Franchise Opportunities: Purchasing A Franchise By Dubai Business Minds :: Franchise Opportunities: Purchasing A Franchise Nov 2, 2004, 11:56

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Franchise Opportunities: Purchasing A Franchise

Franchising has a number of appealing features for prospective business owners. Primarily, the risks of opening a business are reduced because of easy access to an established product and a proven method of marketing.

Franchising has existed in one form or another for over a century; in recent years enormous growth has occurred in the number of franchises. Industries relying on franchised business to distribute their products and services touch every aspect of life, from automobile sales and real estate to fast foods and tax preparation.

As a matter of fact, franchises have the highest success rate of any type of business start-up, which adds to their appeal. However, buying a franchise does not in any way ensure instant success; unless you are prepared for total commitment of time, energy and financial resources, it is not for you.

Definition

A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or advertising symbol and an individual or group seeking the right to use that identification in a business. The franchise governs the method for conducting the business between the two parties.

In its simplest form, a franchisor owns the right to a name or trademark and sells that right to a franchisee. This is known as product/trade name franchising. In the more complex form, business format franchising, a broader, ongoing relationship exists between the parties. The franchisor provides a full range of services, including site selection, training, product supply, marketing plans and sometimes financing. Generally, a franchisee sells goods or services supplied by the franchisor or sells goods or services that meet the franchisor's quality standards.

Advantages Of Purchasing A Franchise

• Franchising offers quick access to an established and well-proven method of marketing, which reduces the risk of opening a business.

• The franchisee purchases, along with the trademark, the experience and expertise of the franchiser's organization.

• The franchisee's standing with local financial institutions is strengthened.

• Franchisors offer training and management assistance.

• The franchisor offers experience in facility design, layouts, displays, fixtures, marketing and advertising.

 Disadvantages Of Purchasing A Franchise

• Franchisors have required, standardized operation and management techniques. If you prefer to be an independent operator or prefer to do business using your own methods, franchising is not for you.

• A franchisee loses his or her identity to the benefit of the franchisor.

• The franchisor does not share in any losses but does share in the profits.

• The franchisee usually has to purchase all goods and supplies from the franchisor only.

• The contract between the parties is usually to the benefit of the franchisor.

A Franchise Disclosure Document

Franchise sellers provide certain information in a detailed disclosure document to help a prospective buyer evaluate the franchise opportunity. This information includes

• Names and addresses of other purchasers.

• A fully audited financial statement of the franchise seller.

• The background and experience of the key executives of the franchisor's staff.

• The cost required to start and maintain the business.

• The responsibilities you and the franchisor will share.

A good franchisor usually encourages prospective franchisees to visit and talk to other owners of the franchise. This certainly should be done!

Other Considerations Before Purchasing A Franchise

An attorney should assist the prospective franchisee to evaluate the franchise package. An accountant may be needed to determine the full costs of purchasing and operating the business, as well as the potential profit to the franchisee.

Before purchasing a franchise, carefully consider the level of independence you will maintain, how comprehensive the operating controls are, and the full costs of purchasing the franchise. Also, be sure to ask about the terms and conditions for reselling your franchise.

Although the success rate of franchises is high, very independent people with their own concepts of operating a business may not be the type to open a franchise.

Franchise Opportunities:

• Franchise Opportunities at Franchise Direct: Franchises, Franchise Opportunities - Franchise Opportunity at Franchise Direct. ... As well as our franchise directory the site includes a variety of franchise information, advice and guidance

• FranInfo - The UK Franchise Directory - Franchise Opportunity &  franchise directory. The site includes a variety of franchise information, advice and guidance

• Franchise Opportunities: Directory of Franchises and Businesses Opportunities - Franchise Opportunities provides a comprehensive franchise directory and franchise information database for the entrpreneur and business professional.

• Be the boss - Franchise Business Opportunities Directory - Leading franchise business opportunity directory. ... Browse Opportunities by: Alphabetical Directory; Category; Investment Level; Featured Franchises.

• Franchise information. Start your own business by looking at Franchise Opportunities - Request free information from thousands of great franchise and business opportunities! ... Premium Franchise Opportunities

• Franchises - Franchise Business for Sale Directory - Franchises and franchise business for sale directory. Search a ... business opportunities. Franchise Gator: Franchise Business Sale Directory

• Franchise.com - Franchises, Franchising - ... Category, New Arrivals Star Opportunities Premier Listings Standard Listings Store. Alphabetical Directory Resale Franchise Directory Lender Directory

• Franchising.com - Franchise Opportunities - Detailed information about various franchise opportunities, and buying or selling a franchise, complete with an attorney directory and other business resources

• Franchise Directory - Franchise information directory site for finding franchises, franchising and franchise issues.

• Google Directory - Business > Opportunities > Franchising -  in Canada and the United States. Franchises-1 - Franchise directory listing franchise opportunities.

• Franchise Business Opportunities at USA Franchise Directory - USA FRANCHISE DIRECTORY™ The Official Source for Franchise Opportunities. It's All Here at Franchise Directory ! ... Welcome to USA Franchise Directory

• Yahoo! Directory: Franchises > Franchise Directories - 100 Franchises Franchise Opportunities - directory of franchise opportunities. ... Business Franchise Directory - browse profiles by name, category, or investment.

• Franchise Directory: Entrepreneur's Franchise Search - Franchise Search - Franchises - Franchise Rankings - Franchise Opportunities - Franchise Directory, Franchise Opportunities Directory. Automotive Franchises

• Franchise Works Franchise Franchises Franchise Opportunities - Salon, Check Cashing, Staffing, Maid Service, Ice Cream, Home Business Opportunities, Consulting, Nutrition, Health, Franchise Directory, Mail, Accounting

• Franchise and business resource directory - Nettizen.com is a top franchise and business resource directory .Browse the web’s largest franchise database, research top franchise opportunities

• Small Business Franchising Information at Business.com - Financial Freedom. Businesses For Sale Franchise directory with hundreds of business opportunities for sale. Expert Business Brokers

• Franchises, Franchise Information, and Franchising Opportunities - Franchise directory listing over 1000 franchisors, attorneys, consultants and service providers. Detailed company profiles. ... Franchise Directory

• ranchise information. Start your own business by looking at Franchise Opportunities - Request free information from thousands of great franchise and business opportunities! ... Premium Franchise Opportunities

• Franchises - Franchise Business for Sale Directory - Franchises and franchise business for sale directory. Search a ... business opportunities. Franchise Gator: Franchise Business Sale Directory

• Franchise.com - Franchises, Franchising - ... Category, New Arrivals Star Opportunities Premier Listings Standard Listings Store. Alphabetical Directory Resale Franchise Directory Lender Directory

• Franchising.com - Franchise Opportunities - Detailed information about various franchise opportunities, and buying or selling a franchise, complete with an attorney directory and other business resources

• Franchise Directory - Franchise information directory site for finding franchises, franchising and franchise issues.

• Google Directory - Business > Opportunities > Franchising -  in Canada and the United States. Franchises-1 - Franchise directory listing franchise opportunities.

• Franchise Business Opportunities at USA Franchise Directory - USA FRANCHISE DIRECTORY™ The Official Source for Franchise Opportunities. It's All Here at Franchise Directory ! ... Welcome to USA Franchise Directory

• Yahoo! Directory: Franchises > Franchise Directories - 100 Franchises Franchise Opportunities - directory of franchise opportunities. ... Business Franchise Directory - browse profiles by name, category, or investment.

• Australian Franchise Opportunities Exchange - Franchise Directory

• Franchise Directory - Franchise Opportunities - Franchises Directory