In most states there are different processes for purchasing shotguns and handguns. In general, it is easier to buy a shotgun. That is because the majority of states do not require a shotgun owner to hold a permit. Shotgun owners are also not required to register their guns in a majority of states. All states require some sort of background check be performed before a purchase can be made from a licensed dealer. No one who has been convicted of a violent crime will be allowed to purchase a gun legally.
Controls on handguns are usually stricter. While many states allow the purchase of a handgun without a permit or registration, there are usually separate requirements for owners who wish to carry a handgun on their person. Purchasing a handgun will often require a more thorough background check and a waiting period. Some states stipulate that a handgun cannot be purchased or transferred without a locking device for the gun.
So which states have the most relaxed gun laws? There are several in the running. Vermont does not require a mandatory waiting period for any gun purchases. The green mountain state also allows gun owners to carry a concealed weapon without a permit. Alaska has similar gun laws to Vermont and is considered a very liberal state for gun owners.
Oklahoma would also rank high on the list of states with easy gun laws. The state does not have licensing requirements for dealers, making this a popular place to purchase items from gun shows. Kentucky does not have any laws to limit the number of guns that can be purchased or owned by a single person, making it the state to allow a gun collector to build up quite a collection. Like Oklahoma, Kentucky does not regulate gun dealers. Gun dealers in this state are also not required to perform background checks. Many say that everything is bigger in Texas, but apparently that does not extend to the state guns laws. Many Texans are proud gun owners. Texas is widely considered a gun-friendly state by most standards.
Because gun laws vary so widely from state to state, it is important to check the regulations in your area before you attempt to purchase any type of gun. Some states have less restrictions and regulations in place for purchases of shotguns and handguns. While there are plenty of debates about which states are have the easiest gun laws, the states listed above are in the running for the top five.
Tuesday, July 31, 2012
Article On Electronic Health Record
Introduction - "What is an EHR"?
An Electronic Health Record (EHR) refers to an individual patient's medical record in digital format. Electronic health record systems co-ordinate the storage and retrieval of individual records with the aid of computers. EHRs are usually accessed on a computer, often over a network. It may be made up of electronic medical records (EMRs) from many locations and/or sources. A variety of types of healthcare-related information may be stored and accessed in this way.
Types of Data stored in EHR:
An electronic medical record might include:
1.Patient demographics.
2.Medical history, examination and progress reports of health and illnesses.
3.Medicine and allergy lists, and immunization status.
4.Laboratory test results.
5.Radiology images (X-rays, CTs, MRIs, etc.)
6.Photographs, from endoscopy or laparoscopy or clinical photographs.
7.Medication information, including side-effects and interactions.
8.Evidence-based recommendations for specific medical conditions
9.A record of appointments and other reminders.
10.Billing records.
11.Eligibility
12.Advanced directives, living wills, and health powers of attorney
Advantages of EHR over paper records:
1. Medical records may be on "physical" media such as film (X-rays), paper (notes), or photographs, often of different sizes and shapes. Physical storage of documents is problematic, as not all document types fit in the same size folders or storage spaces. In the current global medical environment, patients are shopping for their procedures. Many international patients travel to US cities with academic research centers for specialty treatment or to participate in Clinical Trials. Coordinating these appointments via paper records is a time-consuming procedure and may violate the patient's HIPAA privacy
2. Physical records usually require significant amounts of space to store them. When physical records are no longer maintained, the large amounts of storage space are no longer required. Paper, film, and other expensive physical media usage (and therefore cost) is also reduced with electronic record storage
3. When paper records are stored in different locations, furthermore, collecting and transporting them to a single location for review by a healthcare provider is time-consuming. When paper (or other types of) records are required in multiple locations, copying, faxing, and transporting costs are significant, as are the concerns of HIPAA compliance
4. Handwritten paper medical records can be associated with poor legibility, which can contribute to medical errors. Pre-printed forms, the standardization of abbreviations, and standards for handwriting were encouraged to improve reliability of paper medical records. Electronic records help with the standardization of forms, terminology and abbreviations, and data input. Digitization of forms facilitates the collection of data for epidemiology and clinical studies
5. In 2004, an estimate was made that 1 in 7 hospitalizations occurred when medical records were not available. Additionally, 1 in 5 lab tests were repeated because results were not available at the point of care. Electronic records keeping and order entry were found to reduce errors associated with handwritten documents and were recommended for widespread adoption.
Conclusion:
The goal of the NHS (National Health Service US) is to have 60,000,000 patients with a centralized electronic health record by 2010. The Clinics/Hospitals in US realized that the objective of NHS can be implemented & achieved in the stipulated timeframe by out sourcing their medical transcription work.
Transcription star offers broad spectrum of medical transcription services with great deal of value addition. The Skilled work force of Transcription star transcribes the medical recordings in 12 to 24 hours time depend on the need/urgent need of the client. Our services can be delivered to our potential clients in the fastest turn around time, which
Declines the backlog of the medical records, thereby asserting the accomplishment of the objective of NHS.
An Electronic Health Record (EHR) refers to an individual patient's medical record in digital format. Electronic health record systems co-ordinate the storage and retrieval of individual records with the aid of computers. EHRs are usually accessed on a computer, often over a network. It may be made up of electronic medical records (EMRs) from many locations and/or sources. A variety of types of healthcare-related information may be stored and accessed in this way.
Types of Data stored in EHR:
An electronic medical record might include:
1.Patient demographics.
2.Medical history, examination and progress reports of health and illnesses.
3.Medicine and allergy lists, and immunization status.
4.Laboratory test results.
5.Radiology images (X-rays, CTs, MRIs, etc.)
6.Photographs, from endoscopy or laparoscopy or clinical photographs.
7.Medication information, including side-effects and interactions.
8.Evidence-based recommendations for specific medical conditions
9.A record of appointments and other reminders.
10.Billing records.
11.Eligibility
12.Advanced directives, living wills, and health powers of attorney
Advantages of EHR over paper records:
1. Medical records may be on "physical" media such as film (X-rays), paper (notes), or photographs, often of different sizes and shapes. Physical storage of documents is problematic, as not all document types fit in the same size folders or storage spaces. In the current global medical environment, patients are shopping for their procedures. Many international patients travel to US cities with academic research centers for specialty treatment or to participate in Clinical Trials. Coordinating these appointments via paper records is a time-consuming procedure and may violate the patient's HIPAA privacy
2. Physical records usually require significant amounts of space to store them. When physical records are no longer maintained, the large amounts of storage space are no longer required. Paper, film, and other expensive physical media usage (and therefore cost) is also reduced with electronic record storage
3. When paper records are stored in different locations, furthermore, collecting and transporting them to a single location for review by a healthcare provider is time-consuming. When paper (or other types of) records are required in multiple locations, copying, faxing, and transporting costs are significant, as are the concerns of HIPAA compliance
4. Handwritten paper medical records can be associated with poor legibility, which can contribute to medical errors. Pre-printed forms, the standardization of abbreviations, and standards for handwriting were encouraged to improve reliability of paper medical records. Electronic records help with the standardization of forms, terminology and abbreviations, and data input. Digitization of forms facilitates the collection of data for epidemiology and clinical studies
5. In 2004, an estimate was made that 1 in 7 hospitalizations occurred when medical records were not available. Additionally, 1 in 5 lab tests were repeated because results were not available at the point of care. Electronic records keeping and order entry were found to reduce errors associated with handwritten documents and were recommended for widespread adoption.
Conclusion:
The goal of the NHS (National Health Service US) is to have 60,000,000 patients with a centralized electronic health record by 2010. The Clinics/Hospitals in US realized that the objective of NHS can be implemented & achieved in the stipulated timeframe by out sourcing their medical transcription work.
Transcription star offers broad spectrum of medical transcription services with great deal of value addition. The Skilled work force of Transcription star transcribes the medical recordings in 12 to 24 hours time depend on the need/urgent need of the client. Our services can be delivered to our potential clients in the fastest turn around time, which
Declines the backlog of the medical records, thereby asserting the accomplishment of the objective of NHS.
Monday, July 30, 2012
solving Todays Delinquent Hoa Fees Problem
The more you get, the sooner you get it, the better off you are." I felt my forehead scrunch in that familiar expression of confusion as those words rolled off my real estate instructor's lips. "Come again?" I raised my hand. He then held up two bills: one a twenty dollar bill, and the other a ten. "Which one do you want", he tempted? "The twenty", I bit. "Let me ask it again", he continued. "You can have the ten now, or the twenty in ten years. Now which one do you want?" You could almost see the bright cartoon 'light bulb' appear above my head. "That's the 'Time Value' of money" he said, nailing down his point.
Today that issue strikes at the heart of how some HOA's still depend on liening a property to collect past dues - when all the dynamics upon which that once-successful formula worked have changed. Properties aren't selling, delinquencies are increasing, and costs to cure are rising. We're now wedged between a rock and a hard place where buyers are insecure about the market, and lenders require the ability to leap tall buildings in a single bound prior to granting a loan. And it's getting worse. For example, Fannie Mae and Freddie Mac Federal Lending Guidelines now require Condominium HOA's to have no more than 15% of their properties 30 days or more delinquent on dues, in order for any property in that project to qualify for a loan. Do you see the vicious cycle? The more delinquencies rack-up, the less likely you'll see your liens settle any time soon. Meanwhile properties are getting older and in need of more repairs. This is no time to not have time on your side.
Another downside often missed is that delinquent homeowners don't care if their old property has a lien against it, because that only reflects poorly on the property - not them. What leverage do you have to get a delinquent homeowner to pay you if there's no consequence to them? It's far easier and less expensive to take simple steps to pursue the debtor, and it's far more effective as well... but more on that in a moment.
Small Claims Court can work, but it can become expensive and requires a lot of time. Lawyers are costly, even when they "stack their fees on top", because they're essentially making the debt harder to collect - which makes that method a bit of a Trojan Horse for you.
In every piece of bulletproof glass there's a tiny point requiring the slightest of impact to shatter that glass. Is there such a spot with delinquent HOA fees? Yes, there is. And there's a most effective way to reach it. Using this method in context with other proven techniques is very effective, and can cost very little to do. There are rules and regulations that must be followed, but once credit reporting is enabled the delinquent homeowner has little or nowhere to run. That's because even trying to rent an apartment today demands you have no record of owing any previous housing delinquencies of any kind. In fact credit reporting can adversely affect many aspects of a debtor's life today - even employment. Having delinquent HOA fees on their credit report dictates they get back with you - sooner than later - to pay their debt. Even the mere threat of reporting can quickly generate a state of mind in prudent debtors to start paying you, and to do so now.
One other thing you must insist on in any service that provides the array of tools to facilitate HOA collections is: it must be a system where the debtor pays you directly - no exceptions! Allowing your money to go through anyone else's hands first, opens the door for all kinds of problems; ranging from delays in receiving your money, to not receiving all the money you should.
There are a few other simple tricks of the trade that can be employed to expedite collecting your HOA's money, but credit reporting is a must in any system. Without it your approach has no teeth. Coupling credit reporting with a systematic program including an attorney written demand, VOE, and phone campaign you'll find is most efficient indeed. Solid, inexpensive and effective alternatives to high-cost methods to recover your delinquent HOA fees are available. Be sure they include the elements discussed here, and your results will dramatically improve.
Today that issue strikes at the heart of how some HOA's still depend on liening a property to collect past dues - when all the dynamics upon which that once-successful formula worked have changed. Properties aren't selling, delinquencies are increasing, and costs to cure are rising. We're now wedged between a rock and a hard place where buyers are insecure about the market, and lenders require the ability to leap tall buildings in a single bound prior to granting a loan. And it's getting worse. For example, Fannie Mae and Freddie Mac Federal Lending Guidelines now require Condominium HOA's to have no more than 15% of their properties 30 days or more delinquent on dues, in order for any property in that project to qualify for a loan. Do you see the vicious cycle? The more delinquencies rack-up, the less likely you'll see your liens settle any time soon. Meanwhile properties are getting older and in need of more repairs. This is no time to not have time on your side.
Another downside often missed is that delinquent homeowners don't care if their old property has a lien against it, because that only reflects poorly on the property - not them. What leverage do you have to get a delinquent homeowner to pay you if there's no consequence to them? It's far easier and less expensive to take simple steps to pursue the debtor, and it's far more effective as well... but more on that in a moment.
Small Claims Court can work, but it can become expensive and requires a lot of time. Lawyers are costly, even when they "stack their fees on top", because they're essentially making the debt harder to collect - which makes that method a bit of a Trojan Horse for you.
In every piece of bulletproof glass there's a tiny point requiring the slightest of impact to shatter that glass. Is there such a spot with delinquent HOA fees? Yes, there is. And there's a most effective way to reach it. Using this method in context with other proven techniques is very effective, and can cost very little to do. There are rules and regulations that must be followed, but once credit reporting is enabled the delinquent homeowner has little or nowhere to run. That's because even trying to rent an apartment today demands you have no record of owing any previous housing delinquencies of any kind. In fact credit reporting can adversely affect many aspects of a debtor's life today - even employment. Having delinquent HOA fees on their credit report dictates they get back with you - sooner than later - to pay their debt. Even the mere threat of reporting can quickly generate a state of mind in prudent debtors to start paying you, and to do so now.
One other thing you must insist on in any service that provides the array of tools to facilitate HOA collections is: it must be a system where the debtor pays you directly - no exceptions! Allowing your money to go through anyone else's hands first, opens the door for all kinds of problems; ranging from delays in receiving your money, to not receiving all the money you should.
There are a few other simple tricks of the trade that can be employed to expedite collecting your HOA's money, but credit reporting is a must in any system. Without it your approach has no teeth. Coupling credit reporting with a systematic program including an attorney written demand, VOE, and phone campaign you'll find is most efficient indeed. Solid, inexpensive and effective alternatives to high-cost methods to recover your delinquent HOA fees are available. Be sure they include the elements discussed here, and your results will dramatically improve.
The Importance Of Challenging A Debt
If a debt collector asks that you pay a debt placed with him, you have the right to dispute the debt. You will achieve two noteworthy things by challenging that debt. First, if you challenge the debt in the first 30 days after the debt collector gets hold of you, you can stop the debt collector from carrying on collection activities until he verifies that you really owe the debt. Second, you can require the debt collector to reveal to any credit agency to which he reports that you dispute the debt. This is valuable because many credit grading models ignore disputed debts.
Dealing with Debt Collectors within the First 30 Days
The most best time to challenge a debt is during the first 30 days after you receive the initial letter from the debt collector. This period is referred to as the verification period. During this time, you don't need a valid reason to dispute the debt. It's permissible for you to only ask the debt collector to verify that you really owe the debt. This is a powerful request because it essentially places the burden of proof on the collector. Unless the debt collector produces confirmation of the debt, he can take no more action to collect from you.
Of course, if you have a valid challenge to the debt, make sure to assert it in your verification request. Simply requesting validation doesn't require that the debt collector describe the debt as disputed to a credit reporting bureau. To invoke the requirement that the debt collector describe the debt as challenged, you must put forward a specific valid dispute to the debt.
Responding to Debt Collectors after the First 30 Days
Even if you miss the first 30 day period of time, it's still a good idea to challenge a debt. A genuine dispute outside the 30 day period will still force the debt collector to describe your debt as disputed. Don't produce a trivial dispute, because you will sabotage any future lawsuit you may file.
If you live in Texas, you have more rights that aren't available under the federal Fair Debt Collection Practices Act. You may dispute a debt at any time by presenting the debt collector a letter of your dispute. Upon receipt of the notice, the debt collector must cease all collection efforts until he investigates and validates the true amount of money of the debt, if any.
No later than 30 days after the debt collector receives your challenge, he has to answer in writing either denying the dispute, admitting the dispute, or requesting additional time for the investigation. If he acknowledges the dispute, he must correct his records and give a notice of the inaccuracy along with a copy of the corrected data to each agency to whom he presented a report of the wrong information. If he asks for additional time, he must correct his books in conformity with your request and present notice of the correction to each agency to whom he reported the disputed data. The debt collector may restart collection attempts only after his probe is finished and he has concluded his records are correct.
Disputing Debts with Creditors
Federal debt collection law doesn't apply to creditors. You don't have comparable rights when you challenge debts with your original creditors. You do, however, have challenge rights by virtue of other federal and state laws with particular kinds of creditors.
