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