You’ve probably seen many success stories in franchising – a quarter of all new ventures are franchises and one in nine out of those are still in business five years down the line. The concept works, without a doubt, and so you would like a piece of the pie. Besides having a concrete franchise business plan, seeking the advice of franchise lawyers and franchise business consultants can help you make informed decisions. Here is a look at a few things that a newbie should be aware of when investing in a franchise.

The franchise concept – It starts, as with all business ventures, with an idea. The product or service should be of good quality and worth investing in. There should be at least one existing working outlet. Often the idea may stay regional and not go national, but that’s fine as it can still be profitable. You should be aware of any limitations, though, as you go in.

Franchises develop faster than independent businesses – Not all standalone businesses can start multiple outlets in different locations, due to restrictions with respect to money and time. The franchisor essentially develops his idea and lets franchisees copy it. This allows franchises to spread quickly. Prior to this, the franchisor must document procedures and policies that make his business unique and workable.

Building a team of strong franchisees – People with good business acumen and requisite capital usually buy franchises. However, not everyone is cut out to be a franchisee. Those who are independent minded can find themselves at loggerheads with the franchisor. A franchisor aims to provide consistent customer experience across all locations – to retain these standards certain rules are enforced. So franchisors seek franchisees who are willing to adjust and learn. A franchise will not thrive without good franchisees. If you somehow get the feeling that the franchisor is only after your money, avoid doing business with him.

Transfer of knowledge to franchisees – A franchisor must transfer the knowledge of the service or product to franchisees. These can include, among other things:

• How the service or product is actually delivered.
• What the franchise decor should be like.
• The staff required.
• The amount of working capital needed.
• Where to purchase the necessary materials needed for the franchise
• Hiring policies and procedures.

All this and more should be outlined by the franchisor. A franchisor who fails to offer franchisees the support required to get the new businesses up and running will be ultimately unsuccessful in his venture.

Franchising can be risky for the uninformed – Blue-chip franchises are well-known but few compared to small, less recognized or even obscure brands. Unfortunately numerous eager newbies jump into purchasing a franchise without taking a second opinion from franchise lawyers or consultants who can offer advice on the venture’s viability and legal aspects of the contract.

Exercise due diligence – Risks can be reduced with careful research, planning, and good advice. Hiring a reputable and experienced franchise lawyer early in the process is the prudent thing to do.

Avoid license agreements and distributor agreements – There are unscrupulous companies that sell licenses that are essentially illegal franchises. In the place of the Franchise Disclosure Document (FDD) that satisfies stringent legal requirements, they offer a license or distributor agreement which lacks backgrounds of the principals, investment details, audited financial statements, disclosures, and so on. Steer clear of these fly-by-night operators.

Keep an exit plan handy – Finally, you should not just have a business plan aimed at success, but also an exit strategy that will reduce your financial risk if arrangements don’t pan out. Seeking the advice of franchise lawyers is highly recommended to make the right business decisions.

Well, well, well. Strange days are upon us when vending machines disperse healthy snacks instead of the fat-and-calorie laden fare we’ve all come to know and love! Interested in capitalizing on a healthy trend? Vending is a $30 million per year industry! And, guess what? The healthy vending machine segment is so new that (as of this writing) sales have yet to be tracked! The early indicators, however, are darned impressive. A San Diego company, Fresh Healthy Vending, generated $3.8 million just 4 months after its start by selling franchises! Which franchise is the best fit for you? This bandwagon is growing bigger by the minute and your choices are varied. I’ll list several:

• There’s the aforementioned Fresh Healthy Vending,

• Healthy U Vending, (a young McHenry, IL start-up),

• Healthy You Vending (a very innovative company out of Kaysville, UT),

• Vend Natural (Ventura, CA and Annapolis, MD), and

• H.U.M.A.N. Healthy Vending (one of the industry’s first).

By no means are these the only franchise companies worth investigating, but they’re good places to start.

Why are healthy vending machines so popular? It seems a natural progression. I remember the days when, if you wanted anything organic, you had to drive to a Health Food Store. That is, if you could fine one! Then, bowing to a few consumers, our local grocery store acquiesced a lonely portion of shelf space near the Diet Section. Health Foods gradually spread to encompass the whole aisle. Now, stores like Sprouts, Trader Joe’s and Fresh & Easy focus on health and give the standard supermarkets a competitive run for their money. Obviously, there’s a market for it. “Healthy” is definitely “IN!”

Is it any wonder that Vending Machines are following the trend?

Buoyed by a congress in a hurry to pass as much lame-duck legislation as possible, a law was enacted in December 2010 that requires officials (whoever that may be) to set nutritional standards for all foods sold in schools. ALL foods. Including vending machines. The Healthy, Hunger-Free Kids Act of 2010 could be your ticket to a winning franchise opportunity.

This is the beginning of a major change in the vending business. Not just because of the government push, but because Americans, generally, are sick and tired of being sick and tired! (Light bulb moment: “Gee, do you think our diets may have something to do with how we feel?”) At our local public pool this summer, the manager stocked his machines with the usual sodas and high-fat snacks as well as healthier alternatives like water, yogurt, fresh fruit and granola bars. He was surprised to find he needed to restock the “good stuff” more often than its “evil counterpart.” According to several school principals whose schools are using the healthy vending option, they create more revenue than the old junk-food machines. Amazing. Maybe we ARE “getting it.”

Once your decision is made and you’ve determined which company is the best fit for you, it’s up to you how you’ll want to market your new venture. How do you want your customers to perceive you? How will you “brand” yourself to them? What types of advertising will you consider? No one can answer these questions any better than YOU! Yep, you’ve got more decisions to make and, again, a lot of alternatives from which to choose. I hope you will check out our company and allow us to be one of the options you consider. Let us show you how you can learn to market yourself! After all, no one cares more about your success than you!

The Famous “Pizza Pizza”

Back in 1959, Marian and Mike Ilitch opened their very first pizza bistro in Garden City, Michigan. The restaurant served traditional Italian dishes such as spaghetti and fried chicken but pizza proved to be its best seller. The owners then realized that the future of their business lay in that direction. Two years later, they established another location, and the first Little Caesars franchise officially began in 1962. After 10 years, the Little Caesars franchise reached its 50-unit mark that includes one location in Ontario, Detroit. Came 1980, the Little Caesars franchise reported $63.6 million in sales from 226 locations. The company’s “Pizza Pizza” advertising campaign, which offers two pizzas in a single takeout order, became a fad in the Midwest. Little Caesars franchise for sale popped up anywhere in the country throughout the 80s. By 1989, its corporate sales remarkably increased to five times the figures at the start of the decade. Below are interesting facts about the Little Caesars franchise.

Little Caesars Franchise: A Quick Review

There are thousands of Little Caesars franchise branches across the US and in different foreign countries around the globe. You can actually spot a Little Caesars franchise in Honduras, Korea, Dominican Republic, Slovakia, and the Philippines. Little Caesars still has ongoing plans to expand and develop not only in Canada and US, but also overseas. Exposure is an essential advantage in owning a franchise. Fortunately for Little Caesars, the company has locations in various regions nationwide. Among its major move is its collaboration with another Detroit-based retail company called K-Mart. Today, there are about 1,500 Little Caesars franchises situated in K-Mart outlets all across the country.

Little Caesars Franchise for Sale Costs

To buy a Little Caesars franchise, you need to be prepared to pay around $15,000 to $20,000 for the franchise fee. This amount is due once your application and location proposal have been accepted by the corporate office. Prospective Little Caesars franchisees who are interested in a single franchise location should have a net worth of at least $150,000; $50,000 of which should be in cash. A Little Caesars franchisee applicant must be financially ready with the initial investment amount of $200,000 to $600,000, covering the standard carryout site – a 2,000 square feet floor space that is usually situated in strip malls. Expect a bigger initial investment if you are planning to buy and run a modern store situated in a standalone building. Here is an example and approximate breakdown of a Little Caesars franchise costs:

• $50,000 to $250,000 – for improvements and construction of an existing location
• $15,000 to $27,000 – as startup inventory
• $80,000 to $170,000 – for equipment, signage, and fixtures
• $10,000 – for training and grand opening expenses
• $1,500 to $5,000 – for rent • $500 to $1,500 – for insurance
• $1,000 to $5,000 – for utilities
• $20,000 to $50,000 – operating expenses for three months

How Little Caesars Helps the Community

A lot of entrepreneurs these days do not just look for lucrative or attractive business ventures. They also look for franchises that do something good to the communities where they live. Owners of the Little Caesars Corporation encourage all Little Caesars franchisees to become involved in any one of the charitable programs sponsored by the parent company. Its most popular charitable event is the Little Caesars Love Kitchen, which is a travelling pizza kitchen inside a tractor-trailer that goes around the US and Canada. The program aims to reach out and feed the homeless, as well as provide nourishing meals to disaster survivors. Little Caesars also offers specialized franchising program for all military veterans.

That’s probably the question you just searched for, right? A better question might be: what would be the best investment of my time, with as little capital to start a business, that could offer long-term residual income?

The problem with buying a franchise is that it could take months or even a year to get started. Usually you have to go through a franchise broker and painfully sit through numerous consultations – all in an effort to get approved.

Another downside of buying the cheapest franchise is cheap ones are usually labor intensive. Basically, you’re just buying yourself a job. Let’s take the granddaddy of all cheap franchises: the vending machine. Be prepared to do a lot of driving through rough neighborhoods, ordering product, refilling and cleaning, maintenance and repair.

Not to much freedom and prosperity with that line of work.

Where franchises excel is in their systematic approach to opening up a business. They have a turn-key operations manual on how to duplicate a known success. Everything from advertising to customer acquisition is carefully analyzed and ready to implement in your neighborhood.

Drew owned a construction company with 50 employees. When the economy tanked, so did his business. But what he wanted was something he could plug into and start making money his first month in business. Now an independent representative with six figure income from “All I had to do was follow the system and I saw results. If I can do it, anyone can do it.”

There is a new generation of entrepreneurs engaged in lifestyle design. The guru for this movement is Timothy Ferriss, author of the New York Times best seller, “The 4 Hour Workweek.”

This book chronicles Timothy’s journey of leaving the 9-5 rat race and allows him to live anywhere in the world and join the new rich. The key he says is to have a blueprint.

Restaurant franchise opportunities have been in existence since franchises were first started. However, just because over 306 million people in the US need to eat, does that make owning a restaurant franchise a good investment? Let’s talk about that.

It’s pretty easy to see why restaurant franchise opportunities can be very attractive to a potential business owner. People have to eat every single day and most restaurant franchises have pretty good brand names. Therefore, people will be more likely to visit a place they know vs a lesser known business. For instance, look at a McDonald’s franchise. It is by far the most successful franchise in the world but it’s not because of their great tasting food, even though you could argue their fries are pretty good.

So the next logical decision is whether to open a restaurant by yourself or use a proven franchise system. The answer is right there. For the less experienced entrepreneurs, buying into restaurant franchise opportunities can be the easier choice because they already have proven systems in place. Having to be creative and think differently than your competition isn’t required because you pretty much have to stay within the box. On the flip side, you will have absolutely zero input in new products, new recipes etc. You will not have any creativity in that regards.

Now before you get all ‘gung ho’ about restaurant franchise opportunities, there’s some downsides you have to really consider. First and foremost, buying a restaurant franchise can be very expensive BEFORE you even have to get a location and the expensive equipment. Furthermore, you might have to have good credit, a considerable net worth and you’ll have to get permission from the company to even own one. On top of that, you might not even have any input in regards to the physical location of the franchise.

The other thing to really understand about restaurant franchise opportunities is that you’re dealing in volume because generally you are only getting pennies on the dollar in terms of real profit. Remember, you have to usually pay royalties on the gross revenue, not net profits. You have fixed costs, variable costs, holding costs, employees, loss of food when it goes bad, etc. So really understand that you have to sell sometimes thousands of units per month just to break even on the expenses.

One final consideration with restaurant franchise opportunities is location, location, location. Now usually the franchisor will help with this aspect and the resources they have usually will result in good business decisions, but just remember that even if you’re open 24/7, you can only serve so many people and make so much money. There’s a scalability issue with restaurant franchise opportunities so to really make a good income will most likely require you to own several franchises.

Online franchise opportunities are really gaining a lot of popularity lately as people realize that the Internet is not only just a fad, but most likely the biggest invention of our lifetime that will reshape the landscape of the world as we know it. Okay, that might be going a bit overboard, but I think you get the idea of how powerful online businesses are today.

If you look at the biggest businesses in the last 10 years, they all have one thing in common… they are Internet based. Companies like Google, Facebook, Twitter and YouTube are exploding at exponential rates that really haven’t been seen before. Thus, the natural evolution of businesses has resulted in a growing number of online franchise opportunities. Let’s take a look at a few reasons why online franchise opportunities are exploding vs traditional franchises.

1. Scalability – When you look at the growth of companies like Google and Facebook, it’s 100% exponential. The growth crossed over the tipping point and then couldn’t be stopped. That’s attractive in the online franchise world because anything online does NOT have limitations to growth. There’s no zip code on the Internet. A potential franchise owner can have 1 franchise and make as little or as much money as he/she wants to make. Traditional franchises with offices or buildings have to have people physically come to them to complete a sale.

2. No Territory Restrictions – As I mentioned above, online franchise opportunities usually are not restricted by geographical locations. I mean seriously, what’s the zip code on your email address? So when you’re evaluating only being able to conduct business in a certain city or a certain county or whatever vs the entire world online, the scales can seem to tip pretty heavy in one direction.

3. No Office Or Building – How appealing are online franchise opportunities when you probably already have all the equipment you need to run your franchise right now? You don’t have to get a brick and mortar location. You don’t have to lease expensive equipment. You don’t have to stockpile inventory and incur other fixed and variable costs like most other traditional franchises do. This point is really huge and must not be taken lightly.

Also think about this. Can you be in Bora Bora on your laptop and run your business with this model? Doesn’t that sound like fun right there?

4. Ability To Change & Adapt Quickly – Online franchise opportunities have an advantage that they are online and can literally make changes almost instantaneously. If there’s new marketing materials that are needed or updates to graphics and designs, once they are done they are up online in seconds. They don’t have to be ordered, printed, shipped, installed, etc. They are up and done. Online businesses have that flexibility to be light on their feet and move quickly. For as quickly as things change today, having that kind of flexibility is priceless.

5. Hottest Trend – I don’t know about you but everywhere I turn I see the same things from everyone. “Like” us on Facebook and “follow us” on Twitter. Check out our YouTube page, etc. Just saying the word ‘social media’ today immediately creates a spark in people. It’s crazy. Having online franchise opportunities fits you right into this mold. Everything is going online and frankly doing digital marketing for your business is no longer a wish… it’s now a priority or you’ll see businesses going out of business.

Bottom line is that online franchise opportunities are hot, sexy, fun and exciting but they also have a lot of distinct advantages over traditional franchises thus possibly making them a good choice for investing in.

As the number of online businesses have increased in the past few years, so have the number of online franchise opportunities. These online opportunities offer more flexibility than traditional franchise programs. The concept of online franchises is similar to traditional programs in that you operate a business based on an established brand. However, there are some subtle differences that set the two types of programs apart.

What is an online franchise?

An online franchise is the right to market and sell goods or services for an established company on the internet. Online franchise opportunities are available for a variety of industries. Chances are that there is one that matches your interests. Some examples include travel, multimedia design, tutoring, marketing, adult, and more.

What are some advantages of online franchises versus traditional franchises?

One of the biggest advantages, or benefits, of internet-based franchises is the ability to work from home. This allows franchisees the flexibility to balance work and home life as well as tremendously reduce the operating cost of their business. Traditional franchise programs require some kind of investment in land and retail space in order to operate the business. Purchasing land and/or leasing retail space can be an expensive investment before you are even open for business. In other words, online franchise opportunities usually require less overhead costs, which is another advantage.

Operating an online franchise typically requires computers, servers, and high-speed internet access. For some online programs, parent companies may rent server space to you so that you do not have to worry about purchasing, setting-up, and maintaining your own server environment. Certain software may need to be purchased in order to participate in the franchise program and that can get expensive. For higher yielding franchises, it may be beneficial to hire extra help or people with specialized training to support your business. These are just some items to think about if you are considering an online program.

In Summary

Online franchise opportunities are not difficult to find as there are various programs that target several industries. There are a couple of substantial advantages that online programs have over traditional programs. One of them involves being able to work from home. This may allow franchisees to balance their work and home lives a little easier. The second substantial advantage is the relatively low overhead cost to get started. Traditional programs typically require franchisees to purchase land for a building or lease a retail space. Online programs typically require a home office environment that may include computers, servers, and high-speed internet.

Stratus offers a variety of services to make sure that whatever needs you may have are met. If you are in the market for Commercial Cleaning, then Stratus is your best option. They have the best staff and customer service. All staff members are trained in extensive training programs and attention to detail. Stratus is the leading cleaner in high traffic locations which can often include schools, business buildings, apartments and many other facilities. Stratus is always looking for the best in innovation to continue their high quality services.

If you own or run a business then Stratus has an important reminder. Your restroom is a highly important area in your building. If a person goes into a restroom and doesn’t like what they see or it’s dirty, they are more likely to walk out of the building with an overall negative feeling. Stratus uses a Sani-Proof system that kills most dangerous bacteria including those found in schools, locker rooms, medical building and gyms. Stratus will provide your restroom with a sanitation service in which every toilet, sink, and the floor will be treated with this proven Sani-Proof system. If you are concerned about how long you will have to wait before you can then use the restroom, you don’t. They will dry the restroom so you can use it right away.

If you are in need of a clean floor, Stratus has the best options for you. Stratus continues to be environmentally friendly by using 90% less water than most cleaning methods. The same Sani-Proof that is used on the restrooms is also used on the floor, killing all dangerous bacteria and leaving your floor spotless. In this particular cleaning service the business owners will themselves come and clean your floor, they are specially trained and insured. Making it one less thing that you have to worry about when hiring them.

Stratus even offers services for the outside of your building. Yes you heard me correctly Stratus has some very impressive landscaping services. Since you know that Stratus is environmentally friendly then you will have no worries in knowing that they will use no harsh pesticides or chemicals. Not only can they offer you services like trimming, planting and fertilizing they also are able to clean things such as brick, decks, pools and asphalt. Stratus not only offers landscaping services they can also keep your building looking clean and fresh. Let Stratus take over your pressure washing services. Whether you have a specialized need or simply a general cleaning need, Stratus can help you gain the look you want. For any of your outdoor needs, Stratus can give you quality services and affordable prices.

Stratus also offers lighting services. Make sure that your employees and customers are safe with their state of the art lighting fixtures. Not only can having a good lighting service help with safety issues, it can also help with operating costs, and help to make the appearance of your building look better. If you choose Stratus as your lighting service provider, you will get regular inspections to make sure your lights are working properly. These will be performed by skilled and trained staff members. If you ever have an emergency with your system, Stratus offers emergency assessments. Once installed Stratus will help to make sure that your system undergoes regular maintenance to optimize performance.

Stratus Building Solutions is set apart for many reasons. Stratus trains all their employees and their employees skills can’t be matched by any other service provider. Stratus also makes sure that all your needs are met and that you are happy with you services. If you have any questions or problems Stratus has the best management support team around. Stratus also takes great pride in helping to protect the environment, but using Stratus you will be using their Greenclean program. Their greenclean programs makes sure that you get the protection and cleanliness that you deserve, while making sure their the impact on the environment is less. Stratus Building Solutions is unmatched in their quality of service and in the services that they offer.

On the franchise side of business should you be looking to purchase a franchise, most people are not aware that 80% of ALL franchise endeavors fail in the first two to five years leaving large debts looming for years thereafter.

One way and in my opinion the best way to cut overhead, startup and investment cost is to take advantage of the new age of entrepreneurship and start a business from the comfort of your home. Opportunities have emerged in the online market that are creating millionaires every single day.

Are you planning to start a business? You’ve probably heard about franchising being a good direction to go. Franchising lets you start your business without having to go through the usual demands of putting something up from scratch. But it’s still not all that easy, though. You also have to brush up on things that are important as you begin a venture as a franchisee. For example, one of the most important things you must know is the value of the relationship between a franchisor and a franchisee. This is basically how a franchising business is likely to fail or not. When you have a good relationship with your franchisor, things usually just fall into place. But to know what makes this relationship a good one, you have to know the basic roles of each.

A franchisor is someone who has developed a certain business system and a set of strategies to run it. This person is selling franchisees the right use this system but not the business itself. The franchisor also retains the upper hand in terms of how to market the brand or business name and how to geographically distribute franchising outlets so there is enough share of the market per area. For example, you are not likely to find a certain outlet within a certain distance limit. This is something the franchisor determines and franchisees are to follow this rule.

A franchisee is someone who buys that business system developed by the franchisor. The franchisee is expected to adhere to rules set by the franchisor, although he will have complete control over his cash flow. For example, franchisees are not allowed to launch a marketing campaign that is not approved by the franchisor. If the franchisee goes on without such approval, the franchisor may opt to terminate their contract or agreement.

The agreement between franchisor and franchisee is basically one of cooperation, so that if one party does not do his part, the entire relationship can break down and mean a loss for both. If you are a franchisee, it is important that keep this relationship healthy because you know that whatever comes out of it will affect the way you manage your business and, of course, how profitable it becomes. You may still own the business technically, because the capital comes from you, but this type of venture is a combination of your capital and your franchisor’s proven business formula. If you want this venture to be successful, you have to realize that keeping this combination working is essential.

Owning a Direct Buy Franchise is a solid investment only if this particular business model is exactly what you’re looking for and it fits in with your passion. This type of franchise is not for everyone but I’m going to give you the details you need to make an informed decision about owning a direct buy franchise.

If you’re not sure what this franchise is about, well DirectBuy is a private club that enables its members to buy merchandise for their homes without having to pay hidden retail markup. DirectBuy Club owners primarily derive their revenue from membership sales and membership renewal fees.

Successful Direct Buy franchise owners have the ability to build large sales organizations, lead effectively, have a net worth upwards of $500,000 and liquid assets equaling $200,000. Except in the United Republic of California, the typical investment ranges from $640,000 to $1 million which covers the franchise fee, office furniture, fixtures and graphics, property improvements, lease, utility and security deposits, computer hardware and software, state bond and initial working capital. In California, due to variances in legislation and costs of living, your overall investment ranges from $850,000 to $1.35 million. You gotta love California.

Territory restrictions for a Direct Buy franchise are usually based on the number of households in a surrounding area. The ranges seem to be from 200,000 households up to 700,000 households. If you’re looking at buying this franchise, negotiate well to get as big of a territory for as long as humanly possible.

One thing to really consider when evaluating a Direct Buy franchise is the royalties. Royalty payments to the franchiser amount to 22% of funded membership sales and 50% of membership renewal payments. So you will pay less to the franchiser for new members to the club and see 50% on the renewals. Bottom line is you have to run the numbers to see if this model makes sense for you.

In conclusion, a Direct Buy franchise may or may not be for you but for those that it is for, it’s a solid business model with a proven system that has made many people successful, however it definitely is not for everyone.