When you have decided that a franchise is the right business choice for you, one of the first decisions that must be taken is identify the business concept and the franchiser that is right for you.
This article is a continuation of the article with the same title part 1.
Other factors to consider in choosing the right franchise is:
10. Scope of franchise network
As a prospective franchise owners, you should choose a franchiser the system has been developed by forming a large network. Although the concept of size is relative, size that make franchise owners can enjoy the benefits of the economy is the best. How does one Specifies that a franchise has developed into a network that big? Simple course. The first clue was the introduction of the name. When you quickly get to know the name and logo of a company without franchise have to do some research, then it is likely that the franchiser has already have a network. In addition, ask whether the company has the power buy so was able to negotiate a discount for large parties as well as contracts nationwide exclusive to its franchise owners. The last, find out if you can rely on the cooperation of advertising for local, regional, or national.
The factors above meant that the franchiser is big enough to be able to forward network advantage on you. Don’t be fooled by the low franchise fee offered by the company that franchises are not known. The Principle Of that read “caveat emptor” (carefully before buying) is the key to entering its. The power of national or regional networks will be much more meaningful than the slight difference franchise fee. Remember, you usually got worth what you pay.
11. Position within the industry
It is wise to choose actions that are no. 1 in their field. It often happens strong competition between franchises that offer the same or similar services. Top position in the industry typically have more opportunities to persist in the fight grabbing market share. In every industry must case jolts. The first fall is an independent company. Next the network is weaker and smaller. Only the strongest franchise-franchise who can endure and one will emerge as the best. Choose McDonald’s from every type of industry then your chances to survive will be greater.
A bit of time in the library will tell you who the leaders in the industry you want to enter. Magazine related business or entrepreneurial franchise usually published order franchise companies every year. The Preparation Of
This order was carried out by an independent organization and is the best source of to determine the leadership in each industry. IFA, Department Of Commerce The Interior and the AFI is also a source of information that needs to be be taken into consideration.
Do not rely on the words of a salesman for the franchise. Take a look at the ranking published an independent organization when you want to know how an the company franchises stand the competition. When the company
included in the Group of top 10%, then they have the possibility surviving the shake-up of the market.
12. Site selection Assistance
Good location-which gives access to a large number of target groups the market-is one of the important factors that determine the level of sales of a retail outlets. Therefore, a retail franchise company will provide some sort of help and approval for each franchise location for the their franchise owners. Elements of a good location-facilities to maximum, and then customer traffic is sufficient, a dense population demographics-needs to be examined by the a who expert. Even the most sophisticated computer programs though can not replacing an experienced real estate experts in the review site ideal for retail.
Computer programs for the analysis of a location check the demographic factors are a good tool, but nothing can replace a skilled real estate get to know this kind of business and get to know its market area. Anyone can
refers to a location that customer traffic high for now. However, customer traffic is just one of the factors that must be considered. Most independent operators are not aware of the many factors that must be consider when choosing the right location for their business. A experienced site selectors will be looking for the key places
have the highest potential and will also help get the requirements as well as the best rental conditions.
Error in choosing a location could be fatal. Be careful with franchise companies that let you choose the location yourself without them check it out. A more established franchise companies certainly have staff experienced site selectors and get to know the exact location analysis. This Staff will work to help you choose the best location for franchising you.
13. The Facilities Design and construction
All good franchise companies provide assistance and make standard for the design and construction of facilities. Construction management and store fixture modules available to all franchisees through its franchise companies. Beware with the company that let you design your own shop. You pay for their expertise. No matter how good you are, it may be There are details that have been missed and this may require a large fee for However, if the facility is rebuilt. When the company’s franchise provides ease of construction management or major, you will avoid from the sense of frustration because the related contractor, electrician, and people from other areas of construction.
Companies the most established franchises will offer packages module stores, as well as guidelines and standards for imagery and design. Appearance a franchise outlet should reflect the image of the franchise company being a parent. The franchiser’s advertising costs spent much of that name, logo, and his shop is known by the public. The franchisee will assist efforts This introduction by way of adapting to the standards established by the franchiser.
Training is one of the most important commodities that are offered by the franchiser. Armed with the knowledge gained from the training, the franchisee more ready to overcome common barriers. Because of this, almost aware of
all franchiser requires training in the classroom and practice for all franchisees. Although training is different for each franchise, but normally not less than two or three weeks.
Every franchiser must have a training manual. Some other companies even offer additional resources such as videos and the cassette to be used as a tool of continuous training by his franchise owners. Beware of franchise companies stating that they could teaches all things to you in just a few days of training at the store you. Ask for an outline of the training program and check carefully. Program this should include training in the classroom and practice. Should also be studied is the aspect of the day-to-day operations of the store as well as business management topics in general such as the preparation of the work plan, accounting, and marketing. Ask training programmed planned by the franchiser when evaluating options franchise.
It’s also important to consider the quality of the training given franchiser before you buy it. How the experience of the staff of her training? Material What do they offer? Is there a continuous training in the field?
15. Grand Opening Support
Today’s grand opening! This is an important promotional opportunities to start franchise and run it. An established franchise companies will offer promotional packages to maximize these opportunities. Promotions and packages
grand opening marketing program that is complete should be available. Banners, flyers, posters, ads, and more should be provided for franchise owners on the day opening. A good franchise companies will also provide his staff
to help manage the store and organize your grand opening promotions.
