In addition, few barriers to entry exist when starting a cleaning and maintenance business. The dollar investment is relatively modest and anyone who’s spent time cleaning and maintaining their own home can usually master the rudiments of both household and commercial cleaning techniques.

While going it alone has proven to be a successful path for many entrepreneurs, the alternative of purchasing a cleaning and maintenance franchise, from a reputable and successful franchise company, has a number of decided benefits.

Perhaps most important, you immediately enjoy instant recognition based on the franchise company’s extensive system of franchisees and their heavily advertised brand and services.

It’s the difference between owning a Tom, Dick or Harry cleaning company versus a Jan-Pro, Jani-King, Servicemaster or other leading cleaning franchise.

Without endorsing any specific franchisor, it’s interesting to note that Jani-King alone has more than 13,000 franchisees in 17 countries – all of them benefiting daily from heavy levels of corporate advertising support.

Contrast that to a single, local entrepreneur with limited time and funds for advertising and customer prospecting.

In addition, cleaning and maintenance franchisors typically offer extensive training in commercial cleaning techniques and a wealth of experience about the most efficient and effective methods, supplies and equipment.

The collective experience of these large, successful franchisors virtually ensure that their tested systems and supplies will achieve better results than all but the most experienced independent cleaning services.

Cleaning and maintenance franchises are the kinds of businesses that are “evergreens”. There will always be a demand for them. In fact, increasing awareness of the number of potentially dangerous substances that can accumulate in homes, have led more people, each day, to utilize professional cleaners to ensure their home and workplace environments are safe.

Provided you have the capital to invest, all of the above advantages can be yours — along with a proven method of operation, help in developing a customer base, effective advertising and promotional programs and more — as a franchisee of an established cleaning franchise.

If that sounds like the kind of business you’d enjoy operating and owning, the Internet is an excellent place to begin your research.

To learn more about the many opportunities available to you in today’s exciting world of franchising, type FranchiseRight into your search engine and visit all of our websites.

Growth

When evaluating the purchase of a particular franchise the franchisor’s rate of growth can be a two-edged sword. On the one hand, a growing franchise system promises accompanying increases in brand recognition and customer traffic. On the other hand, a franchise system that’s growing too rapidly may not have the resources to adequately support their franchisees with the services promised in the franchise agreement.

That being the case, gaining an understanding of the franchisor’s financial position and staff size relative to their rate of growth is important in determining their ability to properly support their franchisees. Speaking to a number of the most recent franchisees is a good way to get an accurate reading on how well a franchisor is fulfilling their obligations at any point in time.

Credentials

Franchisors come from a variety of backgrounds. Some have successfully owned and operated their own small business before turning it into a franchise. Others have worked in executive positions with other franchise companies prior to starting their own. Still others are pure entrepreneurs that have taken an innovative concept and gone directly from idea to franchise development and operation.

Given the diverse backgrounds of franchisors it’s important to determine whether he or she has enough experience in actually managing a franchise system to ensure that you’ll receive the training, assistance and ongoing support that you’ll need to become a successful franchise operator.

Support

To a great degree the amount and quality of support that you receive from a franchisor will be in direct proportion to their management skills and the length of their track record.

Generally speaking, franchise systems that have proven records of success over long periods of time have achieved this because of the extent and quality of support they provide to their franchisees. However, it remains important to ask certain questions, beginning with what training and continuing support the franchisor provides? And, how the training they provide measures up to the training others in the same industry receive?

Self Evaluation

Perhaps the most difficult aspect of choosing a franchise is assessing your own suitability to function successfully as a franchisee within that organization. This involves taking an objective look at your background, skill sets and interests as well as your financial and personal goals. Do you have sufficient capital available not just to purchase that franchise but to operate it successfully until such time as profits can be taken? Do you have a genuine interest in the type of business you’re thinking about buying or are you just focused on the possible financial rewards? Will you be comfortable with the regimen required and the need to follow directions to the T in order to achieve franchising success? Are you, in effect, suitably matched and personally and financially prepared to partner successfully with the franchisor you’re considering?

For more information regarding the purchase of a franchise business, type FranchiseRight into your search engine and visit all of our websites. You’ll find details on our monthly FranchiseRight Boot Camps designed specifically for anyone thinking about purchasing a franchise or franchising their existing small business.

While there are a great number of factors to consider in making an intelligent choice, those that follow are among the most critical.

Market Demand

Is there sufficient demand for the products or services that the franchisor sells for you to succeed in your community? If so, are those products or services likely to generate repeat business? You should also quickly determine whether the business is seasonal (which can sometimes be an advantage, depending upon your income needs and lifestyle preferences) or year ‘round. Also, make certain that you’re not dealing with a fad product or service. Wherever possible, sample or mystery shop several of the franchisor’s outlets to gauge traffic patterns and customer responses.