For all creditors, Texas law prohibits representing that a an individual is willfully refusing to pay a debt if the person has disputed the debt in writing. Texas law, however, doesn't specifically make reference to credit reporting as the federal law does. As a practical matter, however, a creditor who reports to a credit reporting agency that you have refused to settle a debt after you have challenged that debt is almost always going to be in violation of this law. Texas law is also broader than the federal law. It proscribes making this representation to anyone, not just a credit reporting agency. Consequently, a creditor who sells a debt to a third party debt collector while improperly representing that you are refusing to pay may be in violation of this law.
Unfortunately, there are unresolved legal questions regarding the interaction of the federal Fair Credit Reporting Act and the Texas Debt Collection Act that make it hard to hold a creditor liable for violating this law in its report to credit reporting agencies. But it's still wothwhile to send the challenge letter because the creditor may comply to avoid the possibility that federal law will be understood to grant the enforcement of this state law requirement. The dispute letter may, therefore, preclude the creditor from misrepresenting your debt to third parties other than credit reporting bureaus.
Dealing with Debt Collectors within the First 30 Days
The most best time to challenge a debt is during the first 30 days after you receive the initial letter from the debt collector. This period is referred to as the verification period. During this time, you don't need a valid reason to dispute the debt. It's permissible for you to only ask the debt collector to verify that you really owe the debt. This is a powerful request because it essentially places the burden of proof on the collector. Unless the debt collector produces confirmation of the debt, he can take no more action to collect from you.
Of course, if you have a valid challenge to the debt, make sure to assert it in your verification request. Simply requesting validation doesn't require that the debt collector describe the debt as disputed to a credit reporting bureau. To invoke the requirement that the debt collector describe the debt as challenged, you must put forward a specific valid dispute to the debt.
Responding to Debt Collectors after the First 30 Days
Even if you miss the first 30 day period of time, it's still a good idea to challenge a debt. A genuine dispute outside the 30 day period will still force the debt collector to describe your debt as disputed. Don't produce a trivial dispute, because you will sabotage any future lawsuit you may file.
If you live in Texas, you have more rights that aren't available under the federal Fair Debt Collection Practices Act. You may dispute a debt at any time by presenting the debt collector a letter of your dispute. Upon receipt of the notice, the debt collector must cease all collection efforts until he investigates and validates the true amount of money of the debt, if any.
No later than 30 days after the debt collector receives your challenge, he has to answer in writing either denying the dispute, admitting the dispute, or requesting additional time for the investigation. If he acknowledges the dispute, he must correct his records and give a notice of the inaccuracy along with a copy of the corrected data to each agency to whom he presented a report of the wrong information. If he asks for additional time, he must correct his books in conformity with your request and present notice of the correction to each agency to whom he reported the disputed data. The debt collector may restart collection attempts only after his probe is finished and he has concluded his records are correct.
Disputing Debts with Creditors
Federal debt collection law doesn't apply to creditors. You don't have comparable rights when you challenge debts with your original creditors. You do, however, have challenge rights by virtue of other federal and state laws with particular kinds of creditors.
For all creditors, Texas law prohibits representing that a an individual is willfully refusing to pay a debt if the person has disputed the debt in writing. Texas law, however, doesn't specifically make reference to credit reporting as the federal law does. As a practical matter, however, a creditor who reports to a credit reporting agency that you have refused to settle a debt after you have challenged that debt is almost always going to be in violation of this law. Texas law is also broader than the federal law. It proscribes making this representation to anyone, not just a credit reporting agency. Consequently, a creditor who sells a debt to a third party debt collector while improperly representing that you are refusing to pay may be in violation of this law.
Unfortunately, there are unresolved legal questions regarding the interaction of the federal Fair Credit Reporting Act and the Texas Debt Collection Act that make it hard to hold a creditor liable for violating this law in its report to credit reporting agencies. But it's still wothwhile to send the challenge letter because the creditor may comply to avoid the possibility that federal law will be understood to grant the enforcement of this state law requirement. The dispute letter may, therefore, preclude the creditor from misrepresenting your debt to third parties other than credit reporting bureaus.
A Franchise Attorney is an Important Aspect in Franchising
Business and money go hand in hand. The prime objective of an entrepreneur is to earn money and expand the business scenario. Franchising is a promising sector, which can help entrepreneurs to make big money. One can either choose to be a franchise or a franchisor, depending on the size of the business. However, there are certain rules and regulations to be followed as the federal and state laws are very stringent. So, it is always advisable to get a franchise attorney, who can take care of all the necessary elements involved in the business. There are a number of attorneys, who are adequately skilled and professional and can help entrepreneurs during the process. Ranging from drafting franchise agreements to negotiating commercial contracts, these attorneys offer a lot of services.
Franchises generally depend on the agreements between the two parties involved in the process. These franchise agreements have a lot of loopholes and clauses, and are filled with confusing terms which are very difficult for a layman to decipher. A franchise attorney can help in finding out these loopholes and explain the clauses and jargons in the agreement, thereby securing the deal. Entrepreneurs can make use of the somekeyword and get in touch with the best lawyers within the vicinity. The question may arise regarding whom to contact among a number of good lawyers. In that case, approaching an experienced and adept lawyer is a suitable option. There are several law firms which are supported by a team of experienced franchise lawyers. One can visit these firms and get help in franchising.
If somebody fails to find a suitable law firm specialized in franchising, the next best option is to find an established law firm which specializes in the corporate law field. Referrals and recommendations are other ways to find a good lawyer who will be able to help in franchising. A law firm well established and specialized in franchise law is the best option to seek refuge. Backed by a team of experienced franchise lawyers, these firms can definitely provide the best solutions. Be it a foreign company, who wants to do business in the US, or a US based company; these firms offer services to all. Various necessary elements like, drafting franchise agreements, establishing distribution system, licensing, franchise registrations and negotiating commercial contracts, these firms do everything which are needed for a successful venture in franchising. They also provide counseling to make the entrepreneurs understand state and federal laws of the business.
Choosing a good attorney can always turn out to be a significant step in franchising. However, one must also emphasize on choosing the right partner. A wrong partner may bring mayhem to business as franchising is strictly done between two parties, sharing same values. One can reach the zenith if franchising is done precisely while taking care of both time and money.
Mical Kc is an experienced writer having more than 8 years of experience in writing articles on various topics such as somekeyword, Franchise Agreement and somekeyword.
Franchises generally depend on the agreements between the two parties involved in the process. These franchise agreements have a lot of loopholes and clauses, and are filled with confusing terms which are very difficult for a layman to decipher. A franchise attorney can help in finding out these loopholes and explain the clauses and jargons in the agreement, thereby securing the deal. Entrepreneurs can make use of the somekeyword and get in touch with the best lawyers within the vicinity. The question may arise regarding whom to contact among a number of good lawyers. In that case, approaching an experienced and adept lawyer is a suitable option. There are several law firms which are supported by a team of experienced franchise lawyers. One can visit these firms and get help in franchising.
If somebody fails to find a suitable law firm specialized in franchising, the next best option is to find an established law firm which specializes in the corporate law field. Referrals and recommendations are other ways to find a good lawyer who will be able to help in franchising. A law firm well established and specialized in franchise law is the best option to seek refuge. Backed by a team of experienced franchise lawyers, these firms can definitely provide the best solutions. Be it a foreign company, who wants to do business in the US, or a US based company; these firms offer services to all. Various necessary elements like, drafting franchise agreements, establishing distribution system, licensing, franchise registrations and negotiating commercial contracts, these firms do everything which are needed for a successful venture in franchising. They also provide counseling to make the entrepreneurs understand state and federal laws of the business.
Choosing a good attorney can always turn out to be a significant step in franchising. However, one must also emphasize on choosing the right partner. A wrong partner may bring mayhem to business as franchising is strictly done between two parties, sharing same values. One can reach the zenith if franchising is done precisely while taking care of both time and money.
Mical Kc is an experienced writer having more than 8 years of experience in writing articles on various topics such as somekeyword, Franchise Agreement and somekeyword.
Sunday, July 29, 2012
How To Franchise
Answering the "how to franchise" question is relatively straightforward. Before we get to that, the starting point is to realize a franchise your business program allows your company to get out of the trenches and become highly-paid generals overseeing your soldiers.
Long-term options are also attractive. Build an empire and relax, or let the franchise company be acquired by an increasing number of large, international companies that are looking for small, but growing U.S. franchise companies to take to the next level. According to the International Franchise Association, 900 new companies have franchised in the last three years.
FRANCHISE FEASIBILITY
The first critical step in how to franchise is conducting a feasibility analysis. Is the business model successful? Can it be replicated and taught to others? Are their any underling problems that need to be addressed? Franchising will not solve existing problems; it will only make them worse.
STRATEGIC FRANCHISE PLANNING
The second step in how to franchise is strategic franchise planning. Especially in the franchise industry, if you don't plan for success, you set yourself up for failure.This happens frequently with new companies entering the franchise industry. They mistakenly use a franchise consulting firm or franchise attorney without an MBA, where little or no attention is paid to critical strategic planning issues.Creating enduring franchise relationships requires a comprehensive strategy and vision that addresses all aspects of the franchise endeavor.
FRANCHISE OPERATONS MANUAL
The third step in how to franchise is developing a franchise operations manual. Written correctly, an operations manual is a daily reference tool, guiding someone unfamiliar with your business through the day-to-day operating procedures. An operations manual is often called the Bible of Operations. Using boilerplate, templates or using a franchise consultant to develop this key document can not only be expensive (consultants charge $20,000 to $25,000), it also brings another, even more expensive result - legal risk. Including inappropriate topics, chapters and policies that are commonly found in company owned, chain operations manuals. If these are included, as they invariably are in franchise operations manuals and template operations manuals, very significant franchise liability issues arise.
FRANCHISE DISCLOSURE DOCUMENT AND REGISTATION
The fourth step in how to franchise is drafting a FDD Franchise Disclosure Document. Similar to a securities (stock offering) prospectus, this document should be written, start to finish, by a competent franchise lawyer. The FDD is then registered in those states that require a registration process. Drafting a balanced, fair FDD can save a trip to the courtroom later. Using online or boilerplate FDD template almost certainly means a visit to the courtroom in the near future. As these visits cost hundreds of thousands of dollars and up, they far outweigh the cost of doing it right to begin with.
FRANCHISE MANAGEMENT TRAINING
The fifth step in somekeyword is training the franchise management team in how to operate the new franchise company. When the fourth documentation stepends, momentum gathers with the start of the franchise marketing. This is where the sparks begin to fly as franchises are sold, the new franchise owners are taught and trained, and opening assistance is provided. It's also when most new franchise companies make serious mistakes that haunt them for years or even decades to come.
Resources are often wasted because the new company has not been schooled in the art of selling franchises. Or franchises are sold without carefully screening the would-be franchise owners. As the saying goes, one bad apple can ruin the entire barrel. Even in the best case scenario, marketing mistakes are costly. Some companies spend tens of thousands of dollars on inappropriate marketing and media choices.
Our solution: provide new franchise companies with in-depth franchise training instructional workshops as well as on-going, as-needed advice based on three decades of excellence and experience in franchise industry best practices. This instruction is affordable, practical and will save your company tens of thousands of dollars initially and even more going forward (and, of course, not having to pay a yearly six-figure salary for franchise management experience).
Author credentials and background Kevin B. Murphy, Mr. Franchise, is a somekeyword attorney in San Francisco with a 30-year practice devoted exclusively to franchise law. For 20-years he has been a testifying franchise expert witness in court and arbitration proceedings, giving him vast experience in knowing where the bullets come from in franchise litigation. A somekeyword, holds degrees in business administration and law from the University of San Francisco and an MBA from San Francisco State University.
Long-term options are also attractive. Build an empire and relax, or let the franchise company be acquired by an increasing number of large, international companies that are looking for small, but growing U.S. franchise companies to take to the next level. According to the International Franchise Association, 900 new companies have franchised in the last three years.
FRANCHISE FEASIBILITY
The first critical step in how to franchise is conducting a feasibility analysis. Is the business model successful? Can it be replicated and taught to others? Are their any underling problems that need to be addressed? Franchising will not solve existing problems; it will only make them worse.
STRATEGIC FRANCHISE PLANNING
The second step in how to franchise is strategic franchise planning. Especially in the franchise industry, if you don't plan for success, you set yourself up for failure.This happens frequently with new companies entering the franchise industry. They mistakenly use a franchise consulting firm or franchise attorney without an MBA, where little or no attention is paid to critical strategic planning issues.Creating enduring franchise relationships requires a comprehensive strategy and vision that addresses all aspects of the franchise endeavor.
FRANCHISE OPERATONS MANUAL
The third step in how to franchise is developing a franchise operations manual. Written correctly, an operations manual is a daily reference tool, guiding someone unfamiliar with your business through the day-to-day operating procedures. An operations manual is often called the Bible of Operations. Using boilerplate, templates or using a franchise consultant to develop this key document can not only be expensive (consultants charge $20,000 to $25,000), it also brings another, even more expensive result - legal risk. Including inappropriate topics, chapters and policies that are commonly found in company owned, chain operations manuals. If these are included, as they invariably are in franchise operations manuals and template operations manuals, very significant franchise liability issues arise.
FRANCHISE DISCLOSURE DOCUMENT AND REGISTATION
The fourth step in how to franchise is drafting a FDD Franchise Disclosure Document. Similar to a securities (stock offering) prospectus, this document should be written, start to finish, by a competent franchise lawyer. The FDD is then registered in those states that require a registration process. Drafting a balanced, fair FDD can save a trip to the courtroom later. Using online or boilerplate FDD template almost certainly means a visit to the courtroom in the near future. As these visits cost hundreds of thousands of dollars and up, they far outweigh the cost of doing it right to begin with.
FRANCHISE MANAGEMENT TRAINING
The fifth step in somekeyword is training the franchise management team in how to operate the new franchise company. When the fourth documentation stepends, momentum gathers with the start of the franchise marketing. This is where the sparks begin to fly as franchises are sold, the new franchise owners are taught and trained, and opening assistance is provided. It's also when most new franchise companies make serious mistakes that haunt them for years or even decades to come.
Resources are often wasted because the new company has not been schooled in the art of selling franchises. Or franchises are sold without carefully screening the would-be franchise owners. As the saying goes, one bad apple can ruin the entire barrel. Even in the best case scenario, marketing mistakes are costly. Some companies spend tens of thousands of dollars on inappropriate marketing and media choices.
Our solution: provide new franchise companies with in-depth franchise training instructional workshops as well as on-going, as-needed advice based on three decades of excellence and experience in franchise industry best practices. This instruction is affordable, practical and will save your company tens of thousands of dollars initially and even more going forward (and, of course, not having to pay a yearly six-figure salary for franchise management experience).
Author credentials and background Kevin B. Murphy, Mr. Franchise, is a somekeyword attorney in San Francisco with a 30-year practice devoted exclusively to franchise law. For 20-years he has been a testifying franchise expert witness in court and arbitration proceedings, giving him vast experience in knowing where the bullets come from in franchise litigation. A somekeyword, holds degrees in business administration and law from the University of San Francisco and an MBA from San Francisco State University.
Franchise Sales Are Not The Answer...
I was recently approached by a franchise that was looking for help. In my franchise consulting practice, I often get calls from franchise concept willing to expand their systems. The business had five units in the retail industry with good financial performance and happy franchisees; but, they were still struggling because the challenge was either franchise sales, or a lack of sales.
They were willing to review their process and see if my franchise research could be of any help.
I reviewed certain preliminary information, their FDD (somekeyword), and their marketing material. I took interview of different key personnel, their validation process and also social media presence for strategic business planning.
I quickly concluded that we had some raw material to carve a plan before marketing the brand. On the client's request, I made an effective proposal and forwarded it to the client for review. This is what somekeyword services is all about.
It was immediately rejected as not unnecessary information. They stated re-evaluation on their model was not required at all as everything was fine. Their intention was just to SELL, SELL and SELL.
Now, you my not consider there wasn't a problem with franchise system. The franchise was minting money. Their locations were successful and their franchisees were happy. In fact, the client was somewhat held back by the franchise consulting system fees. Not that I cannot be responsive to costs, but I need to make a living. What I found disconcerting was their mindset because of the answer being sales, particularly given a few concerns I had mentioned to them-
The first problem was that their FDD lacked key elements. It did not have all the required disclosures, items and list of franchisees. What this means is the document was unenforceable. While I am NOT an attorney, I did advise them to get it reviewed. If you have an unenforceable document, it will have no value. If a franchise took legal action, they win and the franchise research takes both a financial hit and a blow to the value of the brand.
