Most people want to own their own business. If you are one of them, what could be the kind of business would you want to put up? True enough, many people quit their present jobs in order to have their own business. Despites the elements of the unknown, having your own business is very rewarding. However, because many of the businesses do not succeed during the first few years, deciding on which type of business to venture to is difficult to do. In order to avoid experiencing a failure in a business venture, many would-be entrepreneurs turn to buying a franchise.

What is a franchise business? A franchise consists of a string of businesses such as restaurants, convenience stores, business shops, gasoline stations among many others. Many people are now venturing into having their own franchise business because of its many advantages. Of course, where there are advantages, there are also disadvantages, which can make many prospective business owners to think twice about their decision.

Before making the big decision of buying a franchise, here are some pros and cons that you might want to study and consider.

The Pros of buying a Franchise business

When you are someone who would like to go the way of opening a start-up business, it will definite take time, experiments, money and even disappointing results before a business can really take off and make a profit. On the other hand, a franchise business already has a fool-proof method for success. If you acquire a franchise, you are provided with ready marketing and promotional materials and tools and other strategies that are sure to draw customers.

Franchise business already has a customer base to regularly patronize it. Perfect examples of franchise businesses which have established customer base are 7-Eleven and MacDonald’s. If these are your franchise business, you will taste business success soon enough.

The Cons of Buying a Franchise Business

Even if you are a franchise business owner, rarely do you call the shots. Franchises have very strict rules for the franchisees to follow. For example you may want to apply a certain type of promotion and advertisement for your franchise or perhaps you might want to increase the prices. You cannot do this on your own without the franchise’s prior consent. The franchise’s corporate department is the one to make decisions on all aspect of the franchise business.

Franchise business is an expensive business. There are exorbitant start-up costs and franchise fees for franchise owners to contend with. There may even be monthly fees to be paid for the business support and advertisements. Many franchises also require that aside from loans from banks, prospective owners should also put up and invest their own money.

What made the franchising industry of the Philippines successful? According to the PFA or the Philippine Franchise Association, the franchising industry of the Philippines had gained significant growth over the past couple of years. The reason why is because of the many new franchise businesses available in the country today, such as food-stall and food-cart businesses.

Franchise Businesses from Then and Now
According to the PFA, most franchise business in the Philippines were large businesses such as convenient stores, fast-food restaurants, and many others. Because of this, most of those which were able to franchise a business were wealthy Filipinos, companies, and corporations.

Today, however, a number of new franchise businesses were made available in the Philippines which can offer many more Filipinos the same opportunity that wealthier Filipinos have had with Franchising business Philippines. This is when food-cart and food-stall businesses were introduced as a franchise business in the Philippines.

Success of Food-Cart Businesses in the Philippines
Food-cart and food-stall businesses were first established as small businesses by private Filipinos. However, when different franchising companies and corporations in the Philippines have found its potential as a small franchise business, many of these have started to acquire the ownership of those small businesses and distribute it as a franchise business for the average Filipino.

Since then, the popularity of franchise businesses had significantly grown, particularly for these businesses. So what are the benefits can these types of businesses offer:

Affordability
One main reason why these small franchise businesses became popular is because of its affordability. Compared to larger franchise businesses, food-cart and food-stall businesses are far more affordable, allowing more Filipinos to have the opportunity to start their own successful and profitable business.

Simplicity
Another reason why franchise businesses became popular is because of its simplicity which allows its franchisees to manage it by themselves. Because of its relatively smaller size, these businesses can be easily placed and moved from place to the other. And in addition to that, these businesses can also be easily manned by one or two personnel.

Availability
Another reason why franchise businesses had gained a lot of popularity in the Philippines is because of its availability. As the industry grows, the number of new food-cart and food-stall franchise businesses had also grown, which introduced many new franchise businesses that gave more choices for Filipinos from which of these small businesses are suitable for their preference.

Thinking of starting a business? You may have been suggested to consider franchising. This is a type of business opportunity where you can sell or offer the products or services of an established company under the same set up. A good example of this is the food company McDonalds, whose franchise allows any interested investor to set up his or her own McDonald’s fast food store. Franchising is a way for businesses to expand and increase their consumer reach. And for some investors, this may be a very lucrative business opportunity. Others may find such no luck.

If you are considering franchising, it is best to study the dynamics first before plunging into it. Gathering information is vital to the success of your venture. It is good thinking to get as many information as possible, especially since there are numerous franchising opportunities everywhere, you have to learn to discern one from the other and make a good and informed decision.

There are many resources for finding information on franchising.

