2010 Trends For Franchise Companies
If you are considering taking the step of "buying" and operating a franchise for sale in 2010, it is best to know the markets you are considering before ever taking the next steps towards signing a franchising agreement. No matter whether it is a large or small franchise, brick and mortar or home based franchise you want it to withstand the test of time and not be another of the many that is sporting a 'going out of business sign' in the near future.
One of the key pieces of research that should be considered while looking through franchises for sale is a look ahead at the franchise market of 2010 report, offered by Pricewaterhouse Coopers LLC. The International Franchise Association Educational Foundation commissions the report annually.
The overall good news in the report is that the franchise market as a whole will be receptive to a 2% growth in franchise establishments in 2010 with an increase in revenue of 2.8%. Yet, each industry has it's own growth expectations and some are better than others.
Automotive
According to the Pricewaterhouse Coopers LLC report, the automotive industry is in for a moderate increase of 2.2% over 2009 with increased spending in the area of 36.4 billion dollars industry wide.
Commercial and Residential Services
The increase in the commercial and residential services industry is expected to be less impressive, in the area of 1.5% in spending in 2010 for overall spending of 38.2 billion dollars for the industry.
Quick Service Restaurants
Fast food restaurants are those that are expected to continue to do well as the top restaurant franchises, no matter what the economy does. This industry is slated for a 3.2% increase in sales for a total output of $203.6 billion dollars for the market with many of the top 100 franchises being in this category.
Table/Full Service Restaurants
As the economy begins to pick up, more and more people will be willing to pick up the bill for a sit down meal that they may have skipped on in the past. For this reason the table/full service restaurant industry is expected to see a 2.3% increase in 2010 with total output of $64 billion.
Retail Food
It seems Americans are going to be happier to purchase more food for the house in 2010 as well. The 2010 industry trend report forecasts a 2.3 percent increase in the retail food market equating to sales of 67.5 billion dollars.
Lodging
Many who had passed on vacations over the past few years because of the economy may be a little more willing to travel now. The lodging industry is expected to show overall output in 2010 of 62.7 billion dollars, a 1.8% increase over last year.
Real Estate
While the real estate industry has been struggling for the past few years, 2010 should begin to turn things around. The franchise real estate industry is forecast to see an overall output of 22.8 billion this year or a moderate 1.4 percent increase.
Retail Products and Services
More consumers are going to be comfortable with retail spending. Franchises in this market can expect a 2.5% increase in 2010 with total spending in the industry at 50.5 billion dollars.
Business Services
Even those who do business are willing to spend a little more in 2010 on services they need. The expectations for this industry, even a small franchise business, are for an increase of 2.6% or total spending near 189.6 billion dollars.
Personal Services
When people feel better about the economy, they are willing to spend more on themselves. This is why the personal services industry is expected to see growth of 4.4% this year with a total output of 132.8 billion dollars.
Franchise Companies are offering business opportunities all over the U.S.
Monday, March 29, 2010
Sunday, January 24, 2010
Franchise Companies: Business to Business
Franchise Companies: In a business-to-business or B2B franchise, your clients are other entrepreneurs, business owners and managers, rather than consumers and the general public.
You will be providing products or services, such as accounting, secretarial, cleaning, computer or staffing support, to other businesses.
Business-to-business operations generally follow an 8-to-6 schedule, but can be flexible, and may require you to be available after hours. Benefits include the opportunity for steady monthly income, and long-term clients with contracts that renew automatically.
Who will be successful in a B2B franchise? Someone who doesn't want to sit at a desk all day, likes outside sales, and enjoys networking. If you are not comfortable with the sales process – setting appointments, making presentations, follow up, closing the deal – there are resources available to help you learn.
You may have fewer customers, but higher average sales per customer. Once you build your business, and have an established customer base, you may be able to work only a few hours a day.
