How Franchise Ownership can Put You on the Fast Track to Success

May 18, 2011 | By

Businessman wins race against other business ownersIf the uncertain economy and lackluster job market have caused you to put your career goals on hold, you may be interested in learning about the wide range of established franchises and business opportunities that are available. Regardless of whether you’re aspirations include furthering your career in your existing field, or changing industries entirely, franchises can help you fast-track your goals and get into business quickly and easily.

Previous industry experience often is not necessary to qualify as comprehensive training is typically provided. In addition to taking you from novice to business owner in a relatively short amount of time, established franchises provide you with significant competitive advantages. Big franchise brands boast consumer brand recognition, built-in loyalty, perfected products and services, and proven operating procedures and business systems.

So If you’re tired of waiting for the economy to recover and the job market to rebound, take charge of your future, start exploring franchise ownership. And find out how owning a franchise can put you on the fast-track to success.

Filed in: be your own boss, buying a franchise, owning your own business | Tags: , , , , , ,

Comments (5)

  1. We have seen a huge increase in enquiries for people wanting to buy a franchise in 2011 and 2010, many with redundancy packages having been laid off from their old jobs. Although some franchisors are having a hard time of it at the moment it must also be said that there are no shortage of prospective franchisees out there looking to buy into the right franchise.

  2. Sure, I agree. It has been seen that the fast food sector franchising has been doing good even during the previous recession. The key I believe lies in the correct choice of target niche that you are comfortable with. Something that you can do with passion and also a sector that addresses numerous consumer daily needs

  3. Commission Splits for Mortgage Broking Franchisees

    Commission splits are often a big focal point for new franchisees. Rightly so, Brokers want to
    know how much they will be paid and there is a myriad of structures out there for them to deal
    with. These can vary from volume based upfront commission splits to loan book value splits and
    everything in between. So, what should you be looking for and what are the real dangers?

    Splits generally range from 40% – 95% of the upfront commission and 40% – 70% of the trailing

    The percentage that the franchisee splits with the franchisor is extremely important in two ways; it
    directly determines the franchisee’s level of income and it directly affects the level of funding going
    back to the franchisor to enable them to provide certain products & services to the franchisees e.g.
    Software and IT platforms, support staff, marketing etc.

    An extreme either way is dangerous as franchisees need to be renumerated sufficiently for their
    work otherwise their business is not viable and the franchisor needs sufficient funds to be able to
    value add to the franchisee’s business. Without the right balance of funding this is not possible.

    I believe that around the 70% mark for upfront and trail provides an extremely good balance and
    allows healthy remuneration and value.

    It is very important in this industry to ensure that you receive the trailing income. Some groups have
    tried to negate it but this is a must for this industry. This recurring income will in time, become your
    biggest asset. The viability of a business without trails is questionable based on current up front

    Find a happy medium and most importantly evaluate what the franchisor provides for their split and
    don’t underestimate the value of what the franchisors can offer you.

  4. How much does a Mortgage Broking Franchise cost?

    When new entrants to the industry start looking at prospective Franchise Businesses, the first and
    often last question they ask is “How much does it cost to purchase the franchise?” Although cost is an
    important factor in any purchase, a better question would be: “What value do I get for my investment
    in a franchise business?”

    A franchise fee can include the up-front amount paid to the franchisor for the use of their name, know-
    how, operating systems, etc. This is one component of the overall start-up cost of a new franchise.

    Within a good franchise model, this is not money going straight to the bottom line profit of the
    Franchisor, rather it is used to support the recruitment process, provide training and continual
    professional development of the franchisees.

    You may want to ask more probing questions as to the value of the business proposition if the franchisor
    is not charging a franchise fee.

    From an accounting and financial perspective, one of the early steps someone looking to invest in a
    franchise should take, is to calculate the “return on investment” (ROI). If you purchased a business for
    $100,000 and were going to potentially earn $100,000 that would equal 100% ROI. Generally mortgage
    broking franchises cost between $15,000 – $60,000 with potential to earn hundreds of thousands of
    dollars per year. If you calculate the ROI on those figures you will struggle to find another industry with
    such potential.

    When you are looking to starting a new business and purchase a mortgage broking franchise, the first
    question that needs to be asked is: ”what support, proven track record and franchise model do I believe
    will give me the best chance of succeeding and producing the highest level of income”.

    If the difference between franchises can affect your earning potential to the tune of tens of thousands
    of dollars every year, then the initial setup cost is negligible provided the business model is sound from
    the outset.

    So why compromise your business and future?

    Toby Pope
    Citiwide Home Loans

  5. I am not really great with English but I get hold this very easy to understand.