Deciding On How To Finance A Franchise Canadian Franchising Business Loan Info On Financing And L

Not only do you want to have a solid plan when you want to finance a franchise in Canada – it sure helps when that plan makes sense for the business financing loan / loans that you need!

We think that most Canadian entrepreneurs who are either first time franchisees or perhaps are adding another location to their business would agree that its not as important as to where the franchise lending and business funding comes from, but that you get the full funding at terms that make sense for you personally .

Let’s examine some of those key decision points and requirements that you need to fulfill a proper franchise financing solution in Canada.

We think that a lot of franchisees are sometimes overly focused on ‘ the interest rate ‘ when they are seeking a franchise loan. That’s human nature we guess, but the reality is that the loan is simply commensurate with your overall credit quality and in line with the types of financing that are out their in the Canadian business financing market – unfortunately that market for new franchisees is somewhat more limited that in the U.S.

In Canada franchises are financed really in only 3 or 4 different manners — actually 5 we could say if you considered financing the whole franchise yourself through personal savings.

While that might seem a good idea we think in many cases it is not for a variety of reasons – i.e. collapsing personal investments and savings and assets when you don’t have to cant be an overall great strategy. We spoke awhile back to a franchisee who had pledged and used all his personal assets to acquire a franchise – business was slow, and he was unable to secure additional outside financing to re- boot the business because all his personal assets were pledged/gone. Bottom line, not recommended!

So the question then becomes as to how you decide to finance a franchise once you have made that acquisition decision. We’d like to share a couple key points. First of all, whether it’s a franchise or any business whatsoever, it’s financed by two guys, debt, and equity; i.e. what you borrow and what you put in yourself. Spend some time determining the optimal mix and you will best be able to gravitate to the right financing strategy.

In Canada these days we see franchisees putting in anywhere from 10 -50% as their personal investment into the business. Whats the perfect number? The reality is there isn’t one, because each business requires a different amount of financing and has a different mix of assets and financing needs. The key assets and financing needs in franchising are all your initial soft costs, such as the franchise fee, and then comes your costs to open the door, often called the ‘ turnkey ‘. That turnkey component consists of equipment, leaseholds and opening working capital.

We spoke of 4 methods of franchise financing in Canada .Those are as follows : Specialized commercial finance firms that have dedicated franchise finance divisions , Equipment financing, Working Capital term loans as a supplement to your overall financing, and finally the BIL/CSBF loan . The latter is the government SBL loan that is used by hundreds, probably thousands of franchisees to acquire their franchise. It only has one or two limitations, one of which is that it caps out at 350k, but that certainly covers a lot of franchises in Canada in different industry segments – examples restaurants, service businesses, etc.

So, today’s bottom line? Simply that spending some quality time early on in the process in understand which of the 4 options makes sense for you is a valuable investment. That time, coupled with your business plan and financial projections will help you ensure that you have the right mix of financing solution, as well as a properly chosen business loan strategy for your franchise.

Speak to a trusted, credible and experienced Canadian business financing advisor on how to best decide which financing mechanism works for you.

What Are Popular Sports Franchises To Consider For Franchising

Are you wondering how sports franchises are started? There is a wealth of information about franchising on the internet and finding a franchise opportunity is easier than you think. The most important thing is to find a suitable niche that appeals to you and that you follow the franchise agreement and manuals you receive. Sometimes you can begin a sports franchise for as little as $5,000.

Sports franchises come with many exciting bonuses. First of all, the customer base for this type of franchise is usually established and fiercely loyal. The brand name is already associated with quality and performance so you need to do very little work, and a sports franchise requires very little startup cash and investment. Additionally, the franchising business in general is low-risk with only 5% resulting in failure (compared to more than 50% for small businesses). Each franchise can be examined to see which suits you best.

