Published September 2003

Where to find the franchising fundamentals

Dear BizBest: My wife and I want to start our own business, and we are kicking around the idea of buying a franchise. Can BizBest steer us toward some good franchising connections so we can learn how it works and maybe find one that’s right for us? — Starting Up

Dear Starting Up: In the field of small business, franchising is an 800-pound gorilla. About 320,000 franchised small businesses in 75 industries now account for 40 percent of all U.S. retail sales. Franchise owners (franchisees) employ more than 8 million people; a new franchise outlet opens somewhere in America every eight minutes; and about one in every 12 retail businesses is part of a franchise. Here are the top connections and resources:

Franchise facts, info and guidance
n The Washington, D.C.-based International Franchise Association, a membership organization of franchisors, franchisees and suppliers, offers vast amounts of info on franchise opportunities and development. Search its database of over 800 franchise companies with Web and e-mail links. Offers excellent (and free) step-by-step guidance for beginners, with key questions to ask, ABCs of franchising courses, lower-cost franchises and home-based franchise opportunities. The Web site has a discussion forum and sections for minorities and women. Visit www.franchise.org and click on “Seeking a Franchise” to begin. Also, check out the bookstore for helpful publications. Call 202-628-8000; e-mail ifa@franchise.org.

n Bison.com calls itself the Web site “for those serious about franchising.” Bison is designed like an online shopping mall of franchise opportunities, with featured listings, franchising news and articles for franchise buyers. Bison is based in Eden Prairie, Minn. Visit the Web site at www.bison1.com; call 952-345-8480; e-mail inquiries@bison.com.

n Franchise Direct is an online franchise opportunity directory and information resource. Browse franchise profiles, research franchise opportunities and get fresh info on franchise events. Search by industry, investment range or alphabetical listings. Visit www.franchisedirect.com.

n Worldfranchising has one of the most extensive and up-to-date franchising databases on the Web. Search for opportunities as well as expert help at www.worldfranchising.com.

n The American Association of Franchisees & Dealers, which fights for fairness on behalf of franchise owners, is a good organization to know about. Of special interest is the “AAFD Guide to Buying a Franchise” available at the Web site. Offers other publications as well as legal and financial services. Visit www.AAFD.org; call 800-733-9858; e-mail benefits@AAFD.org.

Franchise consultants
n FranNet is a network of franchise consultants (which itself is franchised) that helps match your skills and interests with the right franchise. They help would-be franchisees through the process of finding, buying and financing a franchised business. Visit www.frannet.com; call 888-322-FRAN; e-mail FranNet@FranNet.com.

Financing a franchise
n If you are considering a franchise purchase and may want an SBA-backed loan, check if the franchise is registered with the Franchise Registry, a partnership between the U.S. Small Business Administration and FRANdata. If the franchise is enrolled in this program, you could receive expedited loan processing through the SBA. The application process is straightforward and speedy. Although it’s still rather new, this program has received high marks as a timesaver for franchise buyers. Visit the Web site at www.franchiseregistry.com.

Franchising an existing biz
Thinking about franchising your own successful business? Here are three top outlets that can help:

n Francorp is the nation’s largest consulting firm for growing businesses that want to explore franchising. Visit www.francorp.com; call 800-372-6244; e-mail info@francorp.com.

n iFranchise Group works with companies seeking to franchise a business for the first time. It is a coalition of professionals in franchise strategic planning, law, operations, marketing, sales and Web applications. Call 708-957-2300; e-mail info@ifranchise.net; visit www.ifranchise.net.

n Fransmart is a good resource for entrepreneurs who want to try franchising their business as a growth strategy, offering sales support, franchise development expertise and tools to succeed. Visit www.fransmart.com or call 703-549-5332.

BizBest (www.bizbest.com) publishes independent ratings and analysis of nearly 2,000 small-business resources in hundreds of categories. Daniel Kehrer is editor and publisher. E-mail questions to dan@bizbest.com.

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