Franchise
Versus an Online Business
The benefits for the online business
What is a
franchise?
A franchise is defined as a business that is authorized to sell or
distribute a company’s goods or services in a particular geographic area. When you open a franchise, you own
the business and its infrastructure along with the right to use the franchising company’s brand, trademarks,
and promotional materials. In most cases you also own the exclusive rights to sell the product in your
franchise area.
In return for these rights, the franchisee
(you) agree to pay an up front fee to the franchising company. This fee can is usually significant, ranging from
$50,000 to over $1,000,000 and covers a variety services that are
provided to you by the franchising company. There is often an ongoing "franchise fee" that is paid on a monthly, quarterly, or annual basis.
What is a business
opportunity?
Generally speaking, a business opportunity is a Ready to go
"Business in a Box" that allows the buyer to start a business immediately usually from the comfort of their
home. Training, Marketing, and Mentoring are usually part of every good System. Typically the return on
Investment is much quicker and the ability to make 6 and 7 figures a year can be
achieved.
What are the advantages & disadvantages of a business
opportunity?
An advantage of
business opportunities is that they are less restrictive to operate than a franchise. They typically cost less to
purchase and rarely require ongoing franchise or royalty fees. Also, business opportunities don’t tend to limit the
business owner’s selling area or require strict operational standards.
What are the advantages & disadvantages of a
franchise?
Without a doubt, franchises are
more costly than business opportunities in both the upfront fee and the ongoing royalties. However, in exchange
the franchisee receives valuable services such as employee training, promotional benefits, trademark rights,
etc. The geographic and operational restrictions placed on franchisees can also be viewed from a value-added
perspective. Although your franchise may be limited to a certain geographic area, you will be the exclusive
seller of your goods and services within that area – a guarantee that business opportunities cannot offer.
Likewise, the operational standards required by many franchises provide the franchise owner with a proven and
established system of quality control. You would likely have implemented similar standards on your own. With a
franchise, the work has already been done for you.
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A Franchise Opportunity
Provides:
• UFOC disclosure information
• Brand recognition
• Marketing expertise
• Training program
• Site selection management
• On-going support
• Proven processes
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A Business Opportunity
Provides:
• No ongoing
royalties
• Usually lower investment
• Company supplied advertising
• Intensive training program
• No Territory Restrictions
• Freedom to make choices
• Proven system of operation
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Franchise
operations are among the most successful entrepreneurial ventures, boasting a 95% success rate. The
reason for this is quite simple:
When
operating a franchise, one is given, by the corporation selling the franchise, a proven business plan to
follow, and a set of standard operating procedures to adhere to. The corporation requires the franchisee to
maintain a high level of accountability. If certain standards are not met, the corporation can revoke the
franchise license, and take back control of the business. It is the business plan and accountability that
provide for this high success rate.
However, franchises require a hefty investment to begin, and
almost always require a serious time commitment of 50-70 hours per
week. For
those looking to earn an additional income, or reclaim their time, a franchise simply is not an option.
Both the investment and time requirements defeat the purpose.
Home-based
business opportunities typically require a significantly smaller financial investment and allow for time
flexibility. And, as the term, 'home-based,' denotes, the business is run from the home, rather than a
secondary location. Home-based business opportunities also remove the need for and cost of business space,
employees and their benefits, equipment, and inventory. Finally, a home-based business provides the owner with
excellent tax advantages, whereas the franchise requires the owner to pay more in
taxes.
Statistically though, the success rate for most home-based business operations have
traditionally been less.
So why, if a
home-based business is the better solution for time and financial freedom, aren’t more people investing in
these proven systems? Because, most home-based business opportunities lack the two success factors that the
franchise possesses.
A proven
business plan Accountability. Couple that with the fact that not everyone is a natural at prospecting and
selling, and the home-based business failure rate makes perfect sense.
This Online
Business Opportunity has recognized these failure factors, and has begun to address them head on. Imagine
having the best of both business models... A home-based business, that requires a realistic and affordable
financial investment, one that is flexible with regard to time commitment, and has a solid business plan, born
out of 19 years experience in the internet marketing industry, and to top it off, a high demand
product.
The Advantages of the this Online Business Opportunity vs. Owning a
Franchise
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Requires a lower initial fee than a
franchise. Although the number of low-investment franchises has increased, the fee to
get into this Business opportunity is still considerably lower. The Start up cost is around
$1500. Franchise Fees start at around $50,000 and go up to $1,000,000 and of course you will
need additional funds just to cover marketing, advertising, and salary for your new
employees.
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No ongoing
royalties. With this Business opportunity, unlike in a franchise, there are no ongoing
royalties to pay to the seller. The profits are all
yours.
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A proven system of operation or
product. The Proven System provides on-going support and all members will be
assigned a personal mentor. The systems serve to maximize efficiency and returns and minimize
problems. It's simply a matter of passing on experience, still the best teacher. Whether they
admit it or not, most people like having their hands held once in a while. We help the new
Members over the bumps. Many people like this idea of safety in
numbers.
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Intensive training
programs. In
any new business, a lot of time and money are consumed during the learning period. A good
business opportunity venture can eliminate the majority of ineffective moves through an
intensive training program. We believe in on-going support and conduct up to 17 live
conference calls each week for the purpose of training and supporting team
members.
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Professional advertising and
promotion. Most small businesspeople don't spend sufficient money on advertising. When
they do, their efforts are often poorly conceived and inconsistent. This Online business
opportunity provides a fully automated system. All of the Marketing materials are provide.
This includes multiple websites and flash movies that will perform 95% of the Selling,
Telling, and Explaining. We even provide Company led "live" conference calls so that new
members can learn about the opportunity and its highly rated
product.
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Ongoing
counseling. This Business Opportunity offers support not only through training but also
through personal mentoring from a staff of experts who offer assistance that no independent
could afford.
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Purchasing
power. Tremendous buying power and
special buying techniques can bring products, marketing, and exclusive leads at a much lower
cost than an independent could ever get.
Compare the high start-up
costs of a conventional business enterprise or Franchise, against that of this
business
• Robeks Smoothies -
$325,000
• AAMCO Franchise - $193,000
• Choice Hotels (Comfort Inn) -
$2,000,000
• Molly Maid - $110,000
• Tax Centers of America -
$28,950
• Friendly Mobile Computers -
$100,000
• Coffee Beanery - $350,000
• Budget Blinds $69,950
• Fantastic Sams - $115,995
When comparing businesses, you should also take into
account:
1. The hours you would be required to put in to the business,
2. Their respective
ongoing weekly running
costs, and ... 3. The time
it would take to fully recoup
your initial outlay.
The above randomly chosen businesses may
well be very good ones, but you will be very hard pressed to find any other business
as immensely
profitable as this.
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