DOT 1457614 MC 550730
Move freight better than anyone.
Brokerage Division Of
DOT 763909 MC 343884
Move freight better than anyone.
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Is Franchising for You?
Visit any town or city and you will find franchised businesses. One of the reasons that many franchises have been successful is that, in franchising, a business synergy is created. Franchisees brought together under one trademark can achieve things that as individual business people they could not do. Compared to independent start-ups, franchised enterprises offer a remarkably higher probability for success.
Collective buying power, rapid market penetration, proven operational systems, training and support, are just a few of the clear advantages of franchising versus other business methods. The belief that large amounts of capital are always required to buy a franchise is not true, and it is important to understand the capital risk versus the rate of possible return so you can see if a franchise matches your needs.
The fastest growing franchises are those offering a complete business format. In these cases, the developer for the business concept (the franchisor) grants to an individual (the franchisee) the use of an established trademark, access to system-wide educational programs, proven operating procedures, group purchasing power and the goodwill and know-how of an experienced enterprise. Each franchisee is trained in the operations of the business and receives ongoing management and operational support. This is the Renegade Freight Brokerage & Transportation’s model of franchising.
While there are many examples of successful franchises, buying a franchise is no guarantee of success. Before buying a franchise, 10 important questions need to be carefully and thoughtfully answered:
8 Key Questions to Ask....
1. Are you willing and able to take on the responsibilities of managing your own business? Some very careful self-analysis is important before buying a franchise. Indeed, your personal house should be in good order. One of the myths that have been perpetuated is that franchise ownership is easy. This is just simply not true! While the franchise system will give the start-up training and offer ongoing support, you, the franchisee, must be prepared to manage the business. While some franchises may lend themselves to absentee ownership, most are best run by hands-on management. You must be willing to work harder than you have perhaps ever worked before. Forty-hour weeks are also a myth, particularly in the start-up phase of the business. It is more like 60-to-70-hour weeks. You must also be willing to fire as well as hire employees and deal with upset customers.
2. Will you enjoy the franchise? , Sometimes people buy a franchise they think will make them a lot of money, only to find later they do not enjoy the business. The adage, “know thyself,” certainly applies here. You should buy a franchise that centers in an area that you will enjoy for the next 10-15 years.
3. Are you willing to completely follow the franchise system? The very key to franchising success is the consistency of product and service customers find from one franchise to another. When you display the sign and logo of a franchise, you are indicating to customers that you follow a particular system. People who are extremely entrepreneurial in the sense that they do not like to conform to a predetermined formula should be very careful about buying a franchise.
4. Do you have a history of success in dealing and interacting with people? Many franchised businesses are based on people relations. Your ability to interact well with your franchisor, other franchisees, your employees and your customers cannot be emphasized enough. A negative, critical franchise owner can be a detriment to the entire franchise system. You must have a track record of good relationships with employers, supervisors and fellow employees.
5. Can you afford the franchise? One of the major causes of business failure is under capitalization. While the franchisor will be able to give you a good idea of the start-up costs, sometimes these will vary due to leasehold improvements needs and other valuables. You will need enough money to not only open your franchise, but to run it until such a time as it is profitable. For some franchises, that may take a year. Remember, it is better to start out with more money than you think you will need rather than less.
6. Does the franchise you are considering have a track record of success? You should get to know the principal directors of the company. A new start-up franchise may offer you the opportunity to get in on the ground floor. But it might also mean that the franchisor has not had sufficient experience to fully develop the system.
7. Do you like the franchisor’s staff—those people with whom you will be working? One of the most important elements of a franchise is the ongoing support and contact you will have with the franchisor. For this reason, you should feel comfortable with the people you will interact with for a number of years.
8. Do you have a support system? Managing a franchise is a full time job. It requires great sacrifices of personal and family time. For this reason, your friends and family should understand that you will have tremendous demands on your time.
Franchising allows you to be in business for yourself, but not by yourself.
