Franchising

 Franchising:

 Franchising is the most popular system for growing a business in the United States today. According to every government survey, franchising has experienced explosive growth since the mid-70s and is expected to be the leading method of doing business in the new century.

In the United States, there are over 2,500 franchise systems. These systems have in excess of 534,000 franchise units, which represent 3.2% of the total businesses. This 3.2% of all businesses controls over 35% of all retail and service revenue in the U.S. economy. 

Source: Franchising.com

You would consider a  franchise opportunity if you have a lot of time to devote to building a business.  If you children are independent and your family is in a stable zone and would support you in this venture consider franchising.  Franchising is for the person who has the energy, drive and wants to be in business for herself but doesn’t want to build a business from the ground up. Franchising can be profitable home based businesses.

Determining if an opportunity is a legitimate franchise requires a thorough examination. 

§         Franchisors generally require franchisees to operate the business according to its guidelines, under its brand name, and insists on consistency in all areas. Other opportunities are often less structured. 

§         Franshisors provide training, marketing and other support. 

§         Investing in a franchise opportunity is generally a significant amount of money.  That investment enables the franchisee to use the brand name and system.

§         The franchisee pays a royalty fee to the franchisor which enables them to continue using the system.  Royalty is generally based on gross sales.

Before investing in a franchise business opportunity you should understand the advantages and disadvantages of franchising. 

Advantages: 

• Brand identification.  The brand often comes with an established customer base.
• Thorough initial training and ongoing training, a proven operating system and support material
• Franchisors often continue to improve their systems and add new products and services.

 Disadvantages:

• Being locked into a system
• Since the public expects consistency if they have a poor experience with one location, they assume all locations are as bad.
• Must abide by the franchisor’s marketing decisions.

Conducting Your Franchise Research

You should examine yourself as a potential franchisee.  Why are you thinking about franchising?  What do you want to accomplish in life and in your home based business income opportunity?  Can you manage the financial investment by yourself?  Can you run a business by yourself?  You may consider entering into this venture with a partner or two.  As a mom, running a business can take more time than you are willing to give.  How will your family and personal life fare while you are trying to grow a business?  Remember your reason for seeking home based business income opportunities.  The profitable home based businesses you select should reflect your lifestyle.

Create a short list of industries with which you are comfortable. Then, select an industry that meets your personal needs. Examine companies within that industry.  Just about all franchisors have web sites with information on their companies and their franchise opportunities. Study each one thoroughly and contact each franchisor you are interested in for any more information.  Don’t invest before personally meeting with the franchisor at their headquarters and interviewing franchisees of the organization.

Pay particular attention to: profitability and return on investment; product and service; the operating system; training; marketing; expansion plans (is the franchisor more interested in worldwide expansion or individual franchisee success?); research and development; franchisee relations; the franchise system goals and ability to support the goals; and of course the financial health of the franchisor.

You’re looking for a franchisor who is building a system of franchisees who are committed to getting and keeping customers and to growth and profitability. If a franchisor is devoted to that mission, then you should consider the business in your search for home based business income opportunities.

Consider Home Based Franchises In These Industries:  Internet business, home tutoring, computer services, photography, home inspection, interior decorating, cleaning services.  There are a growing number of franchises that cater to kids.  Different companies within each industry can offer a variety of choices.  One may be right for you.

Entrepreneur.com's list of 50 top franchises is a valuable resource. Click below to view the list. 

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