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is there a good chance of making proffit from buying a franchise from a owner that has owned a franchise and is selling it

what if you have a business parnter
or do you think i will fail?

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The food and drink franchise industry in without a doubt the largest section of the franchise industry in the UK and the world. With some huge names and brands out there such as McDonalds, Subway, Dominos, Burger King and Cost Coffee you know what you are buying into and you know you are going to gain plenty of people through the door. However as well as these large brands there are literally hundreds of smaller franchises with 20-60 outlets only and although they may not be as well known as the bigger brands they can still be great opportunities to buy into.

When buying a franchise the key is in your research. Here are some tips when buying into food and drink based franchises.

1. Do not look at one brand only. Create a short list of a half dozen franchises which are of interest. Where a franchise might be successful in one area it might not be successful in another so jumping in head first is never a good idea. With a short list of available franchises to buy that are of interest you can then begin your research.

2. With your short list in hand you are probably going to have some well known brands and some lesser known brands. Generally you will be able to see the difference immediately in that the lesser known brands do not cost so much so you need to weigh up the benefits of the brand name crossed with the custom it will generate and compare it with the smaller brand whom the local area may not have heard of.

3. Density of eateries and drinks outlets in your local area. Looking at your shortlist you should then go out into the local area where you are looking to open your outlet, if you are hoping to buy a pizza franchise and there are already 4 existing then you are going to be buying into an already saturated market. Cross out any on your list that have too many outlets open near you or broaden your territory range for opening of your outlet.

4. How long have your remaining short list been in business for? The golden rule about franchising is that you are buying into an established business. Finding out from the franchisor how long they were in business before they franchised and how long they have been franchising for is a must. Do remember though that McDonalds went to franchise back in the 50’s almost immediately after opening up their first store. However, a general rule of thumb is you can trust a franchise who has been in business a long time more. There are many start-up franchises out there though and with these you can expect a much lower initial start up costs.

5.Hopefully have made a few decisions now, with your remaining franchises contact the franchisor and ask for a list of current franchisees, with this ling in hand you can start contacting them and find out how well they are doing with their franchise and if the promises made in the promotional materials are being fulfilled.

Having done the above and the rest of your due diligence you may still be left with several choices and this is where personal preference comes in. Would you prefer looking after a pizza outlet, burger outlet or coffee outlet etc? There are obvious plus points and minus points to them all depending on your own personal preferences.

With the right research you can come out with a fantastic food franchise or drinks franchise which is going to see you and your family with a profitable business for life. Many people jump head first into buying a franchise and this can be a very costly mistake so do not be one of them and go into research head on and ensure you ask the right questions and do your area research to the best of your abilities. Best of luck with your new franchise choice!

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Like all things in life, there are always list of the top this or that. Franchises are no different and can be put in list like most popular, range of cost and ease of purchase. Business brokers also have their own favorites to show prospective clients.

If a potential franchise buyer is thinking about buying a franchise, then looking at rankings by various categories makes sense, as it will let them learn a great deal by comparing different franchises. The Internet is a great place to learn a lot from these list in a short amount of time.

Types of franchises

There are many different franchises besides the fast food ones that most people are aware of like the hamburger chains, the chicken franchises and the seafood places. There are many different retail type franchises, service franchises, trade type franchises and tax prepares. In fact almost any business type you can think of has a franchise competitor. Some of these franchises have a very high rate of success. Some may depend mainly on the individual that buys it such as a service business. If the owner is good at prospecting and selling their service they will be successful. It they are not good at it they may not make it, as the franchise is not well enough known to bring in enough customers. This accounts for the lower ranking of many of the franchises a person has never heard of and had no idea they even existed.

Ratings by cost of the franchise

A person can buy a franchise for as low as a couple of thousand dollars and the price goes up from there to well over a million dollars for some of the name restaurants. The low cost franchises seem to be home based and a single person operation. What many of them offer is just a business plan on how to do the business. This can be a steep cost for a plan with no other support or help.

At the high end you get training, on going support, a serious edge on being successful as these franchises have a very high percentage of success.

Popularity of these high end cost franchises also accounts for the fact that they sell at the upper end of the range. The success rate is high so they are popular.

Their popularity means the franchise company can get more money for them than the lower cost franchises. It is all about future success to the new owner and getting his investment back via profits.

