Tom’s Franchise Information Blog

The person who wants to buy a franchise to start up their business should know off hand that owning a franchise is no guarantee for financial bailout if you start getting into the red. Many business owners have this misconception and find that they are in worse shape than being a small local ma and pa store. The advantage for the franchise business owner is that their business known nationwide and the corporation runs campaign ads that help create sales. Some people like the franchise idea because they know that the product they are selling is top grade and well like by everyone. There is no need for the person who owns the franchise to question the standards of the business but instead they need to make sure that they are located in a good place for sales. That is only one problem faced by a business owner who utilizes franchised ownership. It is best to check out your suppliers to make sure that you will not get poor products at an outrageous price. Remember you are still the business owner and make all the decisions on everything from the cleaning solution to the spatula to use in your kitchen.

Franchise business is not always the person who owns and operates the business but it can be a person who is in the business to sell franchises to those who are interested in their own business. The lesion is the business finding independent third party person to buy an already standing franchised business. The agent who does this normally only deals in finding the independent person to operate an already standing establishment or if the corporation is planning to build a new branch then they must find someone who is willing to purchase the new building. There are government requirements by both state and local that the new owner held accountable not the corporation. The new franchise owner must make sure that this business meets all safety and health (more…)

In 1979, with only $20 in his pocket, 16-year-old Adel Salameh left his struggling family in Jordan to come to the United States hungry for opportunity and success. Unable to speak English, Salameh earned his education at night. By day, he worked as a stock boy at a high-end shoe store in downtown Chicago. Salameh’s hard work and dedication yielded him a spot as district manager, but Salameh still hoped to own his own business.

Through a friend, Salameh was introduced to the possibilities of franchising with Verlo Mattress Factory Stores.

Salameh describes it as being in the right place at the right time.

“Verlo Mattress opened a window for me at the perfect time,” Salameh said.

Salameh has been a Verlo franchise owner since 1993. Today he owns three successful operations in Wisconsin and in 2007 earned the International Franchise Association’s Franchisee of the Year Award, representing Verlo Mattress Factory Stores.

He attributes his personal success to buying into a franchise as opposed to starting a business from scratch. “Some of the most important advantages of owning a franchise include: training, brand awareness, purchasing power, a proven business plan as well as advertising and ongoing support,” Salameh said. “Verlo has provided all of these initiatives to the franchise body - things you won’t have when starting a business on your own.”

Verlo Mattress Factory Stores of Boulder franchise owner Dick Sumerfield echoes Salameh’s sentiments. “For me, it all started nearly 20 years ago when my wife, Jane, and I stepped into a Verlo store in Crystal Lake, Illinois,” Sumerfield said. “We left that day with not only a new mattress but with a new sense of curiosity about franchising opportunities with Verlo.”

Sumerfield said he liked the quality and the price and also appreciated the straightforward and inform (more…)

Is a Franchise Right For You?

I have experience in various kinds of businesses including a few national franchises. Franchising is one that I recommend - in some cases. It’s true that franchising increases your chances of success but - is it right for you? There has to be a good fit for you and the franchiser because it will be a relationship. The door swings both ways.

What Is a Franchise?

A franchise is a type of license a franchisee is given to allow them to have access to certain proprietary knowledge, business procedures, processes and trademarks in order to allow the franchisee to sell a product or provide a service under the trade name. Usually in exchange for getting this privilege, you will be required to pay a franchise fee. There may also be ongoing royalty fees and annual licensing fees.

Advantages to Buying a Franchise

Some of the more obvious advantages to buying a franchise is first of all you have access to an established brand name and so you have a jump at making yourself known. Also the risk of failure is less because other franchisees are working the system and surviving perhaps even thriving in the business. The franchiser is required to disclose financial information on the parent corporation. By law you should receive a franchise offering circular that discloses information like legal issues, past and present, the agreement, and a list of existing owners (who you can call). Another really good thing is the franchiser is relying on you to succeed and for many reasons. Your success is the franchiser’s success. Because when a franchiser has a history of success they’ll be able to sell more franchises and the franchise will increase in value. Not only that but as is the case in many franchises the franchisers make money on product sales to the franchisee. So you are not going into (more…)