Franchise Business Information

Have you ever wondered how a Franchise would do if run like a typical home business? This might give you some idea.

There is something that is long as I live I will never understand. Well I suppose actually there are several things, however right now this is business focused. That something is residual income. I just can t for the life of me understand how someone can go through life and just continue to work at a job with no plan for residual income. I suppose many people just can t comprehend that they can have money coming into them while they aren t working.

There are a number of ways to get residual income like writing a book, or a song. However, these are tough occupations to succeed at.

One of the very best ways to have residual income is good home business in Network Marketing. Network marketing has been criticized, poked fun of, ridiculed and worse. But it s here to stay and it s popularity is growing. Often called the poor man s franchise, with the right company, product and timing a person can actually do much better than a franchise without the expense and headaches that so often accompany a franchise.

Think about this, what would you say is the best most successful stable franchise today? Several come to mind but no one can argue that McDonalds wouldn t be at or near the top of most lists. So what kind of point am I making here. Simply this, many people argue that home businesses, especially in the area of network marketing don t work. Well gee whiz if a McDonalds was run the same way the majority of people work their home business the McDonalds would all go out of business.

Here is how the typical McDonalds would be run if run by the typical unsuccessful home businessperson.

When it s open I stress the word open, (more on this) it would probably be open less than 1 hour a day. The workers would be sitting around pretending to be working, but accomplishing very little. And then suddenly at a whim the store would abruptly close, perhaps to open again in a few days or even a few weeks. No schedule or hours of operation would be posted when the store was going to be open. After reopening after an absence the workers would just be getting back in the groove of working again when a half hour later the store would close because no customers were coming in. It seemed not knowing when the store would be open was keeping them away imagine that. Well after a month or so of no customers the store is closed with the owner muttering under his breath. These franchise things just don t work! Then he starts telling all his friends, I tried one of those franchise things once. They just don t work!

This example is easy to see and yet we all wonder why a home business fails when conducted in this same manner. What is great about a home business versus a traditional business is you don t have to start each day at 8:00, you have a lot of flexibility. However, you don t have the flexibility not to work for days and weeks at a stretch and engage in poor work habits when you decide to work.

Of course not all the blame can be put on the new home business person, there are some bad programs out there and timing can be bad with others. Of course wrong expectations can mislead many people into discouragement. What do we mean here. Well look at it this way. Very few people would argue that Microsoft would be a poor stock investment today. However, there are people that hype their particular company that has passed it’s growth spurt, that you can get rich and retire with their company. This is the same as a dishonest stock broker pushing Microsoft from the angle of it getting ready to explode in value as they will have double digit growth each month for the next 5 years. Hey in the early 80 s Microsoft had this type of growth, just don’t expect the growth to continue forever.

The point is there are always new Microsoft s in the Business and Home Business markets. It s knowing how to find them that is key. They are out there, home businesses that are rock solid and will experience this type of explosive growth over the next 5 years.

About the Author

Nick A. James offers informative tips and information on nutrition, health and working from home. His many years of Internet Marketing expertise puts him in unique position to help others starting a home business . For free newsletter, free reports and amazing info contact him at:
http://www.health-goji-juice.com -

Baltimore Franchise Opportunities

Are you looking for Baltimore franchise opportunities, or other small business opportunities in Baltimore, Maryland? Baltimore is a wonderful place to live, work, and play, and offers the new franchisee a great opportunity for small business success.

These days, Baltimore is one of America’s new boom towns, and was even ranked by Frommers as one of the top 10 travel destinations in the world for 2006. Which means if you’re considering a franchise related to travel, you’ll have many opportunities for success.

Baltimore is undergoing a revitalization, with $3 billion worth of new development either planned or already underway. This includes new hotels, office buildings, and more. The city also has a vibrant Inner Harbor district, performing arts center, museums, restaurants, markets, professional sports teams, and great neighborhoods in which to raise a family.

