Saturday, May 8, 2010

Avoid the Pitfalls of Franchising--the UFOC

Even someone who is not entirely business savvy can take steps that increase the chances of having a successful franchise. Sadly, many franchisees wait until they are in mid operation perhaps years after having made a heftly financial commitment before they do the legwork that is usually far less costly when performed up front. Some of the lessons learned come from reviewing numerous cases that have gone awry. Franchise lawyers can be an excellent source of information of what to do and not do prior to the purchase of a franchise. One activity that is essential is careful review of the Uniform Franchise Providing Circular (UFOC). It is important to review the entire document. Some of the key provisions may be in small print or in provisions that may not provide good guidance as to the content in the subject line header. Other provisions may appear obvious, but require clarification by a legal professional who is experienced with franchising. Thinking that you know something when you do not could be as dangerous as proceeding without even looking. It is highly unlikely that any franchisor would proceed without documenting the provisions that take care of their brand and business. A franchisee should make sure that he or she proceeds in a like manner making sure that his or her interests are also protected.

Thursday, May 6, 2010

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.

Tuesday, May 4, 2010

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.