Making the Best of Your Home Equity Loan

This is a relatively new line of credit that improves on the personal loans. You are granted a loan without being asked what you will do with the money and using your home as a security. We would like to give you some considerations so that you will not find yourself in unnecessary trouble. More »

Opening a Business Checking Account Online - What to Look For

If you are starting a new business or if you have a small business already but are not happy with your checking account, a new business checking account may be in order. It goes without saying that you face a wide range of choices in banks and types of checking accounts. More »

Is Easy to Make Money from Home Based Data Entry Work?

Many people around the world so much knowledge about these devices is not destruction. In his view, mining, extraction of earth resources. Internet technology these days, the data is extracted from new resources. There are many software tools to extract data as are available on the Internet to retrieve specific data from the Web. More »

Secured Business Loans: Give Wings to your Business

Business is nothing but pure economics. If the economy is good, you gain profits and if it is in the reverse direction, you loose money. It is only for those who have the conviction and ideas, can sustain and succeed in a business. Other than these, you need to invest so that you get returns from the market. But if the finances are not available to you, grab a secured business loan. More »

Guide to Secured Loans

These loans work well for funding major financial needs like buying a house, investing in property or business, child\'s higher education, etc. More »


Tag Archives: franchising

Profits In Franchising? Buy Into A Franchise Part 2

Profits In Franchising? Buy Into A Franchise Part 2
Buying a Franchise: Finding the Time
Buying a franchise is a big commitment. The decision to own a franchise will affect the lifestyle of franchisees and their families. Before buying a franchise, potential franchisees should calculate the hours of work needed to make a success of the business. In order to run a thriving franchise, owners will have to work ‘at’ their business and ‘on’ their business. Franchisees will have to put in effort during normal hours of business operation as well as after hours.
Franchisees can work up to 13 hours per day at their business. That time might involve eight hours during the working day as well as five hours of administration work ((reviewing employee applications, bookkeeping, ordering inventory). The average US and Canadian business owner makes only $ 8 per hour (considering the hours that entrepreneurs put into their business). The following guide can help franchisees discover how much time they will need to run a franchise.
Tips about Time
. A franchisee has to commit his time in different areas of franchising.
– Training phase
– Start-up phase (1-2 years)
– Business operation (for the remainder of the franchise contract)
. A franchisee should ask early in the process about required hours.
. A franchisee should confirm the commitment with other franchisees at different levels.
. A franchisee must remember that required time will vary (12 hours, 14 hours, 16 hours,…)
Franchising does not equate to eight-hour days. Franchisees can work just eight hours but it will take them much longer to achieve their desired level of success. If a franchisee wants to sell the franchise after a couple of years, their business might not be providing the level of income expected by many potential buyers.
Franchisees do not always have the freedom (for vacations, free time,…) that the general public perceives as being the life of the franchise owner. Running a franchise takes a major chunk of time. Yet owners can optimize that time by making sensible decisions and acting wisely in the operation of their business.
Franchisees should do their homework before purchasing a franchise. They should educate themselves about various franchise models and industries. Franchisees should choose a franchise model which is complementary to their skill set. When they purchase the franchise, owners must hire, train, and empower capable staff. Such measures will save time for owners in the long term.
In most cases, franchisees can have a partner to share the business responsibilities. Owners must remember, however, that franchise systems have a set of restrictions dealing with partnerships. The standard restriction requires that a partner must maintain 51% ownership (controlling interest) – whether that partner works in the business or is a silent partner. There are also restrictions around the legal structure of partnerships. Since there is flexibility around this issue, franchisees can work with their franchisor to work out the details.
Bringing in a partner may free up some time for a franchise owner. Yet the general rule about partnerships within franchise systems is the same rule that franchisees should always keep in mind. Make an educated and informed decision!

Richard Verkley, the Go-to Franchising Man, is the franchise business expert to go to for all your franchise business opportunity needs. Consistently number one in new franchise sales within numerous small business and franchise opportunities, Richard is renowned worldwide for his expertise in the franchising industry. During his 23 years of experience with every level of franchise opportunity, Richard has received numerous awards including International Master Licensee of the Year and Global Master Franchisee of the Year. The creator of a global business coaching franchise, Richard Verkley is the worlds choice for franchising information and advice.