When most people think of a sports business franchise, they think of basketball, baseball, football and hockey logo jerseys, jackets and hats. However, there are also sports-themed businesses to consider. For instance, Snap Fitness is one of the top-producing fitness franchises because their gyms are open 24/7, their employees are knowledgeable and they use the best security surveillance systems to ensure safety. Sports retail franchise, Nevada Bob’s Golf, offers specialty golf products. Future Stars Sports Photography is a training center for sports photography offering great products and customer service.

There will always be a place in America for sports franchises. Locals will always want merchandise and memorabilia for their hometown heroes. Yet in some instances, dream teams or playoff teams entice fans from beyond their borders to buy. According to the Ultimate Standings list, the top ten franchises (in order) are: the Indianapolis Colts, the San Antonio Spurs, the New Orleans Hornets, the Green Bay Packers, the Anaheim Ducks, the Los Angeles Angels, the Detroit Tigers, the Detroit Pistons, the Jacksonville Jaguars and the Arizona Diamondbacks.

A whole world of information about sports franchises eagerly awaits you from Mike Selvon portal. We appreciate your feedback at our franchise opportunities blog.

The importance of Document Management in your Business

At present everyone is running for success. Just few person getting success other are trying and trying. Only those get success who takes right decision in right time. Today’s business depends on applying the right technology and software. Companies are now depending on computer to store their information. For every work they need software because without software computer cant do any work. So, proper software need for business.

Document management software is designed to store and track electronic documents and other media. It provides efficiency to the business. In todays market place competence is the watchword for any business. A DMS helps a business to get better their business efficiency in four ways:-
Reduces the labor who involved to Storing and handling paper documents. This is most stressful work for any business.
For storing the paper documents huge space is necessary. But an EDMS reduces the space involved to it.
Increase the ability to comply with suitable system.
By allowing the employees to collaborate and work remotely, an EDMS decreases the amount of office space. Features of Document Management System:

DMS is well thought-out as the best option to supervise documents because it is a standalone system that performs all the necessary tasks to manage the electronic documents.

Capturing Data

To build an electronic document management system, the challenge is to transform all the paper documents into an electronic format. But to enter data into an EDMS is not a complex task. It can be done by simply scanning images on them. Documents that are already in an electronic format can also be stored in the system.

Retrieval of Documents

After saving a document, it is important to retrieve it when someone needs it. It saves the documents in different folders with different names. When anyone needs a file he can easily find it in the respected folders. So it is easy to find the documents from the bulk of documents with in few seconds. It saves a lot of working hours.

Incorporation between Other Documents

In a large office it is important to transfer data to other persons and offices in different formats. Document management software standardizes access to other applications. By using DMS, it is easy to transfer data between the DMS and other applications such as word-processors and e-mail.

Workflow

Every enterprise has to rout their documents to the persons who work with the documents. But to do the work manually is risky and kills a lot of time. But a DMS application makes the routing of documents automatic. It forwards a document to the appropriate users within a specified time. The system ensures the smart and smooth flow of documents through the enterprise.

Control Multiple Versions of A Document

Document management software is able control multiple versions of a document. With the growth of digital data, now it is possible to keep a data in various formats. So it is important to manage different versions of a data correctly and retrieve it in the requested format for the user.

Work At Home – Turn Your Hobby Into A Home Business

When you want to start your own home based business, it can be hard to decide what sort of business would suit you. If you have never had a business of your own before, how can you tell what you might succeed at? It can be easier if you start by considering your existing skills and interests. Could you turn your hobby into a business? Here are ten popular possibilities.

Cookery

If you can reliably produce delicious cakes and pastries, you could start a baking business with very little initial outlay. You probably already own all the basic tools. If your talent runs to making jams or pickles or bottling fruit, you will find your wares very popular at farmers’ markets and fetes. If you live in the vicinity of offices or factories, a sandwich service offers a simple way to make money. The key to success with this business is being reliable; people will become regular customers if they know you will always be there to provide lunch whatever the weather.

