Colorado Franchise Basics: Business for Sale

Franchise business opportunities are expanding rapidly. If you look at the most famous franchise in existence today is the McDonald’s corporation. McDonald's has established itself around the world and is one of the leading business organizations. Opportunities in franchising continue to develop as the franchise industry develops.

What is a franchise?

Information on the Franchise Business

A franchise is a mirror image of an original business idea. When a business has become successful the opportunity arises to duplicate the success in other locations. When an individual purchases a Colorado franchise opportunity, they are purchasing is the right to repeat the original business operations in another area. To help them achieve success a Denver franchisee receives complete instructions on how to achieve the success achieved by the original business. They get an established and proven business plan and marketing plan on which to build their new business. Thus, rather than pursuing a start up venture, keep your eye out for a great Denver business for sale.

A Colorado franchise has been granted the authorization to sell or distribute a company’s goods or services in a certain geographical area. For example, a restaurant or coffee shop’s marketing area is limited, usually to people in the immediate local area. Therefore, creating another restaurant or coffee house based on the original business in a different area would be considered a Colorado Springs franchise.

The original business developer determines the formula for producing the same result achieved by the original business and how this formula can be repeated in new locations. This formula is packaged and sold as a franchise. This package is sold to interested parties who can achieve success simply by following the proven formula.

Why Do Businesses Sell Franchises rather than Expanding their own Business?

What is the advantage of developing a Denver franchise as opposed to simply opening the business in multiple locations? It is quite possible to open a number of restaurants in one city or county or even within a state. However, the time requirements and energy required to do this is extensive. Franchising offers the possibility to expand the business and have others on board to share the burden.

It would be impossible for someone like Roy Croc, who developed McDonald's, to run each individual McDonald’s restaurant around the world. To expand your business without running it into the ground, you need quality people who have an interest at your own bottom line.

Information on Buying a Colorado Franchise Business

Many people would like the freedom to start their own business. However, they may be new to the business world. Or they may not be confident of their ability to develop a business. Or they may not have a business idea that they are confident in. Research it, and look for a good, fitting Denver business for sale.

The opportunity to start a business that has a proven success record and an established plan for achieving a similar success is what make franchising attractive to new business owners.

This is beneficial to both the original business developer and the entrepreneur. The business developer makes a profit by selling his system and the entrepreneur gains the knowledge from an experienced owner with a successful business. This increases the opportunities for the entrepreneur, which allows for a greater chance of success.

Source: Peter Hayes, ezinearticles.com

Make the Most of your Colorado Franchise

Thinking of a new business to venture into? Want something that is small, affordable and that won't require many staff? The franchise business may just be the right solution to your problem. It is time to consider looking for a Denver business for sale.

Franchising is one of the most popular trends in business today. But while this has gained much popularity only in the recent years, franchising originated way back in the 1850s. Isaac Singer, the man behind the famous sewing machine, pioneered this method of business. His efforts to distribute his sewing machines were considered the very first type of franchising. You do not have to choose a major franchise such as the McDonald's or Burger King because they will require a big budget. You can always start small. Start with something you are very passionate about or one you can properly handle by yourself or just with one partner.

There are advantages to having a Colorado franchise compared to starting an original business from scratch. With this method, you are given the opportunity to do business using a brand that's already been tested in the market. This means that the brand name has established its own following which makes it easy for you to market to potential customers. Business oriented people who want to have total control of their enterprise are the major beneficiaries of franchising. If you want to be the boss and you want to establish your own business, getting a Colorado franchise may be a great option for you. Keep your eyes open for a good Denver business for sale.

Because of the independence you can get from this type of business, you have the freedom to work at your own time and pace and yet feel more secure than being stuck in the corporate world. The training aspect is another advantage. Most Colorado franchisers offer training which can either be free or paid. The fee for the training can be included in the total franchise fee or can be charged separately to the franchisee. With this training and continued support, Denver franchise owners are given the proper guidance from the experts themselves. And should their business succeed in the future, they can always expand by adding more outlets.

In addition, a small Denver franchise business has the ability to easily recover its return on investment (ROI) depending on how you are able to manage it. This can be attributed to the established brand name but it will also depend on the service you provide to your customers. But then again, there is no guarantee that it will be a total success.

Before jumping into this trend, make sure that you do your research. Find out what type of franchise business do you like and if it suits your budget. Do you want to look for a Colorado Springs franchise, or a Denver franchise? Think about your local market, and think which is the Colorado franchise for you. Consider one with a proven track record, easy and affordable to manage as well as one that can be duplicated. You may also choose one that has no geographical limitation and has a unique appeal.

Finally, the success of any business relies on hard work and dedication. If you're planning to get into franchising, do your best to promote it to your target market and provide service that is a cut above the rest.

Source: Kaylan Kumar, ezinearticles.com

Finding Good Franchise Opportunities

When you say the word 'Franchise', most people immediately think of business-based franchises like those that are top listed in popular business magazines every year. But, it is important to remember that there are hundreds and thousands of Colorado franchises out there, some that are spectacularly successful, others that are total failures.

Obviously, you want to avoid the latter. So, how do you select franchise opportunities that work? The first step is to understand that franchising is not everybody's cup of tea. A Denver franchise is someone who works under an established company, selling pre-established products in a particular manner. For some, this sort of an operation may cramp their style. Remember the customer's loyalty is to the brand name and not to the Denver franchisee.

So, you have to play by the rules of the franchiser. For example, you cannot sell burgers in a Pizza Hut outlet. But for those with limited experience in the business sector and those who love to work within the framework of an established system, the right Colorado franchise opportunities offer the path of least resistance and maximum return. So, what is franchising? Simply put, it is a system of distributing services or products, and it typically involves two levels of people. In the first level, you have the franchiser under whose name or trademark the Denver business for sale will be held. In the second level is the franchisee, who pays a royalty to get the right to do business under the chosen franchiser.

Lucrative Denver franchise opportunities are easy to identify if you know what to look for. The first thing is to select a brand name that sells. Belonging to a reputed brand gives you a competitive edge. Often, the franchiser's name is in itself the biggest advertisement you want. Think McDonald's! Their name is sure to draw enough business due to their consistent delivery of high quality products and their global advertising campaigns.

One of the biggest challenges when it comes to choosing the right franchise opportunities is the sheer choice you need to confront. Did you know that more than 48% of all retail sales are Colorado franchises? To make matters worse, there are about a 100 different industries to choose from. So, what should you do? Easy. Go into yourself and think for a moment: what do you like? Do you have any hobbies that could help you? Find the industry that ignites the spark within you. Remember, once you start, you will need to think of your business 24/7.

Once you identify the industry you want to work in, the next step is relatively easy. Find the franchiser you want to work with. Online web directories are a good source of Denver franchise information. You could simply log on to web portals and enter your search criteria based on geographic location, industry and price. You will then get a complete listing of Colorado franchise opportunities in your area of choice. You are sure to find a great Denver business for sale.

You're not ready to sign the agreement just yet. Remember, you have to negotiate terms with your franchiser. To do this, you would need to draw up a business plan. Many franchisers are willing to alter their terms somewhat if you can show them how it will help them and you, the Denver franchisee, to grow.

Source: Quinlan Murray, ezinearticles.com

Denver Franchising: A Smarter Business Choice

What does owning your own business and owning a Colorado franchise have in common? Other than having to manage the business, there really is very little in common. With Denver franchise opportunities, you don't get to make any executive decisions, and you have to share your success with corporate America.

When you own your own business, there is less risk, believe it or not, than owning a franchise, so long as you know which niche to fill. If you go out and purchase a fast food franchise, you'll be expected to invest a certain amount of money. If you were starting your own business, your risk would end there. However, with Colorado franchises, your beginning investment is not the total sum of your monetary risk.

With Colorado Springs franchise opportunities, you can expect additional hidden costs, franchise fees, marketing fees, and you'll have to hand over a significant portion of your monetary success. The main reason that people seek to own their own businesses is to enjoy the success of that business, without having to split it with someone who has done, comparatively speaking, very little work.

Those who are partial to franchising might say that you get your marketing done for you by corporate America. However, that is handled by marketing fees, usually calculated as a percentage of sales. Between franchising and marketing fees, you could expect to pay almost one fifth of your monthly sales, and you have no say over what you market, to whom and how. Watch out for the fine print, because even though the initial investment may seem akin to that required to start your own business, there are bound to be other fees and costs in addition to that original investment amount. In some cases, additional costs can amount to a price equal to the original investment price. That is why it is much better to seek out a Denver business for sale.

