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A few steps are involved in franchising a business: first, a franchisor develops a successful philosophy of business which they are willing to train others to use. Second, an investor willing to establish a franchise contracts with the franchisor and then builds it. Third, the franchisor generally provides training and advertising in the investor’s target market as part of the contract.

Last of all, the franchisor stipulates a lease period through a contract, ranging anywhere from five to thirty years depending on the franchisor’s discretion. Any premature breaching of the contract will lead to serious consequences for the independent operator of a franchise.

For example, one possible consequence of an early-closed franchise would be the loss of sunk costs for the franchisee. While not a specific consequence of closure another point of consideration for potential franchisees is the royalty rate.

Because royalties are to be paid on the gross sales of the franchise, it is possible for a franchisee to not be making any profit, but still be obligated to pay royalties. Thus the nature of a franchise business model needs to be carefully considered before a franchisee invests their capital, especially in light of a franchisor’s advantages.

A franchisor can expect a few significant advantages from the franchise business model. First the franchisor gets to expand their brand without the use of their own capital and at the same time retain control of that brand’s use. A familiar example of this are fast-food restaurants like Subway or McDonalds which seem to have stores everywhere, but because of the central control provide a similar experience to customers throughout the country.

Another advantage for the franchisor is a reduction in need to micromanage franchisees as compared to direct employees. Since franchisees are given considerable decision making power and responsibilities for day-to-day operation a franchisor can reap the financial benefit without much managerial pain. On the downside, franchisors are limited by the pool of eligible franchisees which tends to be small.

Franchisees have the responsibility to run the franchise successfully with the help that the franchisor agrees to provide. Due to the power of the brand they’ll sell franchisees have the opportunity to turn a good profit.

However, potential franchisees should consider the temporary nature of their investment and decide if the benefits outweigh the realities of being a franchisee: loss of creative control, payment of royalties regardless of profit, and lack of significant legal recourse in the case that the franchisee is wronged by the franchisor.

TCBY (http://tcbyfranchise.com) offers investors the opportunity to operate frozen yogurt franchises that sell The Country’s Best Yogurt. Art Gib is a freelance writer.

You’ve always wanted to operate and run your own business, but you’re not sure where to start. You may want to consider being part of a franchise, especially if you don’t have a lot of experience in the field. There are literally thousands of franchises out there looking for eager entrepreneurs who are willing to become a franchisee; before signing on the dotted line, you need to do a whole lot of homework first, and then choose carefully!

– There is a whole lot to the decision making beyond just knowing you like the franchise’s product. You first need to determine: what franchises are already available in your area, and what is your market base?

For instance, if you had your heart set on a Chinese food place but there are already six in the immediate vicinity, then that is probably not a good choice. If you want to open a baby toy franchise, but the market base in your town is Senior Citizens, that’s not a good choice either!

– Once you have determined what kinds of franchises are available in your area, and have a really good handle on the demographics of your likely consumer base within your market, then you need to find a franchise whose products meet a need. Without there being a need for what you have to offer, there is zero chance for success.

– When choosing a franchise, you should go with a company that has immediate name recognition with the public and has a good reputation. This will give you an advantage right away, because you will have a built in consumer base that is already familiar with you.

– Find a company that has a set and detailed plan on how to open and operate your business. As a new franchisee, and one with perhaps limited experience, this feature of purchasing into a franchise is perhaps the most attractive and advantageous one for you. Experts from corporate know exactly what works and what doesn’t, and the guesswork is taken out of it.

– A good franchiser will offer support to its branches and be easy to communicate with. It will respond to your questions quickly and efficiently and do everything to help you get off on the right foot.

So make sure to do your homework: find out what franchises are available in your area; determine who your market base is; determine what kind of product or service will fill a need in the community and tailor your franchise choice to meet that need; choose a company with good name recognition; select one with a detailed operating plan already in place and that will offer continuing support for your venture. Good luck!

If you are interested in operating a successful cookie franchise, contact the best in the cookies franchise business:Mrs. Fields/TCBY. Art Gib is a freelance writer.

Every person who wants to buy a franchise to start up their business should know first hand that owning a franchise is no guarantee for financial bailout if you start getting into the red. Many business owners have this misconception and find that they are in worse shape than being a small local ma and pa store. The advantage for the franchise business owner is that their business known nationwide and the corporation runs campaign ads that help create sales.

