Franchise Buyer and Owner Blog

Whether you are considering a pet care franchise, a hair salon franchise or a location in a fast-food chain, the most important thing you can do before choosing a franchise is research.  This doesn’t mean just looking at the franchisor’s web site.  It means coming up with a list of questions you would like to ask the franchisor and current franchise owners.  I’ve chosen a child care franchise because these are some of the most popular enterprises in franchising today.  Below are some of the FAQ for buying a child day care franchise.

Whether you are considering a pet care franchise, a hair salon franchise or a location in a fast-food chain, the most important thing you can do before choosing a franchise is research.  This doesn’t mean just looking at the franchisor’s web site.  It means coming up with a list of questions you would like to ask the franchisor and current franchise owners.  I’ve chosen a child care franchise because these are some of the most popular enterprises in franchising today.  Below are some of the FAQ for buying a child day care franchise.

Starting with the franchisor, Entrepreneur magazine has put together a few key questions that were recommended by the CEO of FranChoice, Jeff Elgin.  They are:

• What is your #1 focus?  Here you will want to hear them say “the success of our franchises.”  If they say something about their bottom line, you may want to look elsewhere.
• Next, ask them why franchisees get into trouble, or don’t succeed.  Here you will want to learn exactly why a franchisee would have problems, or what is most difficult about following their “system.”
• Finally, find out how they resolve conflicts, and ask for examples of recent conflicts that have occurred between them and one of their franchise owners. Be skeptical if they say there have been no disputes.

An FAQ for buying a child day care franchise might also include a request for details on recent disputes between one of their franchise owners and a client.  Plus, you should ask about specific franchise owners who have closed or had trouble, and why.  But when it comes to a day care franchise, the most important thing to learn about is their reputation among competitors. 

Speaking directly with some of their current franchise owners is another way to uncover potential difficulties, but be sure you are able to hand-pick the franchise owners yourself.  This way you will speak with more than just the most satisfied franchisees in the chain.

Once you have assembled a list of FAQ for buying a child day care franchise, you are ready to start searching for business opportunities online.  Sites like EFranchiseSale.com can direct you to child day care locations available in your area. 

Ask anyone with small children what the best franchise is for working moms, and they will tell you about dozens of great children’s franchise opportunities to consider.  For young mothers, there is nothing more satisfying than a business that focuses on children and offers a flexible schedule.  While not every kids-oriented business is a winner for busy moms, there are some specific niche areas that are ideal.

One of the nicest things about buying a franchise is the ability to choose a business model that aligns well with your lifestyle.  If you like cars, for example, then there are several auto aftermarket franchises to choose from; and if you love children, there are a number of successful daycare franchises available.  But if you are health-conscious and enjoy working with people, then you can become the proud owner of a fitness or weight loss business.  Selecting a weight loss franchise is easy with so many online resources that provide background information about industry leaders. 

With the New Year approaching, you can expect to see a lot of promotional ads for fitness facilities, gyms, and stores that sell exercise machines.  As always, the majority of people will focus their New Year’s resolutions on physical fitness and weight loss goals, hoping that this is the year they will “make it happen.” Many will join a gym or purchase home exercise equipment. For entrepreneurs whose first love is fitness, a fitness franchise may be the best New Year’s resolution, but like any other business model, you will need to look at every consideration when buying a fitness franchise.

Are you a budding entrepreneur who is looking for a lucrative franchise?  While many people think of fast-food restaurants as the ideal first franchise, others have found a more satisfying lifestyle by owning an auto or car franchise.  The auto industry may have taken a hit because of the recession, but in many ways that has helped auto and car franchises do better; especially when that franchise covers the auto aftermarket.  If you love cars and want to make your living doing something you enjoy, an auto or car franchise may be right for you.

When you look at the number of food franchises for sale, choosing just one of these can be a daunting task. Do you go with the tried and true fast food franchises, such as McDonald’s or Dunkin Donuts, or do you go for one that is new and exciting, something that is bound to become a hot spot in your area? 

No matter where you live, you may have noticed that many of your favorite franchise establishments have closed down over the past few years.  Unfortunately, the recession just hasn’t been kind to many franchise businesses, especially in the regions that were hardest hit by the economic downturn.  That said, however, most existing franchises for sale are relatively healthy businesses.  It really depends on the type of business you want to buy. 

In our current economic climate, women with small children are beginning to rethink the idea of working in a traditional 9 to 5 job.  Not only is the price of daycare astronomical, there is very little flexibility for moms in the workplace.  That may explain why so many moms are considering children’s clothing franchises instead.

If you are a woman with children who is looking for a franchise that is easy to start and doesn’t require a lot of specialized experience, then children’s clothing franchises may be for you.  One of the best ways to get started in kids clothing businesses is to start a children’s resale store.  Moms are always looking for a bargain, and kids grow out of clothing so quickly that it makes a lot of sense to shop at a resale store.

When it comes to child day care franchises, it can be difficult to know which ones are best for the budding entrepreneur.  If this is the type of business you want to start, you will need to do your research and learn as much as possible about the available childcare franchises in your area.

No decision is more emotional for parents of small children than the choice of a day care facility.  For this reason, it is extremely important that the franchise be a part of a reputable company with excellent references from parents. Even if you are favorably impressed with a franchisor, just one small blemish on their record can be enough to prevent a new franchise from being successful.  In short, child day care franchises must have a squeaky clean reputation throughout the entire area they serve. 

If you have ever thought about starting a franchise that will survive even the toughest economic times, then you may want to consider printing franchises.  Printing press franchises have been around for a long time, and have evolved quite a bit over the past 10-15 years. 

Before everyone had a home computer, printing franchises were used to create ads, print out important documents, and create flyers, invitations and direct mail pieces.  They are still used for some of these purposes today, but the computer has changed the way people consume printed material.  As a result, document franchises have begun to focus more on duplicating PowerPoint presentations, printing business cards, and creating signage for small businesses. 

As more and more professionals make the transition from a corporate office to a home office, the need for mail, packaging and shipping franchises has grown considerably.  High unemployment has also fueled the number of newly minted entrepreneurs, who are working in consulting, marketing, direct sales and other home-based professions.

Mail franchises can be as simple as setting up a packaging center where customers can ship out via UPS or other overnight carriers, or it can be a full service business center with a notary, passport photos and internet café.  What is most important when starting mail, packaging or shipping franchises is to work with a franchisor that you can trust. 

Franchisors like PostNet, Unishippers or Postal Annex specialize in shipping franchises, but there are other companies that specialize in neighborhood business centers and copying franchises. 

Many of these packaging franchises have been marketing to home-based professionals for years, but others are just getting into it now.  If you are seeking a mail, packaging or shipping franchise, then it pays to look for a company that is forward thinking and “ahead of the curve”. 

The “neighborhood business center” industry is expected to become much more competitive as existing franchisees look to meet the changing needs of consumers and small business owners.  For a complete listing of mail, packaging and shipping franchises in your area, check a Franchises for Sale directory. 

When the time comes to move on and do something different, many successful business owners are scared of selling franchises.  They may be afraid of having their business sit on the market too long, or being unable to sell it at a fair price, but there are ways of marketing franchises that will draw in the most qualified buyers. 

If you’ve ever really thought about starting a business of your own, then you may have considered doing something that is an absolute necessity.  This could include a gas station, convenience store, tax service, hair salon, and many other “essentials oriented” businesses.  An auto repair franchise falls into the category of “absolute necessity” as well.

After fixing cars for a few decades, many expert mechanics realize they would rather own and run a business than spend the rest of their working lives under the hood of a car.  Owning an auto repair franchise is one way of doing this, and is usually far more successful than opening an independent repair shop.  In fact,  an auto repair franchise can be much more lucrative than “turning a wrench” at a local auto dealer or repair shop. 

Being in the restaurant business is never an easy road; just ask anyone who’s ever done it.  For some people it has an addictive quality, and they cannot get enough of the fast pace, but this type of franchise is not for everyone. 

If you have always enjoyed working with the public and being the person “in charge” behind the counter, then maybe a franchise in food service is right for you.  To be successful with this type of franchise, you will need great communication skills, high energy, and a passion for owning your own business. 

Why is a franchise in food service such a great idea right now?

Are you shopping for the perfect franchise?  Have you already done your research in a franchise opportunities guide?  Then chances are you are more confused now than you were before you started searching.  That’s because it isn’t until you start searching for a franchise that you realize how many different franchise systems exist.  So how do you narrow the playing field of potential franchises? 

One way to learn more about franchising is to attend a franchise exposition, where you can view and compare a variety of possible businesses.  However, you may not get the attention you deserve in a setting like this.  Most of the exhibitors at this type of expo are looking to make a sale, so they may not give you the most balanced advice.

If you are looking to start a new business, franchises offer the excitement of a start-up without all of the uncertainty.  Because a good franchise system has already been successful in other areas of the country, your risk as an investor is minimal.  However, with such a wide range of business models to choose from, it makes sense to start your research by consulting a comprehensive directory of franchises.

A franchising directory will allow you to search by price range, industry, and geographic area.  By asking yourself some important questions up front, it is easy to use the franchise directory as a way to narrow the playing field of potential businesses. 

Investing in a franchise business is a lot less risky than staring a business from scratch; especially when you are considering one of the top food franchises.  Even though thousands of food franchises are started every year, few of them even come close to the success that has been realized by the top 10 food franchises.  According to recent research, here is a top ten list of food franchises in the U.S.:

1. Subway
2. Jimmy John's Gourmet Sandwich Shops
3. Jack in the Box
4. Smoothie King
5. McDonald's
6. Buffalo Wild Wings Grill and Bar
7. Hardees
8. Denny's
9. Pizza Hut
10. Dunkin' Donuts

Depending on where you live, you probably have about five of these franchises within a short drive of your home.  But what makes these top food franchises so successful, while other ones continue to struggle.  Each of these businesses has its own unique story to tell, but one thing that seems consistent among all of them is their ability to change along with their customers.  Food franchises must continuously adapt in order to remain successful. 

For a chain like Dunkin Donuts to compete with recent rivals like Starbucks and McDonald’s, they had to completely reevaluate their coffee business, which accounts for over 60 percent of its business.  As a result of their efforts to increase brand loyalty in this area, Brandweek magazine awarded the chain its coveted “Marketer of the Year” for three years in a row. One of the nation’s top food franchises, Massachusetts-based Dunkin Donuts has more than 7,000 shops across 30 countries, 4,400 of which are located in North America. 

Subway is another franchise that has adapted to market trends by expanding its product offerings.  By offering alternatives to the unhealthy fare served in most of the top food franchises, Subway’s popularity soared.  This popular purveyor of subs, flatbread sandwiches and salads is now the second-largest quick service food franchise behind McDonald’s.  With more U.S. locations than McDonald’s, Subway now operates 32,000 locations in 90 countries, every one of which is franchised.

While many other restaurants have come and gone, these top 10 food franchises have survived because they focused on what their customers wanted.  Interested in starting a business that has an excellent chance at success?  Before you look at lesser-known business models, why not check out one of these top food franchises?

Buying a franchise restaurant is one of the most common ways for would-be entrepreneurs to enter the world of business ownership.  With traditional restaurant ownership being one of the riskier ways to start a business, with restaurant franchises just the opposite is true. They may be more expensive than many other types of franchise businesses, but that is only because the return-on-investment kicks in right away and the process of buying one is not extremely difficult.

Here are some simple steps to put you on the road to buying a franchise restaurant.

Step One:

Before you buy a franchise restaurant, you will need an accountant, an attorney and money to invest in the business.  Once you decide on the type of restaurant franchise you want, you will find there are several online resources and franchise FSBO directories that will help you find the right franchise for your budget and geographic area. 

Step Two:

Request a franchise application and spend time reviewing the franchise documents with your attorney.  Your accountant can help you better understand the franchisor’s financial statements.  Now is the time to ask questions about company training and marketing support.

Step Three:

Interview some current franchisees and ask them about the day-to-day activities of the business, if they are as profitable as they expected to be, and if there were any unexpected problems in dealing with the franchisor.

Step Four:

Evaluate the target market for your proposed franchise restaurant, and consider how many similar or competing restaurants are located in the area.  Ask yourself if any recent changes have occurred in the community where you want to open the restaurant, or if anything would cause a decrease in potential customers.

Step Five:

Check with your franchisor about financing options.  You will need to know how much working capital you will need to operate the business as well as specifics about start up costs.  Many franchisors will make buying a franchise restaurant very attractive with seller financing. 

Okay, so you have made the decision to start franchising your business.  The first thing you might want to do is hire a franchise consultant.  Franchise consultants can often be found on a Franchises FSBO Directory or you can ask your franchisor where to find a good one.  Why is so important to hire a good franchise consultant?   Franchises consultants play a very important role in your ultimate franchise plan, which can make or break the success of your franchise roll-out.

What should I expect from a franchise consultant?

Before you even start writing a franchise plan, your consultant should have advised you on how “franchisable” your business really is, and given you an idea of what costs are involved in franchising.  Since your initial consultation is really more of an interview, you should not be charged for your first meeting and business analysis.

An experienced franchise consultant should be able to provide you with a number of different services, including the development of a strategic plan, marketing strategies and quality control tools.  In addition, your consultant will be help you with key decisions early on, and with the ongoing adjustments to your strategic plan.

What will my strategic plan look like?

Keep in mind that every business has a different set of needs for expansion, and every consultant tackles these needs in a different way, but for the most part you should expect to get the following information from your franchise consultant. 

• Competitive analysis
• Industry best practices
• Structural and/or staffing recommendations
• Sophisticated financial analysis
• Royalty structure

Quality control tools, including operations manuals, training videos and site selection guides are all a part of the early planning as well, but will probably not be complete until after the initial structure is laid out and approved. 

Once you have completed all of the research and made key decisions about the franchise system, it is time to start selling franchises.  Ask your consultant about using listing your franchises for sale on an FSBO directory.  Franchises often sell much faster on sites like this, and it eliminates the middle man so you deal directly with potential buyers.