Tienspirits - Tiens (Tianshi)

Franchise - General Tips On Choosing

1. How long?
Try a minimum of 3 years for a franchise.

2. Ask to other strong franchise. "How's the market for the products or services?"

3. How's the package?
Has to be complete. from brand, product, system, work flow, training, control. it's a franchising and not a business opportunity.

4. Check the financial statement, if franchisor won't share the financial report, try to find yourselves.

5. Has good, on going training?

6. How's the franchisor human resource?
Avoid one man show franchisor. if the franchisor do everything- from offering to negotiating- it means that he has no good human resources in management. It will burden him when there are many franchises.

7. Franchise fee make sense?
2 investment component in a franchise: equipment and space renovation and second franchise fee. the fee is not more than 15% of the projected profit in 5 years. If the term is 5 years, ideal break even point is 2.5 years.
8. Pick franchisor that is selective in choosing franchisee. ideally franchisor pick only 12 franchisee in a year.

9. Owner characteristic.

Who are suitable to enter franchise systems?

• Professionals or those use to working.
• People not having high entrepreneur spirit but like to be dominant. They'll have issue with rules and won't be satisfied controlled by the franchisor.