Interior Decorating/Design

If you are good at painting and decorating, you can earn good money with your skills. This might not be practical if you are caring for young children, but if you have a flair for home decorating, perhaps you could offer an interior design service. A variation on this idea is offering a garden design service.

Gardening

If you enjoy gardening, you could raise seeds and cuttings and offer them for sale. Growing small plants does not need much space. If you have plenty of ground space, you could also grow some vegetables for sale. You could also produce seasonal gifts such as spring bulb arrangements for Mothering Sunday and Christmas table centrepieces.

Crafts

If you enjoy craftwork, creating gift baskets for special occasions can be very satisfying. Gift baskets are highly popular and can be made to suit just about any occasion. Candle making is another popular source of home based income. The modern environmentally friendly soy based candles are ideal for manufacturing at home. They don’t have any smelly messy ingredients and it is easy to produce lovely scented candles that can be sold online or at craft fairs, fetes and markets.

Sewing

If you are handy with needle and thread, there are all sorts of possibilities. For example, you could make wedding dresses, offer a garment alteration service, make soft furnishings to order and produce soft toys.

Photography

If you enjoy photography, your hobby can easily be turned into a lucrative home based business. Photographic equipment is no longer horribly expensive and this is a business that does not take up masses of space or create a mess in your home. Wedding photography in particular offers a very satisfying career.

Antiques and Collectibles

If you know something about antiques and collectibles or are interested and prepared to learn, the buying and selling of these items can be a great source of fun and profit. Car boot sales and antiques fairs are good places to find saleable items at reasonable prices and to sell your own finds. You can also sell things through online auctions such as eBay.

Some Tips To Avoid International Business Blunders

When you are determined to pursue economic relations in the global market, there are a lot of seemingly unnoticeable details that need to be looked into. Cultures and traditions of different nations have to be greatly considered in order to avoid any international business blunders. It may not just be embarrassing on your end, worst is that it might be the cause of failure.

The reason behind it is that, there is lack of familiarity with the practices, customs and etiquette. Yes, there is a huge disparity because you come from both corners of the world but an initial step of any effort to discovery will always lead to success. Here are some tips to do away with those international business blunders.

Shake Hands or Bow Down?
In Japan, a slight stoop signifies respect and humility, such is very important to observe when having appointments with the Japanese. However, there are different levels that have its corresponding meaning. Shaking of hands are acceptable in Italy especially when saying bonjour or bidding ciao. In the United States, the males do not get on their feet when a female enters or leaves a room. They do not even kiss a womans hand because it is reserved for royalty. In Thailand, the conventional manner of welcoming a person is by placing both hands together in a prayer position at the chin and bending over in a certain angle. The higher the hands, more elevated regard is shown. Fingertips should not be raised above the eye level. Aside from hello, it means thank you and Im sorry. This is one of the international business blunders that is equivalent to refusing a hand shake in the Western coast.

Gift or Bribe?
Exchanging presents connotes the depth and strength of a commerce relationship with the Japanese. It is usually given at the first meeting. When having to receive something from them, it is also expected to share in return. In Germany, it is rarely done. Small finds are already appreciated but expensive ones are not a generally observed. However, it is not one of the international business blunders as compared to other countries.

Proper Gesture
The infamous OK sign that originated in the United States means good but it has several definitions in other places. In Brazil, it is a symbol for money carrying with it a vulgar connotation while it suggests zero in France. In the English county, one of the international business blunders is to sit with the ankle resting on the knee. Instead, the legs should be crossed with one knee on top of the other. Patting at the shoulder and putting an arm around the new acquaintance is also a no- no. In Thailand, it is offensive when an arm is placed over the back of the chair when a person is sitting. In Ethiopia, holding out the palm and repeatedly closing the hand indicates come here.

