Key Word: Franchise+Investment+Optimistic

If we could choose keywords to recap our present business climate… they might include layoffs, downsize, bailout, grim outlook and recession, just to start. We’re hearing it could get worse before it gets better and boy oh boy, we’re really hitting this topic hard, but in our current economic situation is this really a good time to franchise? The answer is a resounding YES.

Did you know that more franchise businesses are born out of bleak economic times than any other? Entering the franchise field could truly be a very viable option that will allow you to take control of your finances, have job security, be your own boss and ensure financial equity for your family.

Financing is generally a chief concern. If you do not have funds readily available, focus on franchising options that offer in-house financing. Third party lending sources and SBA lenders are other very good alternatives. Here’s what you have working in your favor—when banks lend money, they are more likely to grant business loans for established, name-brand franchises than they are for personal start-up businesses. Buying into a franchise means that you’re buying into a solid reputation as well as the benefit of a tried-and-true business plan. When banks have already seen the success of those who have gone before you, they are more likely to lend, taking that as an indication of your own success down the road.

No business or franchise promises to be 100% fail-proof. If you’re sinking sizable savings into this venture and you’re not much of a gambler, select a franchise business that is service related to ensure long term, consistent business success. For example, home healthcare-type franchises offer job security. According to the AARP, 10,000 Americans turn 60 years old everyday, thereby reinforcing the need for eventual in-home care. Also, service businesses will continue to do well regardless of the economy. There will still be need for car and computer repair despite the conditions; therefore, service-based businesses are a good call. Another good option is children’s-related services including daycare, tutoring, after school programs, etc. All of these are merely examples of franchises that are as close to recession-proof as possible.

Still, there is no substitute for doing your franchise homework. Utilizing a web site that provides you with all of your options as a potential franchisee is priceless. At Franchise Creature, you’ll get matched to the businesses that are compatible with your financial and state availability. By narrowing their focus on a target list of franchise opportunities specific to your needs, Franchise Creature helps you avoid wasting your time and efforts. Franchising is a huge step, but it doesn’t have to feel like you’re walking in outer space—who wants to hang out on the final frontier alone?

Now, we’ve cleared that up. Perhaps you’ll invent some of your own keywords for the start of 2009, like optimistic, independent, financially free, fearless and bossless. (We admit we made that last word up, but doesn’t it have a nice ring to it?)

Service Business Franchises are Thriving!

Despite the current economic situation, this could be the best time ever to buy into a service business franchise. Of course when considering franchise ownership, the number one concern almost always centers around money. You’re talking startup fees, money for a building or merchandise, and then money for maintaining operations, and that can be a lot of green if you don’t have that much! It’s especially difficult to justify spending your life savings or draining your 401K in such low economic times, particularly if you’ve recently lost your job due to downsizing. If you’ve spent countless nights lying awake at night rolling all this around in your head, you’re probably best fit to take the franchise ownership plunge. And, if you’re financially limited, owning a service business might be your most practical solution.

It’s a rare person who enters into any serious business arrangement without apprehensions. Shaving some of the monetary investment off that plunge can defer some of the franchise ownership fears. In terms of service businesses, some can be bought into for a relatively low fee and little overhead. Some handyman-types of businesses can be started for under 30K. In general, more people are making do with what they have now that we’re in a full-blown recession and here’s where service business owners have the edge.

The average American who’s been impacted by the current recession is less likely to buy a new house. Still, the desire to have things nice and new doesn’t go away. Enter all facets of home remodeling, deck builders, interior decorators, etc. A homeowner wishing to have a new driveway poured might instead settle for a nice driveway revamp. Same with the person who would like a new bathtub, but would might be willing to settle for hiring someone to re-porcelain their existing one. And the list goes on. Consider that while unable to make any dramatic moves in this economy, some folks are choosing to revitalize their current property to make feasible for their existing housing situation or to make it more saleable once the economy has bounced back. This can only mean good things for the person in a service-related business.

According to nearly all new sources, Americans are making cutbacks in their everyday living all across the board. Furniture repairpersons are experiencing an upswing in business, traversing the city to repair, refurbish or just polish up existing pieces of furniture in lieu of purchasing new. We’ve even heard rumor about hotels and motels enlisting such services to compensate for the drop in room bookings. It’s a great idea, and don’t get us started on how great all this repair business it is for the environment.

Shoe cobblers are reporting an influx of new businesses as well. People are repairing shoes and zippers and clothing instead of tossing out and buying fresh. In other words it’s true—everything old is new again. According to an article in the Daily News, NY Local: As New Yorkers cut back on spending and cobble together their cash, the city's shoe repair stores are getting an unexpected boost. "It's getting better and better," said Cesar Andrade, who owns Andrade Shoe Repair in the West Village. That’s certainly music to the ears of new service business owners!

Finally, appliances and cars do not care what the state of the economy is and will always require regular maintenance and be subject to repairs. Seriously, when was the last time your toilet asked you if you could afford a world-class backup in your only bathroom, hmm? Didn’t think so.

So, maybe the recession isn’t hard on everyone, think? If you’ve always thought that business ownership would be right for you; if you have access to some level of funds for the purpose of investing; if you’ve recently been victimized by the fluctuating job market and are craving some semblance of job stability, buying into a service business franchise could be what you’re looking for.

Again—reputation, reputation, reputation—you’re buying into an existing line of work with a business plan that’s tried and true. Add that to the low overhead of operating out of your home and the knowledge that more and more people are repairing and restoring instead of buying new, and you’ve got the potential for more job stability than most Americans do right now.

When you’re ready to get more information about franchise ownership, visit FranchiseCreature.com to access hundreds of service business franchises that can be started for low fees and with low overhead, with representatives standing by to guide you through every step of the process. It’s a factual, no-pressure way to investigate your service business ownership choices.


Sources:
Daily News, NY Local, November 25, 2008: Shoe repair rises hard on heels of economy slump. http://www.nydailynews.com/ny_local/2008/11/25/2008-11-25_shoe_repair_rises_hard_on_heels_of_econo.html

Retirement: Prime Time to Buy Into a Franchise? Could Be!

It’s possible that there’s never been a better time to buy into a franchise than when you’re standing on the threshold of retirement. Call it Retirement Plan B. Here’s what I’m thinking. You’ve spent a lifetime learning your trade and cultivating your career, why not take those skills and life lessons to the next level and collect the rewards that come with owning your own business?
In today’s economy, it may be difficult to get a loan to start a business, true. However, a retiree has the benefit of having a lifetime of experience under his/her belt and the extra addition of a pension. Lenders love experience and couple experience with financial backing and the combination is a solid one-two punch.


Retirees want to stay active and involved, but at the same time desire flexibility to do the things they enjoy. An avid golfer might enjoy investing in Golf Greens Fore U, a portable putting green business. Or, how many times have we heard the wife of a newly retired husband claim that her husband’s “constant tinkering” around the house and yard is driving her up the wall? Consider becoming your town’s Mr. Handyman franchise owner. Many people who have devoted their lives to the restaurant or retail industries may want to take life for a spin on the side and try ownership and management. Financial wizards may want to try their hand at consulting. The possibilities are endless and can allow an individual to extend his or her career well into those retirement years, enjoy increased leisure activity, and at the same time reap the rewards that come with business ownership.


Boy, if we’ve said it once…buying into a franchise beats independent business ownership hands down when you’re a first-time out entrepreneur. For a franchise fee, you get the automatic backing of a solid business reputation along with a tried and true business plan, tax information, etc. If startup costs have you worried, consider that many franchises can be bought into for under $50K; even some for under $25K.


Franchise Creature is pretty much a one-stop franchise “shopping” site. One of the things we pride ourselves with most is the fact that we are low pressure, personal and always available to answer questions. You won’t be bullied into spending more than what you want to spend to make your franchise dreams a reality, and you won’t be given time limitations or ultimatums when you’re making decisions about whether or not to franchise or about franchise selection. It’s a tough economy, we understand. Visit us today online at www.franchisecreature.com, take a look around, see what catches your eye. And when you’re ready to formulate your version of Retirement Plan B, let us know!

Franchising...? In this Economy?

It is possible that the downward spiraling economy is responsible for the spike in interest in franchise ownership. With so many companies downsizing and unemployment numbers climbing, this country finds itself with a surplus of available managers, supervisors and otherwise qualified individuals.

The phrase "bulletproof job" will surely emerge on Google at the year's end as being one of the most (if not the most) searched phrases of 2008, but we know this now--nothing is truly bulletproof when it comes to jobs. Despite the typically steep upfront cash requirement for franchising, and aside of these fledgling economic times, this may very well be the best time to explore franchise ownership, believe it or not.

If we've said it once, we've said it a million times--franchise ownership is the security of owning your own business with the backing of the solid reputation of those who have gone, and succeeded, before you.

Unlike with independent business ownership, with franchise ownership you get the confidence of a good name, training and a solid business model from which to build your business to be as successful as possible.

The name of the game is research. Knowing your own personal strengths, your market and your budget are all steps to becoming a practical franchise owner. Google everything related to the franchise you have an interest in, but don't get so invested in the opinions regarding their successes (or failures) of other franchise owners that you neglect to realize a potentially great opportunity.

This is a nice corporate video put together by Molly Maid about investing in franchise ownership during these sketchy economic times. We liked it.

Confessions of a Former Independent Tanning Salon Owner.

Once upon a time, a girl in the Midwest, sick of working hard for everyone else, tired of leaving her kids at home to be raised by everyone but her, who decided to go into business for herself. Here’s her (er—my) story.

I stated the why of wanting to own my own business. This was followed by a whole series of questions regarding business ownership—everything from what type of business I desired to embark upon, to whether or not I had enough capital, to did I need (or want) business partners?

Deciding to open a tanning salon wasn’t a stretch. I was a misplaced Floridian who missed the rosy, healthy-looking glow of a sun-splashed body. One of my dearest Florida friends owned and operated her own tanning salon and hanging around her place, I got a taste of what was involved as far as licensing, costs, upkeep, employees, etc. I felt that the decision to open a tanning salon was a practical choice that wouldn’t require a ton of research on my part. I certainly didn’t want to wander blindly into business ownership. I only wish that the decisions beyond what kind of business to open had come with such great ease.

I briefly explored buying into a tanning salon franchise, but balked at the prices on those things. I remember thinking it would take me ten years to recoup my investment and I’d have to share a percentage of my profits still after that! Convinced that I could do it myself for a fraction of the cost, I ordered a tanning bed catalogue and set about planning and spending.

I used a personal savings/loan combination to open Tropical Tan North—yes, I actually went into the experience with dreams of a South someday. I rented a premium location near major businesses and a huge local college, two distinct advantages over the other tanning salons currently in local operation. I also played secret shopper to those salons to see what worked or didn’t work for their businesses. I got the proper permits and paid (through the nose) to have the place renovated to accommodate half a dozen beds to start with and for wiring to city code. None of this came cheap. In fact, I had to forgo one of my initially intended bed purchases (each one cost as much as a compact car) just to offset costs, then I had to justify this decision to my banker with whom I’d taken out the loan—bankers understand collateral, not ideas. I opened Tropical Tan North and it was wildly successful, and I closed it four years later. Here’s why:

1) I wasn’t making tons of money. Oh, I was making money, but not nearly enough given the outrageous clientele numbers we were enjoying. The salon had a great location, was always open, had the newest bulbs, the cleanest beds and the lowest cost lotions, so we had the numbers. But, for example, I barely profited off of tanning lotions, which I underestimated to be such a huge part of salon business. I’d mistakenly figured it to be “bonus” money instead of realizing that lotion was a staple to almost every tanner who entered the salon. By neglecting to realize this and seriously under-pricing the competition, I literally walked away from profit.

2) The cost of salon upkeep was insane. Because we had higher traffic than other salons, the beds were constantly in operation, which naturally spelled out the need to replace bulbs and acrylics more often, not to mention those occasional mishaps that result in bed damage. This probably wouldn’t have been such an issue had I made better pricing decisions on tanning packages and, as mentioned, the lotions.

3) I was dead-tired. In my case, superior customer service became a curse. Because our salon had become known for its courtesy, I was personally in attendance for at least 14 hours a day, every day, to deliver. I did have two part time employees, but because they weren’t enjoying competitive wages (read miniscule profit margin), I was getting sub-par reviews for their courtesy, and on occasion, I suffered profit loss through missing lotion or freebie sessions they’d “sampled” to their friends and family. I couldn’t be the only eyes/ears of the salon, couldn’t risk further shrinking my tiny profit margin, and couldn’t take it any longer. I paid my bills and closed up shop.

For four years my intended American Dream of being an independent business owner bordered an all-out nightmare. Analyzing the situation now, I can see that I had many assets: the desire, the knowledge and some cash and/or ability to get a loan. Had I invested that time, talent and money into a franchise tanning salon chain, I might still be in business today.

When you buy into a franchise, you’re buying patented knowledge. When making the decision to go independent, I seriously undervalued the benefit of guidance and tools of those who have gone before us. You see, when you’re buying into a franchise, you’re not just purchasing the rights to a name, some equipment and a business manual. You’re purchasing a wealth of experience from business pros who stand make a handsome living from, in part, your business success.

When you buy into a franchise, you’re buying into a reputation. My independent operation had a well-earned reputation that cost me only 14 hours a day, seven days a week, with minimal profit to show for it.

When you buy into a franchise, you’re buying a tried and true business plan. It works, or there would be no need for franchising whatsoever. You’re buying into pricing, scheduling, and other valuable operational information, which means you eventually stand to have some semblance of life outside of your business. As an independent owner/operator, I couldn’t even slip home to shower or read a bedtime story to my kid without fear that everything was going wacky back at the ranch.

There’s some serious benefit to the trust that comes with owning part of something bigger than you are. Not to say that you won’t still work hard or that you don’t have to have any of your own business sense to decide to buy into a franchise, there’s just no such thing. But along with the franchise price tag comes the power of a network and access to solid business knowledge, and that is priceless.

Busy Does Not Equal Profitable

My parents used to have a favorite watering hole and feed bag that served the best barbecue in the south along with beer brewed on the premises. What can I say? My pop likes his beer and 'cue.

Imagine my parents dismay when they approached the place one Saturday evening to find the doors shuttered and the lights off. "I don't understand it," my mother bemused, "the place was always so busy, how could they go out of business?"

She was partly right. The place was typically hopping on weekends, and on the occasions me and my misses accompanied them we had to wait a spell for a table. But, busy does not equal profitable. All busy means is that an establishment has a popular product that was effectively marketed to the surrounding area. That doesn't mean they are doing the most basic of economic functions -- buying low and selling high.

When purchasing a franchise, there's a good amount of research you should do before betting away your retirement and plunking down the balance of your 401K. One of the simplest things to do is visit a few of the franchise locations within driving distance and see how busy they are. It seems logical. But all this will tell you is how popular the product is, not how profitable you will be.

