3 Financial Considerations Every Franchise Owner Should Examine

Franchise (free clip art)

Franchise (free clip art)

Different franchises operate in different ways. Quality franchises will have systems setup that offset other costs. For example, the Cold Stone franchise cost may be offset by inventory discounts. Make sure to find out how each system is handled ahead of time so that you don’t end up sinking more money into the business than you expected to.

• Bulk Purchasing Power: Some franchises use the collective purchasing power of the entire company to score discounts on inventory, making prices much lower than what a traditional individually-operated business would pay.

• Marketing Programs: Marketing is a huge part of owning a business. When it comes to many franchises, the franchisors collect money from each franchisee, which goes into a pool that’s then used to market the brand. Unfortunately, this is one of the main gripes that franchisees have. Find out how the franchise you’re looking to buy handles marketing and determine if you’re happy with the system.

• At first, you’ll get a broad investment range that’s “required” to run the franchise. You can come up with a more conservative number by talking to other franchise owners in your area. Estimate the real amount that you’ll need to open the franchise, taking into account the earnings you can expect to make in the beginning and throughout the first couple of years. Also, find out if they made any money-wasting mistakes in the beginning and be sure to not make the same mistakes with your business.

Before getting involved with a franchise, talk to other franchise owners within the same company. Find out how they feel about their business specifically and the franchisor in general. This will give you a lot of insight into the experience you’ll have as an owner.

A gift that keeps on giving all year long

family watching tv (free clip art)

family watching tv (free clip art)

My friend Sam tells me that he is thinking about ordering cable television as a Christmas gift for his family this year. He says that he found some great TV Deals for the Holiday season where for about $1 a day he can have cable TV at home for the entire year!

He was telling me that the hard part was figuring out which one of the many different TV Packages he wants to order. He wants to make sure that he gets the one that will satisfy everyone as much as possible. He is also thinking about whether or not to order the DVD service where he can record two shows at the same time so he can watch them both later at his convenience. I had never heard of that kind of service before! Isn’t modern technology great!

Starting to decorate for Christmas

Christmas decorations (free clip art)

Christmas decorations (free clip art)

Knowing that Christmas is sneaking up on us, I promised Teri that I’d be starting to decorate the house and yard for Christmas this coming weekend. The weather is supposed to be dry and about as warm as you can expect it to be this time of year, so that’s the time to do it. I always laugh at the people that I see putting up their Christmas lights in October, but come December I start to think maybe that they had the right idea; putting them up before it got bitter cold! Oh well, decorating for Christmas this time of year helps to put me in a Christmas mood. I don’t think I can deal with it much earlier than this!

Hunting season finale

Hunting (free clip art)

Hunting (free clip art)

Although I understand that many people like to hunt, I am glad that hunting season is close to over. I don’t like having to wear blaze orange clothing if I want to go for a walk in my own back yard out of fear that I might get shot by someone who is half-drunk and hunting on my property without my permission. I also understand that hunting helps to control the deer population and keep many of the deer from starving to death over the winter, but I have to admit that I find it disturbing how many people enjoy killing other creatures! And I really don’t see how it can be considered a sport – the prey are at a serious disadvantage and really don’t have much of a “sporting chance!”

Wind farm

wind farm (free clip art)

wind farm (free clip art)

I was reading in a local newspaper that there are plans being made to develop a wind farm in the state near the Canadian border. The actual article was about tax incentives, and how a lot of people are against the tax incentives, but I just wanted to say that I was glad to see that someone was trying to put in a wind farm at all!

I hope that the plans go through, and the tax incentive is granted. We need to find alternatives to fossil fuel! I’d even like to put in a windmill in my back yard It sure would help to lower my electric bill!