Name Calling
Using titles before the first name such as Mister or Madam is highly suggested in France, United Kingdom and Denmark. In Germany, first names are seldom applied. In Thailand, they address each other through first names and reserve the surnames in very formal events. In Belgium, communicating with French- speaking individuals should be as Monsieur or Madame while the Dutch are either Mister or Miss. Having the two mixed up is one of the international business blunders that can be a great insult for them.

Find insightful and useful information about Communications and Business Entity Types at Content-Articles.com.

Franchising Business Commercial Franchise Lawyers

Franchising Business Commercial Franchise Lawyers – We have all heard of the term, and most of us know people involved in it. After all, it now contributes more than 10 billion to the UK economy, across numerous business sectors. But what is it really all about, and how are some businesses so successful at it, whilst for others it brings disaster?
The concept is fairly simple. In a franchise, an established business (the franchisor) grants someone (the franchisee) the right to trade under the franchisors trade mark or trade name.
Most franchising is actually business format franchising. This means that the franchisor develops a business concept, including a trade name and operating methods, and they train the franchisee in how to run their business using this concept. The franchisee operates his/her own business under the franchisors name and under some fairly tight controls and guidance. These are set out in a franchise agreement, and usually an operations manual as well.
At heart, a franchise agreement is essentially a trade mark licence, with a number of operational instructions and controls placed on the franchisee.
In many cases, the franchisee is given an exclusive territory in which to operate during the term of the franchise agreement.
For franchisors, franchising can therefore be an exceptionally quick route to business growth, with low overheads and low risk. We will look at this in more detail later on in this article. For franchisees, franchising can provide an attractive opportunity to own and operate their own business, but one which has a proven business concept and which provides training and support. Franchising can in some cases also provide a very rare opportunity for genuine work/life balance.
Sadly however, as with everything in life, it is not always that simple. Although survival rates for franchisee businesses are much higher than for other business start-ups, franchisees all too often fail. Some lose substantial amounts of money, often through no fault of their own. Below are some of the perils to avoid:
Peril No. 1 – Not doing enough homework before handing over your cash
Most franchisors can talk a good talk. It is their job to convince you that their franchise offering will bring you wealth and success. However, whilst many franchisors are scrupulously honest and professional in their dealings with prospective franchisees, some of them are unfortunately not.
Remember when you take on a franchise this is a business to business agreement. There is no consumer law to protect you, so your legal remedies may be very limited. It is your responsibility to check out what you are being told, and never to take promises and forecasts on face value.
It pays to remember the age-old saying: If it sounds too good to be true, it probably is!
Membership of the British Franchise Association – requiring the signing of a charter for ethical franchising – is a good indicator of an opportunity worthy of consideration, although there is no substitute for properly checking out and researching a franchise.
Peril No. 2 Taking on a franchise which does not play to your personal strengths
You need to think long and hard about whether taking on a franchise will suit your personality and skills. You may imagine, for example, during a frustrating day at the office, that nothing would be lovelier than leaving the rat-race and running your own cafe. But beware of the grass is greener over the fence philosophy. No matter what franchise you take on, it is likely to involve hard work, and this will never be satisfying unless it is something that you are passionate about.

Franchising Vs. Licensing A Business

FRANCHISE VS. LICENSE

What’s the difference between franchising vs. licensing a business? Is a license business model really different from a franchise business model? Whether you’re a franchise attorney or not, the starting point in any analysis is to consider the legal aspects, then the business aspects. This article focuses on the legal aspects. A franchise always includes a license of the brand and operating methods, along with assistance (training, an operations manual, etc.) or support (providing advice, quality control, inspections, etc.). A license that is supposedly “not a franchise” but contains these elements, is a disguised, illegal franchise with significant legal ramifications and risk.

REGULATORY BACKDROP

In considering the legal aspects, begin with the following premise that applies to both options:
If you put someone into business (or allow them to use your business brand/mark) this transaction will normally be a regulated activity, subject to substantial penalties for noncompliance. If it looks like a duck and walks like a duck, it’s a duck. This guiding legal principle (and common sense), coupled with the business aspects of selling a franchise vs. a license (discussed below) will answer most questions.

