HOW TO FRANCHISE?

Promoting your business:Look up for Anatomy of a Customer

2009-12-30T18:36:00.000-08:00

An important part of knowing your customer is differentiating who’s who among your clientele. It’s called market segmentation — the process of breaking your customers down into segments that share distinct similarities.

Here are some common market segmentation terms and what they mean:

1. Geographics: Segmenting customers by regions, counties, states, countries, ZIP codes, and census tracts.
2. Demographics: Segmenting customers into groups based on aspects such as age, sex, race, religion, education, marital status, income, and household size.
3. Psychographics: Segmenting customers by lifestyle characteristics, behavioral patterns, beliefs, values, and attitudes about themselves, their families, and society.
4. Geodemographics: A combination of geographics, demographics, and psychographics. Geodemographics, also called cluster marketing or lifestyle marketing, is based on the age-old idea that birds of a feather flock together — that people who live in the same area tend to have similar backgrounds and consuming patterns. Geodemographics helps you to target your marketing efforts by pinpointing neighborhoods or geographic areas where residents share the age, income, lifestyle characteristics, and buying patterns of your prospective customers.

So how do I work from home?

2009-12-30T18:33:00.000-08:00

The flexibility and versatility of home-based work are endless. Some people use their home merely as a base, as an electrician orplumber may do. Others work entirely at home—painting ceramics or operating a medical, accounting or legal practice. Some use their home-based occupation only to supplement their partner’s earnings. Some work from home on a tentative basis, establishing whether their business can provide them with a living, or waiting until it has grown sufficiently to move out into rented premises. (This is how electrical appliance giant Kambrook started.)

These days many home workers make extensive use of computer and telecommunications technology. Telecommuters put in a few days at the office and work remotely from home the rest of the week. Others are full-time teleworkers—self-employed and servicing a number of clients from home.

What can do from home?

2009-12-30T18:31:00.000-08:00

There are different degrees and various ways of running a home based business. There are trades and occupations that you always knew were home-based and others that will surprise you. The only limitations are:

• whether your business is suited to a home location;
• whether your business can get local or council approval to operate; and, naturally, home-based or not:
• whether your business is a viable option. If the answer to all three is ‘yes’, the only other limit is your imagination! So what do people offer in a home-based business? One of three things. They:
• provide a service;
• sell a product;
• manufacture a product.

Providing a service can range from typing to window cleaning, from management consultancy to graphic design or dental treatment. Selling can be by means of direct retail or wholesale. It can be over the telephone (telemarketing), door-to-door (as with Avon), party-plan (as with Tupperware), or network or multi-level marketing (as with Amway).You can grow and sell herbs or flowers, or raise snails for gourmet palates.

As for manufacture, you can make wetsuits or fashion outfits, sew mosquito nets or create wonderful jewellery. One point to bear in mind, however, is that not all of these enterprises will be classified as home-based businesses. If you sell some $1000 worth of Avon or Amway products each year, for example, you are not technically operating a business, and you will not be eligible for the corresponding tax deductions. On the other hand, should you be making $100 000 a year with a mobile
telephone and computer website to handle your cosmetic orders, you most certainly are running a business. And a very successful one at that!

Starting your home business: how they did it?

2009-12-30T18:28:00.002-08:00

Some of individuals employed at home, 62% used computers in their business, with 50% of businesses having access to the Internet. Computer usage was slightly higher for women (66%) than men (63%) but Internet usage was higher for men (43%) than women (35%). Email formed the most common use of the Internet. According to Roy Morgan Research, the number of technology and communications items—personal computers, answering machines, fax machines, and mobile phones—in homes has grown significantly over the past few years. In June 1996, 53% of

Australians had at least one of these four items in their home. Looking at the products more likely to be connected with a home office, Roy Morgan Research found that 8% of those surveyed had a fax machine at home, 34% had a computer, 6% a modem, and 14% had software for business purposes.

The latest Roy Morgan Research figures (September 2002) indicate that 72% of Australians now have a personal computer at home, with 55% having an Internet connection. In comparison, 88% of home offices have a personal computer and 73% have an Internet connection.When it comes to other forms of communication, 63% of Australians have a personal mobile telephone, 39% a telephone answering machine and 17% a fax machine.Meanwhile, 79% of home business owners have a mobile phone, 58% have an answering machine and 50% have a fax machine.

Why you need a franchise attorney

2009-12-27T04:58:00.001-08:00

A franchise attorney is a lawyer who has an expertise in franchising. Your franchise attorney will understand the legal nuances of a UFOC and Franchise Agreement and truly understand how franchising works. This area of expertise is very different from that of a general business attorney or another type of lawyer, which is why hiring a franchise attorney for this process is so important.

The nature of the relationship between a franchisor and franchisee is unlike other types of traditional business relationships, including partnerships. Thus, the documents used to solidify this relationship are vastly different from those with which most general business attorneys are accustomed to dealing.

The concept behind a franchise system is that every franchise unit follows exactly the same cookie-cutter approach to type of business you’ll be operating, the lease you’ll probably be signing with your new landlord is an example of a contract that can be negotiated and altered by you and your attorney (assuming the landlord agrees to the modifications)

The Secret to Forming Profitable Joint Ventures

2009-12-27T04:56:00.000-08:00

By Barry Boswell

Forming joint venture arrangements does not have to be complicated if you follow a few simple steps. This chapter will give you a quick method to get you going. The basic premise you need to understand is simply this: If you target a prospect who is a likely candidate for your offer, the odds are very high that he or she will consider your proposal. Notice that I did not say accept your proposal; I said consider your proposal. Your first objective should be to get your prospective partner to listen to you. The more compatible your product or service is with your prospect and their customer base, the better the odds that your deal will be accepted.

Let’s look at how you should begin. The first step is to determine what you are looking to accomplish and what you can offer your prospect. Then select an ideal prospect or candidate who can benefit the most from what you have to offer. The final step is to craft a proposal to your prospect that provides as little downside risk as possible. In other words, structure your offer in a win-win proposal, preferably with you assuming most if not all of the risk. Your odds for acceptance increase as you more closely match your ideal prospect to your offer and decrease the risk that your partner would have to assume.

It is also preferable that your partner do as little work as necessary when structuring a joint venture. The more work that person has to do to implement the arrangement, the less the chance that he or she will accept your proposal. Try to make it as simple as possible to implement.

Let me demonstrate the process using an example of some deals that I recently put together. As a distributor for a manufacturer of a line of anti-aging nutritional supplements, I have an affiliate program. Because of this, I recently began a campaign to actively recruit affiliate partners. The first step was to assess what benefits I could offer my prospective partners. I determined that I could offer the following benefits:

➤ A weekly newsletter, in which any referrals would be permanently tagged to my partner.
➤ Products that have a reorder rate of slightly over 80 percent.
➤ Reports in PDF format that could be personalized for my affiliate.
➤ Lifetime tracking of any traffic.
➤ A monthly continuity program so that customers could have their products on autoship, thereby assuring a continuous income stream to my affiliate partners.

The second step was to determine who could benefit the most from what I had to offer. I decided that an e-book publisher of a health or diet topic was my most ideal candidate. Furthermore, I could approach these potential partners with different scenarios depending upon what systems they had in place. For example, if they did not have their own newsletter, they could brand mine on their site with an exit pop-up box. They could give their visitors and customers a report branded with their affiliate link, offering them viral possibilities.

Or the report could be positioned as a bonus to their product to help them sell more of their own product. These e-book publishers would now have the opportunity to turn a one-time sale into an ongoing source of revenue and offer their customer an additional bonus at the same time. By focusing on how I can add value to my partner, I can at least get webmasters to listen to my proposal—and, more importantly, to join my growing list of affiliates. You can apply this logic to many situations, even if you don’t have an e commerce business. Let me show you how.

Let’s say you come across a product that sells quite well off-line. You approach the owner with an offer to market it online. Now you determine who online has the ideal customer for that product, along with enough traffic to support the venture. You can structure a commission for yourself. The webmaster promoting the product earns additional income by selling the product. You can get a decent idea of the traffic a site gets by visiting Alexa (www.alexa.com). There is also an incredible software package available that will tell you the number of links that a site has. This information is indispensable for doing research of this nature. You can see it at http://scamfreezone.com/t.cgi?a=191230&e=/spider.

I hope you use this information to structure many ethical and profitable relationships.
-------------------
Barry Boswell is an active online marketer, specializing in forming wildly
profitable and mutually beneficial relationships. Discover his unique system
at http://HealthyBody.Xtend-Life.com. For additional resources and
information on joint ventures and how to structure them, send an e-mail
to JointVentures@ProReply.com and the information will be forwarded
immediately.

Team Up with Great People

2009-12-27T04:53:00.000-08:00

By Bob Serling
My tip is so simple, it will almost sound obvious. It’s extremely powerful, yet very few people ever take full advantage of this technique—if they even use it at all.
My advice is this: Surround yourself with the best people you can find. Look for people who are smarter, better, or faster at what you want to do than you are. Hire them, partner with them, co-market with them, and harness the power of teamwork every way you possibly can. Think you can’t get great people—even experts in their fields or well known celebrities—to work with you? You can. All you have to do is ask. Now, I’m not naively suggesting that everyone you ask will work with you, but as long as you make your request in a professional and compelling manner, many will.

Here is an example of how I’m using this technique in my own businesses. In my product development business, when I wanted to sell a toy to a major toy manufacturer, I teamed up with one of the top names in that industry to get the deal done in record time. This top expert had never heard of me, but I made a professional presentation to him, offered a full third of the revenue for making a couple of key introductions, and the deal was made. The results? We’ll reap handsome royalties for many years to come.

Here’s another example. My new e-zine, Copy Doctor—The Cure for Ailing Response, features 12 world-class copywriters doing free critiques of subscribers’ actual marketing pieces. At first, I was going to do the critiques alone. But I quickly recognized that it would be much more powerful to have a team of the best copywriters in the world working with me to create copywriting breakthroughs for my subscribers.

The appeal is far stronger than me working alone. Plus, because each of the team members gets constant exposure to my subscribers, it’s a win-win deal for everyone.
Try this technique in your own business. I guarantee you’re going to love the results.
-----------------------------
Bob Serling is an editor and the founder of Copy Doctor. Tired of lukewarm
response to your marketing? Team up with 12 world-class copywriters
to get the results you’ve always dreamed of. Complete details are
at www.Copy-Doctor.com.

How to Find Your Exact Buyer on the World Wide Web

2009-12-27T04:52:00.000-08:00

By Dan Seidman
Marketing experts like Jay Conrad Levinson, Joe Sugarman, and Jay Abraham agree perfectly on one thing: The first thing you must do to promote your product or service is to identify your exact potential buyer. The following strategy is an excellent lead-generation system to discover the best people who are willing to spend money on you.

On the Web, it’s fairly easy to locate watering holes where people interested in your topic gather to drink of the knowledge and experience the wisdom of their peers. Here are three strategic steps to take in your journey to sell on the Internet.

1. Set up a free e-mail account. Use this address only for this project. This keeps your existing e-mail account from becoming cluttered with your research. Get it free from a service like Hotmail.com
or Yahoo.com.

2. Sign up for all e-zines that match your business or consumers’ market, using this new e-mail account. This web site lists all the big and little e-zines: http://ezines.nettop20.com. You should also compile a list of keywords for your business type in order to search out all potential e-zines. In addition, go to the web sites of your clients and competitors and subscribe to their newsletters.

3. Read through these e-zines each week to find out which ones are quality newsletters, who is writing articles for them, and how large each subscriber list is. Now that you have found them, what are some possible ways to get them to discover you and buy your product or service? Try these:
➤ Contact the best e-zines to ask if the publisher would review your web site or service.
➤ Post messages with your opinions and expertise to the subscribers.
➤ Write articles to share with the e-zine publishers. Remember, they have to produce new content for each issue. Your offer of help is greatly appreciated. A simple formula to construct an article is to describe a problem, make it worse (share the consequences of the trouble), then offer a solution (perhaps yours!). But don’t blatantly promote your offering.
➤ A great way to leverage other writers who are already contributing to these e-zines is to e-mail them and comment on their articles. Be sure to mention that their writing caught your eye because your expertise is in that business area and you respect their insights. These can be turned into great strategic alliances. Of course, visit these writers’ web sites and sign up for their e-zines.
➤ Consider placing ads in the best e-zines—if you can, contact other advertisers who said they make money from their ads. Just begin to invest a little time communicating with others in your marketplace and you’ll find a herd of buyers. And don’t forget to stop and enjoy the chance to sip from others as well. You just might be someone else’s buyer, too.
Target your market on the Web and you will sell more! Goodhunting.
---------------------------
Dan Seidman is a speaker, author, and coach who manages the awardwinning
web site SalesAutopsy.com. His new book, The Death of 20th
Century Selling: 50 Hilarious Sales Blunders and How You Can Profit
from Them, is available by calling toll-free 1-877-613-7355 or visiting
www.salesautopsy.com/book.html. Dan can be reached at dan@sales
autopsy.com. He is also available to speak at your sales conference or
trade show on these very funny stories and innovative selling strategies.

