07-27-2006, 08:09 PM | #101 (permalink) | |
I'm Banned Join Date: Sep 6 2004
Posts: 13,921
Rep Power: 0 | Re: to franchise or not? Quote:
In the above post you said high pressure. In the other post you said well it's not a true high pressure. Im' not your customer and have no idea how you market. But you did post it as high pressure. You posted it not me. I think salons selling VHR beds as high pressure are mis-leading and it just sounds plain silly educate your consumer they will be worht more to you. | |
04-13-2007, 03:40 PM | #102 (permalink) |
Team TanTalk Join Date: Aug 12 2004 Location: ITA 2004-2013 / ASA 2013
Posts: 3,444
Rep Power: 30 | Re: to franchise or not? http://smallbusiness.aol.com/start/f...13182409990019 How to Research a Franchise Opportunity By Andrew A. Caffey Your assignment: Buy a franchise. Step 1: Take our crash course in finding the right franchise for you. Settle down, class. Today we're going to explore how to locate and evaluate a good franchised business. Not all of you will want to hold down a job for your whole working life. Let's have a show of hands: Who's dreamed of owning your own business? OK, that's most of you. Buying a franchise is one way to get there; some even say it's the easiest way. So take notes, ask questions, and for goodness' sake, please stay awake! Lesson No. 1: Is It in You? Not everyone who raised his or her hand will be happy as a franchisee. Owning a business is tough work, and most franchises have to be run according to a very detailed, strict set of guidelines. If you're a high-spirited entrepreneur who wants to do it your way without following somebody else's rules, you may want to look for an independent business to start or purchase; owning and running a franchise may frustrate you. So the first thing to do is to know what you want out of a business and whether it will bring you fulfillment. If you like the idea of running a business where you deal with customers at your own counter or provide services to businesses, or if you love sales or have writing skills, then keep these skills and preferences in mind when you start looking through franchise ideas. They'll help you zero in on the right business for you. Whether the business you get into is a franchise or not, it takes money to make it happen. Make a list of your resources, relatives you can approach to be investors, your savings and your investments. Then go talk to a few bankers. You'll find that some banks will lend you money for a business as part of a federal program where the government promises to pay back most of the money to the bank if your business goes toes up and you default. Banks love this; it lowers their risk when they lend money to new business owners. Ask the bankers about SBA loansùread about the SBA's loan programs, and take a look at a registry program where franchisors and the SBA have teamed up to streamline the application process. Lesson No. 2: Get Your Feet Wet One of the best ways to find out about the types of franchises available to you is to attend one of the franchise and business opportunity shows that appear regularly in most U.S. cities. The big ones can have up to 400 exhibitors. Attending one of these shows is well worth your time. You can kick tires, ask questions, gather brochures and try on ideas. The Internet is also a tremendous source of information. As students, you're experts at using the web, so you know that the hype-to-fact ratio will run on the high side. What's that? Well, you're right, that's also true of franchise trade shows, but at least you can talk to real people at a show. A big part of the challenge of looking into a franchise is getting your hands on information. I've got some good news: The franchisor is required to package the key investment information and hand it to you in a document called a Uniform Franchise Offering Circular (UFOC). It spoon-feeds you some basic information about the franchise investment. The first thing to understand about the UFOC is that it's actually three documents sandwiched together: 1) a 23-item narrative about the franchise offer, 2) up to three years of audited financial statements of the franchisor, and 3) the form of franchise agreement you'll be asked to sign. If you're serious about a particular program, you should carefully read this document. It's amazing how many franchise investors don't bother. It's required by law to be written in plain English, so don't be intimidated. I can tell you that every student who's completed this class has read the UFOC and understands its limitations and strengths. First, look at the UFOC's attachments. You may have no experience reading a commercial contract or a set of financials, but these will be indispensable to your professional advisors. Take the contract to a good business attorney; let your counselor look through it and explain it to you. If you and your attorney conclude there are points you can't live with, explore negotiating with the franchisor. Take the financial statements to an accountant trained to evaluate all those numbers. Your basic questions: Does the franchisor have the financial wherewithal to meet its commitments under the franchise agreement? And will it be around for a while? Your accountant can also use Item 7 information to advise you on your own financial planning for the investment. Now turn to the meat of the coconut, the narrative description of the offering. This front portion of the UFOC is designed to elicit all the important information you need to make an investment decision, and it's organized into 23 separate items. It provides information about the franchisor, the investment itself, the franchise system, and the rights and obligations of the franchisor and the franchisee in the program. Let's break it down:
Someone Get the Lights The sharp-eyed among you will notice that I've left out a few items from my discussion. These are lesser disclosure items that will speak for themselves when you crack open the UFOC. There's the bell. Thank you for your attention to this important topic. I wish you all success in your entrepreneurial ventures. Quick Study
Andrew A. Caffey is a franchise attorney in the Washington, DC, area and an internationally recognized specialist in franchise and business opportunity law. Click here for more resources from |
04-19-2007, 10:46 AM | #105 (permalink) |
Join Date: Aug 12 2006
Posts: 23
Rep Power: 0 | Re: to franchise or not? Advertising, Advertising, Advertising. I was independent for 3 years and then went into a franchise about 2 and a half years ago. And my numbers have doubled!!! Granted, do I give them a %, yes. But it has been well worth it. Everything from cost of supplies, products, and equipment is at a much better price. Structured plans and marketing! And name recognition is everything, I could not afford to do radio very much as an independent, now combined with the other stores, we are on the radio everyweek! |
04-20-2007, 09:35 AM | #106 (permalink) |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: to franchise or not? Both the above statements are true. The key to a franchise is whether it is a GOOD choice - for YOU - in YOUR MARKET. JUST because it is a franchise - does NOT mean they are a good operator, will give you good support, will help you find the best location, will be a strong advertiser, will get better pricing on equipment and products (and pass it along to you), etc etc. But a GOOD franchise will do all of that - and more. Some franchises are good in SOME markets - but not others. For example - they can have 200 locations, but if you are the only one in YOUR market and nobody has ever heard of the other 199 locations -- you might as well be independent Joe's Tanning Shack. The article posted by Movieking is great. There are few franchises in tanning today that I would even consider. And of those, I'd only consider them if they were in an area that could really take advantage of the "reputation" the franchise already had established. Bottom line - do your homework. Before you enter ANY business or industry, franchise or other, tanning or other! |
04-20-2007, 10:53 AM | #107 (permalink) | |
Join Date: Jun 7 2005 Location: United States Age: 44
Posts: 460
Rep Power: 20 | Re: to franchise or not? Quote:
Which franchise do you belong to if you don't mind sharing??
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04-20-2007, 08:38 PM | #108 (permalink) |
Join Date: Mar 31 2005 Location: US
Posts: 62
Rep Power: 0 | Re: to franchise or not? Yes, what franchise? Please provide your website, so we can check out your salon. Sounds like you got into an incredible franchise system!
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05-07-2007, 10:35 AM | #110 (permalink) |
Join Date: Apr 21 2004 Location: Frisco, TX
Posts: 1,502
Rep Power: 20 | Re: to franchise or not? A franchise is a great idea if you want to share your profits with someone else. You can hire a Consultant and pay a small one time fee or in some cases get the services free and be as successful as a franchise and not share your profits. Consultant or Franchise is much better than opening on your own without assistance. The lady that became a franchise and doubled business could have doubled her business by getting the assistance of a Consultant. Instead your choice was to take on a partner that gets a portion of your profits without investing in your business. |
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