What is a Low Cost Franchise?

Even if they have less than $50,000, budding entrepreneurs may be able to enjoy the flexibility of being their own boss with this level investment. Franchise fees and start-up costs vary with different franchise opportunities, according to this article. One way to cut the cost of starting a franchise is to eliminate the costly commercial real estate or product inventory common in most business start ups by considering a mobile business or van-based franchise. Pet lovers turning a love or dream into a mobile pet grooming business is one such example.

Two Way Franchise Boom in the Philippines

Major foreign brands such as International House of Pancake of Canada, Denny’s of the United States and Planet Smoothie are recognizing the Philippines as the most logical base for their operations in Asia according to this article. One reason is a record 30,000 visitors and 350 exhibitors anticipated at the 18th edition of the Philippine International Franchise Conference and Expo slated this July at the SMX Convention Center. This is double the number in the US Franchise Show, the biggest in the world.

This is not expected to be at the cost of local franchising in Manila. The Philippines has the second-highest number of franchisors globally at 775, and franchisees at 100,000. Many competitive Philippine brands have entered the foreign market in recent years— Jollibee, Max’s, Oishi, Red Ribbon. The foreign brands present competition for Philippine homegrown brands.

Maintaining The Franchise Brand

Since the franchise brand is often reflected in how the franchisee operates the franchise, in addition to good people skills, the franchisor should consider how hard the franchisee is willing to work to make the franchise a success. Good training may compensate for certain business inexperience, but the desire to work hard especially during tough economic times can help give a franchisor comfort that the franchise will remain stable or continue to grow. Along the same lines, a goal-oriented franchisee can help the franchise as a whole move forward. Needs and times change and forward-looking franchisees help a franchise stay relevant.

Is Now A Good Time to Start a Franchise?

The basics for starting a business remain the same in good and bad times. Despite the current economic climate, over 40% of retail sales are still spent at franchises. There's still money to be made if you do your homework and stick to the sound advice of franchise lawyers and other professionals who can you make sure you are meeting your objectives. You could lose your shirt with a franchise as you could any business if you do not consider basics such as making sure that you are not undercapitalized. Running out of money is a common reason why some franchises do not do well. But the current economic climate is not an automatic reason to not consider a franchise. Owning your own business provides some degree of self-reliance and relief that one is not totally dependent on an employer for a livelihood. There is also a large available labor pool given the number of layoffs. You may have access to talent not previously available. Just because conventional sources of credit might not be available, you can consider self financing , family, friends or investors.

Researching the Franchise You Would Like to Buy

Deciding to purchase a franchise is a major decision. We have mentioned in other posts the importance of performing good research if you are a prospective franchisee. Research for your new franchise should include visiting franchises to help see if some of the things that made you attracted to the franchise exist in reality. This isn't always so easy to do, but not limiting yourself to the franchises selected by the franchisor for evaluation may help. Try visiting franchises in different locations. That way you have an opportunity to see how they operate in different locations and whether the franchisees have the same experience. That selection should also include franchisees who have been in operation for some time and those who are new.

Positive Sales for Cleaning Franchise

In the cleaning sector, one franchise is showing that American consumers have not given up on spending altogether in the current state of the economy. According to this article, many customers are still seeking out Molly Maid, a leading residential cleaning service franchise, for their home cleaning. The franchise ended 2008 with a 5 percent increase in sales over the previous year. As if this weren't enough, an additional 17 existing franchise owners decided to expand their territories. Residential cleaning represents a $3 to $4 billion industry.

Tips for Running Your Franchise

No doubt there will be many articles recommending the purchase of a Franchise as a good opportunity during bad times. A successful franchise depends on many factors and one is advised to seek the counsel of a franchise attorney and other professionals. There is also work that a prospective franchisee can do on his or her own so that the decision to franchise is more likely to prove sound. Running a franchise can be very rewarding and a solution for those who are no longer employed. The successful franchises we see are ones where the franchisee:

• Works hands-on in the franchise. Especially at the start of the franchise, there is alot to learn and even if a franchisee plans to delegate certain responsibilities, it pays to know everything first hand.
• Performs research prior to purchase of the franchise.
• Forges mentoring business relationships

Volatile Economy is a Mixed Bag For Franchises

A downturn in the economy freezes some individuals so that they postpone any new purchases while others view it as an opportunity or challenge. Many corporate refugees use severances or retirement packages as a source of credit for a franchise business. With so many different industries making up the economy, not all businesses flail around when the economy does not fare well in general. Indeed, unemployment sometimes spurs those to go where they would not otherwise have gone.

