Thinking of Buying a Franchise?
At some point most Americans realize working for someone else in this day and age could be a dead end or even worse an un-secure situation. Let's face it a “real job" just doesn't cut it anymore and is a far cry from the American dream With America's current growth of outsourcing and pay raises that can't even keep up with inflation a majority of Americans are looking for a way out, some may already have a clear vision and others just know they need to declare independence from the rat race any way possible.
A franchise agreement may seem like just what you need for a change in your career and life. After all, everyone already knows about Subway, Midas Muffler, Dunkin Donuts, Dominos, and thousands of other businesses that have lines the streets and filled the strip malls of North America. Hopefully the information brought to light here can save you the years of frustration that most new business owners experience when attempting to work the traditional brick and mortar business or start a franchise.
As a franchisee you'd have the privilege of being able to use the company's name and recognizable storefront, and trade secrets. Franchise fees can be quite reasonable (most under 40K) but that's only the beginning.
You will need an upfront investment that amounts too much more than the franchise fee. For example, survey results in the article “Annual Franchising Overview" (Bond's Franchise Guides) showed and average of $27,300 for a motel franchise-but estimated startup capital or line of credit was $6,600,000. Yeah that's with 2 commas. OK that's a motel; how about a small-scale shop that sells donuts, pizza, cookies, chocolates, or bagels that carries an average fee of $24,676? Estimated startup capital was still a whopping $261,165. In addition to arranging this financing most franchisors will have requirements for your personal net worth so call the accountant you are going to want to look good on paper. Oh and call your lawyer too, your going to want them to go over the contracts. These contracts will bind you to the franchisor's terms, which will include restrictions, requirements, and specifications that will be imposed on you forever. You must also qualify for licensing.
But let's say you've got enough saved up for the fee, you meet all the requirements, and attain the proper licensing, it sounds like a sweet deal, doesn't it, what could go wrong?
Owning a franchise is not easy, and anyone who goes into one believing that the business will run itself is destined for failure. In fact, you may feel like your still working for someone else once you discover all the responsibilities that come along with a franchise agreement. You will be dealing with employees (some unreliable), customers (some complain), and your contact people at the parent company-in effect, your new bosses.
Do you have enough money to run the business until it starts turning a profit? Factor in payroll, employee training, equipment, rent, maintenance, insurance, inventory, payment on the business loan, and don't forget to send the franchisor a monthly royalty of 4%-8% of the TOTAL SALES (not of profit)!!!
Once you narrow exactly what your are looking for make sure it is comfortable because you will be spending a majority of your time on location, working in your business not on it. Your vacations and family time will be limited.
There is an Alternative Plan
There is a much less complicated way to achieve financial independence and success without jumping on the franchise roller coaster that never stops. There is a viable legitimate way to earn an exceptional income without the huge investment, the loss of freedom, or the sacrifice of time with your family. Many Americans are discovering that they have options that were not available a year ago. When comparing this new business model (NBM) against the traditional business model (TBM) here are some things to consider. TBM investment 25K-2.5M, avg. 5 years until profit, 15% profit, and 15 hour work days. NBM 2-25K investment, avg. return in 30-60 days, 75% profit, 3 to 5 hour work days, no employees, no inventory, no rent, no insurance, less taxes, and more freedom. In addition, some of the nations top financial authors and gurus are touting this home based business movement as a revolution destined to create more millionaires than any other industry in history.
More and more Americans are running multi-million dollar businesses from the comfort of their own home, but where did they start? Unless you already have a product and a strong advertising and marketing background I would recommend starting online with a discerning eye, not all home-based businesses are created equal. Some sell buckets of hot air while others have a great product but lack the system, training, and support that make all the difference to your bottom line. Since there is no limitation on how many different home-based businesses you can participate in, I recommend starting with a top tier program that has a turnkey proven system in place and avoid following a lone individual. Look for a professional team with the proper support in place, you'll find the training is well worth the entry-level cost. Top Tier Direct Sales opportunities have a much higher success rate then do low cost “old school" MLM models simply because they do a lot of the heavy lifting for you, in effect making it very possible to replace your current income in less than 6 months. If your looking for the easy way out or get rich quick deals this is NOT the business for you. You should expect to reinvest your initial earnings back into building your business. Non-the less it is still better then spending years building a successful career just to feel trapped in it as you very well may if you signed a franchise agreement. If you are ready, willing and able to learn new skills, overcome obstacles, and persevere. Make a choice to start looking past your judgment long enough to get the facts about home-based businesses.
For more information http://www.EscapeFranchising.com
Living the Dream in Sunny CA! Work history: 17 years in Restaurants, 4 in the Mortgage Industry, and Lifetime Entrepreneur. Recent Discoveries: Income Automation, Free Time, More Freedom, Happy Days!