-Franchises
Franchises Out Pace Business Opportunities, Finish the Race in First Place
Franchises have proven to be less risky than business opportunities, while providing an opportunity to work for yourself while relying on the past experiences, successes and the brand name of a recognized parent company. The key to success as a franchisee lies in the preparation, which MUST include research, research and more research.
Job uncertainty, longer hours for less pay, unrealistic bosses and unachievable demands are just some of the reasons more and more people are looking for new careers, with eyes (and hopes) focused on careers that allow them to work for themselves and achieve financial security.
If you’re one of these people and you think that you can’t enjoy work, time with family and friends and bring home the paycheck you deserve, you’re wrong!
Sure, venturing out on your own can be scary. That’s why franchising is being chosen time and time again by thousands of people just like you, for as these people already know, franchising allows them the exciting opportunities they desire, along with the support and ongoing guidance they need to be successful.
Why a Franchise?
Different than a business opportunity, a franchise receives support and ongoing direction from its parent company, use of a recognized name, operating guidelines, assistance in determining the best location and oftentimes support in securing it.
In short, when you choose a franchise, you get everything you could possibly need to start your business - from training, marketing and licensing support to start-up inventory, as well as a successful business model, complete with the tools that have helped others just like you achieve franchise happiness and success.
On the other hand, a business opportunity is more autonomous and remains independent of its parent company, thus it does not receive the strong backing a franchise boasts, nor does it receive the same tools - parent company direction, use of a recognizable trademarked name, assistance in selecting and obtaining the best location, marketing and public relations assistance, training, inventory and more.
Of course, there are business opportunities that more closely mirror franchises, but these are few and far between, with the benefits seemingly just never adding up to equal those of franchises.
Maximize Results, Minimize Problems
Furthermore, by tapping into the existing, successful operation of a franchise, you have a better chance of maximizing returns while minimizing problems. And, in the event a franchise finds itself in the midst of a crisis, the parent company is there to help.
Franchises also offer stronger purchasing power, a necessity that may be hard to establish if you are acting alone or without a recognized parent company.
Again, there are business opportunities that offer some of the same benefits as a franchise, but a business opportunity is more of a pre-packaged program, which (again, generally speaking) requires the buyer to sell goods at a wholesale price, making it a onetime shot. Business opportunities can include everything from vending machines to Internet sells.
The Long Haul
Regardless of which road you take, you undoubtedly want to protect yourself and your investment and work to ensure you achieve the best results. At face value, a business opportunity may appear less risky, with the argument for this being that business opportunities usually require a smaller initial investment. But, you must be prepared to lose your entire purchase price in the event the deal goes bad (if you are unable to sell the products, if your supplier goes under, etc.).
Yes, there are more start-up costs to absorb when opening a franchise. But this initial investment is countered with the parent company’s experiences and success’, it’s methods that are tried and true and being relied on by other franchises as they, too, strive for success.
Then there’s the regulation aspect of it all. If you purchase a franchise in the U.S., you receive documents including details on the seller and exactly what you will receive for payment, as well as a completed disclosure agreement (called the Uniform Franchise Offering Circular, or UFOC), which is accordance with a comprehensive format developed by state regulators. In fact, this is just the start of a long list of regulations that franchisers are required to abide by. (For more information on the Federal Trade Commission’s franchising rules and regulations, go to www.ftc.gov).
Most business opportunities do not maintain a fruitful relationship with buyers and do not offer comprehensive information on the seller or even on other investors, making it a seemingly higher risk. Because of this, it may be difficult to get a good grasp on business practices and on any prior problems that may have been experienced with the business. Considering this, you may find it beneficial to check with state agencies and the Better Business Bureau ( www.bbb.org) to see if they have any complaints documented or on file for any business opportunity before moving forward.
Research, Research, Research
Regardless of which route you take, the key to your success is research. There is a wealth of information regarding both franchises and business opportunities on the Internet, but none of this can take the place of talking to other people in the business. If you are interested in a company, a franchise or a business opportunity, start digging today! Get the names of other people who have recently taken this same step. Schedule face-to-face meetings with these people whenever possible. Find out what they consider to be the strong points and the weak points. Find out where they have encountered problems and what kind of resources they were provided during times of need or crisis.
As far as the Internet goes, you will find great information at www.franchise.org, www.enterpreneur.com and www.IFA.com (International Franchise Association). There are also Internet resources for important forms that you will need as you move forward with your franchise or business opportunity (including information and forms on taxes, investments, insurance, retirement, estate planning and more) at www.toolkit.cch.com.
In summary, simply equip yourself with the tools you will need to embark on your new, exciting career and to achieve the success you deserve. As you move forward, remember: knowledge is power. The more you know, the less chance you will be surprised later on (which makes yet another strong argument for selecting a franchise over a business opportunity, considering you can meet other franchisees, verify everything you’ve researched and/or been told, and access an already assembled team of proven professionals!).
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