Interest in entrepreneurship tends to increase when people face unemployment and have no other options. Many people consider starting small businesses and franchises. Indeed, some sectors of the economy do not see a difference in a downturn or may even see increased consumer demand. Many people find that these areas coincide with personal interests as people start franchises involving handyman services, fitness, pet care or elder care with require relatively less capital than other types of businesses.

California Franchise Expands Seeking New Franchisees

We are always interested in these times in expanding franchises that are hopeful about the economy and expanding to create new opportunities for aspiring business owners. Of course, it's also a way of trying to track if there are certain trends in various industries that signal future growth possibilities. According to this article, the owner of a national bookkeeping franchise that originated in California "now has more than 150 locations. Based out of the Washington metropolitan area, it has expanded into surrounding states." The franchise is actively looking for interested franchisees. Greg Jones, chief executive officer of Bookkeeping Express, states that his business model "is based on the need among small businesses for a national organization that provides bookkeeping services.... Often, small business owners choose between a higher-priced CPA firm or an independent bookkeeper who may not have the entire skill set that can help grow the business."

Local Phoenix, Arizona Franchisees Consider Fro-Yo Concept for Franchising

If you're a regular trend setter in New York or California, you've probably heard of the new frozen yogurt-calorie conscious new taste developed from a concept imported from South Korea called "fro-yo." It has a more tart taste than the frozen yogurt. Though it has been around for a while, according to this article, metro Phoenix has not seen either chain open here which has "left the field wide open for several local entrepreneurs who think they know a good thing when they taste it. A couple of these new owners of businesses are hopeful their ideas will turn into franchises with national outlets." One set of siblings has seen some success opening its first Ice Tango early this year in north Scottsdale and a second store in Scottsdale's Hilton Village. The sister-and-brother team Susie and David Cha have found franchising the way to go.
"It also took the siblings much more than $300,000 - plus the expense of creating the franchise agreements. Franchise cost, the Chas said, will require less than $300,000, which is relatively low, but, as David Cha said, "The idea is that everyone can make a profit. We're really flattered that people want to franchise. And we should be ready to do that soon." You can find a couple of local Fro-Yo stores at Chill 1250 E. Apache Blvd., Tempe. 480-698-6101 and Wildberri Yogurt 401 E. Bell Road (Seventh Street at Bell Road), Phoenix. 602-298-6331.

Local Handyman Service Expands Across The US

We love stories about local regular services that expand into franchises that provide a needed service to regular folk. HandyPro Handyman Services appears to be one such franchsise. According to this article, "HandyPro is a member of the Better Business Bureau with no complaints and participates in CARE, the BBB’s Customer Assurance Program. It was voted one of the “101 Best Companies to Work for in Detroit” in 2002." The franchise specializes in handyman services, small repairs and maintenance jobs for homeowners and commercially owned buildings.

California Franchise One Hour Heating & Air Conditioning Voted Best for 2008

According to this Article, "One Hour Heating & Air Conditioning ranks #1 as the nation's fastest-growing franchise according to Franchise Times(R) magazine's "Fast 55" list (2007) and ranks #5 on Entrepreneur magazine's list of Top New Franchises (2008)." The franchise offers customers heating & air conditioning services. Readers of The Placer Herald in California selected the One Hour Heating & Air Conditioning Franchise as Best of the Best for 2008 in the publication's annual listing of consumer-choice winners.

UPZS Franchise Presents Franchising Opportunity For Latino Families

According to this article, Unique Pizza and Subs Corporation (UPZS) "has announced that it plans to assist the first 30 Latino families in raising the necessary capital to open their own successful Unique Pizza and Subs establishments. Their UPZS franchise will range from full sit down restaurant locations to the new Unique Pizza and Subs mobile pizza kitchens. Any race is invited to participate but our initial plan is to market to the Latino community."

Franchise Tax Board warns of Online Scams

Taxpayers are being warned by the Franchise Tax Board of two scams involving the tax board and identity theft. According to this article, "The first scam involves an e-mail "phishing" for taxpayer data." This type of scam works by attempting "to lure people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which may be used to steal that taxpayer's identify."
Another scam "involves a phony letter informing the taxpayer his or her tax return may be audited. The letter refers the taxpayer to a fake FTB address in Georgia. Both the e-mail and the letter contain misspellings and grammatical errors."
Taxpayers who receive such information should contact the FTB at 800.852.5711.