Currently, saving for retirement is more important than ever before. With more people living longer, relying on social security payments is no longer wise. Imagine being told your investment into a franchise opportunity will amount to one hundred fifty thousand dollars. After all is said and done, extra fees and costs are added in, your total investment to get the Colorado franchise up and running is three hundred thousand dollars. After the first three months you've earned that back in gross sales.

Nearly twenty percent goes back to the corporation to cover your Denver franchise and marketing fees, leaving you with two hundred forty thousand dollars. You have to order supplies, because after the first three months, you've gone through everything covered by your start up cost. Suppose that leaves you with one hundred thousand dollars. Then you have to pay employees, taxes and benefits. If you have ten employees, each earning one thousand dollars a month, that's another thirty thousand dollars, so you're down to seventy thousand. After taxes and benefits, that leaves you with fifty thousand dollars. You have to still pay utility bills, and also cover any training for yourself or others, because the corporation will only cover training for a limited time. Let's say that your net profit is thirty thousand dollars after three months, or ten thousand a month.

From that, you have to cover your own expenses, so suppose you take five thousand a month to pay for your mortgage and other living costs. Five years would go by before your Denver business for sale has earned your original investment, and then and only then could you start counting any money made as pure profit. Now, compare that to investing less than one hundred twenty thousand into your own business. In less than three years, based on the described example, your business would be earning a profit.

Source: Andy West, ezinearticles.com

Denver Business Franchising vs. Start-ups

A Denver Franchise opportunity has numerous benefits over starting a business on your own. The major reason why it pays to become a franchisee is that you are much more likely to still be trading profitably after five years of trading. Over eighty percent of new start ups fail within the first five year! It is much more reasonable to seek for and invest in a Denver business for sale.

When one buys a business through a Colorado franchise. they receive a detailed, introductory training program. This covers all aspects of running a business. The training program is critical in ensuring that a business runs smoothly. It is the franchiser's interest for the Denver franchisee to succeed as then he receives higher royalty payments. This also serves to attract new people to their franchise system. The more that they succeed with their business, the easier it is to attract quality people to consider investing in a Denver business for sale.

The Colorado franchisee also benefits from all the logos, stationary, brochures and websites that have been created. Someone starting a business on their own has to spend a huge amount of time in just creating a brand image. Most lenders are willing to offer a higher percentage of funds required to start a business to potential franchisees than if they were starting a business on their own. This is because they recognize the potential of buying a Colorado Springs franchise. They also have to protect their investment in the business and realize that their money is much more likely to be repaid by someone buying into a franchise. The franchiser even assists the franchisee with the territory. Usually this advice is free unlike when one starts a business on their own. The market research and advice on territories likely to succeed might have cost the franchiser a serious amount of cash but is yours for free if you buy into his systems. The franchiser will even help the franchisee to secure planning permission using their knowledge acquired through years of experience.

Trying to tackle this maze on your own without paying for specialist advice is a minefield. Paying for specialist advice costs a small fortune which is why most new business owners do not do it. By buying into a franchise business almost nothing is left to chance. Your stock levels are predetermined by the franchiser and have been based on years if not decades of experience. Starting a business is only the first phase in achieving profits. This is where the ongoing support and further training if required comes in. Most franchises Denver provide further training at favorable prices. They only usually try and recuperate their costs without trying to make a profit on their training programs.. When it comes to advertising on a national scale, the franchiser can achieve true cost savings. They can negotiate national rates and then spread the costs throughout their franchise network. The franchisee does not need to worry about the logistics of creating an advertising campaign and benefit from the expert knowledge of the Colorado franchise. Source: Naz Daud (ezine articles.com)

Franchise For Sale

If you are looking for a good business opportunity, then consider running a Denver franchise. Ruining a franchise under any prominent and profitable company will spell success for any ambitious business entrepreneur. Many successful companies have now started selling franchises Denver to business entrepreneurs to take their business forward. You will find on the web various franchise brokers offering numerous franchise-buying opportunities. Some websites also carry detailed information on companies willing to offer a franchise to Denver business for sale professionals.