You still have to look into distribution agreements, leases, labor costs, franchise fees, etc. You know, the meat and potatoes of running a business. Otherwise you may end up like these guys. One of whom fell victim to the old "place is jumping" research.

And don't worry about my dad, he's already found a new place to gas up on the weekends. Instead of barbecue it's crab legs, and the microbrewery on the premises puts the other one to shame. He's a resilient man, my dad.

Franchise "Creature Feature" Writer

Alternate Supply Chains

I have a friend who used to own and operate a small video rental store, the type you would safely refer to as a "mom and pop" operation. There was only one location with a small, but loyal, customer base. The store was profitable, but slight shifts in the business could spoil the bottom line from month to month.

If you don't know anything about the DVD distribution pipeline, don't worry, it's actually pretty simple. The major studios sell the DVDs to a few distributors with warehouses across the country who in turn supply stores with the movies. Obviously, the more volume a store does, the more discount the distributor gives. Since my friend's store was so small, she obviously didn't net that much of a discount.

One day she was thumbing through the Sunday paper and saw an ad for one of the major electronic chains, the kind that sells everything -- including DVDs. Their advertised price for that week's major release was less than her distributor had charged her per unit of that title by approximately five dollars. It might not seem like much, but when she checked the previous sale prices at this retailer over the last month, at the volume she dealt in, the difference over all the units she purchased that month was astounding. In fact, the savings would approximately equal the monthly salary of one of her part-time employees.

On Monday, she called her distributor and asked if she could negotiate a better discount to help her compete in her market. Based on her volume, she couldn't get a better deal. She would have had to order around ten times the amounts she currently dealt in to achieve the next discount plateau.

So, she negotiated a deal with the manager of the local electronics store, and began purchasing her copies of movies directly from them at their weekly discount prices. She dealt in such small volume (about eight copies of a major release) that it didn't negatively impact the electronics store's bottom line, and since she was renting rather than selling she really wasn't competing. Her meager profits started looking up.

I guess you couldn't say she thought "out of the box" on that one since she was buying from a big box retailer, but she certainly didn't allow preconceived notions about an industry' supply chain keep her from turning a profit.

Purchasing goods from local farmer and growers, materials that don't need to be shipped from the other side of the country, and other little savings throughout your business (which is why it's so important to not allow the franchisor lock you into a singular supply chain) can be the difference between living in the red and living in the black.

Franchise "Creature Feature" Writer

Plan Your Store Layout Carefully

Upon entering my local grocery the other day, I noticed a weight scale placed directly at the entrance. I figured what the hey and hopped on. The red needle sprung to life and bounced back and forth for a few seconds before finally settling on a number. Needless to say I slinked off the scale with far less hubris than I had jumping on to it and prayed no one was standing behind me who saw that number.

Believe me when I say that little red needle adversely affected my shopping experience. When staring down the sale on 24 pack sodas, I decided tap water might be better. I figured my baked potatoes didn't need sour cream, so that didn't get purchased on this trip. And although I love cheese, I skipped that aisle completely.

All in all I spent less this week at the grocery store than I normally do by making those, and many similar, decisions.

So, the question the grocery store needs to ask is whether or not placing that weight scale directly at the entrance was the best decision for their store?

I've run a store before. I know that you need to add something to the store so other things get pushed around and everything gets shuffled up -- and you eventually wind up with a weight scale by the door.

Every now and then it's a good idea to take a step back and look at the store layout as a whole. What's the store's traffic? How does it flow? What can be put there to maximize sales? And most importantly, what shouldn't be put there because it will drive sales down?

It's like that old saying, don't lose sight of the forest for the trees. And the new saying I'm gonna try and spread across the nation, don't tell me I'm fat when you want me to buy food. Sure, it doesn't have the same ring as the first, but it's still very true.

Franchise "Creature Feature" Writer

I Love Chinese Food

I was a picky eater as a kid. I wouldn't eat much of anything my mother placed in front of me at the dinner table. When I got to college, I finally realized why that perception dogged me my entire upbringing; my mother was a picky eater and didn't expose me to a lot of great foods. The only time we ventured from Midwestern cuisine was for Italian.

One night I had friends take me to a Chinese buffet, and feeling adventurous, I tried it. AND LOVED IT!

After that, I tried lots of different types of food. But, I think my favorite is still Chinese. I love a type of food that can mix sweet sauces with meat.

The trick is, I would never want to open a Chinese restaurant. Besides the fact I have no earthly idea how to actually prepare it, I mostly just don't want to lose my love for it.

I've held it as a pretty good rule to never try and earn money at the things I love. I'm pretty sure it would wear that love down to the point I no longer have any feelings for it. And who wants that?

When choosing a business to start, pick something you're interested in, but not one of your true passions. You'll need that passion to help distract you when the stresses pile up. And believe me, they will.

Franchise "Creature Feature" Writer

I’m All About Leaps of Logic

Well, gas prices have hit a record high. Again. Is it just me, or should we wait until they drop back down a little before we start claiming records? It seems kind of silly to lead the nightly news every night with “record high gas prices.” I mean, when a long jumper sets a new record we don’t record every inch he or she passes over the record, just the final distance.

Until sanity returns to the record keepers of America, there is a lesson to be had from these super high gas prices. That lesson is that the prices for groceries are creeping up as well. It’s just logical. Food gets to the stores on trucks. Trucks take gas. So you could say that the price of gas and food are locked in a demented dance.

It’s wise to remember these times when negotiating a franchise agreement. If you’re purchasing a franchise that in any way requires supplies, then gas prices will become an issue.

Many restaurant franchises have exclusive supplier deals that have caused no end of heartaches for the owners. Prices have soared for food when store traffic has dropped, putting profits in jeopardy.

Negotiating the ability to choose suppliers is very important for a franchisee. Besides alleviating some of the corporate control that parent companies want to exert, it also gives the franchisee better footing to negotiate prices with the supplier. A supplier who knows you have the option to take your business elsewhere will be more willing to negotiate than one who knows he’s your only source.

This is an issue that the franchisor will fight you on. It’s a guaranteed revenue stream for them as it is common for them to own the supply line or get percentages of profits from the supplier. That’s why you have to be prepared to walk away from the table over this issue. If they want to go to the mat over the supply line, and not allow you the option to run your business profitably, then you seriously need to reconsider whether you want to be a franchise of this operation or not.

Franchise “Creature Feature” Writer

Niche vs Broad

A common mistake made by potential franchisees in their determination process is that a general, more broad franchise is the way to go. No one is quite sure why this route is so well traveled. Perhaps their quest for great wealth has clouded their vision. Nevertheless, the niche franchise road could be a smoother ride.

Don’t get me wrong. There are still plenty of tricky bridges to cross when choosing a more specific audience. Less name brand appeal is one obstacle, for example. But on the flip side there is also less competition. Big name franchises appeal to the masses, yes. But by finding a franchise with a specific market you will ultimately shrink both your audience and your competition simultaneously.

With a more specific audience, advertising and marketing your franchise will be that much easier. You can spend more time promoting yourself instead of desperately trying to showcase how you are better than the big guys. As your core audience becomes more enticed, word of mouth will spread, and your business will grow.

And of course there is the expertise factor. Chew on this: as a consumer would you rather approach a person who knows everything about one topic or someone who has more extensive broad knowledge? Probably the former; you wouldn’t go to your local walk in clinic for a painful tooth ache just like you wouldn’t go to a widespread fast food restaurant for your anniversary dinner.

Proofreed...er, I mean Proofread

I drive the same route to work everyday, listening to the same radio station, passing the same buildings, laughing at the same stupidly written sign. Yeah, that’s right, I find endless amusement in a sign on the side of the road.

What I find so amusing is the fact that they list their phone number, and then spell it out in parentheses to help commuters to better remember it. Not unlike how Papa John’s have arranged all of their phone numbers to end in the final four digits 7272, which neatly spells out “PAPA.” It’s a common practice, nothing odd there. Except for how this particular establishment spells out its number (I’ll hide the area code and prefix to save them some embarrassing phone calls):

XXX-XXX-5111 (LOVE)

I’ve looked at the number pads on several phones and not one has ever had 5111 spell out “LOVE.” In fact, the “1” key has no letter associated with it whatsoever. So, if a wary traveler does see the sign, and happens to associate that amorous word with the church’s phone number, he will dial 5683 instead and get the wrong business; perhaps even a confused and angry homeowner tired of the calls will berate him.

Anytime any information from your business is being published for public consumption, check, double check, and triple check it. Then, have another person proofread it, then proofread it again, and finally proofread it. Having a third person do the same couldn’t hurt.

Major corporations have staffs comprised of copy writers, technical writers, copy editors, marketing writers, etc. to check every scrap of writing for errors before it goes to print and then distributed to the public. You’ll very seldom see poor grammar or misinformation in a pamphlet or advertisement for the big boys of business.

Since you’re likely a bit smaller than them, the best you can do is proofread, proofread, and proofread. Be absolutely certain that a potential customer on his daily commute isn’t going to take a quick digital picture of your sign and send it in to the late night shows for the whole world to laugh at.

Not that I would do that or anything.

Franchise "Creature Feature" Writer

A Rose By Any Other Name...

Press Release:

Franchise Creature replaces Franchise Monster in name only
Internet business opportunity advertiser gears up for third banner year

Orlando, Fla. – Franchise Creature is the new name for Franchise Monster. Franchise Monster – an Internet matchmaker service between entrepreneurs and companies offering franchise and other business opportunities – has evolved and is booming after two years as an industry leader.

Florida-based Franchise Creature offers the same superior Cyber services as Franchise Monster, and gives clients exclusive, full control of their inbox leads and advertising budgets. Franchise Creature’s trademark double-qualified, verified leads are guaranteed to be only from prospects who match Franchise Creature clients’ business investment and location requirements for new franchise or dealership owners.

Prospects who are ready to go into business for themselves scroll easily through franchisecreature.com and evaluate hundreds of diverse Franchise Creature listings for ownership opportunities with companies large and small.

