Anyone have any experience with franchising? I am seriously considering buying into a franchise- a home cleaning services franchise and opening in Nj.
Answers
Mike,
A franchise is a good way to go in business for yourself and not by yourself. I was involved in selling franchises for a large retail organization and I discovered early on, that people with a military background were ideal candidates for franchising. Their work ethic, ability to lead and get along well with others, survive difficult environments and quickly learn the franchise system were all traits I found desireable for my prospective franchisees. That said, I would, as others have recommended above, seek out the advice of a good accountant and legal advisor to review the franchise agreement and business operating plan, including payments and franchise fees. There are a lot of really good franchise options out there, some costly, others not so, and many offer special programs and deals for veterans.There are also some systems you will want to avoid. The International Franchise Association http://www.franchise.org is a great place to begin your search. I would also speak with local franchisees in your chosen area and speak with them about the business. Most of these folks will be happy to fill you in on what they think of the company they are working with. In franchising you are buying a proven system and generally, the degree to which you can live within that system will determine your ultimate success.
If you're going to buy into a franchise, make sure like any business you check references. Find a reference through the company, that way you hear from someone who they prefer you talk to, then find someone in that business elsewhere who will give you their 2 cents. Normally this is not harder than searching on the Internet.
FranNet www.frannet.com, is a National Partner of SCORE. They will assist you, (there are discounts for Veterans) in selecting a franchise, and in helping you to qualify. They come to you without any charge as they are paid from the franchisee out of the fee which you would have to pay anyway and not have anyone in your corner. www.score.org has a lot of veteran info, and about franchises. Most local Score chapters offer free workshops (Vets are free even if there is a charge) on many biz subjects. Good Luck, and Thanks for serving. (I'm also a Vet).
Check out www.navoba.com National Veteran Owned Business Association.
I had a very successful franchise for ten years and sold it. Mike, it is like everything else, there are good ones and bad ones. It is very important to check them out thoroughly with government agencies, federal and state, to determine the types, number and truth about franchise representations, and to uncover any information they are not providing. I would get a list of franchisees and contact information. Try and find out if they are happy, profitable, how valuable they think the Company name is to the consumer, advertising and brand support. Our company representative's work actually helped make our franchise successful with advertising and marketing support. What kind of complaints, shortcomings and strengths the Franchisor has is very important. In addition, I would want my accountant to check their financial credibility. You don't want to give a franchise fee to a company that may be going under, or doesn't have the financial wherewithall to provide assistance and value for what you are paying. Find out about the programs the company offers to its franchisees and talk to the existing franchisees to see if it is true and if the programs they are talking about are helpful. If I can help, you can email me at 813-470-8556.
Ok what is your contact info?
If you would like input on the Disclosure Process, Due Diligence, etc please feel free to contact me
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