Competition

Even a franchise offering the best products or services will have difficulty succeeding if the level of competition is too intense. Bear in mind that competition can come from competing franchises, independently owned businesses and existing outlets of the franchise that you’re interested in purchasing. So be sure to include both the franchised and company-owned locations of your prospective franchisor that are already operating in your preferred trading area as you evaluate the competition.

Determine whether the franchise you’re interested in sells products or services which can be purchased through other channels including mail order and the Internet. Also check to see whether those products or services are readily available as part of an extended line or product/service mix in big box, discount or other multi-line providers.

Finally, check both the price and quality of competitive products and services to determine whether your prospective franchisor’s offerings will be advantaged or disadvantaged in the market. If competitors’ products or services are overpriced or of poor quality, there may be an excellent opportunity for a franchise based on a “value” positioning.

Name Recognition

The right to use a company’s name or brand is one of the most powerful incentives to purchase a franchise rather than opening your own business. Does the franchise that you’re thinking about buying have broad name recognition? Are the attributes associated with that name positive? Or, asked another way, does the company have a reputation for quality products and services? Recognizable taglines or trade characters are additional positives since they serve as memory hooks for customers and prospects. The bottom line: the more widely recognized the name (Burger King, Mr. Handyman), the tagline (“Have it your way!”, “On time. Done right.”) or the trade character (The Burger King, The Mr. Handyman character), the more likely they are to attract customers and build brand loyalty.

Both sets of branding elements above are employed by category leaders. But, as you’d expect, Burger King’s nearly 8,000 domestic locations and nearly $300 million in annual ad spending has resulted in far greater recognition of their branding elements than the advertising budget supporting Mr. Handyman’s 300 franchise units. The point being, you need to evaluate the recognition of a franchise’s branding elements relative to the competitors in their business category.

For more information regarding the purchase of a franchise business, type FranchiseRight into your search engine and visit all of our websites. You’ll find details on our monthly FranchiseRight Boot Camps designed specifically for anyone thinking about purchasing a franchise or franchising their existing small business.

However, some franchisors place additional restrictions upon their franchisees which may limit or compromise your ability to use your own business sense or experience in operating your franchise unit.

That being the case, you should give some thought to how each of the possible restrictions discussed below might affect your interest in purchasing any franchise business you might be considering.

• Restrictions on the goods or services you are permitted to sell.

Restrictions of this kind prohibit you from adding any additional sources of revenue not sanctioned by the franchisor. Depending upon the nature of the franchise this could include newspapers and periodicals, candy and cigarettes, books or video tapes, apparel or dozens of other lines of merchandise or service. It could also mean not being able to eliminate unpopular items or services from your offerings.

• Restrictions on the suppliers that you are permitted use.

As a franchisee you benefit, in most cases, by using the franchisor’s mandated product providers because of the savings involved in bulk purchasing. However, there are both occasional and ongoing cases where individual franchisees would be able to purchase comparable product or supplies for less than what they’re paying to the franchisor’s vendor. This can result in great unhappiness on the part of the franchisee. Talking to existing franchise operators is a good way to get a quick reading on whether or not this is likely to become a problem.

• Restrictions on your right to renew your franchise agreement.

Since franchise agreements are limited to a stated period of time, it’s important to fully understand what rights and restrictions apply should you wish to renew your contract. Restrictions on the sale of your franchise to a third party may also apply and should be carefully reviewed and understood.

• Restrictions on the territory where you are permitted to sell.

Virtually all franchisors expressly limit each of their franchisees to a carefully defined geographic sales area. While this helps ensure that other franchisees will not be competing with you for the same customers it could prevent you from moving to a more profitable location in the future or purchasing additional locations in adjacent areas.

• Restrictions on alternate selling methods. Depending upon the franchisor, you may or may not be permitted to sell via Internet, catalog, mail order, telemarketing or other means beyond your retail transactions. It’s important to determine if you may do so, either in or out of your territory. You’ll also want to find out whether the franchisor retains the right to do so.

Determining how you feel about restrictions that a prospective franchisor will impose can dramatically alter your perception of the opportunity you’re evaluating. So give them serious thought before you decide to move ahead.

For more information regarding the considerations involved in purchasing a franchise business, type FranchiseRight into your search engine and visit all of our websites. You’ll find details on our monthly FranchiseRight Boot Camps designed specifically for anyone thinking about buying a franchise or franchising their existing small business.

