Here are some guidelines to help you in deciding if franchising is right for you. The Franchise Agreement is the legal document which details the rights and obligations of the franchisor and the franchisee, including the length of term, the start and end periods of the agreement, the renewal provisions and the end of the contract.
In a broad financing program, the franchisee may use the name or sell the products of the franchisor, including the plan for managing and operating the business.
Learn about the business. So many new businesses have emerged in the past few years—from iced drinks to rice cakes to courier services and schools—and a good number of entrepreneurs have successfully grown their operations through franchising. Talk to franchisees and ask about the kind of support they have received, how they are performing, and everything else that would matter to your prospective business.
Are you considering a franchise because it has always been part of your personal or business plans, or were you just offered an opportunity that seems too good to pass up?
Look at the franchise agreement. Look at what it has to say about the roles of the franchisor and the franchisee, and think if you are agreeable to all the terms in the contract. Ask if you are ready to give these and bind yourself to a franchisor.
You also want to know that franchisees are doing well—this is an indicator of how your business would probably do, all things being equal. Investing in a business, whether it is franchise or not, has its own risks, so you have to make sure that you are comfortable about the amount of money that you will be putting at risk.
Check out the track record and financials of the franchisor as well as the franchisees. Just as franchises flourish because of good franchisors and equally good franchisees, some fail because of the same reasons.
Now you wonder—is franchising right for you? Make sure you understand what these terms mean and do not hesitate to ask questions from the franchisor. Try to know what people like about the products of the competitors, their experiences, and needs. For a fee, the franchisee is granted the right to market a product or a service under a a system that uses the trademark, name, logo and advertising owned by the franchisor.
Then decide if the industry is attractive enough. Knowing your motivations and interests will play a very important role in your decision making process.
By definition, franchising is a method of practicing and a business concept. There is no need to develop a business concept or build systems, and you can learn from other co-franchisees who can tell you about the upsides and downsides of the business. You may also be asked to purchase some supplies from the franchisor.
Most franchisors would be asking you for your net worth in your application, so it is worth revisiting your financial profile to see if you are ready to take on this business. Assess why you want a franchise.
You want to know that the franchisor is financially sound since you will be depending on them for the lifeblood of your business. A franchise may require a substantial financial outlay.
Those who may not want to follow the rules of their franchisors will not be happy with being told what to do. Franchisors will also require your commitment in resources and time. On the downside, franchisors impose their own systems that may not be flexible and may not match your ideas or expectations.
It is not enough to know about the franchisor, you should also know the ins and outs of the business, including the market it serves, price points, regulations that affect it, to name a few.
The most obvious advantage of getting a franchise is that it is like getting a business in a box.When you purchase a franchise, you mus answer to the parent company with regard to your business goals.
Read the details of our Franchise Business Plan. Tags: affordable food cart franchise philippines, food cart business for sale, food cart business ideas, food cart business plan, food cart franchise philippines Home» 10 Tips for Starting a Food Cart Business in the Philippines.
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Dreaming of one day owning your own business? The franchise route is one of the easiest and most profitable ways to become a startup entrepreneur.
Start making your dreams come true here. “Franchising refers to the method of practicing and using another’s perfected business concept,” explains the Philippine Franchise Association on their website. “In a franchise relationship, the franchisee is granted the right to market a product or a service under a marketing plan or a system that uses the trademark, name, logo and.
Creating a Business Plan for Your Franchise; Sample Franchise Business Plan: Please note that the example business plan provided is a sample of one way to format a business plan.
There are several different acceptable formats, and the contents of business plan sections will vary significantly due to factors including the franchise .Download