10 Key Factors In Selecting A Franchise

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The article [http://www.blimpie.com/own_a_store/own_a_store.html restaurant franchise opportunities] is also known as Avoiding a RIYOT, the acronym RIYOT stands for REPENT IN YOUR OWN TIME. The point being, that if you pick the wrong business in haste you could be regretting the decision for a long time to come. We hope by reading this a... Before buying a franchise business there are a great number of things to consider. This short article provides you with 10 factors you must try to find from the franchise business that can help you avoid a number of the major problems. The article is also known as Avoiding a RIYOT, the acronym RIYOT stands for REPENT IN YOUR OWN TIME. The point being, that if you pick the wrong business in haste you could be regretting the decision for a long time to come. We hope by reading this report we could stop at the least some individuals building a very expensive error of thinking. Hope you will find this helpful. This number has been published by a really knowledgeable franchisee. Most of the data here's predicated on direct knowledge, near misses and the experiences we've seen from the trenches. - How could your franchise business be afflicted with economic cycles? (eg as an example within a general economic depression or worse a lengthier period recession). All companies are cyclical and as you'll take note from expertise there are times of prosperity many years) (that can last and there are times when world wide, national and local facets end in financial slowdowns many years) (which can also last. What effect will an alteration in the economy have on your own future business? Usually luxury products and services and services, non-essential services and products are affected a lot more than those viewed as cost saving or crucial goods or services. - How dependent could be the business on area/socio-economic mixture? Many companies begin from a single business in a single place. The success of the initial operation and probably a future pilot tend to be the cornerstone for your team operation. Though the area the business enterprise were only available in and the area you'll run the business in tend to be different (different combination of properties to organizations, blue collar to white collar workers, large income to low income, different competitors and so on). Measure the effect of these differences on the earning potential. - Will the team operation as a whole survive if there is a of ownership or change of management? Some business operations only succeed due to the influence of the founder or the current owners or management team. What would be the impact of an alteration in the owner, manager of the business enterprise? Do you think the product and operating model would work equally well regardless of whom owned/operated the business group? A change of management may well have the effect of turning a well run business into a poorly run business. - Does the franchisor have the right management structure in place to be proactive in developing the business enterprise? New ideas and approaches to business are an essential and necessary function of the franchisors remit for the long term survival of the business. Ask about their experiences and how they intend to keep competitive over the long term? What ideas have they got for product/service growth? What flexibility will you have as a franchisee to change the product mix, marketing or pricing strategies? - Profit margins must be high and above the normal levels if you are going to be able to pay the franchise fees as well as yourself. When reviewing financial forecasts for the business enterprise you'll need to establish the net profit after any franchise fees are paid. Usually figures are estimated that look good, but don't range from the franchise fees you'll be having to pay monthly. Depending on the business these could contain both fixed amounts and proportion charges based on return. - The merchandise or services being offered from the franchisor needs to have some part of individuality about them which will be special to the franchisor and essentially complex. If your franchisor isn't supplying a special product or service, then it's very likely you'll have or will soon be getting strong competition from other companies, independent stores and chain stores. Available a franchise newspaper and you'll note that many companies have many franchise companies included (eg lawncare, house rental, food sites and so on) and they give virtually identical products. Issue this in when considering the income levels offered by your franchisor, in case a player starts a few weeks will your income potential halve? - Supermarkets certainly are a good plan for some folks nevertheless you don't wish to be in opposition against them. Supermarkets and major chain stores will reach in to markets and markets which have a top amount of productivity and/or will develop their client numbers (eg image handling, dry cleanup, magazines, books, DVDs and so on). When there is enough income supermarkets will look at any home based business and will frequently have the resources to enter industry. Many small enterprises have closed due to the strength of the supermarkets. Can this eventually your business? - An excellent franchisor will enable you to talk with some of the franchisees he's up and running. An excellent franchisor gives a list to you of all companies currently running and you select the people you want to talk to. As a result of challenges of in operation, not absolutely all active franchisees will undoubtedly be ready to see every possible new franchisee. Keep this at heart, but do take to and speak to up to possible preferably 5 or 6. - Piloted and absolutely audited business functions supply the most readily useful potential for success. It is possible to further help minimize the dangers of buying and running a team by considering BFA licensed companies. For more information on membership status, please start to see the BFA website ( However this does not guarantee success and conversely less proven companies can work very well. Furthermore the more established a franchise could be the more of a premium you'll have to pay for it. - A good franchisor will encourage you to visit their HQ, they will encourage you to work with them for a day and they will give you all the data you ask for and will not pester you for a decision. Ideally however your franchisor will go a stage further. If they truly want you to succeed they will vet your suitability as a franchisee (not just checking you have the money!!). We would suggest you to have a credit agency check out the Directors / Franchisor / key financial [http://www.blimpie.com/own_a_store/own_a_store.html restaurant franchise opportunities] staff. Please NOTE. This not an exhaustive list of the factors that make a good business, but must give you some key areas to look at. Take your time, take care and take advice (avoid a Riyot!!) [http://www.blimpie.com/own_a_store/own_a_store.html restaurant franchise opportunities]

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