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Franchises - A Proven Business
System
By Ernie Horning
Franchises offer the first time business owner a proven and successful business
opportunity. If you are looking to start your own business for the first time,
franchises provide you with the greatest opportunity for success. When you
purchase a franchise from the "Franchisor", and become a "Franchisee", you are
not only purchasing a business, but a complete business system.
Franchises have over a 90% success rate, compared to about a 15% success rate
for those individuals starting their own businesses from scratch. Franchises
have spent years developing and modifying their systems of doing business, and
they pass that "trail and error" knowledge on to their Franchisees. Initial
training exists for every aspect of the business, which can last anywhere from 1
to 2 weeks. Training usually takes place at one of the franchises existing
locations or their corporate office. Training may consist of the day to day
"hands-on" positions required to run the business, to marketing, hiring,
purchasing, bookkeeping, management and supervisory techniques.
Assistance is available with "demographic" reports to aid in selecting the right
location. Support is also available for lease negotiation and "build outs", if
necessary. Pre-opening strategies and marketing materials for newspapers,
print-ads, handouts, yellow page advertising, radio and even TV ads are are
complete and professional.
During the first few weeks of business the Franchisor may provide its own
personnel to the Franchisee for assistance and support. This helps ensure a
smooth opening. Additionally, once the business is open, a Franchisee will
receive ongoing assistance and support from the Franchisor, not to mention
support from the other franchisees, all who are all just a phone call away.
Once a year or more Franchise Meetings occur between the Franchisor and their
Franchisees to exchange ideas, develop new techniques and strategies, and to
compare progress and profits.
All of this is not free, of course. Franchisees normally pay the Franchisor an
initial Franchise Fee, plus monthly royalties which can range from 3% - 12% of
their total income per month. But it can be well worth it!
In owning a Franchise, you are in business for yourself, but you are not by
yourself!
About The Author
Ernie Horning is a Franchise Consultant and owner of multiple businesses. He is
a former franchise owner, and writes articles for www.businessventureinc.com.
(Copyright 2005-ehbvi-www.businessventureinc.com) |