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Franchising Solicitors and The Code of Ethics

Franchising Solicitors and The Code of Ethics

As with several other areas of the law, franchising is governed by a code of ethics. This code of ethics is known by specialist lawyers and those people whom wish to participate in a franchising agreement.

This article looks at some of the key points of the code of ethics that many specialist solicitors follow when providing franchise legal advice.

In the UK, the code of ethics is based on the code that was developed by the European Franchise Federation. This code has then been interpreted, extended and applied by the British Franchise Association [ BFA]for use in agreements relating to the UK, and all of its member franchise solicitors need to take this into account on any agreement they work on.

Interestingly, the code of ethics describes franchising as involving the marketing of technology, services and goods through collaboration between a franchisor and franchisees. This collaboration must be legally and financially separate and it involves the parent company giving the franchisees the right to use the relevant trade name and ‘know how’ associated with the business within a framework that should be laid out in the initial agreement.

The code of ethics also states that the parent business must meet certain conditions before it can start trying to recruit franchisees. Your franchise solicitor [if they are a BFA member] will be able to explain this in more detail, but essentially businesses must have already been operating successfully for a reasonable period of time, the owner must have the right to the trade name and intellectual property, and they must be willing to provide franchisees with support and training both initially and for the life of their agreement.

In terms of the franchisees, the code of ethics states that they need to be dedicated to the growth of the business, they need to be willing to supply the franchisor with operating data so they can determine how well they are performing, and they must not disclose the ‘know how’ of the business to any third parties at any time.

Both parties are also required to act fairly towards each other and, wherever possible, settle disputes with direct communication and negotiation; franchising solicitors will be able to give you more information about the precise requirements and conditions for each party. The code of ethics also makes it clear that any recruitment material must be unambiguous and that franchisees should be chosen according to their capacity to run the business successfully.

All franchise agreements need to comply with the code of ethics, national law and European law. The agreements must also make sure to include certain information, such as the rights of both parties, what they are both agreeing to, the length of the agreement, payment arrangements and provisions for termination of the agreement.

Bonallack & Bishop are solicitors offering expert franchise legal
? If you want more information then contact their franchise solicitors today. Senior Partner Tim Bishop is responsible for all major strategic decisions.

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Buying And Financing A New Franchise In Canada? What Franchising Loan Info Do You Need?

Buying And Financing A New Franchise In Canada? What Franchising Loan Info Do You Need?

Financing a new franchise. Simple? Difficult? Impossible ? Our answer would be ‘ simple ‘… never, not really. Difficult… we don’t think so, you be the judge. Impossible? With the right information and assistance, absolutely not.

So what in fact does a Canadian franchisee need to know about funding a franchise business in the Canadian marketplace? A good start are some of the basics – we’re going to assume you have a general knowledge of what franchising is , with an emphasis on the pros and cons of purchasing what is hopefully a proven business model in your chosen industry vertical . That vertical might be QSR (Quick Service Restaurants) (boy are there a lot of those!) service oriented businesses, the growing healthcare industry… and on it goes.

In Canada ( and we’re assuming south of the border also!) your personal financial situation as well as you related experience play a key role in the overall financial plan you will undertake to successfully complete a business financing .

A great start is to prepare a personal net worth statement; simply speaking it’s a basic form that shows what you have, and what you owe. The difference is known as your personal net worth. Hopefully what you have is more than what you owe; otherwise your chances of financing success are somewhat slim, if not non existent.

A business plan prepared by yourself or an advisor will hopefully show you have thought out your cash flows and profit potential. Everyone wants to be a ‘ winner ‘ in franchising, that’s understood, and it seems only common sense that the more successful a franchising brand you attach yourself to will translate into financial success.

Don’t forget also the royalty aspect of your planning. Royalty fees when you purchase a franchise typically tend to be in the 6-8% range, and those fees should be carefully factored into your overall profit and cash flow scenario.

The old adage that the 3 most important things in real estate are location, location, and location! If your business is dependent on retail / consumer traffic that’s important.

