Monday, April 18, 2011
How about starting a franchise op?
In the April For Hire, a few words about franchising. Not necessarily chucking out hundreds of thousands for a McDonalds, but spreading an idea you have.
Adrienne Kallweit. a private eye, founded Seeking Sitters (www.seekingsitters.com) a babysitting service that thoroughly vets its sitters. She now has 54 franchisees. Shannon Wilburn, also from Tulsa, cofounded a maternity, kids, and teens consignment business (www.jbfsale.com) and has 100 franchisees.
A franchise allows the owner to market a service within a certain territory.
The advantage is you follow certain rules and practices that work.
If you have a business and want others to succeed, too—and if you are willing to give up some of your own business--you could become a franchisor. Be aware, developing agreements, forms, manuals and other materials is costly.
There are 2,000 forms franchising can take—roughly based on a fee plus royalties. The fee can be $15,000 to $40,000 or more. The royalties are 5-10% of gross revenues.
Go to www. franchise.org for more info.
There are also brokers who can help you find the right business. Go to www.entrepreneursource.com.
My theory is let someone else make the mistakes. I never follow it, but it’s my theory.