Business People Club

Search All Topics !

Three Signs Of A Franchise Winner

0 like 0 dislike
170 views
by Robottom
There are over 2,500 different franchises for sale right now. Trying to choose the right one might seem like an impossible task. One that is even more intimidating considering the large financial investment at stake. If you are a first time franchise purchaser, where should you begin? The answer is not easy; every franchise is unique and there are hundreds of characteristics to review. That said, certain characteristics keep popping up when we examine the best franchises.

Here are SmarterFranchise’s signs of a great franchise concept.

1. Multi-unit Ownership
The proof is in the pudding. The best indication that a franchisee is happy with his business is if he spends more money to purchase another unit or an additional territory. The logic is the same as why Honda has such a strong reputation in the car market. If your uncle Jeff has bought three Accords in a row, Honda must be doing something right.

For the most part, multi-unit owners start with one store which becomes so successful that the want a second and so on. In order to finance a second store, a lender will examine the first store’s cash flow. If a franchise wasn’t financially viable, it would be nearly impossible to open additional units.

Multi-unit ownership is also an indication of operational efficiency in a concept. With some franchises, there is so much work that is impossible for the franchise owner to focus on anything but day to day operations. The book, “The E Myth” talks extensively about this trap of getting stuck “working in your business” vs. “working on your business.” Even if you never plan to open multiple units, this is an important characteristic, because more likely than not, you would eventually like to retire or at least take a vacation one day.

Be wary of franchise owners who explain low multi-unit ownership by suggesting franchisees make enough money with just one unit. If there is one thing history has shown, people rarely decide they have “enough” money.

2. Proven Franchisor Track Record
There are three items two think about when examining the franchisor’s track record. The first is an understanding of how much risk there is that the franchisor might go out of business. Unfortunately, many of the 2,500 franchise concepts available just won’t make it as sustainable businesses. If you purchase one of these concepts, you may lose much of your investment.

Second, the franchisor’s track record should give you an indication about the quality of the concept. Did the franchisor own several successful stores for many years before deciding to franchise his concept or did he just decide one day that there was good money in franchising so he better come up with a concept.

Third, franchisors with longer track records have more established training and support programs. While you might save a few thousand dollars buy getting into a franchise early, chances are you won’t get much for your investment. New franchisees haven’t had the time to put together development support or training programs or marketing campaigns. Also, if you are one of the first buyers, you are the guinea pig which often means more risk. Maybe a new food concept works great in a mall food court or maybe it doesn’t? Wouldn’t be nice if you weren’t the one who had to run the experiment?

3. Strong, independent franchisee association
Unfortunately, the unspoken reality is that the franchisor’s and franchisee’s interests aren’t always aligned. Eventually, there will be disagreements over finances, marketing programs or development issues. Knowing that issues are sure to arise, it is helpful to know that you will have an organized group of franchisees who can relate to your situation. Independent associations have many benefits. In addition to creating leverage for the purpose of negotiating with the franchisor, an association also can improve communication among franchisees. Independent associations also allow members to pool resources to hire competent professionals such as lawyers or financial advisors or marketing consultants. Finally, like with any organization, a collective, institutional memory is created. The AFA has an excellent article on associations here.

It is also a negative sign if the franchisor goes out of its way to discourage an association. It usually means that the franchisor does not have the franchisees best interests in mind and is afraid of having to deal fairly with franchisees.

In addition to independent associations, franchisees may also develop a coop to purchase goods at a discount or control a portion of the system’s advertising budget or develop a lobby group for a specific issue. All of these our good signs.

Advertise With Us

Create and Manage Your Sponsored Content

Promote Your Products and Services

 

  • Niche Categories
  • Flat Pricing
  • Unlimited Views
  • Sell Products
  • Highlighted Sponsored Post
  • Sell Services
  • Promote Causes
  • Reply To Customer Inquiries
  • Build Backlinks
  • Promote Affiliate Links
  • Instant Notifications
  • Build Author Profile
  • Cancel Anytime
  • Get Started

Please log in or register to reply to this post.

Related posts

0 like 0 dislike
0 comments 435 views
Three Things You Should Know Before Buying a Business Franchise

Business franchise refers to the arrangement entered upon by the owner of a certain business with another party who is interested in ... with the company that's tried and tested over the years.

image
by TrainedGuy
0 like 0 dislike
0 comments 444 views
Basic Rules Of Starting Your Franchise

Starting a franchise can be a really profitable venture and a decision you will be glad you made. However, starting a franchise ... have a better chance at being successful and enjoying your business.

image
by MysteryWasp
0 like 0 dislike
0 comments 342 views
Buying A Franchise

Buying a franchise can be a life changing experience. There are many good reasons to pursue your dream of owning a successful ... Consultant and decide if buying a franchise is right for you.

by AmazingKitty
0 like 0 dislike
0 comments 196 views
12 Reasons To Use A Franchise Consultant

A potential business owner that has an interest in purchasing and running a franchise would benefit from the services of a franchise ... of franchise opportunities you are most likely to succeed in.

image
by Tabooccaneer
0 like 0 dislike
0 comments 186 views
What to Look For in a New Franchise

Want to buy a franchise opportunity? Great idea! Here is a high-level overview on what to look for: Operating History - A ... of re-sales relative to the total number of franchises in existence.

by HairySeahorse
0 like 0 dislike
0 comments 195 views
What To Consider When Coming Up With A Franchise Idea

So many people think that by getting into the franchise business, they are setting themselves up for an easy way to make money, with ... you've had in the franchise's area. They provide training.

image
by CharmingChamp
0 like 0 dislike
0 comments 253 views
A Franchise - Your own business, but include support and guidance

Many people dream of running their own business and of giving up the day job. Most of these ambitious individuals only have the most ... less, and a McDonald's franchise could cost you a cool $250K.

image
by Octopixy
0 like 0 dislike
1 Comment 338 views
How to purchase a fitness franchise ?

How to purchase a fitness franchise ?

by nicejone
0 like 0 dislike
1 Comment 305 views
0 like 0 dislike
1 Comment 227 views
How to Buy a Franchise?

How to Buy a Franchise?

by KeyboardPie
0 like 0 dislike
0 comments 310 views
Three places to find new clients without a lot of work

1. Don't ignore your own "Acres of diamonds" - ask your existing clients to refer some of their family, friends and ... potential clients by providing a quality product or service that they need.

by LovableStorm
0 like 0 dislike
0 comments 597 views
Equipments necessary for starting a business in the production of labels

The labels cover a large range of products for which they are destined, and this determines the existence of several types of label ... must be chosen according to the target market that we refer to.

by FatKomodoDragon
0 like 0 dislike
0 comments 275 views
Avoid the Hassles of Online Business Start-up with a Turn Key, Automated Home Based Business

Many people want to start a home business, but never do because of the hassles and start-up costs. As with any new business, a ... may be just the right choice for you to realize wealth from home.

by UncleRhino
0 like 0 dislike
0 comments 584 views
Handling the Purchase of a Business Phone System

Purchasing a business phone system is not an easy endeavor, but with the right mind set and a little knowledge about business ... to guide you in making the right purchase for your business.

by Scorpeon
0 like 0 dislike
0 comments 208 views
The 10 Super Unfair Ways of Making Money Online Even If You Don't Have A List Yet

Do you have a product so good you want everybody to know about it? How about generating more profits from it? If you want the answer ... steps above, take action now and do it today. To your success.

by Tabooccaneer
0 like 0 dislike
1 Comment 360 views
Should i use franchise consultant for my business?

Should i use franchise consultant for my business?

by SwiftHeroine
0 like 0 dislike
1 Comment 287 views
Converting Independent Business To Franchise?

Converting Independent Business To Franchise?

by FatKomodoDragon
0 like 0 dislike
1 Comment 660 views
0 like 0 dislike
0 comments 303 views
The Warning signs of Online Fraud and How to avoid it

The number may seem grim for Web-based commerce. In 2004 in the Unites States alone, computer users logged in more than 207,000 ... you're doing it in a mall or on the information superhighway.

by Dragonig
0 like 0 dislike
0 comments 155 views
A Guide To Neon Signs

If you are going to take a walk at night, notice the luminescent, glowing signs that are gracing the façade of many buildings. These ... vivid colors, but they are not as bright as other neon lights.

image
by Tabooccaneer
0 like 0 dislike
0 comments 178 views
Offering Different Methods Of Payment

Every good business person knows that one of the best ways to boost sales and traffic to their product is to allow for multiple payment ... After all, a sale is still and always will be a sale.

image
by GamerAlpaca
0 like 0 dislike
0 comments 801 views
The Importance of Call Centre Staff

Most businesses invest fortunes in any way they think will make their company thrive, from advertising and brand management to ... more money, and be treated with more respect, elsewhere.

by Knighthawk
0 like 0 dislike
0 comments 181 views
7 Simple Steps to Get More Out of Your Day

Let's face it - time is probably our greatest resource. We never seem to have enough of it and it seems to pass so quickly. Well we ... easiest way to more out of your day and more out of your life.

image
by MysteryWasp
0 like 0 dislike
0 comments 386 views
The Success of Pixel Marketing Proves that Small is Beautiful

Advertising space on the web has typically been sold by the banner and by the click. Now, thanks to a hot new concept called pixel marketing ... s anyone's guess but it should be fun to watch it grow.

by CheeryGrin
0 like 0 dislike
0 comments 224 views
The Importance Of Business Plan

