Denver Part time Franchise Opportunities

There are many Denver franchise opportunities for people who would like to work part time. They range from consulting franchises to childcare businesses.

Many people can not afford the luxury of a full time business or employment. Rather then seeking a part time job, they would rather be in control of their lives. The problem with most businesses is that they are only profitable if run full time.

This begs the question what are the characteristics of a part time Denver franchise business? The answer is that a part time franchise needs to have a blend of the following ingredients:

1) Low overheads

2) Flexible working hours

3) No need for large premises

4) Few if any employees

5) Minimal requirements in terms of equipment

6) No stock or minimal stock requirements

So what types of Denver franchises are suitable for people who have maybe 20 hours a week to spare and would like to be their own boss? After spending time researching the market, I have found these niches that can satisfy the above requirements:

1) Business cost management - a franchisee is trained to visit companies and analyse areas where cost savings can easily be made. The franchisee makes a percentage of the savings. Many companies are so busy running their companies that they overlook many areas that, with a little effort, could save a lot of money.

2) Financial Solutions - This franchise opportunity arises because people simply don’t have the time to analyse all the options available. The franchisee arranges loans, mortgages & pensions for people by analysing what's available on the marketplace and producing a report with a quick comparison.

3) Car Valet - a franchisee - well equipped - with a van, powerful cleaning equipment and the right chemicals can easily clean 6 cars per hour. It doesn't take a genius to realise that a healthy income can be made by doing work professionally that other people don't want to do!

4) Vending franchises - With this business opportunity, the franchisee has to persuade businesses with healthy foot flow to keep a vending machine on their site. The profits are then split equally between the supplier, franchisee and the site provider.

5) Childcare franchises - They do what they say in the title! Many people are caught trying to take care of their children who happen to finish school a couple of hours before they finish work!

I have named only a few franchise opportunities, but in reality they are many and varied. Other options include therapy, cleaning and food delivery franchises, and pet care franchises. Just like anything, a franchise will take time and devotion to achieve success. Whether you purchase a part time or full time franchise, if you are committed - you will succeed!

7 Huge Advantages to Franchising

Franchises seem to be a one of the quickest ways to set up your own business without having to form your own business plan and start from scratch. As a matter of fact when I hear folks complain about franchising fees that they have to pay to maintain their position in a franchise organization, I often think to myself of how ignorant they must be about the costs of starting their own business and the risks associated with self-employment. Here they have an opportunity to step into a business that is already functioning and probably successful; they will not have to deal with every day struggles of the small new business. I have never opened a franchise; I doubt that I will as I do not think that I would fit well inside the framework of a franchise. Here is what I see as some of the advantages of owning a franchise from a non-franchisor mindset:

Advantages to Franchise Businesses:

1. As I said above, the business is based on an already successful business idea that has been through the ups and downs of a new business concept. You can decide whether or not you want to purchase the franchise based on past performance before ever committing yourself to the business.

2. Support: The franchise will give you support in your new business venture which would include training, help in setting up your business and probably a manual for employees and running your business.

3. Recognition is probably one of the biggest advantages that I could think of. If you are purchasing a brand new company franchise (i.e. Cold Stone Creamery, etc) then you may not get immediate brand recognition. In most cases when purchasing a well known franchise there is immediate recognition. Also, you the franchisor benefit from the franchise company’s advertising and marketing. So I would think that completing your research on the company’s marketing plan would be a must.

4. As a franchisor you also benefit from the communication with other franchisees and the franchise itself. Being that I have always been self-employed we accomplish the same thing by forming peer groups; however, we always have obstacles in sharing information because how much is too much. These peers are usually my competition. In a franchise you will be able to share information and communicate what is working and is not and be on the same playing field.

5. Exclusive rights: As a small business owner, I wished that I had exclusive rights to my business in my territory. As a franchisor, the franchise corporation will usually give you exclusive rights to a territory which would disallow any other competing franchises to enter your area.

6. Vendor relationships have already been established for you. This is huge because you do not have to go out and share the same risk as a small business would in developing solid vendor relationships. This has all been done for you already. A small business must go out in the business world and develop their own relationships; often times the wrong vendor relationship can cost a lot of time and money.

7. Here is probably the biggest advantage. Financing. Several franchise corporations offer financing and if they don’t most banks are more inclined to lend money to buy a solid franchise rather than lend the money to an unknown brand new business start up.