FRANCHISE & BUSINESS OPPORTUNITY LAWS

Why does regulation exist? Arising from the ashes of documented past abuses, where tens of thousands of individuals lost all of their worth by investing in nonexistent or worthless business endeavors, the government has devised two principal consumer protection mechanisms:

(1) franchise disclosure-registration laws; and
(2) business opportunity laws.

The thrust of these laws is to require sellers to give potential buyers enough pre-sale information so informed investment decisions can be made before money changes hands, contracts are signed and sizable financial commitments are undertaken. It doesn’t matter what terms are used by the parties in contracts or other documents to describe their relationship. For example, the contract may call the relationship a license, a distributorship, a joint venture, a dealership, independent contractors, consulting, etc., or the parties may form a limited partnership or a corporation. This is entirely irrelevant in the eyes of governmental regulators,. Their focus is not on semantics, but whether a small number of defining elements are present or not. Today sellers are subject to a complex web of regulations that differ from the federal level to the state level and even differ widely from state to state. Murphy advises through Franchise my business.

DON’T FALL FOR TODAY’S SUCKER PLAY

The internet is filled with statements like “Compare high cost franchising to low cost licensing.” Firms or individuals that say calling it a “license” dispenses with legal regulations are delusional and wrong for at least three reasons:

(1) Common Sense – if it was really that easy, everyone would be doing it that way. The 3,000-plus companies that are franchising are not stupid. Many can afford the very best legal talent available. It’s not a coincidence they’re all franchising and not licensing;

(2) Even if the relationship can be structured so it doesn’t fall within the definition of a “franchise,” the backup regulatory protection mechanism – business opportunity laws (discussed below) – will certainly apply. And complying with these is a lot more expensive than going the franchise route; and

(3) Any analysis must include federal law (franchise and business opportunity) as well as applicable state laws covering the same dual prongs (franchise and business opportunity).

This all reminds me of some financial planners who still advise their U.S. clients that filing U.S. income tax returns is not required under their interpretation of the U.S. Constitution. It just doesn’t work that way. Actually it does work, but only until the IRS catches up.

The “licensing avoids franchise regulations” spin (which, not surprisingly, is not accepted in the legal community) also only works until the company gets caught. The logic (not) goes something like this: licensing arises under contract law, not franchise law and therefore franchise law doesn’t apply. Sound’s just like the “you don’t have to file a tax return because tax laws don’t apply” argument.

REAL LIFE EXAMPLES

A license attorney prepared a dealer license agreement and ignored the FTC Franchise Rule disclosure requirements (“licensing arises under contract law, not franchise law”). The dealers became disgruntled and hired a litigation attorney who sued the company for, not surprisingly, selling disguised illegal franchises. It cost the company $750,000 to go to trial in federal court to answer the question “Is our license contract an illegal franchise?”

“Is our license really a disguised, illegal franchise?” is always a very expensive question to answer. Unless spending $750,000 is your idea of a good investment. Trying an end run around the franchise disclosure laws by calling it a “license” or a “dealership” may be a cheaper way to go initially. But it’s only a question of when (not if) you will be caught. Be prepared to spend mind-boggling amounts down the road when the disguised illegal franchise is challenged for what it really is.

In a 2008 case, Otto Dental Supply, Inc. v. Kerr Corp., 2008 WL 410630 (E.D. Ark. 2/13/08) another disguised franchise vs. a license was at issue. The company claimed it sold just a license, not a franchise and the franchise laws simply didn’t apply. It made a motion for summary judgment to have the case thrown out of court.

The federal Eastern District Court ruled against the company and ordered the case forward. It said whether or not the license was really a franchise was up to a jury to decide. Jurors are like most of us, and apply common sense to the simple defining elements of a franchise. They are not swayed by semantic arguments like “licensing arises under contract law, not franchise law and therefore franchise law doesn’t apply.” Another very expensive franchise vs. license learning lesson.

