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Northward Ho aka Franchise Opportunities in Canada!

February 27, 2012 | Comments: 0 | Views: 169

The facts below illustrate the opportunity that lies just north of the border. As an entrepreneur or an investor, are Canadian Franchises the opportunity you have been waiting for?

• Canada is one of the franchise capitals of the world led only by the U.S.

• A Canadian franchise opens every 2 hours 365 days a year

• Franchising continues to grow and represents approximately $100 billion in sales annually

• Canada franchising employs over 1.5 Million people

• Total number of units in Canada exceeds 80,000 units

• In excess of 500 of the largest U.S. franchisors have introduced their franchise systems to Canada

Studies show that 86% of franchises that opened in Canada within the last 5 years were still under the same ownership with 97% of them still in business. In contrast, a much larger percentage of independent businesses that started during the same period have gone out of business. As a rule, 40% of all non-franchised businesses don't make it to the end of their first year of operation, and 80% fail within their first 5 years. Furthermore of the 20% that survive their first 5 years, 90% of them will fail within the next 5 years.

Simply, the franchise is the right to use the trademarks and systems, and the right to promote the products and/or services under specific guidelines. The franchisor defined as the business entity that owns controls and operates the franchise system, grants a limited license to operate the franchise according to a certain method, and with the products and/or services developed by the franchisor. The franchisee is the company or person who pays the franchisor for the franchise and the right to use the system.

Positive Franchising Considerations

• Reduced Risk with a Proven System

• Collective Purchasing Power

• Easier Access to Financing and Reduced Cash Requirements

• Site Selection Assistance

• Promotional Advertising Resources

Negative Franchising Considerations

• Loss of Independence

• Franchisor's Failure to Perform

• Misunderstanding the Franchise Agreement

• Misrepresentation by the Franchisor

• Payment of Initial and Ongoing Fees

In summary, when considering a franchise opportunity it is essential that you utilize proper due diligence and investigate before you invest! Caveat Emptor (Buyer beware) Evaluate both the franchisor and the franchise. Some have found that a business broker/franchise broker or services like internet franchises finders can be of great assistance. Just as when purchasing a home you should not consider a franchise that is beyond your financial means. "Does this all make sense?" Emotion and logic need to be balanced when making the decision to purchase a franchise. While it is important to have a "good feeling" about the people involved and excited about the opportunity, logic has to be applied to the decision-making process in such areas as ROI, cost analysis, consumer acceptance, risk analysis, availability of product, demographics etc. We Help Entrepreneurs by Providing Free Information to Buy Franchise Start-up Businesses in Canada and Beyond.


Source: EzineArticles
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