I have always owned my own business and started it from the ground up. Since I have been reviewing franchises lately, and researched them to find some good ways to diversify my financial portfolio, I have been thinking a lot about the benefits to owning a franchise. I know there are many draw backs, but a franchise seems to make a great deal of good business sense to me. In my next posts I will be talking about the disadvantages of owning a franchise as well. After having completed research on several franchise opportunities in Denver, these are the definite advanatages that I could come up with.

Benefits of Owning A Denver Franchise

The benefits of owning a Denver franchise vs building your own business from the ground up are many. We've listed a few here that you should find interesting...

Established Track Record
As a Denver franchise buyer, you become part of a proven system of operation. Your franchisor offers a concept with products and services that have sold successfully. You have history to learn from and to help you predict your own future.

Faster Start Up
You have a short learning curve as a franchise owner, because you have assistance from a franchisor with lots of experience to draw upon in starting other new operations successfully. You and your personnel often get on-the-job instruction.

Less Risk
Your chances of failure are lower with a Denver franchise operation, because of the experience, expertise and proven resources that support you in your business. Franchises succeed at the rate of 90%.

Low Investment
Most franchises keep their front-end investment demands low, which favors new entrepreneurs. Moreover, a franchisor will often help new franchisees borrow by facilitating arrangements with lending institutions, which look positively on lending to franchisees because of their high success rates.

Purchasing Power
The group purchasing power of franchisees can make a big difference in your costs of doing business. Large buying groups can typically demand significantly lower prices on goods and services.

Name Recognition and Brand Awareness
With an established Denver franchise, you get the benefits that occur from marketing an established brand of products or services. With a new franchise, you can grow and contribute to the creation of the brand.

Business Support
As a franchisee, you will generally receive valuable, ongoing business support, including site selection, training, recipes, marketing, new technology and more. Franchisers will assist you in developing a business plan, in learning the best ways to hire and manage personnel, and in how to profitably manage your facility.

Hopefully you can see the benefits a Denver franchise opportunity provides. The time and energy of developing your own business has already been spent by the franchiser. Save yourself headaches and look into a franchise.

Growing your Denver Franchise

Betty Otte, SCORE Counselor

When most of us think about franchises, we are referring to the business-based franchise like the top 500 franchises published in Entrepreneur magazine each year. Entrepreneur’s 75 different categories range from automotive to services, but they all have one thing in common—a systematic method to deliver services or products.

You, the franchisee, have supported this system with your royalties and initial purchase price and it now will be one of your biggest assets as you decide to grow your business.

Since the systems for the franchise are already in place, your biggest concerns as you grow your business are:

• Finances –having sufficient capital and resources

• Location – for many businesses, location is critical.

• Employee training

• Culture transition

Employee Training and Culture Transition
You have worked the business in the first Denver franchise location, so those employees have translated your style into their work habits. They have seen by example how to handle a customer. To expand, you are required to hire people who will accept your style and be able to train other employees in that culture without your presence. Turnover of employees is expensive and time-consuming. Finding the right managers who can train and translate your wishes should be high on your priority list before taking on that second location.

How will your role change? Will you still manage the first location with a manager in the second or will you try to manage both? Trying to be in two places at once is difficult if not impossible. Will you put a manager in each location and personally tackle marketing and public relations? Can you relinquish control? It may be harder to do than you think.

Due Diligence
Be sure you exercise due diligence and investigate the following before you decide to expand:

1. Figure out why the franchisee is selling. If it’s because the Denver franchise is not successful, you need to figure out why. Lack of motivation or self-discipline, poor territory, inability to keep employees—there could and will be many reasons. You have the advantage of knowing the system so it is easier to differentiate perception from reality.

2. Protect yourself from liabilities. You will want to do a net asset sale to protect yourself from liabilities connected to the present owner with an indemnification clause. Even though s/he may have given you several reasons they want to sell, you may never know the true reason, so make sure to protect yourself from any outstanding legal actions.

3. Check financial statements. It is mandatory to check out the owners financial statements for 5 years or as long as they have been in business. What has the growth pattern been over this time period? Look at the sales tax returns and the income tax returns. It is easier to determine accounts payable, but equally important, in some businesses, is the accounts receivable. Often last minute games are played with receivables.

4. Can you assume an existing lease? It is important to check with the landlord if you are taking on an existing location for your Denver franchise opportunity. Many resources are available online to define due diligence requirements for the purchase of a business. Read one from SCORE.

5. Right of first refusal. In many franchise agreements, the franchisor has the right of first refusal. That means if the existing franchisee has someone who is willing to purchase the business, the franchisor has first right to come in and make the purchase at that price.

How to Grow the Franchise
There are two basic ways to grow your franchise:

• Purchasing another territory. One way to expand is to purchase a territory from another franchisee. The same due diligence must take place here, however, as with the purchase of any business.
  

• Purchase more territory or locations directly. Exercising this option means you will adhere to the same requirements published in the Uniform Franchise Offering Circular (UFOC) for the given year. UFOCs need to be renewed each year within the state of the sale. California and New York are the two states with the strictest requirements. More on UFOCs.
  

In many ways, growing a franchise is easier than growing an independent business. Take advantage of the network of other franchisees in the system. You all share a common goal and work within a given framework. Call them for marketing, PR and management tips.

Multiple unit management is a very different challenge, but it comes with many rewards. You, the owner, will change what you do, but your philosophy will double and triple with each new growth step. Make it the fun that it really can be. Seek help from your nearest SCORE office or online counselor. SCORE counseling is always free and confidential.

Selecting the Right Franchise

Betty Otte, SCORE Counselor

In Part 1, you checked out your franchise options and decided to purchase a Denver franchise. You have decided which one of the 75 franchising industries is right for you and have narrowed it down to maybe three or four different companies. The big decision now is to select the one franchise that is right for you.

Business demands that we think with our head and our heart, but when doing research, the head must take the lead. You are risking your money, your time and your career, so the choice you make must be congruent with your lifestyle and needs. Researching each option is the key. Here are five simple steps to help you.

1. Contact the franchisor directly and fill out a preliminary application form.
This tells the franchisor you are serious and a viable customer for his franchise. You will likely have a series of interviews with the franchisor.

2. Receive and review the company’s Uniform Franchise Offering Circular (UFOC). Once the franchisor believes you are serious, he will send you a copy of the UFOC which contains 23 important parts to review. The UFOC very clearly defines what the franchisor will do for you and what s/he expects of you. You will probably want to have an attorney review the UFOC; however, it is crucial that you understand every statement in each of the 23 parts.

The Federal Trade Commission (FTC) protects franchisee prospects up until the point of sale, but once the franchise is purchased, the FTC looks upon the business as any other start up, so the UFOC becomes vitally important. More on the UFOC.

3. Visit locations and talk to existing franchisees. This vital step will help you to determine the level of satisfaction of other franchisees in the system. You need to know if the franchisor delivers his promises and research is the best possible way to find that out. In addition, it gives you a chance to get an inside look at the business to figure out if you can see yourself in the Denver franchise.

4. Find answers to important questions. What is the initial purchase price? What are the royalty fees? What kind of training and ongoing support is provided? You will most likely be expected to participate in a national marketing budget. What percent of gross is expected? How often do you get new marketing materials? Do you have sufficient funding for ramping up and maintaining until profits begin?

5. Research the brand and operating system. Will customers gravitate towards your product or service because they know the brand? Has the franchisor provided an operating system which has been proven successful and is easy to learn and use? Will being part of the franchise system help in competing in the market place? Will you be a part of a growth industry of these Denver franchise opportunities?

A good franchise situation is extremely valuable, but you must do a lot of research before you filter out the good, bad and ugly. The good can be very good and a very wise business decision. Remember that SCORE has over 10,500 volunteers ready to help mentor you, many of whom have franchise experience. Seek help from your nearest SCORE office or online counselor. SCORE counseling is always free and confidential. Good luck in your journey.

Should I Buy A Denver Franchise?

written by: Betty Otte, SCORE Counselor

When most of us think about Colorado franchises, we are referring to the business-based franchise like the top 500 franchises published in Entrepreneur magazine each year. Entrepreneur’s 75 different categories range from automotive to services, but they all have one thing in common—a systematic method to deliver services or products.

Franchising is not for everyone, but for an individual who has limited business experience or someone who enjoys working within an established system, franchising can be the best possible path.

Franchising is simply a method of distributing products or services, with at least two levels of people involved. The first is the franchisor, who lends his trademark or trade name and a business system. The other is the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system. The contract binding the two parties is the “franchise,” but that term is often used to mean the actual business that the franchisee operates.

Do You Have What It Takes?
Before you go into any business, Denver franchise or not, it is important to first ask yourself these important questions:

• Do you have strong motivation and drive to achieve success?

