Business For Sale & Franchise Search Engine  
   
My Account
Search Businesses For Sale
Location:

Category:

to refine your search results use advanced search  
Franchise Opportunities

Sell Your Business, Starting at $20.99 per month
Small Business Resources > To Franchise or not to Franchise

To Franchise or not to Franchise

When you are trying to decide whether to buy into a franchise, there are several factors to consider. Make sure you are looking at a solid and effective franchise that offers real value. It has to be a good one. There are hundreds of good ones, but lots of bad ones, too. With a franchise, you are paying an up-front franchise fee and a percentage of sales - it can be a lot of money - to get two main benefits:

First, a formula you can follow, a proven formula that guides you through the process, avoiding expensive mistakes. The more detail, the better.

Second, national marketing to enhance your business with a brand name, television advertising, etc.

I would want to know about training costs, needs, quality and availability. I'd want to know from other owners how well the parent company meets franchisees' needs regarding product and system-wide marketing. I'd also want to know whether their marketing actually works and how much supplemental marketing I would need to do. Do they supply signage? Do I have any choice about signage, etc.?

In addition, I would call the Chamber of Commerce (or some other local organization with accurate demographics) and try to find out how many similar businesses there are in your area, along with as much information as possible about how they've done over the last few years, whether the community is growing or shrinking, and how the economy in general is doing.

Visit some other franchisees, talk to them, get as much information as you can. I would talk to at least 10 other franchisees before I spent my money on somebody's franchise formula business. I'd also find an attorney with experience in this area, and go over with him or her some of the questions you should be asking. For example, is the franchisor going to protect your territory or sell another franchise across the street? How can you tell for sure? What guarantees does the franchisor make about national advertising, etc.?

In the end, you have to decide if the franchise costs are worth the money; sometimes they are, and sometimes they aren't.

About the Author
About the Author
Tim Berry is president of Palo Alto Software and principal author of its Business Plan Pro software for developing business plans. He was a cofounder of Borland International, which was founded in 1983 and went public in 1986. Before creating his own company, he was a planner for Business International and Creative Strategies, and a consultant in business planning to Apple Computers.











Related Resources
Buying a Franchise
10 Reasons to Buy a Franchise
Advantages & Disadvantages of Owning a Franchise
Advantages and Disadvantages of a Start-Up Business
Advantages of Investing in a Franchised Business
An Overview of Today's Business Opportunity Market
Auto Franchises
Become a Franchise Consultant
Businesses under $10,000
Buy a Franchise or Create Your Own Start-Up
Buy a Great Franchise Opportunity
Buying A Franchise
Buying a Franchise with Bad Credit
Coffee Franchises
Do Home Based Businesses & Franchises Really Work?
FDD's Item 19 Can Help You Decide If You Should Buy a Franchise
Food Franchises
Franchise Alliance
Franchise Information
Franchise Lawyers
Franchise Loans - Apply for a Loan to Buy a Franchise
Franchise Reviews
Franchise Royalties - What are Franchise Royalties?
Franchises - What To Consider
Free Small Business Magazines
Healthy Fast Food Franchises
House Cleaning Franchises
How Much Does a 7-Eleven Franchise Cost?
How Much Does a Dunkin Donuts Franchise Cost?
How Much Does a Franchise Cost
How Much Does a Krispy Kreme Franchise Cost?
How Much Does a McDonald's Franchise Cost?
How Much Does a Panera Franchise Cost?
How Much Does a Pinkberry Franchise Cost?
How Much Does a Pizza Hut Franchise Cost?
How Much Does a Starbucks Franchise Cost?
How Much Does a Wendy's Franchise Cost?
How to Finance a Franchise
How to Increase your Chances of Owning a Successful Franchise
How to Make More of Your Franchise
Is Franchising For You?
Is Starbucks a Franchise?
Low Cost Business Ideas
Managing Your Franchise Business
Master Franchise Information
Questions to Ask a Franchisor When Buying a Franchise
Reasons to Use a Franchise Consultant
Receive a FREE Franchise Consultation
Sell a Franchise
Seven Secrets to Buying a Franchise
Should I Franchise My Business?
Ten Common Mistakes Made by Franchise Buyers
The Differences Between a Franchise & Business Opportunity
The Differences between Large and Small Franchises
The History of Franchising
Three Signs Of A Franchise Winner
To Franchise or not to Franchise
Top 5 Buying Factors when Buying a Franchise - Part I
Top 5 Buying Factors when Buying a Franchise - Part II
What is a Master Franchise?
What is a Uniform Franchise Offering Circular (UFOC)?
What To Take Into Consideration When Starting A Franchise
What to Think About Before Buying a Franchise
Why Should I Buy a Franchise?
©2017 BusinessMart.com.
Broker Membership | Terms Of Use | Financial Disclaimer | Privacy Policy | Cookie Policy | Resources | Franchise Opportunities | Website Traffic Ranking | Sitemap | Careers | Contact Us