Will current franchising trends last?

2009-12-26T17:58:00.000-08:00

In 2005 and 2006, eBay consignment shops from several different franchisors became popular and showed dramatic growth in the number of units that were opened nationwide. These businesses are, of course, based on the incredible worldwide popularity and success of eBay online auctions (www.ebay.com) and provide a way ordinary people can buy and sell new and used goods via the web.

eBay itself is an online based auction site. The franchise opportunities available allow people to drop off their items at a retail location in order to have someone else (an independent party, in this case the franchisee, sell those items on eBay in exchange for a flat-fee and/or commission on the sale. The franchises offering these business opportunities are not directly owned or affiliated with eBay, but they rely almost entirely on the ongoing popularity and success of this service.

Computer and online technology changes extremely rapidly. Although online auctions using eBay are popular right now and probably will be for several years to come, will this still be a popular trend in ten or fifteen years, when technology will have evolved dramatically? As a potential franchisee, always consider the long-term viability of a business opportunity and how the evolution of technology might impact the viability of your business.

Another popular tend in franchising is pet-based businesses, including pet supply stores, grooming services, dog-walking services and doggy daycare. The American Pet Products Manufacturers Association reported that in 2006, there were 69.1 million homes in the U.S. that had a pet. In 2005, this translated into a $35.9 billion per year industry that continues to show impressive growth.

Pet-related businesses rely on an unwavering trend in America, which is pet ownership. They also capitalize on the fact that people tend to work all day and need to arrange for their pets to be cared for while they’re at work, traveling for business, or on vacation. Pets also need to be fed, entertained, and cared for, which opens up a wide range of business opportunities in virtually every community across America. Because pet ownership
is not a trend that’s likely to diminish anytime soon, several viable business opportunities exist on which franchisors have only begin to capitalize.

Working parents tend to be spending longer hours on the job and focusing more on their professional lives, a phenomenon that continues to reveal new opportunities for franchise- based kid-oriented services. Parents want to see their kids cared for, entertained after school, and able to stay up-to-date on their schoolwork, even if the parents aren’t around to help their children with homework. Franchise opportunities that provide fitness programs, art classes, science-activities, tutoring, and enrichment programs to young people continued to show steady growth potential, with no end in sight.

Promoting and advertising your business

2009-12-24T17:21:00.000-08:00

If you want people to know about your business and become customers or clients, you first have to educate them about the existence of it, where it’s located, and what it offers. You need to create a want or need for the products and/or services you’re offering, and ultimately drive potential customers directly to your door. With this goal in mind, you must also encourage existing customers to become repeat customers, plus constantly find new and innovative ways to expand your customer/client base and peak new interest in your business in order for it to grow.

As a franchisee, you have an advantage over many small, independent businesses. Depending on the type of franchise you own and operate, you can capitalize on the brand name recognition, reputation, and logos of your franchisor. This makes your job easier, because as you advertise, market, and promote your business, you can focus exclusively on the local area and in many cases, take advantage of the fact that people already know what your company offers because they’re familiar with the brand on a national level.

In other words, if you’re about to open a local Subway sandwich shop, 7-Eleven convenience store, Midas muffler shop, or Merry Maids house cleaning service, for example, chances are the people in your community already know exactly what these businesses offer. Your goal is to utilize marketing, advertising, and public relations to create a local demand for your products/services, plus make people aware that a new location is open(ing) in their community.

Within your advertising, marketing, and public relations initiatives, build on the positive reputation of the franchisor. Doing this is a lot easier and cheaper than building up awareness, brand recognition, and loyalty for an independent business nobody has ever heard of. Right off the bat, people are more apt to trust and try out a new Midas for their car repairs, as opposed to “Joe’s Auto Repair,” because they know and trust the Midas name, immediately recognize the logo, and probably know several people who have already had good experiences utilizing a Midas shop somewhere in the country.
As a franchisee who is probably working with a relatively tight budget, every dollar you spend on marketing, advertising, and public relations has to be used effectively. You can’t afford
throw away time or money pursuing campaigns that don’t generate the desired results. Thus, it becomes extremely important to keep careful track of your overall marketing budget, measure the results of everything you do, and constantly work to fine-tune your campaign(s) in order to generate the best possible results for the lowest investment.

Especially as a start-up business that’s able to capitalize on the name recognition of a well known franchisor, the more you can utilize low-cost or free marketing and public relations efforts, the better off you’ll be.

Developing a detailed business plan

2009-12-21T16:22:00.000-08:00

Before investing your time and money into becoming a franchisee, create a detailed business plan that specifically defines your business, identifies the goals of the business, and includes a balance sheet and cash flow analysis.

As soon as you decide what type of business you want to get into, even before signing a franchise agreement, sit down and create your detailed business plan. For the financial portion of this plan, work closely with an accountant. Ultimately, when you begin applying for small business loans or searching for investors, you’ll need to present this document. Your business plan will also force you to look at the big picture and analyze the viability of the business opportunity before you actually launch it.

A business plan is like a resume for your business, as well as a road map for how you’ll operate and manage it. This is a professional-looking and comprehensive document that combines text and graphics (charts, graphics, pictures, and so on), as well as a spreadsheet with projected financial information.

As you begin formulating your business plan, do extensive research. Analyze the demand for the products or services your business will offer. With the help of your franchisor (and information included within the UFOC, for example), you should be able to accurately predict start-up costs, operating costs, revenues, and profits (keeping in mind that revenues and profits are two very different numbers). By speaking with existing franchisees, you should also be able to gather enough data to anticipate profits. Keep in mind that accurately predicting initial traffic to your business and customer demand for your products or services may be a bit challenging. The more you know about your target customers, however, the easier time you’ll have putting together this element of the business plan.

Creating a well-thought-out business plan is an important first step for any small business owner or franchisee. This document will help you determine whether or not your idea for a business is viable, and can later be used to attract potential investors or help you obtain loans from financial institutions.

