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Posts Tagged ‘Tips for Choosing a Franchise’

For those of you who want a business but do not have the capital that is too large franchise could be the answer. Surely there is not just any franchise that you can choose. According to the Chairman of the Indonesian Franchise Association (AFI) Anang Sukandar, there are certain tips in selecting a good franchise.

A good franchise business is a business that is required daily food, beverages, education, salons, garages, retail field. In addition, Anang said that there are some areas that have the potential to improve their products, to franchises such as in Central Java and Yogyakarta match with food and batik, and to Bali with wooden handicraft products and clothing.

Anang also reminded investors should be cautious in determining and retrieve business opportunities through franchising. Given the current confusion often occurs between the franchises (franchise) with business opportunity (BO).

Franchise concept that is legally and in PP. 42 in 2007 described that the franchise should prove really profitable, but it was easy to implement business application process and taught to franchisees makers and others. It was definitely Franchise business opportunity (BO), but BO is not necessarily the franchise.

He also noted there are two things that are important in determining the franchise of which zone regularity problem dispersal area franchise units in each region. Does the provider of franchise restrict the actors who play in a certain area or not. So there is no competition among fellow franchisees.

Well, here are some tips on choosing a franchise.

1. Do not be insecure when dealing with staff of the franchise business. Even if they have the right to select you, they really need you. Therefore take advantage of interview sessions with them to dig out the condition of the franchise. They may dig up information about the personality and financial situation of investors. You should be able to explore in-depth information about the companies running the franchise.
2. Try to identify the background of the company or the entrepreneur, reliability, experience, market potential, competitive landscape, and the excellence and uniqueness of their product or system. From the counter-attack that interview you can feel their attitude. The manner and attitude when answering questions you can make benchmark their business culture. The more they open, the better. The more they are mysterious and closed, yes worse. Remember, you will have to exchange information with them. Imagine and estimate whether you can communicate comfortably with them later?
3. Do not hesitate to investigate the financial condition of the franchisees. Their performance in the past could be a reflection of your business prospects in the future. A good franchisor will not hesitate to share this important information. Franchising is a decent select company that has produced a profit for years, at least more than 3 years. Ask also the performance of a branch or franchisee-owned outlets long. Nothing wrong if you try to dig up information directly from the old first franchisee operates.
4. Select a brand franchise that has been known to the public. Some brand franchises overseas unknown here. But, if their names are well known internationally, it is worth considering. So do not hesitate to investigate their reputation via the Internet or acquaintances abroad.
5. Franchises are not deposits or fixed interest government bonds. Therefore, do not bet your entire fortune on the business you want to enter. As great as anything that you want to follow the franchise, business risk remains. You see, there are many economic factors that are not within the control of the company or any other economic actors, as good as any system and their advantages.
6. Learn and look at the draft contract as well as possible. Do not rush nodding and shaking hands sign a deal. Remember, all your rights and obligations listed in the contract documents. So, do not let the contract will only hurt you.