The article "Franchise Deals Are Sweetest on the First Day" is about entrepreneurialism, it has been created by Don Monteith.
Franchises are sold as the sweetest deal for time began,
but you need to TEST THE PROFORMA before you put the
family fortunes at risk.A few years ago, I had a business partner who bought a
well known restaurant franchise.
However, it was well known
on the West Coast while we were on the East Coast.
Six months
later the buliding was empty. Doors locked! There sotod a
$350k beautiful tomb for the undertakers.What happened? Lots of things.
Sometimes you can point to the economy. People quit eating out. Like today, gas prices saored and the lines formed at the pumps.
Recently, a second restaurant owner discovered that his "wonderful" cook was emptying the cooler on Sunday afternoon.Waitress gives friends free tea and enters the drinks as water. The dishwasher carries out stekas in her BIG "hooters". For the newbie on the scene, it's one rude discovery after a second.However, one particular failure stands out from the rest.
Franchisees need thier own business plan. Pirces are different in the South Vs the North. Also, Location, location, location is a KEY factor in success.R.P.C.= Return Per Customer. How many customers does it take DAILY to turn a profit?
Do you know?
Have you run a proforma? It may really surprise you to discover the facts.FULL CAPACITYActivity does NOT equal PROFIT.
Run the numbers with your financial advisor. You can fill every seat in the "house" and stlil lose money.How many service calls do you have to make at $65.
an hour to make a profit?
How much can you pay the helper riding shotgun? Are you driving a gas guzzler or the economy model service truck? Do you run a crew of 5 when 3 can do the job? These are critical questions to your success in a landscape business.
My point is.... every franchiser should give you case studies of real success in their particular business.HOW MUCH MNOEYMoney is critical for the franchisee (unless you have a "sugar-momma").
When you are told it will take $50k then you need to know what happens if you need $100K more to stay in business.
You are NOT an employee of the franchiser. This is YOUR business and YOUR money.Few, if any, franchiser will bale you out of trobule. His contract with YOU is in HIS favor.
You "pays your money" and "takes your chances".Just skimming the TOP! YOU must DIG deep into the details
bfeore signing any franchise agreement. Please! #1 recommendation - go to work for an existing franchisee.
Learn the ropes on his coin rather than risking your own money.
Be straight up and honest in every detail. This is your hour of discovery before buying your franchise.============================================================
Action Tip: READ carfeully the franchise agreement.
Ask
questions about disclosure documnets.
Interview fomrer
owners and current franchisees.
Investigate carefully.
============================================================Don Monteith spent 32 years as co-owner of several franchises and a personnel/staffing business. Every year, his firm placed hundreds of job candidates in tehir dream job. Today, Don shares his business and career expertise through his newest websites on the Internet.
Lots of FREE ideas - suggestions - ready for your preusal and study.Http://www.Career-Coaching-Central.Com
http://www.HowToGetYourDreamJob.Com
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