| |
| |
|
Investing Information |
|
|
|
Franchise Investing, Franchise Opportunities and Franchising Renewals
Have you considered buying a franchise instead of trying to start a business from scratch. Many franchise agreements are renewed every five or ten years, automatically. If you do not want to renew your franchise you need to let the franchisor know a little bit in advance as it generally states in the Uniform Franchise Offering Circular (UFOC) The franchise Disclosure Document used in franchising. Most require that you out it writing so there is no question about your intent, some require this 180 days before expiration. Others state that if you do not specifically say you do not wish to renew the agreement you are automatically renewed. If you do not want to renew your franchise at the end of the five year period, that is ok, but there are generally stipulations after termination. You cannot simply change the "Burger King Hamburger" sign out front to Joe's Burgers and keep operating (example only). You can decide not to renew but many franchise attorneys might suggest rather than just not renew; that you transfer your franchise to a new buyer and get the money out of your business that you deserve for building up the franchise. Example: If you have built up your business and you are doing one million dollars a year, just under 100,000 dollars a month, finding a buyer should not be a problem. Then you would be compensated for building the business up to that point or maintaining it at that level. Many businesses sell for a multiple of of their gross sales and a business broker can give you an appraisal. If your business is small and lets say doing one hundred thousand dollars gross a year, you may wish to sell your business for an additional fifty thousand dollars above and beyond the value of your equipment. In other words, whatever the equipment is worth plus fifty thousand dollars. (example only). The franchisor may help you find a buyer or you may find a buyer yourself, sometimes the franchisor may charge you a fee from renewal and this is quite typical as they have real costs of screening and training the new franchisee. But you need to understand that not renewing your contract will cost you money. You will lose your original investment. At the end of five years if you have run your business exactly how we have shown and you qualify for renewal, but you decide you do not want to run your business anymore, the franchisor may be glad to buy your business at a fair price or make you and offer. Some franchise agreements require that the franchisor has the first right to purchase or first right of refusal, some require both. Of course if you don't follow the franchisor's confidential operations manual and continually violate the standards of the franchise you will not qualify for renewal at all, you might be terminated completely and not able to sell your business, which in franchising we call transfer, because you do not actually own the business, you are basically leasing it and using your business acumen to derive an income for your hard work in promoting the franchisors brand name. Before you buy a franchise consult an attorney so you know what you are buying, even though most attorneys are considered scoundrels and parasites of our great nation as they steal the productivity from America and produce nothing in return; causing a complete melt down of our great civilization while destroying all we are and all we have built. Think about it. "Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Tyranosaurus Rex Everyone knows T Rex was the most fearsome of all dinosaurs. He could and did kill everything in his path for food or maybe stupid meanness. Trading Tips No 3: Online Trading and Investing: Buy, Hold, and Hope So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a few. However, having the tools and rules to trade markets successfully, year in and year out, is only half of the challenge. The Real Cost of a Bad Habit What is the value of a good habit? Think of some daily habits, like brushing your teeth, or buckling a seat belt, or flushing. All of these habits have value important to some part of life. Dumb Money Many people have, at one time or another, taken some of their hard-earned funds, and decided to put them in the stock market. These well-meaning individuals either acted on a tip they saw on CNBC, or actually believed one of those crazy faxes/emails that said XBXB @ $0. Learn How to Lose and Risk Management One of the leading traders on Chicago Mercantile Exchange, because of a single trade lost everything!For all of his years of experience and money, he had failed to master the most important concept in trading: Risk Management!Each trader seems to have his own unique way of identifying market opportunities. One buys a stock in the hopes of never having to sell it, while another might hold a position in the market for a day or even just a few hours. June 2005: Weather Forecasts for Weather Traders If Johannes Kepler, the renowned 17th century astronomer and discoverer of the planetary laws of motion, could speak from the heavenlies, he might have a few words of wisdom to share with the National Weather Service. Although Kepler's name is not normally associated with meteorology, he was quite the weather forecaster in his day. Should You Put Your Annuity in an IRA? Let me start by answering that question.. The Economy Is Not The Stock Market Several days ago, the Commerce Department reported that May's factory orders had increased by a 2.9 percent. Coca-Cola - A Value Stock? There has been much talk lately about Coca-Cola and its potential as a value stock - as it now spots a dividend yield of 2.6% (which is the highest dividend yield since the late 1980s) and a P/E or less than 21 - right at the bottom of its five-year low. Investigate Before You Invest "Through wisdom is a house built. And by understanding it is established. Angels, Are They Real? They're real, but few survive. High risk investing is dangerous to your bank balance. Beginning Investor - Investment Terms Over the course of the past two months, readers have brought to my attention that there is a steep learning curve for investment terminology. That's why the focus of this month's Beginning Investor column will be investment terminology. Scots Beat Yanks in China Bank Deal With visions of an ATM in every neighborhood in China, foreign banks and investment firms are queuing up to join the "China Club."Moneybags CommunismThe initiation fee for the "China Club" is straightforward and pure moneybags communism: invest cold hard cash in its largely insolvent state-owned banks, put your reputation on the line, reassure nervous foreign investors about upcoming IPO's, and share your risk management, corporate banking and other expertise with eager Chinese executives. Justify Social Security ... Dont Save for Retirement It is a common question when investors review their retirement plan-should we include social security benefits into our retirement income projections?It seems the closer an investor is to retirement, the more likely he/she will include social security benefits into the analysis. Younger investors, however, may feel compelled to omit such benefits. Variable Annuities You know all the articles you read about annuities that have extremely high fees? And the ones that people lose a lot of money in? Well, these are better known as variable annuities. yes, they do have some advantages. Trading Tips No 4: Technical Analysis The Holy Grail Syndrome Everyone knows that the Holy Grail of investing and trading is a myth. Finding a good technical analysis tool that will give you a trading system that wins all the time is called the holy grail of trading. When It Comes To Investing, Asking The Right Questions Can Help You Make The Right Decisions Are you ready to open your pathway to financial independence?Well you should be. The sooner the better. California Deparment of Corporations and Franchise Opportunities Law What CA Needs To Do To Address Issues in FranchisingWe should not allow anymore degradation of California through incessant over regulations in the franchising sector. No other sector of our economy provides as many jobs as franchising. Larry, Moe and Curley, Investment Brokers Larry, Moe and Curley were sitting in their favorite restaurant just off Wall Street having their usual 3 martini lunch and were discussing the day's events and their client portfolios.Larry:"I had 12 calls this morningfrom customers wanting to know why the market was going down". Reasons For Joining An Investment Club Whether you're a novice investor or an experienced stock picker an investment club may be beneficial to growing your investment portfolio. This article explains what an investment club is, why you should have an investment program and finally why you should join an investment club.
|
