How to Franchise a Business – Tips From an MBA Franchise Attorney and Former Franchise Owner

January 12th, 2012 by admin No comments »

WHY COMPANIES FRANCHISE A BUSINESS MODEL
Imagine opening 100 new business locations without having to foot any bills for real estate, equipment and build out costs or taking on any risk. Even more, imagine managers running all those locations, which are just as committed to growing the company as you – and not having to pay them a dime. In fact they pay you money for the right to operate your business model.

For many companies, creating a franchise program is a sensible way to achieve rapid, profitable growth without giving up any control or ownership. Going from a single location to a dozens or even hundreds is possible and well-documented because franchise owner-investors put up all investment capital, shoulder all risk and assume all day-to-day operating responsibilities. It’s expansion, using OPM – Other People’s Money.

ENTERING A NEW BUSINESS
The bad news is a company planning to franchise must realize it is entering a new business, offering an entirely different service (training & support) to entirely new customers (business owner-operators). This new business requires different skills, abilities and expertise. In the new business of franchising, it is critical to develop effective evaluation, documentation, mentoring, training and consulting skills.

THE FRANCHISE FEASIBILITY ANALYSIS PHASE
An indispensable step before any franchise a business development program gets underway is an analysis of the concept and business model. Has the concept been sufficiently proven in the marketplace? How profitable are existing prototypes or company-owned outlets? Franchising will not solve existing problems, it will only intensify them. Franchising is not a way to raise capital, get rich quickly or expand a business with existing problems. There must be sufficient profitability in the business model so that royalty and other payments can be made and leave the franchise owner with a sufficient profit.

THE FRANCHISE STRATEGIC PLANNING PHASE
A successful franchise development program begins with a solid plan – a foundation for franchising. Often there is little or no strategic planning with new companies entering the franchise industry. This is because they utilize the services of a franchise consulting firm or franchise attorney, where little or no attention is paid to critical strategic planning issues. What is called for is not a traditional business plan, a rather thick document that normally does nothing but collect dust in the dark drawer of someone’s desk. More important than a business plan is a strategic plan – a vision of the franchise program together with a limited number of concrete, achievable action steps. » Read more: How to Franchise a Business – Tips From an MBA Franchise Attorney and Former Franchise Owner

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Franchising Business Plan

January 11th, 2012 by admin No comments »

You can’t wait any longer to fire your boss? Are you in hurry to be your own boss? Instead of starting from scratch, you can always take the short cut of buying a franchise.

Franchising is an arrangement whereby one party (the franchiser), which has established a proven way of running and managing a business, licenses another party (the franchisee) and gives him the rights to operate in the same business format, trade, service mark or trade names. The business arrangement involves a legal contract between the two parties. There are three components of a franchise:

  • A stipulated way of operating the business
  • A distinctive trade or service mark
  • Fees – joining, on going and royalty

Franchising has many advantages. In addition to giving you a faster and easier entry into business, you also can enjoy:

  • The security and experience that the franchiser and franchises within the system offer
  • The benefits of an established trade or service mark
  • The benefits of a tested operating system
  • The benefits of joint advertising and promotion
  • The support of the franchisor (training, management, business plan, research and development, etc) – Reduced purchasing costs
  • Less hassle in preparing a business plan
  • You become part of a franchisees network and you’re all working as a team toward the same goal.

The advantages of franchising must come with a price, which is an initial franchise fee. This fee is usually payable up front to the franchiser. It also involves the periodic payment of royalty, management fees or renewal fees as well.

As a franchise business you have to operate strictly in accordance with laid down procedures and premises that must be in a specific design, thus the franchisee often has little control over his own business and how much starting capital he needs to come up with. The figure will be determined by the franchiser who will also be supplying the equipment, systems and arranging for the design and renovation of the premises. » Read more: Franchising Business Plan

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Plan Ahead Events Franchise Review

January 10th, 2012 by admin No comments »

Plan Ahead Events is a franchise business opportunity that helps organize meetings, conventions, trade shows and a host of other get together social and business events do just that… get it together. Here is a simple review of the franchise business and opportunity.

Plan Ahead Events is a franchise business opportunity in the business of helping everyone from family members to clubs and businesses literally plan and host there events. Whether it is a trade show, convention, family reunion or a large business meeting, this opportunity will training you to put it together. The cost to start this franchise business is a liquid investment of $17,000 and up to $25,0000 depending on the city and region you are from and will be providing your services too.

This full service management opportunity will come with full training and ongoing support to help you maximize your return on your large investment. This event planning business will come with the requirement of at least some natural and learned skills such as time management, organizational and ATTENTION to details. PAE does provide help with the management with your local suppliers, vendors and sponsors.

The Plan Ahead Events is a legitimate franchise business opportunity that some could find success with. This particular opportunity would be most suitable however for those in larger urban areas with the possibility of a large clientele. For those looking to start this business should also consider creating and branding this business online through dominating their local search engine as this is becoming the most popular platform for many to search for services of this particular business and industry. » Read more: Plan Ahead Events Franchise Review

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