One of the most popular and fast-growing areas serving the business-to-business sector is the business services franchise.

Business services franchises provide other businesses with a broad range of services that would be difficult or impossible for those businesses to provide in-house on a cost-efficient basis.

Business service franchises emerged to meet the demands of businesses that depend on outsourcing to maintain a profitable bottom line. Then, the money saved because of outsourcing, can more effectively be used to accomplish other business functions.

Business services franchises not only market and sell financial services, but just about any type of service that small businesses depend upon. The wide range of services provided by these franchises include cleaning, expense reduction, direct mail, shipping and receiving, brokerage services, consulting, advertising, printing, executive search, coaching, training and temporary employee services. While some business service franchises offer a diverse menu, most specialize in a single service.

Since business services franchises are structured to adapt quickly to changing market trends, entrepreneurs who desire a small business that is able to stay on the cutting edge increasingly seek them.

Another important benefit of becoming a business services franchisee is having the chance to continue working with clients as they grow their businesses.

Business services franchises are an ideal choice if you’ve been involved with other business services careers but now want a chance to start a business of your own.

That said; don’t overlook the importance of finding a well-known franchise company, or a franchise company with an excellent reputation, before you invest your dollars.

Unfortunately some business services franchisors are only interested in selling a training manual and authorization to use their company name with little regard for whether you succeed as a franchisee.

On the other hand, most established franchisors are reputable. They have very high standards and will not award a franchise to just any one who can afford their franchise fee. Typically, they profile every potential franchisee and weed out those who aren’t

a good match for their company. While these highly developed franchises will generally be more expensive than a lower-end franchise, they will go to great lengths to ensure your success as a franchisee.

Remember, that every business in America has very specific needs that must be met in order to stay in business and remain profitable. In many cases business services franchises can do an excellent job of satisfying those needs.

Assess the services that businesses in your area need. Then, based on your research and the help of a franchise consultant, find the business services franchise that serves you and your target market best.

Fortunately, it is relatively simple to avoid making this mistake since the franchising relationship has been clearly and succinctly defined by the Federal Trade Commission.

Under the Federal Trade Commission’s “Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures,” Code of Federal Regulations, Title 26, Chapter 1, Subchapter D, Part 36, better known as the FTC Franchise Rule, anyone who offers, sells or distributes goods, commodities or services is considered to be involved in the sale of a franchise if they:

• Permit recipients to use a trademark, trade name, advertising or other commercial symbol in their business – in other words, if any of the listed elements are being used in common by both parties;

• Provide operational support or assistance, training or the exercise of significant operating control;

• Receive payment of more than $500 during the first six months of operation. This definition includes initial fees, royalties, advertising fees, training fees or fees for equipment.

If your current licensing or distribution business has all three of these elements and you have not legally organized your business relationship as a franchise, you are an “accidental” or “inadvertent” franchise. If that’s the case, you are operating in violation of federal laws as well as similar laws applicable in more than a dozen states.

How does this happen?

A significant portion of those guilty of this offense simply had no idea that there were regulations that govern this type of contractual relationship.

Others sought to avoid any association with what they perceived to be a highly regulated business model.

Still others simply objected to referring to their business as a franchise and wrongly assumed they could avoid violating franchise laws by calling their business relationship something else.

Unfortunately, starting or continuing to operate an accidental franchise puts you at significant risk.

The FTC has powers to enforce the prohibition of accidental franchises with fines of up to $10,000 per day, along with criminal sanctions and restitution.

How to best avoid this unwitting mistake? Work closely with an experienced franchise lawyer at the outset or consult with one as soon as possible if you believe your current business is in violation.

For more information on franchising, type FranchiseRight into your search engine and visit all of our websites.