Entrepreneurs simply follow Franchise Creature Web site prompts to channel their interests and investment qualifications into inboxes of a select number of matching companies.

The name change makes life a little easier for Franchise Creature. “We no longer have to screen out confused job seekers who look to a ‘monster’ to find employment opportunities,” says Lynn Bears, Franchise Creature vice president of account services.

“Everything we do, including our transformation into Franchise Creature and the addition of some new features this year, is intended to deliver the best possible, unique service to our advertisers and their prospective business investment partners,” Bears adds. “For now, it’s great business as usual at Franchise Creature, with a new name and Web address.”

For more information on Franchise Creature visit www.franchisecreature.com.

Beep-Beep, Beep-Beep, Yeah!

What drives you? This may seem like a silly question in a blog about franchises, and you may be thinking that I’m off my rocker. Yet, I pose the question to you again. What drives you?

It’s an important question for you to ask yourself before buying a franchise or starting any small business. You see, not everyone is driven by the same ambitions in life. We all may reach a point in our careers where we want more independence and financial freedom, and we might think that starting a small business will grant us those things as well as endowing us with a lifetime of happiness. That’s only true for some, though.

To decide if you truly will be happy and comfortable as the corporate titan at the helm of your own company ship, you need to first ask yourself where your life’s passions lay. Or to be gleefully redundant, I’ll ask it again: What drives you?

I know that I would not be a good person to own a small business. I’m not overly ambitious; I don’t want a big house, big car, big boat; and I’m not particularly interested in power. I’m not driven by money. I’m thankful that there are people out there in the world who are, since they create a job for me and allow me to pursue my passions. But I have to be honest with myself and admit I’m not one of them. I don’t have the drive to make the decisions that will bring in more money to the business.

What drives me, to answer my own question, are ideas and words. It’s what I love. What brings me joy is a big new idea or a real clever turn of phrase. Therefore I know I will always be working for someone else in some capacity. The secret is I’m comfortable with that fact.

For others, the drive may be to build something, something tangible like a house or a table. That physical accomplishment may be everything that person needs to fill up his soul and make him complete. Or he may also have the drive to make money with his work and therefore should start his own business. You can be driven by many things.

But since earning lots of money is probably at the bottom of the list of things that drive me, I shouldn’t try and be a business owner. That’s not to say I can’t offer you stellar advice on franchises, because I’m still in the business of businesses even if I’m not the spokesperson and boss.

That’s why it’s important to ask yourself this question before buying a franchise. Figuring out if you’re really the personality type to hop out of bed each morning and get excited over the prospect of making tons of money, is the most important conclusion you can make.

Franchise "Creature Feature" Writer

Hi, My Name is Mr. Pybb, and I’m Addicted to Brands

Have you ever bought the generic, store brand cola? You know the kind with the clever, all-too-close but not quite the same names such as Dr. Cola or 7-Right.

I have – once. We were a little tight on money that week and I figured that it couldn’t taste all that bad. For nearly half the price, the taste wasn’t as important that week as the money. When I got it home, it wasn’t that bad. It was actually pretty good. Sure, it tasted “different” than what I was used to, but if I drank it regularly it would bring the same amount of pleasure and cavities as the big guns in the industry.

The rub is I didn’t add it to my diet on a regular basis. Why, you ask? Simply put, it was embarrassing for me to buy the store brand. I hated standing in the check-out line with that in my cart. Every fiber of my middle-class upbringing was screaming that I had somehow failed at life and was one step away from the streets.

That, my friend, is the power of brand marketing. Years of advertising have inundated my psyche with the idea that only two brands of cola exist – and I must choose between only those two. I’m not proud of it, but that’s being an American.

And that, in a nutshell, is why you want to buy a franchise rather than start fresh. I, like most Americans, will go with the familiar rather than take a chance on something new. I’ll choose a chain restaurant rather than a smaller joint simply because my brain perceives it as being somehow “better.” It may be the furthest thing from the truth, but that’s just how my brain operates.

If you still aren’t convinced to stick with the brands, let me put it another way: Do you really want to be the Diet Dr. Cola of your industry?

I thought not.

Franchise "Creature Feature" Writer

Location of Shattered Dreams

The little chicken wing joint near my house (see here) had a U-Haul backed up to the door this weekend. It was a terribly gloomy day; overcast with not a lick of sunshine to be seen. Sullenly, they loaded up the truck with their tables, chairs and appliances. A woman was very carefully folding table cloths and placing them mournfully into boxes. The whole scene really wrenched my heart.

Every time I see a small business go out, especially after only a few months, I can’t help but think of the people whose dream it was to own their own business – and how that dream is being shattered. I imagine that it’s a couple who have worked diligently at back-breaking jobs, and for years plotted and planned the business that would be their savior from the daily grind. They waited until they had just enough money and jumped at the cheapest location they could afford so that they could jump-start that dream a little sooner. I can imagine it so clearly because I know I would be the same way.

What I really wish, is that I could hop back in time and give them a tip about starting a business – location, location, location. It’s a cliché, but obviously one that needs to be trotted out again and again. The primary reason this new venture failed is because they wanted to open a lunchtime restaurant far away from the business district. For such a place to succeed, it needs to be nestled near dozens of businesses so that hundreds of hungry workers can get in and out of it during their arbitrarily set lunch hours.

If the couple starting the business had explored the idea of a franchise rather than going it alone, they might have done a bit better with regard to location. One of the selling points for many franchises is that the franchisor – the company selling you the brand – will assist you in choosing a location. At first, this may seem like too much control on their part, but it’s really in your best self-interest.

Choosing a location can be far more difficult than you might first think. There’s more to analyzing traffic patterns then sitting in front of a location and counting the numbers of cars that pass by. You’ll want to know the quality of that traffic and the demographics. What you’re hoping to discern is if that traffic will actually stop and become patrons. This requires a degree of research that is beyond most people. The franchisor will have the resources to do it properly and you’ll welcome them in the long run.

I just wish that the little wing place had tried signing on with a franchise or at least done some simple research on the location they chose. Perhaps then their dreams wouldn’t be folded neatly into a cardboard box and stored away for the rest of their lives.

Franchise "Creature Feature" Writer

UFOC Negotiation

Humans are born negotiators. It’s natural. After all, before paper money the only way to acquire goods and services was to barter. Even in present day, it is possible to negotiate prices for things as small as a bushel of tomatoes at your local farmer’s market to the more significant haggle process of purchasing a new car. Why, just yesterday I negotiated the security deposit for my new apartment.

We try to alter situations so that we can feel as if we are getting the best possible deal. Saving money makes us feel good. And the bigger the purchase, the bigger the haggle, the better we feel.

So it is only natural that many potential franchisees would attempt to negotiate the UFOC for the particular franchise they are interested in purchasing. Why not? You have a lawyer (hopefully) and that is what lawyers do, alter contracts. But in a case such as this it is necessary to turn off your primal instincts and continue reading.

There are several states which require franchisors to register their franchise agreements with them. And if the UFOC on file varies at all from the one you are trying to sign chances are the state won’t allow it and the franchisor won’t jeopardize their relationship with the state just to satisfy you.

In some cases, the fact that a franchisor is willing to budge at all with their agreement terms might be a sign of a failing franchise, one that is desperate for money. And the last place you want your investment is in a franchise standing on shaky ground.

Of course there are exceptions to every rule. Younger franchises might be more willing to negotiate. And with any franchise, site location should be primarily up to the franchisee. If it isn’t that is one clause that should be altered.

Will your business be your primary source of income?

I love people who throw out statistics in a conversation. You know, the type of person that can miraculously spout off the percentage of how many Yaks migrate from the African Serengeti to Iceland each year. If challenged on the validity of said statistic, they invariably say that they read it in a magazine.

Since I’m not one of those people, I won’t bore you with some vague memory of an outdated statistic on the failure rate of new businesses. Instead, I’ll talk from personal experience.

During college I worked at this great little video store that had very few customers. This made it very easy to study and/or write papers. Very seldom would I be interrupted to do any actual work. Great for me, but I’m sure you’re wondering how the place stayed in business without customers.

The owners did not rely on the store as their primary source of income. In fact, they kept their jobs for the first five years the business was open. It took that long for the store to build up a reliable customer base and start becoming profitable. Even then, only one of the owners could quit her job to run the business full-time.

This was a business they started from the ground up, so obviously buying the brand associated with a franchise will have a better start. However, careful consideration should be made as to whether your new business will be your primary source of income or not.

It can take several years for a new business to start reliably turning a profit. Will you be able to survive that time financially with just what the business brings in? What are your financial goals for your business? Would it make sense for your spouse to keep his/her job until the business can support your entire family?

There are many benefits to keeping one steady earner in your household. Health insurance for a small business can be cost prohibitive. You might be able to have a better, cheaper plan through your spouse’s job. A steady paycheck can make it easier to plan your household budget rather than the erratic nature of your small business.

Before taking the plunge on a new franchise, be certain that the franchise you are buying will be consistent with your goals of being a small business owner. Be ready to endure the painful teething years all new businesses require to become an eventual success!

Franchise "Creature Feature" Writer

Who Sets the Hours?

When I was growing up, I would hear with clockwork regularity my Dad complain about the local lawnmower parts store. It wasn’t that they were under-stocked on the parts he needed. His biggest issue with the store was its hours; it was open Monday through Friday, nine to five.

As my Dad loved to argue, people don’t mow their lawns during banker’s hours. They tend to perform that chore in the evenings or on weekends. For a store that deals in lawnmower parts to be closed during those prime hours, when people would be most likely to need their services, was ludicrous in his opinion. The store eventually went out of business, although not soon enough for my Dad, and a chain hardware store opened in its place where he now obtains the parts he needs for his mower.

I was relating this story to my wife right after I noticed the brand new Wing Joint that had opened near our house was closed on Sunday. Apparently, the new restaurant was only open for lunch during the week, and dinner on Saturday. I used past tense in the previous sentence because the place had already gone under after little more than a month. It’s not located in the business district, but rather near dozens of residential communities; which means they chose their hours poorly. To be successful in that location, they needed to cater to the suburbanites which encircled them and be open for dinner and weekend lunches.

