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What is a Franchise?
One of the easiest ways to start your own business involves buying a franchise.  Successful companies sell or lease their business concepts to individuals or groups, thereby allowing someone to capitalize on a well-recognized brand name.  Every industry from fast-food restaurants to cleaning services to child daycare is chock full of franchise opportunities.  All the average person needs to find success is sufficient capital, a willingness to learn, and a solid work ethic.  As a franchise owner, you own a piece of a business that already enjoys proven success and a name the public recognizes.

Examining a Franchise Opportunity
With the thousands of choices out there, and a significant investment in time and money required to make the business a success, selecting the proper franchise is vital.  It can mean the difference between remarkable financial success and mediocre results, or even failure.  Many factors should be considered when deciding which franchise to buy, but your first step should involve self-examination.  Ask yourself the following questions:

1. Do I enjoy dealing directly with the public, or am I more comfortable working behind the scenes?
2. Should I operate a retail-type location, a mobile business, or something I can do out of my home?
3. What sort of industry interests me the most?  Where does my experience lie?
4. How much money do I have to invest in a franchise?
5. What are my financial goals, both personally and in business?

Research—Research—Research
The next step involves finding out as much as you can about the different franchise opportunities that exist in your target field or industry.  Are you interested in car repair?  There are hundreds of companies that offer franchises in that area.  What about fast food?  You will literally have thousands of choices.  Making the right one is imperative.  In addition to looking at Web sites and sales brochures, make a point of talking to people in the business.  Chat with those who own or manage similar establishments.  Even individuals who operate franchises in entirely different fields can give you valuable information as to what they went through in starting their own business.

Checking out Prospective Franchisors
Interviewing is a two-way street.  Once you have narrowed the field to several likely candidates, you will want to know as much about them as possible. They, in turn, will ask you plenty of questions as well.  If they don’t, watch out!

Review the franchise paperwork—having an attorney’s opinion won’t hurt—to understand exactly what you get for your franchise fee.  Find out how successful their individual operators have been, including a list of those who have failed and why.  Understand what sort of costs you will incur to open the business, how much operating capital you should have on hand from month to month, and what sort of profit margin you should expect.  Discussing these findings with an accountant can help you figure out if the numbers you’re hearing are realistic.

Meanwhile, the franchisor will want to know a lot about you—your experience in running a business, the amount of capital you have on hand, your expectations for the future, and your ability to weather start-up challenges until the business gets off the ground.  Any worthwhile company wants their franchisees to do well.  Your success puts money in their pockets and also serves as proof to other prospective buyers that the enterprise is worth owning.

Working with the Parent Company
Just as every type of business is different, so is every deal between franchisor and franchisee.  Here are some of the things a franchisor can or will offer:
· Real estate site selection
· Management training
· Employee training
· Marketing materials, which may include an ad budget
· Bulk-purchase discounts on equipment, inventory and supplies

Plan for Success
Owning a franchise allows you to capitalize on the success of others, learn from their mistakes, and enjoy broad public appeal by representing a name that is trusted.  By doing your homework, you will find the right opportunity that fits your budget, your personality, and your lifestyle.

Looking to buy a franchise? We have 100s of Franchises For Sale and Business Opportunities. Check out our Franchise Opportunities and get FREE franchise information today!