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Franchise Business Plan Sample

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When you buy a franchise opportunity, you are buying much more than a just a business. A business which stands a higher chance of success compared to people who choose to start a business on their own. You are also buying into a business which has strict control and regulations as to what you can and can not do.



The franchisor will insist on certain quality standards being maintained. This is so that the end consumers receive a high standard product delivered in a way that they are accustomed to at other outlets.

You will be allowed to make small changes in the way you run your business compared to other franchisees, but the business will have to operate to a high standard and all the major decisions on the management of the business have already been taken.

Why is it like this? The franchisor has probably spent many years if not decades creating a business that works and can be sold successfully as a franchise. They have usually invested heavily in marketing materials, advertising campaigns, shop floor layouts logos and branding.

A poor franchisee can have a very detrimental affect on the group as a whole. The press loves it when something goes wrong in business and is quick to spread the news. It is essential for the franchisor to spend some quality time on the poor performing franchisees as the franchise network is as strong as the weakest link.

In return for all this support and ongoing training programmes the franchisee will have to pay a franchise fee at the outset and ongoing license (royalty) fees. These payments can make a huge dent in the profitability of the business so it is essential that you choose a franchise opportunity that not only has high margins but also decent turnover.

In the franchise business a prospective buyer has to tread extremely carefully. Not all franchises are the same. The market place is also evolving very rapidly. What may have worked as a business only a few years ago might not be a viable business opportunity now.

It is imperative that the franchisee takes advice about the current market place before buying into any new franchise. Trade reports are very helpful in this capacity and can be found very easily by a qualified accountant.

A decent franchise agreement is also essential. This should protect the franchisee as well as the franchisor. Too many agreements are biased towards the franchisor and these should be avoided at all costs. If you are not legal speak savvy then it is very important to get advice from a franchise lawyer.

Some franchise businesses which were very successful in the past are now struggling and a few will fold. Make sure that your accountant has a look at the financial reports of the franchise business that you are thinking of buying into. You need a strong franchisor on your side for many years to come.

There are even restrictions in the franchise agreement which cover in detail the processes involved in selling your business. The franchisor has to be satisfied that the buyer will make a suitable candidate for the business. They will charge the franchisee a fixed figure or a percentage of the final price achieved to cover their costs associated with creating new legal agreements, helping with the smooth transfer, doing credit checks on the potential buyer and providing long term support to someone who might not have any experience in managing a business.

What happens when a franchisor rolls out a new product that fails spectacularly? Usually the greatest loss is incurred by the franchise network. It is essential that these products are trialed in certain locations before a nation roll out.

Often the need for profit and the desire for turnover can lead to conflicts between the franchisee and the franchisor. This is usually due to the way royalty payments are calculated in the franchise agreement. In some case the franchisee could be forced into increasing their business even though they are happy with the current turnover and profitability of the business.

There are many other disadvantages to buying a franchise opportunity which I will cover in later articles. In all fairness though, if you can find a decent opportunity and take heed of all the advice in this article you should be on the way to a successful business life.
Franchise Business Plan Sample
The current recession has undoubtedly spurred an unending number of articles, analyses, and commentaries on corners of the business world that haven't been struck as hard by the economic slowdown as others. Everyone is looking to make some more money while things are generally tight, and finding an unaffected business opportunity is an utterly logical way of doing that. It can often take a lot of searching, though: particularly because writers continue to spotlight the same handful of business sectors over and again. Home repair, car repair, healthcare, education, and a few others keep turning up as viable businesses during recession, but that's old news. At least one is often overlooked: entertainment.

When researching recession and the industries that have historically thrived under its conditions, one of the first things that comes up is a seedy list of taboo industries like liquor and prostitution. It may seem a little inappropriate to mention it, but there is reason for that trend. These industries survive because people weighted with the troubles tied to a lagging economy just want to escape reality, at least for a time. And that is the same root reason for which more innocent forms of entertainment succeed during economic dry spells as well.

