Franchising Business

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)?
  

Step 2: Do I Understand the Business?

• 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?
  

So if you are willing and able to start a business, but you can’t come up with a good idea, then franchising is an option. You can contact reputable franchising groups like the Association of Filipino Franchisers and the Philippine Franchise Association , or visit gonegosyo's Franchising Section.

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