Start a Bookkeeping Business – Buying a Franchise

If you are thinking about starting a bookkeeping business, an option to investigate is that of a franchise. With the franchise model there is support starting, running and marketing your business. Branding and business recognition have already been established and it is often looked upon as an easier way to attract clients. Additionally a large franchise may already have a significant market share.

There are however some serious things to consider before taking the plunge into a franchise as the start up costs are considerably greater than going it alone and since it is an expensive exercise, it is something you need to research and ensure it is right for your needs.

The franchisor is the main business, the franchisee is the local business operator. The franchisor offers their systems including marketing and operating systems. This is worth a certain dollar value and that is why it is costly to enter into a franchise.

Franchises need to comply with the franchising code of conduct. This is a mandatory code of practice monitored under the Trade Practices Act 1974 (Cth) It regulates the relationships by setting the minimum standards. It also broadly defines what a franchise is.

When looking at the franchise as a possible purchase option, it is important to study carefully the franchise disclosure document and obtain your own legal and accounting advice. This will also be important as you will probably be financing the purchase of the franchise and the bank will require this information.

The disclosure document is a vital tool for the franchisee to see if they want to enter the franchise. It will contain details such as

Franchisor details and franchisors business experience. Any pending litigation, which will be vital knowledge for you. You don’t want to get into business with someone who could lose their business goodwill with one legal case a week after you open your doors.

Find out how many existing franchisees. The area you have access to, or commonly known as territory. Investigate marketing funds that you will need to supply as the franchisee to be part of their joint marketing operations.

Potential earnings will be important and so will the costs of ongoing management of the franchise by the franchisor and the term of the franchise agreement.

Once you have had a look at the disclosure document, it is important to do further research. Talk to the other franchisees. See what the business is all about and how it operates. See if you can spend some time with a current franchisee. Have a look at the earning potential, how much of your own marketing and client marketing you need to do in addition to what the Franchisor has already in place.

Look at the earning potential of the franchise model and analyze expenses. Look at what expenses you pay to the franchisor and what you will still need to pay on your own.

Most importantly, make sure the term of the franchise is long enough to recover your money, make a reasonable profit and increased the capital value of your business.

If you do go ahead with a franchise model, the earlier set up section of this book will still help you with ideas of marketing and networking which will still be important elements in your business even with a franchisors help.

No Comments | Posted in » NewFranchise Articles

The Advantages and Disadvantages of Running a Franchise

When it comes to starting up your own business, the thought of a franchise has a lot of appeal. When starting a franchise you already know that your customers have heard the name of your business and will most likely come to your shop as well. You already have that free advertising going for you. Nothing can spread business faster than word of mouth. But there are pluses and minuses to every type of business you could decide to start up. It would be a good idea to read through some rent-a-center franchise information before jumping in feet first.

One of the major benefits to starting up your own franchise is that the franchisor often provides a significant amount of training. This is highly beneficial since any other business would not have access to this type of assistance. While your franchise might have to pay for the training, this is a better option than having to go out and figure it all out on your own. In addition, the franchisor will usually provide continued support and mentoring throughout the life of your own rent-a-center franchise. This is due to the fact that each franchisor wants to see each branch of their company succeed. They will not want to have one of their own stores ruin the reputation of all the stores.

On the other side of the advantages are also some disadvantages. The biggest disadvantage that you have owning your own franchise is the loss of control in most aspects of your company. If you want to make any changes the change must be approved by the franchisor. Also, if the franchisor is not running the company to the benefit of each franchise, this can cause major problems between you and the franchisor. You should make sure to read through your franchise agreement as most of these have you sign your rights away if any such disagreement should occur. The other main disadvantage is the cost in general. There is an upfront fee that you must pay to the franchisor for using their name and trademark. You will also have to pay royalties to the franchisor which will cut into your pocketbook for the life of your business.

While starting up your own business sounds like a wonderful idea, it is also a good idea to weigh the good and the bad that go along with opening a franchise. After you read some RAC franchise information you might decide that you still want to go ahead or you might change your mind altogether. It just depends on what type of business owner you want to be.

No Comments | Posted in » NewFranchise Articles

7 Top Benefits of Owning a Fitness Franchise

Are you a workout fanatic or a self-proclaimed "gym rat"? How about combining that passion for fitness with a lucrative franchise business opportunity? Now we’re talking.  

If you have the desire to be in business for yourself and are also passionate about exercise, diet, and fitness, perhaps a fitness franchise might just be the perfect business for you. Let’s face it: our society as a whole is overweight. It’s a problem that has existed for a very long time, but the increased awareness of the health risks associated with being overweight has created a steep increase in the popularity of the health and fitness industry. Sadly, our children are as unfit as ever. Combine that with the fact that the weight loss industry is a $40 billion annual business.  Can you see the huge possibilities here?  

Maybe you’re a husband and wife team seeking to make a difference in the lives of those who struggle with weight loss and fitness.  Or you’re a bored, unchallenged, white collar executive looking for a way to combine your passion for physical fitness with the desire to grow a successful business for yourself. Perhaps you are an investor seeking a business vehicle that allows you to purchase the rights to a specific region with the intention of developing multiple profit centers or desiring to possess the license necessary to sell the concept to other entrepreneurs in your region. Whatever your reason, a fitness franchises is a great business to invest in.   

Consider this: baby boomers, the largest segment of the American population, are more focused than ever on their health and overall appearance. They refuse to age without a struggle, and they are the pioneers behind the explosion of health clubs, aerobics classes and home fitness during the past thirty-plus years. They have tried all of the diets and exercise regimens, and are in search of a more fulfilling program that leads to lifelong health.  This group and their health focus is a major reason why fitness opportunities are, and will continue, to thrive. 

Although millions upon millions of dollars are spent each year on exercise equipment and health club memberships, the majority of the population is losing their battle against weight gain and overall fitness. They are realizing that going it alone just isn’t working. Along with state of the art equipment that targets their "trouble" spots, they need specific, detailed, easy to follow programs that can lead them on the path to reaching their goals. 

There are several great fitness franchise opportunities, such as those that specialize in weight training, yoga, Pilates, men’s, women’s, and children’s fitness centers. Even those that specialize in strength training with a personal trainer. Whatever your area of interest in physical fitness, you’re destined to find a franchise concept that excites you. 

Fitness franchises offer some great benefits to the franchisee, including these 7:

Low overhead  

Few employees  

Passive ownership  

Simple operation  

Multi-unit opportunities  

Limited seasonality  

Low initial investment  

Many also allow you to choose which type of owner you choose to be, whether its owner operated, manage the manager scenario, or a husband/wife team where you both bring specific skills and talents to the business.

As your clients achieve their goals of being physically fit, you, as the franchisee, enjoy the road to achieving fiscal fitness.

Check with an experienced franchise consultant for specific fitness franchise opportunities that match your requirements and skill set and for availability in your area of the country.

Register for your Free Franchise Consultation.  The Franchising Authority will help you find your perfect franchise!

No Comments | Posted in » NewFranchise Articles