Franchising is a business model where a person buys the license to do business under an existing business’ trademark and methods in exchange of a royalty fee.
Franchise Opportunity Checklist:
Step 1: Do I Really Know Myself?
- What are my natural aptitudes, skills and talents?
- Am I physically and temperamentally suited for self-employment?
- Do I have the ability to work hard?
- How will my family be affected by my decision and the calls the business will make on my time?
- Do I mix well with people?
- Am I prepared to deal with difficult employees and customers?
- Do I possess sufficient financial resources to enable me to start a business and survive while it is struggling to become established?
- Am I able to raise sufficient finance?
- Am I prepared to put whatever assets I now possess at risk?
- Will the business be sufficiently challenging for me? Does it excite me?
- Am I prepared to handle the everyday details of running a business?
- Am I determined enough to succeed?
- What do I want to achieve in life?
- What am I looking for - Job satisfaction? Capital gain? To earn lots of money? An investment (absentee owner)?
- Has the franchised business been thoroughly proven in practice to be successful?
- Are the products/services new?
- Will the products/services appeal to the Philippine marketplace?
- Does this business have staying power?
- Is it in a growth area?
- Is that growth a fad or mere fashion and thus transient?
- Is it, alternatively, in an area of decline?
- How compet1t1ve is the market for the particular products/services?
- How compet1t1ve is the price of the product/service?
- Can this compet1t1veness be maintained?
- What is the source or supply of the goods?
- Will the products need to be imported?
- What are the duties and restrictions for any importation?
- Are alternative local sources of products/services of comparable quality available?
- Are the products/services based upon a trademark?
- Is there adequate back-up in terms of guarantees and service facilities?
Word of advice: Beware of franchise scams. Make sure that the franchise being offered to you has a good track record, complete with a support organization. It should have successful stores and outlets already running in established locations. As a potential franchisee, you must not be in a hurry to dive into a franchise, especially those offered by glib-tongued individuals, lest you lose your lifetime savings. You must do your own homework and research first.
source: Business Line Vol. 2 No. 4 2004 A Special Publication for Plantersbank Clients and Friends posted by maneki_neko at entrepreneur.com.ph/board, gonegosyo.net. Photo from affi.com.ph