How to sell franchise

If you worked hard to put a franchise on its feet, it is normal you need to recover investments and a considerable profit. Many franchise owners arrive unprepared in the position to be able to sell the franchise, threatening to earn less than they invested. Here are some tips to keep in mind when you want to sell the franchise.

It is important to inform your franchisor of plans to sell the franchise right from the beginning of the process. Many franchisors have established certain contract terms when it comes to selling the franchise. Study these rules to make sure that everything is in order.

Might the same contract terms as in franchisor is required to give you advice during the sale. Set franchise value, fixed price, gather financial information and inform your employees, if necessary. Ask again what the franchisor should be doing to manage to sell the franchise.

It is imperative to have some data about the market before they remove the franchise for sale. How many such operations have taken place recently? It is a good time to sell now? What kind of person should buy the franchise? You may find that now is not the best time to sell.

But on the other hand, you realize that your franchise is more profitable than you thought. It is not enough that your franchise is the best deal in town, if buyers have not heard of it. Make sure you use an aggressive technique to promote franchising.

How to sell franchise

If you worked hard to put a franchise on its feet, it is normal you need to recover investments and a considerable profit. Many franchise owners arrive unprepared in the position to be able to sell the franchise, threatening to earn less than they invested. Here are some tips to keep in mind when you want to sell the franchise.

It is important to inform your franchisor of plans to sell the franchise right from the beginning of the process. Many franchisors have established certain contract terms when it comes to selling the franchise. Study these rules to make sure that everything is in order.

Might the same contract terms as in franchisor is required to give you advice during the sale. Set franchise value, fixed price, gather financial information and inform your employees, if necessary. Ask again what the franchisor should be doing to manage to sell the franchise.

It is imperative to have some data about the market before they remove the franchise for sale. How many such operations have taken place recently? It is a good time to sell now? What kind of person should buy the franchise? You may find that now is not the best time to sell.

But on the other hand, you realize that your franchise is more profitable than you thought. It is not enough that your franchise is the best deal in town, if buyers have not heard of it. Make sure you use an aggressive technique to promote franchising.

Reasons leading to the bankruptcy of a franchise

Franchising has become the most dynamic method of business development. But, like any other investment, purchasing a franchise is no absolute guarantee of success.  Not everyone knows how to successfully operate a franchise. If you do not know how to run a franchise, you go bankrupt sooner than you think.

Talk to franchisees that are already part of the system to find out opinions about the franchise. To understand why most franchises go bankrupt can help you ask the right questions. Knowing this information, it will be easy to assess whether a franchise will be productive or not.

Here are some of the most common reasons why a franchise can go bankrupt, followed by some questions for potential franchisees.
Lack of demand product or service can be caused by franchise location in a given territory.

In some cases, franchisees may be located too close to each other, making it into position to compete directly for the same clients. Make sure you ask the franchisor on how the territory will be divided. Ask if franchisees operating territory is large enough so that the opportunity to develop new units in a given territory, for a certain period of time.

Also, ask them if they are satisfied with the way the territory was divided. Make sure you or your accountant that you balance employee calculate the capital required, and do an analysis of income. Ask the franchisor if he runs the franchise has done financial expectations.

How to buy an expensive franchise

It is not easy, but not impossible. There is a difference between the cost of entry into the network and operating cost. Input costs in the network include the right of entry and other expenses specific brands: store planning, specific materials, decorations, etc. training. Operating costs include fees and some expenses that are required by each network: continuous training, changes in concept, using the best software, etc.

Some of these expenses are necessary for anyone wishing to enter the same market. To know the exact cost of the franchise must therefore calculate the difference between these costs and those imposed by the franchisor. The criteria for choosing the right entry by franchisors.

Some franchisors to accurately calculate time to each new franchisee. Others choose it according to what I feel, by intuition, that the interest rates charged by other franchise in the same sector. There are franchisors who shared input costs right: the right to trade, training and materials (trade mark, information systems, the features).

This formula provides an opportunity to compare these components with equivalent services and materials on the market. It is also good to know that 10% – 30% of right of entry to arrive at a foreign firm which aims to promote the franchise network.

Franchises – a successful business

Difficult economic situation of the momentum it has cut contractors and the only units that are still open in the franchise system is the food. Until now, a franchise business was the most handy for those who have a “smattering” of money. Currently, only fastfood restaurants and cafes still have success. Avoid potential entrepreneurs from making investments, however small they may be, whether its business or some franchise.

No longer looking for anything too, avoided potential franchisees to take a decision now. Whoever investing now choose a franchise with low expenses – up to 15,000 euros, maybe a start-up food or technical services. In addition, studies show that almost 40% of their income on food supplies. According to information from the website francize.net, investment in such a franchise is 7,000 euros, including a franchise fee of 2,000 euros.

Franchise – Library of books at half price

“Remainders” means books at half price – unsold copies of a wrong publisher circulation, cover, title, subject or price. The term was born in the United States where this market is active in the early years of last century. In Europe only just arrived in the ’60s, when Italian Biagio Mellon and opened its first outlet in Milan.

