Have you seen JobMonkey’s newest section on franchise opportunities? A franchise is a national or regional chain, in which each storefront is owned individually rather than by the national office. A franchise agreement gives the individual owner (the franchisee) the legal right to sell the franchiser’s products or services.
If you are interested in starting your own business, but would prefer to minimize some of the risk of having to develop your own business plan, the franchise model is a good option — especially during this recession when financing for unproven businesses has all but dried up.
And that’s not just my opinion. The Boston Globe recently ran a profile piece of a number of new Boston-based franchise owners. In listing the benefits of owning a franchise, the article stated that:
Franchises are attractive for some entrepreneurs because they can offer opportunities for those with an appetite for some risk – just not as much as starting an entirely new venture, new owners and industry observers say. Depending on the type of business, franchises offer different levels of training and support.
If you are serious about buying a franchise, there are a few key questions you need to research first:
- Is the home company financially healthy?
- Does the home company it helps franchisees find and develop a location?
- How does a franchisee get inventory and supplies once they are up and running?
- Does the franchisee have control over pricing, or is that determined solely by the franchiser?
- What is the cost of purchasing a franchise? Does the franchisee owe royalties or a percentage of sales on top of the initial cost?
- If a franchisee wants to end the franchise agreement, what is the process?
Also, check out this recent article from the Lakeland (FL) Ledger, Own It Yourself: Franchisees Don’t Regret the Decision.
Have you thought about buying a franchise? What companies have you looked in to?