Merle Norman
Should I buy a franchise?
= Entrepreneur franchisee?
An entrepreneur is not just someone who has made a new business idea. A contractor may also refer to a franchisee, "a person who buys the rights to use trademarks in a business model and company to do business" ( http://franchises.about.com/od/franchiseglossary/g/franchisee.htm ). While that a franchise may require a little more capital to start a business from scratch, the rate of return is generally higher and occurs much faster.
There are several reasons for buying a franchise:
- 1 in 12 Retail stores are a franchise.
- The cumbersome process to create a business plan, marketing plan and financial plan has been written by experts in the industry.
- The purchase includes all infrastructure, customer suppliers, employees, equipment and systems as well.
- You can get a good insight and advice to their former owners.
- Lenders are more likely to finance a company with a proven track record.
- Profitability is not a problem as you would in a start-up.
Is there are disadvantages to becoming a franchisee:
- Extremely high initial cost.
- The Most franchisees must pay royalties the franchisor monthly based on a percentage of sales.
- Many dealers are required to make regular contributions to the advertising fund the franchisor.
- Most franchisors impose price, appearance and design standards, which limits control over how the franchise operates.
- The franchisor has the right to terminate the contract if the procedure standard operating license is violated in any way.
Cost
Both types of costs that are the most striking are the prospective franchisee franchise fees and royalty payments. The franchise fee is the only time and frequency non-refundable payment. This is probably the highest of any tax paid and can range from $ 500.00 to over $ 1 million. The second highest cost, payment of fees is a periodic fee is a percentage of gross sales per month. Most franchises have met most of these monthly minimum charges that can affect profitability during the slow season.
How to choose the license type to buy?
- Learn your financial capacity. Know the franchise capital requirements.
- What to do? Party class franchise with what you like.
- Talk to a representative of the franchise. They are the first point of contact for all questions and can answer any questions a potential franchisee.
Once you have answered all the questions and have reduced the franchise (s) you want, you must complete a formal license application, including a credit check and background. Once allowed to continue, by law the franchisor is required of you to send a franchise record (FDD). The FDD will contain information on the franchise that will help you in your decision process, such as franchise history and key management, financial statements, litigation, franchise openings / closings / Output contacts franchise, franchise agreement, requirements, and more. Source: www.franchise.com
Some franchises known and available to buy businesses that have made the Top 10 list for 2009:
more franchises of U.S. 500 Business Franchise
1. Metro
2. McDonald's
3. Liberty Tax Service
4. Sonic Drive-In Restaurants
5. InterContinental Hotels Group
6. Ace Hardware Corporation
7. Pizza Hut
8. The UPS Store, Mailboxes / etc
9. Circle K
10. Papa John's International. Inc.
opportunities Top Franchise can be run at home
1. Jani-King
2. Jan-Pro Franchising International. Inc.
3. Servpro
4. ServiceMaster
5. Snap-on Tools
6. Stratus Building Solutions
7. Matco Tools
8. Jazzercise Inc.
9. Vanguard Systems Cleaning
10. Bonus Building Care
The best franchises you can start at less than $ 50 000
1. Instant Tax Service
2. Jani-King
3. Jan-Pro Franchising International. Inc.
4. Kumon Math & Reading Centers
5. ServiceMaster
6. Merle Norman Cosmetics
7. Stratus Building Solutions
8. Jazzercise Inc.
9. Vanguard Cleaning
10. International RE / MAX. Inc.
fastest growing franchises in the Franchise 500
1. Jan-Pro Franchising International. Inc.
2. Metro
3. Instant Tax Service
4. Stratus Building Solutions
5. Snap Fitness Inc.
6. Dunkin 'Donuts
7. Jazzercise Inc.
8. Bonus Building Care
9. Anytime Fitness
10. Vanguard Cleaning
If you are concerned by the tax, franchise fee and initial investment, here are some examples of some well-known franchises:
Metro:
Total investment: $ 78.6K-238.3K
Franchise Fee: $ 15K
Charging current: 8%
McDonald's:
Total investment: $ 950.2K-1.8M
Franchise fees Registration: $ 45K
Charging current: + 12.5%
Liberty Tax:
Total investment: $ 56.8K-69.9K
Franchise Fee: $ 40K
Current Charge: Varies
If you can imagine to buy rights to the name of a well-known, access to training experts, has been a source of revenue established and brand recognition without fail then the decision is reduced three simple questions, you have the capital? Want access to a proven business model? Are you willing to relinquish significant control in the way of doing business? If you answered yes to all three, it's time to seriously consider becoming a franchisee.
About the Author
Dawn Moiré Williams is president of The M.I.L.E., Management Institute of Learning Excellence, adjunct professor at Virginia College, a freelance writer, and senior auditor for a large hospital management company. She received a BS in management from Hampton University and a MBA from MTSU. A resident of Nashville and native of Los Angeles, she is a wife and mother of two boys. Contact her with questions regarding management training, career counseling or article information at dawn@milesofsuccess.com
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Vintage 1970s Merle Norman 3 Muses Black/Ivory Lucite/Early Plastic Box Bag £39.99 |
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Photographic Prints of Hcdlcga Ec561 from Everett Collection £20.00 16×12 Print, HCDLCGA EC561. Scenes of Los Angeles, the Merle Norman Building, constructed in 1936, previously a cosmetics salon, now a Staples office supplies store, photograph by Carol M. Highsmith, California, 2005. Chosen by Everett Collection. Printed on 406×305mm Fuji Crystal Archive paper for stable image permanence and brilliant colour reproduction with smooth tones, enhanced sharpness, and… |
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Canvas Prints of Hcdlcga Ec561 from Everett Collection £50.00 16 Canvas Print, White Sides. , HCDLCGA EC561. Scenes of Los Angeles, the Merle Norman Building, constructed in 1936, previously a cosmetics salon, now a Staples office supplies store, photograph by Carol M. Highsmith, California, 2005. Chosen by Everett Collection. Ready to hang, 40cm along the longest edge (other side scaled to fit). High quality 300gsm canvas with Fujifilm water based pigment i… |
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Framed Prints of Hcdlcga Ec561 from Everett Collection £50.00 Framed 16×12 Print, Black Grain Bevel with White Mount. , HCDLCGA EC561. Scenes of Los Angeles, the Merle Norman Building, constructed in 1936, previously a cosmetics salon, now a Staples office supplies store, photograph by Carol M. Highsmith, California, 2005. Chosen by Everett Collection. 41×30cm print in 51×41cm frame with mount individually cut to size. Wood Grain effect Artcore molding. Moun… |
