Filed in archive Entrepreneurship by Greg Balanko-Dickson on October 10, 2006

Franchising is big business. Like any growing industry it can attract players that really have no proven model [read: no good reason to be selling a franchise in the first place].

That is not to say that buying a franchise is a bad idea, just make sure you know the truth before you lay out your life savings. The most successful franchises are successful because they have a proven business model, provide excellent training, and support.

I spotted a great article at Forbes titled "Ten Good Reasons Not To Buy A Franchise" and it is worth a read since it expands on the following ten points:

1. Questionable profitability.
2. High startup costs.
3. Encroachment.
4. Lack of legal recourse.
5. Limited independence.
6. Royalty payments.
7. Inflated pricing on supplies.
8. Restrictions on post-term competition.
9. Advertising fees.
10. Unfair termination.

Pay particular attention to newer franchises. How long have they been selling franchises? Ask for their prospectus and read it carefully. Call previous franchise owners and ask questions - you will be amazed how much they will tell you.

All you have to do is ask.

Related Entries:

Schwarzenegger Signs California Cable Bill - 04 October 2006
FCC may simply change local franchising rules on its own - 07 December 2006
List of Home Based Franchise Opportunities - 11 January 2007
Franchise? - 31 October 2007

« Happy Thanksgiving From C... | Main | Small Businesses Confiden... »

Permalink: Thinking Franchise? Start Here First

Tags: franchise business opportunity small here small+business start+here franchise+start

Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/38743

Addthis

Ask

Blinklist

del.icio.us

Digg

Fark

Facebook

Google

Lycos

Ma.gnolia

Mr Wong

Netscape

Netvousz

Newsvine

StumbleUpon

Slashdot

Tailrank

Technorati

Wink

Yahoo

Vote for Thinking Franchise? Start Here First:

Currently 7.60/10
1
2
3
4
5
6
7
8
9
10

Rating: 7.60 out of 5 vote(s) cast.

Response from: nmartin (03/11/08 1:42pm)

I saw your posting and want to share with you how my client, Wireless Toyz is a good example where franchisees with passion for the business are typically more successful. Wireless Toyz was founded on the realization that even knowledgeable consumers of wireless products and service are overwhelmed by rapid changes in technology, confused by too many choices and intimidated by ‘techie experts.’ A successful Wireless Toyz franchisee actually looks forward to every frustrated customer and unique problem that walks in the door. Patience is a plus, but what really characterizes their consistent sales leaders is a passion for solving problems, one customer at a time! Learn more about how to choose a franchise or determine whether a franchise business is right for you by contacting Richard Simtob at 866-2FRANCHISE or email him at franchise@wirelesstoyz.com. You may also visit www.wirelesstoyz.com/franchise for more information.

Response from: alex45 (02/06/09 6:56am)

Hi I really thankful to you because you are simply greatI am very happy to

post my comment in this blog. I gathered lot of information from this site.

Nice blog.

Thanks,
_______________

alex45

[url=http://www.bizoppjunction.com]Business
Opportunities[/url]