Ease of purchase ratings

Low cost franchises are higher in the ratings since it takes less money to buy. Higher cost franchises may be more difficult to buy unless the buyer can arrange financing privately or through the franchise people. An investor group or a very well off private party usually buys the really high price franchises. Low cost franchises will sell on terms as they have little further cost in the franchise. The higher priced one will help a great deal in finding the money for a buyer they feel will do well with the franchise. They have over time developed all kinds of finance help from lenders to investor groups. They are really interested in selling to people they think will be good franchise owners. They want to have networks of successful franchises.

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Since most ink cartridge franchises cost over $100,000 it makes sense to completely check out the pros and cons.

In a retail franchise, the franchisee finances the commercial property, equipment and staff required to run the outlet. Owners of retail franchises tend to operate them themselves, and hire staff only where necessary.

A servicing franchising is also very common. Then you have what is called the executive franchise, who could be a financial advisor purchasing a franchise in well-known financial company, and offering the companies products. Apart from hotels, this type of investment franchising occurs in well-known national restaurant chains and some of the larger retail outlets.

You have to dedicate money, time and effort into your franchise, but you should be secure in the knowledge that many franchises work and provide the franchisee with a good living and a growing business.

If you have looked at franchise opportunities and did some research, then you will have seen the term franchise fee. A franchise fee is what the franchisor charges for use of brand name. The franchise fee is determined by how much the franchisor believes the business system is worth. Sometimes a franchise fee includes training and ongoing support. Finally, party or franchise fee goes into the advertising and marketing budget of the franchise system itself. Compare it to other competing franchises.

The franchise fees are relative to the context. Depending upon other parameters in the franchise agreement, franchise fees will vary. By knowing how to analyze a franchise agreement, you automatically know whether the franchise fee is reasonable or not.

The franchise agreement is probably the most important document in the process of becoming a franchise business owner. A franchise agreement is the legally binding component of any business relationship between a franchisee and a franchisor. The agreement lays out the strategy and plans for operating the business and ensures the franchise will operate identically to other franchises. Although there is no standard format for a franchise agreement, most franchise agreements typically cover two main aspects.

This document details the franchise package including the prices and fees, and the services to be provided by the franchisor. The second part of the contract is typically the franchise or license agreement. It entails the rights granted to the franchisee, the obligations that franchisor will undertake, the obligations and trade restrictions that will be imposed on the franchisee, and termination provisions.

Franchisees should be wary of franchises that offer master franchising. While this speeds growth it also increases the likelihood of failure.

I would agree with all of the points raised and would like to just clarify that they suggest that in depth field support is bad – not in depth sales and marketing support.

Having spent a huge amount of time recently looking into Franchises, one question that always intrigues me is who records franchise failure rates? One of the common myths about franchises is that they are a ‘proven business model’ and therefore have statistically higher success rates.

Most franchise businesses operate under a separate legal entity i.e. corporation, sole trader and trade as the franchise. This just gets recorded, if at all, as a standard business failure.

Unsuccessful franchises are generally financially tied into the contract for the term of the agreement i.e. 5 years. If they wish to leave prior to that then they can be liable for the full fees they would have paid over the franchise terms.

Many franchisees are happy to sign non-disclosure agreements with the Franchise to just be released from their ongoing commitments and walk away. What I really want to know is what statistical evidence is there to prove that franchises have a higher success rate? In an industry that is strongly focused on threatening lawsuits for saying anything negative about a franchise who would ever get to know the truth?

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Imagine investing in your own business and having your cashflow guaranteed… With around 80% of small businesses failing primarily as a result of poor cashflow Network Brand Partnerships has a unique solution.

With fees in-line with other recruitment franchises currently available, Network Brand Partnerships offer incredible added value. Not only do you get industry leading training and business management systems, but their unique full factoring service ensures your invoices are paid in full on the 14th of the month, every month.

”We don’t just support partners (franchisees) with our training and industry leading systems, we go one further and ensure their business has the highest chance of success by offering a full factoring service,” explains Andy Michie, Brand Partnership Director, “We even look after their credit control as well!”

The team constantly monitor the endless regulation and legislation ensuring you are aware of exactly what you can and can’t do. All this support leaves you free to concentrate on running your core business, safe in the knowledge the industry’s most experienced and respected management team are right behind you.

Network Brand Partnerships are currently offering two established and proven niche recruitment business models for you to invest in, CNA International in the executive search recruitment sector, and Network Health & Social Care. Both these proven recruitment business models benefit from industry leading systems and one of the most experienced management teams in the recruitment and franchise sectors.