– You could start with the internet, where there are thousands of tips and business advices available. There are also a lot of dedicated websites that deal with franchising topics, you are sure to find plenty of information on going about it. You may also come across franchisors that advertise their offer online.
– Similarly, you can also check your local public library for books, newspapers and other reading material for the same information. Plus, libraries normally have a business section where you can gather company information. Seek the librarian for help, if needed.
– If that is not enough and if you need an in-depth profile of the company you are interested in, you may inquire from your local government agency, a consumer bureau or any business group or organization. They may have files and information on: 1) the regulations, rules, processes of franchising; 2) the structure and procedure of the company you are eyeing; and 3) maybe even complaints about violations or investments against the company.
– You can also opt to subscribe to business magazines. If there is a particular magazine that only deals with franchising, then that’s the one you should get.
– Inquire from your local consumer bureau on the possibility of a seminar on franchising.
– And if possible, interview or seek help from other franchisees themselves.

There is no such thing as too much information in this case. As a possible investor, you have to carefully study where you will be putting your money. So, if there’s an opportunity for you to learn more about the business, the company and its product then grab that chance and make good use of the resources.

Making huge investments for buying a franchise may not spell success for budding entrepreneurs. However, there is more risk involved in buying an expensive franchise unit as compared to taking up a low-cost kiosk.

Low-cost kiosk format

Kiosks are small-sized shops, having a semi-permanent fixture. They are mostly present within a larger establishment such as a mall, departmental store etc. The structure of a kiosk could be designed as a standalone structure like a terminal, or a semi-enclosed booth. It offers a wide variety along with the advantage of low investment. The article enlightens aspiring entrepreneurs about low-cost kiosk franchise opportunity in various business formats.

Coffee kiosk franchise

The last few years have witnessed an upswing in the coffee culture brewing across the nation. Major companies like Coffee Day Xpress, Brewberrys and Gloria Jeans Coffee etc have started their coffee kiosk after seeing its low-cost multi benefits. The trend of coffee kiosks has gained tremendous popularity. The key to any such venture is finding out a good location that will give maximum benefit to the sales of coffee. Adding other items such as pastries, sandwiches etc can also promote low-cost coffee kiosk.

Candy kiosk

Candy kiosks attract kids by their enticing and eye-catching colours and presentation. Candy Treats, Sweet World etc are the main players in this section. This format is usually launched in malls and airports etc.

Ice-cream kiosk

Ice-cream kiosks format is another popular category which is gaining popularity in the current scenario. Most of the major players have adopted kiosks and cartwheel formats in ice-cream section. Kwality Walls, Baskin Robbins, Vadilals, Amul, Gelato Vinto etc are a few names in this section. Quick service restaurant chain Nirulas has also started its standalone ice-cream kiosk model.

Chocolate kiosk

Chocolate kiosks are also catching up speed in the present business scenario. At present there are few kiosks in this format but this is an up-coming concept with great future prospects. Chocolate kiosk can provide entrepreneurs with the right franchising opportunity in terms of low investment and high gains.

Juice and cookies kiosk

A kiosk in juice and cookies category is also a lucrative option for aspiring franchisees. Today, consumers have become very health-conscious. This awareness has led to the opening of many juice bars in the country. Similarly branded cookies are also catching up with Indian preferences. Mr. Orange is a prominent player in the juice kiosk while Cookie Man comes under the cookie section.

Taking a kiosk of any of the above formats is surely a great franchise opportunity for budding entrepreneurs. To conclude, kiosks offer low-cost franchise opportunity with high returns.

You may already know the basic bones about franchising and what it could mean for you. If you don’t want to create your own business from scratch, the next best thing could be to buy into a franchise. In fact it can often be a better solution because the framework of the business is already there for you, and it has also been proven to be a success.

However it would be unwise to go ahead and dive into the first franchise you find without getting decent franchising legal advice first. This is available from franchising solicitors – solicitors who have chosen franchising as their particular speciality.

Before you go and find a solicitor to help you, it is a good idea to think about a franchise opportunity so you have some good questions to ask. In some cases it might be better to narrow down your choice of franchises first. This means you will have a good idea of the type of franchise that will suit you, so that you have some concrete questions to ask.

Franchising solicitors can give all kinds of franchising legal advice to budding franchisees. Don’t be afraid to ask any of the questions you are thinking of – the chances are that other people will already have asked them at some point! It’s good to have all your questions answered before you make the final decision on which franchise to opt for. Remember that this is a major decision in many ways – financial as well as business related – and it will affect your life in lots of ways. It makes sense to get as much franchising legal advice as you can before you make such a decision.

It’s worth remembering that specialist franchising solicitors have lots of experience in the field. They will have dealt with many different franchise situations and clients. This means they will likely know the answers to most or all of the questions you want to ask without any research needed at all. While you may be able to find the answers to some of your questions initially without help, you are bound to have some unanswered questions at the end. These will need to be resolved before you go ahead and invest in the franchise you have narrowed your choice down to.

In any event franchising solicitors will be vital to you if you wish to make everything go as smoothly as possible. From answering your initial questions to providing franchising legal advice every step of the way, you can be sure you will arrive at the best possible situation.