There is one caveat to this pursuit of escape, however. Even though people are looking to get away from their troubles, they still remain relatively cognizant of their economic condition, which makes them reticent to go hog wild on entertainment luxuries they may have once indulged in. High-price items like concert, theater, and sports tickets all take a back seat to cheaper forms of entertainment.

During the Great Depression, it was incredibly common to find theaters packed to their breaking points on a regular basis, because 15 cents for a movie, though not cheap, was a price people were willing to pay to get away from life. Today, with the prominence and monetary value of at-home entertainment options, people are just as likely to stay in, rent an action flick, watch their sitcoms, or gather round the gaming console and take each other on in a shoot-em-up.

In fact, this is truer than anyone could have foreseen. With only two months remaining to the end of 2008, the cumulative growth of the American economy this year is expected to reach only 2.4%, which in itself is pretty pathetic. But, when you compare that to the year's growth rate of the videogame industry, it could almost make a grown businessman cry. By end of year, the gaming market is expected to have grown at least 20%. And videogames aren't alone; DVD sales and rentals are up too. In its first week on the shelf, the Blu-Ray version of the Movie Iron Man set a new record for sales, moving over 500,000 copies, and the regular DVD version of the movie sold over five million copies, amassing just under $100mil in that same week. What makes that truly amazing is that it was also the week that Congress decided to throw $700bil to bail out the stock market.

The clear conclusion is that though the vast majority of the American business world is suffering immensely under the weight of economic decline, at-home entertainment simply is not. Now, readers could take that only to mean that Blockbuster, Nintendo, and Best Buy are laughing themselves all the way to the bank, but that's only half the story. Below are a list of franchises that specialize in this booming industry as well, franchises that an entrepreneur would be wise to investigate further if 20% growth sounds appealing.

Play N Trade

With over 500 stores currently in operation around the world, Play N Trade is universally recognized as the dominant retail franchise in videogame industry. The goal of every store is to provide the best gaming outlet with a comprehensive stock of products (including retro gaming gear alongside today's trendsetting merchandise) and an enjoyable atmosphere in which customers can sit down and try games before purchasing. Franchisees work semi-absentee, and the corporate center does everything within its power to support each franchise, ensuring fun for franchisees, employees, and customers.

The Exchange

This franchise has one goal and one goal only, to provide consumers with the greatest selection of movies, music, and games available. To date, 30 years of experience in the industry has culminated in a method of operation that includes one of the most remarkable POS computing systems available, known as Exchangeware. This custom program makes the process of purchasing, pricing, trading, and selling media as simple and streamlined as can be. To boot, this franchise business comes with a complete startup package, making life for the franchisee as simple as possible also.

This home based business has become increasingly popular in recent months, as more and more entrepreneurs recognize how profitable it really is. Franchisees, who primarily work from home, stage automated DVD rental machines at various everyday locations like grocery stores and shopping centers, where passing customers can then insert a dollar and rent a new movie for the night. There is virtually no overhead, little upkeep, and it can be run entirely solo.

Gamer Doc

Though Gamer Doc is the newest franchise to the videogame world, the central management team has over 30 years of cumulative experience in matters of franchising. This combination of long-term knowhow and newness to the field make this business for sale one of the freshest and most promising business opportunities currently on the market. What they have made is a retail establishment that has the knowledge to serve hardcore gamers but also the simplicity and hospitality to cater to first-time gamers who may otherwise be turned off to the industry.

There are many ways to go in the entertainment world, but the fact remains that entertainment is a solid source of income even while times are generally tough. Of all industries, this is the one that has what it takes to not just weather a recession, but take full advantage of it.
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About Author
Both Naz Daud & Candice Clem are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Naz Daud has sinced written about articles on various topics from Real Estate, Ezines And Newsletters and Business Promotion. Naz Daud
Brief History Of The United States Of America
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