Advertising will most likely be already taken care of. Some people like the franchise idea because they know that the product they are selling is top grade and well like by everyone. There is no need for the person who owns the franchise to question the standards of the business but instead they need to make sure that they are located in a good place for sales. Most of the time, the brand is already known and advertising the franchise business is not that hard to do.

That is only one problem faced by a business owner who utilizes franchised ownership. It is best to check out your suppliers to make sure that you will not get poor products at an outrageous price. Remember you are still the business owner and make all the decisions on everything from the cleaning solution to the spatula to use in your kitchen.

Franchise business is not always the person who owns and operates the business but it can be a person who is in the business to sell franchises to those who are interested in their own business. The lesion is the business finding independent third party person to buy an already standing franchised business. The agent who does this normally only deals in finding the independent person to operate an already standing establishment or if the corporation is planning to build a new branch then they must find someone who is willing to purchase the new building.

There are government requirements by both state and local that the new owner held accountable not the corporation. The new franchise owner must make sure that this business meets all safety and health standards locally and any standards that the state requires. It is best to consult an attorney to make sure that everything from documentations to actual building is in proper order before you sign an agreement.

After you have met all government requirements and set up shop then you are required as the franchisee to meet all standards and fees that the franchisers assess to the contracts. You as a franchisee must adhere to the trademarks, service marks, trade names, logo’s and advertising that the franchiser may impose.

The franchise is the best business for someone who wants to own their own small business. You do have perks as an owner and find that it is easier to maintain your business with the advantages provided you by the franchiser.

The author’s web site Franchise Philippines, gives information about gas station franchise and other franchise opportunities in the Philippines.

Franchising has been in the Philippines for 94 years. With the entry of Singer Sewing Machine in 1910 which introduced product distributorship. Numerous companies embraced this concept as their vehicle for business expansion over the years. From 1910 to 1965, businesses staked their flags in the Philippine economy through PRODUCT DISTRIBUTORSHIP. Some of these multinationals were tire and pharmaceutical companies.

The take off was slow in the early years as the succeeding companies like A&W Restaurant known for its root beer entered in 1965. The first outlet was established on Highway 54 (now popularly and historically known as Epifanio Delo Santos Avenue or EDSA) near the Big Dome-Araneta Coliseum. The concept was a drive-thru where women food attendants garbed in mini-skirts, black stockings and in roller skates would serve customers inside the comfort of their cars. Trays clamped by the side of the door and mugs with cold refreshing root beer partnered with foot long hotdogs were served. Its set-up was exactly the same as found in the US branches during those years. What this company brought was another form of franchising, which is known as Business Format. From then onwards most entrants into the market embraced this concept, in fact, so widely used not only in the Philippines, but all worldwide.

Product Distributorship

This is a form of franchising where owners of products allow other parties to sell or distribute their products or even use their trademark as a dealer. There is minimal or no control of operations. The relationship is centered on the quality of products sold.

Business Format

A form of franchising used by 90% of companies involved in franchising. This is the reason why franchising is considered the most successful way of expansion worldwide.

In business format, the franchisor, more than his registered trademark and products, has developed a business system that is made available for use to franchisees. Compliance to the business system is the core and essential element of their contractual relationship embodied in a franchise agreement.

The first survey of franchising in the Philippines done in 1995 revealed that there were a total of 50 operating foreign franchisors at that time. The success rate of foreign franchisees is 97%. In 2003, there were 315 foreign franchisors in the country with 87% success rate.

Philippine Based (Home-Grown) Franchises

Earliest recorded homegrown company that used business format franchising was PANCAKE HOUSE. It was franchising since 1978. PANCAKE HOUSE is still active in franchising and has transferred ownership a few years back.

In 1996, there were 94 companies using franchising as their route to expansion and the number has substantially increased to 481 in 2003. The success rate is a good 90%.

Philippine Franchise Scenario

Franchising in the country evolved from the US Franchise System. There are, however, no laws that regulate franchising. Companies and franchise developers use international franchise practices as reference and as a guide to pursuing this type of business. The increasing number of homegrown companies using franchising in their expansion can be attributed to the presence and increasing number of foreign franchisors. They served as motivators and inspiration for the local entrepreneurs.

