Business 

Three Things to Do Before Buying a Franchise
Posted on

Each time that you see a recognizable brand name pop up in your city, the chances are good that it is part of a franchise. Major restaurants like McDonald’s and Subway use franchise agreements as a way to make more money without doing any real work. As long as you have the cash needed to buy a license and the time necessary to grow that business, you can make money as a franchise owner. Whether you want to open a restaurant, gym, hotel or any other type of franchise though, there are three things that you must do.

Ask About Help

Before you sign any paperwork, ask about the level of help that you will get. This can vary quite a bit between companies. Some companies want to ensure that you help the brand grow and will require that you visit the head office to meet with representatives or that you go through some type of school or training program. Other companies will simply give you some paperwork to read through that tells you what to do. The more help that the company offers, the easier you can open and run your business.

Research Total Costs

The total cost of opening a franchise can surprise some. One of the first things to look at is the total amount that you need to put down just to secure the license. While some companies charge you a set licensing fee that lasts as long as you run that business, others charge an annual fee. There are some companies that charge an annual fee and will take a percentage of your profits. Those companies may require that you order all supplies and equipment from them, even if you can find cheaper supplies elsewhere.

Check the Agreement

You always want to read through the entire agreement or contract carefully and get help from a franchise law office. Lawyers working for that firm can read through the documents and let you know what they find. They can tell you if it is a standard legal document or if there is wording that might harm you in the future. You’ll even learn what happens if you cannot pay your franchise fee or if you decide to separate your business from that company. If you take the time to do these things before you buy, you can make a smarter decision about being a franchise owner.

Three Reasons to Order Your Supplies Locally
Posted on

Receiving supplies on time and delivering exceptional customer service is one of the most important aspects of running a successful business, says Gelato Products. And whether you order your wares and accessories from another state or in your hometown, following are some of the advantages of purchasing your supplies locally.

Reduced Costs

The movement of today’s freight is highly dependent on costly diesel fuels, according to Supply Chain Quarterly, which can have a negative impact on your cost of sales and bottom line. And if your supplies come from across the country, there are additional logistics costs to consider. So, if you run a restaurant and need gelato cups for certain dessert entrees, you can probably shave some expenses off the shipping by ordering from a local vendor.

Better Service

The timeliness of ordering and receiving supplies is crucial for avoiding costly out-of-stock conditions. Just any old container won’t due if your customers are expecting custom yogurt cups and you serve them with some odd-shaped cup. It’s less appealing and unprofessional. Also, local vendors are more apt to cater to local buyers because it’s much easier to complain about service on a local level.

Supports the Community

The custom ice cream cups you order from a local vendor, for example, benefits the local economy because a percentage of the taxes are paid to the local government. Your supplier may also make charitable contributions to various organizations within the city, further benefitting the people who live there, the sick, veterans or the environment.