Small Business Franchises

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Tips & Advice to help you make your decision on Small Business Franchises

Small business franchises allow entrepreneurs to start businesses based on proven business models with brand names. Buying a franchise from a large corporation, such as McDonald's, allows you to leverage a well-known brand name and the purchasing power of the parent company.

A single-unit franchise is the easiest way for a new entrepreneur to get a start in the franchising business. The franchisee is only responsible for one store. Multi-unit franchises allow the owner to open more than one store. You also have the option of purchasing an existing franchise.

Small business franchises have many benefits, including the selling power of a recognized brand and employee training programs that minimize the risks involved with operating a business. However, if you start a business, your reputation will be tied to the parent company, so your business can suffer from any bad press it receives. In addition, you must operate your business under the rules established by the franchisor.

There are a variety of costs involved when you own a franchise. You must make an initial investment or pay a start-up fee upfront to buy the rights to use the company's name. In addition, you will likely be required to pay an annual royalty fee to retain this right.

Click the links on this Business.com page for more information about small business franchises.

Franchise Opportunity Listings

Franchises are like food: There's something out there to suit everyone's tastes. As such, a franchise can be the perfect business for a budding entrepreneur. The options are incredibly diverse, and the business models — already developed and refined by someone else — proven. With a minimal investment, franchisees get the inspiration and support they need to become the business owners they dream of being.

So, where to start? Franchise opportunity listings are the ideal spot to begin your research. In reviewing them, be sure to consider:

Demand
Competition
Cost
Commitment

Start on the Web

You'll find a huge number of franchise offerings on specialty Web sites, with listings conveniently sorted by business type (such as automotive, restaurant, home-based) and location. You can see the investment needed for each franchise and read a pitch from the franchisor about the training and support they give their franchisees. Online contact forms will put you in touch with the franchisor for more information.
Try: Go to Franchise Solutions, Franchise Gator, Franchise Opportunities or type "franchise opportunities" into your favorite search engine.

Browse association listings

For more exclusive listings plus educational material, try local and national trade groups.
Try: The International Franchise Association (IFA), the American Association of Franchisees & Dealers (AAFD) and the American Franchisee Association (AFA) are the country's main franchisee trade groups; visit their Web sites to browse electronic opportunity listings, order print directories and more.

Consult business directories

Business directories can be excellent places to find just about anything — including franchise opportunities.
Try: Search business directories at AllBusiness and Yahoo! for a wealth of franchise opportunities.

Look to trade magazines

B2B magazines often function as virtual libraries for entire industries. Many collect and publish classified ads especially for their niche readers.
Try: Franchise Times and Franchise International feature dozens of franchise listings online and in print and offer industry news and surveys as well.

Ask a search firm

Too busy to spend your time sifting through hundreds of franchise listings? Hire a professional to do the searching for you.
Try: Entrepreneur Connections offers a free consultation service, called FranChoice, designed to connect entrepreneurs with the franchise opportunities that are most suitable to them based upon their needs and goals.

Avoid traps

Don't rely on listings alone to sell you on a concept. Do some research and consult existing franchisees to get an honest picture of the opportunity.
Try: FranSurvey.com rates franchise opportunities using information gathered from existing franchisees.

Once you've identified a potential opportunity, research the franchisor further at Hoovers. Also, request from the franchisor a Uniform Franchise Offering Circular (UFOC), which will contain all the information you need about a given opportunity.
The most useful franchise listings will include a company history, unit count, geographical opportunities, application prerequisites and investment requirements.