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- Checklist of Information to Secure from a Franchisor
It's really sad.:(
Friend, I do not know how to help you (and maybe many like you who might be undergoing the same plight as yours) ........
I've tried in my own way to do some research so as to make many like you careful before investing money in such frivolous business ventures, without the right knowledge.
Checklist of Information to Secure from a Franchisor
Use this checklist when doing your own investigation and information gathering.
Is the franchisor a one-person company?
Is the franchisor a corporation with an experienced management that is well trained?
Does the franchisor operate a business of the type being franchised?
Is the franchisor involved in other business activities?
Is the franchisor offering you an exclusive territory for the length of the franchise?
Can the franchisor sell a second or third franchise in your market area?
Will the franchisor sublet space to you?
Will s/he assist you in finding a location for franchise operation?
Does the franchisor provide financing? If so, what are the terms?
Does the franchisor require any fees-other than those described in the offering circular-from the franchisee? If so, what are they?
Has the franchisor given you information regarding actual, average or forecasted sales?
Has the franchisor given you information regarding actual, average or forecasted profits?
Has the franchisor given you information regarding actual, average or forecasted earnings?
In the event you sell your franchise back to your franchisor under the right of first refusal, will you be compensated for the goodwill you have built into the business?
Does the franchisor have any federally registered trademarks, service marks, trade names, logotypes and/or symbols?
Are you, as a franchisee, entitled to use them without reservation?
Has the franchisor investigated you carefully enough to assure himself/herself that you can successfully operate the franchise at a profit both to him/her and to you?
Does the franchisor have a reputation for honesty and fair dealing among the local firms holding his/her franchises?Other important Questions
What is a description of the franchise area offered you?
What is the total investment the franchisor requires from the franchisee?
Will your franchisor provide you any training?
What is the extent of the training the franchisor will provide for you?
What are the terms of your agreement regarding termination, modification and renewal conditions of the franchise agreement?
Under what circumstances can you terminate the franchise agreement?
If you decide to cancel the franchise agreement, what will it cost you?
What are the background experience and achievement records of key personnel (their "track records")?
How successful is the franchise operation? (Use reports or magazine articles to supplement information the franchisor gives you.)
What is the franchisor's experience in relation to past litigation or prior bankruptcies?
What is the quality of the financial statements the franchisor provides you? And most importantly, exactly what can the franchisor do for you that you cannot do for yourself?
G:) :)D LUCK !!!CommentQuote0Flag
- Dear friend,
I guess, you didn’t do your home work well enough? Well, don’t loose heart. Here is what you need to keep in mind when you are ready to take the plunge into something else. – Another franchise that works for you.
How to find the right fit – Buying a franchise that works for you.
If you have taken a major leap of confidence and decided to test the waters, how do you know if this is the right franchise for you?
There are a number of elements in making the major decision. Each of these elements is vital and, if you are honest with yourself and realistic with you expectations, you are likely to succeed.
PART 1: YOU
1) Your personality and skills are vital to the success of your business endeavor. Your strengths and weaknesses can help you to succeed or assist you to fail.
2) Discuss the opportunity with your family members, and close friends. Getting external help can help you better clarify and quantify your strengths and weaknesses.
3) Are you inspired enough? You need to work hard in the business, not matter what it is. You have to wakeup every morning inspired by what you are doing. You have to be positive with all your staff and inspire them.
4) Don’t make the mistake that you will hire someone to do things you hate.
5) Try not to change your personality to suit your business. It is easy to get into a business without stopping to see if this business really suits you. This part is the key to the long term viability of your business.
Part 2: Realistic Expectations
1) When most people decide to run their own business, one of the major driving thoughts is that this will lead to being rich. The reality is you cannot expect a business that costs you $ 20,000 to generate $ 200,000. That is why it is very important to understand what type of return you need to make to sustain your current lifecycle.
2) Breakdown your current spending and be realistic about what you need now and what you will need in the near future.
Part 3: Do you own Business Plan
1) How long will you have to wait until the business starts being profitable and do you have enough cash flow to sustain you over the initial period of growth?
2) Wages – Yours and your staffs. Get advice from other franchisees and accountants on this.
3) Royalties that you have to pay.
4) Self-Promotion – Even though most brands have a marketing levy, that normally is for general brand awareness. How much will you have to do yourself in your local area, both at launch and ongoing. Very rarely you can rely on the marketing levy to give you all the exposure that you need.
6) Self –Training – Does your franchisor provide you with ongoing training or should you get a business coach?
7) Then you have to look at the business plan and your financial position.
One thing though about buying a franchise business – the more you put in the more you will get out. A lot of business models will give you an opportunity to create an excellent income but they are not guaranteed.
The success of any business is always subject to the franchise. If your work hard and follow the directions given you have a very high chance of success and positive financial outcomes.CommentQuote0Flag
Indeed a very familiar discussion that I read through.
As an independent consultant, I have in the recent past thoroughly analyzed the business model, the revenue model and prospecting model of Jaaydaad. I have also interacted on the phone with some of their executives.
My first impression -- ' NOBODY HAD A CLUE ABOUT WHAT THEY ARE / WERE PROPOSING". All they were able to repeat was they are the leaders..... My question was how could you be the leader if you just started yesterday.
Vey unimpressive presentation by them. I did not fall for it.. on the contrary, I advised many of my friends to see through the whole thing.
It is sad that you fell for it.CommentQuote0Flag
- It was very bad but thanks for informing us. I will ensure, none of colleagues of friends falls for it.CommentQuote0Flag