If you have ambition to excel, you should always check out those websites and franchise brokers to get the right business idea. Most people nurture a dream of running their own business. A franchise operation gives them the opportunity to realize this goal. Thanks to a franchise, you will become your own boss and take control of your business. But you have to be careful while opting for any franchise for sale. It’s advisable to go for the Colorado Springs franchise of those companies capable of surviving the ups and downs of the economy. A franchise that is capable of braving all the market trends should be ideal for any business entrepreneur. While searching on the Internet, you will definitely find out various lucrative franchise business opportunities. But you need to make your choice with caution.

It’s always wise to take your time to go through the business offers carefully before opting for a particular one. After all, you have to choose the Colorado franchise that will pay you in the long run. Successful companies are always on the lookout for dedicated entrepreneurs capable of making their business more profitable. So, the bottom line is that as a business enthusiast, you have go for those companies that enjoy proven success.

(Source: Jennifer Bailey, ezinearticles.com)

Franchise Legal Work and Requirements

What is required for a company to become a Denver franchise system? Legally the Federal Trade Commission is the federal organization that oversees franchise sales and growth. The industry has grown a great deal over the past fifty years, along with growth and popularity come regulations and rules for doing business in the franchise world. In the end, it is a very good thing to have tightly knit rules covering the process of franchising a business. Franchise regulations came into place initially to protect the buyer and have since evolved somewhat namely over the past 20 years in franchising. The buyer must be given full disclosure for what type of relationship they are entering into, the full terms of the relationship, what they will receive in conjunction for the fees they pay and who are they getting into Denver business for sale with.

The main franchise contract is the Uniform Franchise Disclosure Document, it is a very similarly structured agreement to that of Securities rules when adhering to SEC Blue Sky Laws when a company goes to raise investor capital. Have you ever heard the phrase, "Good Fences help make Good Neighbors?" For a Colorado Springs franchise relationship to be effective and manageable, the franchisor needs to have the appropriate and well defined relationship in place within the franchise agreement. The documents are broken into two pieces, the bulk of this contract is made up of the Franchise Offering Circular, this piece is consists of 23 points of disclosure. Step by step the document walks the potential franchisee through a description of their total investment in the business, the training processes, backgrounds and bios on the owners/managers within the franchisor organization. Everything is disclosed up front to the buyer so no one is potentially "duped" into a Colorado franchise purchase. Good franchise sales processes will carefully walk buyers through these sections and explain each part in detail. A Uniform Franchise Disclosure document is intimidating and probably more importantly extremely boring to read. UFDD's have never and will never help with a franchise sale! It is up to the franchisor to explain and make sure that the buyers have an exquisite level of understanding for every part of the Offering Circular.

Once the Offering Circular has been put together and organized, the franchise agreement should legally cement the terms of the contract under which a franchisee is compliant in the franchise relationship. Franchise rules and regulations are all about compliance and disclosure, good drafters and legal counsel can help a new franchisor understand what is necessary and what is not within the franchise agreement. We want to disclose everything that should be given to the buyer under the guidelines of the FTC and nothing more. There have been several updates to the rules over the past year by the Federal Trade Commission, most of which are very good for the franchises Denver industry in general. Before any legal work is drafted or put together, it is my recommendation to work with a franchise consulting firm or franchise consultant to have a business plan and financial analysis done for the franchise to be offered in order to put the documents together efficiently. Franchise rules and regulations are a good thing for franchising, both the franchisor and the franchisee can benefit greatly from well advised franchise companies and solid franchise agreements.

(Source: Christopher Conner, ezinearticles.com)

Small Business Franchise

Finding the right Denver business for sale to Colorado franchise requires a lot of research and consulting with experts. But it does not need to be expensive. You do not want to be spending all your money when you do not have a business to run yet.

One of the best sources for ideas and contacts for business opportunities is the annually-published and updated Denver Franchise Opportunities Handbook, prepared by the United States Department of Commerce. It contains descriptions of more than a thousand companies and businesses that offer franchise opportunities.

Always compare the opportunities. These companies differ in the level of support and the gravity of their legal demands on the franchisor.

The world of franchising opportunities, however, is not exclusive to big companies with established brand and corporate equities and identities. Small businesses can offer franchising opportunities too. In fact, small business must learn to sell franchising opportunities to fund their expansion and growth plans.

Without the money to spend on earning media mileage and vast distribution networks, franchising is the only way to can reach national or international coverage. Most big names in the industries began as small businesses with an extensive network of franchises Denver.