The more detail your business plan offers, the better your long-term chances for success will be. Once your business plan is complete, make sure that you have it reviewed and critiqued by your lawyer, accountant, and/or someone who is an expert in business before submitting it to potential investors or financial institutions (to apply for a loan). One of the biggest reasons lenders initially reject small business loan applications is because the business plan submitted does not contain enough information or the right information to properly educate the reader about the business or its projected financials.

Getting financial loan from bank

2009-12-19T20:19:00.000-08:00

This is the section closest to the bank’s heart. It sets out in detail every aspect of your proposed business that involves money – from what you will be putting in to what you will be getting out and the links that connect the two together. The financial information you provide forms the basis on which the bank will make its lending decision, so the more clear, detailed and logical the facts and figures, the happier the manager will be.
The two key components of this financial presentation are the projected profit and loss account and the cash-flow forecast.

Start with a summary containing the following:

• The forecast profit or loss for the first year.
• The break-even point – the point at which your sales cover your overheads. Add up all your fixed costs and you will see how much sales revenue you will need to break even. Get past that point and wow, you’re in profit and on your way to making the business hum.
• While you are building sales the costs will still need to be covered, so explain how they will be funded – how much of your own money you are putting in and how much you will need from the bank.
• Even the most unforgiving bank manager will concede that in order to build your business you will need to sustain yourself with creature comforts such as food, clothing and shelter, so give details of the money you will need to take out of the business to provide for yourself and your family.
•
Profit and loss forecast
This is a statement of your predicted sales minus your direct costs (costs incurred in making the sales) and overheads (wages, rent, rates, etc). For purposes of illustration, here is a simple example:

Forecast sales £20,000
Cost of sales (materials needed to
carry out the forecast work) £5,000
Gross profit £15,000
Overheads £2,000
Net profit £13,000
Drawings (the amount drawn out for
personal living expenses) £10,000
Retained profit £3,000
Cash-flow forecast
Cash is the lifeblood of a business. You may have an impressive profit forecast but if you don’t get paid, or get paid too late to pay staff and suppliers, you are in real trouble. Sadly, it is not uncommon for a small business to have to pay for materials in advance and then to be kept waiting for months for payment from customers to whom you have sold goods or services. This lag between making payments and receiving them can spell trouble for businesses that would otherwise be trading profitably. In this cruel world, where size means strength, when it comes to paying up on time the biggest firms are usually the worst offenders.
Fortunately, most franchised businesses sell either to the public or to other small businesses and therefore seldom find themselves at the mercy of large firms. Better still, many franchises get cash on delivery, thus ensuring a healthy cash flow.

Even so, cash-flow forecasting helps you to predict peaks and troughs in your cash balance; to plan borrowing; to predict how much surplus cash you’re likely to have at a given time; and to make the most efficient use of your resources. Having an accurate cash-flow forecast will help ensure that you can achieve steady growth without overtrading. You will know when you have sufficient assets to take on additional business and, just as importantly, when you need to rein back.

A cash-flow forecast is a record of when you expect to get money into your business and when you expect to pay it out. The aim is to show the bank when your need for cash is likely to be at its greatest and to plan your funding accordingly. The forecast is usually done for a year or quarter in advance and divided into weeks or months. It is best to pick periods during which most of your fixed costs – such as salaries – go out. The forecast lists:

• receipts – cash from sales, cash from debtors;
• payments – payments to suppliers, cash purchases, rent, heating,
• lighting, etc;
• excess of receipts over payments – with negative figures shown in
• brackets;
• opening bank balance;
• closing bank balance.

Researching franchise opportunities

2009-12-05T18:41:00.000-08:00

One common trap potential franchisees fall into is relying exclusively on the help of a franchise broker to decide what type of franchise-based business opportunity to pursue. A franchise broker is a third-party consultant who matches up franchisees with franchisors based on common goals. Some franchise brokers are truly independent and have the interests of potential franchisees in mind as they offer their services. Other brokers, however, represent only a handful of franchisors and get paid based on creating matches with franchisees that may or may not be suitable. As a result, the brokers’ focus is on matching up the best potential franchisees with specific franchisors, based on the specific qualifications a franchisor is looking for. Thus, the information and guidance you receive might be biased.

On paper, using a franchise broker might appear to make sense. After all, they’ll supposedly help you narrow down your many options and assist you in choosing what the broker believes is the perfect opportunity for you, based on an in-depth personality profile, financial evaluation, review of your business experience, and a look at your goals. Before working with a broker and relying on his or her advice, however, determine for whom they’re actually working. Does he or she represent you or the franchisor? Also determine exactly how the broker is compensated and what criteria are used to help the broker make recommendations.

As one of the final steps before paying all that money when you sign on with a specific franchisor to become a franchisee, ask whether you can spend a full week working as an employee or observer at an existing franchise location. This will help you to start learning the business, plus it’ll help you determine whether you’re cut out to run this specific type of business and work within the environment that the business creates.

Instead of relying exclusively on a franchise broker, seriously consider doing your own research, making contact with potential franchisors yourself, and then hiring your own attorney and/or business advisor to provide the guidance you need. For
help finding the experts you need, every September, Franchise Times (an industry trade publication) publishes an annual Professional Services Directory.

How much capital needed for franchise?

2009-12-04T15:32:00.000-08:00

Launching a new business can be expensive. Becoming a franchisee and launching a franchise-based business involves additional costs. As you create your budget and determine how much capital you’ll need to get your business off the ground, Watch Out!

Upward of 84 percent of all small business loan applications are initially declined by lenders, often because of poor presentation and improper completion of the necessary applications and paperwork. here are some of the major expense categories you’ll need to consider.

■ Franchise fee: This is the initial fee you’ll pay to the franchisor to become a franchisee. Depending on the type of business and the franchisor, this fee can be anywhere from a few thousand dollars to over $1 million.

■ Royalties, licensing fees, and ongoing franchise fees: In addition to the initial franchise fee, this expense category includes all the ongoing fees you’ll need to pay the franchisor. Depending on the type of business, these fees will be called things; however, they’re usually based on a percentage of either revenue or profit that your business generates.

■ Lease (real estate): The monthly cost associated with leasing, renting, or purchasing the real estate from where your business will operate.

■ Marketing and advertising: One of the ongoing fees most franchisees are required to pay the franchisor is for ongoing marketing, advertising, and public relations on a /national basis. This fee goes, for example, toward building overall brand awareness.

