What is an franchise operation and how does a business become one and what are the benifits of one?

Question

What is an franchise operation and how does a business become one and what are the benifits of one?

Answer 1

coorperation

Answer 2

I bought a franchise homecare business quite a few years ago. The reason is that they gave to us the training, materials and all the info to get us up and running.They also had a marketing plan for us to follow.   It helped alot getting the business off the ground. However each and every month you had to cut the franchisor their royalty check.

After doing this for a few years it became really old.  After the first year or so, you really aren't in need of much support or time from the franchisor -  yet you must continue for as long as you have the business to pay them each and every month an established % of what you are bringing in.

That gets real old really fast.

Do your homework first before buying into a franchise. They aren't a bad thing and I wouldn't have had the business without them, however it just really costs alot of money on-going.  Make sure you are receiving something back for the royalties you'll be paying for possibly 10 yrs.

Answer 3

To be honest I haven't seen any franchise opportunities that don't cost too much money.  To me it seems like you are just indebted to the corporation selling the franchise.  

However here is a site that is sponsored by Microsoft.

http://www.franchisegator.com/

Start by looking there and having them send you information and then you can contact the franchise that you are interested in and find out more about it.  Be careful before buying into a franchise.  They make promises they don't keep and you are stuck with the investment that you put out.