”We wanted to offer people choice as well as support,” comments Andy. “Recruitment covers so many varying sectors suited to people with very different personalities. For example some people are looking for large financial rewards and a better lifestyle. Others want to make a real difference to the lives of those who need assistance.”

Both the executive search and health and social care niches of the recruitment industry are growing for some rather obvious reasons! With the UK’s increasingly aging population and the Government encouraging people to live at home for longer, more home help is required. High quality search is a multi million pound industry. Continued growth is forecast due to the acute worldwide shortage of proven top management talent.

”Our relationship with the major high street banks means you could borrow up to 70% of the total required to invest in becoming one of our partners. Then because we can guarantee your invoices will be paid on the 14th every month you know you can keep control of your investment,” notes Andy.

Over the last 6 months people have changed what they look for in a franchise opportunity. Network Brand Partnerships are offering a choice of two safe business models to invest in that offer freedom of lifestyle and a guaranteed monthly income, an income you know will arrive on 14th every month.

With this in mind – finding a franchise opportunity right for you is about searching yourself and the options available, armed with the right resources you can be in the position to find the perfect franchise opportunity for life, offering a valuable service to your local community and providing you and your family with the life style of your choice

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The announcement that NHS patients can now ‘top up’ their cancer treatment by buying cancer drugs privately is good news for franchisees of not-for-profit medical insurer WPA.

WPA franchisees provide private health insurance cover including policies designed specifically to help cover the cost of cancer drugs.

WPA’s Franchise Manager, Berkeley Harris, says: ‘There is a huge new audience for these products, among individuals, small and medium-sized enterprises (SMEs) and big corporates. It represents great potential for extra earnings.’

WPA has been central to the debate about topping up NHS cancer treatment and has had the products in place for some time, anticipating the recent announcement.

Its franchisees can offer a modular NHS ‘Health Top-Up’ policy which is aimed at customers who want to make the most of the NHS. As well as Wellness, Hospital, A&E Abroad, Cosmetic and Legal Advice, it includes up to £50,000 of licensed cancer drugs unavailable on the NHS and their administration in a private or an NHS setting.

Mr Harris says: ‘We are already seeing increased demand for these products, especially from the corporate market. Many companies are desperate to offer some form of health care to employees but feel that full-scale medical insurance is too costly.’

WPA is seeking another 15 franchisees to add to its existing network, to ensure that no customer is more than a few miles from one of its representatives.

’We do not look for previous experience in financial services, sales or insurance, but you must be committed to providing ethical, customer-focussed service. Energy, enthusiasm and attitude are key’ says Mr Harris.

’We look for positive people who understand our philosophy – the type who puts the customer before the pound. If ‘get rich quick’ is your style, WPA is not for you while if building a solid and sustainable business is your aspiration – in effect, get wealthy slowly – think about it’

WPA’s focus on customers reflects its roots. It was founded in 1901 by workers in Reading who pooled their savings to pay for healthcare, then only available privately. This was at a time before the modern day Welfare State was conceived; if you did not work or earn, food did not go on the table.

Now the majority of its 300,000 customers are companies or the self-employed, but it remains a not-for-profit provident association, ploughing its ’surplus’ back into customer care and services.

Its not-for-profit status also means that, unlike most companies in the financial services sector, it is not subject to the volatile demands of shareholders. WPA’s customers are at the centre of all that it does. A full member of the British Franchise Association, WPA has also been named as one of the UK’s top 100 companies to work for.

’Our franchisees are an eclectic team including former bank managers, optometrists and soldiers to name a few. All have an empathy with business clients because they too are managing and growing their business’ says Mr Harris, himself a former franchisee.

The £7,500 franchise fee includes in-depth training in WPA’s range of medical insurance products, in order to qualify as Financial Services Authority regulated Appointed Representative; WPA manages all the regulated aspects of the business so that franchisees can concentrate on the needs of their customers.

Also included is continuous business and sales training as well as a business mentor you can call on for help or advice during your first two years who, more often than not, becomes a colleague and ‘friend for life’ with whom to share ideas.

You can work from home or office, building your team and business at a speed to suit you. As well as new business introductions coming from WPA, leads come via word of mouth, financial advisors and networks such as BNI (Business Network International). ‘With a WPA franchise you get the genuine support of the team,” says Mr Harris. ‘It is a case of what you put in is what you get out.’

