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What is a Franchise Program?
A successful business that wanted exposure as well as make it's services available to more people in more locations. They offer their name and procedures for success for a fee to qualified people or organization to duplicate what they have done. McDonalds, Radio Shack, Fast Lube, your local gas station, grocery store, the list is endless.
The immediate benefit is name recognition during your startup. Your customers will not know if you are a McDonalds store or a private franchise store. You normally will have a very definitive set of rules and procedures to follow and monthly fees, but the business is yours as long as you stay within the franchise agreement.
By nature, a franchise, duplicates the original business to maintain the name recognition with the customer. The business will appear much like another located halfway across the country and that is what adds greatly to the success rate. This provided of course that the person owning the franchise store knows how to manage a business once the doors are opened to the public.
A person thinking about opening a franchise store should watch very closely how the franchise agreement reads! FEES vary dramatically from one to the other. Just because it is a well recognized name does not mean it will work in your area. Know what the true cost of the franchise will cost you. Both initial and ongoing cost. Also have a full understanding of your exit rights and if you can resell the franchise at that time.
Have your attorney at your side during the process of making a franchise agreement.
A franchise business is the same as any other business. It needs to follow all rules for it's formation and actual startup. It must be managed just like any other business. If you do not have the knowledge or abilities then you must bring someone onto your payroll that does. You are ahead in the game though by going with a name that will be recognized by your prospective customers in your area. The Radio Shack name is much more recognizable than Bill's Electronics.
Additional thoughts
Two of the most successful manager trainee programs are with Radio Shack and McDonalds. They both have excellent programs and reference to their excellence can be found in most business management seminars.
ALSO these two corporations offer franchise programs that will almost always thrive if the franchisee has a background in business management and has good people skills. I have not checked recently but the last time I did, the Radio Shack franchise was one of the very best and cost effective ones to apply for. They even had a buy out program available just in case it was not what it was thought to be when going into the program.
I just found a website you may want to look at, Small Business Opportunities. Has a listing of small business opportunities for sale. Might be what you are looking for. Check it out.
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