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The purchase of a courier franchise business is different from the purchase of an independent business. As a franchisee you will be party to a long-term relationship with your courier franchisor and you will agree to run the business in accordance with the franchisor’s system.

Buying courier franchises has the advantages of offering many benefits, such as:

A uniform, consistent business that often relies on a successful formula

Support from the franchisor in respect of knowledge relating to management, industry, marketing, advertising and buying power

Use of an already established business name and format and a reduction of business risk

It also involves the payment of fees and/or percentages of turnover to the franchisor, a reduction of independence through franchisor control of management, and there may be factors that adversely affect a franchisee that are outside its control, e.g. reputation risk.

Before buying into a franchise you will need to evaluate the franchise opportunity. You will need to assess the business itself, the franchisor, other franchisees within the system, financial matters, what your obligations and entitlements will be, and decide whether you want to be a franchisee. You will need to consider the advantages and disadvantages of a franchise business, and have read and understood the franchise agreement and disclosure document provided by the franchisor.

Make sure you obtain relevant information

The following are important factors you must give consideration to.

The information provided in the disclosure document. This will give a useful insight into the current status of the franchise system.

The business model – How successful is it? Does it have a solid business plan and marketing strategy? Is there a demand in the marketplace for the goods or services on offer? Are there other competitors?

The track record and/or reputation of the franchisor – How long has it been in the business? What are its motives for franchising? Has it complied with the laws in relation to the business?

The support the franchisor will provide to you – Product supply, service support, advertising, marketing, reputation, site location, operations manual, policies, guidelines.

How other franchisees are faring in the same network? The franchisor is obliged to provide you with details of other franchisees in the network in the disclosure document. You should be able to contact franchisees directly and ask frank questions about their experiences.

How much will it cost? This includes start-up costs, working capital, operating expenses (including administration, marketing, staff, signage, customer service expenses), royalties, and other associated expenses.

If goods are supplied by the franchisor – What are the terms of trade? Can you purchase goods from outside the franchise network?

The franchise agreement – What is the term of the franchise? Can it be renewed? What happens when the franchise ends? What are your obligations?

The location of the courier franchise – Where will your franchise be located? Is there a lease on the property? If so, can it be assigned? What territorial rights will you have? Are they exclusive? Is the territory clearly defined? Will you have a choice of territories?

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Estate agency franchises are one of the more profitable and popular franchise choices amongst prospective franchisees/franchise seekers. Despite the recession and credit crunch looming over us and house sales dropping, there is still a huge need for housing services as there are millions of houses across the UK, funnily enough they have not vanished and these services are still in high demand. With rentals on the increase as less people are purchasing houses or can not sell their current house the need for estate agencies is as high as ever before, especially in the rental sector of the estate agency industry.

As with all franchises, you need to research your estate agency franchise with great care. Areas of research may cover the following, not limited too but a good start:

1. What territory you are to be given and how large an area this covers
2. Are they allowed to sell more than one franchise in your territory
3. How well are other estate agencies within the franchise network performing
4. How are leads generated
5. Do they do national marketing and if so do you have to contribute towards this
6. Do they deal souly with house sales, rental or do both
7. How long have they been operating
8. How many other agencies from different franchises are within your territory
9. How much you will need to give them each month for a licensing fee
10. What the turnover rate is of franchisees.

Doing your due diligence properly will ensure that when you buy into your estate agency business you are sure that it is the right opportunity for you. Many people go in head first without the proper research and come away with a franchise that they are either not qualified to operate or is one that is not a profitable opportunity. As you will be spending large sums of money on buying into your estate agency franchise it is imperative that you are sure it is the right opportunity for you.

Franchise brokers and consultants can be a good help with some of this, they take a fee from the franchisor for matching the right franchisee with the right franchise and can really boost your chances of success. With a franchise broker you will be asked a series of questions and a brief background history of your employment must be given as well as interest and hobbies etc, armed with this information they can do the research or you and start to narrow down what options they feel are available for you. With this narrowed down list you can then be in a position to make an informed choice.

Best wishes and happy hunting for your estate agency franchise! Remember, due diligence is the main key to your success. With the right research you can have a profitable business for life in an industry which has been around for a very long time and will be for a long time to come. To your success in franchising!