FranchiseSforSale.com is the ultimate resource for franchisees and franchisors. Clients include growing franchisors and those who are seeking self-employment or looking into franchising. FranchisesForSale.com provides individuals with franchise information about quality, growing franchises and helps to educate them about the franchise buying/award process.
Franchisors receive additional online exposure of their franchise opportunity while obtaining qualified leads for franchisees. FranchisesForSale.com understands the franchise award/sale process; therefore, they take the time to qualify the leads.
You will be providing products or services, such as accounting, secretarial, cleaning, computer or staffing support, to other businesses.
Business-to-business operations generally follow an 8-to-6 schedule, but can be flexible, and may require you to be available after hours. Benefits include the opportunity for steady monthly income, and long-term clients with contracts that renew automatically.
Who will be successful in a B2B franchise? Someone who doesn't want to sit at a desk all day, likes outside sales, and enjoys networking. If you are not comfortable with the sales process – setting appointments, making presentations, follow up, closing the deal – there are resources available to help you learn.
You may have fewer customers, but higher average sales per customer. Once you build your business, and have an established customer base, you may be able to work only a few hours a day.
FranchiseSforSale.com is the ultimate resource for franchisees and franchisors. Clients include growing franchisors and those who are seeking self-employment or looking into franchising. FranchisesForSale.com provides individuals with franchise information about quality, growing franchises and helps to educate them about the franchise buying/award process.
Franchisors receive additional online exposure of their franchise opportunity while obtaining qualified leads for franchisees. FranchisesForSale.com understands the franchise award/sale process; therefore, they take the time to qualify the leads.
Monday, December 21, 2009
Franchise Companies: 7 Steps to Owning a Franchise
Franchise companies are sought by many savvy entrepreneurs who want to be their own boss but don’t care for the risks and hassles of building a business from the ground up.
Are you ready to be your own boss? Are you considering buying a franchise? There is a lot to consider when choosing the franchise company you want to be a part of.
A franchise is awarded by the franchise company (franchisor) to the buyer (the franchisee). There is an application to submit, due diligence on both sides, criteria to fulfill and much more. You are creating a business relationship, often committing to 10 years, and this is not to be taken lightly.
There are 7 steps to franchise ownership:
1. Find a franchise concept that fits: Look at a list of franchise companies to explore available concepts and opportunities. There are more than 1,100 franchise companies currently registered with the International Franchise Association. You can find many healthy, growing franchise companies at FranchiseSforSale.com.
2. Submit request for consideration/application: Choose two or three industry categories such as casual dining franchise, automotive franchise, cleaning franchise, health care or senior care franchise. Within each category, choose one to three concepts or franchise companies from which to request information. FranchiseSforSale.com has search tools for contacting franchise companies to request information.
3. The Franchise Disclosure Document: Use this document to explore in detail the industry, the franchise company, its business model, the role of the franchisor and the role of the franchisee. The franchisor will provide all of this in their Franchise Disclosure Document (FDD).
This document is required by the Federal Trade Commission (FTC) to help you understand the franchise company model, fees and commitments in the Franchise Agreement. This is the legal document that defines the relationship between the franchisee and franchisor.
The FDD can be over 200 pages long and it is very important that you take the time to read it. Start with the sections that interest you the most, such as fees, restrictions, training, advertising, hours of operation, etc…Learn about your obligations as the franchisee and what the franchisor will and will not provide.
4. Training and Support Overview: One of the greatest benefits to owning a franchise is that the franchise company has done the ground work for you. They have created the concept, researched the market, developed the product and are willing to share their trade secrets, marketing and training programs with you.
The franchisor should provide you with a detailed outline of the kind of support, both operational and marketing, and training you can expect. Franchise companies may provide on-site training or require you to travel to them for training. Some have detailed advertising and marketing support; others provide online and phone support.
5. Franchise Disclosure Review: This is an in-depth conversation or interview with your Franchisor Representative where you will review the FDD and discuss available territory. This is your chance to go through the FDD section by section and ask any questions that may have come up in the process of exploring the franchise opportunity.