Franchising for years has been the monopoly of food sector. It was only in mid-1990’s that service and retail entrepreneurs used franchising.

There was an absence of franchise education in the country for decades. Franchise Conference and Seminars started only in the mid-90’s. Franchise Associations were also formed with the vision of professionalizing and standardizing the franchising as well as police their own ranks.

The author’s web site http://franchisephilippines.org provides information about franchising in the Philippines.

Philippine franchise is one of the most reliable business model in the country and has proven to be one of the most effective. This business model have grown from year to year exponentially as more and more Filipinos realized the benefits it can bring to most people. Having your own business which gives you the freedom to use your own time and effort to the benefit of your business and not having to work for someone else. If you are new to this industry or just trying to move out of the “corporate ladder” and onto a more beneficial source of income for you or your family, consider Philippine franchise if you’re in the Philippines. Most of them only costs about Php20,000 – Php80,000 and is more than enough to get you more experienced with low risk and earn passive income for you.

This past year, it has been not very good with the global economic crisis. All over the world, all countries, all people are taking a hit. Top companies closing down and down sizing a lot of their employees. This is the time that we tend to realize that the road to financial freedom is not having to work for a company. As even the biggest companies may fall during hard economic times and you can only be at the mercy of your own employer. That is why this site was made to educate people about the Philippine franchise industry.

The Philippine franchise has just been realized a few years back when the small businesses started franchising and made a boost in their profits. Back then, Jollibee Philippines was just a small ice cream shop turned into a hamburger stand and now one of the biggest and most loved Philippine franchise.

To achieve financial freedom and to assure that your family will never have to worry about money anymore is through entrepreneurship. Work and job can only give you money only as much as you put effort to it. Having your own business and a Philippine franchise, not only makes you in charge of your time, your business will be there up to your 8th generation grandchild having said that your business might live that long but its not impossible. In a job, you can not earn and work when you are old. Let’s take Coca Cola for example, it has been there for like ages… And those who own part of the company can enjoy the benefits of lifetime money.

The only way to achieve financial freedom is through business. And Philippine franchise is a good way to start. There are 18k – 80k small Philippine franchises out there and the big ones that may costs millions. You can start at a small risk and of course small returns at first. Build and gain experience in the industry before you risk millions to the big ones like McDonald’s or Jollibee. In which have been said that can return your investment in as little as 3 years. In which, after that, you can enjoy lifetime income.

Let us avoid ourselves of thinking about how high the salary pays, what job you took, or what job is in demand right now or what job is better. The only thing that can help you achieve freedom and financial security is through business. May it be buying or selling, Philippine franchise or offering service. Where, your main goal is at. This way, you can help yourself, your family and our country.
Invest in Philippine Franchise

If you don’t have the money to invest in bigger Philippine franchise like Jollibee. Keep in mind that companies such as these have their public stocks open in the stock market. There are rumors that Jollibee will now be closing its doors to franchising and would recommend interested people to just buy part of the company as stocks in the stock market. This is actually a good thing because, you may earn part of the company instead of just buying its name.

There are a lot of possible ways to earn and be financially free especially in business. What’s important is always be motivated to have a better living for your family and love our country. Don’t you think its about time we start doing business here instead of working abroad? Americans are migrating here to start a business, but Filipinos are going to the states to work for a job. Think about it, which one will yield the most return of your investment? Business or Work? You decide!

The author’s web site http://franchisephilippines.org/ provides information about Philippine Franchise.

People are always on the lookout for the best franchise opportunities that may come on their way. Let’s take a look on how to spot the best franchise opportunities.

When you say the word ‘Franchise’, most people immediately think of business-based franchises like those that are top listed in popular business magazines every year. But, it is important to remember that there are hundreds and thousands of franchises out there, some that are spectacularly successful, others that are total failures. Obviously, you want to avoid the latter. So, how do you select the best franchise opportunities that work?

The first step is to understand that franchising is not everybody’s cup of tea. A franchise is someone who works under an established company, selling pre-established products in a particular manner. For some, this sort of an operation may cramp their style. Remember the customer’s loyalty is to the brand name and not to the franchisee. So, you have to play by the rules of the franchisor. For example, you cannot sell burgers in a Pizza Hut outlet. But for those with limited experience in the business sector and those who love to work within the framework of an established system, the right franchise opportunities offer the path of least resistance and maximum return.

So, what is franchising? Simply put, it is a system of distributing services or products, and it typically involves two levels of people. In the first level, you have the franchisor under whose name or trademark the business will be held. In the second level is the franchisee, who pays a royalty to get the right to do business under the chosen franchisor.

Lucrative and the best franchise opportunities are easy to identify if you know what to look for. The first thing is to select a brand name that sells. Belonging to a reputed brand gives you a competitive edge. Often, the franchisor’s name is in itself the biggest advertisement you want. Think MacDonald’s! Their name is sure to draw enough business due to their consistent delivery of high quality products and their global advertising campaigns.

One of the biggest challenges when it comes to choosing the right franchise opportunities is the sheer choice you need to confront. Did you know that more than 48% of all retail sales are franchises? To make matters worse, there are about a 100 different industries to choose from. So, what should you do? Easy. Go into yourself and think for a moment: what do you like? Do you have any hobbies that could help you? Find the industry that ignites the spark within you. Remember, once you start, you will need to think of your business 24/7.

Once you identify the industry you want to work in, the next step is relatively easy. Find the franchisor you want to work with. Online web directories are a good source of franchise information. You could simply log on to web portals and enter your search criteria based on geographic location, industry and price. You will then get a complete listing of franchise opportunities in your area of choice.

You’re not ready to sign the agreement just yet. Remember, you have to negotiate terms with your franchisor. To do this, you would need to draw up a business plan. Many franchisers owning franchise in the Philippines are willing to alter their terms somewhat if you can show them how it will help them and you, the franchisee, to grow.

The author’s web site Franchise Philippines aims to provide information about the best franchise opportunities in the Philippines.

People gets into franchising quite a lot but doesn’t know the buzz words for it. This article will guide you to get started in the franchising business.

Initial investment – The total capital required to start a franchise business. This typically includes Franchise Fee, Renovation, Equipment & Fixtures, Rent deposits, and Initial Inventory.

Franchise Fee – The initial fee paid to the franchisor. The Franchise Fee usually includes training, site selection and evaluation assistance, and the rights to use the franchisor’s trademark and business system.

Royalty – This is the fee paid to the Franchisor for continuing use of the trademark and in exchange for the franchisor’s ongoing support services. This is usually a percentage of the franchised outlet’s sales and is typically paid on a monthly basis.

Advertising Fee – Fee paid to the Franchisor as the franchisee’s contribution to the marketing effort. This is usually a percentage of the franchisee sales and is often paid on a monthly basis.

Initial Term of Agreement – The length of time the Franchise Agreement is in effect. If typical revenue and expense scenarios hold, the franchisee should be able to recover his initial investment within the initial term of agreement.

Territory – The franchisee’s territory is the geographic area or domain in which his business operates. The franchisor may grant exclusivity to the territory, meaning no other franchised or company-owned outlet may open in that territory, or the rights of first refusal to the franchisee, meaning that if the area can support other outlets, the franchisee is given first option to do so. The franchisor may give rights to the franchisee only where his location stands, no more.

Franchise Offered

1. Single Unit Franchise The franchisor grants franchises to an individual or entity one outlet at a time.
2. Area Multi-Unit Franchise The franchisor grants the franchisee the right to open several units within a territory, within a prescribed time frame. Part of the Franchise Fee for the units are paid upfront, with the balance for each unit being paid upon signing of the individual franchise agreement.
3. Master Franchise (Area or Country) The Master Franchisee is both a franchisee and a franchisor. As a franchisee, he should open his own franchised units. As a franchisor, he is also responsible for finding, granting, and supporting sub- franchisees. For his effort, the Master Franchisee gets a share of the fees due the franchisor.

FRANCHISING

Common Definition: A method of doing business by which a franchise is granted the right to engage in the business of offering, selling or distributing goods and services under a marketing plan or system prescribed in substantial part by a franchisor and which is substantially associated with the franchisor’s trademark, name, logo and advertising.

Legal Definition: Franchising is a contract or agreement, express or implied, oral or written, between two or more persons by which:

1. A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan prescribed in substantial part by a franchisor;
2. The operation of the franchisee’s business pursuant to that plan or system as substantially associated with the franchisor’s trademark, service mark, tradename, logo type, advertising, or other commercial symbols designating the franchisor or its affiliates; and
3. The franchisee is required to pay directly or indirectly, a franchise fee.

