Tuesday, March 31st, 2009
It is possible that when one is interested in buying a franchise can be better for them to seek a franchise broker. A franchise broker is a person who communicates between franchisor and the franchisee. Franchise broker will receive the two together to establish plans and objectives. Empirebb agent suggests that a franchise can be considered as a real estate broker. Both jobs are exactly the same, except that the main component of the estate broker selling homes not businesses.
He will help both parties until the completion of the entire business and earn their commission. Using the knowledge of an agent of the franchise you will receive a great assistance in all business opportunities. Business brokers can provide a number of functions, including:
- Supply of paper documents work
- Help in setting up contracts.
- Promote
- Guiding.
- Ease of communication.
- Support throughout the process.
On the other hand can be seen asking for help from a franchise consultant. A consultant offers professional advice to those interested in franchising. USfrabchisenews shows a list of what one should expect from a franchise consultant.
This list includes seeking a franchise for you based on your unique individual needs. The consultant must also agree to notify each franchise that you know what is expected of you. All the correct information about a franchise and tips on the best research is also a consultant help. Finally, a consultant in support of all legal documents and to help understand the requirements that must be obtained.
The advantages of paying for this advice can be found the best franchise opportunity for you. The help of a franchise consultant can quickly reduce the personal time you may need to spend on the research yourself which means you will be able to access business faster.
Although there are always factors to consider when choosing a consultant or agent. Advice provided by a professional to be subjective, so you as a person should ensure that decisions that meet their own needs as well.
For example, some consultants see the product itself and what brings success. Therefore, entering into a franchise is a product in demand is seen as an automatic success. On the other hand one can say that is the brand that brings success, so for a franchise with a brand name would be your best option.
Therefore, you should evaluate their own ideas about success, and where they would rather be. Your key to the success of what must follow. You must be the decision on whether the selection and choosing a broker or franchise consultant.
Following this, you can be sure that your adviser or broker will be seeking opportunities to meet and to meet fully its program.
Success is reaching your own personal goals, which need not be firmly based on profits.
You know a good franchise consultant or agent to see how that all options will be balanced against their personality, needs and desires of his own party with the perfect business opportunity that will continue through all these areas for enable their full potential to achieve their business goals.
Tags: Broker, Business, Contract, franchise, franchising, Opportunities, Real Estate, Real estate broker
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Monday, October 20th, 2008
If you are contemplating buying your own franchise, you are sure to have myriad questions running around in your mind begging for answers. To ease your mind and to give you control during the decision-making process, we’ve prepared a checklist of 20 questions that you have to get the answers to before making the big leap:
1. How long has the company been in existence before it started franchising? Was it specifically set up to franchise?
2. What is the company’s financial position? You should check accounts for at least the last three years. Can you get trade or bank references?
3. Can the franchiser show you any figures of net profits of one or more of its existing franchisees, and can you personally check the figures with the franchisees themselves?
4. What are the criteria to be selected as a franchisee?
5. As a franchisee, what are your obligations? Are there any operational restrictions on pricing or use of suppliers?
6. What is the nature and extent of the rights that will be granted to you?
7. How many franchised units are currently in operation? Are there also company-owned units in operation?
8. Does the agreement have a termination clause; if yes, what will it cost you? Can you sell your franchise?
9. Does the franchiser have a reputation for honesty and fair dealing among its franchisees?
10. What kind of assistance will the franchiser provide? Will it involve management and employee training programs, advertising campaigns, credit and merchandising ideas?
11. Does your state have a law regulating the sale of franchises, and has the franchiser complied with that law?
12. How much equity capital will you need upfront to purchase the franchise and operate it until the profits start rolling in? Will there be sufficient profit left once you have paid all your expenses?
13. What are the initial and ongoing fees? Are there any other hidden costs?
14. Will you get the exclusive rights to the territory for the length of the franchise period, or can the franchiser sell a second franchise in your territory? If the answer to this question is ‘yes’, what is your protection against the second franchising company?
15. Have any franchised units failed during the last 12 months? What were the reasons?
16. Is the franchiser a member of the FASA? Have they ever been refused membership?
17. In the event of a dispute between the franchiser and the franchisee, how will it be dealt with?
18. What is the procedure for terminating the agreement and what are the consequences of doing so?
19. How is the communication between the franchiser and franchisees? Is it possible to talk freely to existing franchisees?
20. What are the franchiser’s long-term plans for the future of the business?
Though business surveys show that fewer than 20% of all franchised businesses fail compared to the 60-80% failure rate for all new businesses started in the U.S. each year, it is necessary that you investigate a franchise opportunity thoroughly. The above checklist will serve as the starting point of your franchising journey. If you can get the answers to each of these questions, and those answers satisfy you, then you’re probably on the way to becoming a proud franchise owner. But be sure to have your attorney study the franchise contract and discuss it completely with you.
Tags: Business, Contract, Directories, Due diligence, franchise, franchising, Opportunities, U.S
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Wednesday, October 15th, 2008
Let us first understand what is meant by due diligence – the Merriam-Webster Online dictionary explains “Due Diligence” as “the care that a reasonable person exercises under the circumstances to avoid harm to other persons or their property.”
Through due diligence, a prospective buyer of a franchise gathers detailed information about the business potential and profitability, financing requirements, operational risks and other factors that must be discovered and analyzed before proceeding with the deal. In turn, due diligence also enables the seller or franchisor to evaluate the terms of the sale, the creditworthiness of the buyer, tax consequences etc.
Following are the 5 most important things you will need to do as a prospective buyer before you take the final step of signing up.
1. Understand your market: Once you have made up your mind on what type of franchise you want and can afford, investigate the demand for that particular product or service in your area. Just because the idea might have worked out perfectly for someone located elsewhere, does not mean it will work in the place where you want to open your franchise. Some issues you need to consider include the level of competition in your target market and whether the concept has only seasonal marketability.
2. Compare opportunities: Even if your heart is set on one franchise brand, it never hurts to look at other opportunities to make sure you are signing on with the best option that matches your skills and interests. Attend a franchise trade show and/or use a franchise consultant who will enter your criteria into a database and then present companies that match your parameters. There are also numerous websites that allow you to see a snapshot of several concepts at once.
3. Scrutinize the offering: Do not sign any contract or make any payment until you have had the opportunity to investigate the franchisor’s offering. The FTC requires all franchisors to disclose important information about the franchise system including their past earnings, franchise agreement terminations, number of operational outlets etc. You might do well to take the help of a franchise attorney and review the UFOC and franchise agreement, as well as have an accountant review the franchisor’s earnings claims.
4. Find out what training and support the franchisor provides: Before taking on a franchise, make sure that the franchisor provides intensive training on how to run the business and also offers some kind of ongoing support. This is very important because without it you will have no way of making a success of that business.
5. Talk to existing franchisees: The most important step you can take before signing the final contract is talk to other franchisees. They can give you honest feedback and validate what the franchisor tells you. Ask them about their experiences, and if they have any advice for you. Their input could be very valuable indeed.
Conducting due diligence is an important information gathering process that will enable you as a prospective purchaser to assess the strengths and weaknesses of the target business, rectify and renegotiate any new terms of agreement, minimize post purchase “surprises” and determine whether or not to proceed with the deal. Make sure you do it well.
Tags: Business, Contract, Directories, Due diligence, franchise, franchising, Opportunities, UFOC
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