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Franchises — Advantages and Disadvantages

Franchises — Advantages and Disadvantages
By Jean Sifleet

Want to own your own business? Don t want to start from scratch?

Franchises are a way to get into business quickly, with a brand name, proven methods of operation and a support structure. Franchises are everywhere. Familiar names include Dunkin Donuts, Curves, Mail Boxes Etc. and McDonalds, to name a few.

“Buying” a franchise is legally complicated. As a franchisee, you pay money for the right to use the franchisor’s Trademarks, systems and methods. Many franchises are legitimate and successful. Unfortunately, there has been a history of problems with franchises. As a result, franchising is heavily regulated at both the state and federal levels.

The legally required franchise documents are intended to provide full disclosure to the prospective purchaser. In reality, the franchise documents are voluminous, full of legalese, extremely one-sided in favor of the franchisor, and packed with restrictions and fees.

Advantages of buying a franchise include:

- Quick startup

- Help with site selection

- Brand name and recognition in the marketplace

- Training and support

- Customized accounting system

- Exclusive territory

- Marketing assistance

- Access to markets and suppliers

Disadvantages of buying a franchise include:

- Up-front fees (substantial initial investment required)

- Ongoing fees (usually royalty payment is a percentage of revenues)

- Fees for marketing and related services

- Restrictions on activities (you can only offer approved franchise products and services)

- Monitoring (the franchisor monitors your books, bank accounts and operations)

- Termination criteria

- Renewal requirements and fees

- Restrictions on transfer

A franchise is a major investment.

It s important to carefully investigate the opportunity. A common misconception is that franchises are really turnkey operations. Purchasers think that they just buy the franchise and it runs itself. This is incorrect. It s important to clearly understand what you are buying, how hard you will have to work and what income is realistic.

Here are some tips to evaluate a franchise opportunity:

1. Check to see if there are lawsuits against the franchisor. Litigation is required to be disclosed in the franchise documents.

This will give you important information about what s gone wrong for others.

2. Talk to/visit existing franchise owners.

There should be a list of existing franchise owners in the franchise documents.

You can stop by and visit as a customer, and observe their operations.

You can also call up and ask questions, such as:

- Are you satisfied?

- Did you receive the support promised?

- Were there any surprises?

- Have there been any problems?

- How were the problems resolved?

- Are you making the money you expected?

- Can I visit and observe your operations?

3. What are the fees?

Franchise terms vary. It s important to understand the fees.

Make a list of fees:

- What s included with the initial franchise fee?

- What s the royalty? Is it a percent of gross or net sales?

- Is the royalty a fixed percentage or does it decline over time?

- Are there service fees? Training fees? Marketing fees? Advertising fees?

4. What s your territory?

Draw a map with clear boundaries:

- What is your defined geographic territory?

- How close can another franchise like yours be located relative to your location?

5. What s your competitive advantage?

- What sets this franchise apart?

- Does the franchise include key technology or methods?

- Can it be easily copied?

6. What are the restrictions?

- Are you limited as to what you can sell?

- Are you required to buy from specific suppliers?

- What are the reasons for termination?

- What is the scope/term of the non-compete?

- What are the requirements for renewal?

- Can you transfer ownership?

In conclusion, buying a franchise may or may not be a good choice for you. Before signing a franchise agreement, check it out carefully and make sure you understand what the documents say. The advice of a business attorney knowledgeable about franchises can help you understand the legalese and make an informed decision.

Jean Sifleet is a practical and experienced business attorney whose career spans many years in large multi-national corporations and includes three successful entrepreneurial ventures. Jean has extensive experience in dealing with intellectual property matters in the large and small companies and as a small business owner. She has authored numerous books and publications on avoiding legal pitfalls in doing business. This article is excerpted from her new book, Advantage IP Profit from Your Great Ideas (Infinity 2005). For more information, Jean’s website is http://www.smartfast.com

Tags: Franchise Articles