The second problem was the lack of defined process, no adequate distribution channels for their inventory, no unique selling points and no branding strategy. While they had some brand recognition in their local markets; if they took the system to California, New York and other places, there was nothing to make it stand out or DIFFERENTIATE themselves from competitive businesses. In addition, without a clearly defined system, which is one of the most important benefits to a franchise, what is the value? Why to invest in it?
While somekeyword can mean different things depending on the expertise provided; in this case, it was clear. As this franchise model appeared to be successful, they were not in the position to sell the model. In fact, given the status of the FDD and Franchise Agreement, they were exposing themselves to potential liability.
In this instance, I told the franchise consulting services that I could not work with them in the present situation. While in most cases, sales can solve A LOT of the problems in a business. In this direction, franchise sales would have a negative impact.
As a franchise consultant and broker, I am a big supporter of the franchise concept ownership. If you have a good franchise brokerage system, the resources and skills to succeed, it can be a great thing. Regrettably though, not all systems work and you have to do your research carefully. If you are unsure about something, ask the question. In addition, one should have all agreements reviewed by a qualified franchise attorney.
Author bio: The author of this article has specialization in Franchise Concepts. His enormous experience is summed up in the article -Franchise Disclosure Document brings the master plans for the Franchise Opportunities'. Along with this he also provides somekeyword, franchise development and brokerage services to both individuals and franchise systems.
Read more: somekeyword
They were willing to review their process and see if my franchise research could be of any help.
I reviewed certain preliminary information, their FDD (somekeyword), and their marketing material. I took interview of different key personnel, their validation process and also social media presence for strategic business planning.
I quickly concluded that we had some raw material to carve a plan before marketing the brand. On the client's request, I made an effective proposal and forwarded it to the client for review. This is what somekeyword services is all about.
It was immediately rejected as not unnecessary information. They stated re-evaluation on their model was not required at all as everything was fine. Their intention was just to SELL, SELL and SELL.
Now, you my not consider there wasn't a problem with franchise system. The franchise was minting money. Their locations were successful and their franchisees were happy. In fact, the client was somewhat held back by the franchise consulting system fees. Not that I cannot be responsive to costs, but I need to make a living. What I found disconcerting was their mindset because of the answer being sales, particularly given a few concerns I had mentioned to them-
The first problem was that their FDD lacked key elements. It did not have all the required disclosures, items and list of franchisees. What this means is the document was unenforceable. While I am NOT an attorney, I did advise them to get it reviewed. If you have an unenforceable document, it will have no value. If a franchise took legal action, they win and the franchise research takes both a financial hit and a blow to the value of the brand.
The second problem was the lack of defined process, no adequate distribution channels for their inventory, no unique selling points and no branding strategy. While they had some brand recognition in their local markets; if they took the system to California, New York and other places, there was nothing to make it stand out or DIFFERENTIATE themselves from competitive businesses. In addition, without a clearly defined system, which is one of the most important benefits to a franchise, what is the value? Why to invest in it?
While somekeyword can mean different things depending on the expertise provided; in this case, it was clear. As this franchise model appeared to be successful, they were not in the position to sell the model. In fact, given the status of the FDD and Franchise Agreement, they were exposing themselves to potential liability.
In this instance, I told the franchise consulting services that I could not work with them in the present situation. While in most cases, sales can solve A LOT of the problems in a business. In this direction, franchise sales would have a negative impact.
As a franchise consultant and broker, I am a big supporter of the franchise concept ownership. If you have a good franchise brokerage system, the resources and skills to succeed, it can be a great thing. Regrettably though, not all systems work and you have to do your research carefully. If you are unsure about something, ask the question. In addition, one should have all agreements reviewed by a qualified franchise attorney.
Author bio: The author of this article has specialization in Franchise Concepts. His enormous experience is summed up in the article -Franchise Disclosure Document brings the master plans for the Franchise Opportunities'. Along with this he also provides somekeyword, franchise development and brokerage services to both individuals and franchise systems.
Read more: somekeyword
Buying a Franchise - Tips from an MBA Franchise attorney
Buying a Franchise - Tips from an MBA Franchise attorney and Former Franchise Owner
BUYING A FRANCHISE VERSUS STARTING AN INDEPENDENT BUSINESS
As a franchise attorney who has owned and operated a successful franchise, I can say buying a franchise represents a different approach to starting a business. Millions of people dream about owning their own business. Having the independence that being your own boss brings, the security that no one can fire you, hopefully enjoying a good income - and for the most successful - the accumulation of wealth and prosperity.ty.
Unfortunately, the cards are stacked against a new small business making it big - or making it at all. An endless stream of problems makes competition from large, sophisticated chains just too intense. Most new start-ups end as failures.
Buying a franchise business opportunity may help level the playing field. The U.S. Department of Commerce claims a franchise opportunity is "-the best chance to compete with giant companies that dominate the marketplace." Some statistics are impressive: it is said over 40% of all U.S. retail sales are through franchised establishments. Giants like McDonalds, KFC, 7-Eleven, H&R Block and Radio Shack are familiar, household franchise names that people think about, and franchises are available in a wide range of industries.
A CHANCE TO GET RICH, BUT ALSO A CHANGE TO GET STUNG
Just as franchising represents a chance to get rich, it's also a chance to get stung. Everyone knows the big blue-chip franchise names like McDonalds, KFC, Radio Shack, etc. But they're the exception and not the rule. Many franchise owner wannabes sign on with far smaller, lesser-known or unknown names that may not have a clue about helping operators make money.Regrettably too many over-eager, first-time franchise buyers leap into buying a franchise without using a franchise attorney who understands the in's and out's of franchise relationships, the viability of the industry or company under consideration, and the long-term legal consequences of the franchise contract they are signing.
FRANCHISE DUE DILLIGENCE
Fortunately, with proper planning, research, investigation and sound franchise advice, these risks can be minimized with the proper franchise due diligence and professional advice. Don't wait until you've signed the franchise contract to begin this process. By then, the window of franchise agreement negotiation has slammed shut and it's usually too late to do anything.Using a somekeyword early on is the proper starting point. But don't use any franchise attorney - find one who also has an MBA and you've narrowed the field considerably. You can Google the search term MBA franchise attorney. Now you're dealing with someone who understands both the legal and business issues in buying a franchise. Good job, but don't stop here. You can narrow the field even more by finding a franchise attorney, with an MBA, who has also owned a franchise before. Buying a franchise advice is incredibly more meaningful when it comes from a former, successful franchise owner - as opposed to someone who never operated a franchise before. Try finding another franchise attorney who has owned a successful franchise.
AVOID ILLEGAL DISGUISED FRANCHISES CALLED A LICENSE
An increasing number of unscrupulous companies that don't fly straight or play by the rules are selling licenses that are really disguised, illegal franchises. Instead of providing a comprehensive FDD Franchise Disclosure Document that meets stringent federal and state legal requirements, these companies go a different route. They present a -license agreement- or a distributor agreement- with no disclosures, no audited financial statements, no background of the principals, no investment requirement details, etc. The franchise versus license situation is one that I often consult on as a franchise expert, after clients have lost their life savings, retirement accounts, etc. investing in a license or distributorship that is an illegal disguised franchise. Don't go down this dangerous path.
DEVELOP A FRANCHISE EXIT STRATEGY
Finally, and this applies to franchise investments as well as investing in any business venture, develop a plan to succeed but also an exit plan that minimizes financial risk in case things don't work out. Both plans need to be developed before the investment is made and contracts are signed. Be sure your franchise negotiations reflect this planning aspect. Don't wait until problems develop to begin thinking about a franchise exit strategy, like how can I cancel my franchise agreement or get out of my lease. By then it's usually too little, too late.
Kevin B. Murphy, Mr. Franchise, is a somekeyword based in San Francisco with a 30-year practice devoted exclusively to franchise law. For 20-years he has been a testifying franchise expert witness in court and arbitration proceedings, giving him vast experience in knowing where the bullets come from in franchise litigation. For 17-years, Mr. Murphy has been an Approved MCLE (Minimum Continuing Legal Education) Provider by the State Bar of California, teaching franchise law, franchising vs. licensing (franchise vs. license), and intellectual property courses to California somekeyword. In 2002 -2003 he started, operated and sold a very successful franchise. Mr. Franchise holds degrees in business administration and law from the University of San Francisco and an MBA from San Francisco State University. He is the author of over 50 franchise publications, including 4 books on franchising and one book on trade secrets.
BUYING A FRANCHISE VERSUS STARTING AN INDEPENDENT BUSINESS
As a franchise attorney who has owned and operated a successful franchise, I can say buying a franchise represents a different approach to starting a business. Millions of people dream about owning their own business. Having the independence that being your own boss brings, the security that no one can fire you, hopefully enjoying a good income - and for the most successful - the accumulation of wealth and prosperity.ty.
Unfortunately, the cards are stacked against a new small business making it big - or making it at all. An endless stream of problems makes competition from large, sophisticated chains just too intense. Most new start-ups end as failures.
Buying a franchise business opportunity may help level the playing field. The U.S. Department of Commerce claims a franchise opportunity is "-the best chance to compete with giant companies that dominate the marketplace." Some statistics are impressive: it is said over 40% of all U.S. retail sales are through franchised establishments. Giants like McDonalds, KFC, 7-Eleven, H&R Block and Radio Shack are familiar, household franchise names that people think about, and franchises are available in a wide range of industries.
A CHANCE TO GET RICH, BUT ALSO A CHANGE TO GET STUNG
Just as franchising represents a chance to get rich, it's also a chance to get stung. Everyone knows the big blue-chip franchise names like McDonalds, KFC, Radio Shack, etc. But they're the exception and not the rule. Many franchise owner wannabes sign on with far smaller, lesser-known or unknown names that may not have a clue about helping operators make money.Regrettably too many over-eager, first-time franchise buyers leap into buying a franchise without using a franchise attorney who understands the in's and out's of franchise relationships, the viability of the industry or company under consideration, and the long-term legal consequences of the franchise contract they are signing.
FRANCHISE DUE DILLIGENCE
Fortunately, with proper planning, research, investigation and sound franchise advice, these risks can be minimized with the proper franchise due diligence and professional advice. Don't wait until you've signed the franchise contract to begin this process. By then, the window of franchise agreement negotiation has slammed shut and it's usually too late to do anything.Using a somekeyword early on is the proper starting point. But don't use any franchise attorney - find one who also has an MBA and you've narrowed the field considerably. You can Google the search term MBA franchise attorney. Now you're dealing with someone who understands both the legal and business issues in buying a franchise. Good job, but don't stop here. You can narrow the field even more by finding a franchise attorney, with an MBA, who has also owned a franchise before. Buying a franchise advice is incredibly more meaningful when it comes from a former, successful franchise owner - as opposed to someone who never operated a franchise before. Try finding another franchise attorney who has owned a successful franchise.
AVOID ILLEGAL DISGUISED FRANCHISES CALLED A LICENSE
An increasing number of unscrupulous companies that don't fly straight or play by the rules are selling licenses that are really disguised, illegal franchises. Instead of providing a comprehensive FDD Franchise Disclosure Document that meets stringent federal and state legal requirements, these companies go a different route. They present a -license agreement- or a distributor agreement- with no disclosures, no audited financial statements, no background of the principals, no investment requirement details, etc. The franchise versus license situation is one that I often consult on as a franchise expert, after clients have lost their life savings, retirement accounts, etc. investing in a license or distributorship that is an illegal disguised franchise. Don't go down this dangerous path.
DEVELOP A FRANCHISE EXIT STRATEGY
Finally, and this applies to franchise investments as well as investing in any business venture, develop a plan to succeed but also an exit plan that minimizes financial risk in case things don't work out. Both plans need to be developed before the investment is made and contracts are signed. Be sure your franchise negotiations reflect this planning aspect. Don't wait until problems develop to begin thinking about a franchise exit strategy, like how can I cancel my franchise agreement or get out of my lease. By then it's usually too little, too late.
Kevin B. Murphy, Mr. Franchise, is a somekeyword based in San Francisco with a 30-year practice devoted exclusively to franchise law. For 20-years he has been a testifying franchise expert witness in court and arbitration proceedings, giving him vast experience in knowing where the bullets come from in franchise litigation. For 17-years, Mr. Murphy has been an Approved MCLE (Minimum Continuing Legal Education) Provider by the State Bar of California, teaching franchise law, franchising vs. licensing (franchise vs. license), and intellectual property courses to California somekeyword. In 2002 -2003 he started, operated and sold a very successful franchise. Mr. Franchise holds degrees in business administration and law from the University of San Francisco and an MBA from San Francisco State University. He is the author of over 50 franchise publications, including 4 books on franchising and one book on trade secrets.
Saturday, July 28, 2012
Tips to Buying a Franchise
Buying a franchise is almost like completing a building that someone else has left incomplete. You have the foundation, you need to invest some time and money in completing it based on the original design. Of course you can build in your own interpretations of the design. A franchise can be turned into a great success with the help of the existing marketing and operational support.
The process of selecting and buying a franchise is not difficult for someone who knows exactly what he wants and what he can pay. However, many people hire a franchise lawyer to help to ensure that they go into business aware of all the fine print. There are some key things to keep in mind as well, when making the purchase. This article will briefly guide you through them.
Choose a business you will like and can afford
Of course this should be obvious without it being said. But people often don't realize that they are more likely to be successful in their business venture if they enjoy what they are doing. Your business is going to become a big part of your life. You have to spend time on it. Why take up something you are likely to find uninspiring later?
Moreover, make sure that you know your figures well when you buy. If you think you need an accountant, hire one. Take his or her advice and work out how much you may have to borrow over and above what you can already invest. Find out how long it is likely to take to take for it to start giving you proportionate returns.
Know the program well
Ask the franchiser all the tough questions. Have there been any lawsuits involving them? Find out the background of the business you will be funding. Read carefully through the offering circular. Compare the circulars from a number of prospective franchisers. Find out about the upfront fees and the ongoing charges that you have to pay. Ongoing charges are typically from royalties and the costs of advertising.
Other franchisees are your best sources of information
They will be more than happy to help you, usually. Ask them what they like or don't like about the business. They may take you into their store to examine the stores records of profit and loss. Look at the products for yourself. They are likely to tell you the truth about how they bought their business. From their experiences you can gauge what you can expect out of your business as well.
Know everything about the agreement
You cannot be forced into signing the franchise agreement. By federal law, a franchiser is compelled to wait for ten business days at least before you are expected to sign it. In the meantime, read the document thoroughly. At this stage it helps to hire a specialist lawyer to look at the program from a legal perspective. You can even change the terms of the contract and they will help you through the process of buying a franchise. Chicago has no shortage of legal professionals who will work together with you to give your venture a head start.
somekeyword - Do you need legal advice with buying a franchise? Chicago residents go to the specialized lawyers at Franlaw. They provide an advice not only with purchasing a new franchise, but in selling an existing one.
The process of selecting and buying a franchise is not difficult for someone who knows exactly what he wants and what he can pay. However, many people hire a franchise lawyer to help to ensure that they go into business aware of all the fine print. There are some key things to keep in mind as well, when making the purchase. This article will briefly guide you through them.
Choose a business you will like and can afford
Of course this should be obvious without it being said. But people often don't realize that they are more likely to be successful in their business venture if they enjoy what they are doing. Your business is going to become a big part of your life. You have to spend time on it. Why take up something you are likely to find uninspiring later?
Moreover, make sure that you know your figures well when you buy. If you think you need an accountant, hire one. Take his or her advice and work out how much you may have to borrow over and above what you can already invest. Find out how long it is likely to take to take for it to start giving you proportionate returns.
Know the program well
Ask the franchiser all the tough questions. Have there been any lawsuits involving them? Find out the background of the business you will be funding. Read carefully through the offering circular. Compare the circulars from a number of prospective franchisers. Find out about the upfront fees and the ongoing charges that you have to pay. Ongoing charges are typically from royalties and the costs of advertising.
Other franchisees are your best sources of information
They will be more than happy to help you, usually. Ask them what they like or don't like about the business. They may take you into their store to examine the stores records of profit and loss. Look at the products for yourself. They are likely to tell you the truth about how they bought their business. From their experiences you can gauge what you can expect out of your business as well.