• Do you have confidence and enthusiasm for the product or service you will be representing?

• Are you able to motivate yourself and others and train employees?

• Do you have experience in the industry?

• Are you willing to promote your business and the brand?

The Franchise Lifestyle
Figure out if a Denver franchise lifestyle fits into your own lifestyle. Do you have the necessary support system to open this Denver franchise opportunity? Does your family support this decision? Do you have an accountant, banker and attorney who will assist you in your start up and growth phases?

The Importance of the Brand
In the franchise world, belonging to a system gives you, the franchisee, a competitive edge, which partially compensates for the cost of being in the system. The main value in franchising is the identity related to the brand. McDonald’s is the largest franchisor in the world with over 31,000 units. Due to consistency of product delivery and global advertising, McDonald’s has a major advantage over, say, Joe’s Diner.

It is important to remember that since the brand’s value is more important than anything else, including the service or the product, the customer’s loyalty is to the brand, NOT the individual franchisee. No consumer walks into a Dunkin Donuts franchise because they know the owner. They know Dunkin Donuts. What this means is that within a franchise system, you have to play by their rules. You couldn’t open a McDonald’s and sell pizza, for example.

Your success as a franchisee is based on your willingness to work with in a pre-existing system, and help to build the value inherent in the brand. This kind of a business is not for everyone, so you have to be honest with your ego on this one.

Choosing a Franchise
So let’s say you are willing to work within a system promoting their brand or service and you are not concerned that customer loyalty is not directed to you personally. Now what? What kind of business should you think about?

The choices can be overwhelming. Approximately 45% of all retail sales are franchise driven—everything from tires to laser hair removal. One out of every 12 businesses is a franchise, with a new outlet opening every 8 minutes. In addition, there are over 75 industries to choose from, with many of those industries having dozens and dozens of options. How do you decide?

Go back to your personal likes and dislikes. Don’t gravitate to fast foods just because you already know how to make a sandwich. Some top industry categories include auto, children, cleaning, exercise and chicken. Find an industry that you wouldn’t mind doing and thinking about 24/7. Then research all the different options within that industry. Some good resources include Entrepreneur Magazine’s annual top 500 franchises list, the International Franchise Association, franmarket.com or even Google.

Taking the Next Step
You have decided that you don’t mind building the brand and you confess that you will most likely have a higher success rate within a franchise than on your own. You also want to be a part of the annual $1.55 trillion dollar franchising revenue and you have selected your industry. Now what?

Now the fun begins as you start the research that will determine the difference between good and bad franchises. Remember that SCORE has over 10,500 volunteers ready to help mentor you, many of whom have franchise experience. Seek help from your nearest SCORE office or online counselor. SCORE counseling is always free and confidential.

More Franchise Opportunites: Pet Care Franchise - Colorado Franchise

5 Denver Franchise Tips

If you are thinking about purchasing a Denver franchise, keep the following 5 tips in mind.

1. You are a customer to the franchisor. Many people believe that going into a Denver franchise is like joining a partnership where you, the franchisee, will be protected from failure. This is not true. While franchisee companies have a much higher success rate than individual start-up companies, up to 20 percent of all franchises do not do well. However, this failure rate is far lower than that of individual start ups.

2. You and the franchisor have different goals. Although both parties; franchisee and franchisor, have the common goal of building the brand, the franchisor’s goal is to sell franchises and the franchisee’s goal is to service the consumer or end user.

3. You may not have an ongoing relationship with the franchisor sales representative. If you are dealing with an independent agent or with one of the brokerage houses which represent franchisors or the Denver franchise opportunities, chances are that although they are knowledgeable about the franchise, you will not see that person after the point of sale. If you are dealing with a sales person salaried by the franchisor, s/he will want to work with you in the future, and that may cause the sales process to take on a different perspective.

4. You have legal rights when dealing with the franchisor. Be careful if the franchisor tells you how much you can earn if you invest in their system. The Federal Trade Commission (FTC) requires that franchisors who make such claims provide you with written substantiation. Be sure to ask for and receive this. If they don’t provide it, consider the claims to be suspect.

5. You are protected by the UFOC. The Uniform Franchise Offering Circular (UFOC) defines what the franchisor will do for you and expects of you. You must carefully review the UFOC before purchasing the Denver franchise. The FTC protects franchisee prospects up until the point of sale, but after this, the UFOC becomes vitally important.

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