■ Required purchases: This expense category refers to the ongoing purchases you’ll to make in order to operate your franchise. These purchases can include everything from inventory to employee uniforms.

■ Training costs: Depending on the franchisor, you may have to pay for training materials (or additional training beyond what’s initially offered to new franchisees). This expense category might also include outside training you opt to pursue, plus the added expense involved with training your employees.

■ Startup costs: There are many expenses involved with establishing a business and getting it up and running. You’ll begin to incur these expenses long before your business begins to generate any revenue or profit. (A partial list of start-up expenses can be found in the following bullet list.)

■ Living expenses: During the period when you’re working full-time on the establishment and operation of your franchise-based business, but that business is not yet generating any revenue or profits, your personal living expenses will need to be covered. It’s essential that, as a franchisee, you set aside enough money to maintain your style of living, even when no regular paycheck is coming in. The period of time this will be necessary can be twelve to eighteen months, and sometimes longer, depending on the type of business you’ll be running.

■ Other costs and fees: Being a responsible business owner means being prepared for the unexpected. Having adequate capital on hand to deal with unexpected problems and expenses is essential. As you’ll read several times throughout this book, being undercapitalized as you’re establishing your franchise-based business is one of the most common mistakes first-time franchisees make, and it’s one of the leading reasons why new businesses fail.
In addition to the fees listed in the previous section, some of the initial start-up costs and fees you’ll most likely be responsible for include the following.

■ Employee payroll: The salaries and benefits you’ll need to pay your employees, starting from the day each person is hired.

■ Grand opening expenses: The costs involved with any special promotions, marketing, advertising you utilize in conjunction with your grand opening. The cost of giving away product samples or free gifts to customers should be calculated into this portion of your budget.

■ Insurance: No matter what type of business you’ll be operating, it’ll be necessary to have insurance. Be sure to consult with your franchisor and several insurance companies about the type of insurance that’s necessary, as well as the amount of coverage you’ll require.

■ Inventory: The costs associated with establishing and maintaining the inventory for your business.

■ Leasehold improvements: Any construction you do to your location to prepare it to meet the requirements of your franchisor will fall into this category. This might include adding store fixtures, painting, lighting, flooring, making interior or exterior renovations, and so on.

■ Legal and accounting: As soon as you decide to become a franchisee, you’ll want to hire a franchise attorney and accountant (CPA). The costs associated with hiring these experts need to be incorporated into your overall budget.

■ Licenses and permits: This expense category includes the fees associated with acquiring any and all licenses and permits required to open for business.

■ Local marketing, PR, and advertising: In addition to the ongoing fee franchisees pay to the franchisor to cover marketing, PR, and advertising on a national/regional level, as a franchisee looking to generate local business, you’ll need to establish a budget to handle these tasks on a local level.

■ Office equipment and supplies: Depending on the type of business you’ll be opening, this expense category can include everything from computers and telephone equipment to paperclips and business letterhead.
■ Signage: Interior and exterior signage is an important pro- motional tool and is a necessary expense for many types of franchises, particularly retail-based businesses.

■ Taxes: As a franchisee, you’ll be responsible for paying a variety of different types of taxes, based on the type of business you’ll be operating. Paying your taxes late, not properly filing tax information with the IRS, or miscalculating tax payments can all lead to serious financial penalties and problems with local, state, and/or federal authorities.

■ Training (including travel and lodging): Even if all necessary training is included within the franchise fee paid to the franchisor, as the franchisee, you’ll typically need to pay your own travel expenses (airfares, lodging, meals,rental car, and so on) for the trips you take to the franchisor’s corporate offices or training facilities. You may also be required to purchase training manuals, videos, audio programs, or other supplies for yourself and your(future) employees.

■ Utilities: Gas, electricity, water, Internet access, and telephone service are among the monthly utility bills your business will most likely incur. If your business is operating from a mall or shopping center, for example, in addition to the utility bill for your own location, you’ll probably be responsible for paying a portion of the common areas’ utility bills, such as parking lot lighting.

■ Working capital: The day-to-day operations of a business cost money. In addition to all of the expenses listed here, keeping your business running will involve a wide range of other expenses you need to be able to cover, including taxes.

How franchises work?

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A franchise opportunity is a formal business relationship between the franchisor and the franchisee. The franchise itself is an established business that has a name, along with products or services that it sells using a business model that’s proven to be successful. The franchise follows an established method of doing business that often utilizes proprietary business models, practices, tools, and/or resources, including trademarks (such as a well known brand name and logo), all of which have allowed the business to achieve success and consumer recognition.

The franchisor and franchisee engage in an ongoing business relationship. The franchisee is typically the proprietor of his or her own business. However, the way in which the franchisee operates the business is often overseen and somewhat controlled by the franchisor. The franchisor provides the product(s) or service(s), or at least lines up suppliers and provides the entire system for operating that business. How the franchisee/franchisor relationship takes shape varies greatly, depending on the franchisor and type of business.

In exchange for the services, tools, and resources provided by the franchisor, the franchisee pays a variety of different fees.This step will describe further on the next articles.

Selling franchise business

2009-12-01T02:08:00.000-08:00

Many businesses, in a wide range of industries, rely almost exclusively on a sales force to generate revenue. Like so many other jobs, people who work in sales require skill, knowledge, and specialized training. Highly competent and skilled sales- people will often have invested years fine-tuning their skill set to the point that they could successfully sell absolutely anything to anybody, regardless of the situation.

While it’s possible for virtually anyone to learn basic sales techniques and skills, few people actually have the personality, confidence, motivation, intelligence, and ability to deal with and overcome rejection, which is a prerequisite to becoming a successful sales professional. As with so many specialties, simply memorizing a sales script or learning a handful of sales tech- niques won’t replace the need for actual hands-on experience when it comes to achieving success.

If your business will rely on sales people in any capacity, it’s important to find and hire the most qualified sales professionals, right from the start. After your sales team is in place, it’s vitally important to keep them motivated, using a variety of incentives, including a competitive compensation plan.

Offering bonuses or commissions, for example, puts each sales person’s earning potential into his or her own hands. Paying salespeople a five-, ten-, or even twenty-percent commission on the new sales they bring in is often extremely beneficial for a business that relies on those sales for its revenue.

