Franchisee resource center

Politicians, academics, and corporate leaders alike love to proclaim that the "dreams of the youth" will drive our country's economic future. It's a fine sentiment, to be sure, but many of these same leaders, blind to the realities of the modern American (and global) economy, seem to incorrectly believe that these youthful dreams include following the increasingly unreliable path of earlier generations. Get a clue!

Before going into the negotiating aspect, one must always ask the franchisor whether they are willing to negotiate. Usually franchisors state that they have a rigid Franchise Agreement and that it is not open to negotiating. However, there may be some instances where the franchisor may allow some flexibility. Stated below are a few tried and tested tips for negotiating franchise agreements and which areas to concentrate one’s efforts on.

When evaluating a potential franchise opportunity, prospective franchisees need to take care to put the hype and their emotions in check, and carefully consider all factors relevant to their buying decision. After all, the franchise will be a 5- to 10-year relationship (at minimum, under most franchise agreements), so it is well worth the investment to put in some research and analysis before taking the leap.

America has always been the land of free enterprise, and the prospect of self- employment may sound like a dream come true. Imagine the schedule flexibility, the freedom to explore and expand while pursuing an interesting career. The alleyways of entrepreneurship are so vast that it can be rather daunting to entertain. What is the right business for today? What product is in demand? Which business model is most profitable? What concept is most likely to succeed? Potential owners also must consider that franchising may be a better option than small business start ups. Yes, when entrepreneurship meets franchising, the parameters change. There may still be freedom, but new franchisees find themselves absorbed into a preset business model with a tried and true support system.

Before we get to the individual business profiles, however, a quick background on what senior care and home care businesses do and why they serve such an acute need: An increasing number of elderly Americans want the opportunity to remain at home as they age. Unfortunately, to do so, many of these individuals require personal assistance beyond what their families can provide. The best senior care franchises and homecare franchises manage to meet this need cost- effectively -- to the great relief of worried family members -- by providing compassionate non-medical care, such as transportation assistance, light housekeeping, meal preparation, companionship, assistance with taking medication, and, in certain cases, medical services.

Only a limited number of states require registration by franchisors, and franchisors are by no means required to register in states where they have no intention of selling franchises. However, if a mature franchisor appears to be consciously avoiding the registration states, this may suggest some level of internal concern about the FDD, the franchisor’s sales tactics, or the franchise system as a whole. The cover pages of the FDD will identify where the franchisor is required to register (and whether it has registered or not), and the charts in Item 20 of the FDD will explain whether the franchisor has ever sold a franchise in any of the registration states.

Early in my career, I encountered a franchise buyer who had made a rash decision that turned sour quickly. The funny thing was that he was intelligent, experienced and had a great deal of corporate knowledge – all the attributes that franchisors desire for their many franchise opportunities. I was intrigued that this experienced and generally deliberate person would make such a bad decision. So what went wrong?

FranchiseHelp.com interviews Right At Home franchisee Diane Fortner. While working as a commercial insurance broker with a six-figure salary, Fortner felt the entrepreneurial itch, and soon discovered her calling after underwriting a policy for a successful Right at Home franchisee.

Many franchises incentivize minorities to join their systems. As president of the World Franchising Network Rob Bond puts it, these franchises "grease the skids" on behalf of minority candidates because they see value in promoting diversity among their franchisees. On account of a still-languid economy, however, many franchisors' approach has changed significantly in recent years. As Bond explains, “African Americans and Hispanics were being aggressively recruited five years ago to fill vacancies.” But today most franchisors are more concerned with trying to grease the skids for foreign investors with significant piles of investment capital.