How to Franchise Your Own Business . So you’ve started your own business, and it’s really started to grow. You are making good money, you have as many employees as you can handle, and you’re looking to expand. But you know that you aren’t able to be everywhere at once. How can you continue to expand your business without expanding your own workload and responsibility? The answer may be franchising, and this article will help explain how to franchise your own business.
What is franchising?
Franchising is when you permit other people to start their own businesses while using the name, brand, and logo of the company you own. Basically, they use your good name and the precedents you’ve set to go into business themselves, and in exchange for this they report to you and hand over a share of their profits, along with reporting to your central management. Some successful franchises include Wal-Mart and McDonald’s.
How to franchise your own business!
Franchising is a common practice among modern businesses, and the first step is to find a corporate lawyer or service firm dedicated to franchising. There are numerous services throughout the country eager to help you in this regard, so it’s important to shop around for someone with a good track record. After all, you will need to establish a franchise which not only provides your customers with what they need, but provides potential entrepreneurs with the guidance and rules they need to succeed. There are also many issues to consider when turning a small, local business into a chain, and it’s important to have good legal and financial advice concerning your business and those of potential franchisees.
Is a franchise right for me or my business?
Not all businesses are meant to be franchises. Generally, businesses which offer products and services with wide appeal and require easy access make good franchises. While restaurants are the ultimate example (indeed, most fast food sold in America is sold from franchised businesses) businesses such as book stores, clothing outlets, and pet shops are also often franchises. While franchises do mean extra hassle and effort, they do offer benefits to those industries which are well suited to them. Wal-Mart, the largest franchise (indeed, the largest retailer in the world) raked in over 387.69 Billion in revenue in 2007, and McDonald’s earned over $22.79 billion. While of course it took many years and thousands of franchises to reach such high levels of revenue, the flexibility and transferability of responsibility offered by franchises ensure that they can expand quickly to meet consumer demand. Starbucks, for example, was able to quickly open many stores to meet demand through franchising, something and non-franchised business, dependent on placing and operating stores through a central authority.
Franchises are a great way to make your business grow. Not only do they offer you the opportunity to make more money by serving more customers in more locations, but they ensure that your stores are staffed by hard working, dedicated franchisees who are dedicated to making your business work.
Edward Dean is an accomplished website developer and author. To learn more about Franchise Your Own Business visit Home Based Franchising for current articles and discussions.
This digital document is an article from Leader’s Edge, published by Michigan Association of CPAs on February 1, 2002. The length of the article is 477 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Franchisees no longer required to add back certain franchise payments. (Tax Tidbits).(Brief Article)Author: John R. OrtisiPublication: Leader’s Edge (Magazine/Journal)Date: February 1, 2002Publisher: Michigan Association of CPAsVolume: 5 Issue: 2 Page: 4(1)Article Type: Brief ArticleDistributed by Thomson Gale
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In this book, Dr. Scott A. Shane systematically helps businesses assess the pros and cons of the decision to franchise. This book focuses squarely on the issues and challenges faced by franchisors. Shane answers key questions such as: What do successful franchisors do differently from unsuccessful franchisors? Why do some companies in an industry choose to franchise while their competitors don’t? How does the decision to franchise affect your ability to compete with firms that don’t? For businesses that choose to move forward, Shane presents proven principles for every aspect of building a successful franchising system, including: recruiting, selecting, managing and supporting franchisees; establishing territories and pricing; managing expansion; and navigating the unique legal and institutional challenges of franchising.
From the Back Cover
In this book, Dr. Scott A. Shane systematically helps businesses assess the pros and cons of the decision (more…)
Franchising can offer businesses a powerful new source of growth and improved financial performance. Now, Dr. Scott A. Shane helps businesses systematically assess the pros and cons of franchising, and offers proven best practices for building a successful system. Unlike competitive books, From Ice Cream to the Internet focuses squarely on the strategic issues and challenges faced by franchisors. Shane answers key questions such as: What do the winners do differently? How does franchising affect your ability to compete with firms that don’t? Shane then presents proven principles for every facet of franchising success: designing the system, recruiting, selecting, managing and supporting franchisees; establishing territories and pricing; managing expansion; and more. Clear and engaging, this book brings together previously inaccessible research on a wide range of crucial issues, from establishing margins to navigating the legal and institutional challenges of franchisi (more…)
Owning franchises in the United States is just one way to raise capital for yourself and for your business. There are all sorts of reasons why one might want to invest in a franchise on their own, and there definitely are some popular franchises in the United States. If you have ever wanted to know about what's required when owning a franchise of a certain company then here is the information that you need. Here's a trivia question that you can take home to your family, though: what franchise has been ranked #1 many times over? You probably could very well guess what it is, and if you were thinking McDonald's Restaurant you were exactly right. There have several times when McDonald?s Restaurant has been ranked #1 for the food category it's been placed in, but here are some other interesting facts about owning a McDonald's franchise:
The McDonald's Franchise
Did you know that there are more than 11,000 McDonald's franchises all over the United States? Indeed, McDonald's has seen tremendous growth in the restaurant level over dozens of years and it has essentially created a world filled with Chicken McNuggets, Big Macs, and Ronald McDonald characters. But it's actually easy to see why owning a McDonald's franchise is popular, and it's actually not as expensive as everyone would have thought. In order to have a McDonald's franchise about the only thing that is required of the franchisee is to have a cash liquidity value of about $100,000. In addition, the franchise fee for owning a McDonald's is set right at about $45,000 and the total investment that one is required to put forth when creating a McDonald's franchise restaurant altogether is somewhere between half-a-million dollars and one-and-a-half million dollars!
On the other hand, owning a McDonald's franchise restaurant is well worth the opportunity, which is why many franchisees see it as a golden opportunity. Considering the fact that many McDonald's franchises make well over $1 million per year, having a McDonald's franchise under your belt may be just the thing you need. In return, though, be prepared to pay a hefty royalty fee to the McDonald's headquarters, which is currently set right at about twelve percent!
Burger King is Much More
You may be surprised to find out, however, that when it comes to owning a franchise, Burger King is more all over. The franchise fee is more, the total franchise investment is more, but the only thing that is less is actually the royalty fee, which is just around five percent! Who would have thought that owning a Burger King, though, would be more expensive than a McDonald's franchise? In fact, a Burger King franchise costs just about double what a McDonald's franchisee is required to have available and pay.
Nevertheless, these are two of the most popular franchises throughout the United States. The McDonald's Corporation is definitely raking in the dough, but the comparison up against their fast food restaurant rival, Burger King, is interesting as well!
7-Eleven® is the leading convenience store chain in the Philippines for over 25 years, and became the country’s first franchisor in convenience retailing when we awarded our first franchisee in 1998.
Today, over 90 stores are operated by our Franchisees; entrepreneurs and business partners who are dedicated to giving 7-Eleven® customers what they want when they want it.
7-Eleven® provides: • a reliable, fresh assortment of high-quality products • speedy transactions • every day fair prices • a clean, safe and friendly environment to shop.
7-Eleven® provides an opportunity for entrepreneurs and business partners to operate their own convenience store with the leading name in the business. If you are a goal-oriented individual who wants to grow with a well-established retailer, we invite you to take a look at what the 7-Eleven® franchise system has to offer.
CONTACT INFORMATION
The Franchise Manager Philippine Seven Corporation 7th Floor, Columbia Tower, Ortigas Ave., near corner EDSA, Mandaluyong City Philippines Hotline: +63 (02)726-9968 Fax : +63 (02)705-5229 Mobile : +63 (920)950-8651 email: franchising@7-eleven.com.ph
The SUBWAY chain is always looking to expand its team of franchisees, so if you are interested in being your own boss and building your own business with a helpful, competent and successful network of support,then the SUBWAY system is right for you.
Contact Information Philippines/Guam
Subway Systems Singapore Pte. Ltd. Sue Sim (Soo Pheng) 77 Kampong Bahru Rd #02-01 Singapore 169376 SINGAPORE Phone: +65-6227-2557 Fax: +65-6227-7239 # Phone: +65-6227-2557 # E-mail: asia_leads@subway.com website: http://www.subway.com/
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