Most 5 star CPA Google reviews in Canada
Helping Canadian businesses beat the odds!
When considering franchises, entrepreneurs should keep several things in mind including and especially the increased fees it takes to run them. In addition to pay a franchise fee on top of the fee it takes to buy that business, entrepreneurs will also be paying a monthly franchise fee to the franchise or in order to keep operating under that name. This franchise fee as well as royalty fee must taken into consideration when buying the business to see its viability. Accountant recalls an instance where entrepreneur asked them to review what they thought was a too good to pass up the opportunity, and after reviewing the royalty fee payment schedule, that accountant determined that the return on investment was not high enough to justify the risk. That entrepreneur dodged a huge bullet and the reason it wasnít a good business opportunity was simply because of the royalty. Once business owners can understand this aspect of franchise ownership, theyíll be in a better position to make a decision on which franchise is their best option.
When they are considering franchises says Edmontons business for sale, there first step should be reviewing not just one franchise theyíre interested in, but comparing multiple. Edmonton business for sale recommends having three considerations at any time about the franchises. This will help entrepreneurs be objective, as well as see the differences between the franchises and what things they will like and what things they may not like you. This can help them narrow down the list of franchises that will be the best fit for them.
Once a business owner has decided on which franchise their most interested in, they should proceed with talking to various business owners of that franchise in order to get a sense of what itís like to own franchises. They should talk to a wide variety including large stores small stores new stores and all stores in order to get some good ideas about how business owners feel about owning those businesses.
Often, entrepreneurs are looking for risk-free ways to become business owners says Edmonton business for sale, and while risk-free business options donít exist, franchises can be a great option for some entrepreneurs, because of some stats suggest that franchises have a higher degree of success in business. Industry Canada says that 50% of all businesses that open their doors, will close them within five years, however only 14% of entrepreneurs who own franchises will close the doors to their business in five years. This may be due to a number of reasons, but entrepreneurs can understand that franchises are at least a good option if not a better option than traditional businesses. Franchises can be great options for entrepreneurs who donít have experience operating businesses, because of the processes that come with owning a franchise. They have created systems and processes on how to operate their business that can be very easy for entrepreneurs who have never owned a business before to follow.
If entrepreneurs are truly serious about owning a franchise, they have a big job ahead of them on choosing which franchise is going to be their best option says Edmonton business for sale. The reason for this is because there is literally hundreds of choices. Not all franchises are created the same as well cautions Edmonton business for sale. Entrepreneurs need to know that those processes and systems are not the same in every single business. One might think of McDonaldís as an example of an extremely highly processed franchise. They have processes for everything from how to cook their food, how their building books, how to great customers, how to package their food. In McDonaldís that someone walks into no matter what country is going to have extremely similar experience. Not all franchises are going to be the same and what processes they offer. However entrepreneurs also need to take into consideration says Edmonton business for sale that the more processes that are involved in a business, usually results in how expensive the franchise fees are to buy that business. The more processes the more the franchise fees are, however that also often correlates into how successful that franchise is. Entrepreneurs need to consider if they are interested in paying a higher fee for more processes that hire success rate, and if that entrepreneur wants to customize many options, Edmonton business processes may be franchise ownership is not their best option.
Once an entrepreneur has decided which franchise they are most excited about owning, their next step is to get a unbiased view and opinion by an accountant. A chartered professional accountant can help entrepreneurs test the reasonability of the numbers, we will be able to review finances but also the franchise agreement, payroll numbers and royalty fees to see if this business is truly viable for the entrepreneur.
