taking the gamble out of starting a business as you are buying into a business model that has already been proven to be successful. Just make sure that the franchise you choose is in a niche that you will enjoy.

Always ensure that you get the best possible advice from experts in the field of franchising before you buy a franchise.

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