Franchising For Dummies Review

Average Reviews:

(More customer reviews)A thorough overview of the process of evaluating, buying, running, and selling a franchise. Definitely read through this book (even if only in parts) before you start to invest yourself (time and money) into a franchise. It is a frank, and straightforward book about a complicated subject.
Some clues from the book:
1) As a franchisee, you buy "the right to use the franchisor's expertise, brand name, experience, methods, and support." (pg. 14).
2) Although you get a proven system, the business is yours.
It is work and it is not for everyone. Successful franchisees must be very good operators who stick to the rules.
3) Franchisors vary. Since you will be paying a royalty going forward, make sure you do the research and know what you are getting for your money. A contract can be a life preserver and a trap.
4) The evaluation, preparation, funding, and negotiation for the franchise is paramount. This book gives detailed lists, and questions to ask before you sign on that contract.
5) Top two reasons franchises fail: 1) not enough money going into the investment 2) absentee owners
6) Factors in assessing your location: population density, neighboring stores (cross promotion), anchor tenants, traffic patterns, speed of traffic, seasonal factors, day / night, competition, security, access to employees, size of property, zoning, landscaping, parking, landlord reputation, visibility, signs, environmental concerns, title, buy vs. lease, hidden costs.
7) Royalties vary according to franchisors. Wendy's is 4%
8) In the end, franchising is a relationship business with franchisor, customers, other franchisees, suppliers, attorneys, bankers, and family.
9) When selling the franchise to others, the franchisor often has the "right of first refusal" which means they can purchase it on the same terms and conditions as the offer you received from a prospective buyer. Check this clause prior to signing.
10) Use the International Franchise Association's webpage:
www.franchise.org.

Click Here to see more reviews about: Franchising For Dummies

Click here for more information about Franchising For Dummies