Taking over an existing franchise

2009-11-30T17:24:00.000-08:00

In some situations, once you focus on a specific franchisor you’d like to work with, you’ll have the option of taking over an existing franchise (as opposed to opening a new location from scratch). Taking over an existing business has many benefits, including the following.
■ The location has already been selected, and the business is fully built and operational.
■ There’s already a staff in place, so you won’t immediately have to hire and train a new team of employees.
■ The businesses’ customer-base is established. The business has a local following and reputation within the community.
■ You can evaluate the past financial records of the existing business and more accurately calculate profit projections for the future.
■ You can potentially save a fortune in startup costs.

Of course, if the opportunity to take over an existing franchise location exists, there must be a reason for it. It’s important that you determine this reason and make sure you’re not buying into what was a huge problem or burden for someone else.
If an existing franchisee is simply retiring, that’s one thing. If, however, he or she is disgruntled or is on the verge of bankruptcy, those are other situations altogether.

If you decide to take over an existing franchise location, you’ll need to negotiate with the existing franchisee as well as the franchisor. The process is somewhat different than starting a new franchise location from scratch; however, for the right person and when the right situation exists, this can be an extremely viable option.
Along with negotiating purchase terms of the existing franchisee, you’ll need to work with the franchisor to make sure you can easily take over the existing franchise term (from the previous franchisee), plus have renewals available to you. Make sure you understand exactly what’s being offered by the franchisor and that your interests will be protected over the long-term.

Some attorneys that specialize in franchising also offer legal services for potential franchisees looking to take over existing franchises. It’s important that you hire an attorney with this type of experience. In addition to relying on specific franchisors to tell you about existing franchise locations that are available to be taken over, there are companies and resources that specialize in promoting the sale of existing franchises. Some of these companies and resources include the following.
■ Entrepreneur: A monthly business-oriented magazine that has a classified advertising section that lists existing franchise-based businesses for sale (www.entrepreneur.com)
■ Franchise Update: A quarterly print magazine (www.franchise-update.com)
■ Franchise.com: An online service with the goal of expediting the franchise buying and sales processes for franchise buyers and sellers (www.franchise.com)
■ National Business Exchange: A quarterly print publication and online database that lists existing franchises for sale by their current owners or franchisors (www.businessexchange.com)
■ The Business Resale Network: One example of a company that brokers existing franchises (www.br-network.com)
■ USA Today: A national daily newspaper that often runs classified ads for existing franchise-based businesses for sale
(www.usatoday.com)

Differences between franchise and traditional business

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When you decide to launch your own business, you become your own boss. This means that you take ultimate control over your professional and financial future. If you open a traditional mom-and-pop business, it becomes your sole responsibility to plan and then manage all aspects of the business, with little or no outside support or guidance. You need to develop your own business plan; find your own location; handle all your own marketing, advertising, and promotions; train yourself and your employees; manage your own finances; establish relationships with distributors and supplies; and establish your company’s reputation in the community in order to build awareness and customer loyalty.

The benefit to owning and operating a franchise is that some (although not all) of the preliminary research and planning is done for you. As a franchisee, you’ll be starting off with a business model and plan that has already proven itself to be viable.You’ll also be offered training and ongoing support, have access to suppliers and distributors (if applicable), and be able to capitalize on the name recognition and logo(s) of the franchise.

Although a potential customer probably has no clue what to expect from Joe’s Burgers or Joe’s Sub Shop, virtually everyone in America knows when to expect when they step into a McDonald’s restaurant or Subway sandwich shop. Whether you walk into a McDonald’s in New York City or Houston, Texas, your experience as a customer will be virtually identical. This consistency is perhaps one of the biggest benefits of operating a franchise.

One potential drawback to operating a franchise (as opposed to an independent, stand-alone business) is that you must adhere to the guidelines and operating procedures out-lined by the franchisor, whether or not you agree with them.

You must also pay the required franchisor fees on an ongoing basis. In some situations, these fees make sense. In others, however, like when the brand name isn’t well known and the national or regional advertising isn’t helping your business, these ongoing fees may not make financial sense. In Chapter 3, we’ll take a closer look at the fees associated with owning and operating a franchise.

Franchise opportunities vary greatly. Some franchisors offer single-unit business opportunities. This means you (as the franchisee) obtain the right to open one single location or unit. There are also multi-unit franchise opportunities that allow you to open several locations, often within a specific region or territory. This means that as the franchisee, you’re given an exclusive territory or region. Some well established franchisors look only for franchisees who will ultimately want and be able to open multiple units within a predetermined time period.

In some situations, the franchisor might offer you what’s often referred to as a Master Franchise. This means that in addition to being the exclusive franchisee for a specific region or area, you have the right to sub franchise (sell additional franchises) to other prospective franchisees, and thus benefit financially.

When opening up discussions with a potential franchisor, make sure you fully understand the business arrangement and the type of franchise opportunity that’s being offered. As you begin negotiating with a potential franchisor, seriously consider hiring a lawyer who specializing in franchising to represent you. Becoming a franchisee requires you to sign a variety of binding legal documents and engage yourself in a potentially long-term business relationship with the franchisor. It’s vital that you understand what you’re signing, know what you can expect from the franchisor, and understand what’s expected of you. You can find referrals for experienced attorneys who specialize in franchising through the International Franchise Association (www.ifa.org) or through your state’s bar association. Early on, develop a relationship with an attorney whom you can trust and who can guide you through the process of acquiring, opening, and then managing a franchise-based business.

Self skills to begin business franchise

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As a business owner and operator, part of your daily responsibilities will be interacting with people in a variety of capacities. For your employees, you must provide leadership, guidance, support, a friendly work environment, and (at times) discipline. For your suppliers, distributors, and franchisor representatives, you must be able to develop a strong,positive, ongoing business relationship in order to achieve your objectives.

Finally, for your customers, you must be able to provide them with top-notch customer service, support, and a welcoming environment, regardless of the type of business you operate. Being able to accomplish this requires that you possess leadership, management, interpersonal skills, and communication skills (verbal and written). Your skills must also include being able to negotiate, listen, speak effectively, oversee and manage others, and always maintain a professional demeanor regardless of the situation. If you’re having a bad day dealing with various problems, and didn’t get a lot of sleep the previous night, you can never take this out on your customers, employees, clients, or anyone else with whom you do business.

Watch Out!
As you open discussions with other franchisees from around the country, keep in mind that market conditions and the local economy vary by region. Even if a franchisee continues to experience success in one part of the country, this doesn’t guarantee you’ll experience similar success in your geographic region. Before opening for business, do additional research to determine whether the community where you plan to establish your business can support it, given the local economy, potential customer base, and other localized factors.

Some people are born good communicators and have a natural ability to interact well with others in almost any situation. If you already possess this natural ability, you’ll certainly have an advantage as you embark on your business venture.
If you determine that you’re lacking certain skills, one of your top priorities should be to attain them, because they’re typically not what will be included in the training provided by the franchisor. Your local community college or adult-education
program is an excellent place to start. Reading a variety of books that cover the core principles of leadership, management, and communication skills will also be extremely valuable. When possible, learning directly from other people who possess these skills is also beneficial, which is why spending some time working as an employee for other franchises may prove useful.

Choosing the best franchise for you

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What most people don’t realize is that there are literally thousands of franchise opportunities available in America. In fact,one out of every twelve businesses currently operating inAmerica is a franchise. This translates to more than 550,000
franchised businesses generating more than $900 billion in annual sales.

Although most people think of McDonald’s or Dunkin Donuts when they hear the word “franchise,” there are morethan 3,000 different franchise opportunities available in more than seventy-five industries, many of which go well beyond the realm of fast food. Chapters 3 and 4 introduce you to many different types of franchise opportunities.

As a consumer, companies you see in your neighborhood or at the mall and perhaps do business with on a daily basis may actually be franchises. For example, McDonald’s, The UPS Store, H&R Block Tax Services, Dunkin’ Donuts, Midas, General Nutrition Centers (GNC), Subway, 7 Eleven, Ramada hotels, 1-800-Flowers florists, Party America, ACE Hardware Stores, FastFrame, Minuteman Press, Payless Car Rental, Kumon Learning Centers, Curves Fitness Centers, Mrs. Fields Original Cookies, Dairy Queen, Pizza Hut, KFC, Taco Bell, Supercuts, Merry Maids, Pearl Vision Centers, Fast Signs, and Jenny Craig are a random selection of well known franchise-based businesses you’re probably already familiar with and that may already be present in your community.

Ideally, what a franchise offers is the closest thing someone can get to a complete turnkey solution for achieving success when operating a business. For many people, opening a franchise is the added edge needed to become their own bosses and
launch their own successful businesses, because much of the fear and some of the risk associated with this process is eliminated by the franchisor.

Franchisee Your Business

2009-11-24T22:55:00.001-08:00

If you want to have a successful business and want to have a wide network, you will have a two choice; open branches or franchisee your business. If the choice falls to the first, employers are required to have a large fund, and sufficient human resources management self-managed. However, if the funds have not enough to open a branch, and inadequate human resources to be placed in various branch, there are still other ways, namely franchisee.

We have had many successful entrepreneurs choose franchising patterns in developing its business. Sure, using the pattern franchise means you must be ready to share profits with the investors or franchisees (franchise). Its gonna be different if you open their own branches, all profits will go into your own pocket.

But the pattern of a franchise became the right way for entrepreneurs who have financial limitations. Why? Because capital come out to open new outlets, working capital and all licensing fees paid by franchisees. Franchisee in fact become a new revenue source for the Franchisor of the payment of franchise fees and royalty fees.

Limitations of human resources can also be overcome because the franchise, then Franchisor obtain the best business talent in their respective territories to develop the business. They are as interested local entrepreneurs franchise (franchisee) that you offer. Also, you do not mess around with the management of employees as entirely the responsibility of franchisee. Limitations management problems is not great. Therefore, the management of franchisee owned outlets conducted independently. Chain management business into business units independently.

Then, when you can franchisee business? Typically a business, then the product you sell must be accepted by the customer. In this case, you sell a franchise must meet several hunters policy so franchisees can glance at your property. Whatever it?

First, Your business is succesfull. Measure of success not only in terms of months. At the very least, Franchisor need to prove the success of business in the last three years. Less than that, not a reason for the potential investors to buy them.

Second, ensure that the franchisee can succeed. That is, the business built by the Franchisor is very profitable and sales performance trend shows a continued increase. Do not let your intentions just to get a franchise fee or to apply short-term targets without considering the factors franchisee.

Thirdly, business can be operated by investors. You or your staff should be able to train potential investors to do business in the not too long.

Fourth, you must have a user manual for all business operations, whether daily, weekly and monthly .. The goal, in order to franchisee can run the business according to a systematic manual as you do to achieve maximum results.

Fifth, the product you sell should have a market appeal in the long term. Some products have a very short lifecircle, especially for fashion products. You have to think about the concept that products can survive long in the market. Therefore, you must have a product differentiation or uniqueness of its own.

Sixth, can run in various places. This means that the business can be run in various places in accordance with business requirements and can be moved to other places, including overseas.

Seventh, your business must have sufficient market potential to be enjoyed by the franchisee. In this case, the franchisee must also be able to achieve a reasonable profit after depositing the first capital for the business establishment. Do not be withdrawn until the margins are too high Franchisor Franchisor detriment.

Eighth, efforts are already registered with a name or brand. This must be done not only to protect your business, but also the Franchisor who use your brand.

Finally, as a Franchisor you must have a human resources and adequate funding source to your business to supporst front.

So, already to franchisee your business?

Choosing the right franchise business

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Business must bear profit. The principle that must be held by the franchisee or franchise buyers in determining their choice. Do not be fooled by the promises of the Franchisor. But that does not mean you have to prioritize excessive suspicion. Franchise proved more profitable for its investors. It's just necessary carefulness owned by the prospective investors.

Some research says that, from the local franchise of the 129, only 15% of his course that franchiseable or qualifies as a franchise. The rest could not be categorized as a franchise business but are claimed as a franchise business. These can be included as a new business opportunity.

So what should be a handle to the franchisee in selecting a franchise? In an instant, there are two things that need to be attention of the franchisee before buying a franchise business. First, franchisable effort must be successful first. How to prove it? A franchise business can be categorized as proven success with profit and loss balance sheet. Can also evidenced by the visible through the number of customers, such as customer queues at the business counter.

Second, these efforts are unique or differentiation. Its uniqueness owned business to differentiate with other businesses in similar industries. Why is this uniqueness is important? Because of this unique added value that will be an attraction for customers. The uniqueness can be determined from the product, may also through its services. For instance, mixed with seasonings that add cashews will be different with just the peanut flavor. Thus, additional cashews will add delicious taste mixed spices. That is the uniqueness or differentiation.

