March: Becoming a franchise owner can be a lucrative, fulfilling career. You don’t have to look too hard to find successful people who, when they were business newbies, started out with one hands-on franchise – and now they own several.

And that is one of the very valuable functions that franchises serve – they’re a fantastic way for people who have the drive and intelligence to be good at business to get the training and experience they need to thrive.

A franchise is a training wheels kind of business. If you don’t know the first thing about running a business – no problem. The franchisor will train you, provide you with the mandated tools and appliances (at a cost) and give you the rulebook you’ll get to play by.

It’s just like following a recipe.

Franchise businesses also contribute a lot to the wider community – many kids get their first jobs working one-on-one for a franchise owner.

Opportunities for business growth and financial stability seem limitless when you start learning about franchise businesses. Research will indicate that you can find franchises in industries that serve needs as diverse as pets, food, sewing, computers, marketing, cars, children, and hardware–just to name a few! As you examine these different types of ventures, you will find one of the easiest ways to step into a ready-made company that has brand recognition and proven marketing techniques.

Many people dream of becoming entrepreneurs and setting their own hours. Those who seek more information about franchise possibilities, are often thrilled with the prospect of jumping into a well-planned business model. Another advantage is that the corporate offices usually offer support and training to help ensure success.

But, buyer beware! Eventually, potential investors understand that not all companies are the same. Like any investment, a franchise is not a guarantee of success. And many who learn about franchise businesses find that these types of businesses do not offer the franchisee the ability to make decisions autonomously. As time goes by, you will start to realize that customers expect consistency from store to store across the world, and decisions covering this consistent service must be made at a global rather than local level.

Take note that there is a legal and commercial relationship between the owner of a business trademark, trade name, or symbol and an individual or group who wants to use that identification. In a simplest agreement, the individual purchases the right to use a name or symbol. There are also opportunities in which the franchisor provides a full range of services such as help with site selection, training, marketing plans, and product supply.

The concept of franchising was reportedly suggested by I.M. Singer & Co. in the 1850’s and was the advent of today’s franchise business ideas. At the time, the American public was skeptical of the intentions of the company, and the idea failed. But as the industrialized age continued to unfold, more franchise vendors became nationally known, and their brands began to alter the economic landscape. In spite of these early successes, the concept of franchises didn’t really take off until the late 1950’s. Prior to that, the only franchise businesses that were considered very profitable were those for automobile companies, soft drinks, and gasoline.

In the late 1950’s and early 1960’s, the design of franchise business ideas exploded with such giants as Holiday Inn, Dunkin Donuts, McDonalds, and Baskin-Robbins. But today not every franchise business venture is a success as you have to do your best to predict how one will do in a specific geographical area. And not every franchise business idea works in every geographical area. Prior to investing in a franchise, it is important that you do your research to reduce the risk of it failing.

Have you ever been on a business trip or visiting family and been introduced to a wonderfully thriving business that is unique and offers a different twist on a product or service? You learn that franchise opportunities are available for this product or service–and you wonder if this franchise business idea can be transplanted to your hometown.

An essential part of any franchise is the franchise business plan. A comprehensive plan helps not only to prepare you for the future of your business but also to acquire needed financial backing from investors or the bank. While each business plan should include material unique to the specific situation, such as location, finances, and particular franchise, there is also detailed information that should always be included as well.

The big difference between writing a plan for a non-franchise business and a franchise is that the franchise plan must combine information about both the new owner and the corporate franchise structure. In effect, it merges elements of both the new franchise and the corporate organization. While a franchise business plan contains the same eight sections as a plan for a non-franchise business, a franchise business plan does have slightly different information in each section. You will find descriptions of these sections below:

The first part is the Abstract, which should be briefer than a typical executive summary. This part serves as the preface, should be purposefully brief, and give only an overview of the rest of the plan.

The second section is the Business Summary. This part includes a description of the business itself, the competition you expect to face, operating procedures, business insurance, and financial data. This section is similar to that of a tradition plan but is altered slightly to include additional information about the structure of the home office.

Each year Entrepreneur magazine lists their top-20 franchise business opportunities based on financial stability and income potential. Many of these opportunities listed in the top 20 were started by business people who were answering a need they recognized in their communities. These businesses have start-up costs that range from $3500 to well over $1 million. The vast differences in start-up fees indicate there is a wide variety of franchise opportunities for those who want to invest a small amount or for those who are willing to take on investment partners.

