Tag Archives: franchisee

Why Sign Up as a Franchisee

Joining a franchise system might be the best thing for you if you want to be a business owner but not from scratch. A franchise might work if you:

  • Are drawn by the security of having an already-branded business with proven services or products.
  • Like the idea of an operation that has already done the hard trial and error work of establishing business operations and building a demonstrated support system.
  • Are comfortable with following franchise guidelines.
  • Already have or can get the franchise fee and startup costs.
  • Are willing to part with some of what you make in the form of monthly royalties, advertising fees and other costs.
  • Know it will take a lot of work and are willing to do it.

                                                  But Beware of These Franchises

If you’re considering a franchise and are performing your due diligence, be cautious of franchises that:

  • Do not offer a proven business concept coupled with a successful operational system.
  • Lack brand recognition.
  • Have a history of litigation or continual strife with franchisees.
  • Offer minimal startup help and little ongoing training and suppo
  • Offer minimal startup help and little ongoing training and support.
  • Advertise very little if at all.
  • Balk at territory exclusivity
  • Are reluctant to give you a list of former and current franchisees.
  • Use franchise fees to pay for selling new franchises.
  • Obligate you to purchase services, inventory or supplies from their approved vendors (or the franchise itself) at inflated prices.

No matter what, it’s a good idea to hire an attorney that specializes in franchising to help you see it all the way through.

Offer minimal startup help and little ongoing training and support.

Ten Things to Watch for with Franchises

Don’t Have a Big Idea but want to be on Your Own?

Joining a franchise system might be the best thing for you if you want to be a business owner but not from scratch. A franchise might work if you:

·        Are drawn by the security of having an already-branded business with proven services or products.

·        Like the idea of an operation that has already done the hard trial and error work of establishing business operations and building a demonstrated support system.

·        Are comfortable with following franchise guidelines.

·        Already have or can get the franchise fee and startup costs.

·        Are willing to part with some of what you make in the form of monthly royalties, advertising fees and other costs.

·        Know it will take a lot of work and are willing to do it.

Even if you’re okay with these factors, it’s a good idea to hire an attorney that specializes in franchising to help you see it all the way through.

Ten Things to Beware of from a Potential Franchise

If having a franchise does appeal to you, be wary of franchises that:

·       Do not offer a proven business concept coupled with a successful operational system.

·       Lack brand recognition.

·       Have a history of litigation or continual strife with franchisees.

·       Offer minimal startup help and little ongoing training and support.

·       Advertise very little if at all.

·       Balk at territory exclusivity

·       Are reluctant to give you a list of former and current franchisees.

·       Use franchise fees to pay for selling new franchises.

·       Obligate you to purchase services, inventory or supplies from their approved vendors (or the franchise itself) at inflated prices.

Being a franchisee can result in a fruitful work life. Just make sure you perform proper due diligence.