Small Business Franchise Opportunity

Small business franchise opportunities are available in a variety of areas and industries for the potential owner that desires to work within an operation with a track record of success. This type of company is an already a functioning system with proven tactics and strategies. A small business franchise opportunity owner can step into an already established concept and have a much lower risk of failure. In America, 70%-80% of small businesses fail in their first year. That failure rate is limited to 20% when the company is part of a chain or franchise. An already functioning model helps the novice entrepreneur generate profits and donate to the success of the established company.

The success rate with this type of opportunity is generally higher than that of any other type of organization. It is recommended that a potential small business franchise opportunity owner speak with at least five companies before investing in one. Before investing, how much money is available should be considered. Some small business franchise opportunities require a small initial investment, but their royalty fees are higher than other similar companies with higher initial investments. It is important to complete calculations to determine the best strategy to choose.

All ventures into the world as a franchisee require some sort of initial investment and additional monthly or yearly royalty fees that are determined by a set percentage of income revenue. Deciding whether to go it alone or have investment partners dictates how much of the royalty fee and initial investment a single investor will be responsible for. One of the primary reasons businesses fail is under-capitalization. While a small business franchise opportunity will give a good idea of the initial costs, understanding that they can sometimes vary due to leasehold agreements, unanticipated needs, living expenses, etc. is common.

When researching these opportunities, the individual should be sure to view the UFOC or Uniform Franchise Offering Circular. This UFOC is a mandated document by the FTC or Federal Trade Commission which regulates businesses in America. The UFOC contains information on the principals, background and financials of chosen small business franchise opportunities. It also contains a current agreement. These documents are available upon request, and are usually a deciding factor when choosing between the different companies on the market. The entrepreneur must be sure to locate all pertinent information before investing because this could be the difference between failure and success. "For there is a man whose labour is in wisdom, and in knowledge, and in equity; yet to a man that hath not laboured therein shall he leave it for his portion." (Ecclesiastes 2:21)

Add to: File Insurance Business article Teen Photo Images