What’s involved in purchasing a franchise?

Starting a new business is a daunting enterprise especially if you are introducing your own brand and have to struggle to attract the clients so they can get to know you and your company. Another alternative is to buy a franchise that has a client base and is already well-known. What do you need to know in order to purchase a franchise and become part of a chain?

First of all, you have to realize that even if you buy a franchise it does not mean that you have a recipe for success. In many cases, you buy the right to use the brand, but you are not given the information of how to make a success out of that business. How to manage employees and how to deal with clients is up to the purchaser of the franchise. However, there are franchises who offer more than the use of the name. Some franchises offer training for management and accounting personnel. They will provide the food if it is a restaurant or fast food franchise or the products to be marketed. This comes at a price of course.

There may be fees that you don’t expect. You will be obligated to pay a good part of your profits to the parent company. You will have to be responsible for hiring and paying employees, taxes and operating expenses.

A very important point to consider is that you don’t have a lot of control over many of the business aspects. You will be required to follow the parent company’s way of doing business. After all, they have a proven track record for success.

Latest Posts

Monsanto Restricts GMO Cotton Seed to India

Monsanto Restricts GMO Cotton Seed to India

Monsanto Co. recently withdrew an application that was seeking regulatory approval for cotton seeds to be sold in India. This took place in the middle of a debate with the government on the subject of royalty fees. According to the spokesperson of Monsanto Co., Christi Dixon, the application was…

Brexit vote: Finance ministers meet to discuss impact

Brexit vote: Finance ministers meet to discuss impact

An urgent meeting with Chancellor George Osborne has been called by UK finance ministers from the three devolved governments. This came after Finance Secretaries Derek Mackay from Scotland, Mairtin O Muilleoir from Northern Ireland, and Mark Drakeford from Wales met in Cardiff. The finance ministers…

Wells Fargo fined for $70 million for mortgage malpractice

Wells Fargo fined for $70 million for mortgage malpractice

The U.S. Comptroller of the Currency fined Wells Fargo on Wednesday due to some malpractice in mortgage services. Between March 2013 and October 2014, according to the regulator, Wells Fargo made some escrow calculation errors. These errors, in some cases, led to incorrect denial modifications. The…

What you need to do before you quit your job

What you need to do before you quit your job

Quitting your job is a dream for many, especially if you’ve been unhappy there! In other cases, it may be as simple as moving on to greener pastures: a higher salary, a better position, or a company that is more compatible with your career and personality. Regardless of the scenario, ending…

How do you determine if you can buy a house?

How do you determine if you can buy a house?

Owning a home is a gigantic milestone in our lives. It’s not a decision that should be taken lightly as it is a huge financial commitment, and locks you into a specific neighborhood (renting always keeps your options open). If you think you’re ready to buy, there are a few things to keep…

What is a Mutual Fund?

What is a Mutual Fund?

There is no strict legal definition of the term “mutual fund”. Usually, the term “mutual fund” means an investment fund that is open to the public. A mutual fund is a way of investing money collectively with other investors. The main advantage of investing capital through a…

What is a Mutual Fund?

What is a Mutual Fund?

There is no strict legal definition of the term “mutual fund”. Usually, the term “mutual fund” means an investment fund that is open to the public. A mutual fund is a way of investing money collectively with other investors. The main advantage of investing capital through a…

Greece’s last chance to be in the Eurozone!

Greece’s last chance to be in the Eurozone!

On July 7th , 2015, European leaders will have a final word with Greece and there they will decide how to respond to the Greek referendum. The country is almost bankrupt and the complete financial structure has been collapsed. Standing in such a grave crises when the question rises whether Greece…

LATEST Videos