The first days after the opening is a challenging experience. A good company will provide a staff of experts who help you during at the time. Support this is another advantage of joining a a healthy franchise network and strong.
The things that are important in the promotion of the grand opening was a banner the exterior visible from the street, followed by a poster in your window, door, hanging flyers, balloons, and ads that announce discounts and programs opening.
16. Continuous operational support
Your belief in a concept of the franchise could have measured the extent to which the company gave its support. If the franchiser disinclined to provide assistance This might mean big trouble for the franchisee. Operational support the engine is the important thing. Franchiser must pay the experts operations that really understand every detail of the operation franchise and backed by a strong central office staff. Several kinds of supporting method
is a toll free phone number, computer networks, as well as the National Convention the regional Conference, and the preparation of the programmed and marketing materials. The other thing the program was the establishment of the national media, the establishment of Advisory Board franchise owner, new product development, and the availability of resources marketing. This peripheral support function could give an enormous difference on your franchise experience.
Before making a decision to buy a franchise, is doing the evaluation of the the program and the ability to support the company. Do they have the local representative is assisted by a supporting organization (Headquarters) is good?
Avoid operations that do not have the ability to support the field continuously and consistent at the national level or at least in your area.
17. Exclusive Franchise Territory
Noted that franchiser are prohibited from designating more than one franchisee in an adjacent location. This is because the one major problem facing franchise unit is the rivalry with the franchiser’s franchise units or more. Although the expansion franchise system is required to gain an advantage–such as purchasing great party, networking, joint advertising, name recognition, and so on-the-a good franchiser will not bring up the rivalry between the shop own and other franchise unit. Most companies give a kind of franchise assurance that a shop that could potentially become a rival will not be opened in the “individual franchise exclusive territories”.
The size of the protected area varies depending on the demographics, population densities, patterns of travel, and the population is needed to support an outlet. Some franchise owners assume that the larger the area the better. This isn’t really a problem. This protected area must be large enough for a store can succeed, but small enough so that the rivals can enter.
For example, if a franchiser allow only one outlet in a the city that can hold 10 outlet, then the rivals will fill
the drawback. The power of the nine rival units will make their can build identity trade names by doing more advertising and make them more clearly than any single franchise owners. On Finally, the rival parties will open the tenth franchise owners close shops the single is out of this competitiveness.
Be careful on the franchiser gives no exclusive territories or regions that exceeds the limits of reasonable an area business. They may not ignore the long-term interests of their franchise units.
18. Franchise Fee
Franchise fee must be examined to find out if this franchise legitimate company or not. Fee which is only a few hundred dollars (for the alien franchise) or under the fifteen million (for local franchises) should be suspected, as it is not possible a franchise company can give you the assistance needed by the His franchise buyers. Beware of the franchise company “mail-order” that do not provide support or who offer to help you without franchise fee or royalty fees. Can-can you have to pay consultation fees in a large face, and then abandoned after receiving equipment and lower quality fixture. Not wise to buy a franchise without review documents.
A legitimate franchise companies have long-term interests against the ability of his franchise units in achieving success. Some companies using franchising as a means to dredge the advantages the short term. Often the case this kind of company leaders announced that they were bankrupt when faced with the demands of the the courts of the purchaser of a franchise that once their hokey, and they start this hoax again with another company name. Because they do not show a valid document, you cannot know how many times they ever bankrupt.
19. Financing a franchise
According to the International Franchise Association, the cost of starting a franchise can as low as $ 8,000 or even as high as $ 5 million. The Franchise fee from the local franchise in Indonesia ranged from 10 million to 400 million dollars. This fee is usually includes initial fee, remodeling, supply and inventory, deposit, fee before
starting a business, the cost of training, and working capital. Other costs that will appear then the amount of royalties is between 2-15% of sales.
One major problem facing prospective franchisees is figuring out how Gets the initial investment. The best setting is looking for franchise companies who gave financial help, such as renting out equipment and fixture without
ask your home collateral. The good intentions of this financial aid awarding indicates that the company’s strong franchise financially and convinced that the business could generate enough income for you paying the rent.
The franchise company wants all payments are made in advance to look out for. This is a danger sign that shows that perhaps the company’s weak Financials or not quite sure such business could give an income enough for you. Usually the company franchise This is sort of the new company and greater risk than the more established rival. The best way to evaluate a franchiser, such as this is to do a reference check to their franchisees are still active and inactive.
The selection criteria are presented is designed to help you in the process of election of franchiser/franchisee. When you’ve found the one or more business concept that’s right for you, you should evaluate some of the company (franchiser) which offers similar kind of franchise. You should perform a thorough investigation of its own against the odds franchises before deciding to make a purchase rights franchise These. You may need to consult your lawyer or accountant. Ask an existing franchise owners are also a good way to got the information. Remember that it is impossible to find a company franchise where all owners are happy. But you can do a diligent inquiry to satisfy yourself that you has chosen the right franchise. Your choice of purchase rights franchise Perhaps the most important decision is who you’ve created during the life of you. We hope this information will help you take
the right decision. Regardless of that decision, may you succeed in the struggle you achieve the success of the effort.