From StartupNation.com:

You’ve decided to launch a franchise home business instead of starting up something from scratch. Congratulations on making this important choice!

Next comes a decision that could prove just as important to your success with a business opportunity: whether to buy a franchise that retails a product, like McDonalds, or provides a service, such as ServiceMaster cleaning franchises.

The two franchise business opportunity paths – product or service – differ dramatically:
Every franchise system has some common denominators, such as a concept owner, a fee structure, a royalty system, and a marketing and administrative program. But the nature and operations of a franchise business differ radically in pushing a product or a service.

“Retail franchises traditionally are opportunities that are driven by having a building, opening the door and waiting for people to walk in, whereas with a service business you’re typically heading out to do the business,” says Lori Kiser-Block, vice president of FranChoice, a Minneapolis-based company that helps entrepreneurs choose a franchise business.

Pros and cons of selling a product as your franchise business:
Most product-oriented franchise businesses sell some sort of food, so operating them is like running a small factory. Your up-front investment in the franchise business, and especially in local real estate for the store, will almost always run into the low six figures. The many day-to-day issues include maintaining proper inventories, ensuring quality, keeping up the grounds, and hiring and managing lower-skilled employees.

Read Full Article

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This entry was posted on Saturday, February 24th, 2007 at 12:37 pm and is filed under Business Opportunity, Start a Home Business, Franchise Business Opportunities. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.