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At
one time or another many of us dream of opening our own business.
One of the most established methods of starting a business is the
franchise. Well-known names such as McDonald’s, Mini-Maid and
Supercuts represent the potential for success in this business
endeavor. What exactly is a franchise, and should an aspiring
entrepreneur consider opening one? These and other questions are
answered in the book "Franchising for Dummies," by Dave
Thomas and Michael Seid.
According
to the authors a franchise "is a special type of
license" that grants use of a franchise’s name and marks,
provides assistance or control over the operation of the
franchise, and generates income for the use of that franchise.
In
this book the reader will learn everything on the franchising
business from two of the field’s top experts. Michael Seid is
the founder of Michael H. Seid and Associates, a consulting firm
specializing in the franchising business. Dave Thomas is the
legendary founder and owner of Wendy’s Old Fashioned Hamburgers,
one of the most recognizable brand names in the world. Started in
1969, the hamburger chain today has more than 5,600 restaurants
across the globe.
Their
book is divided into six integral parts that explain the different
aspects of the franchising industry. In "Just the Facts:
Franchising Basics" the authors describe the concept of
franchising, the different opportunities available, raising the
necessary capital and the various legal issues.
"The
Start Up: Establishing Your Franchise" and "A Well-Oiled
Machine: Operating Your Franchise" discuss franchise
agreements, the negotiation process and the franchisor/franchisee
relationship. Other key issues involve employee training,
establishing a site and attracting new customers. Thomas’
real-world experience is invaluable as he underscores his advice
with actual examples involving his Wendy’s Hamburgers chain.
To
maintain a successful franchise one must always consider the
potential for growth and expansion. "Times Change: Deciding
What to Do Next" offers insight into the different strategies
for growth, including acquisition of other franchises or brands
and how to renew your license agreement.
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It
is important for any entrepreneur to understand how franchisors
operate and how they support their license holders. "But I Want
to be a Franchisor!" explains the criteria for selecting a good
franchise operation and the feasibility of success.
One
of the most important sections of the book is "The Part of
Tens," a treasure trove of practical information taken from the
authors’ many years of experience. The 10 keys to franchise
success raise issues regarding money, family, employees, customers
and your community. Another important passage is the 10 questions to
ask yourself before buying a franchise. Reviewing these questions
and answering them honestly will reveal whether franchising is a
realistic business opportunity to pursue.
Inside
the book’s cover is a list of sources for franchising information,
what to do before you decide to become a franchisee and Dave Thomas’
"ten nuggets of experience gained in the franchise
business" (such as "remember that profit is not a dirty
word" and "give something back"). Rounding out the
book are appendices containing a series of questions to consider in
reviewing a franchise opportunity and a list of definitions of words
and phrases used in franchising.
"Franchising
For Dummies" is an outstanding introduction to the business of
franchising. According to the authors, the book "is perfect for
both novices and experts." In the introduction they state that
their goal "was to help prospective franchisees make the right
decision on whether to become franchisees…and to provide
information to help businesspeople determine whether franchising is
a good expansion strategy for their companies." Thomas and Seid
have succeeded on both counts and more. This book is highly
recommended to anyone who is considering opening or expanding a
business franchise.
For
more information, visit the Public Library at 725 Pekin St. or call
217-732-8878.
[Richard
Sumrall,
Lincoln Public Library District]
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