Franchisor – The parent company or operator of a franchise concept or system that grants, for a fee and other considerations, the right to use its name and system of business operations.

Franchisee – An independent business person or novice entrepreneur who has been granted by the franchisor the right to duplicate its entire business format at a particular location and for a specified period, under terms and conditions set forth in the contract (franchise agreement).

Franchise Agreement – A written contract detailing the mutual responsibilities of franchisors and franchisees. It is usually for a several-year term, and when the term is up, the contract expires and must be renewed. Some state laws require the contract to be renewable at the franchisee’s option. Usually, a franchise agreement may not be sold, transferred or otherwise assigned without the franchisor’s permission.

Operations Manual – A written document which clearly explains the franchisor’s standards of operation, and identifies the operational tasks required to establish and operate the franchise business. The operations manual supports and promotes the use of consistent and uniform day-to-day procedures at each franchise unit within the network franchise unit in order to maintain the quality of service and products in every franchise outlet.

Franchise Opportunity – A franchise opportunity is a business opportunity that involves the sale of good and services that enable a novice entrepreneur to begin a franchise business.

Master (or Regional) Franchising – A model of multi-level franchising wherein the master franchisor sells the development rights in a particular geographic market to a master franchisee, who, in turn, sells individual or single-unit franchises within the territory. In return for a front-end master franchise fee, the master franchisee has the sole responsibility of developing that area or market under a mutually agreed upon schedule. The master franchisee is rewarded by sharing in the franchise fee and ongoing royalties paid by the franchisees within the territory to the master or parent franchisor.

The author’s web site Franchise Philippines talked about franchising in the Philippines.

If you are looking to invest in a franchise in order to improve your way of life and enjoy your own business, the first step is setting goals for yourself and figuring out what business franchise would be best suited for you and your needs.

Some of the most popular franchises are food and restaurant franchises. The fast food industry is a booming industry at the top of the market for new business entrepreneurs who want to explore the franchising opportunities of big companies in a growing market. New fast food restaurants are taking the franchising business by storm and opening their doors in retail strip malls and amusement parks all over the country. Retail clothing chains are also a popular franchise that many are looking to invest in. Some of the top franchises in the world are stemmed from retail sales.

Making sure you have significant capital to be able to invest is the first thing you should have in place before contacting a franchise to be able to start your business. Whether you have inherited money or you are borrowing money from an investor it is wise to not ask for funds from the company you will be franchising from. You need to prove to them that you have enough capital invested in order for them not to consider you a risk. You may need to utilize a variety of investors and banks in order to get enough funding to launch your franchise.

Take a look at how long you want to own your franchise, is it something you want to do temporarily to make money or do you want to do it long term to reap the benefits and rewards? If you are only looking to get your foot in the door and expect to make millions in the first few years you have to take into consideration that you could easily lose all of the money you have invested if the business fails. Never put in money that you should be using for something else such as retirement funds, emergency cash and income that should be used for personal lifestyle maintenance.

Keep in mind that there are significant risks involved with franchising and opening any business and you should carefully analyze these risks before you commit to buying into a business. Whether you invest thousands or millions, you have to keep in mind that the corporation itself could go out of business and you will be out of money. While you are building your business it is always good to have money in savings to be able to fall back in when times get tough or if the franchise goes under.

By learning how to keep your finances flowing throughout the entire time you run a franchise, you will be protecting your financial lifestyle and limiting the burden on yourself should you ever have financial difficulty.

For the services of a franchise lawyer, visit http://www.ed-lawfirm.com where an experienced and dedicated franchise lawyer can help ensure that your business safe from those who would take advantage of you. Art Gib is a freelance writer.

If you have any experience in the computing and telecommunications industries, a technology franchise could be the perfect fit. There’s no denying that technology is a booming industry. Over 75% of American households own and use a computer. Cell phone usage has been steadily climbing since the late 70s, and today it’s estimated that over a billion people own and use cell phones worldwide. These are just two areas in which your knowledge of technology can help you own and operate a successful technology franchise.

