Monthly Archives: March 2014

Interested in Franchise Ideas For 2014?

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There are many people who are interested in owning their own business. However, many of these people don’t get beyond wishful thinking. The problem for most people is that starting a business, finding a good product or service, creating a business plan and marketing and branding the business seems like too much work. For these people, buying into a franchise might be the best solution. There are many great franchise ideas for 2014 that those with enough money to invest should definitely look into.

The cost of a franchise can vary greatly depending on what franchise you choose and how big the franchise will be. While buying a franchise can be more costly than starting a business from scratch, the benefits are a proven business strategy, brand recognition and often ongoing support from the franchisor. While getting into any of the top rated franchises will cost a pretty penny, and as such is not an option for many new business owners, looking at some of these franchises can help potential franchisees figure out what they should look for when trying to find the best franchise for 2014.

The first thing to consider is what type of franchise to start. If you look at lists of the top franchises, you’ll probably notice that there are three dominant business types represented. These three types of business are cleaning, food and personal improvement businesses (gyms, salons etc.)

Entrepreneur.com releases a list of the 500 best franchises of the year, and this year the top spot went to a 24 hour gym franchise called Anytime Fitness. What makes this gym better than others? Well, it isn’t actually the gym itself – although it does have all the equipment of most good gyms and a special feature that lets members access the gym at off hours when it isn’t being staffed. However, what Anytime fitness focuses on is the culture of fitness and wellbeing. They put a lot into making it about people and their personal challenges and growth. They even have a special tattoo (that’s right!) that symbolizes a personal achievement, which the company will reimburse members for if they submit a photo and their story.

Another franchise that earned a top spot is Jimmy John’s Gourmet Sandwiches.
This company was founded in 1983. The then 19 year old owner famously got his business off to a start by carrying around armfuls of sandwiches and passing them out free to college students. The sandwiches were so good, these same people sought out Jimmy John’s, which at the time didn’t even have a proper sign outside. Nowadays, the sandwich maker distinguishes itself by offering the freshest sandwiches in 30 seconds. And their idea of fresh is way different than most restaurants’ idea of “fresh”. They bake bread fresh, everyday, and use real ingredients (e.g. their roast beef is sliced off an actual beef roast rather than a packaged, additive-filled product) and slice, spread and assemble those ingredients in record time.

Another great franchise, which isn’t on the top lists (yet!) but is quickly growing, is a window and exterior cleaning service called Men In Kilts. What’s great about this business is that they put a face on the usually anonymous cleaner; and they did it in a fun and entertaining way. Their tagline is “We clean. You enjoy. Just remember… No peeking!” It features men (and sometimes women) in – you guessed it – kilts! Not only do they have a great and memorable gimmick, they offer really good services which are in high demand.

What makes these some of the best franchises for 2014 are the fact that they go the distance to set themselves apart from the competition. They take their customers’ needs very seriously, and make it about people rather than just about money. These are things that should be looked for when choosing a franchise to buy into.

These are just a few “real world” examples of successful franchises. There are also a number of online franchises that have been doing very well and have the added benefit of greatly reduced start up costs among other things. One such business opportunity is InternetIncomeUniversity.com. This company offers free online affiliate marketing training and also a turnkey online marketing business opportunity that anyone can use. Just like the businesses above, IIU is about people and offers continuous support and learning opportunities as well as a community of online entrepreneurs that business owners can learn from and share with. For more information and free affiliate marketing training, please visit InternetIncomeUniversity.com

Five Questions to Ask Franchisees Before You Become One

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There’s no substitute for homework.

That’s where the real learning happens for students, and the same is true when investigating a franchise. The most important homework step is calling people, specifically the franchisees of the system you’re interested in. You’ll receive a list of all the existing franchisees in the Franchise Disclosure Document you get from the company, so take the time to call at least five to 10 of them. It also a good idea to do a search online to find some former franchisees.

Here are the best questions to ask them:

1. How well did your first unit opening go?
This broad question focuses on how effectively the franchisor’s systems and training work. An honest answer will reveal how easy the franchisor can help make the process of opening and operating that first unit. There will always be snarls when opening any new business but this question will tell you if they were small annoyances or ulcer-inducing.

2. How well do the marketing programs work?
Most franchises have required marketing initiatives designed to help build the business by seeking to attract a lot of customers. Few subjects arouse more emotion or controversy among franchisees than whether their required marketing programs work.

3. How well does everybody get along?
Many franchisors describe theirs as being just like family. That may be true but find out whether it’s like Beaver Cleaver’s or Archie Bunker’s. If you don’t want to live a life of conflict with someone calling you “meathead” every day, then the answer to this question is important. Make sure you have a good feeling about the support and teamwork of the organization and that it matches your values.

4. How much money can I make?
This question is the most important one for many prospective franchisees. You’ll want to determine the average startup investment, the average unit sales, the main expense categories, gross and net margins for the business, and how long it takes a new unit to break even and start making money for the owner.

It is usually best to save the money questions for last. Most people are reluctant to discuss their personal finances with someone they don’t know. You’ll find that franchisees are more willing to cover this subject once you’ve established some rapport with them.

5. If you had it to do all over again, would you still buy this franchise?
No matter what the answer is, explore it. Your response should always be “Why?” The most common answer is a pause followed by a yes. This usually means that there are valid arguments for answering yes or no, but pride of ownership usually tips the balance toward the positive answer. Ask for the strongest argument they can think of for answering yes or no. The contrast can be very informative, especially if you can read between the lines.

Another benefit of these calls is that you will likely find your interest in the franchise quickly increasing or waning after a handful. Waning interest is a red flag telling you that this probably isn’t the right business for you. If you find your interest rapidly increasing, it is a very positive sign.

Even if you can’t really put your finger on why either of these reactions is happening, trust your gut. Your instincts have a way of making you feel right or wrong about a decision like this and they are usually correct.