One of the primary reasons employees cite for wanting to be their own boss is the ability to set their own hours. But, does the small business owner really set his or her own hours, or does the business set it for them?

Before you start your first small business or purchase a franchise, you need to carefully consider the hours your business will be running you – because it will, especially if you will be the person staffing it. If your budget doesn’t allow you to hire enough employees to run your business, then you’ll be the owner/operator. If you want to be successful, you’ll have to work your schedule around the business’s needs, not those of your private or family life.

If your primary concern about becoming your own boss is to spend more time with the kids, then be sure the business you are starting will allow you to do that and still run smoothly. It’s the first thing you should consider when deciding which business to own.

By the way, if there are any bankers reading this blog, I suggest you reconsider the whole notion of Banker’s Hours, at least for your tellers. Like the lawn mower store, I’m more available to do banking at nights and on weekends and am typically met with a locked door. There’s no pressure, I’m just throwing that out there.

Franchise "Creature Feature" Writer

Franchise Trade Shows

The hard part is over. You’ve assessed your finances, determined what industry you are interested in, and now you’re ready to narrow it down to the chosen one. The best way to examine your options is to attend a trade show.

First things first -- more research. If possible, obtain a list of participating franchises and narrow them down to the ones in your interest and price range. Then do a little investigating. Google the franchisors and see what you can find. Start a list of any possible questions or comments you might have. A good short list would be the initial investment required, a typical day in the franchise, and product supply information.

The day of the show it is important to keep a few things in mind. The franchises that are at the trade show only make up a very small percentage of those that are available for you. It is also essential to remember that you are selling yourself to these companies as well. You want to be taken seriously as a prospect so wear a suit and bring extra business cards.

Be sure to collect any handouts supplied by the franchises that interest you the most. Leave your contact information and get theirs. After the show organize any materials and set up meetings with representatives from those you feel most serious about.

Franchise trade shows are a great way for shoppers to examine the market and get a lot of information up front. And the best part of trade shows? They happen often and in most major cities.

-- Lady McFranchise

Franchise Basics

So you’ve decided to buy a franchise – congratulations! Now on to the daunting task of deciding which one is right for you.

The first step in the franchise purchasing process is to assess your equity. How much are you worth? It is a hard question to ask yourself, but it needs to be done in order for you to find out where you fall in terms of franchise options. Write down your investment resources: liquid, equity in a home or boat that can be borrowed against, savings, piggy banks, etc. Maybe you have an uncle or cousin who struck it big and promised to help you out if you ever wanted to start your own business. If so, call them. You will use all of the above to invest.

Now that you know where you stand financially you need to figure out what type of franchise you are interested in. Answer some basic questions about yourself such as what types of businesses excite you? What types of products can you see yourself being surrounded by on a daily basis for the next ten years (at least)? What types of businesses is your community lacking? Are you looking for a niche franchise or one with more broad appeal? Will you continue to work during the first year or so of your franchise? List all of your business related strengths and weaknesses.

Once you have completed the personal and financial assessment you will have a better idea of where you stand in the franchise world.

Now it is time to do your research. Start by investigating various industries that spark an interest then narrow them down to the few that will have major growth potential within your community. Contact those companies directly for franchising information. But don’t stop there. Search the internet for any news articles pertaining to those franchises and the particular industry you are getting involved in.

It is also helpful to find out specific franchise related law within your state and to search the Federal Trade Commission’s website as well (www.ftc.gov).

-- Franchise "Info Creature"

What is a Franchise?

Before any meaningful discussion of franchises can begin, it’s important to first define “franchise.” A franchise is a business or set of business practices, usually associated to a brand name, which is sold to an individual to operate in a geographic territory.

The main advantage for the buyer (the franchisee) is brand recognition. From the outset of their business venture they know customers will be familiar with the product. The franchisee will not have to spend considerable advertising and marketing dollars to promote and familiarize consumers with the name of the business.

The extent to which the franchisor will assist the franchisee in operating and/or promoting the business depends on the type of franchise that is purchased, and the stipulations of the franchise agreement.

Essentially there are two types of franchises sold. The first is referred to as a “product and trade-name franchise.” These are businesses established to sell a particular brand name product. A car dealership is the most common variety. When the franchise owner purchases the rights to sell the product, he/she is not purchasing any operational procedures. This gives the franchisee the freedom to run the business as he/she deems best. The franchise owner can choose everything from the design of the building to the style of operation.

The second type is a “business format franchise” which entails the sale of not only the brand, but operating procedures, management support, training and facility design. First time business owners are attracted to the business format franchise precisely because it takes so much guessing and experimentation out of the mix. The owner can be confident that he/she is purchasing a proven business model that has a greater possibility of succeeding.

Franchise "Creature Feature" Writer

Welcome to Franchise Monster

Hate your boss? Hate your hours? Are you driven by that unmistakable feeling that if you ran things at your company then it would be more profitable and efficient? Then perhaps it's time to take charge of your own destiny and become the boss!

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