Linda Whitney is a freelance contributor on Franchising in the Daily Mail and has written about Franchising and Personal Finance for more than a decade.

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Every once in a while, every individual with any ‘get up and go’ decides that it might be time to get up and go – and leave whatever they feel is holding them back in life. A mundane job; the thought that you’re feathering someone else’s nest with your labour; or just the desire to be your own boss can all be strong motivators to consider starting your own business.

Franchising cuts out all of the ‘rock breaking’ involved in making the giant step from employment to being your own boss. Without the support of tried and trusted systems, backed up by the knowhow of many years of honing any successful franchise business model, any individual starting on their own not only has to face the hollow uncertainty and loneliness of going it alone but also the exceedingly steep learning curve of actually running a business, instead of being employed within one.

Companions
Apart from the phenomenal success rate of franchise businesses compared with normal start-ups, being part of much larger team of franchisees as well as the franchisor themselves, means that you’re never left on your own wondering what to do next. You’ll have a constant resource available to discuss issues and opportunities with so that you can concentrate on generating a healthy business rather than agonising over matters that you can’t discuss with anyone.

Four questions to ask yourself
Before you ever consider what business you want to be in you should ask yourself four questions. 1) What is the strongest marketplace I could work within? How sustainable is the marketplace – is it affected by the strength of the economy and disposable income? Could I carve myself a niche within it? Could I be profitable within it? If you can’t reassure yourself that the answers are all positive then you should never consider the next question – Do I want to do this?

Far too often businesses are started by people who’ve ‘always fancied doing this’ or think that ‘this would be a good business for me to be in’, both cardinal sins and with the odds heavily stacked against them if they haven’t addressed the first four questions at the outset and asked themselves if they’re really committed to being their own boss.

Once you’ve done your homework and assured yourself that the franchisor offers comprehensive training, a good business model, a good infrastructure and ongoing support in whatever your chosen role is, only then should you consider making the leap of faith that will launch you on your new career. You can never do enough research, both of your chosen marketplace and of the franchisor – you are after all entering the business equivalent of a marriage and if you’re not going to mirror current divorce statistics then you should do your groundwork well beforehand.

If you’ve planned well, selected a franchise in your chosen marketplace that suits you (are you after a management style franchise such as Prokill or a ‘one man and van’ franchise?), checked that the franchisor is either an Associate or Full member of the British Franchise Association – the regulating and accreditation body – and done your homework, then provided that you commit wholeheartedly to your new business, you’ll succeed.

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If you have availed of a education franchises business, then you most probably know that education franchises business is like any other independent business in the sense that you need to be dedicated and devoted in your business operations. But the main difference between a education franchises business and an independent start-up business is that you would have the necessary support like consultations, business development, and marketing support from your franchisor.

You also do not need to spend a lot of money in promoting your business because the education franchises brand is already established. You would also be able to use of the latest technology and innovations that your franchisor avails of.

After the complicated process you’ve been through in choosing your education franchises business and your registration, the next step you must undertake is to know how to operate and manage your education franchises business properly. You will not encounter that much problems in your business processes since the business model is already laid out for you by your franchisors. You would also just follow the system your franchisor has developed. You would notice that all education franchises business of different international brands have the same standard, the same concept, and the same procedure wherever they are found in the world. Your franchisor expects the same thing from you so you have to follow the guidelines stated in your agreement. Doing so would likewise give you a competitive advantage against companies with similar products or service because your brand is already known for quality control.

You should also have a concrete plan of actions in managing a education franchises business; the aspects that you should focus on should include environmental scanning so that you will know your advantages and weaknesses. Likewise, the marketing, financial, operational, and socio-economic aspects of your business should not be ignored. In addition, you should have a proper waste management for your education franchises business; usually there is already a system in place that you should follow with regards to waste management. If not, then see the regulations in your area in the sanitation standards and follow it accordingly.

On the other hand, managing a education franchises business would also require you to deal with employees on a regular basis. You should have a proper human resource management and a clears set of guidelines for your employees to follow. It is also essential that you let your employees know your company’s vision and mission for them to achieve that goal. In addition, having a good employer-employee relationship is important to ensure a long-term success in your business. Whether it is an independent business or a education franchises business, remember that a business will not succeed if you do not invest time and effort on it.

There is really no specific success formula that businessmen can follow, but what you should do is to find out the specific needs of the market and how you can best provide for the product and service your market needs.

