FRANCHISE BUYING GUIDE

Many people dream of having and running your own business, but do not want to take risks by starting from scratch. Buying a franchise is the answer. By purchasing a franchise, you will be given the format and the system built by the franchisor, the right to use the franchisor's name for a certain period and assistance in running the business. Buying a franchise does reduce the risk of direct investment because you would associate with a company that already has a name, but buying a franchise can be expensive. You also may be asked to give up most control of your business, and must perform certain obligations under the contract with the franchisor.  Here are some things you should consider in buying a franchise:  - Cost of Franchise: What you may not be in-refundable, can range from tens to hundreds of millions and even billions of dollars.  - Royalty payments: You usually have to pay royalties to the franchisor despite your efforts have not produced a satisfactory income. Royalties are usually based on gross sales per month. In addition, the royalty is also paid for the right to use the franchisor's name.  - Cost of Advertising: You may have to pay the advertising cost. Some of these costs may be used to finance advertising nationally, or attract new franchisees, who do not directly have an effect on your target market outlets.  - Controls: To ensure uniformity, franchisors will control how franchisees conduct business. This can limit you in making business decisions based on your own intuition.  - Termination & Renewal: You can lose your franchise if you breach the contract. In addition, there is the right franchise term. After that, there's no guarantee you can membaharuinya (renewal). Franchisor may terminate the contract if you, for example, failed to pay royalties or fail to meet performance standards. If your franchise rights terminated, then you will lose your investment. Franchise agreement can be for 5, 10 or 20 years. After that, the franchisor may refuse to renew your franchise contract.  So before deciding to buy a franchise, consider the above matters, and review the contract in detail.  Other things are also important considerations you make, among other things: the funds available for you to invest, invest your goals, your skills, products and services, what you like to sell it, how the track-record of the franchisor, how the franchise that opened and managed, training provided, how far from the outlet you someone can open the same franchise, whether you should buy a supply / product from the franchisor (if yes, whether the price is competitive), what is referred to in the contract concerning the ownership, whether you can sell franchise you to others if you wish, if you want to continue the current contract expired whether automatically be updated, if you later want to change your outlet into an independent business if possible, how disputes will be resolved, what criteria are used by franchisors to select a franchisee, how many large target market that you make and how the level of competition.  Besides, before you decide to buy a franchise, it is important to ask for a list of names and addresses of other franchisees. Phone or visit them and ask about their experience.  With careful in buying a franchise, will increase the likelihood of your success. Many a good franchise, where the franchisor really provide assistance and then grow along its franchisees. But some are only interested in your franchise fee.