ST. PETERSBURG, FL, November 25, 2008
/24-7PressRelease/ -- Rick Bisio, a franchise consultant and noted author, recently spoke at a workshop for people considering owning their own business. Rick discussed how to choose a franchise opportunity based on its rate of franchise development. Rick said, "The rate of growth is an important issue. A franchise that grows too fast may seem like a good thing at first, but it s possible for a system to develop too fast, making it very difficult to ensure that a system is in place for training and on-going support. On the other hand, one with a slow growth rate may suggest problems with the business model, making it difficult for the franchisees to succeed. The lack of new franchisees may be a sign of an unhealthy franchise system."
Rick discussed how to gauge steady franchise growth by determining the pace at which the franchise grew each year, both in absolute and percent terms. Rick said, "To find this data for the past three years, you can look in the Franchise Disclosure Document under Item 20, the List of Outlets. All the data you need regarding franchise growth will be there in a clear and easy to understand format."
Rick provided informative handouts showing the rule of thumb for medium-sized franchisors, stating the number of franchisees added each year should be between 10% and 35% of the total number of franchisees. Rick explained, "This method doesn't work for very large or very small companies, so one must consider the ratio of operational support personnel compared to new franchisees. A ratio of one support person for every 10 to 20 new franchisees tells you that new franchisees are likely getting the preparation and support necessary to succeed."
Rick concluded by saying, "Meet the support staff and talk to existing franchisees. You can glean a lot of valuable information by asking the right questions and listening to what they have to say about how they feel about support and training they received when they entered into the franchise business. Visit their headquarters and spend some time with the support staff to be sure you are comfortable with their experience, competence, style and ability to communicate since you will need to be able to work with them and trust their advice on an on-going basis.
Rick Bisio of FranChoice Consulting is the author of the book, The Educated Franchisee. His book teaches people how to recognize a good franchise opportunity and how to research the franchise to be sure it is right for them. Rick's book covers everything you need to know about buying a franchise and owning and operating a franchise. For more information on franchising skills and requirements and starting and building your franchise business, visit http://www.educatedfranchisee.com
Contact:
Rick Bisio
FranChoice Consulting
(941) 778 4660 PH
(941) 778 4670 FX
(800) 708 0040 Toll Free
rbisio@franchoice.com
http://www.educatedfranchisee.com
This Press Release was submitted by Right Now Marketing Group, LLC
About The Educated Franchisee
Since 2002, I have been given the wonderful opportunity to share my experiences in the franchise business by providing coaching services to individuals considering buying a franchise. My objective in this book is the same as in my practice. I want to match the right person to the right franchise and, in the process, share my knowledge about the franchise business.Buying a franchise is an important decision. I know this book will help you.
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