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Are you thinking of opening a franchise? There's lots to learn before you make the leap into this unique form of self-employment.

With downsizing and outsourcing becoming familiar words, many current and former employees are looking at the benefits of owning their own business. Franchises provide those with limited cash to open a business, but it's not entirely a free ride. You'll have to stick closely to the system laid out by the franchiser, who has the ultimate say on how you run your business and make a profit, or hire & train your employees.

There are a lot of benefits to a franchise with a good support structure. Before opening a business, you have access to a well known brand and access to an advertising budget that most small business owners can only dream about. Many big franchises will do the research on whether your business will be able to attract enough customers and avoid direct competition from similar shops in the same area... these pre-purchase market studies are a big plus in setting up a business that will be successful.

The key is that you'll need to know whether the franchise you are interested in buying will provide the name brand and support that you need. A badly run franchise operation can cost a lot in initial costs and leave you stranded once the investment is made. You also run the risk of getting hurt by bad branding from other franchises or the parent company, even if you are running a first rate business.

The bottom line is that a franchise — or a string of franchises — can be the perfect investment and business opportunity... or a small business owner's worst nightmare. Do your homework and research the past, present and future projections of the companies you plan to invest in. Remember that anything that sounds too good to be true, usually is.

If you do the research, sort through the sales talk and still think that you've found the perfect business, get a good lawyer or other advisor to check the paper work and point out the aspects you may have overlooked. If it's a good deal and you have the money and business sense to make it work... you may have found the perfect answer to owing your own business.

More about buying a franchise around the Web:

On the Web, learn whether or not you may be cut out for the franchise game - with discussions on promise and pitfalls, pros & cons, major companies to contract with, contract negotiating, and the jargon & buzzwords of franchising ...

StartupJournal | Franchising - Maybe the only resource you'll ever need in terms of what questions to ask, what pitfalls to watch out for and more on the nitty-gritty of franchise operations with a cache of information-rich stories from the Wall Street Journal, including how to interpret the Uniform Franchise Offering Circular (UFOC), reading the contract, preparing an exit strategy, and lots more.

The Franchise Prospector - The online journal featuring a directory of U.S., Canadian and international franchise opportunities, plus related story articles, guides & a list of what's hot and popular in franchising right now.

FranchiseGator.com - Related story articles plus information on featured franchises from big name companies you'll recognize, together with a searchable directory of franchise opportunities, and browse around the left-hand menu for more resources, free newsletter, FAQ.

International Franchise Association - Clearinghouse of news & information on over 1,000 opportunities plus guides to minority franchising, advice & how to's for finding the right franchise, online forum, suggested reading and related links.

Franchise Times - Check out their annual Top 200 list of choice franchises in the U.S. along with feature cover story and more with paid subscription.

Franchise World - Online UK magazine with guides for beginners on pros and cons, buying tips, a glossary of industry jargon & buzz words, franchise classifieds.

Franchise Direct - International listings of franchise opportunities to choose from with basic information on startup costs and franchise fees. The articles provide good advice and industry news gets you started on the research...

also see feature story -> Franchise Do's & Don'ts

also in Small Business --> Minority Owned Businesses

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