Tip! Re-sell your current franchisees. To calculate how many times you need to re-sell franchise owners, add up every royalty check they’ll write and add 1.
Here are some useful tips on how to select a franchise. When selecting a franchise, carefully consider a number of factors, such as the demand for the products or services, likely competition, the franchisor’s background, and the level of support you will receive because like any other investment, purchasing a franchise is a risk. You will do well to consider the following items before selecting a franchise:
Tip! Now if you have gotten this far with a particular franchise you will want to talk to someone who is actually running their own franchise. Try to get a couple of different prospective of the business.
Shopping for a franchise is easy if you know what you are doing. You can choose between radio adverts, newspaper adverts, personal recommendation, Internet, or visit a franchise exhibition. Attending a franchise exhibition allows you to view and compare a variety of franchise possibilities. Keep in mind that exhibitors primarily want to sell their franchise systems. Before you attend, research what type of franchise best suits your investment limitations, experience, and goals.
Tip! ) Purposefully and willfully avoiding mandatory registration and disclosure laws in a franchise registration state.
Buying a franchise is not for everyone. This guide will help you evaluate whether buying a franchise is right for you. It will help you understand your obligations as a franchise owner. Many people dream of owning and running their own business but are often let down by the reality of doing so.
By purchasing a franchise, you often can sell goods and services that have instant name recognition and can obtain training and ongoing support to help you succeed. But be cautious. Like any investment, purchasing a franchise is not a guarantee of success.
Tip! ) Franchise Organizations and Companies charge royalties to all outlets; The Catholic Church in Vatican takes in money from all locations.
The Federal Trade Commission out of the blue decide in November of 2004 that they wanted to revamp the franchise and business opportunity rule; specifically addressing franchising. Now then, why now? To prove to the masses that the Federal Trade Commission is in control? After all it is nearly 10 years after the Federal Trade Commission considered revising the rule, before this report has surfaced again. Ten years?
This is a preview of
FTC Report on Franchise Rule Making; What Purpose?
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Read the full post (614 words, estimated 2:27 mins reading time)
Tip! ) Franchise Organizations and Companies use a common brand name with all outlets; The Catholic Church uses a common religious teaching.
Last summer the FTC put forth a report and then asked for comments on modifications of the franchise rule. There has been no real significant changes since the 1970’s, but lots of opinions and case law along the way. All these complications of rules and the rules proposed today by the Federal Trade Commission do not help franchisors remain efficient or franchisees sell more pizza, hamburgers or donuts.
Tip! A person that is considering the franchise business should also beware of scams. People who enter this field should be aware of the pitfalls and challenges that may be encountered in the process.
The FTC, Federal Trade Commission, is considering modifying the franchise rule. So far it has be a ten-year process; just imagine working that slow in your business? In 1995, 1997 and 1999 when the comments were first considered and taken in, which spans a ten-year period. When you combine those comments with this current rule making period they may have broken the record for the longest rule making session since voting on the slavery issue; one heck of a long rule making period by any means.
Tip! ) Franchise Organizations and Companies have set up territories between each outlet; The Catholic Church has member churches set up in a similar fashion.
One major issue not being addressed right now in the regulatory definitions which guide consumers and lawyers in business opportunities and franchising is the new term being used; Private Franchising. The Federal Trade Commission decided it would revise its definitions of such opportunities in 1995, but failed to address this issue. The use of the term; Private Franchising has grown over the years.
This is a preview of
Private Franchising is not Real a Real Franchise
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Read the full post (515 words, estimated 2:04 mins reading time)
Posted in Business Franchises by admin on March 16th, 2009 
