Home Business Franchises
Although many home-based franchises are out there, you may not be aware that franchises are available in an incredible array of sizes, shapes, and styles. From cleaning services to babysitting to photography studios, a home-based franchising opportunity to fit most anyone's need is out there.
Home Business Franchises If you've ever eaten at a McDonald's restaurant, you know what a franchise is. No matter which McDonald's restaurant you visit, whether it's in Iowa, England, or Hong Kong, you can be fairly certain that your cheeseburger and French fries are going to look, feel, and taste the same. According to a report published by the International Franchise Association www.franchise.org franchises employ more than 9 million people and produce more than $600 billion of economic output a year, just within the United States.
Although popular franchises such as Subway, Curves, Quiznos, and Burger King are easy to think of, if we asked you to identify a popular Home Business Franchises, you would probably have a harder time. Although many home-based franchises are out there, you may not be aware that franchises are available in an incredible array of sizes, shapes, and styles. From cleaning services to babysitting to photography studios, a home-based franchising opportunity to fit most anyone's need is out there. Home Business Franchises
A franchise is an agreement in which one business grants another business the right to distribute its products or services. Typically, the company that grants the franchise has developed a successful and proven business model that is easily replicated by others. According to franchising expert Gregory Matusky, three elements define a franchise company:
As the old saying goes,"It takes two to tango." Similarly, every franchise agreement involves two key parties:
Of course, all the trademarks, successful business models, and assistance come at a price. Fees are paid by the franchisee to the franchisor in the form of one or more of the following:
Home Business Franchise
The fees paid by the franchisee to the franchisor vary considerably from opportunity to opportunity. For example, the initial fee to buy into a McDonald's franchise is around $45,000. However, actual startup costs(leases, building, equipment, labor, supplies)for a location run from $400,000 to more than $1 million. On top of that, franchises are required to pay a royalty rate of 12.5 percent or more on every dollar that they bring in. Despite all these fees, McDonald's franchises - though certainly unsuitable for a home-based business - are considered to be among the most desirable of all. Home Business Franchise
On the other hand, Jani-King, a popular home-cased business franchise that specializes in commercial cleaning services, has an up-front franchise fee of between $8,600 and $16,300, startup costs of $3,000 to $18,000, and an ongoing royalty rate of 10 percent. This is a substantially more affordable investment than the bricks-and-mortar opportunity presented by a McDonald's franchise, and you can run the business out of your own home. Of course, each has its pluses and minuses - you have to decide which is best for you.
For an extensive listing of franchising opportunities, both home based and not, check out Entrepreneur magazine's franchise 500 list on its Web site at www.entrepreneurmag.com. If you're the slightest bit interested in buying a franchise, chances are you'll find this list to be interesting reading! Home Business Franchises
Home Business Franchises - Buying a franchise brings potential positives and negatives. When deciding whether buying a franchise is the best way to start your own home-based business, weigh these pros and cons, and discover the best path for you. Here are some of the elements that franchises often have in their favor:
Of course, you want to think about the downsides to buying a franchise. Before you sign on the dotted line of that franchise agreement, be sure that you can tolerate these potential negatives: