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

Latest News


guardian.co.uk

Microsoft's Ballmer to CES: keep investing in tech despite ...
Scientific American - 10 hours ago
Las Vegas , NEV. -- In his first ever CES keynote, Microsoft CEO Steve Ballmer yesterday acknowledged the tough economic times, but urged companies not to ...
Microsoft: the year ahead ComputerWeekly.com
Microsoft releases Windows Server 2008 R2 beta VNUNet.com
Windows 7 beta available worldwide on Friday AFP
TechFlash - G4 TV
all 1,247 news articles

The Money Times

The Best Investment Values in a Decade
Motley Fool - 9 hours ago
These days, we're presented with what Ron Muhlenkamp a few months ago called "the best investment values we've seen in a decade." Obviously, the market has ...
You Are About to Make a Bad Investment Motley Fool
The Flight to Safety Could Burn You Motley Fool
Wednesday's Biggest Stock Stars Motley Fool
Motley Fool - Motley Fool
all 146 news articles

Wealth Bulletin

How to avoid a Madoff fund
San Francisco Chronicle,  USA - 1 hour ago
Feeder-funds (hedge funds or funds that do all their investing through another fund) and funds-of- funds sold investment services to individuals, ...
The Financial Services Industry’s Free Lunch Asia Sentinel
Fund-of-Hedge Funds Lacked Technology to Avoid Madoff Losses Advanced Trading
D Bank declined offers to invest with Madoff Financial Times
all 13 news articles

Dividend.com

Billionaire investor places next supermarket bet
MarketWatch - 5 hours ago
Yucaipa's investment funds have been aggressive buyers of Whole Foods shares since Nov. 24, spending a net $98 million to amass the stake. ...
Activist shareholder buys 7 percent stake in Whole Foods Austin American-Statesman
Billionaire investor Burkle bets on Whole Foods MarketWatch
all 22 news articles

Thomas, McNerney & Partners Promotes Three Members of Its ...
PR Newswire (press release), NY - 7 hours ago
Thomas, McNerney & Partners is a health care venture capital firm with approximately $600 million under management, focused on investing in life science and ...

US investment in IT would create jobs, group says
ITworld.com, MA - Jan 7, 2009
by Grant Gross A US$30 billion investment by the US government in broadband, health IT and smart energy grids would create or retain nearly a million jobs, ...
New ITIF Report Documents How $30 Billion IT Stimulus Package ... eGov monitor
$30B IT Stimulus Will Create Almost 1 Million Jobs Slashdot
all 32 news articles

Invesco Fund Loss Stirs Investor Fears
Wall Street Journal - 32 minutes ago
By DIYA GULLAPALLI 'Stable-value" investment funds have been one of the last havens in employee-retirement accounts. But one, advised by money manager ...

Appleseed Fund Ranked by Lipper as Top Performing Midcap Value ...
CNNMoney.com - 12 hours ago
"Since the Appleseed Fund's inception, we've shown it's possible to outperform the market by investing in companies with strong sustainability records and ...

New T. Rowe Price mutual fund eyes global investment
Bizjournals.com, NC - Jan 7, 2009
T. Rowe Price Group Inc. is launching a new mutual fund seeking reward amid the risks of global fixed-income investing. The Strategic Income Fund will ...

Telegraph.co.uk

Learning from Madoff's Ponzi scheme
WKOW-TV.com, WI - 7 hours ago
Another important lesson from the Madoff Ponzi scandal is that investing money successfully also requires some homework on your part. "If you're investing ...
Video: Congress Sounds Off Against SEC in Madoff Affair AssociatedPress
Congress Demands SEC Speed Madoff Inquiry to Improve Oversight Bloomberg
Re-defining Risk: 5 Investment Rules for 2009 Midas Letter
BusinessWeek - Chicago Tribune
all 2,717 news articles

Resources