Often franchise buyers become interested in a certain type of business and brand in the franchising sector. They've always considered owning a business of their own, but never really had the experience to quit corporate life and go for it. Franchising seems to be the answer, and they when they see a concept or brand name which they are drawn to they start to do a little more research. What they typically end up finding is that there are several competing companies for that exact same niche.

Some of these companies are nothing more than "copy companies" and some of them may be the original, but the company that caught their eye with the strongest national brand name is actually an imitator which has done better in the market place. Either way they look through the catalog of all the potential franchises to buy and they know some are cheaper than the others. That is to say their franchise fee and royalty structure is less.

However, often, you get what you pay for with regards to royalty fees, and many competing companies try to match their competitor's franchise fees, as they vie for the same franchise buyers. You must be very careful however when choosing a franchise to buy amongst the many choices. After all, if you choose a West Coast franchisor and you live on the East Coast where there are no stores, the brand name may not be recognized, and therefore, you have to do all the work to build up in your area.

If this happens, you are not gaining any benefit or value as a franchise brand name, rather it is your job to build up the franchise name in your trading area. So, it might make sense to buy the more expensive franchise which has a stronger brand name where you are. This is a serious consideration, and more franchise buyers need to be thinking here. Please consider it.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes in franchising.

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

If you are considering on buying a franchised outlet as a business of your own then perhaps one of the questions you might have is regarding the franchise territory that comes with your franchise. Often, franchisors will make a "bullet point" in their brochures about "Exclusive Franchise Territory" as if this is some kind of a bonus that you get for giving them the $20,000 franchise fee.

In the Franchise Disclosure Documents or FDDs it will often say "in your protected franchise territory," or something to that effect, along with a stipulation or in consideration of the granted franchise for "X" amount of dollars. Now then, you are probably wondering what this means. In fact, as a retired franchisor, I often give speeches and seminars in the breakaway sessions on Franchising. And it is amazing how often these questions about territory come up.

The reality is that some exclusive territories end at the door of your franchised outlets. You may think that is pretty harsh, but there is a good reason for it. Let's say that you sell a certain brand name within your location. But eventually the franchisor starts selling products with the same brand name in the grocery stores. If they gave you a 10 mile radius as an exclusive territory, they would be violating their franchise agreement with you for selling those products in all the grocery stores.

Worse, you might be in a shopping center with a grocery store that sells the same products, or rather the same brand name next door. Sometimes this can hurt your sales, and cannibalizing, is all too common in modern day franchising, and there is a lot of litigation there. Nevertheless, the reality of how protected your franchise territory really as depends on what you consider protected.

After all, any independent business can set up a business that competes with you across the street. No franchisor can protect you from that, and if they tried they would be in violation of antitrust laws and predatory competition. And it wouldn't be the first. The reality is that your protected franchise territory may look like a nice bullet point on the franchisor's brochure, but you really need to stop and consider that it may not be as protected as you'd be led to believe. Please consider all this.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes in franchising.

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

When planning new ventures, you need to decide whether this new business should be a franchise or not. Well, major entrepreneurs have analysed the franchise opportunity and have recognised the following excellent characteristics of any franchise opportunity:

1.Firstly, with a franchise, a lot of the headaches have been worked out for you. This includes the menu, kitchen, equipment, the approach, employee attire, design and layout as well as how the franchise business is run. All you have to do is run the franchise and make sure things run smoothly in order for it to succeed. According to the International Franchise Association (IFA), one of the biggest draws for entrepreneurs is that all the details are taken care of by the franchise.

2. You receive a recognized brand and the marketing muscle behind that. Therefore, you don’t need to still get your brand known amongst people and get the word out there. It’s all done already for you.

3. You receive a support system. So, when things are going wrong and you can’t figure out why, there is always a field manager, helpline or some other form of support system to provide you with assistance whenever you require it.

4.According to experts, another major draw to franchising is that franchisees have access to group experience and resources. Other franchisees are always willing to provide help and advice.

5. Franchisors continue perfecting the franchise system and business while you continue to run your franchise. Franchisees do not have the time to think about how to make the franchise business better. The franchisors do all that.

All these advantages give a franchisee a better chance for success in the market and business world.

However, franchising is not for everyone and all potential franchisees should weigh up the pros and cons of franchising in order to make the best decision.

Source: brandEXPANSION Hot Press
Written on October 19th, 2009 by Joseph in Franchise Industry