| What is a Franchise? | | | | business. |
| · An authorization to sell a company's goods or | | | | Quicker Start-Up than Independents |
| services in a particular place | | | | A proven plan out-paces an independent's hit & |
| · A business established or operated under an | | | | misses operation almost every time. Looking at just |
| authorization to sell or distribute a company's goods | | | | independents that succeed--you'll find that franchises |
| or services in a particular area. | | | | grow quicker, reach break-even sooner and succeed |
| How did franchising start? | | | | more regularly than others in the same industry as |
| One of the earliest franchisors was the Singer | | | | depicted in the accompanying chart |
| Sewing Machine(R) Company, which set up dealers | | | | What do I need to know? |
| shortly after the Civil War to sell and repair its | | | | Another question that arises is "What do I need to |
| revolutionary machines throughout the country. | | | | know in building my own franchise?" There are four |
| Shortly after the turn of the century, Coca-Cola(R) | | | | main ingredients found in each business... |
| licensed others to manufacture and distribute its | | | | · The product or service that is delivered to its |
| wonderful elixir. Ford Motor Company(R) later set up | | | | customers. |
| dealers to sell and service its products. Of course, | | | | · The location that the business occupies. |
| McDonald's(R) is an example of how an entrepreneur | | | | · The amount of capital that was invested or |
| (Ray Kroc) could take an idea and quickly spread it | | | | borrowed by the venture. |
| coast to coast (and eventually around the world) | | | | · The management team that runs the company |
| without starting out with millions of dollars in capital. | | | | -You! |
| Many companies turn to franchising as a system for | | | | Making a choice |
| expansion because they recognize that they can | | | | Choosing the right franchise can be a confusing |
| grow rapidly with a minimum amount of capital and | | | | process. |
| enlist top-notch partners if the company is willing to | | | | First, you must believe in the product or service that |
| share the profits. The company that sells licenses to | | | | the franchise network delivers. Is the niche stable, |
| its system is called the franchisor, while those who | | | | expanding, long-term, saturated? |
| open their own units are called franchisees. | | | | Next, you must verify the industry's future. What do |
| Why franchise? | | | | the trade papers predict? |
| There are many reasons why franchising is the best | | | | Check your aptitude for the job. If you don't enjoy |
| type of operation for the majority of first-time | | | | math, an accounting franchise isn't for you, etc. |
| business owners. Most revolve around the increased | | | | Often outside sources can help here. A personality |
| probability that the business will succeed and provide | | | | and aptitude test (similar to those used by major |
| profits to the owner in a shorter time frame than an | | | | corporations) will help you discover your hidden |
| independent business. This allows the owner to | | | | talents. |
| address her or his personal goals both financially and | | | | Determine the earnings capability. Most franchisors |
| personally. Here are a few, more detailed, answers to | | | | can't provide earnings projections, but you must |
| that question. | | | | make an effort to determine your future return. |
| Earn what you're worth | | | | Confirm the potential earnings and the franchisor's |
| Thousands of franchise owners report they were | | | | integrity with existing franchisees. Each franchisor will |
| handicapped in their corporate careers by company | | | | give you a list of its network members. |
| policies and supervisors that put a cap on their | | | | You should call them to get their confirmation of |
| earnings. When you own your own company, your | | | | your projections. If a franchisor (or business |
| efforts are rewarded and your personal income | | | | opportunity seller) will not give you a list of its |
| shows it! | | | | franchisees, you should heed the red flashing lights |
| Satisfaction of Achievement | | | | and end discussions. |
| Many business owners report that seeing their | | | | While this article is just the tip of the iceberg, you |
| actions turned into reality without stagnating for | | | | can get a good idea why you should start your own |
| months in committee meetings (as often happens in | | | | franchise, today. |
| big companies) is a major reward of owning their | | | | |