FRANCHISE | BetterNetworker.com

In a franchise, individuals or groups are granted rights to market a company's goods or services in a specific geographical location or territory. One franchisee may manage several such locations. To be blatant, a franchise is simply a temporary investment in a business which involves renting or leasing an opportunity. The franchisee doesn?t own the business. Franchising can be viewed as ?a wasting asset? because of the predetermined term of the license. McDonald's, Dollar Tree, Domino's Pizza, Subway, and the UPS Store are just some examples of popular franchises.

Not Only Fast Foods-As you can see fast foods businesses are not the only franchise businesses. Franchise businesses include health and wellness, financial services, automotive and even pet stores. There are also large franchises like hotels, spas, hospitals, etc. It is reported that there are over 120 different types of franchise businesses available today.

How Franchising Works-According to the literature, there are two types of payments made to a franchisor: (1) a royalty for the trademark and (2) reimbursement for the training and advisory services given to the franchisee. These two fees may be combined in a single fee. Additional there is a "disclosure" fee which is separate and is always paid up front. The franchisee has to be careful to negotiate the license with the franchisor and the development of a business plan is necessary. A franchise attorney needs to get involved in helping the franchisee in negotiating and in protecting the franchisee:

Fees must be disclosed up front with no hidden fees surprises; Start-up costs and working capital must be known before the license is granted; Assurance that additional licensees will not crowd the "territory" if the franchise is worked according to plan; Franchisee must be seen as an independent merchant; Franchisee must be protected by the franchisor from any trademark infringement by third parties.

Training period -Costs are to an extent covered by the initial fee. In some cases training period might be too short depending on the type of business. In these scenarios the franchisee has to pick up the tab for additional training. In low-cost franchises, training could prove to be very expensive. Some franchisors have online training available in addition to providing literature and other training resources.

Guarantee or Warranty ? Unfortunately, franchise agreements carry no guarantees or warranties leaving the franchisee with little or no options to legal intervention in the event of a dispute. A franchise contract is non-negotiable and unilateral in favor of the franchisor. The franchisee signs this document knowing that there are risks involved, knowing that there is no guarantee of success.

Contract Renewal- It is important to get the facts before signing on the dotted line. Typically, a franchise lasts for a specific time period with smaller broken down periods. Each broken down period requires a renewal. Agreements typically last from five to thirty years. The consequences to the franchisee for prematurely terminating a contract could be severe. However, it is totally up to the franchisor if he will renew a contract. There are no guarantees in a franchise.

Franchise Cost-Starting a franchise is a very costly venture, usually. A Dollar Tree franchise can range from $44,000-$274,000; McDonald?s franchise is $995,900 ? $1,842,700; Subway?s franchise is $108,000-$300,000; Domino?s pizza franchise is $119,900-$461,700 with 5.5% royalty fee; Wireless Zone asks for $100,000 in liquid capital. Those are some significant figures! Could there be a low cost franchise out there, somewhere?

Low Cost Franchise-Does starting your own franchise for $49.00 sound too good to be true? LIMITED TIME ONLY! Have you heard of Solavei? http://www.youtube.com/watch?v=3AjDb3dGApY&feature=player_embedded

Solavei is a new 4G network that offers one of the lowest cost packages for voice, data and texts ($49/month). Free after your 3rd trio. It?s a great new opportunity to make money while networking with friends and associates. AND, NO CONTRACT, NO ROYALTIES, NO LEGAL HASSLES, NO COMPLICATED TRAINING, NO BUILDING NECESSARY, NO OVERHEADS, NO LICENSE REQUIREMENTS. GET PAID BY FRANCHISOR INSTEAD OF YOU PAYING THE FRANCHISOR.

It?s time to break free from the traditional franchise model. Be your own boss without the stress. Success guaranteed if worked according to recommendations. Do it today! http://www.solavei.com/helenmurdock

Source: http://www.betternetworker.com/blogs/view/grace4now/franchise

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