Owning a franchise is a great business move, but all businesspeople need to educate themselves. Starting a franchise doesn't have to be a pain staking process, think of it as a journey as you properly prepare background checks, complete your research, and investigate the company. Your happiness for your future depends upon it.
One of the greatest ways to work for yourself is to invest in a franchise. There are many different types of franchises out there in the world to choose from. Normally one would think of the fast food chain, but now there are online businesses, pet setting, boutiques, etc.
So why not start working on that dream and start shopping around. You can start with the Franchise Opportunities Handbook, published annually by the U.S. Department of Commerce describing more than 1,400 franchises. Contact those that interest you for your future.
If you have an idea of what you would like to do, see if there is a local franchise in your area for sale. Call and make an appointment with the current owners and arrange for an interview with them in person. Ask them about their personal experiences with the company and why they are leaving.
The world is growing and diversifying at a fast pace, so it is more important than ever that you choose to go into a business for yourself that truly fits you. When you feel comfortable doing what you like, your business and profits will show it. If you are willing to work, have done your research and your heart is in it, the rest will follow.
The Federal Trade Commission's Franchise and Business Opportunity Rule requires franchise and business opportunity sellers to give you specific information to help you make an informed decision. The seller must give you this disclosure document at least 14 business days before you commit yourself legally. This is a great safe guard.
Before settling for that one perfect job, talk to many existing franchsiees in your chosen field. Gain a wide range of advice from others already in the business. This is valuable information you cannot purchase anywhere.
If the seller does not give you a disclosure document check with your attorney or accountant. The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to help the consumers. Check with a professional before you sign any documents.
There are many people who claim that you should go ahead and register a corporation in a more business-favorable state, such as Delaware or Nevada, two of the current favorites. In many cases, this is not true - you're much better off registering your corporation in the state where you conduct most of your business. After all, you will have to qualify for doing business in your own state and city, anyway. You will also have to pay income taxes in your own state. It's true that sometimes there are corporate laws in those countries that are more flexible, but these benefit mostly large, publicly owned corporations and not the small privately-help corporations most small business owners intend to have.
Incorporating is an easy and fast process as long as %100 of the company shares will be help by you, your family and your partners. Things get a little more complicated when parts of the company are sold to the public. In most of the small business cases, this is not the case. So if you form a simple corporations, all you need can be done in a few hours.
Here are the steps for legally forming a corporation (in general):
1st step - Check with your state's corporate filing office, as well as with the federal and state trademark registers - to be sure the name you want to use is available.
2nd step - Fill in blanks in a preprinted form (available from commercial publishers or your state's corporate filing office). You will state the purpose of your operation, the place of business, and the number and type of stocks.
3rd step - You need to pay a registration fee of $200-$1000, depending on the state.
4th step - you will need to complete Corporate Bylaws. They will outline a few corporate housekeeping details such as when an annual shareholders meeting will be held, who can vote and how the shareholders will be notified if a special meeting will be held.
If you're not selling any stocks to the public, conducting corporate business is very simple. You will basically need to record key corporate decisions, such as taking a loan, or buying property such as real-estate. You will also need to hold an annual meeting.
There are many self-help book out there that make it very simple to incorporate your business in your state without getting a lawyer. These books will also teach you to run your corporation smoothly.
Both Myles Krueger & Jane Ling 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.