8 Things to Research Before Becoming A Franchise Owner

Business Entrepreneurship Tips

If you’ve decided that you’d rather buy into an already-successful franchise than risk starting your own business, there are some things you should know before you go ahead with your decision. Fast food franchises, such as Quiznos, Checkers and Wendys, for example often encourage individuals like you to buy into the franchise, but it’s up to you to do your homework before investing. You would own your own location, run your own store and be your own boss. You would be responsible for hiring and firing employees, and you would get to learn how to run a business. You’d of course have to pay a royalty to the franchise corporation, but the rest of the profits from your location’s sales would belong to you. Opportunities are abundant when it comes to being a franchise owner, and you just have to do your research to ensure that you are buying into a reputable franchise with strong brand power and a loyal customer base. If you need help with your market research, get in touch with a company such as Circle Research who will answer any of your questions.

Here are 8 things you need to research about a franchise before buying into it.

  1. Do customers love them? It’s crucial that you research how popular this franchise is before buying into it. Do the customers love it? Do customers leave positive reviews about the food? Quiznos, for examples, is known for its quality and customers can’t stop talking about how fresh the ingredients are and how flavorful the sandwiches are. And yes, there currently are Quiznos franchise opportunities.
  2. How strong is their brand power? In other words, how well known are they? How strong is their brand? How successful are their marketing campaigns? If their brand is in good standing, reputable, widely recognized and positively regarded, that’s a great thing.
  3. How many franchises do they have? It’s better to buy into a franchise that doesn’t have too many locations. For example, there’s a Starbucks on every corner, and several Starbucks locations compete with each other (they compete with their neighbor two blocks away). If there are less locations, there is less competition.
  4. What locations are available? When it comes to owning a franchise, three words come to mind: location, location, location. It definitely matters what location is available for you to buy. It would be amazing to get a location near a business district (hello, lunch breaks!) or near a university, or on a busy street that gets a lot of foot traffic. Sometimes the locations that are off of a busy highway do quite well also. Definitely put some serious time into researching the location.
  5. How reasonable are the costs? Owning a franchise comes with costs. You’ll have to pay for employees, inventory, equipment and more. You’ll also have to pay a royalty (franchise fee) to the franchise corporation. Research these costs to make sure they aren’t completely unreasonable. You should decipher what your total investment costs will be before you make your decision.
  6. How long will it take to break even? Since owning a franchise involves some up-front costs, you should research how long it will take to break even. The reason this is important is because you don’t truly start profiting from the business until you break even. Sometimes, this can take awhile. You have to be willing to wait to see the profits.
  7. What is the earning potential? Your research should include an attempt to figure out how well a franchise owner in a comparable location is doing. You should ask leading questions to figure out what your earning potential could be if you buy into this franchise.
  8. What level of support does the franchise corporation offer? Support is key, and many franchise corporations offer an incredible level of support to their individual franchise owners. Support comes in the form of instructions, guidance, materials, deals on equipment, negotiations on your behalf, advice, etc. Ask the franchise corporation what they offer in terms of support.

 

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5 Things To Spend Your Inheritance Money On To Guarantee That Your Fortune Grows

Money Tips

If you’ve been fortunate enough to come into a large inheritance, it goes without saying that the question of how do I spend all this money, is a very good problem to have. It’s crucial that you think before you spend and get advice from professionals. That means no big impulse purchases during your celebratory phase when you first receive the money, even if it’s burning a hole in your pocket. Every single purchase beyond your regular daily expenses should be carefully thought about. There are also clever things you can do with your inheritance money, such as smart investments, that will guarantee that your fortune not only lasts, but that it also grows.

Spend money on a reputable financial advisor. The best way to hold onto sudden wealth is long term, strategic planning. Your fortune will erode much faster than you expected if you don’t get that cash managed. People often overspend to the point where they’d have to actually have inherited three times that amount in order to be able to spend that much. Financial planners often have people come to them years after they inherited their fortune, because they’re shocked at how quickly it’s depleting and they get scared into seeing a planner. So, why not just spend some good money hiring a good financial advisor from the very start? Seems wise. They can guide you as far as what funds to invest in, and how to plan strategically for the long term growth of your fortune.

Invest in home real estate. Yes, when you have money, you should invest in an asset such as home real estate, in a location that is in predictable demand. You shouldn’t necessarily live in your investment. Home owners can often profit off tenants paying rent that is higher than their mortgage, all the while having their tenants pay off an asset that they own.

Invest in a franchise. Investing in a franchise can really pay off in the long run, and it’s an investment you can safely profit off of. One of the reasons why so many people who want to do this end up not doing it, is because investing in a franchise does requires some significant upfront costs. If you have the money, however, it can be a fantastic investment. Being a franchise owner offers consistent income, and the sales at your location are yours to keep aside from a royalty fee paid to the franchise corporation. If your franchise is a reputable business with strong brand loyalty (such as a Checker’s franchise or a Quiznos franchise) and your location is a good location with lots of foot traffic, you could see your investment grow far past the point of breaking even, into some serious profits. You’ll be strategically supported by the franchise corporation for the entire time you are in business, and you’ll be investing in a tried and tested market that already is doing well. This is a clever investment and a good way to spend some of your inheritance.

Put some of it in an RRSP or 401(k) plan. If your goal is to put a chunk of the inheritance away, saved for retirement, then you should contribute a large chunk into your RRSP or 401(k). One of the smartest things you can do with inheritance money is put a large portion of it into your retirement account. Your retirement fund is tax-sheltered, and the contributions you make to it are tax deductible. The fact that your contributions into your own savings account can actually lower the amount of tax you owe at the end of the year makes it a very intelligent investment.

Pay off debts. Having debt will only hurt you in life, which is why you should use some of your inheritance money to pay off your debts. First of all, you’ll be happier once your debts are gone. You’ll sleep better at night, and you’ll feel less stressed because that huge weight is off your shoulders. Secondly, being debt- free puts you in a position of having good credit, which leads to more opportunities. Considering how much interest costs on your debt, by paying it down to zero, you’ll ultimately save yourself thousands and thousands of dollars in interest you’d otherwise pay over the years. Just because you can’t see the savings, doesn’t mean they aren’t there.

Receiving inheritance money can be quite exciting, depending how much money you receive. But just spending it willy nilly is very silly, investing it into a reliable source like investor shield bonds, is very sensible and extremely smart.

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