Be Your Own Boss

Now that many Americans have fulfilled the dream of owning their own home, the new American Dream is to be one’s own boss.  There are many routes to take to fulfill this dream.  A small business owner can start from scratch.  Develop a product or service and introduce the concept to the marketplace.  It can be a shop, a product sold via mail order or a consulting business that is run from home.

Another route to take to fulfill your dream is to purchase a turnkey operation otherwise known as a business opportunity.  These packages usually come complete with the product you will be selling and manuals to help you sell it.

Franchising is yet another way to start a business.

What is franchising?  It’s a way of being in business for yourself, but not by yourself, according to the International Franchise Association, headquartered in Washington, D.C.

Franchising is a unique method of doing business that has been adopted by a wide variety of businesses.  One in every 12 small businesses in America is a franchise.  Currently, more than 550,000 U.S. franchise establishments are active, generating in excess of $800 billion annually–that’s two-fifths of all the nation’s retail sales–and providing employment opportunities for more than 8 million people.

There are two types of franchises: product distribution arrangements, such as soft drink bottlers, and business format franchises, which provide a retail system, such as McDonald’s, for example.

The International Franchise Association publishes a guide that has become a “bible” of sorts to franchise opportunities.  The Association is the world’s largest trade association representing franchisers and franchisees.

“There are no shortcuts to riches, no easy ways to success,” said Don DeBolt, former president of the International Franchising Association (IFA).  “Franchising is a strong and proven system, but it’s not foolproof.  Like any business venture, rewards are not without risks.”

“The Franchise Opportunities Guide can help prospective franchisees search for the best opportunity that meets their personal qualifications and goals,” DeBolt said.

“One should never take this important step without first thoroughly checking all the available information, getting professional advice and doing some serious self-analysis.”

Some key questions one should consider include: Are you willing and able to take on the responsibilities of managing your own business?  Will you enjoy the franchise?  Are you willing to completely follow the franchiser’s system?  Do you have a history of success in dealing and interacting with people?  Can you afford the franchise?  Have you and an attorney familiar with franchising carefully studied the legal documents?  Does the franchise you are considering have a track record of success?  Are the franchisees generally happy and successful?  Do you have family support?

The guide addresses these and a number of legal considerations such as personal liability, location and marketing areas, trademark issues, renewal rights, termination, supply sources and ownership restrictions.

“There has never been a better time for serious entrepreneurs to go into business,” DeBolt said.  “And there has never been a better free enterprise concept than franchising.  What takes the typical small business owner years to discover through trial and error, franchises offer from the beginning.”

Let’s take a look at some questions and answers about franchising, provided by the International Franchise Association.