Franchises Offer Shortcuts, But Not Control

Q: I will be retiring this year at age 60 and intend to fulfill my lifelong dream of owning my own business. I'm too old to start from scratch, so I'm looking at several franchise opportunities, including fast food, auto parts, and an accounting service. What should I consider before choosing one? Anthony R.

A: Congratulations on the retirement, Anthony, and on the new business venture. As the old adage goes, when one door closes, a drive-through window often opens (or something like that).

Given the franchise types you are considering the first thing you should ask yourself is whether or not you want to spend your golden years cooking fries, selling mufflers, or doing taxes.

Franchising can be a great way to start a business career, but you should make sure you're not just trading one job for another. Unless you plan on being an absentee owner, which I highly discourage, you are gong to be working in the business just as an employee would, so be sure the business you choose doesn't turn your lifelong dream into a never-ending nightmare.

The primary advantage of buying into a franchise system is that it allows you to enter business quicker with a proven system, while minimizing risk and increases the odds for success.

The primary disadvantage is that you give up considerable freedom in how the business operates. In many ways franchisees are not really their own bosses because they are required to follow the rules set down by the franchisor.

Many franchise owners also quickly tire of asking: "Do you want fries with that?" and become absentee owners, which usually leads to the business being sold or shut down.

No matter what franchise you're considering, you should ask yourself the following questions before making a decision:

* Do you have past experience that pertains to the type of franchise you're thinking about buying?

* Are you prepared to work long, hard hours?

* Are you an effective manager?

* Are you willing to share your revenue with the franchisor?

* Are you willing to follow the franchisor's rules and regulations?

* And the biggie: do you have access to the necessary capital to invest in the franchise?

The big franchises like McDonald's and Midas Muffler can cost hundreds of thousands of dollars to buy into, but unless you are a total business savant, the franchise is virtually guaranteed to succeed.

It's true that even a McDonald's closes on occasion. Roy Croc spins in its grave when it happens, but happen it does, so keep that in mind. There are thousands of lower cost franchises that you can buy into, but the lower the investment typically means the risk of success is higher.

As a rule, franchise operations are generally more successful than independent startups because they have a proven concept, a ready market, an established customer base, and a business model that can be replicated over and over again. Less than 5% of franchises fail during the first few years as compared to an 80% failure rate of independent ventures.

Many people have done very well as franchisees and often end up with multiple franchise operations. Adversely, many have not done so well because they bought into a franchise system that either was not all it was purported to be or they discovered that they did not fit into the franchisee's mold.

The key is to pick the franchise system that is right for you. Here are a few tips to help you do just that:

* Purchase a franchise that complements your skills, work experiences, and interests. Don't start a business in a field that is totally foreign to you.

* Plan on becoming an owner-operator versus an absentee owner. Absentee owners lose control and interest quickly and the franchise suffers because of it.

* Gather as much information as you can about the franchises you are interested in. You are considering investing a lot of money to buy into a system, so know who you are dealing with and what you are paying for.

* Experience the product or service firsthand, as a customer would. If you don't like the service you get at McDonald's, don't invest in a franchise thinking you can fix their problems and run things better. You can't and you won't.

* Interview other franchisees to gauge the franchisee satisfaction level.

* Ask how many franchises have closed and for what reason.

* Ask about initial and long-term training and support.

* Make sure the franchisor is profitable and financially sound.

* Finally, do your due diligence. Request a disclosure document that includes in-depth information about the franchisor and if a franchisor refuses to produce such a document, take that as a huge red flag and mark them off your list.

Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox.

http://www.prosperityandprofits.com
http://www.prosperityandprofits.com
http://www.prosperityandprofits.com

Alexis limo rentals ..
In The News:

Who needs roads? The WindRunner aircraft was designed specifically to haul massive wind turbine blades, some of which are over 459 feet long.
A Google DeepMind team has developed an artificial intelligence system that can play video games like a human and take native language commands from players.
Four of the largest school boards in Ontario, Canada have launched lawsuits against TikTok, Meta, and Snapchat, claiming that they have impacted students' thinking and behavior.
Finalists for the inaugural Women’s Prize for Nonfiction, aimed at addressing the gender imbalance in nonfiction publishing, were unveiled on Wednesday.
Tech guru Kurt "CyberGuy" Knutsson breaks down whether the government is watching citizens and what they can do to protect online privacy.
A benchmarking group for artificial intelligence has released new results evaluating the speed of hardware in running AI applications and responding to users.
Sierra Space’s Dream Chaser spaceplane provides a glimpse into the future of space travel. Traveling to space may become a part of everyday life.
The new European Hyperloop Center in the Netherlands aims bring in a new era of transportation. The center will use a steel tube as a proving ground for testing the new vehicle.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
While it may be incredibly tempting to have a “go with the flow" mindset like the rest of your vacation, your technology definitely should not be compromised while traveling.
Have you ever accidentally deleted an app from your iPhone that you’ve already paid for? Don't worry. We’ve got a trick that will help you get it back without having to buy it again.
Apple's new Journal app has raised privacy concerns among Apple's userbase. Tech expert Kim Komando examines social media rumors and explains what steps to take to protect yourself.
Although Facebook has denied that our phones listen to us, they do have other ways of finding out what we are talking about, listening to and searching for.
With the integration of OpenAI technology, Figure 01 has taken a significant leap forward, showcasing the potential of robots to understand and interact with us on a personal level.
Port Ellen, newly reopened whisky distillery in Scotland, is using SmokeDNAi technology to understand mouth-feel and flavors during the whisky maturation process.
Telly, a smart TV firm, is promising to give out their 4K 55-inch TV for free. What must you give in return? The innovative, yet potentially unsettling, answer might shock you.
The moment a spam invite hits your calendar, it’s like an uninvited guest at a party. So, what do you do? Show it the door.
Identity thieves are now targeting children and are making large sums of money by exploiting children's identities, possibly hurting their financial future.
There's a clever way to change the notification sounds on your Android without having to look at your screen. Kurt "CyberGuy" Knutsson explains.
If your bank accounted has been hacked, there are a number of steps you can take to prevent it from happening again. Kurt "CyberGuy" Knutsson explains.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
The Wave House, a data center in Heidelberg, Germany, is the the largest 3D-printed building in Europe. Its walls were built in about 140 hours.
Some government agencies around the world are struggling to meet their staffing goals when it comes to hiring artificial intelligence experts.
Google Maps' recent upgrades have introduced real-time ETA and turn-by-turn directions to your phone's lock screen while you are traveling.
Kat Cammack says AI could disrupt the 2024 election. A report says shared AI image tools generate election disinformation in 41% of cases and voting disinformation in 59% of cases.

Marketing Your Small Business with Success Stories

-- The One Pager Shortcut Series --An effective and compelling... Read More

Janitorial Cleaning Service: Getting Started

A janitorial cleaning service is one of the best businesses... Read More

Got Stimulation?

An observation while returning home from a seminar: Getting away... Read More

Knowledge is Power

Why does research and education play an important part of... Read More

Finding a Venture Capital Firm

Many ventures are faced with the challenging task of raising... Read More

Breaking The Chains!

Everyday, customers and business owners are bombarded with billboards, logos,... Read More

Two Types Of Business Plan Cover Pages ? Which One Are You Using?

This is the tale of two business plans with very... Read More

10 Cardinal Rules for Business Growth

After over 30 years of participating in hundreds of businesses,... Read More

Conquering Confidence Killers for Small Business Success

"The way to develop self-confidence is to do the thing... Read More

Entrepreneurs and Franchisors Watch Out

New Franchisors and Entrepreneurs need to watch out as they... Read More

Obtain Maximum Results For Your Small Business Through Better Time Management

Most small business owners are faced with so many responsibilities... Read More

The Franchisors Heavy Load

Why are we over regulation the franchising industry, what purpose... Read More

The Misconceptions of the Value Of Disclosures in Franchising

Disclosure laws in franchising are suppose to help the consumer.... Read More

Find Some Sample Payroll Check Stubs on the Net for Easy Reference

Starting a business? For many people, the bravery to venture... Read More

Excuses Franchisees Make; When They Violate Exclusive Territory Agreements

One of the biggest excuses franchisees of home based and... Read More

Can Your Business Run Without You?

What would happen if you decided to take an extended... Read More

Build Credibility with Expertise

As an Investment Representative you've worked hard to build trust... Read More

The Single Most Powerful Small Business Marketing Tool On The Planet

Let me get right to the point. The single most... Read More

Make Your Business More Profitable

More sales and more profit. Isn't that what you want... Read More

How to Find a Microenterprise Loan for Your Business

If you're looking for start-up capital for your business, but... Read More

Shocking Experienced Copywriter Reveals Little-known Secrets To Closing BIG Ticket Deals!

Hogwash!That's what I say to people who tell me that... Read More

Its Spring - Time For A Compensation Program Tune Up

Now that winter has passed, the annual ritual of spring... Read More

Tell Me a Story: A Simple But Powerful Tool to Build Your Business

Everyone loves a good story. Whether it's the story of... Read More

Small Business Operators - 7 Reasons You Should Change Your Accountant

A recent survey showed that only 28.7% of small business... Read More

Debit and ATM Card Advice for Small Businesses

Your business account comes with an ATM, Debit card. Pick... Read More

car service from Midway Alsip ..