Others are also important by the franchisee was offered a franchise business should have systems and standard operating standards. This concept is also its implementation must be tested in the field, not just theory. So, no one if the potential investors try to get to know the kitchen activity.Not least, franchisee also needs to recognize the marketing program of the Franchisor. This marketing program is closely related to the future of the business faces competition in the industry. Franchisor marketing program can not be ignored because it involves efforts to increase brand awareness and image from time to time.

Investigation
Once again, caution becomes important factor in choosing a franchise franchisee to avoid failures in the future. Today, the development of franchise business very rapidly and continues to grow like mushrooms in the rainy season. However, existing data indicate the odds of success 60% of new franchises. The fact is far less than in the success of American opportunity above 90%. Therefore, the franchisee needs to conduct an investigation on who he glanced business before deciding to buy it.

Investigation needs to be done regarding the franchise, first, credibility and accountability of the Franchisor and its franchise business. Why is this necessary? At least to get a more definite answer that the business would purchase it reliable. Way, check out the company's reputation and the names of its shareholders. The franchisee can investigate and ask who their CEO, their backgrounds and how their commitment to that effort. If they included the hit and run, should be left alone.

Second, the Franchisee will also need to know the jelly from the company's organizational structure and functions of the franchise their respective fields. Why is this necessary? Companies that are not solid, certainly will not last long. Well, cohesiveness of a company can be seen from the structure of the organization and its staff who filled the post of each section. Those who fill the posts in every part of the organizational structure that will help and give support to the franchisee. If it is not solid and are not capable, how can give advice to the franchisee.

Third, do not just rely on the investigation from the outside, do well from the company's Franchisor. This step needs to be done to measure the Franchisor claims made to the investors. Way, the company went Franchisor, observe the atmosphere and the situation in the company. Try talking to the staff at the company to find a system that will be given assistance later.

Fourth, find out who the franchisee make a dialogue with them. Because of this they can get more information objectively, and to obtain sales data and the possible benefits that can be achieved. If there is a former franchisee of this effort, should also be pursued to determine the causes for termination.

Fifth, compared with two or three similar franchise competitors to gain a more objective comparison before deciding to buy. Could be, have a franchise business competitors are much better.

Finally, look for second opinion from the experts or consultants franchise before deciding to buy a franchise. This expert opinion can be the most complete guide to avoid the possibility of an unwanted, good law is concerned, brand or business opportunities.

SOP function in franchise business

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Every business of any company or business name must have a standard operating procedure (SOP). SOP is a standard day's work in writing of job description or job description. The contents could include about what to do, when, where and by whom, and with the most effective way for this.
SOP is a guideline of how the process of a job function can be enforced. Existence can be a reference if found something was not optimal in this case is not efficient and effective.
In general, people or companies have not used to making the job descriptions and job descriptions are well written but it is a guide. As a result of work procedures that often occurs is not clear. If it were so what happened? Of course, the chaos of work to make ends running a company to be not optimal.
Included also in the franchise business. According to the observations are still many who do not make a good SOP and correct. If there is a franchise business is already made, but the SOP is different and not standard.
In the franchise business, SOP including business key factor. Because the SOP will be brought to the other party in this franchisee. With so inevitably SOP package must be a written document given to Franchisor franchisee, and the franchisee must follow in order to run in their business.So, SOP within its function is more to the franchise documents for administration order and uniformity of all outlets.
Because it is a package written document given to Franchisor franchisee, should be SOP in the franchise business should include three things. First, the introduction, the company's history, organization Franchisor and Franchisor and franchisee obligations. Second, the general rule should include surgery, critical success factors matter, quality standards, customer relations, inventory systems, product variation, operating procedures, pricing, how to maintain brand image and customer service. Third, maintenance, finance, marketing, operations and personnel.
To make a good SOP, should be formed a special team and this team should have its coordinator and supported by top management. Each team a different task smoothly. Sales team for example, making standard operating procedures regarding the sale and purchase of the team making the purchase SOP and so on.
The sources in the manufacturing process can be drawn from the experiences ever experienced. Then from these experiences which are filtered and selected the best, which can make the business run maximum.
Although it is also must always be remembered, that in making SOPs should refer to the problem of ease. So that made SOP should not be difficult, easy to understand and easy to capture.
Indeed, business is always changing its name over time. Therefore in this SOP should should also always be reviewed and evaluated. If it is less a maximum of SOP can be changed, but still must consider the existing conditions.
Indeed, it is easy to establish standard operating procedures and can be made by anyone. If for some say it is more difficult to factor 'laziness' alone.

10 tips to start your own franchise business

2009-11-23T23:01:00.000-08:00

1. Self assessment
Be honest with yourself. Do you already have the right attributes to build a successful business? Overnight success story is very rare, but that requires more hard work in building a business. Running your own business can be more profitable, but can also ask for full responsibility of customers, suppliers, and employees.
2. Conduct Research
In common sense you need a long journey towards a decision whether the franchise is estimated to be suitable for you. Make sure that you see a business opportunity and you have the skills and able to reach about it.
3. Ask Questions
When considering a franchise, it is important for you to ask questions so you can make decisions with knowledge (informed decision).
4. Talk to franchise company
Important for you to talk to existing franchise company. Ask about the help they get and whether they achieve their initial financial projections. Take time to talk with some franchise company to get a broad opinion before you make a decision.
5. Family support
You will need family support when building a business. It is advisable to discuss how the influence of his own work on the family before making a commitment. If you do not get full support, it would be folly if it continued. Therefore involve them in decision-making process.
6. Professional Advice
Before making a commitment to invest in a franchise business, you should seek advice from professionals. Banks will give you a valuable assessment. Business network consultants and accountants can also assisted you in producing a business plan.
7. Business Plan
Business plan has a dual purpose. As a working document that will be bencmark your business performance, and represents the financial support for your business. Important business plan presented well. Also suggested sending a copy to the creditor before the scheduled meeting.
8. Borrow the amount of the appropriate
The more you borrow the greater the costs will be borne. As a result you have to generate greater profits for mentupi costs. Because it borrow as needed. If you fail to get capital in sufficient quantities, may be difficult to close again (re-approach) creditors after that to ensure additional funds, especially if the business is not performing as projected in the business plan.
9. Emergency Reserve
Always advisable to have a reserve fund if the business takes a longer time, as was expected to take off. Emergency plans for spending a few years will be very useful.
10. Follow System
You invest in an exhausting business model, tested, and proven. It is therefore important to follow the system developed by the franchisee to open opportunities for your success.