Basically, a franchise is a way of distributing products or services through retail outlets owned by 3^rd party operators. These businesses are purchased for an initial investment fee as well as continuing royalty fees paid over the course of the lifetime. Royalty fees are used to run the corporate office; offer global advertising; and provide support, training, and consistency from unit to unit.

Franchise business opportunities are a wonderful way of mixing fun and profit. The ones with lower initial costs will especially give franchisees the ability to own a business, sell a product, and enjoy the profits while requiring only a low up-front franchise investment.

Franchise shows themselves may not offer quite the same experience as being a kid in a candy store, but they’re sure to make anyone interested in the world of franchising feel like one! With seminars, the chance to meet other entrepreneurs, and the opportunity to connect with literally hundreds of franchise opportunities, these exhibitions are really like being the only kid in the candy store. On Christmas Eve. With a $100 dollar bill.

If you’ve never been to one before, take a look at some of the classes and symposia offered at this type of event:

• Symposia including “The Use of Technology in Franchising,” “Operations Manuals: The Foundation to Consistent Execution,” and, understandably enough, “Franchising Your Business.”

• Or perhaps you’d like the conferences including: “10 Things No One Tells You When You’re Shopping for a Franchise,” “How to Finance Your Franchise,” and “Choosing the Right Franchise.”

No question, eBay franchises became the next “hot new thing” in 2005, attracting the attention of Entrepreneur magazine and hundreds of eager new eBay franchise owners.

However, the dream does not always live up to the reality.

The eBay drop-off stores suffer from a number of potentially serious drawbacks. For example, eBay sellers frequently charge a high set-up fee and royalties off the top of sales volume whether or not the franchise is making a profit.

In addition, the following drawbacks make opening an Ebay store a very difficult proposition:

• High overhead. According to Scott Pooler, a former official eBay Trading Assistant who has had experience dealing with several aspects of eBay franchise operations, says drop-off owners are looking at overheads of roughly $8,000 per month. Many franchisors contribute to this high cost by mandating the purchase of certain packing materials (rather than reusing or finding cheaper materials), requiring minimum floor space in the store, and insisting on royalty fees whether or not the franchise operation is making money.

You have an established business based on great ideas and solid products or services—is it time you become franchised?

A franchised business offers you several advantages over adding and managing new outlets yourself:

• You can expand without expending nearly as much of your own capital.

• They save you the time and costs involved in finding a location, training all of the employees, and closely overseeing the operations of multiple locations yourself.

• You keep your risks low since franchisees invest the money to start new locations; your investment is limited to the necessary support to help the business grow.

• Franchisees are frequently much more dedicated to the franchised business than unit managers you hire yourself. Removing worries about handling turnover at this level spares you time to help your business grow.

As you ponder over the many options, you may wonder which is the best franchise opportunity for you. Of course, becoming a franchise owner isn’t limited to picking the fast-food industry. A small sample of the types of businesses chosen by Entrepreneur.com in 2010 include convenience stores, educational/tutoring businesses, and commercial cleaning. Initial investments are all over the map as well, with some requiring far less than $50,000 to start.

How do you choose the right one for you? Use the following 7 tips to help you serve your future. These tips come from About.com Franchises Guide Don Daszkowski and USA Today’s Franchise Ownership Center.

1. What are your strengths and interests? Make sure to choose something you’ll enjoy investing your time as well as your money in. You want to avoid those that require skills that don’t play to your strengths or that bore you to tears.
2. What’s your starting budget? You should probably stay away from one that means going into debt you can’t handle or that will add too much to your stress. If your budget is $50,000 and the franchise costs $100,000 to start, it may not be the right one for you.

There’s a large number of franchise business advisors out there claiming to be able to help entrepreneurs get started. How can you figure out whether the service of a franchise business advisor will help you?

One thing to note for franchise business advisors, is that the laws and regulations covering the specifics of training, requirements for the services they offer and conflict of interest rules specifying what kind of clients they can serve, are all very scarce and vague.

In fact, the websites state that the advisor’s marketing and other expenses are paid by franchisors, not potential clients like you. There even is a company that claims to train these business advisors in only 2 days of training in the field.

With these things to consider, the question quickly becomes, “Just whom is the franchise business advising business serving?” “Not you,” seems to be the answer to that question, at least for the ones surveyed for this article.

However, we found one firm that was honest enough to state right on their Web page that their goal is to serve franchisors. The services we found on this site made the services that their competitors offer look pretty pale by comparison. But then, this particular site was a firm of attorneys. Not many franchise business advisors out there seem able to make the same claim.