Franchisees Find A Template For Success

Fort Worth Star Telegram:

Norma and Henry Rangel of Mansfield have thought about starting their own business for years.

Norma is a homemaker and Henry sells auto parts. Married for nearly 20 years, they have wanted to do something together that they could enjoy and would support their family.

They took a major step last week by attending a franchise seminar in Arlington to learn about running a business. ‘I’m afraid to get into something - that’s why I want to learn more,’ said Norma, who has been out of the job market for a decade.

The Rangels and other potential business owners have many franchise options to investigate. Industry experts say it’s a buyer’s market.

More than 1,200 new franchise concepts have appeared in the past 4 years. Last year alone, nearly 30,000 franchise outlets opened nationwide.

Fast growth brings opportunity and risk. Investors, or potential franchisees, must be more diligent in researching a sound business model. Franchise companies, or franchisors, face more competition to recruit investors.

Franchising draws people who want to be their own boss but also want to get a little more help than they would starting a business from scratch. People also may be attracted to the industry success stories: Blockbuster, McDonald’s and Hilton hotels are examples of franchises that have become household names.

In franchising, a person buys the right to run a business under a company’s trademark. The franchisee agrees to follow the company’s business system and policies - from staff uniforms to paint colors - in exchange for training, help selecting a site, product supply and marketing materials.

If you’re interested, be ready to invest less than $20,000 for a home-based service business to more than $20 million for a hotel.

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