1. You must use the franchisor’s logos and advertising materials. Of course you must. To do otherwise would defeat the reason for buying a franchise business in the first place. The franchisor’s intellectual property is among the most important of your assets. The franchisor’s corporate name, logo, trademarks, trade secrets, advertising and promotion enable you to leverage their recognition, success and marketing muscle to literally build your business on their back! Would you be more likely to visit a Wendy’s than a Joe’s Burgers and Chili? More likely to stay at a Marriott than a no-name roadside motel? Intellectual property is at the very heart of franchising and a major reason for its continuing success.
2. When you sell, the franchisor must approve the buyer. Part of the franchisor’s responsibility is to retain the integrity of his brand and the franchise system by discouraging potential franchisees who might sully those assets in any way. Just as you would wish to exclude any unsuitable candidates from damaging or discrediting the franchise system if you were to become a franchisee, so too would you support the franchisor’s need to continue safeguarding his system by passing final judgment on potential purchasers of your franchise. Since the franchisor ultimately makes all final decisions regarding the acceptability of prospective franchisees it’s very likely that you, as a franchise unit owner, would benefit from their extensive experience and wind up with a more realistic valuation of your business and a smoother sales transaction.You will probably have to pay into the franchisor’s advertising and marketing fund. Assuming that you do, once again, doing so results in significant benefits for you. Very few independent small businesses can afford the kind of broad-based, quality advertising and promotional activity that you will enjoy as a franchisee. The reason for requiring contributions to a franchisor’s advertising and marketing fund is to enable ongoing regional or national advertising and marketing campaigns. While TV and magazine advertising is impossibility for independently owned small businesses, most franchisees receive this kind of media support on an ongoing basis. There’s simply no substitute for the traffic-building power of good and consistent marketing efforts. Why wouldn’t you want to contribute to a fund that would provide you with support well beyond the means of an independent small business?

In conclusion, while many of the things required of you as a franchisee of an established franchise company may, at first blush, appear to be cons, upon closer examination, they are, in fact, pros, in place to help secure and accelerate your success.

For more information on franchising, type FranchiseRight into your search engine and visit all of our websites.

In an effort to paint a realistic picture of franchising, I’d like to look at each of these supposed “cons” one by one and attempt to provide a reasoned perspective on each of them.

1. You have to pay an upfront franchise fee for the right to use the franchisors systems. While this is absolutely true is there any difference between this and any other purchase made for significant value received? Your franchise fee buys you a tested and proven system of doing business as well as a likelihood of success that is multiples of what entrepreneurs starting their own small business realize. Most franchisees of established franchises succeed. While the overwhelming majority of independent small businesses start-ups fail. In addition, for your franchise fee, you get to use all of the franchisor’s intellectual property: name, logo, trademarks, trade secrets, advertising, promotional items and more.
2. You must pay the franchisor a percentage of your gross sales on an ongoing basis. Also true. But, once again, you’re reaping the benefit of your franchise business arrangement on an ongoing basis — trading on the good name, goodwill, reputation and efficient business systems that the franchisor developed. When you purchase a franchise, you’re going into business for yourself but not by yourself. In addition, reputable franchisors provide their franchisees with ongoing training and support and savings on purchases of product, supplies and equipment based on the economies of scale they enjoy from buying in quantity.
3. You must follow the franchisors rules. Of all the alleged negatives of purchasing a franchise, this one makes the least sense. When you buy a franchise you are buying a system of doing business that has proven successful. Consequently, it would be counter-productive and self defeating not to follow the rules that have been established to ensure your success. If you want to make your own rules, go into business for yourself. If you want to pursue a carefully developed path to financial success through franchising, then following the rules is in your own best interests.
4. You are required to purchase product and supplies from the franchisor or their approved vendors. This is only a negative should you be unfortunate enough to purchase a franchise from one of the small number of unscrupulous franchisors. In the overwhelming majority of cases, purchasing product and supplies from the franchisor or their approved suppliers is less expensive for franchisees than purchasing any of these things on the open market. The reason? The economies of scale that the franchisor enjoys by negotiating lower prices through volume purchasing. While there may be isolated cases where a specific item could be purchased locally by a franchisee for less than through the franchisor or his suppliers, these situations are almost always exceptions to the rule. After all, it is in the best interests of everyone for the franchisor to help ensure that their franchisees’ cost-of-goods sold is as low as possible consistent with quality standards so that they can remain competitive in the market place and be as profitable as possible.

In Part II of “Are the “Cons” of Franchising Really Cons?” I will discuss the perceived negatives of required use intellectual property, franchise sales conditions and mandatory franchise advertising funds.

For more information on franchising, type FranchiseRight into your search engine and visit all of our websites.

Since franchising is largely uncharted waters for most potential franchisees, I’m quick to recommend the services of experienced franchise consultants. Here are my reasons why.

1. An experienced franchise consultant can guide you through the entire process of deciding whether to become a franchisee, and how to go about it.

2. The service is free for you as a franchisee. The owner of the franchise system, the franchisor, will cover the consulting fees.

3. The service is personal and confidential.

4. You’ll be provided with education regarding the various types of ownership and investment options.

5. The franchise consultant will prepare a detailed profile including an evaluation of your experience, interests, and goals in order to match you with the most suitable franchise opportunities.

6. The consultant will investigate the available opportunities best suited to you.

7. The consultant will initiate contact with representatives of franchise companies that you are interested in.

8. The consultant will help to verify each of those company’s success and track record.

9. You’ll save both time and money by having the consultant research these opportunities.

10. Franchise consultants are one-stop shops. They answer questions and refer you to other resources as necessary, such as financial and legal advisors.

