Archive for October, 2008
Friday, October 31st, 2008
If you are in the market to purchase a restaurant franchise or business opportunity, you might want to consider a Chipotle franchise. The Chipotle Mexican grill has seen expansive growth in the last several years. Their food is an excellent healthy fast food alternative and is a viable business in any market. Before you purchase consider a franchise you need to consider several factors. These include the franchise process, the quality of food, and the past success of the business. In this article we will review the Chipotle franchise opportunity and review why it might be a good opportunity for you.
Just like any business, you need to understand the process before you jump in with both feet. If you have prior restaurant experience and you are looking for a proven product and business model you are already headed in the right direction. First off, you need to contact their headquarters and request a UFOC or ‘Uniform Franchise Offering Circular’. The UFOC contains all the information you will need to review the fees, royalties, and terms for becoming a franchise owner. If you are still serious after reviewing the UFOC, you should be prepared to share intimate details about your business experience, net worth, and other factual information. This agreement is a partnership and like any partnership will want to understand your level of commitment before you come on board.
The second important factor to consider is the quality of the product, the food. It is no surprise that customers rave about the food. Chipotle prides itself in food that is a healthy fast food alternative. From burritos to tacos, Chipotle Mexican grill has plenty of healthy food options to cover any customers palate. Many of the food products are made from naturally grown and pesticide-free tomatoes. At any franchise outlet, they can choose from chicken, steak, free-range pork or barbecue items. If they prefer to go vegan, they can choose a filling of beans, rice, salsas and guacamole. This is great news if you are considering a franchise especially in an area where there are not many fast food options. Bottom line, your potential customers will love the menu.
The third factor to consider is the past success and history of the business. Over the last couple years Chipotle has seen exponential growth in the 30-40% range. This is great news if you are considering a franchise. With over 580 locations there are still opportunities to expand. They have done extremely well on the stock market leading to more investment and more growth opportunity. It prides itself in providing affordable, healthy, and fast food options for customers on the go.
In conclusion, the Chipotle franchise opportunity should not be overlooked. A solid growth company with nothing but potential. The market still has plenty of opportunity for new outlets and will continue to expand. If you have a proven track record as a business owner and are looking for a viable business you may find it in a Mexican grill franchise.
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Wednesday, October 29th, 2008
Franchising opportunities provide one of the most dynamic concepts of entrepreneurship in the modern era. It is considered by many as the supreme antidote to the financial security of an economy where the franchisees and the franchisor, both win. The benefits of this unique combination are then transferred to the public. Commercial cleaning franchising offers a unique opportunity to focus on one of the most overlooked segments of the society.
Commercial Cleaning Statistics
The commercial cleaning industry holds over 100 billion in contracts and operates 25,000 franchised units and more than half a million small operators. A cleaning management survey in 2004 revealed that the office buildings account for almost 53 percent of the total commercial cleaning industry. Other cleaning sectors get an even market share that includes residential, school, stores, hospitals and hotels. According to a recent survey by the US bureau of labor statistics, service providing industries will supply 96 percent of the wage paying jobs during the next five years. Similarly, job outlook for the industry is positive for the next decade. Janitorial and commercial cleaning services will be among the fastest growing sectors.
Famous Franchises
There are many good commercial franchises to choose from. Jani-King is the world’s largest commercial franchise with over 12,500 franchises in 120 countries. It was named as the 3rd low cost franchise and the 7th fastest growing franchise, among all franchise companies, by the entrepreneur magazine. In fact the magazine has rated it the number one commercial cleaning franchise, nine years in a row. Apart from the giant, Coverall is another great commercial franchise. It has seen incredible and constant growth over a long period of time. In fact, it is the fastest growing large commercial franchise in the United Sates. The company has over 9000 franchises serving 50,000 customers.
Advantages of a Franchise
Whatever you do and whoever you choose the advantage of owning a commercial cleaning franchise is that you are buying an idea that is already successful. You should know that the management and the support are ready to help you and small business loans are readily available for franchising opportunities. It is a fact that franchise businesses don’t falter easily. Historical studies from SBA have revealed that only 5 to 6 percent of the franchise business closes in first year as compared to 62 percent new businesses.
Your Options
The very first thing that you should do when buying a commercial cleaning franchise is to collect the terms of agreements from the perspective franchises. Due to the high insurance and costly lawsuits, a few franchises charge their operators a hefty annual fee. You should also take your time and visit the facilities of the franchises. It is also important to visit the head office and interview the representatives. Note down the qualities and drawbacks of every franchise. Evaluate each cleaning franchise and then compare it with your intended goals. Another important and probably the most essential aspect to consider, when looking for a commercial cleaning franchise, are to look for a brand that has the most marketable image. When it comes to commercial cleaning, institutions and offices prefer a relationship with a recognized leader in its area. Happy hunting!
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Tuesday, October 28th, 2008
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.
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