Do you need more money to expand your business? If yes, you need a business plan. If you are starting a business, despite the ... Make it a priority to have this crucial road map for your business.

by MammothMoth
0 like 0 dislike
0 comments 221 views
Learning The Process Of Order Fulfillment

The goal of most businesses is to profit and give out the best products and services that they can offer to customers. For companies ... to benefit you, your company and the people that you serve.

by Richard S.
0 like 0 dislike
0 comments 292 views
The Benefits of Classified Ads Web Sites

The modern world is in a continuous movement and people everywhere are looking for quick, safe means of accessing accurate information. ... site and you will definitely find what you are looking for!

by GraveGrass
0 like 0 dislike
0 comments 276 views
The Important Role Of Public Relations

Public relations is fundamentally the art and science of establishing relationships between an organization and its key audiences. ... relations, an introduction to public relations software etc.

by Celestiger
0 like 0 dislike
0 comments 628 views
The Benefits of Business Improvement Programs

By attending to an effective, well-structured Business Improvement Program (BIP), business owners are able to learn elaborate, ... rapidly enhance the efficiency and the prosperity of your business.

by OpinionOwl
0 like 0 dislike
0 comments 581 views
Increasing The Perceived Value of Your Product or Service

Whether online or offline, small businesses often show little faith in the quality of their service or product. Instead, ... quality, charge accordingly and provide proof of your credibility.

by Herogue
0 like 0 dislike
0 comments 194 views
Benefits of Incorporating Your Own Business

If you have a small business or starting one in the near future, it is important to look into the benefits of incorporation ... small business or are thinking of creating once, look into corporations.

by Octopuppy
0 like 0 dislike
0 comments 573 views
The changing face of self made business

How does young, dresses casually, rich sound to you? Even to a casual observer it is perfectly clear that today's entrepreneurial ... online doesn't get any simpler nor easier , said Ben Lloyd.

by Madept
0 like 0 dislike
0 comments 268 views
Incredible power of the press release service

However large your company might be whatever niche of the market it operates in and whatever services or products it provides, ... today's highly competitive and ever-changing environment without it.

by PlushSeal
0 like 0 dislike
0 comments 197 views
Know The Secrets Of Purchasing Wholesale

Everybody loves buying - clothes, shoes, flowers, electronics, games and other things. Most people do not even care about how ... be saving yourself from spending too much money from retail stores.

by CheeryGrin
0 like 0 dislike
0 comments 170 views
Important Features of Business Improvement Programs

There are various reliable training centers on the World Wide Web that allow business owners to actively participate to various ... Programs are recommended by thousands of business owners worldwide!

by MammothMoth
0 like 0 dislike
0 comments 193 views
The Importance of Good Feedback

Getting good feedback from customers and employees is vital for any business that expects to grow. Without knowledge, business ... and feedback is the ultimate way to make educated decisions.

by Oystrich
0 like 0 dislike
0 comments 692 views
The Basics Of Business Incorporation

If you are a business owner, even if it is a small business, you want to be successful. You are undoubtedly aware of the work it ... , and it is not nearly as complicated as it might sound to you.

by Conjursa
0 like 0 dislike
0 comments 615 views
The Importance Of Article Marketing

When most people think of advertising and promotion, they think about the expenses involved and how, for most new business owners, there ... to online entrepreneurs and, best of all - they are free!

by DreamBaby
0 like 0 dislike
0 comments 207 views
Benefits of Business Podcasting

Mention podcasting and the image of someone sitting in their basement with a computer and microphone, dreaming of becoming a ... use to communicate with potential customers and grow its business.

by HistoryYak
0 like 0 dislike
0 comments 214 views
The Power of Joint Venture

What is a joint venture? Although it is the key to increase your profit and your time off (you sell while you are doing ... . Remember: other people is the way to succeed in your business.

by GreedyPig
0 like 0 dislike
0 comments 187 views
Thinking of selling your company?

Your decision to sell: Making the decision to sell your company is a tough one. However, when you decide to do so, make sure it's a ... is too much money at stake, and you don't get a second chance.

image
by FoolishJaguar
0 like 0 dislike
0 comments 618 views
Point Of Sale Products

As a business owner your goal of selling to your customer can be enhanced by the point of sale products that you use. ... the point of sale terminal is an excellent opportunity many businesses miss.

image
by GardenParrot
0 like 0 dislike
0 comments 672 views
What are the Benefits of Business Loan?

Finance is always a main issue, when it comes to start a new business. You can have various innovative ideas and plans, but you ... a new business loan, to avoid any sort of perplexity in future.

image
by VoyageHooper
0 like 0 dislike
0 comments 178 views
Quiz - The Ego Of Your Team Member

A team is formed to achieve a goal, and for that all the team members have to combine and pool their abilities to achieve ... results. Quiz your team about all these aspects and you will win.

image
by OpinionOwl
Connect with us:
...