6. Franchise Due Diligence: Now you have a good understanding of the franchise company, the franchisor, their industry, marketing, operations and support for franchisees. Before making a final decision you should speak to someone at the corporate office of each franchise you are considering. In addition, you should also contact several franchisees from each to see how they are doing, if they are happy or if they have any complaints.
7. Celebration or Discovery Day: If all goes well this is the final step in the mutual evaluation process before being awarded a franchise business. This is the day you sign the Franchise Agreement and meet the department heads and key executives who will work closely with you as a franchisee.
With so many different types of franchises for sale, and more new franchise opportunities available every day, FranchiSesforSale.com can help you sift through all the information and choose the franchise opportunity that is right for you. Use their proprietary matching system to streamline your selection process and get you on your way to owning your own franchise business.
Are you ready to be your own boss? Are you considering buying a franchise? There is a lot to consider when choosing the franchise company you want to be a part of.
A franchise is awarded by the franchise company (franchisor) to the buyer (the franchisee). There is an application to submit, due diligence on both sides, criteria to fulfill and much more. You are creating a business relationship, often committing to 10 years, and this is not to be taken lightly.
There are 7 steps to franchise ownership:
1. Find a franchise concept that fits: Look at a list of franchise companies to explore available concepts and opportunities. There are more than 1,100 franchise companies currently registered with the International Franchise Association. You can find many healthy, growing franchise companies at FranchiseSforSale.com.
2. Submit request for consideration/application: Choose two or three industry categories such as casual dining franchise, automotive franchise, cleaning franchise, health care or senior care franchise. Within each category, choose one to three concepts or franchise companies from which to request information. FranchiseSforSale.com has search tools for contacting franchise companies to request information.
3. The Franchise Disclosure Document: Use this document to explore in detail the industry, the franchise company, its business model, the role of the franchisor and the role of the franchisee. The franchisor will provide all of this in their Franchise Disclosure Document (FDD).
This document is required by the Federal Trade Commission (FTC) to help you understand the franchise company model, fees and commitments in the Franchise Agreement. This is the legal document that defines the relationship between the franchisee and franchisor.
The FDD can be over 200 pages long and it is very important that you take the time to read it. Start with the sections that interest you the most, such as fees, restrictions, training, advertising, hours of operation, etc…Learn about your obligations as the franchisee and what the franchisor will and will not provide.
4. Training and Support Overview: One of the greatest benefits to owning a franchise is that the franchise company has done the ground work for you. They have created the concept, researched the market, developed the product and are willing to share their trade secrets, marketing and training programs with you.
The franchisor should provide you with a detailed outline of the kind of support, both operational and marketing, and training you can expect. Franchise companies may provide on-site training or require you to travel to them for training. Some have detailed advertising and marketing support; others provide online and phone support.
5. Franchise Disclosure Review: This is an in-depth conversation or interview with your Franchisor Representative where you will review the FDD and discuss available territory. This is your chance to go through the FDD section by section and ask any questions that may have come up in the process of exploring the franchise opportunity.
6. Franchise Due Diligence: Now you have a good understanding of the franchise company, the franchisor, their industry, marketing, operations and support for franchisees. Before making a final decision you should speak to someone at the corporate office of each franchise you are considering. In addition, you should also contact several franchisees from each to see how they are doing, if they are happy or if they have any complaints.
7. Celebration or Discovery Day: If all goes well this is the final step in the mutual evaluation process before being awarded a franchise business. This is the day you sign the Franchise Agreement and meet the department heads and key executives who will work closely with you as a franchisee.
With so many different types of franchises for sale, and more new franchise opportunities available every day, FranchiSesforSale.com can help you sift through all the information and choose the franchise opportunity that is right for you. Use their proprietary matching system to streamline your selection process and get you on your way to owning your own franchise business.
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