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If you have limited funds to invest in a franchise or business opportunity, you can always invest in a “low-cost franchise” opportunity. One myth about low-cost franchises is you are not going get “your money’s worth” so you won’t get the best franchise available than if you had a larger sum to invest with. This is not true, what matters are your research objectives and how you investigate a low-cost franchise.

View the following list of criteria you should keep in mind when assessing a low cost franchise or business opportunity…

• Can the franchisor provide you with its Uniform Offering Circular? This a vital document and a demonstration that this franchise is legally licensed to operate and meets the strict criteria set out by The Federal Trades Commission.
• What training and support does the franchise offer? A key element in the franchise package is the opportunity to avail of training and on-going support. It is vital your franchisor offers both to ensure the success of your franchise business.
• Has the franchisor been in business for long? How many franchisees are currently operating a franchise? First thing you should ask is how long the business has been running and if it is a relatively new franchised business, you should ask for proven results for the business system, so you know you are investing in a “new” business but with a model that has been tried and tested prior to franchising.
• Second thing you should ask is to speak to all existing franchisees, you don’t need to contact all of them, but it would be in your best interests to randomly select three-four franchisees and ask them their opinion on the franchise business…Although a franchise can advertise their business as “low cost”, they can incur hefty royalty fees to make up the price in the long term.

Make sure you know all prices involved from the start of your research- initial fee, royalty fee, liquid capital fee etc. This will ensure you will not end up paying more than you thought at the beginning.

• Compare and contrast a low cost franchise with a high cost franchise competitor and assess why one franchise is cheaper to invest in than the other.
• Consider the package that is been offered, assess vital topics such as training, support, help with marketing and location if you are buying into a premises…always research a franchise with due diligence and understanding of the key elements involved within the franchise operation.

For more information on researching a franchise opportunity, visit “A Guide to Buying a Franchise” and “The Franchisee’s Perspective” for more important information.

For any queries relating to low-cost franchising, please leave me a comment…

Franchise Reporter

I decided to compile a list of my top 5 wackiest franchise concepts that are making big bucks in the franchise industry. Customers are buying products and services that are different, unique and downright wacky and some very clever franchisors are capitalizing on consumer’s needs for individual products and services.

View the following list of “wacky franchises”:

1. If Hooters were a barber shop then you would have Knockouts!

Description:

“Customers wait in the comfortable ring side seats and watch sport on TV and drink a complimentary beer or soda, and then are called for services ranging from scalp massage, facials and of course men’s hair-cuts.”

Wacky-credentials:

The combination of hairdressing, “hooters” stylists and beer makes this wacky franchise No.1!

2. Think Olives- just olives and that’s it!

Description:

“WeOlive is an on-line retail franchise operation promoting and selling…yes, you’ve guessed it…olives! Customers can buy olive oil, olive vinaigrettes, olive oil t-shirts and olive oil gift baskets, the list goes on.”

Wacky-credentials:

I think this franchise has taken the “olive” concept a little bit too far, bordering on the insane!

3. Take a photo, print it and frame it- there’s a unique franchise idea!

Description: Photography Franchise

“The Great Frame Up provides customers with personalized frames for personal and business photos, pictures and all art work- where picture framing has become an art.”

Wacky-credentials:

Not much to say here, its all about getting the “frame” right!

4. Cream Puffs have never tasted so good!

Description:

“Beard Papa’s cream filled pastries are a hit across the US. Originating from Japan, Beard Papa’s No.1 filled pastry is pursuing world domination in serving up the “World’s Best Cream Puffs”.

Wacky-credentials:

Cream Puffs from Japan! This franchise certainly takes the biscuit…

5. Peanut Butter makes the world go around…

Description:

P.B. Loco food franchise- everything with peanut butter please!

Wacky-credentials:

Curry spice peanut butter sandwich; PB Gone Banannas- banannas, granola, yoghurt and peanut butter; Smoothies- smoothies made with, ah, peanut butter! Need I say more?

