Considering a Franchise? Be Sure to Compare Franchise Opportunities
August 14, 2017
Prospective franchisees need to find the best franchise opportunity that matches their business and financial profile. For this reason, it’s important for prospective franchisees to compare franchise opportunities to find the best investment options. The result is finding a franchise that meets their requirements and resources.
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How Franchise Brokers Benefit from Franchise Benchmarking
August 10, 2017
Most franchise brokers are part of a specific network that has a portfolio representing 200 or more franchises. This can be an advantage to franchise candidates since these broker networks require a franchisor to meet certain performance standards before being accepted. The objective is to provide prospective franchisees a choice among the most successful franchises to choose from. However, there can be a disadvantage to this approach since a prospective franchisee may have an interest in a franchise that’s not part of a broker’s portfolio. Some brokers can work out of network with a franchise candidate. Because broker networks don’t demand exclusivity from a prospective franchisee it’s not unusual for a candidate to work with several brokers.
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Prospective Franchisees Must Carefully Review Item 20
June 26, 2017
As part of your evaluation of a franchise opportunity and related due diligence, it’s important you carefully review the Franchise Disclosure Documents (FDD) with the assistance of qualified franchise counsel. Specific focus should be placed on certain items in the FDD, including but not limited to, the background and experience of franchisor management, litigation, investment, territory, financial performance and most importantly, franchise system growth and franchisee turnover.
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Use a Franchise Attorney When Investing in a Franchise
June 21, 2017
Every day, people like you purchase a franchise without the benefit of franchise counsel. This happens despite the warning in the Franchise Disclosure Document (FDD) to seek the advice of an attorney. Before you invest in a franchise and sign the franchise agreement, be sure to use a franchise attorney to guide you along the way.
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What's More Important for Franchise Growth: The Market or The Location
May 17, 2017
When developing a strategy for developing a franchise system, franchisors often follow different paths. In some case’s the path a franchisor selects will depend upon a number of factors, the type of franchise, its size, required investment and system maturity. Based upon these attributes franchisors will usually migrate to one of the following approaches:
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New Research Examines Investment Risk in the Home Care Franchise Industry
January 10, 2017
FranchiseGrade.com has published the annual Home Care Franchises Sector Report, highlighting the best investment opportunities among 69 unique franchise systems
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Automated Phone Systems are a Barrier
May 6, 2016
If one were to ask franchisors what their top priority is, odds are that the overwhelming response would be to grow their franchise network with qualified franchisees. Yet, a number of franchisors continue to place a major roadblock on the road to achieving their objective. My opinion is based upon personal experience regarding how difficult it is to connect with a live person in many franchisor headquarters. For a number of years, businesses including franchisors, have replaced the position of receptionist with an automated contact system. Unfortunately, when pressing the number for the franchise department the response is often voice mail. I’ve even received the message: “The franchise department is closed” without instructions for leaving a voice mail.
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Franchisors Should Evaluate Competitors on a Regular Basis
March 4, 2016
During current times, franchisors operate in a very competitive environment as they seek to attract and add qualified franchise candidates to their franchise network. As candidates look to obtain a favorable return on their franchise investment the most attractive franchise opportunities should be represented by the healthiest franchises. However, in the real world there are a number of franchise systems that don’t represent a healthy franchise system. Many of these unhealthy systems aggressively seek franchise candidates and compete for investment dollars. In order to grow their system franchisors need to offer the best opportunity and investment value to prospective franchisees. For these reasons, it’s important for franchisors to perform a competitive analysis of franchise systems that are direct and indirect competitors.
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Why Do Some People Pick the Wrong Franchise?
May 16, 2014
The franchise industry certainly doesn’t lack the resources for guiding individuals towards making the right franchise decision. There are countless articles, numerous books, the FTC, State and franchise industry websites that provide advice and strategies for prospective franchisees. The Internet is replete with articles both favorable and unfavorable about franchisiors and franchisees. These resources if utilized can help to lower the risk of failure faced by potential franchisees. However, in spite of this, some franchisees will still fail. In many cases, these failures are the result of other factors, rather than the result of a lack of information, guidance and resources. A prospective franchisee needs to avoid the pitfalls that can result from choosing and investing in the wrong franchise.
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Buying a Franchise? Don’t Go It Alone! Seek Advice!
December 26, 2013
There continues to be a number of individuals that look to purchase a franchise without the benefit of professional advice. It can be the biggest mistake they will ever make.
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