Impact of Franchising in America:
What Occurs in Franchise Businesses…
The number of establishments operated by franchised businesses…767,483
The number of jobs in franchised businesses…9,797,117
The payroll provided by franchised businesses…$229.1 billion
The economic output of franchised businesses…$624.6 billion
What Occurs Because of Franchise Businesses…
The number of jobs created because of franchised businesses…18,121,595
(13.7% of the private-sector employment in the United States)
The payroll provided because of franchise businesses…$506.6 billion
(11.1% of private-sector payroll in the United States)
The total economic output because of franchised businesses…$1.53 trillion
(9.5% of the private-sector economy in the United States)
Combine the power of the franchising, with the leader in small and mid-market business sales and feel secure about Renegade Freight Brokerage & Transportation’s opportunity!
WHAT ARE THE KEY SUBJECTS IN THE FRANCHISE AGREEMENT?
USE OF TRADEMARKS
One of the main benefits you receive when purchasing a franchise is the use of well-known trademarks. This section lists the trademarks, service marks or logos the franchisee is entitled to use.
Has the trademark been in operation for a significant amount of time and is it well known?
Are there any restrictions on its use by the franchisor or franchisee?
LOCATION OF THE FRANCHISE
This section describes the exclusive area or territory granted to the franchisee.
Do you have exclusive rights in a certain territory?
TERM OF THE FRANCHISE
In this section, the duration of the agreement is specified.
How long does the agreement last?
Can the franchisor purchase the franchise before the agreement expires?
Do you have the right to renew the agreement?
FRANCHISEE’S FEES AND OTHER PAYMENTS
In this section, all the mandatory fees are described:
Initial fee and what the franchisee receives for that fee:
Royalty payment, what it is based on and when it is due:
OBLIGATIONS AND DUTIES OF THE FRANCHISOR
This section describes the franchisee’s responsibilities:
Requirements for training:
Requirements for participation in the business:
Requirements for keeping and submitting adequate records:
RESTRICTION ON SERVICES OFFERED
This section describes any restrictions placed on the goods or services offered, including:
Required quality standards:
Hours of operation:
RENEWAL, TERMINATION AND TRANSFER OF FRANCHISE AGREEMENT
This section includes:
The rights and obligations of a franchisee upon termination:
Descriptions about the transfer of the franchise agreement:
Descriptions about the renewal of the franchise agreement:
WHAT ARE THE CRITERIA FOR SELECTING A FRANCHISE?
Before buying any business, you must carefully consider many factors that are critical to your success:
How much money will this franchise cost before it becomes profitable?
Can I afford to buy this franchise?
Can I make enough money to make the investment worth my time and energy?
Is there enough demand in your area for the franchisor's services?
Is the demand year-long or seasonal?
Will the demand grow in the future?
How much competition do you have, including other franchisees?
Are the competing companies/franchises well established?
Do they offer the same services at the same or lower prices?
Has the franchisor been in business long enough to have established the type of business strength you are seeking?
Is the franchisor planning to grow at a rate that is sustainable?
How well known is the franchise name?
TRAINING & SUPPORT
What kind and how much training and support does the franchisor provide?
DO I HAVE WHAT IT TAKES TO BE A FRANCHISEE?
Once you have determined that you have the abilities, skills and desire to start your own business, you have to further determine if you have the requisite traits to become a franchisee.
Can you follow someone else's rules, even when you think you have a better way?
Are you prepared to accept coaching and advice on how to run your business from a franchisor's field and headquarter's staff?
If the Franchisor turns down your great idea for changing the system, can you live with that?
Can you trust that a franchisor is working for the benefit of the entire system-even when their decisions do not necessarily go your way?
Are you willing to share your financial information and prepare required reports each month?
Are you willing, able and eager to learn new skills?
Can you set aside old habits and beliefs to follow a franchise system?
Do I have basic business skills?
While some franchises do want their franchisees to have industry experience, what's more important to them is that a franchisee has the basic business know-how and entrepreneurial drive to succeed.
GET STARTED WITH RFB
To get a no cost, no obligation analysis of your program or to discuss your logistics needs, contact Renegade Freight Brokerage today:
Quote Terms: Quotes are based upon information provided. If Info provided is not accurate, it is understood that the freight Class, NMFC# & Rate may change. Quotes are based upon the shipper using the Renegade Freight Brokerage & Transportation MC-550730 supplied Bill of Lading. If the shipper uses their own B/O/L, Renegade Freight Brokerage & Transportation MC-550730 reserves the right to be removed from the transaction with collect charges billed to the consignee. Unless payment for services is otherwise agreed upon, all rates are based on receiving payment within 15 days of the invoice.