Does your lease and location factor into your financing? Yes, it does, as it’s critical that your lease have a term that appropriately matches the term of your franchising loan. Simply speaking, don’t expect a 7 term loan if your premises lease only has 3 years left and is not renewable in your favor.

The amount that you are required to invest as your portion of the business capitalization varies. It depends on a couple basic factors. Those factors are as follows:

1. The minimum amount that might be required from the lenders perspective

2. The minimum amount that might be required your franchisors perspective. This is an especially important number because it is usually drawn from their experience as to what amount of capital units in their chain require to be successful.
3. A third factor is the amount of risk you personally are willing to take in your new franchise venture. In this case ‘ capital ‘ is what we tell clients could be a double edged sword. For instance, you could put up 100% of the funds yourself. In that case you have little debt risk, but have a lower return on investment. Alternatively borrowing without a decent equity position puts you at the mercy of your franchise lender when things go wrong, as they sometimes do. And need we mention that every business, franchise or otherwise needs a working capital cushion.

It may seem the wrong way of looking at it, but as a Canadian prospective franchisee you might well want to take some time to understand why franchisees fail, and what you need to know to buy and successfully finance a new franchise in Canada.

The importance of a trusted, respected and experienced Canadian business financing advisor can’t be underestimated. Whether you are buying a new unit in the system, or purchasing a resale from an existing franchisee understand your reward, and risk.

Stan Prokop – founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years – has completed in excess of 80 Million $ $ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

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Is Canadian Franchise Financing A Do It Yourself Project? Franchising In Canada With Success

Is Canadian Franchise Financing A Do It Yourself Project? Franchising In Canada With Success

There seems to be a lot of ‘ DYI ‘ out there today, that being the acronym for Do It Yourself of course. So we were thinking, is it possible that Canadian franchise financing for the purchase of your chose franchising endeavor in Canada is a ‘ DYI ‘ project?

Let’s talk about a lot you can do on your own, (as part of that ‘ dyi ‘) and we’ll also focus in on some key areas where expert assistance is highly recommended!

Our focus is of course on financing that franchise; we’re assuming you have already picked your business of choice. A solid first start is to have a realistic discussion with your franchisor around their knowledge and assistance in the area of helping your franchising project in Canada. It’s the policy of some franchisors, certainly not all by the way, to develop financing guidelines for their units. This might be in conjunction with a preferred program via a financial institution, or, as importantly, their own experience in levels of investment, capital, and working capital to acquire, run, and of course grow the business.

If there is one caveat here we simply say to clients that you should not infer any sort of guarantees that your financing loan or package will be approved simply because a program exists that you might potentially fit into. Our own experience though is that certain financial institutions target many successfully larger franchise chains and will go out of their way in ways we can’t mention to get a transaction completed on your behalf. (Think hockey/donuts as an example! enough said!)

Getting back to DYI though, a business plan, either prepared by yourself or with input from you is critical. This can easily be accomplished with help from the franchisor, your accountant, or an experienced Canadian business financing expert in the area of franchising in Canada. We forgive clients for thinking they are out of their league in prepared a business plan and cash flow, but it’s not as hard as you think.

The reality is that if you can help prepare and understand and present a plan your chances of financing approval increase significantly.

DYI also can be taken in the context of looking at your own personal investment in the business. Your choices are of course 100% outright cash purchase (not recommended by us), 100% borrowed funds (not recommended, and oh by the way, impossible!), and the real world solution, an investment by yourself with some real world franchise financing for the balance of your purchase.

DYI with respect to your owner equity is anywhere from 10- 50% per cent in Canada. Franchisees should spend part of their DYI time in assessing their personal net worth, their liquidity, and how they will raise and contribute their portion to the franchise investment.

We’ve shown that a good part of your Canadian franchise financing journey can in fact be a DYI process. Where you win big time is by using, where necessary the services of a good accountant, franchising lawyer, and an experienced credible and expert Canadian business financing advisor to complete your purchase successfully, under terms that make sense for your situation.

Stan Prokop – founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years – has completed in excess of 80 Million $ $ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :