How Business Franchising Works

Business franchising, in various forms, has been around for decades, and it proves an eternally popular business vehicle for start-ups and for those looking to break out of the 9-to-5 rut. It hosts its own range of advantages and disadvantages, of which it is important to take notice before committing to purchase. Likewise for the franchisor, the business model has notable advantages that many businesses might at some time like to consider, as a more effective way of growing the business over a short period of time.

Business franchising is a less risky way to start a business. If you're considering giving up your job to work for yourself, you might like to consider business franchising options that may be available. Business franchising allows you to run a branch of someone else's business, providing you with a blueprint business plan that's been tried, tested and is successful in other areas. It also gives you an opportunity to benefit from the experience and industry knowledge of the franchisor, which you would otherwise have to gain from your own experiences in business or in the employment arena.

An additional advantage to business franchising is that a number of high street banks support most major franchising opportunities, and are more willing to lend money to cover the franchise fee and start-up costs than they would be with other businesses and enterprises. That means you will be more likely to obtain funding for all your initial costs if you elect to run a business franchise rather than opting to go it alone straight from the off.

For the franchisor, business franchising can be a profitable and useful model to adopt. Firstly, it can raise substantial capital in the form of franchise fees, which can often run into the tens of thousands. This can be used to finance the development of the franchise opportunity, and can also make the promoter of the franchise particularly wealthy. Additionally, many business franchising opportunities also require a proportion of revenues to be paid from each franchisee in royalties, providing an on-going income to the business.

On the business side of things, business franchising allows a business to achieve rapid but controlled growth, which would be simply impossible were it to be effected organically. While it does mean giving up some control of the way the business is run, particularly at an individual franchise level, it nevertheless allows the business to grow geographically and in terms of revenues over a very short period of time. With the right franchisees, business franchising can prove lucrative as well as being an excellent way to prompt and maintain growth.

Considering the advantages of business franchising, it would appear to be a particularly useful model for all parties concerned. While that is the case, it's also important to bear in mind the disadvantages, such as the lack of absolute freedom on both sides of the fence and the risk that either side to the deal might turnout to be wrong for the relationship. Nevertheless business franchising will continue to prove a popular way of doing business.

Naz Daud is the founder of CityLocal. This Business Franchise Opportunity is for people who would like to work from home and be their own boss.

Business Franchises and UK Business Directory

Business Franchise Opportunity

Copyright information: This article is free for reproduction but must be reproduced in its entirety, including live links & this copyright statement must be included.

Article Source: http://EzineArticles.com/?expert=Nazir_Daud

How To Find A Franchise Opportunity

As a franchise sales consultant I am often asked what is the best way to start the initial process of researching and finding the right franchise business to buy. Most of these individuals are still in the initial stages of thinking about buying a franchise, and don't necessarily have a strong opinion either way about what type of opportunity they are looking for. My answer is that there are more resources available in today's market then at anytime to find and research franchise opportunities. Below is a list of some of the most popular methods prospective franchise buyers can use to help narrow the search process and find the franchise business that's right for them.

Internet Directories:

The fastest and most convenient way to begin the process of finding a franchise is via the Internet. There are now dozens of franchise opportunities directories online today that offer comprehensive listings of franchise for sale, including information about investment levels, training, availability, and how to contact the franchise company for more details. These directories are also a good source for free information about the general process of buying a franchise business. You may want to visit A few different directories such as franchiseopportunites.com, franchisegator.com, and azfranchises.com because not all of then will carry the same franchise listings.

Franchise Industry Publications:

Trade publications are another good source for general information about franchises available and franchising industry news. There are magazines available such as Franchise Times and Entrepreneur, as well as multiple online venues such as franchise-chat.com and franchisenewscenter.com that provide a wealth of free information about finding and buying a franchise.

Trade Shows & Conventions:

There are numerous franchise opportunity trade shows and conventions held through out the year and around the world. These venues offer the chance for individuals to discover and research new opportunities, as well as the unique opportunity to meet actual representatives of franchise companies they may have an interest in. Some of the more popular shows include the National Franchise & Business Opportunities Show, and International Franchise Expo.

Franchise Consultants & Brokers:

Franchise Consultants and brokers work with as little as a few to dozens of different franchise concepts in their database that they generally have in depth knowledge about. Considering the thousands of different franchise opportunities that buyers can choose from these days, they can be effective in helping a prospective buyer narrow their search by first qualifying them, and then showing them opportunities that could be a potential good match. Since the majority of these consultants are paid a referral fee or success fee by the franchisors if one of buyers they introduce moves forward, the buyer generally has no direct expense associated in engaging a franchise consultant to help them.

Some of the potential negatives to working with a franchise consultant can include that some only represent a few or a limited menu of franchise concepts which can potentially limit the prospective buyer's exposure to seeing all the opportunities available in the market. And like some sales people who work on commission, the motivations of the consultant may some times not be entirely consistent with the prospective buyer's best interest or goals. But I would say overall, that the franchise consultant industry has a very good reputation for treating their clients fairly and professionally.

Small Business Brokers:

Many professional business brokers are also franchise consultants, and they also can be an excellent source to find existing or established franchise business for sale in your local area if you decide to go that route. Business brokers generally also have good working knowledge of how franchising works, and can often be very helpful to a prospective buyer because of their inside knowledge of the local small business market. You can find a local Business Brokers in your are by visiting a broker directory on line.

Hit The Streets:

Another good and obvious way to find a research a potential franchise opportunity is to scope out and visit existing franchise businesses in your local area. There is no better validation that a franchise opportunity concept works than seeing a busy store or restaurant full of customers. And if they are available and have the time, you may also want to ask the owner about how business is going, are they happy with the franchisor, and would they recommend this opportunity.

Ray Haiber is the founder of http://www.redstoneadvertising.com He has 10 years experience as franchise sales consultant as well as a professional small business broker in Arizona with info at http://azbop.com Visit http://www.azfranchises.com to view and research franchise opportunities for sale through out the USA.

Article Source: http://EzineArticles.com/?expert=Ray_Haiber

Franchise Consultants - Bringing Franchising Opportunities To You

Purchasing and running a franchise business can be an excellent option for many people with an entrepreneurial spirit. These types of businesses provide a way to actually go into business for yourself, but not by yourself. They take much of the guess work out of operating a company. Still, there are many questions to be answered when considering whether or not purchasing one of these ventures is right for you. This is where seeking the aid of a franchise consultant can help.

What is a franchise consultant?

Basically, franchise consultants help negotiate deals between franchisors and potential buyers. These advisors provide benefits to both the parent companies, as well as to prospective buyers. For the potential buyer, the consultant can help refer you to opportunities specifically geared toward your own personal interests and desires. For the franchisor, the consultant can help by referring both appropriate and qualified prospects.

Creating Your Profile

One of the first things a franchise consultant will do is to assemble a detailed profile for any and all prospective businesses. This profile is compiled in order to match the franchisee with the most suitable business opportunities and will consist of the client's experience, interests, goals, financial situation, qualifications, and any other information that will enable the advisor to find the most suitable opportunities for that particular buyer. Candidates are questioned at length to determine what type of businesses they are interested in and to determine what types of businesses best fit their profile.

What are the advantages to using a consultant?

A qualified and trusted franchise consultant can be your greatest resource when deciding to delve into this branch of the business world. These expert counselors provide expertise and guidance throughout the entire process. They can help you decide whether or not you yourself should consider purchasing a franchise, and, should you decide to purchase one, how to go about doing it. An experienced specialist will help you understand the pros and cons of owning your own business, and can recommend opportunities based on your own personal lifestyle and business goals.

In addition, franchise consultants can provide you with education pertaining to the various types of ownership, investment options, costs, fees, financing options, training, etc. Another advantage to using a business mentor is the fact that an experienced guide will initiate communication with franchisor company representatives, allowing you to get your foot in the door. From this point, your advisor will provide you with ongoing support throughout the entire transaction and will answer any questions you may have.

Mr. Oliver is a marketing agent of FranNet. The franchising company provides the assistance of franchise buying experts throughout the nation. For more information on their Franchise Consultants please visit their website.

Article Source: http://EzineArticles.com/?expert=Budda_Oliver