Know everything about the agreement
You cannot be forced into signing the franchise agreement. By federal law, a franchiser is compelled to wait for ten business days at least before you are expected to sign it. In the meantime, read the document thoroughly. At this stage it helps to hire a specialist lawyer to look at the program from a legal perspective. You can even change the terms of the contract and they will help you through the process of buying a franchise. Chicago has no shortage of legal professionals who will work together with you to give your venture a head start.
somekeyword - Do you need legal advice with buying a franchise? Chicago residents go to the specialized lawyers at Franlaw. They provide an advice not only with purchasing a new franchise, but in selling an existing one.
The Ins and Outs of Purchasing a Beauty Franchise for
The Ins and Outs of Purchasing a Beauty Franchise for Sale
There is an obligation for franchises to carry out services for which the trademark has been famously and prominently noted for, and standardization is a noted requirement. When you have bought a franchise beauty salon, the business has to display and make visible the franchisor's trademark, logos and signs. Employees of a franchise have to wear a particular colour and designed uniform and the service offered has to be followed in accordance. As opposed to being in a retail business, franchisees are not in full control of a franchise. Supplies and equipment are purchased directly from the franchisor at a good price or can be outsourced on the recommendation of the franchisor. A laser machine for instance can be identified easily by the trademark when it comes from a stipulated supplier.
The license for the franchise needs to be carefully negotiated by the franchisee, and an effective marketing plan also needs to be done, there should be no hidden fees as the fees must be fully disclosed when buying a somekeyword and before the license is granted the working capital and start up costs need to be verified. If the beauty franchise is working according to plan, you need to be assured that no other additional franchises of this nature will have access in your territory. The franchisee should in all aspects be protected by the franchisor with regards to trademark infringements and the franchisee should operate as an independent business. During negotiations a franchise attorney has to assist. In instances where the training sessions are too short as only part of the costs are covered in the initial fee the franchisee will have to carry through training should it be required due to complicated equipment. On the other hand there are corporate universities that are able to train franchise employees online in addition to supplying email access, sales literature and training literature. Bear in mind that in the event of a dispute there is little or no recourse to legal intervention as franchise agreements have no warranties or guarantees. When buying a franchise you need to be aware that there are risks, and that there is no guarantee of the franchise being a success or that the business being profitable, which means that the franchisor is protected from any lawsuits due to the contract being non negotiable.le.
At the sole option of the franchisor, contract is renewable. And when you sign the agreement, the franchisors mandate under what law and where any dispute shall be litigated. For example franchising is regulated in Australia by a Code of Conduct under the franchising trade practices act which is a mandatory code of conduct.
Claude Bernard has big experience as an author on the topic like beauty franchise for sale. He contributes his knowledge on fashion and life style. On demand of web publication he writes content for ellabachefranchise.com.au in extra.
There is an obligation for franchises to carry out services for which the trademark has been famously and prominently noted for, and standardization is a noted requirement. When you have bought a franchise beauty salon, the business has to display and make visible the franchisor's trademark, logos and signs. Employees of a franchise have to wear a particular colour and designed uniform and the service offered has to be followed in accordance. As opposed to being in a retail business, franchisees are not in full control of a franchise. Supplies and equipment are purchased directly from the franchisor at a good price or can be outsourced on the recommendation of the franchisor. A laser machine for instance can be identified easily by the trademark when it comes from a stipulated supplier.
The license for the franchise needs to be carefully negotiated by the franchisee, and an effective marketing plan also needs to be done, there should be no hidden fees as the fees must be fully disclosed when buying a somekeyword and before the license is granted the working capital and start up costs need to be verified. If the beauty franchise is working according to plan, you need to be assured that no other additional franchises of this nature will have access in your territory. The franchisee should in all aspects be protected by the franchisor with regards to trademark infringements and the franchisee should operate as an independent business. During negotiations a franchise attorney has to assist. In instances where the training sessions are too short as only part of the costs are covered in the initial fee the franchisee will have to carry through training should it be required due to complicated equipment. On the other hand there are corporate universities that are able to train franchise employees online in addition to supplying email access, sales literature and training literature. Bear in mind that in the event of a dispute there is little or no recourse to legal intervention as franchise agreements have no warranties or guarantees. When buying a franchise you need to be aware that there are risks, and that there is no guarantee of the franchise being a success or that the business being profitable, which means that the franchisor is protected from any lawsuits due to the contract being non negotiable.le.
At the sole option of the franchisor, contract is renewable. And when you sign the agreement, the franchisors mandate under what law and where any dispute shall be litigated. For example franchising is regulated in Australia by a Code of Conduct under the franchising trade practices act which is a mandatory code of conduct.
Claude Bernard has big experience as an author on the topic like beauty franchise for sale. He contributes his knowledge on fashion and life style. On demand of web publication he writes content for ellabachefranchise.com.au in extra.
Friday, July 27, 2012
Report and protect yourself from Franchise Scams
Franchising is a term very similar to licensing. It is certainly different from the term licensing. The term somekeyword means an authority is given to the other person or organization to sell their products in exchange of a payment. Scamming is always associated with the franchise business. Franchising is a lucrative business opportunity to expand and grow the business. Unfortunately those who use fraudulent activities still remain in the franchise business. In this article I will discuss about how to identify and report franchise scams. After decades of rules and regulations, the dangers of getting trapped in the franchise business are not less. There are several standards set such as you can easily contact Better Business Bureau or the Consumer Affairs Branch of your state attorneys general office. Request the copy of the Universal Franchise Offering Circular. The Federal Trade Commission mandates that every franchisor must have the Universal Franchise Offering Circular to the potential franchisees. Hire a knowledgeable and experienced franchise attorney. It will become easy for you to sue the fraud franchisor with the help of a franchise attorney. Instruct your attorney to verify the Universal Franchise Offering Circular carefully and identify the threats. Also keep a copy of the Universal Franchise Offering Circular in order to give it as a proof in future. Report the fraudulent franchises immediately to the Better Business Bureau. This will help other franchisees to sue the fraud franchisors and will give them several hints to be save from franchise scams. The potential would be franchisees should research properly in advance. You can also check the Franchise Disclosure Agreement. A franchise is only as good as its brand name which eventually tells us about the performance and the reputation of the business. Another sign of good franchise is broad recruitment process which at some point replaces the selling process to gain the entry of good prospects to enter in the firm. When you are looking for investment in a good franchise, then one of the good indicators is to look after number of years the firm has been running. Don't invest in a franchise which has inexperienced management team members. Each member should have the basic understanding of how to operate and manage the firm. The financial condition is very important for this you will get a glimpse in the Franchise Disclosure Agreement and you can check the financial statements of last five years. Litigation is the main thing to judge a franchise. If a company is having a lawsuit against other franchisees about mishandling the brand, not using an effective quality or some other issue. Then it is fine but if a firm has a lawsuit going against it. Then it is wise not to invest in such franchisees. If it is awarded by recognized authorities based upon its financial viability, training and support system maturity. It is undoubtedly a good indicator for you to invest in the franchise.
Thus it is much better to research in advance and through a careful selection you can be saved from such scams very smoothly.
Thus it is much better to research in advance and through a careful selection you can be saved from such scams very smoothly.
Plan Well Before You Buy A Franchise
A franchise is a legal agreement between the franchisor and the franchisee where one organization with a product or trademark grants certain rights and information about operating a business to an independent business owner. The franchisor can provide support in marketing and also setting up the business for the new franchise owner. In return, the franchisee pays a fee and royalties to the franchisor. There can be a lot of variation in the fee and royalties depending upon one organization to another, so it is best to do some research work before you get the franchise business agreement. At this stage, you can also take help from a franchise lawyer that can help you negotiate the contracts.
If you're planning to start a business, then buying a franchise can be a good option as franchise is a proven business model. So you can spend some time on perfecting your operation so that it will give a rapid growth and stability to your organization. If you are looking for somekeyword, then there are few basic things of franchising you should know such as how franchisee functions and how franchisor-franchisee relation can impact on your business.
Choosing the correct franchise can help you to succeed in your business. You should choose a franchise that you are partially familiar with so that you can understand the business better. For example, if you have a prior experience in textile sales, then there is a very little point in choosing a somekeyword. Beforehand experience in the area of the franchise is always making your business better as you will able to innovate, implement and understand marketing strategies for your business. However, in some cases even without experience you can also make your business successful if you have loads of passion and enthusiasm. You can also take help from the internet by going to various websites and blogs where you can get lots of information and can read various experiences of franchisers that can help you to understand your business better.
After deciding the type of franchise you want, you can contact the franchisor to buy a franchise. It is always better to take advice from a franchise attorney or lawyer so that you understand terms and conditions and legal works about the business.
You can easily find unlimited options to buy a franchise by going to the internet. There are many websites that provide information regarding different franchise opportunities. These websites have franchise directories with the listing of all the businesses that are interested in selling franchise.
A franchise opportunity is an easy way to start a business; however one should also remember that all the business ventures always carry risks. So before you become a franchisee, make sure that you have a proper plan.
About The Author:
With over 9 years experience in both franchise development and sales, Elton Williams is has a broad amount of experience in the franchise industry. Based in Brisbane Australia, he has assisted a number of brands to grow from a small one shop enterprise to a mutli - outlet franchise system. He is associated with FranchiseExpo, Australia's most respected source of somekeyword, top somekeyword and other non-franchise business opportunities for sale.
If you're planning to start a business, then buying a franchise can be a good option as franchise is a proven business model. So you can spend some time on perfecting your operation so that it will give a rapid growth and stability to your organization. If you are looking for somekeyword, then there are few basic things of franchising you should know such as how franchisee functions and how franchisor-franchisee relation can impact on your business.
Choosing the correct franchise can help you to succeed in your business. You should choose a franchise that you are partially familiar with so that you can understand the business better. For example, if you have a prior experience in textile sales, then there is a very little point in choosing a somekeyword. Beforehand experience in the area of the franchise is always making your business better as you will able to innovate, implement and understand marketing strategies for your business. However, in some cases even without experience you can also make your business successful if you have loads of passion and enthusiasm. You can also take help from the internet by going to various websites and blogs where you can get lots of information and can read various experiences of franchisers that can help you to understand your business better.
After deciding the type of franchise you want, you can contact the franchisor to buy a franchise. It is always better to take advice from a franchise attorney or lawyer so that you understand terms and conditions and legal works about the business.
You can easily find unlimited options to buy a franchise by going to the internet. There are many websites that provide information regarding different franchise opportunities. These websites have franchise directories with the listing of all the businesses that are interested in selling franchise.
A franchise opportunity is an easy way to start a business; however one should also remember that all the business ventures always carry risks. So before you become a franchisee, make sure that you have a proper plan.
About The Author:
With over 9 years experience in both franchise development and sales, Elton Williams is has a broad amount of experience in the franchise industry. Based in Brisbane Australia, he has assisted a number of brands to grow from a small one shop enterprise to a mutli - outlet franchise system. He is associated with FranchiseExpo, Australia's most respected source of somekeyword, top somekeyword and other non-franchise business opportunities for sale.
Thursday, July 26, 2012
Know your legal rights! Contact a Franchise Attorney Now!
Some of the largest and most profitable businesses in America are franchises. The concept is simple. An established business wants to expand, but its owners don't want to invest the time or money it takes to open a new store. If their business model is solid and there is interest from investors, they can grant them the right to offer products or services under their trade name or trademark. In return, the franchisor will charge franchise fees, which are typically a fixed percentage of annual revenues. The franchisee may also have to kick in for advertising costs, especially when the company is a national brand.
For example, a huge fast food chain like McDonald's charges much more in franchise fees than a new franchise, since their brand name and proven products virtually guarantee a steady stream of customers. The franchisee also has to pay for startup costs, which include construction and equipment costs. What does the new owner get for his investment?
Profitable franchisors have proven business models that have been successfully implemented thousands of times in locations around the world. For example, McDonald's has over 33,000 restaurants in 119 countries. Their franchises serve over 68 million people on a daily basis! In other words, they feed the equivalent of the world's population every 100 days!
Of course, most franchises are not as popular as McDonald's. Some have only a few stores in regional locations. Those that are interested in buying or building an existing franchise should consider the costs and benefits. Yes, a franchise is generally less risky than starting a new business from scratch, since it is based on a proven idea. But there may also be less room for profit because franchise fees must be remitted to the franchisor. There is also less freedom.
If McDonald's instructs its franchisees to sell a new hamburger, they must abide, no questions asked. However, the owner will not be responsible for training and will receive help and support from the franchisor. After all, it is in their best interest to see that the new owner is successful. Not only will they receive more revenues, but that successful owner is more likely to open more franchises. In fact, many McDonald's owners operate multiple restaurants and do quite well for themselves.
But before you jump in headfirst, it is important to have an experienced franchise lawyer review the business contracts. Because their companies are based on them, most franchisors have iron-clad contracts that clearly delineate the terms of trading between the two parties. The terms of these agreements override any other arrangements. Therefore, it is imperative to have a franchise attorney peruse them before you sign.
No matter how reputable a franchisee may be, many business owners have be burned by agreeing to terms and conditions of contracts they didn't fully understand. Don't depend on your instincts! Business dealing are complicated enough without expert advice and guidance from a qualified franchise lawyer.
If you are thinking about buying or building a franchise in the State of Florida, contact Zarco Einhorn Salkowski & Brito, P.A. today! The firm handles all aspects of the franchise process, including but not limited to contract law. They also help businesses establish new franchises, which may involve licensing and distribution law. When there is a complex contract dispute, a franchise attorney from the firm will work to resolve the matter as quickly and as quietly as possible.
For more information about somekeyword and somekeyword visit .
For example, a huge fast food chain like McDonald's charges much more in franchise fees than a new franchise, since their brand name and proven products virtually guarantee a steady stream of customers. The franchisee also has to pay for startup costs, which include construction and equipment costs. What does the new owner get for his investment?
Profitable franchisors have proven business models that have been successfully implemented thousands of times in locations around the world. For example, McDonald's has over 33,000 restaurants in 119 countries. Their franchises serve over 68 million people on a daily basis! In other words, they feed the equivalent of the world's population every 100 days!
Of course, most franchises are not as popular as McDonald's. Some have only a few stores in regional locations. Those that are interested in buying or building an existing franchise should consider the costs and benefits. Yes, a franchise is generally less risky than starting a new business from scratch, since it is based on a proven idea. But there may also be less room for profit because franchise fees must be remitted to the franchisor. There is also less freedom.
If McDonald's instructs its franchisees to sell a new hamburger, they must abide, no questions asked. However, the owner will not be responsible for training and will receive help and support from the franchisor. After all, it is in their best interest to see that the new owner is successful. Not only will they receive more revenues, but that successful owner is more likely to open more franchises. In fact, many McDonald's owners operate multiple restaurants and do quite well for themselves.
But before you jump in headfirst, it is important to have an experienced franchise lawyer review the business contracts. Because their companies are based on them, most franchisors have iron-clad contracts that clearly delineate the terms of trading between the two parties. The terms of these agreements override any other arrangements. Therefore, it is imperative to have a franchise attorney peruse them before you sign.
No matter how reputable a franchisee may be, many business owners have be burned by agreeing to terms and conditions of contracts they didn't fully understand. Don't depend on your instincts! Business dealing are complicated enough without expert advice and guidance from a qualified franchise lawyer.
If you are thinking about buying or building a franchise in the State of Florida, contact Zarco Einhorn Salkowski & Brito, P.A. today! The firm handles all aspects of the franchise process, including but not limited to contract law. They also help businesses establish new franchises, which may involve licensing and distribution law. When there is a complex contract dispute, a franchise attorney from the firm will work to resolve the matter as quickly and as quietly as possible.
For more information about somekeyword and somekeyword visit .
How to Franchise Your Business
Knowing How to Franchise Your Business is essential. There are many different types of franchises which a business owner may opt for. You will want to consider thebest opportunities that match your lifestyle,business and financial goals. Without know how to franchise your business you could spend a tremendous amount of time and effort trying to find the perfect franchise, just to never find it.
How franchising works:
A franchise fee is paid by the franchisee is paid to a franchisor in return for rights to open and operate a business under a franchise trademark and for training in how to operate a business. An initial franchise fee is paid by a franchiser for both the trademark and the training. In most cases once the franchise is started the franchises will continue to pay a royalty fee which is typically four to 10 percent of the sales performed by the franchise and for continued support and training.
When starting a franchise the franchisee is responsible for all the required capital to start the business and assumes all the risk for the future.
How to franchise your business:
Get a franchise consultant. This is the best beat when considering franchising your existing business or opening a franchise. The franchise consultant will devise a plan for you which ensures that you are going in the right direction.
Get a franchise attorney. There are many legal and business documents which you will be responsible for which are necessary for potential franchises, state and federal government entities.
Get to marketing. Once you have decided to franchise the next step is to get investors to come aboard.This is another area where your franchise consultant will help you. You can also read other franchise prospectuses to se their pitch to the marketplace to get ideas. You must, however, follow FTC rules in the creation of a prospectus.
Redefine your role. You will now be the CEO of the franchise and you will need to bring on a new mindset. Your role is much more now. It includes building excitement among other potential franchisees. You need to direct your focus towards marketing activities, attending events, supervising the UFOC and building connections.
Basic tenant of franchises include:
Credibility: Credibility is vital in order to gain franchisees.Uniqueness: Your must have some sort of uniqueness in your franchise.Straightforward operations. You need to have a business and system model that is fairly easy for the new franchisee to learn. Adaptability and demand. You will need sufficient demand for your product in a number of different areas.ROI. It is important that after paying the franchise fees that there is sufficient return on investment.Strength of management. The team of the franchise is crucial and a strong management team must be in place.
A franchise consultant / specialist will help you with all the information and direction as well as the process of becoming a franchise that is necessary. From the initial consultation service / appointment to the marketing plan, sales campaign and so on. It is essential that things be done properly and that you have a good, reputable consultant on your side. somekeyword the proper information for the best opportunities.
How franchising works:
A franchise fee is paid by the franchisee is paid to a franchisor in return for rights to open and operate a business under a franchise trademark and for training in how to operate a business. An initial franchise fee is paid by a franchiser for both the trademark and the training. In most cases once the franchise is started the franchises will continue to pay a royalty fee which is typically four to 10 percent of the sales performed by the franchise and for continued support and training.
When starting a franchise the franchisee is responsible for all the required capital to start the business and assumes all the risk for the future.
How to franchise your business:
Get a franchise consultant. This is the best beat when considering franchising your existing business or opening a franchise. The franchise consultant will devise a plan for you which ensures that you are going in the right direction.
Get a franchise attorney. There are many legal and business documents which you will be responsible for which are necessary for potential franchises, state and federal government entities.
Get to marketing. Once you have decided to franchise the next step is to get investors to come aboard.This is another area where your franchise consultant will help you. You can also read other franchise prospectuses to se their pitch to the marketplace to get ideas. You must, however, follow FTC rules in the creation of a prospectus.
Redefine your role. You will now be the CEO of the franchise and you will need to bring on a new mindset. Your role is much more now. It includes building excitement among other potential franchisees. You need to direct your focus towards marketing activities, attending events, supervising the UFOC and building connections.
Basic tenant of franchises include:
Credibility: Credibility is vital in order to gain franchisees.Uniqueness: Your must have some sort of uniqueness in your franchise.Straightforward operations. You need to have a business and system model that is fairly easy for the new franchisee to learn. Adaptability and demand. You will need sufficient demand for your product in a number of different areas.ROI. It is important that after paying the franchise fees that there is sufficient return on investment.Strength of management. The team of the franchise is crucial and a strong management team must be in place.
A franchise consultant / specialist will help you with all the information and direction as well as the process of becoming a franchise that is necessary. From the initial consultation service / appointment to the marketing plan, sales campaign and so on. It is essential that things be done properly and that you have a good, reputable consultant on your side. somekeyword the proper information for the best opportunities.
Wednesday, July 25, 2012
How to Franchise a Business - Tips from an MBA
How to Franchise a Business - Tips from an MBA Franchise attorney and Former Franchise Owner
WHY COMPANIES FRANCHISE A BUSINESS MODEL
Imagine opening 100 new business locations without having to foot any bills for real estate, equipment and build out costs or taking on any risk. Even more, imagine managers running all those locations, which are just as committed to growing the company as you - and not having to pay them a dime. In fact they pay you money for the right to operate your business model.
For many companies, creating a franchise program is a sensible way to achieve rapid, profitable growth without giving up any control or ownership. Going from a single location to a dozens or even hundreds is possible and well-documented because franchise owner-investors put up all investment capital, shoulder all risk and assume all day-to-day operating responsibilities. It's expansion, using OPM - Other People's Money.ey.
ENTERING A NEW BUSINESS
The bad news is a company planning to franchise must realize it is entering a new business, offering an entirely different service (training & support) to entirely new customers (business owner-operators). This new business requires different skills, abilities and expertise. In the new business of franchising, it is critical to develop effective evaluation, documentation, mentoring, training and consulting skills.
THE FRANCHISE FEASIBILITY ANALYSIS PHASE
An indispensable step before any franchise a business development program gets underway is an analysis of the concept and business model. Has the concept been sufficiently proven in the marketplace? How profitable are existing prototypes or company-owned outlets? Franchising will not solve existing problems, it will only intensify them. Franchising is not a way to raise capital, get rich quickly or expand a business with existing problems. There must be sufficient profitability in the business model so that royalty and other payments can be made and leave the franchise owner with a sufficient profit.
THE FRANCHISE STRATEGIC PLANNING PHASE
A successful franchise development program begins with a solid plan - a foundation for franchising. Often there is little or no strategic planning with new companies entering the franchise industry. This is because they utilize the services of a franchise consulting firm or franchise attorney, where little or no attention is paid to critical strategic planning issues. What is called for is not a traditional business plan, a rather thick document that normally does nothing but collect dust in the dark drawer of someone's desk. More important than a business plan is a strategic plan - a vision of the franchise program together with a limited number of concrete, achievable action steps.
THE FRANCHISE DOCUMENTATION PHASE
If your company made doing a good job at the planning stage its number one priority, franchise documentation goals will be apparent. Proprietary assets (like recipes, formulas, methods, branding, operating techniques and customer information) need to be identified and protected. A catchy and appropriate name, logo and tag lines are registered as trademarks or service marks.
A franchise operations manual and franchise training program are developed, often from scratch, to impart business day-to-day operating skills to franchise owners as well as ensure uniformity of products and services. The franchise operations manual and training program curriculum must be drafted or edited with a particular focus. Certain topics, chapters and policies used in manuals for company-owned locations, for example, are entirely inappropriate in a franchise environment, creating significant franchise liability issues.
Finally, and only after all of the above are underway, a FDD Franchise Disclosure Document, similar to a securities (stock offering) prospectus, is prepared by a competent somekeyword. Doing it correctly and with a balanced, fair perspective can save going to the courtroom later. Using a boilerplate or online FDD template will almost certainly guarantee a visit to the courtroom down the road. Since these visits cost hundreds of thousands of dollars and up, they are not cheap and far outweigh the cost of doing it right to begin with.
Training the Franchise Management Team
When the documentation phase is over, momentum gathers as the exciting implementation phase begins. This is where the sparks begin to fly as franchises are sold, new franchise owners are taught and trained, and opening assistance is provided. It's also when most new franchise companies make serious mistakes that haunt them for years or even decades to come.
The reason: most new start-up franchise management teams have not been trained in how to properly operate their new business, nor can they afford to hire a six-figure, salaried person with franchise management experience. A more practical solution: provide new franchise companies with in-depth franchise training instructional workshops as well as on-going, as-needed advice based. At Franchise Foundations, we offer this type of training and on-going support based on three decades of excellence and experience in franchise industry best practices.
Kevin B. Murphy, Mr. Franchise, is a somekeyword based in San Francisco with a 30-year practice devoted exclusively to franchise law. For 20-years he has been a testifying somekeyword expert witness in court and arbitration proceedings, giving him vast experience in knowing where the bullets come from in franchise litigation. In 2002 -2003 he started, operated and sold a very successful franchise. Mr. Franchise holds degrees in business administration and law from the University of San Francisco and an MBA from San Francisco State University. He is the author of over 50 publications, including 4 books on franchising and one book on trade secrets.
WHY COMPANIES FRANCHISE A BUSINESS MODEL
Imagine opening 100 new business locations without having to foot any bills for real estate, equipment and build out costs or taking on any risk. Even more, imagine managers running all those locations, which are just as committed to growing the company as you - and not having to pay them a dime. In fact they pay you money for the right to operate your business model.
For many companies, creating a franchise program is a sensible way to achieve rapid, profitable growth without giving up any control or ownership. Going from a single location to a dozens or even hundreds is possible and well-documented because franchise owner-investors put up all investment capital, shoulder all risk and assume all day-to-day operating responsibilities. It's expansion, using OPM - Other People's Money.ey.
ENTERING A NEW BUSINESS
The bad news is a company planning to franchise must realize it is entering a new business, offering an entirely different service (training & support) to entirely new customers (business owner-operators). This new business requires different skills, abilities and expertise. In the new business of franchising, it is critical to develop effective evaluation, documentation, mentoring, training and consulting skills.
THE FRANCHISE FEASIBILITY ANALYSIS PHASE
An indispensable step before any franchise a business development program gets underway is an analysis of the concept and business model. Has the concept been sufficiently proven in the marketplace? How profitable are existing prototypes or company-owned outlets? Franchising will not solve existing problems, it will only intensify them. Franchising is not a way to raise capital, get rich quickly or expand a business with existing problems. There must be sufficient profitability in the business model so that royalty and other payments can be made and leave the franchise owner with a sufficient profit.
THE FRANCHISE STRATEGIC PLANNING PHASE
A successful franchise development program begins with a solid plan - a foundation for franchising. Often there is little or no strategic planning with new companies entering the franchise industry. This is because they utilize the services of a franchise consulting firm or franchise attorney, where little or no attention is paid to critical strategic planning issues. What is called for is not a traditional business plan, a rather thick document that normally does nothing but collect dust in the dark drawer of someone's desk. More important than a business plan is a strategic plan - a vision of the franchise program together with a limited number of concrete, achievable action steps.
THE FRANCHISE DOCUMENTATION PHASE
If your company made doing a good job at the planning stage its number one priority, franchise documentation goals will be apparent. Proprietary assets (like recipes, formulas, methods, branding, operating techniques and customer information) need to be identified and protected. A catchy and appropriate name, logo and tag lines are registered as trademarks or service marks.
A franchise operations manual and franchise training program are developed, often from scratch, to impart business day-to-day operating skills to franchise owners as well as ensure uniformity of products and services. The franchise operations manual and training program curriculum must be drafted or edited with a particular focus. Certain topics, chapters and policies used in manuals for company-owned locations, for example, are entirely inappropriate in a franchise environment, creating significant franchise liability issues.
Finally, and only after all of the above are underway, a FDD Franchise Disclosure Document, similar to a securities (stock offering) prospectus, is prepared by a competent somekeyword. Doing it correctly and with a balanced, fair perspective can save going to the courtroom later. Using a boilerplate or online FDD template will almost certainly guarantee a visit to the courtroom down the road. Since these visits cost hundreds of thousands of dollars and up, they are not cheap and far outweigh the cost of doing it right to begin with.
Training the Franchise Management Team
When the documentation phase is over, momentum gathers as the exciting implementation phase begins. This is where the sparks begin to fly as franchises are sold, new franchise owners are taught and trained, and opening assistance is provided. It's also when most new franchise companies make serious mistakes that haunt them for years or even decades to come.
The reason: most new start-up franchise management teams have not been trained in how to properly operate their new business, nor can they afford to hire a six-figure, salaried person with franchise management experience. A more practical solution: provide new franchise companies with in-depth franchise training instructional workshops as well as on-going, as-needed advice based. At Franchise Foundations, we offer this type of training and on-going support based on three decades of excellence and experience in franchise industry best practices.
Kevin B. Murphy, Mr. Franchise, is a somekeyword based in San Francisco with a 30-year practice devoted exclusively to franchise law. For 20-years he has been a testifying somekeyword expert witness in court and arbitration proceedings, giving him vast experience in knowing where the bullets come from in franchise litigation. In 2002 -2003 he started, operated and sold a very successful franchise. Mr. Franchise holds degrees in business administration and law from the University of San Francisco and an MBA from San Francisco State University. He is the author of over 50 publications, including 4 books on franchising and one book on trade secrets.
Hiring the Right Franchise Lawyer
If your franchise business is in need of legal advice, then you will need to look into hiring a trustworthy and professional franchise lawyer to take care of all your legal duties. These lawyers are highly experienced in dealing with all the legal confusion that comes along with owning your own franchise so that you can take care of what really matters. When you are dealing with a difficult legal situation a franchising lawyer is able to assist you and offer helpful solutions. It is best to go with a high quality franchising attorney that offers advice at reasonable fees.
When hiring a somekeyword you should go with one that has a clear understanding of how the franchise system operates and one who has had plenty of experience in the field so that they may be able to offer you practical solutions. When a franchise and distribution law firm has years of experience, then they have developed a keen knowledge on how the system works. By doing so you are ensuring that you will be able to get the best results out of your franchise case or legal issues.
A good somekeyword will spend a large majority of their time configuring all of the legal material so that you won't have to. They will be able to interpret all of the confusing lingo so that you may clearly understand exactly what is going on. However, while their main focus should always be the legal side of the situation, a professional franchising attorney will also understand that you are going through a difficult time and will do their best to help your business succeed whether the solution is through a legal answer or otherwise.
You should have a respectable franchising attorney on hand whenever you decide to start up your own franchise. Going with a law firm that is dedicated to legal franchising expertise is a great step to a successful future with your business. Franchising attorneys understand how the franchise industry works and will be able to advise you on what steps you should take and what actions you should always avoid when you are getting started.
Franchising lawyers can also assist those who are existing franchisors with updating their Franchise Disclosure Document so that they may be able to sell their franchise if needed. A quality franchise law firm will have many available options that can assist with every type of business budget so that your company can receive the legal advice and help that it needs without having to break the bank.
When hiring a somekeyword you should go with one that has a clear understanding of how the franchise system operates and one who has had plenty of experience in the field so that they may be able to offer you practical solutions. When a franchise and distribution law firm has years of experience, then they have developed a keen knowledge on how the system works. By doing so you are ensuring that you will be able to get the best results out of your franchise case or legal issues.
A good somekeyword will spend a large majority of their time configuring all of the legal material so that you won't have to. They will be able to interpret all of the confusing lingo so that you may clearly understand exactly what is going on. However, while their main focus should always be the legal side of the situation, a professional franchising attorney will also understand that you are going through a difficult time and will do their best to help your business succeed whether the solution is through a legal answer or otherwise.
You should have a respectable franchising attorney on hand whenever you decide to start up your own franchise. Going with a law firm that is dedicated to legal franchising expertise is a great step to a successful future with your business. Franchising attorneys understand how the franchise industry works and will be able to advise you on what steps you should take and what actions you should always avoid when you are getting started.
Franchising lawyers can also assist those who are existing franchisors with updating their Franchise Disclosure Document so that they may be able to sell their franchise if needed. A quality franchise law firm will have many available options that can assist with every type of business budget so that your company can receive the legal advice and help that it needs without having to break the bank.
Franchise business
A franchise business is a business in which the owners, or franchisers, sell the rights to their business logo and model to third parties, called franchisees. Franchises are an extremely common way of doing business. In fact, it's difficult to drive more than a few blocks in most cities without seeing a franchise business. Examples of well-known franchise business models include McDonalds, Subway, UPS, and H & R Block. In the United States, there are franchise business opportunities available across a wide variety of industries.To invest in a franchise, the franchisee must first pay an initial fee for the rights to the business, training, and the equipment required by that particular franchise. Thereafter, the franchisee will generally pay the franchise business owner an ongoing royalty payment, either on a monthly or quarterly basis. This payment is usually calculated as a percentage of the franchise operation's gross sales.After the contract has been signed, the franchisee will open a replica of the franchise business, under the direction of the franchiser. The franchisee will not have as much control over the business as he or she would over their own, but may benefit from investing in an already-established brand. Generally, the franchiser will require that the business model stay the same. For example, the franchiser will require the franchisee to use the uniforms, business methods, and signs or logos particular to the business itself. The franchisee should remember that he or she is not just buying the right to sell the franchisers product, but is buying the right to use the successful and tested business process. The franchisee will also usually have to use the same or similar pricing, in order to keep the advertising streamlined. For example, if you saw an advertisement for $75 tax preparation from a well-known tax preparation franchise, you would expect to find this deal in any one of the franchise operations you went into. Aside from using the business model determined by the franchiser, the franchisee will otherwise remain an independent owner of the franchise.While there are many benefits to investing in an already-successful franchise business model, there are drawbacks as well. As with any investment you make, you should do your research thoroughly before you make any franchise purchasing decisions. If you are considering buying into a franchise, you should contact an experienced franchise attorney for further assistance..somekeyword
Tuesday, July 24, 2012
Financing Your Own Franchise Business
Due to the recent economic downturn, many of us have begun taking their money matters into their own hands. With long run job security changing into a factor of the past, many of us are turning toward tiny business possession to declare their money independence. Shopping for into a somekeyword is a method that folks are setting their plans into motion. The risks and rewards are nice in any new business venture, however very first thing, how are these individuals obtaining started? The primary factor you wish to urge squared away is financing, however how? There are literally several choices to secure financing for a replacement franchise and it'll be up to you to choose which inserts your scenario.
Once you have got researched franchises that you simply have an interest in and created a call on that you'd wish to invest in, you wish to choose how you may pay your start-up prices. The tiny Business Administration, a branch of the US government, will assist you notice grants and venture capital however they are doing not supply loans to hide all prices. You'll be able to gift your business decide to your personal bank; however recent events have caused banks to tighten lending restrictions, particularly with things like tiny businesses. In fact, it's possible that to secure a business loan through your personal bank you'd want nearly one-hundred % collateralization. You'll additionally speak together with your franchisor a few start-up loans, or liquidate your own personal assets. In recent years, the foremost fashionable ways that to accumulate funding for getting into a franchise is to either borrow from your existing 401(k) set up, or to require advantage of a government "loop-hole" known as ROBS, or Rollovers as Business start-ups, that involves transferring your current 401(k) or IRA into your new business to be used as start-up money.
Borrowing cash from your 401(k) set up could be a good way to finance your new business plans. You'll be able to borrow up to $50,000 or five hundredth of your total savings, whichever is a smaller amount. If that does not appear to be enough capital, this concept will be combined with government grants, personal assets, or venture capital loans. Keep in mind that you simply can need to build regular re-payments to your set up, beside affordable interest, till the loan is totally repaid. You ought to contact your 401(k) set up administrator to search out if you qualify for this route.
Hiring an experienced and knowledgeable franchise attorney is often an excellent plan, however if you intend to roll your current 401(k) or IRA saving plans into cash to start out your business it's completely essential. Basically, you'll be able to access all of your retirement cash and invest it into your business, tax and penalty free. How will this work? primarily, your franchise attorney can discovered a shell corporation in your name, establish a certified retirement account within the name of your new corporation, move the money in your recent 401(k) or IRA into the new one and you may invest the money from the retirement account within the stock of your franchise business, providing you with the money to start out your business. as a result of you're transferring funds from one retirement account to a different, you may not need to pay any taxes or penalties for cashing in your set up before the age of fifty nine . Using this methodology you're liberal to begin drawing a salary immediately, and you're additionally liberal to take any left over cash within the new retirement account and invest in any form of things, like different businesses and realty. You have got way more management concerning how your future is being invested.
The ROBS methodology could be a controversial topic in business financing currently. I cannot stress enough how necessary it's to own an experienced franchise attorney with you each step of the approach. As a result of the ROBS methodology creates a tax shelter, these transactions return underneath serious scrutiny by the IRS. You may want skilled help to make sure that your new corporation and retirement account follow all federal tips to the precise letter. Borrowing from your 401(k) is a smaller amount legally advanced, however you'll be subject to penalties and huge fees if you fall behind on your re-payments. Looking the tiny Business Association, or through personal lenders might not web you adequate money for the complete start-up. In any case, it's vitally necessary to know the risks and potential rewards concerned with these choices. Your future business success depends on how fastidiously you weigh your choices.
Once you have got researched franchises that you simply have an interest in and created a call on that you'd wish to invest in, you wish to choose how you may pay your start-up prices. The tiny Business Administration, a branch of the US government, will assist you notice grants and venture capital however they are doing not supply loans to hide all prices. You'll be able to gift your business decide to your personal bank; however recent events have caused banks to tighten lending restrictions, particularly with things like tiny businesses. In fact, it's possible that to secure a business loan through your personal bank you'd want nearly one-hundred % collateralization. You'll additionally speak together with your franchisor a few start-up loans, or liquidate your own personal assets. In recent years, the foremost fashionable ways that to accumulate funding for getting into a franchise is to either borrow from your existing 401(k) set up, or to require advantage of a government "loop-hole" known as ROBS, or Rollovers as Business start-ups, that involves transferring your current 401(k) or IRA into your new business to be used as start-up money.
Borrowing cash from your 401(k) set up could be a good way to finance your new business plans. You'll be able to borrow up to $50,000 or five hundredth of your total savings, whichever is a smaller amount. If that does not appear to be enough capital, this concept will be combined with government grants, personal assets, or venture capital loans. Keep in mind that you simply can need to build regular re-payments to your set up, beside affordable interest, till the loan is totally repaid. You ought to contact your 401(k) set up administrator to search out if you qualify for this route.
Hiring an experienced and knowledgeable franchise attorney is often an excellent plan, however if you intend to roll your current 401(k) or IRA saving plans into cash to start out your business it's completely essential. Basically, you'll be able to access all of your retirement cash and invest it into your business, tax and penalty free. How will this work? primarily, your franchise attorney can discovered a shell corporation in your name, establish a certified retirement account within the name of your new corporation, move the money in your recent 401(k) or IRA into the new one and you may invest the money from the retirement account within the stock of your franchise business, providing you with the money to start out your business. as a result of you're transferring funds from one retirement account to a different, you may not need to pay any taxes or penalties for cashing in your set up before the age of fifty nine . Using this methodology you're liberal to begin drawing a salary immediately, and you're additionally liberal to take any left over cash within the new retirement account and invest in any form of things, like different businesses and realty. You have got way more management concerning how your future is being invested.
The ROBS methodology could be a controversial topic in business financing currently. I cannot stress enough how necessary it's to own an experienced franchise attorney with you each step of the approach. As a result of the ROBS methodology creates a tax shelter, these transactions return underneath serious scrutiny by the IRS. You may want skilled help to make sure that your new corporation and retirement account follow all federal tips to the precise letter. Borrowing from your 401(k) is a smaller amount legally advanced, however you'll be subject to penalties and huge fees if you fall behind on your re-payments. Looking the tiny Business Association, or through personal lenders might not web you adequate money for the complete start-up. In any case, it's vitally necessary to know the risks and potential rewards concerned with these choices. Your future business success depends on how fastidiously you weigh your choices.
Interested in Buying a Franchise Call a Franchise Attorney Today!
Interested in Buying a Franchise Call a Franchise Attorney Today!
Numbers and statistics play an important role in shaping public policy and opinion in the modern age. Because they are supposedly complied by experts, most folks accept them without question. This numerical credulity can be dangerous, since many popular statistics are inaccurate or just plain wrong. Take for example the restaurant-failure myth.
For decades, people quoted a statistic that said that 90 percent of American restaurants fail in the first year. No one really knew who said it first, but they repeated it so often it became an unquestioned fact. The only problem was it wasn't true. In fact, it wasn't even close. Most modern studies have found that only around twenty-five percent of restaurants close their doors in the first year.
Of course, opening a new business is still quite risky. Hard work alone many not be enough to ensure success. It is for this reason that many potential business owners consider franchising as an option. While far from foolproof, this proven business practice is probably less risky than starting up a new company. How does it work?
Franchising is the quickest and often safest way for a company to expand into new territories. Instead of taking the time to build each new location and to train the staff, they simply give qualified applicants the legal authorization to sell their products and/or services for a fee. The concept is effective because the new owner doesn't have to invest untold sums to attract new customers, since most folks are already familiar with the brand and its products.
Some of the top franchises have failure rates that are in the single digits, which is well below the national average. However, it is important to not fall prey to the numbers game. Even if they sell similar products, two franchises can have drastically different failure rates. For example, Subway sandwich shops have a failure rate of around 7 percent, while Blimpie sandwich shops have a failure rate of 46 percent. How could this be? They both sell pretty much the same things.
There are dozens of different factors that determine the success or failure of a new franchisee, and not all of it depends on the products or services they offer. Proven franchises generally take a much more active role in how their franchises are run. More often than not, they will help the new owner train his staff, assistant him in obtaining financing, keep him abreast of marketing plans, and even help him scout new site locations. They take these extra steps because growing franchises have a vested interest in a new owner's success. Not only does it mean more in franchise fees, it may also result in future expansion. Multiple owners are the single most important group for franchisors. These are owners who have proved that they can operate profitable franchises and are therefore encouraged to open additional stores.
As exciting as the prospect of owning a popular franchise location may be, you should never sign anything without consulting a somekeyword. There are tens of thousands of franchisors in America and all of them ask their franchisees to sign contracts or agreements. Some of these contracts are negotiable, while others are set in stone. An experienced franchise attorney can peruse these documents for you to make sure everything is copacetic.
What might they find?
As a general rule, the more restrictive a franchise contract, the better. It might sound strange, but franchisors that actually care about the success of their new owners are more likely to make them sign non-negotiable contracts. They do this because they have complete confidence in their business models, but only if it is followed to the letter. An experienced franchise attorney or somekeyword will be able to determine how much training and support the franchisor will provide.
Numbers and statistics play an important role in shaping public policy and opinion in the modern age. Because they are supposedly complied by experts, most folks accept them without question. This numerical credulity can be dangerous, since many popular statistics are inaccurate or just plain wrong. Take for example the restaurant-failure myth.
For decades, people quoted a statistic that said that 90 percent of American restaurants fail in the first year. No one really knew who said it first, but they repeated it so often it became an unquestioned fact. The only problem was it wasn't true. In fact, it wasn't even close. Most modern studies have found that only around twenty-five percent of restaurants close their doors in the first year.
Of course, opening a new business is still quite risky. Hard work alone many not be enough to ensure success. It is for this reason that many potential business owners consider franchising as an option. While far from foolproof, this proven business practice is probably less risky than starting up a new company. How does it work?
Franchising is the quickest and often safest way for a company to expand into new territories. Instead of taking the time to build each new location and to train the staff, they simply give qualified applicants the legal authorization to sell their products and/or services for a fee. The concept is effective because the new owner doesn't have to invest untold sums to attract new customers, since most folks are already familiar with the brand and its products.
Some of the top franchises have failure rates that are in the single digits, which is well below the national average. However, it is important to not fall prey to the numbers game. Even if they sell similar products, two franchises can have drastically different failure rates. For example, Subway sandwich shops have a failure rate of around 7 percent, while Blimpie sandwich shops have a failure rate of 46 percent. How could this be? They both sell pretty much the same things.
There are dozens of different factors that determine the success or failure of a new franchisee, and not all of it depends on the products or services they offer. Proven franchises generally take a much more active role in how their franchises are run. More often than not, they will help the new owner train his staff, assistant him in obtaining financing, keep him abreast of marketing plans, and even help him scout new site locations. They take these extra steps because growing franchises have a vested interest in a new owner's success. Not only does it mean more in franchise fees, it may also result in future expansion. Multiple owners are the single most important group for franchisors. These are owners who have proved that they can operate profitable franchises and are therefore encouraged to open additional stores.
As exciting as the prospect of owning a popular franchise location may be, you should never sign anything without consulting a somekeyword. There are tens of thousands of franchisors in America and all of them ask their franchisees to sign contracts or agreements. Some of these contracts are negotiable, while others are set in stone. An experienced franchise attorney can peruse these documents for you to make sure everything is copacetic.
What might they find?
As a general rule, the more restrictive a franchise contract, the better. It might sound strange, but franchisors that actually care about the success of their new owners are more likely to make them sign non-negotiable contracts. They do this because they have complete confidence in their business models, but only if it is followed to the letter. An experienced franchise attorney or somekeyword will be able to determine how much training and support the franchisor will provide.
Monday, July 23, 2012
Don't be stupid- Negotiate Your Franchise Agreement
Once, I came across a franchisor, who told me that they do not negotiate their franchise agreement. I found this franchise concept totally foreign to me. Let me ask you! Have you ever entered a business transaction where the other party said they would not negotiate? Though, this might be the case; but, it does not mean that you should not try also.
What I found even more laughable was the reasoning as to why the franchisor would not negotiate. They said that it has been advised o them by their counsel to not do so. For sure, if any franchise system uses this type of logic, I would definitely stay away from them.
This initiated a question: Let us say the perfect candidate had an interest on buying many units in particular brand. Does this mean that the franchisor would turn a candidate away, who was looking to buy their franchise model? It might not happen because many people are dumb; but, they might not e always stupid.
When I first got into the somekeyword and brokerage industry, I was quickly exposed to this type of nonsense. While I admittedly lacked experience regarding the mechanisms of the franchise industry, I did have significant experience in closing on various franchise business transaction. When the franchisor told me they never negotiated their agreement, it gave me pause and I told my client not to consider the opportunity. Interestingly enough, upon further research, I quickly discovered their model had a NUMBER of legal issues and has since just gone away.
There is another thing I find bothersome regarding an unwillingness to negotiate. First and foremost, I think a willingness to negotiate is a sign of a good franchisee. They are actually thinking about what they are going to do and want to be prepared. Again, in my experience, a business transaction that is negotiated always seems to go better than one that was not. You would think a franchisor would prefer to have a smarter and more importantly better prepared franchise business owner.
When you buy a franchise, it should be a profitable business partnership. The franchisor makes money from royalties and fees, and the franchisee makes money from the system. When I hear about a concept not willing to discuss specifics of an agreement, it seems to me to be sign of red flag. What are they so concerned about? If I buy into this somekeyword model, how am I going to be treated going forward? What if there are provisions in the document that is not applicable or even worse unreasonable? Wouldn't prudent business practice dictate that said provisions be removed?
Now, when you buy a franchise; it's a significant investment. As a franchisor, I would not want to have a misinformed franchisee and I almost certainly wouldn't want to have someone in my franchise system that does not have a clear understanding of what they signed, nor, sign an agreement they are not comfortable with. It is the classic example of starting off on the wrong foot and almost certainly will lead to problems in the future.
The bottom line is this, if you are going to buy a franchise, hire a qualified franchise attorney. Make sure you thoroughly review the franchise disclosure document and eliminate terms you are simply not comfortable with. If the franchisor demonstrates a degree of inflexibility, and or seems difficult, it might be best to walk from the deal. If you have problems out of the gate; there is a good chance there will be problems in the future-
Author bio:
The author of this article has specialization in Franchise Concepts. His enormous experience is summed up in the article -Franchise Disclosure Document brings the master plans for the Franchise Opportunities'. Along with this he also provides somekeyword, franchise development and brokerage services to both individuals and franchise systems.Read more: somekeyword
What I found even more laughable was the reasoning as to why the franchisor would not negotiate. They said that it has been advised o them by their counsel to not do so. For sure, if any franchise system uses this type of logic, I would definitely stay away from them.
This initiated a question: Let us say the perfect candidate had an interest on buying many units in particular brand. Does this mean that the franchisor would turn a candidate away, who was looking to buy their franchise model? It might not happen because many people are dumb; but, they might not e always stupid.
When I first got into the somekeyword and brokerage industry, I was quickly exposed to this type of nonsense. While I admittedly lacked experience regarding the mechanisms of the franchise industry, I did have significant experience in closing on various franchise business transaction. When the franchisor told me they never negotiated their agreement, it gave me pause and I told my client not to consider the opportunity. Interestingly enough, upon further research, I quickly discovered their model had a NUMBER of legal issues and has since just gone away.
There is another thing I find bothersome regarding an unwillingness to negotiate. First and foremost, I think a willingness to negotiate is a sign of a good franchisee. They are actually thinking about what they are going to do and want to be prepared. Again, in my experience, a business transaction that is negotiated always seems to go better than one that was not. You would think a franchisor would prefer to have a smarter and more importantly better prepared franchise business owner.