Book at half price formula stated immediately in Italy. Today, remainders owns about 3% of the book market in the peninsula, with a turnover in 2006 exceeding 50 million. Small commercial addition, large amounts of merchandise sold.

How does remainders market? Publishers do not sell directly to retail merchants, but wholesalers, who buy large quantities of unsold books at a discount price between 85 and 90%. From them, the trader buys books at 20-30% of the cover price, then reselling them for 50%. Added margin trading is not very attractive, because that’s why turnover should be higher.

Location is a factor. Not really necessary to open outlet in the city zero – is sufficient identification of pedestrian traffic, for example, subway stations, near schools, commercial complexes .

Franchise – artistic arrangement of fresh fruit

Such a bouquet is a real delight for the eyes and tongue, he perfectly combining a slice of orange or grapefruit, pears and strawberries cut artisitic, bananas cut in various forms. Of course, all fruits are very fresh. The product is an excellent gift for any occasion and can be purchased directly from an Edible Arrangements store or by delivery to the address, at a certain time. For this second situation, Edible company uses a van with refrigeration compartment.

The business was launched in 1999 by Tariq Farid, who already had 11 years experience in the field of classical floral arrangements. Fruit bouquet idea discovered it during a trip and suddenly inspired to try to test it: armed with a few crates of fruit and a set of knives, began to make roses from the flowers of strawberry and pineapple. He gave her a personal note pouring in some chocolate products. Thus, after several months of experiementari, decided it’s time to make the decisive step and opened a shop specializing in such arnajamente.

Success was instantaneous. News about new shop quickly and went in less than a year, Farid gave their business in franchising system. Edible Arrangements stores number grew rapidly, so at this time include 1,300 business units and register a turnover of $ 200 million.

Franchises – Cleaning Services

Ariel Services specializes in cleaning and maintenance services tailored and peculiarities of all kinds of spaces and locations. Firm offer complete cleaning services include interior, ranging from joint operations (cleaning and degreasing floors with detergent suitable carpet vacuuming, window cleaning and disinfection, etc.). To complex operations (cleaning carpets and rugs, cleaning heaters and scales suction-ventilation) and cleaning after construction.

Company seeks potential partners and franchisees nationwide to offer professional cleaning and maintenance services throughout the entire territory, making available to them: 1) material resources necessary – strippers, detergents for cleaning floors, carpet, bathrooms, maintenance products and wood floors, all solutions are biodegradable, environmentally friendly and clean.

2) equipment and professional tools – single disc machines, vacuum cleaners, vacuum cleaners and liquid cleaners carpet foam based dry cleaning machine with dry wash system. Are characterized by a construction equipment ergonomics, low noise, high reliability and increased productivity. In addition, they can very easily transported and handled.

3) Ariel Services team experience in the field – team cleaning agents are trained to Western standards is reflected in increased efficiency in fulfilling orders by following procedures.

Franchise – Personalized Playing Cards for Children

J.M student spent a beautiful afternoon with family, playing cards. Package used was one quite popular in the U.S. at that time, with photos printed books the most important players in the National Hockey League. “One day I get myself a picture-book that,” he said at one time seven-year-old nephew of J. and instanteneu a business idea to shine in the minds of young students.

In six months, he already had a small business offering customized packages with playing cards, a business that has grown continuously since then. His company, Future Stars Sports Photography, currently has an impressive experience: over 250,000 copies and photographed a wide range of objects that can be customized, some quite common (key chains, calendars, school schedules, mugs, pens, mouse Pads, shirts), but more unusual: a color print reproduces the cover of your favorite sports and photography that is to be found small client front page of a newspaper sports (made in the same idea), pennants, trophies or panels basketball land behind the house – all bearing the picture of the child and appropriate text.

For photography, the company has a huge studio in a total space of approximately 1,200 sqm. 30 employees working here which deals with both the shooting itself and the computer model for designing future product, inserting digital images taken in the studio. During peak months, they end up producing more than 100,000 custom objects.

Franchise – Fitness for women only

After 27 years, F.K, founder of titness, noticed how bad it is for women to use a common fitness room: handling difficulties and their mounting devices created problems, the system of operational up / down and could lead to injury, plus any atmosphere itself was not attractive. F.K came up with a new concept of room to eliminate these disadvantages.

First, it was a location strictly for women, with an appropriate setting, in place of professional designers, then, all devices were hydraulic (no weights needed), and their use implied movements pulled / pushed, much less dangerous. Finally, exercise programs were both fitness programs, and weight loss (as customers shot two birds with one shot) and had a duration of only 30 minutes, which makes them very accessible.

Today, Curves franchise is an international network with over 9,000 locations. The initial investment to enter the business is $ 44.900, the amount that includes a set of devices with 24 workstations, appropriate training, operational manuals, tailored to the specific advice of the franchisee. Monthly fees must be paid 6% of the turnover and an advertising fee of 3%, which will go towards promoting the overall chain .