Franchise Opportunities - Many Franchisors Are Looking At 2009 with More Advertising

Let's face the reality of the times. The US government has officially admitted to over 2 million jobs lost in our current economy. If this is true, what does it mean besides the obvious for the potential of buying a new business or franchise opportunity?

The fact is that times like this never last forever and right now may just be a perfect time to take the initiative to investigate the potential of owning your own business…whether you are affected by the downsizing or not. Interest rates are lower than usual and with a new Presidency and administration right around the corner, the time might be better than believed to start a new business.

As the year unfolds, we are going to be keeping a close eye on the franchise scenario and doing our best to keep you informed about franchise opportunities that may be worth learning more about.

While the economic downturn ripples through the US economy, numerous Franchisers are looking at the challenging business landscape and ramping up ad buys.

Take Dunkin' Donuts for example. They are launching a $100M ad campaign that represents an increase of more than 5% over 2008. I believe that what they are saying is that we are going to fight even harder to maintain and even increase market share.

In so called "normal times" a 5% increase would also be considered normal. In these times of relative uncertainty, 5% sends a definite message. It speaks to a bullish position on the market and is exciting to see taking place. Remember that even though Dunkin' Donuts has 5,769 U.S. stores that are relatively well positioned, they are right up there on the front line doing what they do best bringing in consumers for coffee and donuts.

The same levels of ad expenditures can be seen across the board in some areas and demonstrates that many Franchisers share the same thinking i.e. yes, it is going to be a challenging year but we are going to do our best to maintain and surpass past performance.

I say that is what we need more of. A positive attitude, a smart business plan and perseverance can really reap big rewards even when the environment is less than optimal.

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A Checklist of Questions To Ask Before Buying a Franchise by James Davis

Franchise businesses such as Wendy's, McDonald's and Jack-In-The-Box are booming. The people setting up franchise ideas and businesses know a good thing, and are really promoting this idea. Franchises for just about every conceivable kind of business are being sold in ever increasing numbers.

Some franchises are very good. They treat both the franchisor and the franchisee very well. Others are very one-sided. Still others are almost total rip-offs that trap one into paying ten to fifty times the actual value of the business idea, equipment, or whatever it is they are trying to get you to buy.

Before putting any money into a franchise, you should investigate everything completely. We've prepared a list of questions you should be asking, and should get satisfactory answers to before investing.

1. Has your attorney studied the franchise contract, discussed it completely with you, and do you both approve it without reservations?

2. Does the franchise require you to take any steps which are either illegal or even border on illegal, or are otherwise questionable or unwise in your state, county or city?

3. Does the franchise give you an exclusive territory for the length of the franchise period, or can the franchisor sell a second franchise in your territory?

4. is the franchisor connected in any way with any other franchise company handling similar products or services?

5. If you answered yes to the above questions, what is your protection against the second franchising company?

6. Under what circumstances can you end the franchise contract, and at what cost to you?

If you sell your franchise, will you be compensated for your goodwill or will it be lost to you?

8. How many years has the firm been offering you the franchise been in operation?

9. Does the company offering you this franchise have a reputation for honesty and fair dealing among its franchisees?

10. Has the franchisor shown any certified figures indicating exact net profits of one or more of its members, and have you personally checked the figures with these people?

11. Will the franchisor assist you with: a) A management training program; b) An employee training program; c) A public relations and advertising program; d) Capital; e) Credit; f) Merchandising ideas?

12. If needed, will the franchisor assist you in finding a suitable location?

13. Is the franchising firm adequately financed so that it can carry out its sated plans?

14. Does the franchisor have experienced management, trained in depth?

15. Exactly what can the franchisor do for you that you cannot do for yourself?  16. Has the franchisor investigated you carefully enough to assure itself that you can successfully operate a profit to both of you?

17. Does your state have a law regulating the sale franchises, and has the franchisor complied with that law to your satisfaction?

18. How much equity capital will you need to purchase the franchise and operate it until your income equals your expenses?

If you can get the answers to each of these questions, and those answers satisfy you, then you're probably thinking about buying a pretty good franchise deal. However, if you're in doubt about any of these points, be sure to check it out and know the answers for certain before you invest or sign anything.

Buying a franchise can give you a measure of security, and in some cases, sure-fire profits. Business surveys show that fewer than 20 percent of all franchised businesses fail. This is in comparison to a 60 to 80 percent failure rate for ALL new businesses started in this country each year.

Information regarding specific franchising ideas can be found in the franchising directories, which are generally available at the local library. Often there will be a notice posted in franchise outlets themselves.

If you can afford the entry into this business, statistics are on your side. You are now armed with some CAUTION and STOP and GO signs!

About the Author

For more information Click Here - A Checklist of Questions To Ask Before Buying a Franchise.

This article is shareware. Give this article away for free on your site, or include it as part of any paid package as long as the entire article is left intact including a live link. Copyright © 2009 James Davis

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Owning a Franchise: Getting Ready by Art Gib

With the recent economic events and cutbacks, individuals are looking for more creative ways to earn a living and become financially independent. Franchises may seem like a great idea: own your own company, create your own hours and reap the benefits. But owning a business like this is a lot of work, and should not be entered into lightly or hastily.

No matter what type of business you choose to become a part in, it requires a whole-hearted commitment and your most precious commodity: time. Your hard work will be needed to make the venture profitable. Here are some things you should know before you consider purchasing.

You'll need to remember that as a businessman, you don't only participate in the start up and then reap the rewards. Running a business is hard work, and you must be comfortable with all aspects of the business, from flipping burgers if it is a fast food franchise, to keeping accounting records. A high level of commitment is necessary, and if you want your venture to be successful, your time will be needed.

Consider how you deal with the general public? Most franchises offer goods and/or services to the public, and if your customer service skills leave much to be desired, you may want to rethink the desire to own a franchise. Remember that dealing with the public can be draining and tough, so if you are easily offended or don't have a toughened skin, this career is not for you.

Also examine if you are happy with the location that you are currently in. In opening or owning a company, you are making a long term commitment to the location in which you currently live, and if you were planning a move in the next five years, don't purchase a franchise. Franchises need a longer time than average businesses to become profitable, so make sure you're in it for the long haul before starting your relationship.

Have a clear picture of what is expected as far as daily operations involved with owning your own business. If the thoughts of accounting, insurance for franchises, hiring and firing employees and managing day to day tasks sound exhausting, it's because they are. Before purchasing, ask plenty of questions of the business owner as well as asking questions of other owners on your area. Go into the experience with your eyes wide open as far as the workload goes.

About the Author

All Franchise Insurance (http://www.allfranchiseinsurance.com/) offers quotes on insurance for franchise owners. Art Gib is a freelance writer.

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