When you buy a franchise, it should be a profitable business partnership. The franchisor makes money from royalties and fees, and the franchisee makes money from the system. When I hear about a concept not willing to discuss specifics of an agreement, it seems to me to be sign of red flag. What are they so concerned about? If I buy into this somekeyword model, how am I going to be treated going forward? What if there are provisions in the document that is not applicable or even worse unreasonable? Wouldn't prudent business practice dictate that said provisions be removed?
Now, when you buy a franchise; it's a significant investment. As a franchisor, I would not want to have a misinformed franchisee and I almost certainly wouldn't want to have someone in my franchise system that does not have a clear understanding of what they signed, nor, sign an agreement they are not comfortable with. It is the classic example of starting off on the wrong foot and almost certainly will lead to problems in the future.
The bottom line is this, if you are going to buy a franchise, hire a qualified franchise attorney. Make sure you thoroughly review the franchise disclosure document and eliminate terms you are simply not comfortable with. If the franchisor demonstrates a degree of inflexibility, and or seems difficult, it might be best to walk from the deal. If you have problems out of the gate; there is a good chance there will be problems in the future-
Author bio:
The author of this article has specialization in Franchise Concepts. His enormous experience is summed up in the article -Franchise Disclosure Document brings the master plans for the Franchise Opportunities'. Along with this he also provides somekeyword, franchise development and brokerage services to both individuals and franchise systems.Read more: somekeyword
Some Instructions When Opening Your New Restaurant Franchise
Searching for some lucrative restaurant franchise opportunities to get started in your business venture? If yes, then take a pause before you take the final plunge. Investing in a business is no child's play and there are lots of things that you should know before taking your step in the industry of restaurant franchise. Here we bring for you vivid and step by step guide about the various things that you should consider before opting for franchise option to ensure the best results: >
Knowing and understanding the meaning of franchise restaurant rightly: The first and foremost thing that you should consider before opting for restaurant franchise opportunities is having a proper and clear understanding about the difference between food chain and franchises. While in restaurant franchise opportunities, owners get to enjoy the right to open a branch by using a brand's name by giving the parent company a royalty fee. In return, the parent company helps the new franchise investor with various support programs such as store operation, finance management and dcor to name a few.
Know your choice of restaurant franchise opportunities beforehand: The food industry is a big one with various segments and sectors to explore. Hence it is important that you know your choice of restaurant franchise before taking your step forward in this industry. From fast food, healthy food to multi cuisine restaurants, there are ample of restaurant franchise opportunities waiting for you to explore and invent. It is always suggested that you research and survey about the changing eating habits and trends of people well before deciding on your choice of business in order to enjoy profitable gain.
Know your budget to decide on the restaurant franchise opportunities: Another major thing to consider before opting for your choice of restaurant franchise opportunities is that you should know about the budget and maximum fund that you can afford. Different companies demand for different values as royalty fee in accordance to the recognition and market reputation.
Maintain a proper business operational plan: In a business, one needs to maintain a proper and systematic approach thoroughly so that you can run and operate it in a smooth and flexible manner. When investing in new restaurant franchise opportunities, knowing the economy and history of the brand becomes an essential one to consider.
Have everything legalized and documented: In business, going for any verbal agreement is a complete no-no that you should abide by. Engage a legal attorney when dealing about any somekeyword and have all agreements and policies documented rightly to avoid any future hassles.
Knowing and understanding the meaning of franchise restaurant rightly: The first and foremost thing that you should consider before opting for restaurant franchise opportunities is having a proper and clear understanding about the difference between food chain and franchises. While in restaurant franchise opportunities, owners get to enjoy the right to open a branch by using a brand's name by giving the parent company a royalty fee. In return, the parent company helps the new franchise investor with various support programs such as store operation, finance management and dcor to name a few.
Know your choice of restaurant franchise opportunities beforehand: The food industry is a big one with various segments and sectors to explore. Hence it is important that you know your choice of restaurant franchise before taking your step forward in this industry. From fast food, healthy food to multi cuisine restaurants, there are ample of restaurant franchise opportunities waiting for you to explore and invent. It is always suggested that you research and survey about the changing eating habits and trends of people well before deciding on your choice of business in order to enjoy profitable gain.
Know your budget to decide on the restaurant franchise opportunities: Another major thing to consider before opting for your choice of restaurant franchise opportunities is that you should know about the budget and maximum fund that you can afford. Different companies demand for different values as royalty fee in accordance to the recognition and market reputation.
Maintain a proper business operational plan: In a business, one needs to maintain a proper and systematic approach thoroughly so that you can run and operate it in a smooth and flexible manner. When investing in new restaurant franchise opportunities, knowing the economy and history of the brand becomes an essential one to consider.
Have everything legalized and documented: In business, going for any verbal agreement is a complete no-no that you should abide by. Engage a legal attorney when dealing about any somekeyword and have all agreements and policies documented rightly to avoid any future hassles.
Sunday, July 22, 2012
Things To Know On How To Buy A Franchise
You might not know how to buy franchise if this is the first time you ever bought a business. The process of buying a franchise can be quite overwhelming and very confusing. What this article is going to do for you is give you 4 rock-solid tips on how to buy a franchise.
For most entrepreneurs, the natural thought process is to just find a franchise that they are passionate about. I think that's a great idea however, if you buy a franchise solely on what you are passionate about you run the risk of making a critical mistake in buying the right franchise. These are 4 tips on how to buy a franchise right.
1. Get a reality check - Before you sign on the dotted line, take a step back and get a clear understanding of exactly what your current financial situation is. Make sure you know exactly how much money you have to invest and how much time you plan to spend on your business. What most rookie business owners do is they make the mistake of believing they are better off financially than they really are. It's important in business to not mix business with emotions.
2. Understand the FDD - The FDD, otherwise known as the Franchise Disclosure Document, will tell you everything that you need to know about the franchise you are thinking about buying. The FDD will tell you exactly everything the franchise company is responsible for and everything you as the franchise owner is responsible for. The FDD will also identify any former and current litigation against the franchise company. This is important to know when you are evaluating the strength and the character of the franchise. You have a 14 day window to go over the entire FDD and to analyze it from top to bottom. Use this time wisely to conduct your due diligence.
3. Consult with franchise experts - During your 14 day "cooling off" window, it is strongly recommended that you consult with franchise experts. They are there for your benefit. I highly recommend first consulting with a franchise attorney so they can help you determine if owning a franchise is right for you and your family. Next, I recommend sitting down with the franchising accountant so you completely understand all the tax and legal advantages and disadvantages of owning a franchise. Spending a little time and money now with these professionals will save you thousands of dollars in costly litigation fees in the future.
4. Alignment your current goals and values - After you have completed the first three steps, now it's time to tie it all together and to choose a franchise that is in alignment with your values and goals. If you can also choose a franchise that you're passionate about, even better. So if your dream is to spend more time with your family on nights and weekends, do not choose a franchise that requires you to physically be there on nights and weekends. Also, if your goal is to be home every night, don't choose a franchise with extensive travel requirements.
By the way, do you want to learn more about franchising so you can make educated decisions about finding the right franchise for you?
If so, download my free guide here: somekeyword
Do you want to learn about one of the hottest franchises today that has NO territory restrictions, NO royalty fees, NO minimum net worth required that's home based on the Internet?
If so, I suggest you check out: somekeyword
For most entrepreneurs, the natural thought process is to just find a franchise that they are passionate about. I think that's a great idea however, if you buy a franchise solely on what you are passionate about you run the risk of making a critical mistake in buying the right franchise. These are 4 tips on how to buy a franchise right.
1. Get a reality check - Before you sign on the dotted line, take a step back and get a clear understanding of exactly what your current financial situation is. Make sure you know exactly how much money you have to invest and how much time you plan to spend on your business. What most rookie business owners do is they make the mistake of believing they are better off financially than they really are. It's important in business to not mix business with emotions.
2. Understand the FDD - The FDD, otherwise known as the Franchise Disclosure Document, will tell you everything that you need to know about the franchise you are thinking about buying. The FDD will tell you exactly everything the franchise company is responsible for and everything you as the franchise owner is responsible for. The FDD will also identify any former and current litigation against the franchise company. This is important to know when you are evaluating the strength and the character of the franchise. You have a 14 day window to go over the entire FDD and to analyze it from top to bottom. Use this time wisely to conduct your due diligence.
3. Consult with franchise experts - During your 14 day "cooling off" window, it is strongly recommended that you consult with franchise experts. They are there for your benefit. I highly recommend first consulting with a franchise attorney so they can help you determine if owning a franchise is right for you and your family. Next, I recommend sitting down with the franchising accountant so you completely understand all the tax and legal advantages and disadvantages of owning a franchise. Spending a little time and money now with these professionals will save you thousands of dollars in costly litigation fees in the future.
4. Alignment your current goals and values - After you have completed the first three steps, now it's time to tie it all together and to choose a franchise that is in alignment with your values and goals. If you can also choose a franchise that you're passionate about, even better. So if your dream is to spend more time with your family on nights and weekends, do not choose a franchise that requires you to physically be there on nights and weekends. Also, if your goal is to be home every night, don't choose a franchise with extensive travel requirements.
By the way, do you want to learn more about franchising so you can make educated decisions about finding the right franchise for you?
If so, download my free guide here: somekeyword
Do you want to learn about one of the hottest franchises today that has NO territory restrictions, NO royalty fees, NO minimum net worth required that's home based on the Internet?
If so, I suggest you check out: somekeyword
The Franchise Disclosure Document (FDD) - An Overview
If you're serious about buying a franchise, at some point you're going to receive and review a Franchise Disclosure Document (FDD). The purpose of the FDD is to give the potential buyer detailed information on the investment details, ongoing fees and obligations of both the franchisor and franchisee. According to federal law, governed by the Federal Trade Commission (FTC), you must receive a copy of the FDD a minimum of 14 days prior to signing any agreement with the franchise.
The somekeyword provides an overview of: - The management structure and history of the franchise - Experience of key personnel - Litigation history - The initial investment and ongoing fees - Obligations of all parties - List of current and former franchisees - Trademarks, patents and copyrights - Details on training and support - Financial performance (If the franchise elected to provide) - The Franchise Agreement
The somekeyword format is standard and contains 23 items. Each item provides specific details on the franchise opportunity. This document is typically drafted by an attorney and will contain a lot of legal phrases and definitions. You should have a qualified franchise attorney review the document as they can help explain what being disclosed and more importantly, negotiate the franchise agreement. Some of the more seasoned franchise systems will not negotiate the document. In any instance, you will want to understand on what you're signing to be aware of the risks and obligations of the franchise agreement.
Here's an overview of each item:
Item 1. The Franchisor and Any Parents, Predecessors, and Affiliates: This section explains the history of the franchise.
Item 2. Identity and Business Experience of Key Persons running the franchise.
Item 3. Litigation History - Details of any outstanding lawsuits
Item 4. Bankruptcy History - Details of any bankruptcy history of the franchise
Item 5. Initial Fees - Franchise Fee and any other fees required when signing the agreement.
Item 6. Other Fees and Expenses - Details on the ongoing royalty, advertising and any other ongoing fees.
Item 7. Initial Investment: An Estimate of the initial investment to start the business
Item 8. Restrictions on Sources of Products and Services
Item 9. Obligations of the Franchisee
Item 10. Financing Arrangements - Details of franchise provided financing.
Item 11. Obligations of the Franchisor
Item 12. Territory - Details on the territory awarded and what protections are provided.
Item 13. Trademarks - Details on franchise trademarks.
Item 14. Patents, Copyrights, and Proprietary Information
Item 15. Obligation to participate in the Actual Operating of the Business - Details on how much time you are required to operate the business.
Item 16. Restrictions on Goods and Services Offered by the Franchisee
Item 17. Renewal, Termination, Repurchase, Modification and/or Transfer of the Franchise Agreement, and Dispute Resolution
Item 18. Public Figures - Are their any public figures endorsing the franchise.
Item 19. Financial Performance Representations (FPR or Earnings Claim) - Details of the financial performance of the model. Franchises can elect TO NOT make an FPR.
Item 20. List of Franchise Outlets - Number of current franchise locations as well as the number who have entered or left the franchise.
Item 21. Financial Statements of Franchisor
Item 22. Contract - The Franchise Agreement
Item 23. Acknowledgment of Receipt
The somekeyword is only part of your due diligence process. When considering franchise ownership there are several items to consider. Will the franchise work in your market? Do you have the ability to own and operate the business? Is the business viable? Will you be happy owning and operating the business and does it fit with your ideal lifestyle. When considering a franchise investment, it's recommended you would with a qualified franchise attorney, CPA and Financial Advisor. The can help you will your due diligence, determine suitability and formulate a strategy for financing.
Author Bio
The author of this article has specialization in somekeyword. His enormous experience is summed up in the article -Franchise Disclosure Document brings the master plans for the Franchise Opportunities'. Along with this he also provides franchise consulting, development and brokerage services to both individuals and franchise systems.
Read more: somekeyword
The somekeyword provides an overview of: - The management structure and history of the franchise - Experience of key personnel - Litigation history - The initial investment and ongoing fees - Obligations of all parties - List of current and former franchisees - Trademarks, patents and copyrights - Details on training and support - Financial performance (If the franchise elected to provide) - The Franchise Agreement
The somekeyword format is standard and contains 23 items. Each item provides specific details on the franchise opportunity. This document is typically drafted by an attorney and will contain a lot of legal phrases and definitions. You should have a qualified franchise attorney review the document as they can help explain what being disclosed and more importantly, negotiate the franchise agreement. Some of the more seasoned franchise systems will not negotiate the document. In any instance, you will want to understand on what you're signing to be aware of the risks and obligations of the franchise agreement.
Here's an overview of each item:
Item 1. The Franchisor and Any Parents, Predecessors, and Affiliates: This section explains the history of the franchise.
Item 2. Identity and Business Experience of Key Persons running the franchise.
Item 3. Litigation History - Details of any outstanding lawsuits
Item 4. Bankruptcy History - Details of any bankruptcy history of the franchise
Item 5. Initial Fees - Franchise Fee and any other fees required when signing the agreement.
Item 6. Other Fees and Expenses - Details on the ongoing royalty, advertising and any other ongoing fees.
Item 7. Initial Investment: An Estimate of the initial investment to start the business
Item 8. Restrictions on Sources of Products and Services
Item 9. Obligations of the Franchisee
Item 10. Financing Arrangements - Details of franchise provided financing.
Item 11. Obligations of the Franchisor
Item 12. Territory - Details on the territory awarded and what protections are provided.
Item 13. Trademarks - Details on franchise trademarks.
Item 14. Patents, Copyrights, and Proprietary Information
Item 15. Obligation to participate in the Actual Operating of the Business - Details on how much time you are required to operate the business.
Item 16. Restrictions on Goods and Services Offered by the Franchisee
Item 17. Renewal, Termination, Repurchase, Modification and/or Transfer of the Franchise Agreement, and Dispute Resolution
Item 18. Public Figures - Are their any public figures endorsing the franchise.
Item 19. Financial Performance Representations (FPR or Earnings Claim) - Details of the financial performance of the model. Franchises can elect TO NOT make an FPR.
Item 20. List of Franchise Outlets - Number of current franchise locations as well as the number who have entered or left the franchise.
Item 21. Financial Statements of Franchisor
Item 22. Contract - The Franchise Agreement
Item 23. Acknowledgment of Receipt
The somekeyword is only part of your due diligence process. When considering franchise ownership there are several items to consider. Will the franchise work in your market? Do you have the ability to own and operate the business? Is the business viable? Will you be happy owning and operating the business and does it fit with your ideal lifestyle. When considering a franchise investment, it's recommended you would with a qualified franchise attorney, CPA and Financial Advisor. The can help you will your due diligence, determine suitability and formulate a strategy for financing.
Author Bio
The author of this article has specialization in somekeyword. His enormous experience is summed up in the article -Franchise Disclosure Document brings the master plans for the Franchise Opportunities'. Along with this he also provides franchise consulting, development and brokerage services to both individuals and franchise systems.
Read more: somekeyword
Saturday, July 21, 2012
Strengthening of Ventures with Franchise Disclosure Document
In the world of franchising, franchise disclosure document has the most important role. In fact, it is this document that carries on all the legal associations between the franchisee and the franchisor. A FDD is a lawful document which is presented to potential buyers of franchises in the pre-sale revelation method in the United States. The FDD that only the federal government or the state governments have the permission to sue and confer consent decrees and rescissions with those franchisors that infringe the provisions of the FTC Franchise Rule and the Franchise Disclosure Document (FDD). This document talks about the franchise agreement, which is the prescribed sales contract between the parties at the time the convention is formally signed. This franchise sales contract manipulates the long-term relationship and carries the ONLY promises and obligations of the parties to each other that will stay in upshot over the stated time term of the contracts - the terms of which normally range from five to fifteen years.