Franchising a small business may not appear as difficult as managing a Colorado Springs franchise of a well-known chain. But hard work is still required to make it work, especially since the brands or products you may be offering are relatively new to your target market. The advantage is that you may capture the niche market. You will also pay a lot less in franchising fees because the brand equity is most likely not yet established. Managing the business may also require a lot less time.

Franchising small businesses is a sound venture for first-time entrepreneurs. The processes are not as complex as those in fully commercialized businesses. The only downside is that the systems may still have a few loopholes that only time and experience can fix. The level of support in terms of training, management, sales and marketing strategies, and planning may be at the most minimal level too.

(Source: Kristy Annely, ezinearticles.com)

Franchise For Sale

Denver franchise business is a breeding ground of many opportunities. Buying an existing franchise is similar to buying a Denver business for sale owned by some other person. It is one of the safest ways to own a business with minimum risk.

It is profitable for both persons who is buying or selling a franchise. When you have decided to sell your franchise, initially you have to contact a franchisor. The franchisor will impose some rules and regulations for the franchise. Franchisor will provide a proper structure of cost and other charges for your franchise which include property lease and other parameters of your franchise. Thus proper price can be set for your franchise.

The main thing is to find the right customer who is ready to buy the Colorado Springs franchise. For that it is necessary to consult a business broker. Before buying a franchise, the owner should become aware of the FTC Rule which requires that a franchise or business opportunity seller must provide a disclosure document at least 10 business days before the person pays any money or legally commit to a purchase. The next idea is news paper advertisement and advertising in websites under relevant category.

When you find a relevant customer, explain to him why you are selling your Colorado franchise, various advantages when buying a successful business model and also about the profit he can earn.

There are various sites which provide information for finding the right customer as well as the details of the franchises Denver for sale. When you have earned reputation for your franchise, you will be able to sell it in much profitable way.

(Source: Simon John, ezinearticles.com)

The Franchise Agreement - Read Before You Sign

Some of the candidates that I work with as a Denver franchise consultant are not clear on the overall importance of the franchise agreement and what it represents.  
  
The UFOC (or franchise disclosure document) provides potential franchisees with specific information about the franchisor and their system during the early stages of the due diligence process.  Some candidates make the mistake of "speed reading" or scanning the franchises Denver agreement because they have a good understanding of the details outlined in the FDD. This is not a good idea.  
  
The franchise agreement is the actual written contract signed by both the franchisor and the franchisee upon completion of a franchise sale. The franchise agreement is the heart and soul of the business relationship between the two parties. It spells out in very specific detail how the franchisor expects the franchisee to conduct Denver business for sale, and outlines the obligations of both parties.  
  
All franchise agreements are not identical, but they do contain similar provisions, and I have listed some of the key items below, along with a brief explanation.  
  
Territory Guidelines. Most franchise agreements will designate a very specific territory in which the franchisee may do business. Sometimes exclusive territorial rights are granted. 
  
Fees Payable To The Franchisor. This includes the total investment, franchise fee, and ongoing royalties and when the royalties are to be paid.  
  
Services Provided By The Franchisor. Outlined here is the ongoing training and support, advertising commitments, and the products and services to be provided by the Colorado Springs franchise. 
  
Term And Renewal Of Agreement. The specific period of time of the agreement is defined here, as well as renewal details. The typical duration is somewhere between 5 and 20 years. Termination policy is discussed as well. 
  
Site Selection. This section indicates who is responsible for site selection and the level of assistance provided by the franchisor. Ultimately, the franchisor reserves the right of final approval of the location.  
  
Advertising And Promotions. The franchisor must approve the content, appearance, and frequency of advertising executed by the franchisee.  
  
Selling And Transfer Rights. Franchisors typically reserve the right to approve the terms of any transfer and the transferee. Also, franchisors usually specify that they have the right of first refusal or to buy back a Colorado franchise.  
  
Since this is the binding contract between the franchisor and the franchisee, I always highly recommended that you hire an experienced franchise attorney to review the agreement in its entirety so you have a clear understanding of all of its contents. An attorney who is inexperienced with franchise law will not be qualified to adequately ensure your complete understanding of the details set forth in the franchise agreement.

(Source: Cory Barber, ezinearticles.com)