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Part time franchises can be enjoyed by the increasing sector of society that is looked for an additional income stream or who simply do not have the time to go back into full time employment. This could be due to home demands or demands of a physical nature. Let’s take a look at the options available and how well they can work for you.

1. Vending machine franchise.

These take very little time to run and most of that time is simply restocking the machines once per week or more depending on how popular the machine is. They can vary widely from drinks and snack machines through to naughty (tee hee) vending machines, toy and gift machines, business card machines, and even weight machines fall into this category. quite simply anything which requires placing a machine in a store or building.
They tend to be fairly expensive for what they are due to the high cost of the machines but you can expect to pay anything from 8,000 – 20,000 pounds for 6 machines with options to purchase more. In many cases the franchisor will find you placement or have agreements in place with the major supermarkets and malls etc but also in some cases you are required to place them yourself.

Pros: Easy to maintain, little work.

Cons: Placement is everything. 6 machines in bad placement may only make you a handful of change each week.

2. Internet Franchises

It is debatable whether you can group Internet Franchises into the part time category but quite simply most internet franchises you get out of them what you put in. There are 3 distinct categories of Internet franchise. 1 Selling a product. 2 Selling a service 3. Providing a service.

Examples:

1. Well you can use your imagination on selling a product, everything from clothes to jewellery.

2. Services such as web design (you do not have to do the designing)

3. Running a local directory providing information to local people about the local area

Prices of course vary but the standard Internet franchise in the UK goes for around the ten k mark, rising to around 30k.

Pros: Work from home, can increase to full time.

Cons: Many are new and not established. Be wary of “made to franchise” internet franchises which may go under within a few years, taking your profit with them.

The fact is: Categorising part time franchises is virtually impossible. Whereas some franchises are full time in their own right, many of the home based franchises can be run to your own needs and expanded if time becomes more available.

The main thing to look for is what the franchisor requires from you. Obviously paying a large fixed chunk of your monthly earnings may not be possible or viable if you only want to work 15 hours per week so you want your monthly fee to be based on earnings. When talking to the franchisor remember to discuss with them your requirements and how it may affect the business you are buying into.

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The concept of franchising has brought multifarious opportunities for individuals who posses the drive and zeal to make it big in business. Selling of both commodities and services are covered under franchises. While for selling of products one needs to be adept in certain marketing and interpersonal skills, for selling of services a person must have knowledge, intelligence and adaptability to understand the concepts of services and also to communicate those concepts to the potential customers. Management franchisee is one such area that offers individuals with knowledge and intelligence to unleash their potentials.

There are many advantages that attract the most talented professionals in management franchisee. Some of them are listed below:

The Franchisor – Often it is the franchisor that works as the biggest motivating factor for professionals to take franchise opportunity. In case of management franchisee one gets the opportunity to work with reputed organizations which are respected in the corporate sector. Therefore individuals associated with these organizations also enjoy higher status and respect in the society.

Structured Operation Process – In management franchisee the overall operations run under a well-defined system. Since there are professionals involved in the entire process, this form of franchises minimizes the hassles of doing a business. This is even more beneficial for people who are new in this business.

Low capital Investment – Being operational in the services sectors, most of the management franchises do not involve dealing with products. Here one requires managing a team of professionals to expand the business of the master franchisor. Since there is not much investment in products, warehouse and transports, this type of franchises require lower capital investments.

High return on Investment – Lower capital investment and low operational costs brings higher return on investment, which is one of the major attractions for many individuals to seek management franchise opportunities.

Corporate Structure – Many people are motivated to work in a corporate atmosphere. For them management franchises are often a preferred choice. In this field one can work highly motivated management of the parent company as well as a team of workers that posses professional attitude and discipline.

There are several other advantages that a person can get while running a management franchisee. Management of business is a vast area and covers almost all the services. Therefore franchise opportunities available in this field are quite a plenty. If you are looking for suitable franchises in UK, there are numerous sources available to help you in this purpose. Nowadays, internet has created wider scope to find the right king of franchise opportunities. So if you are interested to start a new management franchisee, it is the right time to take the first step and start your research.

As well as there being many advantages, care must always be taen when buying a franchise. With many on the market there are always franchises that are there for the franchise fee and not to expand their network, in these cases ongoing support and marketing is not the top priority and you may well find yourself in the position where you have spent a ot of money for very little in return

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