The somekeyword cannot be altered unless there is consent of both parties. The credible franchisee has the right to ask for (and get) a copy of the sample document once the franchisor has instituted the potential franchisee's application and agreed to consider it. The FDD format is average and contains 23 items. Every item gives concerned details on the franchise occasion. This document is rightly created by an attorney and will contain a lot of lawful phrases and definitions. You should have a veteran franchise attorney examine the document as they can help elucidate what is being disclosed and more prominently, discuss the franchise agreement. Some of the more tested franchise systems will not discuss the document. In any circumstance, you will want to comprehend what you are signing to be sentient of the risks and obligations of the franchise agreement.
The Franchise Disclosure Document states about the franchise agreement (the legal sales contract) between the parties at the time the contract is officially signed. This franchise sales contract manipulates the long-term relationship and carries the ONLY promises and obligations of the parties to each other that will stay in effect over the said time term of the contracts - the terms of which usually range from five to twenty years. According to the Franchise Rule, which is imposed by the Federal Trade Commission (FTC), a potential franchisee must obtain the franchisor's somekeyword at least 14 days before they are asked to sign any contract or pay any money to the franchisor or an affiliate of the franchisor. The potential franchisee has the right to interrogate for (and get) a copy of the sample franchise disclosure document once the franchisor has established the potential franchisee's application and decided to consider it. The franchisor may give a copy of its franchise disclosure documents on paper, via email, via a web page, or even on a disc.
Franchise disclosure document is quite an important part of any franchise business because it carries the legal decision over the buying and selling of franchisees to the aspirant business owners.
Author bio:
The author of this article has specialization in Franchise Concepts. His enormous experience is summed up in the article -Franchise Disclosure Document brings the master plans for the Franchise Opportunities'. Along with this he also provides somekeyword, franchise development and brokerage services to both individuals and franchise systems.
Read more:somekeyword
The somekeyword cannot be altered unless there is consent of both parties. The credible franchisee has the right to ask for (and get) a copy of the sample document once the franchisor has instituted the potential franchisee's application and agreed to consider it. The FDD format is average and contains 23 items. Every item gives concerned details on the franchise occasion. This document is rightly created by an attorney and will contain a lot of lawful phrases and definitions. You should have a veteran franchise attorney examine the document as they can help elucidate what is being disclosed and more prominently, discuss the franchise agreement. Some of the more tested franchise systems will not discuss the document. In any circumstance, you will want to comprehend what you are signing to be sentient of the risks and obligations of the franchise agreement.
The Franchise Disclosure Document states about the franchise agreement (the legal sales contract) between the parties at the time the contract is officially signed. This franchise sales contract manipulates the long-term relationship and carries the ONLY promises and obligations of the parties to each other that will stay in effect over the said time term of the contracts - the terms of which usually range from five to twenty years. According to the Franchise Rule, which is imposed by the Federal Trade Commission (FTC), a potential franchisee must obtain the franchisor's somekeyword at least 14 days before they are asked to sign any contract or pay any money to the franchisor or an affiliate of the franchisor. The potential franchisee has the right to interrogate for (and get) a copy of the sample franchise disclosure document once the franchisor has established the potential franchisee's application and decided to consider it. The franchisor may give a copy of its franchise disclosure documents on paper, via email, via a web page, or even on a disc.
Franchise disclosure document is quite an important part of any franchise business because it carries the legal decision over the buying and selling of franchisees to the aspirant business owners.
Author bio:
The author of this article has specialization in Franchise Concepts. His enormous experience is summed up in the article -Franchise Disclosure Document brings the master plans for the Franchise Opportunities'. Along with this he also provides somekeyword, franchise development and brokerage services to both individuals and franchise systems.
Read more:somekeyword
Starting a franchise restaurant Guide to Follow
To start an independent restaurant set up or opt for a franchise restaurant: which one is better? If this thought is having your brains racked up for long, it is suggested that you look through the benefits and facilities properly before deciding on any of the options. Research and surveys show that for a new comer in the industry of restaurant and food, it is always better to go for franchise restaurant as it helps them not only bask in the brand name of an already recognized restaurant chain but also gets to enjoy proper operational assistance from the parent company. Hence make sure that you think well before you invest. For those who are in the lookout for a franchise restaurant opportunity to get going in the industry of food and restaurant, here in this article we bring for you some of the major guidelines to follow when buying a franchise restaurant: Choosing the type of restaurant franchise that you will want to opt for is the first thing to consider when thinking of going for franchise restaurant business. Research and search through various classified and advertisements in newspapers, internet and other sources to get updated about the various opportunities that you can choose from.
Check the costs and fees that the franchise restaurant brands are demanding to get a vivid idea about the industry and its investment graph. Make sure about your budget also so that you do not have to face hassles and problems later. Mark out the opportunities that are within your maximum budget limit to narrow down your search to a concrete one.
Check all documents and information about the franchise brand to ensure a proper and legal documentation and financial statements. Also check whether the brand will be providing you with assistance in store operation and other support programs.
Indulge in discussion and talks with franchise owners to get a proper picture of the industry, its benefits and disadvantages. Before investing it is always suggested that you stay aware of the somekeyword, its daily working activities, problems etc.
Consider the competition and market strategies of the franchise restaurant industry that you are willing to invest in. Also take into thought the location and locality where you are about to open your new business as it is widely observed that food business depends mostly on the likes of local people.
Do not go for any verbal agreement, instead it is suggested that you have everything documented legally with help of an attorney to avoid problems in future.
Check the costs and fees that the franchise restaurant brands are demanding to get a vivid idea about the industry and its investment graph. Make sure about your budget also so that you do not have to face hassles and problems later. Mark out the opportunities that are within your maximum budget limit to narrow down your search to a concrete one.
Check all documents and information about the franchise brand to ensure a proper and legal documentation and financial statements. Also check whether the brand will be providing you with assistance in store operation and other support programs.
Indulge in discussion and talks with franchise owners to get a proper picture of the industry, its benefits and disadvantages. Before investing it is always suggested that you stay aware of the somekeyword, its daily working activities, problems etc.
Consider the competition and market strategies of the franchise restaurant industry that you are willing to invest in. Also take into thought the location and locality where you are about to open your new business as it is widely observed that food business depends mostly on the likes of local people.
Do not go for any verbal agreement, instead it is suggested that you have everything documented legally with help of an attorney to avoid problems in future.
How to Write a Franchise Business Proposal
There are many types of business franchises available for sale today: health foods, fitness clubs, pet stores, automotive parts or services, cleaning companies, fast-food, you name it.
At any time, there are franchisors--the overall owners who set up the branding and rules for a franchise business--wanting to sell individual franchises and expand their network. .
On the other side of the equation, there are local entrepreneurs who want to become franchisees by purchasing a business from the original franchise company or from an existing franchisee/owner.
Whether you are the franchisor, an existing franchisee wanting to sell your franchise business, or a new potential franchisee wanting to buy a franchise, you need to find the best way to describe what you have to offer and what you propose to do. That means that you need to write a business proposal to buy or sell a franchise.
Writing a business proposal for a franchise should not be a daunting prospect. No matter which side of the franchise equation you are on, you must show that you understand what is expected from both parties, explain your plan and all its associated details, and persuade the other party that you can be trusted to carry out your part of the bargain. This is true in any business deal; some transactions are simply more complex than others.
All business proposals have a basic structure: introduction, then a needs/requirements section, followed by a description of what you are offering, and then a section at the end to persuade the reader that you can fulfill your promises.
First, you need to introduce yourself and your proposal. To do that, you'll write a Cover Letter that briefly explains who you are, states your goal, and provides all your contact information. Then, you'll create a Title Page to name your proposal something descriptive, like "Proposal to Sell the QRS Automotive Franchise at 100 Main Street" or "Health Club Franchise Opportunity in Maple Falls" or "Proposed Purchase of Hi-5 Hamburgers Franchise in Cedro Valley."
Next is the section where you spell out the needs and requirements of the deal. If you are selling a franchise, you'll need to specify the Requirements for purchase, which will contain descriptions such as a minimum cash investment, and perhaps a minimum net worth. You'll also want to specify a Fee Schedule or Cost Summary specifying the ongoing fees that the franchisee will need to pay to the franchisor--these might include fees for advertising or marketing, percentages of royalties, and so forth. You'll also need some topics that spell out what the franchisee is required to do. These might include pages like Expectations, Maintenance, Purchasing, Regulations, and Reporting. You might need Facilities, Design, Layout, or Uniforms that describe what the franchise and its products and employees must look like at all times. Topics will vary somewhat in this section, depending on the nature of the franchise. For a fast-food franchise, you might need a Menu page to spell out all items that must be offered; for a cleaning franchise, you might need a Services Offered page to describe the services that must be offered. Include all the topics you need to describe what is required of an owner of the franchise.
In the following section, you need to describe precisely what you are offering the other party. If you are the franchisor or a current franchisee, you will most likely include pages like Return on Investment or Projected Income to show what a new franchisee can expect to earn. Training and Advertising are usually big components offered by a franchise, as well as having an established Market Share and Customers and recognizable Branding. Usually there is an established line of Products and a standard Process for running the business, steps for every Procedure, and so forth--be sure to include everything the franchise offers to help the new owner be a success. If you're selling an existing franchise, you might want to list your Staff or Team Members to let the prospective owner that these employees are available to stay with the business.
If you are seeking to purchase a franchise, you need to demonstrate that you can meet all the requirements for owning the franchise. You are offering your expertise, management skills, and funding to purchase and maintain the franchise. So in this section, you need to show that you have the necessary monies by including pages like Funding, Budget, and Investment. You also need to prove you have the necessary skills to make the business a success, so you may need pages like Education, Certifications, Experience, Management, Skills, or even a Resume. If you are bringing a management team to the franchise, you might need a Personnel page to show off the talents of your team.
In the final section, it's time to persuade the proposal reader that you are trustworthy and can carry out the promises you have made. So if you have Testimonials, Awards, Referrals, or a list of Supporters, put them in this section. If you are selling the franchise and offer a Guarantee or Warranty of any kind, add that, too.
That's it for writing the proposal. But spend a little time proofreading it and making it look good, too. You want your proposal to appear as professional as possible. If your proposal contains a lot of sloppy mistakes, the other party may assume you are just as careless in your business practices. It might be beneficial to hire a professional editor or proofreader to make a final pass.
There also may be additional legal requirements that must be adhered to when buying or selling a franchise. Legal issues are beyond the scope of this article. Make sure to consult your own attorney to ensure you are in compliance with all applicable laws.
Package up your proposal and send it via email as a PDF, or print it and deliver it in person or via a mail or delivery service. And be sure to follow up within a few days just to make sure it arrived and check to see if the recipient has questions.
You might like to know that you don't have to start with a blank word processing screen. A package like a proposal kit, which contains hundreds of topic templates and completed sample proposals, can make writing, formatting, and assembling business proposals much easier. Templates in a proposal kit will include instructions and suggestions for what to include on that page, so starting with those can make your writing more efficient and thorough. Make sure your proposal kit includes sample franchise proposals that deal with both buying and selling franchises. These samples will inspire ideas for what to include your own proposal.
Ian Lauder has been helping businesses and freelancers write their proposals and contracts since 1997. => For more somekeyword when writing your business proposals and legal contracts visit somekeyword
At any time, there are franchisors--the overall owners who set up the branding and rules for a franchise business--wanting to sell individual franchises and expand their network. .
On the other side of the equation, there are local entrepreneurs who want to become franchisees by purchasing a business from the original franchise company or from an existing franchisee/owner.
Whether you are the franchisor, an existing franchisee wanting to sell your franchise business, or a new potential franchisee wanting to buy a franchise, you need to find the best way to describe what you have to offer and what you propose to do. That means that you need to write a business proposal to buy or sell a franchise.
Writing a business proposal for a franchise should not be a daunting prospect. No matter which side of the franchise equation you are on, you must show that you understand what is expected from both parties, explain your plan and all its associated details, and persuade the other party that you can be trusted to carry out your part of the bargain. This is true in any business deal; some transactions are simply more complex than others.
All business proposals have a basic structure: introduction, then a needs/requirements section, followed by a description of what you are offering, and then a section at the end to persuade the reader that you can fulfill your promises.
First, you need to introduce yourself and your proposal. To do that, you'll write a Cover Letter that briefly explains who you are, states your goal, and provides all your contact information. Then, you'll create a Title Page to name your proposal something descriptive, like "Proposal to Sell the QRS Automotive Franchise at 100 Main Street" or "Health Club Franchise Opportunity in Maple Falls" or "Proposed Purchase of Hi-5 Hamburgers Franchise in Cedro Valley."
Next is the section where you spell out the needs and requirements of the deal. If you are selling a franchise, you'll need to specify the Requirements for purchase, which will contain descriptions such as a minimum cash investment, and perhaps a minimum net worth. You'll also want to specify a Fee Schedule or Cost Summary specifying the ongoing fees that the franchisee will need to pay to the franchisor--these might include fees for advertising or marketing, percentages of royalties, and so forth. You'll also need some topics that spell out what the franchisee is required to do. These might include pages like Expectations, Maintenance, Purchasing, Regulations, and Reporting. You might need Facilities, Design, Layout, or Uniforms that describe what the franchise and its products and employees must look like at all times. Topics will vary somewhat in this section, depending on the nature of the franchise. For a fast-food franchise, you might need a Menu page to spell out all items that must be offered; for a cleaning franchise, you might need a Services Offered page to describe the services that must be offered. Include all the topics you need to describe what is required of an owner of the franchise.
In the following section, you need to describe precisely what you are offering the other party. If you are the franchisor or a current franchisee, you will most likely include pages like Return on Investment or Projected Income to show what a new franchisee can expect to earn. Training and Advertising are usually big components offered by a franchise, as well as having an established Market Share and Customers and recognizable Branding. Usually there is an established line of Products and a standard Process for running the business, steps for every Procedure, and so forth--be sure to include everything the franchise offers to help the new owner be a success. If you're selling an existing franchise, you might want to list your Staff or Team Members to let the prospective owner that these employees are available to stay with the business.
If you are seeking to purchase a franchise, you need to demonstrate that you can meet all the requirements for owning the franchise. You are offering your expertise, management skills, and funding to purchase and maintain the franchise. So in this section, you need to show that you have the necessary monies by including pages like Funding, Budget, and Investment. You also need to prove you have the necessary skills to make the business a success, so you may need pages like Education, Certifications, Experience, Management, Skills, or even a Resume. If you are bringing a management team to the franchise, you might need a Personnel page to show off the talents of your team.
In the final section, it's time to persuade the proposal reader that you are trustworthy and can carry out the promises you have made. So if you have Testimonials, Awards, Referrals, or a list of Supporters, put them in this section. If you are selling the franchise and offer a Guarantee or Warranty of any kind, add that, too.
That's it for writing the proposal. But spend a little time proofreading it and making it look good, too. You want your proposal to appear as professional as possible. If your proposal contains a lot of sloppy mistakes, the other party may assume you are just as careless in your business practices. It might be beneficial to hire a professional editor or proofreader to make a final pass.
There also may be additional legal requirements that must be adhered to when buying or selling a franchise. Legal issues are beyond the scope of this article. Make sure to consult your own attorney to ensure you are in compliance with all applicable laws.
Package up your proposal and send it via email as a PDF, or print it and deliver it in person or via a mail or delivery service. And be sure to follow up within a few days just to make sure it arrived and check to see if the recipient has questions.
You might like to know that you don't have to start with a blank word processing screen. A package like a proposal kit, which contains hundreds of topic templates and completed sample proposals, can make writing, formatting, and assembling business proposals much easier. Templates in a proposal kit will include instructions and suggestions for what to include on that page, so starting with those can make your writing more efficient and thorough. Make sure your proposal kit includes sample franchise proposals that deal with both buying and selling franchises. These samples will inspire ideas for what to include your own proposal.
Ian Lauder has been helping businesses and freelancers write their proposals and contracts since 1997. => For more somekeyword when writing your business proposals and legal contracts visit somekeyword
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