And here’s a final example. In Current Technology Concepts Inc. v. Irie Enterprises Inc. the Minnesota Supreme Court concluded a licensing arrangement was a franchise and held the franchise company liable for damages in the amount of $1.3 million for violating the Minnesota Franchise Law.

Hearing “after the fact” that the arrangement was an accidental, illegal franchise and you’re liable for $1.3 million was the last thing that company ever wanted to hear. Perhaps they got themselves into this mess by listening to statements found on the internet that franchising is expensive and licensing inexpensive. Again, if something sound’s too good to be true, it usually is and this should be a big flashing red light.

ROOTS OF LICENSING

It is important to remember the roots of licensing: artwork and character licensing – where the owner (licensor) grants permission to copy and distribute copyrighted works, such as allowing Mickey Mouse to appear on t-shirts and coffee mugs.

The most recent explosion in license law is the licensing of software on personal computers. Or, the owner of a trademark allows another a license to use its mark as a way of settling a trademark infringement suit. These are common and accepted forms of licensing. However, the attempt to use licensing as an end-run around the franchise laws is a corrupted use licensing was never intended for.

This is not to say licensing a business may be a viable option in foreign (out of U.S.) transactions where U.S. laws don’t apply – but these are a very small minority. Most transactions and contracts cover U.S. activities and residents, so the franchise vs. license question is usually an easy one to answer.

Why Business Franchising Is A More Popular Investment Choice For Banks

Critical to starting a business is having the appropriate finance in place, and money alone is the number one reason most as much as 90% – of business ventures fail during the early start-up period. While management failure does also play a part, it is money that makes any business worthwhile and gets it off the ground. At the same time, business franchising is a popular way of starting a business and becoming your own boss, and for a variety of reasons business franchising start-ups tend to be viewed more favourably by banks and investors. There are numerous key business reasons for this bias.

Firstly and most importantly of all, business franchising is a proven and tested business model. By virtue of being a business franchise, any opportunity of this nature requiring money has already been proven to work in another geographical area. Someone else has already demonstrated that the business model has the ability to work and generate revenues, and as such it has been franchised out to other business people. As such, banks tend to consider the business model less of a risk, allowing them to base their decisions on the faith they have in the individual in front of them rather than the specific intricacies of the business model.

Secondly business franchising is given more priority in funding because there is support available from the parties that have already made a success of the business. Because help is on hand and usually some form of training is provided, theres no trial and error with a franchise. The franchisees know exactly what to do and how to do when it comes to making a success of the business, which translates into a lower risk proposition and makes them instantly more creditworthy. The only consideration running through a bank managers mind is whether or not the business will be able to repay the loan they are offering, and with a business franchising opportunity and the support inherent in that, they find their answer more readily.

Another key reason business franchising received funding preference from banks and other lending institutions is that there is already a degree of goodwill associated with the franchise name. This means that the business franchising opportunity will benefit from the branding and marketing previously invested in by the franchisor, which will give the new business a lift when it opens. Simply because a business has a recognisable identity and has previous goodwill, it is less of a risk and less likely to struggle to find those all important initial paying customers and lenient suppliers.

Business franchising as a business model makes sense, and everybody on all sides of the table are kept happy. For the banks and money lenders, business franchising provides a much lower risk way of investing in businesses, and a much more guaranteed way of earning money on the finance offered. As such, banks are much more willing to invest in franchising opportunities than in other business ventures, making it far easier to raise the necessary capital to start up and survive the initial few years.

