The first thing that a person looking into buying a business should do is look at what they are trying to achieve by buying a business. Also, the person should thoroughly understand their goals from a lifestyle, business and financial perspective. Once the person understands these goals, then they can find a business that fits. Most people do not spend enough time with these items, and the result is that they never buy a business or may buy the wrong business.
You can go directly to the franchise companies, but most will not spend time with you to make sure that you are buying the right franchise. It is the franchise salesman’s job to sell you their franchise.
Franchise Resources will help you evaluate all facets of your goals, needs and requirements; then they will match franchises to them. Franchise Resources has reviewed hundreds of franchise companies. Franchise Resources may show you franchises that you would never have considered on your own; or if you did know about them, you may rule them out for the wrong reason. The perfect franchise for you may be one that you have ruled out because you had some misconceptions about it.
There is never a fee or an obligation to work with Franchise Resources.
Franchise Resources works very much like a real estate company that helps you purchase a home. Franchise Resources will spend time helping to decide the right kind of business for you and then will introduce franchises that fit. If you decide to buy a franchise that Franchise Resources introduces to you, then the franchise company pays us. This is similar to the real estate agent that finds you the home, when you buy the home the real estate agent is paid by the seller – not you. In the case of Franchise Resources, the fees are paid by the franchise company.
When you are working with a real estate agent you know that you might purchase the home cheaper if you could find a similar home for sale by owner. This can’t happen working with Franchise Resources to find a franchise. Franchising is regulated by the Federal Trade Commission, an agency of the federal government, and the franchise company can never charge you more because they paid a fee to Franchise Resources.
When you buy a franchise, you are buying a proven method of doing business, and this method is followed by every franchisee in the system. All franchisees are operating under the trademark of that franchise. The relationship between the franchisor and the franchisee will continue for the duration of the franchise agreement.
When you buy a business opportunity, you may also be buying a proven method of doing business, but this method may not be followed by all of the owners in the system. This is typically not a problem because the consumer does not know that you and the other owners all purchased from the same business opportunity seller. That is because you are not operating under the same name or trademark. It depends on the business opportunity whether or not you get ongoing support.
There are advantages and disadvantages to both. Franchise Resources will spend time explaining the advantages and disadvantages, and help you determine which concept would best for your overall goals.
The International Franchise Association indicates that there are over 2500 franchise companies and they are spread over 75 industries. The question should not be what is hot, but what is right for me.
There may be a hot "fast food" franchise. But, in talking about your lifestyle goals, you have indicated that you want to buy a business so you want to spend more time with your family. In the past, you missed coaching your son's soccer team, or you weren't available for your daughter's dance recital. Then, the hot "fast food" restaurant really should not enter into the equation, because this is the type of franchise that will be very demanding on your time.
Also, maybe the "hot" new franchise is a new concept that has not been out long enough to have proven itself. If you are not a risk taker, then you would be better off looking at a franchise that has been around and has a proven success record, but may not be considered "hot".
We find that most people that work with Franchise Resources actually expand their options. But, the answer is no we do not work with all franchise companies. Franchise Resources carefully screens the franchise companies that we work with; not all companies pass our requirements. Also, there are major companies, such as McDonald's that are so well known that many people choose to go direct to them.
But, you will never be limited, because you can work with Franchise Resources and if we can not refer you to a franchise company, then you are free to go direct. There is never an obligation to work only with Franchise Resources.
To be a good franchisee, you first have to make sure that you find the right franchise. It is almost a guarantee that if you select the wrong franchise, then you will not be successful. Even if you are successful, if it is the wrong franchise you may not be satisfied or happy with your choice. An unsuccessful, unsatisfied, or unhappy franchisee is generally not a good franchisee.
Therefore, before you buy, you need to examine your own skills, abilities and experiences. You must look at what will really be a successful franchise for you in relation to your lifestyle, financial and business goals.
Unlike starting your own business, when you buy a franchise you do not get to make all of the decisions. You must follow the business practices set forth by the franchise company. Do you have the type of personality that will allow you to work in this manner?
You must be the type of person that realizes the advantage of operating in a proven model will more likely bring you more success than if you tried to start your own business where you don't have the training and ongoing support provided in a franchise.
Absolutely, buying a franchise is a major investment for most people. It is the type of investment that may be hard to recover from if you make the wrong decision. Therefore, it is imperative to get the advice of professionals before making your final decision. Consult with an attorney, preferably a franchise attorney that understands the intricacies of the franchise industry. You should also consult with your CPA or financial advisers. You might also want to consult with your banker or other financial institutions, a commercial real estate broker and a commercial-lines insurance broker.
You should check with the Better Business Bureau, and state and federal franchise regulatory agencies. Franchising is regulated by the Federal Trade Commission (FTC). If your state requires that franchise companies register in your state, then view the State Registrations page of this website to get the contact information for state regulatory agencies.
If you are not already talking with a Franchise Resources Consultant, then go to the "Contact Us" page of this website and complete the form. Franchise Resources will contact you within one business day.