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    1 Reply Latest reply on Oct 1, 2011 9:54 PM by CorpCons08

    Franchising Ownership

    LUCKIEST Guide

      Families continue to commit to each other through franchise ownership
      As more and more people leave the corporate grind and start their own businesses, they are finding partners in the people they trust most: their families.

      And why not? During financially uncertain times families tend to pull together for the good of the whole.

      Family-owned franchised businesses do more than create jobs. They create economic security and build retirement income.

      In 2011,(which experts predict will be a turnaround year),  expect family-centered placements to soar.

        • Re: Franchising Ownership
          CorpCons08 Ranger

          LUCKIEST,

           

          Keep in mind that there are always pros and cons to everything. With Franchising, these are just some of the pros and cons.

           

          PROS

           

          Turnkey System

           

          A franchise system is a proven system for operating the business and generating profits. If your skills are weak in sales & marketing or operations then a turnkey franchise may be best.

           

          Franchise Support

           

          Small business owners often have very little support or lack a support team with business acumen. Buying a franchise offers the opportunity to share your challenges with other like-minded entrepreneurs. As franchise companies state, you're in business for yourself, but not by yourself.

           

          Brand Name

           

          The more established franchises provide a market awareness & brand name to franchisees. This can amount to great savings in customer acquisition costs and allow for more time in the operation of the business.

           

          Lower Inventory Prices

           

          The collective buying power of a franchise group allows for lower costs in purchasing inventory and equipment. Independent businesses usually have less bargaining power with suppliers.

           

          Easier Staff Recruiting

           

          Finding good employees is a critical success factor for many independent small business owners. A franchise business with a recognized name will have greater recruiting pull than an unknown business entity.

           

          CONS

           

          Less Freedom 

           

          Franchisees are required to share financial information and conform to uniform operating procedures. An independent business owner makes all the business decisions.

           

          Royalty Payments

           

          Each and every year franchisees are required to make royalty payments in return for support in operations and advertising. Some franchisers may not provide all the necessary resources for the success of your particular location. Talk to other franchisees for feedback on the level of support they receive.

           

          Higher Start-Up Costs

           

          Buying a brand name franchise is often beyond the financial capability of many potential business owners. An independent business may be more realistic financially if the owner is willing to focus on building a strong business operation.

           

          Broken Promises

           

          The franchiser may not have the ability to provide market or field support. Owners can become reactive and expect the head office to solve all the problems. In your own business, the only person you count on is you.

           

          These are just some of the pros and cons of starting or commiting to a franchise. I look forward to any discussion users of this community may have on the matter.

           

          Regards,

           

          CorpCons08