Obtaining Pet Store Franchise

If you really love animals, and being around them, what you can do is have your own pet store. The advantage of having your own pets store is that you are surrounded by animals which you love, and make money at the same time. Plus, you can save, because you can now get pet supplies for your own pets at a cheaper price. The next thing to think about is whether to start from scratch or just acquire a pet store franchise.
To Franchise or Not to Franchise
Before jumping into any conclusions as to which is the better way to go, you must survey your options. Weigh the pros and cons of building a pet store from starting from scratch or obtain a pet store franchise. Sometimes starting from scratch is a lot more difficult than obtaining a pet store franchise.
If you decide to start from scratch there are a lot of things to consider. You have to identify which type of pets you want your pet store to carry. There a lot of animals, so you need to narrow down your options. Think of the area on which your pet store will be situated. Realize your target market and base your choice of animals on the sell ability of that type of pet in that type of area.
Next thing is you have to know whether you will also stock your store with pet supplies, like dog food, fish food and other pet store supplies. Another thing is advertising will you be able to advertise your store to gain enough followers. The good thing about going with a pet store franchise is that you will be bringing an established name, and with it the advertising needed, and also the product name and the products itself. You will have a sort of manual, a guide on how to run your pet store.
So if you want to purchase a pet store franchise it’s a good thing to remember that you have to know the specifics of that certain company’s business franchise information. Pet store franchising involves a lot of research on your part as the franchiser.
Before getting hold of a pet store franchise, there will be a franchise agreement between you and the franchise center. A franchise agreement generally outlines all the franchise information like what rights you have, what are the rules and regulations, and the relationship between you and the mother company.
As the procurer of the pet store franchise the franchise agreement also contains the information of what you are allowed to sell, the advertising inclusions, the degree of uniformity and the parameters to which you can operate. If this all sounds a bit confusing, you can always go to a franchise lawyer.

All About Franchising And Starting Up A New Franchise Business

Copyright 2006 Peter Hayes

Franchise business opportunities are expanding rapidly. If you look at the most famous franchise in existence today is the McDonalds corporation. McDonalds has established itself around the world and is one of the leading business organizations. Opportunities in franchising continue to develop as the franchise industry develops.

What is a franchise?

Information on the Franchise Business

A franchise is a mirror image of an original business idea. When a business has become successful the opportunity arises to duplicate the success in other locations. When an individual purchases a franchise opportunity, they are purchasing is the right to repeat the original business operations in another area. To help them achieve success a franchisee receives complete instructions on how to achieve the success achieved by the original business. They get an established and proven business plan and marketing plan on which to build their new business.

A franchise has been granted the authorization to sell or distribute a companys goods or services in a certain geographical area. For example, a restaurant or coffee shops marketing area is limited, usually to people in the immediate local area. Therefore, creating another restaurant or coffee house based on the original business in a different area would be considered a franchise.

The original business developer determines the formula for producing the same result achieved by the original business and how this formula can be repeated in new locations. This formula is packaged and sold as a franchise. This package is sold to interested parties who can achieve success simply by following the proven formula.

Why Do Businesses Sell Franchises rather than Expanding their own Business?

What is the advantage of developing a franchise as opposed to simply opening the business in multiple locations? It is quite possible to open a number of restaurants in one city or county or even within a state. However, the time requirements and energy required to do this is extensive. Franchising offers th possibility to expand the business and have others on board to share the burden.

It would be impossible for someone like Roy Croc, who developed McDonalds, to run each individual McDonalds restaurant around the world. To expand your business without running it into the ground, you need quality people who have an interest at your own bottom line.

Information on Buying a Franchise Business

Many people would like the freedom to start their own business. However, they may be new to the business world. Or they may not be confident of their ability to develop a business. Or they may not have a business idea that they are confident in.

The opportunity to start a business that has a proven success record and an established plan for achieving a similar success is what make franchising attractive to new business owners.

This is beneficial to both the original business developer and the entrepreneur. The business developer makes a profit by selling his system and the entrepreneur gains the knowledge from an experienced owner with a successful business. This increases the opportunities for the entrepreneur, which allows for a greater chance of success.