Franchises and Multi-Level Marketing 4
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What will it cost to buy a franchise?
Depending on which franchise you are interested in, your initial franchise fee could be as little as $1,000 or as much over $100,000. On top of the initial franchise fee, there are other significant startup fees. So, the total cost of buying and launching a franchise location could run from under $10 thousand, to as much as a million dollars.
What's involved in running a franchise?
Even if you will be able to hire other people, you yourself will need to know how to operate all phases of the business since you may need to train employees or fill in for them when they are absent or if they leave. You will also need to be a good manager and salesperson and keep good records.
Can I avoid market research by buying a franchise?
No. While the franchise company may help with site selection and other details, there is no substitute for doing your own research. Remember, a franchise isn't something you can walk away from easily if it doesn't work out. Therefore before you sign the franchise agreement, make sure you determine how many sales you will have to make to be profitable and whether your territory has the population and the demand to make it likely you can reach that sales figure even if a competitor opens.
Can I sell the franchise?
Some franchises allow you to sell if you can find a buyer, and some don't. The UFOC will tell you what the franchise's regulations are regarding sale or transfer of your contract to anyone else.
Is there any place where I can get more information about franchising?
The International Franchise Association has a catalog that includes various publications about franchising. For information about the association or to get a catalog, call or write:
International Franchise Association
1350 New York Avenue, NW Suite 900
Washington, D.C. 20005-4709
(202) 628-8000
fax 202-628-0812
http://www.franchise.org
ifa@franchise.org
In addition you can find information about franchising quite regularly in Entrepreneur magazine (http://www.entrepreneurmag.com [main site: http://entrepreneur.com Magazine site: http://www.entrepreneur.com/mag/ Not sure which one you want.]), Inc. magazine (http://www.inc.com) and in Small Business Opportunities magazine. Entrepreneur and Inc. both have searchable franchise databases on their web sites.
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