Please let me know of any weird and wonderful franchise or business concepts you have come across…or tell me what you think of these “wacky” franchise concepts…

Franchise Reporter

Key Points to Keep in Mind!

No doubt about it! A franchise exhibition or show is a great way for potential franchisees to meet franchisors and to find out detailed information about a franchise or business opportunity.

However, there are a few key notes you should keep in mind when you are attending a franchise exhibition or show in order to get the best experience from attending the expo.

1. Keep an open mind!

Spend a few minutes writing down what you think might be the best franchise or business opportunity for you, but keep an open mind to the different franchise concepts you will encounter at the franchise expo. You never know what type of franchise might suit you when it is presented to you by a franchisor…

2. Know your Budget!

Financial considerations will have a key part to play in your final choice of franchise or business opportunity. Therefore it is wise for you to clearly define what your business budget is before you attend a franchise expo. In this way you can prioritize what franchise concepts you are interested in finding out more about relating to your financial expectations…

3. Take a Notepad with you!

Now that you know what type of franchise opportunity you may be interested in and what your budget is, you should be ready for your franchise expo. Be sure to bring a notepad with you and jot down everything a franchisor says to you. Ask key questions, such as:

Q. What type of training and on-going support is provided by you?

Q. What are the initial franchise fees?

Q. Can I speak to existing franchisees operating your franchise?

Q. How long has the franchisor been in business?

Take note here! Remember the main motivation for a franchise expo is to sell franchises! You should be aware of franchisors who “promise” you the best. Frequently these franchisors do not provide the best franchise package. Be aware of “sales pitches”; after expo “meetings” and “sign now before it’s too late” comments!

You should go with an open mind and return home with bags full of franchise literature and conduct your research in a more practical and comprehensive way, rather than signing on the dotted line at the franchise expo!

The notes you take at a franchise expo will help you remember key points and contact names when you return home.

After the expo, you should make a list of all the franchises you were interested in and then proceed to carrying out a more thorough research by contacting a franchisor for a one-to-one meeting.

For more information on franchise expos in your area, please leave me a comment and I’ll write back to you…
Franchise Reporter

Joel Libava “The Essential Steps to Researching a Franchise Opportunity”

For some people the yearnin to break free from demanding work life situations is all too great. Thoughts of slipping off the shackles of wage slavery and setting up their own business can overtake idle moments thinking on the long commute to work, the bus journey home, and just before they go to sleep at night…These people are determined individuals with an entrepreneurial spirit inside them waiting to be unleashed. For many individuals who embark on the path of franchise ownership it can be an awesome journey, one that takes them to a place they never thought they would ever get to…

But it can be a daunting process researching the franchise industry and making that initial contact with a franchisor and franchisees. But this process has just been made easier with the emergence of Joel Libava’s new e-book The Essential Steps to Researching a Franchise Opportunity.

This book sets the tone on how you can choose the right franchise for you; how to approach a franchisor and what questions to ask, from understanding legal documents and realizing what you should be looking out for in the franchise process.

Unlike any other franchise related book I have reviewed so far, this one will tell you all the things other people will NOT tell you about the pros and cons of investing in a franchise opportunity. Thus, this book sets out with one clear aim in mind- to explain how the franchise process works and to define it in an easy to read and direct writing style.

This is what makes this book accessible to everyone who is interested in finding out more about the franchise industry. This book guides you through the different steps involved in the franchise application process and what to expect and what not to expect from your relations with the franchisor and existing franchisees.

This is your franchise companion, one that you can dip into when you need to know something in particular –what questions to ask the franchisor and existing franchisees. It will be your companion in letting you know the types of questions you should be asking that no-one seems to ever tell you- and you don’t necessarily know to ask…

If you are interested in making an informed business decision, one that will affect your life dramatically, it is worth reading this book…Joel will tell you things about the franchise process that other people usually avoid!