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How to establish a profitable franchise

ArticleID 80  
Writer Grace Odinga
Category Personal Article

A franchise is a license or agreement among parties that are legally independent and gives people (franchisees) the authority to do one or all of the following;

• Market products or services using the trademarks or names of other franchisers or businesses

• Provide support to other franchisees

• Market products of other franchisers using their operation methods

There are different types of franchise arrangements as follows;

- Single unit franchise

- Multi-unit franchise

- Area development franchise

- Master franchise

The right way to buy a franchise

Follow these tips to get the most out of buying a franchise. If you do not follow these simple tips there might be some consequences as these field is full of fraudsters out for your hard earned cash.

 Evaluate yourself – What do you like and dislike?

 Research your market.

 Consider your franchise options.

 Talk to existing franchisees.

 Ask the franchiser some tough questions.

 Make your choice.

How to make your Franchise Appealing

 Unique concept or marketing approach

 Profitability

 Registered trademark

 Business system that works

 Solid training program

 Affordability

 Positive relationship with franchisees

How to detect dishonest franchisers

 Claims that the contract is “standard; no need to read it.”

 Failure to provide a copy of the required disclosure documents.

 Marginally successful prototype or no prototype.

 Poorly prepared operations manual.

 Promises of future earnings with no documentation.

 High franchisee turnover or termination rate.

 Unusual amount of litigation by franchisees.

 Attempts to discourage your attorney from evaluating the contract before signing it.

 No written documentation.

 A high pressure sale.

 Claims to be exempt from federal disclosure laws.

 “Get rich quick” schemes, promising huge profits with minimal effort.

 Reluctance to provide a list of existing franchisees.

 Evasive, vague answers to your questions.

profitable franchise, franchisees,franchisers, make money, entrepreneur, Entrepreneurship
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