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Kids franchises have to be one of my favourite franchise opportunities on sale in the UK today. Quite simply they are all bright, fun, loud, in your face and in all cases I have seen, run and managed by caring and considerate franchisors.

Ranging from education franchises through to care, sports, music and arts there are a multitude of options to choose from.

Deciding on which one is for you can be difficult so really it’s a case of matching your own interests with your investment level to the corresponding franchises to narrow your list down some. Hopefully after doing this you will have at least 3 to ponder over. From here it is time to get a collection of franchise packs and begin your research.

With your 3 + packs in hand, review the procedures, training options and monthly management / license fees and weed out any which are immediately unattractive to you. What you should be left with are your prime choices and it is now time to contact the franchisor direct to organise a meeting.

Come prepared! Before you go write down a list of questions, some / all of the following should be included:

1. How long have you been in business / how long have you been franchising? Reason: You want to establish 2 things. 1, was the business a long term profitable company BEFORE they franchised or were they a “made to franchise” business and 2, Are they a new company starting out in franchising, if so then they may well be a little inexperienced.

2. How many current franchisees do you have and can I have a list of ALL their contact details. Reason: You can pick a few at random to phone and ask them about their experiences, the ups the downs etc.

3. How many franchisees HAVE you had… i.e.. What is the turnover rate of franchisees. Reason: A turnover rate shows an unhappy franchisee base.

4. Out of the current franchisee list, how many are profitable according to your financial projections? The reason for this is: Some franchisors boast a large franchisee base but this could be due to their selling powers and not the profitability of the franchise.

5. What is the policy on

a) Territory size
b) Exclusive territory
c) Reselling my franchise

6. What previous companies have they owned and were they franchised businesses too. The reason for asking this is: Are they in the habit of creating businesses to franchise, making some money and moving on leaving their franchisees in limbo. Yes, this happens.

7. What marketing campaigns are done on my behalf and what will I be required to do myself? Here you are looking to learn more and national advertising done by the franchisor and what systems they recommend for local advertising.

These are just a few questions and you will have many you will want to ask however I would recommend getting the answers to the above so you can feel sure that this is a long term opportunity for you. Franchises are not a cheap option by any means; however either is setting up a business from scratch. You are going to be spending anywhere from £8,000 to £250,000 of your hard earned cash or loans so you really want to be sure you are spending it in the right place.

All that said – I could not recommend more a sector of the franchise industry to get involved in that kids / children based franchises. Definitely a respectable, fun and profitable option

Popularity: 1% [?]

Delivery franchises are a good business model that lets you tap in the resources of a successful business. All you need is to meet the requirements of your franchisor and you’re set to start a brand new delivery franchise. A delivery franchise also minimizes the risks of failure by letting you use the tested procedure of your franchisor. You need not worry about how to run the delivery franchise because the necessary training will be provided. Likewise, you will also be able to source the raw materials from a trusted supplier so you need not worry about the quality, price, and delivery options of your supplier because all these are already made available for your convenience.

While statistics suggest that the success of a delivery franchise is greater than that of an independent start up business, it is also important to note that this success cannot be easily duplicated without perseverance, dedication, and hard work. These characteristics are needed to succeed in this endeavor. The success of a delivery franchise would also be dependent on other factors like the location, the demographics in your area, and the living standard where your outlet is located. For example, if you are selling high end products then it is not going to sell in a low end market. But the franchisor would also give you assistance in determining which area their franchise would most likely be successful so the risk of establishing an outlet in a wrong location is minimized.

Delivery franchises also gives you several benefits including being able to use the trade name, the logo, the marketing concept, and you will also benefit from the advertising that your franchisor does. Another advantage you will gain from availing of franchise opportunities is that the products or service you will sell already has public recognition and acceptance. In addition, your franchisor will provide for the necessary training that you need to run the delivery franchise.

The franchise cost of availing of a devlvery franchises opportunity would vary greatly on how popular the establishment is. The kind of product or service that you are interested in franchising would likewise be a factor on what the franchise fee is going to be. Most franchisors also require that you pay a royalty fee to them for every product that you sell. The royalty fee can range from two percent to ten percent, sometimes even greater depending upon what you agreed upon. But depending on the kind of establishment you are interesting in franchising, the royalty fee is overall a small price to pay to have the right to run a successful and popular business establishment.

Most delivery franchises also have a successful formula that enables them to compete in the market. And being a franchisee of these establishments will give you the edge over the competitors in your area that provides a similar product. It is no wonder then that franchising is a widely popular business model that is adapted from a variety of business establishments all over the world.

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We have all heard it, recession proof franchise. It is being used by hundreds of franchisors now in their marketing material but what does it really mean?

Quite simply it means a business which is not affected by slow growth and cuts in spending. This sounds as simplistic as it does stupid, how can a business not be affected; surely all businesses must be affected to a certain extent? It is however possible that where someone may not pay thousands of pounds for a holiday, instead they may pay a few hundred pounds on a new TV (home luxuries), and if we go down the line a bit, someone with less resources may not pay hundreds of pounds for a new TV but may pay for a new Xbox game, and one step further, someone who can no longer pay £30 for a new Xbox game, well, in all intents and purposes is broke.

There is no such thing as a recession proof business. Every business is going to be affected in one way or another, the recession proofing of a business is entirely dependent on the upper management’s ability to adapt to current spending and demands. This however was not the subject of the article.

How can the franchise industry benefit from an economic downturn? Again we have a simple answer:

As more people are being made unemployed, many with redundancy packages, there are more people available for employment and purchasing a franchise, a ready made business to take the place of their old job and one with a track record of success. In particular B2B franchises are taking off as seeing an increase in sales due to more small businesses being set up to cope with the demand of higher unemployment

Is it as simple as that though? No, of course not. Although franchise sales “may” rise, and I am expecting this to be the case come the summer of 2009, the income that it is possible to generate per franchise is likely to drop. This does not mean the franchise business is not a viable option but it does mean that the expected turnover figures for each franchised business should be modified accordingly. This drop in turnover for each franchise outlet will mean a decrease in the overall turnover for the franchisor, a drop in their monthly % of profits and despite the expected boost in franchise sales cutbacks are likely to be made in areas of IT, and staff. The only area I foresee staying the same is marketing. Marketing gets pride of place in franchising, most franchisors get a monthly marketing fee from their franchisees and as such their overall budget “should” stay on a relative plateau.

All franchises are based around expansion and branding, if the expected increase in franchise sales happens, along with it comes increased brand awareness as the network grows. This is good news for franchise buyers and existing franchisees as more money gets added to the marketing pot and due to the increased presence across territories the brand goes through a burst of organic growth.

The Good News

For the franchisor
An upsurge in unemployment and redundancy packages could lead to higher franchise sales

For the franchisee
It could well be that despite a change in peoples spending habits; organic growth and paid for marketing could be a real boost for franchise owners and buyers.

The Bad News

For the franchise buyer
For those franchise buyers who do not have the required capital, and/or are experiencing negative equity on their house, raising the capital through the normal method of bank loans could prove tricky.

For the franchisee
Expected turnover could see substantial drops in 2009/10

For the franchisor
% of profits from franchisees are likely to drop over the next 2 years (boosted however by franchise sales)

Popularity: 2% [?]

Several years before, if one wanted to start his own business, his natural course of action would be to do it on his own, depending largely on his business instincts, limited know-how, and observation of the market. The advent of franchising, however, brought a big change in business. Many have since become rich because of franchising. Franchising has indeed many advantages.

Modern franchising came to prominence with the rise of franchise-based food service establishments. This trend started as early as 1919 with quick service restaurants such as A&W Root Beer. In 1935, Howard Deering Johnson teamed up with Reginald Sprague to establish the first modern restaurant franchise. The idea was to let independent operators use the same name, food, supplies, logo and even building design in exchange for a fee.

The growth in franchises picked up steam in the 1930s when such chains as Howard Johnson’s started franchising motels. The 1950s saw a boom of franchise chains in conjunction with the development of America’s Interstate Highway System. Fast food restaurants, diners and motel chains exploded. In regards to contemporary franchise chains, McDonalds is arguably the most successful worldwide with more restaurant units than any other franchise network.

Some of the advantages to owning a franchise can be:

You Own the Business – A franchise is a duplicate of a successful business concept. The franchisee owns the outlet, therefore, he hires his own employees and oversees the management its day-to-day operations. He has high stakes in the business because his money is involved.

Ready Market – When one buys a franchise, he is buying an established concept that has a good record of accomplishment. The franchisee is allowed the use of the company’s trademark and brand name. Because of this, the company is, in effect, giving the franchisee a license to market its products carrying a brand that is already familiar with the consumers. Many popular franchises have instant brand-name recognition and have created a loyal following among consumers. Therefore, the franchisee is getting into a business that already has a ready market.

Continuous Support from Franchiser – Although running his own business, the franchisee can tap the services of the parent company anytime he needs assistance. The services of the head office organization are available to him, too, whenever he needs help. Furthermore, many companies have field operations personnel whom the franchiser can call on to help him deal with any problem he may encounter in the operation of the business.

Most franchises being offered nowadays are turnkey operations. Upon the signing of the franchise agreement and payment of the franchise fee, the franchisee receives the equipment and supplies required in running the business. Furthermore, the franchiser provides assistance in identifying a good business location for the new outlet. The company assists the franchisee in negotiating his lease, preparing plans for outlet layout, shop fitting, and furnishing his store. It also provides assistance in determining the appropriate stock inventory for the opening of the business. This kind of support and the other benefits under the franchise agreement is what sets franchising apart.

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In recent years in the UK franchising has greatly increased in popularity. In the last year alone the contribution of franchised business to the economy increased by over £5 billion to 12.4 billion. There is no doubt that franchising is now a significant part of the UK economy.

A basic definition of franchising is that it is an agreement where a company sells the rights for another person or group to sell its products or services. However in reality franchising is more complex and there are a number of different types of franchise agreement.

Although every franchise agreement will differ to some extent in general franchising can be divided into five distinct categories -

Manufacturing Franchises

In this type of agreement the franchisor allows the franchisee to manufacture its products and to sell them using its brand and trademarks. This type of arrangement is particularly common in the food and beverage industry. The franchising company receives an initial fee and depending on the agreement may also receive an additional fee for every unit of the product sold.

Business Franchise Ventures

A business franchise venture is an agreement where the franchisee purchases and distributes products for the franchising company. The franchisor typically locates and provides the client base for the franchisee to manage. An example of a business franchise venture is the vending machines that can be found in many public areas and workplaces. The franchisee buys the vending machines, maintains them and takes a share of the machines takings.

Product Franchises

In this type of franchise the franchising company uses the agreement as a method for the distribution of its products. The franchisee is given the right to use the brand name of the franchisor to sell its products. In product franchises the franchisee will pay a franchise fee or may alternatively agree to purchase a minimum amount of stock to sell on.

Business Format Franchises

This is the most complex type of franchise agreement and involves a broader relationship between the franchising company and its franchisees. In this agreement the franchisee’s investment includes the purchase of the operating processes of an existing business including its brands and products. Training and support is also likely to be provided to the franchisees. A common example of business format franchising is.

Part Time Franchises

Not everyone wants to work full time and there are numerous reasons for this, perhaps you are looking for a business to supplement your existing income or perhaps if are busy with childcare or other daily duties that restrict the hours you are available for work. If this is the case then there are literally hundreds of part time franchise opportunities out there to choose from, ranging from vending machine franchise through to internet based franchises. Most part time franchises can be taken full time and it is all about how much time you want to put into the running of them. You could for instance go from working 10 hours per week up to 50 and bring it in line with the pay you would normally expect to receive from full time employment, except of course that you are your own boss!

With many UK franchises to choose from it is best to take a look at several and research each one, for this I recommend using one of the many franchise directories out there to help you narrow down your choice.

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i just but a dollar store chain in america but i might sell it for the wal mart- franchises, what should i do?

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I have contacted franchise consulting companies like Francorp.com and Frandocs.com but they are expensive.

I really need a sample or example of a franchised or chained coffee shops’ operations manual and how it is written, what is included and how it is formatted.

I am looking for an example of how an ops manual is put together and what is, and is not, included as far as the content goes. But it needs to be a cafe or restaurant’s ops manual. A coffee franchise would be fantastic.

I have a few samples of the table of contents for a typical ops manual, but a full sample would be great. Thanks for your help.

Popularity: 5% [?]