Posted by admin on Jan 25, 2010 in
Franchise Over the past ten years we have seen an explosion in internet advertising as everyone has jumped into using this fantastic new medium for promoting their product or services. A particular area which has had niche but heavy growth has been that of franchise advertising and there are now hundreds of sites across the globe dedicated to bringing franchise opportunities and franchise information to the masses.
Looking at these franchise directory portals we can see a huge variation in the information they have to offer and we can group these into the following.
Franchise directories – These function and serve solely to display franchise opportunities in a directory format and generally display logos and promotional materials in a categorised format.
Franchise information portals – These tend to go one step further than plain directories and also offer advice and articles to a prospective franchise seekers as well as a categorised list of franchises.
Franchise Resource Portals – These have all of the above features and more, offering franchise advice, franchise articles, dates of franchise exhibitions, reviews, categorised franchise opportunities, franchise news and web 2.0 user interaction.
We can look at the above in a staged way where 1 is a skeleton platform, building up to 3 which is a full bells and whistles platform. When looking at these franchise directory platforms one must remember that the main aim of the site owners is to have paying franchisors list their franchise on them, this is where the money comes from and why the site is in existence. So, you must remember that not necessarily all are ethical franchise directories and are happy to take on world + dog to advertise their franchise. Read more... (509 words, estimated 2:02 mins reading time)
Tags: Directory, Franchise, Good, Makes
Posted by admin on Jan 23, 2010 in
Franchise The terms “franchise broker” and “franchise consultant” are seen frequently in the press, often implying they are one and the same. But what is a franchise broker and how are they different from a franchise consultant. Do they both offer objective, impartial advice? This article answers these critical questions.
A franchise broker is a paid franchise salesperson. Many franchise brokers claim they will help find a franchise company that is the perfect match for your background and abilities, and that their service is free. In the beginning it all sounds good. There’s some personality testing and review of personal finances. At the end of the day, it turns out they only represent a handful of small franchise companies you’ve never heard of before. A detailed analysis often reveals these highly touted franchises produce mediocre or even below minimum wage financial performance. Yet franchise brokers don’t mention this, and individuals continue to rely on their recommendations, believing the broker represents them. Nothing could be further from the truth.
Franchise brokers receive a substantial commission up to 50% or more of the franchise fee you’re paying the franchise company. Franchise Broker Realities: (1) Their service is definitely not “free” despite these and other similar misrepresentations. It’s really common sense – how could anyone offer a “free” service and survive in business? The simple truth is if you buy one of the franchises they’re hawking, your money goes to the franchise company, then into the broker’s pocket. If anyone ever calculated how much time they spend to collect their $15,000 or $20,000 commission, it’s probably more than a brain surgeon earns. (2) Franchise brokers definitely do NOT have your best interests in mind. They will do or say whatever they have to in order to close a deal and earn their commission. Read more... (433 words, estimated 1:44 mins reading time)
Tags: Brokers, Consultants, Difference, Distinctions, Franchise
Posted by admin on Jan 21, 2010 in
Franchise In recent years in the UK franchising has greatly increased in popularity. In the last year alone the contribution of franchised business to the economy increased by over £5 billion to 12.4 billion. There is no doubt that franchising is now a significant part of the UK economy.
A basic definition of franchising is that it is an agreement where a company sells the rights for another person or group to sell its products or services. However in reality franchising is more complex and there are a number of different types of franchise agreement.
Although every franchise agreement will differ to some extent in general franchising can be divided into five distinct categories -
Manufacturing Franchises
In this type of agreement the franchisor allows the franchisee to manufacture its products and to sell them using its brand and trademarks. This type of arrangement is particularly common in the food and beverage industry. The franchising company receives an initial fee and depending on the agreement may also receive an additional fee for every unit of the product sold.
Business Franchise Ventures
A business franchise venture is an agreement where the franchisee purchases and distributes products for the franchising company. The franchisor typically locates and provides the client base for the franchisee to manage. An example of a business franchise venture is the vending machines that can be found in many public areas and workplaces. The franchisee buys the vending machines, maintains them and takes a share of the machines takings. Read more... (566 words, estimated 2:16 mins reading time)
Tags: Franchises
Posted by admin on Jan 19, 2010 in
Franchise Trading Your Briefcase For An Ice Cream Scoop
You’re excited about buying a franchise, taking the plunge, ready to trade your briefcase for an ice cream scoop. The company’s told you it’s the opportunity of a lifetime, given an impressive tour of their headquarters and taken you to a couple of their operating outlets. When the day ended, they presented their FDD or Franchise Disclosure Document. The representative told you to read it and the contract couldn’t be signed for at least 14 days. Who do you use and what’s it going to cost to review your FDD?
Using A Lawyer Or An Accountant?
Glancing through the document, the first thing you notice is it’s very dry and technical – just the thing to read if you’re having trouble getting to sleep at night. You notice something in bold print on the cover page about showing it to a lawyer or an accountant. Certainly there’s a big difference between a lawyer and an accountant you note. Why would the government say you could use either one? Since the investment in this franchise is a bit north of $250,000 you wisely decide an attorney makes a lot more sense than an accountant. But lawyers and franchise attorneys are expensive and what kind should you use? Read more... (892 words, estimated 3:34 mins reading time)
Tags: Costs, Disclosure, Documents, Franchise, Much, Review, Should
Posted by admin on Jan 17, 2010 in
Franchise With over 30,000 locations and fifty years in the burger business, the McDonalds brand is the most recognized and successful franchise in the world. Not surprisingly, before considering anything else many would-be franchise owners ask themselves: How much does a McDonalds franchise cost and how can I buy a McDonalds franchise? They hear it only costs $45,000 to get a Mighty Mac franchise, an investment that’s quite within their franchise affordability range.
The McDonalds Franchise Fee
As with most things in life, a little information is a dangerous thing. While it’s true McDonalds charges a $45,000 franchise fee, this is only the initial franchise fee for licensing rights – the upfront fee charged to join the network. There’s a LOT more financial commitment and cost involved to buy a McDonalds franchise after that. On top of the investment, there are other qualifications besides having the money.
Different McDonalds Franchise Ownership Options
According to McDonalds, there are two ways to buy a McDonalds franchise and enter their system. The first, and most frequently used method is purchasing an existing restaurant, either one operated directly by McDonalds or from a McDonalds franchise owner/operator. The second, infrequently used way is obtaining franchise rights for a new restaurant. Let’s consider these in reverse order, since McDonalds provides few financial details on the first, most frequently used method. Read more... (822 words, estimated 3:17 mins reading time)
Tags: ANNUAL, Buying, COST, FINANCIAL, Franchise, GETTING, INVESTMENT, McDONALDS, RESULTS, SALES