One of the best reasons for starting a technology franchise is the demand for these types of services in the marketplace. Technology changes so fast that there is always a large percentage of the population who needs help with technology-related issues. Whether it’s installing a program on their computer, managing their cell phone or creating a website for their business, your role as a technology business owner can help bridge the gap between their needs and their knowledge.

Mobile computer repair is one of the largest sectors in the world of technology franchises. Computers are so integral to daily life that people can no longer wait a few days or weeks to get their computer back from a repair shop. They’re looking for the convenience of having someone come to their home and repair their computer in a matter of hours. There is a huge demand for quick and reliable service and owning a Computer Medics franchise allows you to meet that demand.

Computer Medics has a proven business model that will give you a leg up in the world of computer repair. The parent company will provide you with training, support and tools that you need to have success with your technology franchise. As you work, you build long-term relationships with your clients based on your trust and professionalism. For someone with experience in IT or strong interest in computers, this could be the perfect technology franchise.

Businesses also have a need for technology support just like independent consumers. Concerto Networks is a technology franchise that taps into this growing need. As a Concerto Networks business owner you’ll be able to help small to medium-sized businesses manage the technology that helps them make money on a daily basis. From computers and the internet, to phones and PDAs, Concerto Networks technicians help businesses run efficiently.

Another option in the technology franchise industry is cartridge refilling. Considering the price of new ink cartridges for printers, it’s easy to understand why this is a booming business. Cartridge Depot is a technology franchise that aims at changing the way people buy ink and toner. With this business, you sell remanufactured cartridges that offer the same quality as new cartridges for just a percentage of the price. Not only does this technology business allow you to help others, but as you recycle cartridges for your customers you will be helping the environment as well.

Technology franchises come in many other varieties as well. Cell phone retailers, web professionals and child-centered technology all fall under this banner. To learn about more options in the technology franchises field, visit www.franchisegenuis.com.

If there’s one thing that people like to put off, it’s cleaning the house. As life gets more hectic around the United States, and weekends become filled with entertainment activities, house cleaning often goes by the wayside. That’s why residential cleaning franchises are one of the best ways you can start a successful business in an in-demand niche. Residential cleaning services are something that more and more people are looking to buy. With this type of business, you’ll be able to fill a growing need in the marketplace and have the professional image that comes with being a franchise owner.

Residential cleaning franchises are a smart business move, whether you choose a traditional maid service franchise or opt for one of the unique and cutting-edge residential cleaning businesses, you’ll have the ability to offer a service that is in-demand no matter where you are located.

Residential cleaning businesses are experiencing a period of growth. U.S. Consumers spend more than $9 million on residential cleaning and that figure is growing at a steady 20% increase each year. With a residential cleaning franchise, you’ll be able provide a valuable service that customers come to time and time again. The vast majority (70%) of house cleaning customers get bi-weekly services. In addition to recurring monthly income, residential cleaning franchises also offer flexible hours and, in some cases, a variety of services to offer your customers.

Since 1988, CottageCare has been equipping entrepreneurs with the tools for success in a residential cleaning business. With this company as your partner in business, you won’t have to worry about scrambling to find new customers. CottageCare implements an advanced direct-mail marketing campaign to boost your business. New customers are routed to the central telephone sign-up department, so you don’t have to worry about answering phones eighty hours a week. The investment to start a CottageCare business is just under $100,000.

Maid to Perfection is a residential cleaning franchise that will give you flexible hours and a variety of services to offer your customers. This residential cleaning business offers training in traditional housekeeping, floor care and carpet cleaning. With Maid to Perfection, customers just have to make one call to receive everything they need to take care of their home. This residential cleaning franchise has a low investment level and low start-up capital requirements. With individual attention and customization of your business plan, Maid to Perfection makes sure that you succeed.

Residential cleaning franchises aren’t just limited to housekeeping. Mr. Window cleaning is a residential cleaning business that offers services in something that most everyone needs. Window cleaning is a pain for most homeowners and you can capitalize on this annoyance with this residential cleaning franchise. Mr. Window has been around since 1993 and has become an industry leader in the window-cleaning arena. By becoming a franchisee with Mr. Window you’ll be getting in on the ground floor of the burgeoning business niche.

Residential cleaning franchises are a smart business move. Whether you choose a traditional maid service franchise or opt for one of the unique and cutting-edge residential cleaning businesses, you’ll have the ability to offer a service that is in-demand no matter where you are located.