11. Consultants work with all types of franchises, including full-time, part-time, new units, and re-sales.

12. You’ll virtually eliminate most of the complications and confusion that can accompany the process by having an expert perform these services.

Overall, a franchise consultant will help you determine if franchising is right for you and, if so, identify the type of franchise opportunities where you’re most likely to succeed.

Potential business owners with an interest in purchasing and running a franchise often ask me what the benefits are of using a franchise consultant.

Since franchising is largely uncharted waters for most potential franchisees, I’m quick to recommend the services of experienced franchise consultants. Here are my reasons why.

1. An experienced franchise consultant can guide you through the entire process of deciding whether to become a franchisee, and how to go about it.

2. The service is free for you as a franchisee. The owner of the franchise system, the franchisor, will cover the consulting fees.

3. The service is personal and confidential.

4. You’ll be provided with education regarding the various types of ownership and investment options.

5. The franchise consultant will prepare a detailed profile including an evaluation of your experience, interests, and goals in order to match you with the most suitable franchise opportunities.

6. The consultant will investigate the available opportunities best suited to you.

7. The consultant will initiate contact with representatives of franchise companies that you are interested in.

8. The consultant will help to verify each of those company’s success and track record.

9. You’ll save both time and money by having the consultant research these opportunities.

10. Franchise consultants are one-stop shops. They answer questions and refer you to other resources as necessary, such as financial and legal advisors.

11. Consultants work with all types of franchises, including full-time, part-time, new units, and re-sales.

12. You’ll virtually eliminate most of the complications and confusion that can accompany the process by having an expert perform these services.

Overall, a franchise consultant will help you determine if franchising is right for you and, if so, identify the type of franchise opportunities where you’re most likely to succeed.

While there are many “do-it-yourselfers,” lack of time, knowledge and the proper tools result in a significant portion of homeowners seeking reasonably priced handymen. Consequently, for more than a decade, among the most sought after franchise concepts have been in the home improvement category. These franchise systems are planned specifically to deal with improvements and needed maintenance around the home.

One of the primary appeals of a handyman franchise is that they typically require very little capital to get started. There is no cost of goods and, generally speaking, no fixed location required to run the business.

If you decide to purchase a handyman franchise, your duties will focus on the retailing of services. But there are two distinctive parts you can play as the owner. You must decide whether you will run the business and be the handyman or run the business and hire employees to do the repair work. There are even handyman franchises where you do all of the repair work while the franchisor runs the business.

Because of the duel roles required for success, many handyman franchisors are looking for a person with a business background rather than a handyman background. In those systems, your business is dispatching experienced technicians into your customers’ homes.  So, if your current life situation doesn’t allow you to be on the road doing home repairs, you can hire repairmen to do the work and still be part of the home maintenance industry.

If you plan to focus just on managing the business while your technicians perform all of the repair work, you will need to know how to direct and motivate your employees to provide the needed services. This is where highly focused franchise training and support comes in. The training and support that franchise systems provide is one of the greatest benefits of being a franchise owner and one of the most important motivations for purchasing a franchise in the first place.

The training and support you receive from your franchisor is intended to maximize the earning potential of your business. After the training period is over, and once you’ve opened the doors to your business, you must follow the system to the letter to achieve maximum success. Brand-name recognition, built through years of advertising by the franchisor, will also play an important role in the overall success of your business

It’s important to note, that if you come into this business with the skills and professional knowledge of a handyman, that you’ll have a distinct advantage and an excellent foundation for a handyman franchise. But, as previously stated, professional handyman or construction knowledge is not a requirement to own a handyman franchise.

The issue of flexibility is another factor to consider. Since there are several franchise systems that have been adapted to run successful handyman businesses from your home, these opportunities offer much greater flexibility than franchise systems like auto repair or fast food.

Purchasing a franchise business may be one of the biggest investments you will ever make. So, if you’re at the point of seriously thinking about purchasing a handyman franchise, it’s crucial to have specialized franchising attorney review your contract.

It’s his job to make certain that you are clear about all the particulars and that you’re getting the best deal possible deal under the circumstances.

Keep in mind that the franchisor has invested a significant amount of time and money to develop and perfect a system that is designed to earn all of its franchisees adequate financial returns. As a result, you won’t find much flexibility if you attempt to negotiate a contract.

Now, if you feel that a handyman franchise is right for you, start with a reality check Spend some time with existing franchisees of the companies you’re interested in. If you want the “straight scoop” talk to the man or woman who’s been there!