Private Investigations Franchise To Exhibit At The International Franchise Expo

If you have executive and management experience and business savvy and people skills, L&W Investigations is actively pursues franchisee candidates with this expertise. L&W Investigations, the foremost private investigations franchise specializing in insurance fraud. The franchise will be exhibiting at the 17th International Franchise Expo (IFE), sponsored by the International Franchise Association (IFA), at the Washington Convention Center in Washington, DC April 11-13, 2008. Accoring to this article, "L&W Investigations offers a franchise opportunity like no other here at the IFE show""a private investigations firm specializing in insurance fraud," said Steve Butler, franchise owner, L&W Los Angeles. "Besides being a unique franchise offering, you don"™t need a day of experience in private investigations to be successful. I know in my own case, the skills I used in my career as an HR executive are a perfect fit in running my franchise and I know other people with sales and management experience can also look at L&W and see a great fit for the experience and skills they bring to the table."

California Franchisee Fitness USA enters Franchise Agreement with LA BOXING

Fitness USA Inv, a health and fitness gym, is the wholly owned subsidiary of Montana Mining Corp. The company has entered into a franchise agreement to "become the exclusive franchisee of LA BOXING for the Beverly Hills/Brentwood area of Los Angeles, California, US" according to this article.

Home Inspection Franchise Makes Franchise Business Review Top 50

The Franchise Business Review (FBR) surveys thousands of actual franchise owners to evaluate their franchise systems. Every year the FBR announces its Franchisee Satisfaction Awards which highlights the franchises that received the highest praise from their franchisees. Some of the large systems making the top 50 list include The Maids Home Services, Carlson Wagonlit Travel and Sotheby's Real Estate according to the FBR list. According to this article, made the top 50 franchise list again and "broke into the top 20 on this elite top 50 list". HouseMaster was the first home inspection franchise and has been in operation since 1979.

Franchising Entrepreneur Finds a Way to Make Millions in a Bad Economy

The Dublin Franchise Sliderobes sells made-to-fit home improvement furnishings. Its owner Mick McAleese claims that he used the "serious" mistakes that his company made which included poor location choices and inadequate management to turn the business into a multi million business in the middle of Dublin's recession in 1983. According to this article, the company underwent a process of intense assessment and "saw franchising as a low-risk road to expansion.” McAleese explains the company's appeal to potential franchisees. “Our big sell when attracting franchisees was, ‘look, we’ve got this tried-and-tested business formula and we’ve made all the mistakes for you so you don’t have to. We’ve found the best way of doing things’”. When looking for the right franchisee, McAleese says the company looks for "franchisees with solid management experience." He believes that their experience best helps them cope with the challenges of running a business.

Is the Fast-Food Industry Losing its Grip on Franchising?

The Wall Street Journal's recent evaluation of high-performing franchises, appears to indicate that fast food franchises are loosening their grip on the franchising industry while franchises in the services industry, such as health and fitness, security and consumer services are taking their place. According to the article, "fast-food and casual-dining businesses, while still showing strength, with eight names on the list, also are facing pressure from wage and food cost increases. To lower operating costs, several food franchises already are shuttering some locations." Among the high performers on the WSJ list were Home Instead Senior Care, Abbey Carpet & Floor and The Maids International. According to the article the list is diverses. "In fact, there are now more than 230 lines of businesses that do franchising, according to FRANdata, an Arlington, Va., independent research firm that helped analyze franchise data from the past three years and compile the list."

New Vice-Chairman of the International Franchise Association’s Marketing and PR Committee Elected

Scott Frith , Lawn Doctor's Vice President of Marketing and Franchise Development was recently elected vice-chairman of the International Franchise Association’s Marketing and PR Committee. The announcement was made at the IFA's annual convention that attracted 3,500 franchisors. According to this article, Frith announced: "The mission of the IFA is to protect, enhance and promote franchising. One way this committee can serve the association is to better educate the public and policy makers on the impact of small franchise businesses have on the economy every day," advised Frith on the focus of his new position. "Franchising is the engine that drives commerce in the United States today, and with that momentum, the IFA can serve entrepreneurs looking for long-term stability."