Franchisee Questions Prior to Buying a Franchise

You have finally decided that the time is right to buy a franchise business. You have already researched the pros and cons of buying a franchise versus starting your own business. How do you make sure that you choose the right one for you?

A decent franchise will not only be a good idea, it will also be an idea that is under constant development. Find a franchisor that is committed to improving and developing the concept so that it can keep pace with their fast moving competitors.

Before committing to any franchise ask the following key questions:

What training is included within the initial franchise fee? Does the franchise provide you with a comprehensive operator's manual? Do they have training videos that you can watch in the comfort of your own home?

Does the franchisor offer proper telephone support? Can you call them out with office hours in an emergency? Do they have a decent internet forum where you can chat with other franchisees?

Is the product or service a good idea? Do you think you will be able to market it? Is there decent demand out there in your local marketplace? What are the unique selling points compared to their closest competitor? Will you get an exclusive territory?

Will the business fit in with your lifestyle? Can you work the hours required within the business? Who will cover for you when you go on holiday? Will you enjoy managing the business? Never start any business just because of money. Find a franchise that you will enjoy operating and then you will not dread going to work every day.

Bear in mind that a franchise is like any other business in that it will take time to start making money. How will you cope in the meantime? Do you have enough slush funds to keep paying the bills until your new business starts generating an income?

Speak to your accountant and get him to check out the figures for you. It is always a good idea to get a second expert opinion and who better than somebody that looks at facts and figures all day, every day? At the same time, ask your bank manager what he thinks of the idea. If your bank manager and your accountant both think it is a good idea, it probably is!

How are the royalty payments calculated? When and how often do you have to pay them? Are they within the normal range or are they excessive? Are there any other ongoing payments you need to make? Many franchises charge a marketing levy for national advertising so make sure you check this out.

Read your franchise agreement carefully before you put pen to paper. Is it a fair agreement? Does it protect your rights just as much as the franchisors? A proper agreement will clearly spell out the franchisors obligations to you.

A franchise at the end of the day will only reward you if you put effort in. No business runs by itself. You should always be able to count on the franchisor for full support and guidance but at the end of the day, you will have to work within the business and grow the sales.

Do you think you have what it takes to manage your own business?

The benefits of owning a home based business are opportunities that people now more than ever are taking full advantage of. We are now living in very exciting times due to the world economy never being like it once was. Granted, for some it may be challenging with loss of jobs and high unemployment but, for home based entrepreneurs it is an opportunity to solve many more problems (particularly financial) for everyone who is open while generating massive amounts of money. The following are major benefits that all should take advantage of.

1. Liberation/Freedom- This is probably the main reason why most home-based entrepreneurs enjoy their business. It is an opportunity to have full control over your own life. As a home-based business owner, YOU are the boss, thus you can shape your schedule based around your individual lifestyle and ambitions.

Time freedom is truly priceless. Just as equally exciting, is the potential financial freedom that it can provide because YOU determine how much you want to earn. This is especially true if you're in a network marketing/direct sales type of business because it gives the business owner the opportunity to earn residual income.

2. Tax Advantages- There is a number of tax advantages when using your home as a place of business. From deductions on home, whether rent or own, to gas mileage, to everything else in between, there is a wealth of deductions for the home-based businessperson. Everything that you use to operate your business is a deduction.

Some examples include: phone bill for talking with clients, electricity and internet to power the computer and reach potential clients through e-mail for marketing, gas reimbursement for going to meetings with potential clients, lunch for feeding clients, and this is only the beginning. However, please consult your Certified Public Accountant for a thorough evaluation of which deductions would be considered liable.

3. Empowerment- When you own a home-based business there is a whole new level of power that is yours. Compared to being at a traditional job or a traditional "brick and mortar" business, the home-based business entrepreneur does not worry about being told when to eat lunch, when to wake up in the morning to arrive by a certain time, deadlines, employee competence and trust, office politics, large overhead costs, or incompetent bosses. Rather, this privileged entrepreneur has full control over every detail of their life including flexibility with personal life.

Granted, for some who are use to being in a "worker bee" mindset all of this control could be scary. Nevertheless, on days when it's -4 degrees outside, when a child is sick and need caring for, or when paychecks are cut let alone pay raises, having a home-based business is priceless. More importantly, personal growth and development (the key to success) is greatly enhanced as you learn more about your business, others, and yourself.

These top benefits are only the tip of the iceberg. Although for many freedom and empowerment in every way imaginable is more than enough. As stated earlier, these are very exciting times where more people are choosing to take full responsibility and control over their lives and a large percentage are choosing to do that through being a home-based business entrepreneur. Consider the limitless opportunities that this growing movement can provide and be a dream achiever. Cheers to the home-based business entrepreneurs!.

About the Author

Naz Daud - CityLocal Franchises Internet Business Franchise Franchise Business Directory Ireland Internet Franchises.