In recent trips to Europe, the Middle East, Asia and Mexico during 2010 as part of our international initiative to expand our consulting services into these “future-growth” markets, we confirmed the growing acceptance of the franchise model in many countries as an exciting opportunity for small business investors.  Yes, there is perceived risk, but it is a well controlled risk. 

There are several European countries,  such as Spain, France, Belgium and Italy, with strong franchise disclosure laws, as well as several in the expected high-growth international markets with a mix of franchise laws and ”good faith”  laws to enforce fair dealing , including in the pre-contractual due diligence and negotiating period.  

The areas of concern for you, the intended franchisee, over and above those of any proposed business investment, may range from issues relating to the termination of the franchise to intellectual property matters, general contract disputes, misrepresentation and fraud.  The franchise documents themselves can be intimidating in size, as the franchisor would not want to be penalized for perceived inaccuracies resulting from abbreviation.

Currently, there are over 3,500 franchising opportunities in the U.S., an estimated 1,000 each in  the UK, Mexican and Brazilian markets, and twice that in the Euro Zone – that`s an enormous pool of opportunities for you to sift through to narrow down leads. 

This may be the one of the largest financial investments of your life.  Which is why it makes good sense to call on the expertise of a franchise consultant or franchise broker, who’s services are paid for by the franchisor, to help weed out the more problematic leads and match you and your goals with the best fit franchise. .

I founded MatchPoint Franchise Consulting Network in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability.  That mission also included improving the quality of new Franchisees coming into the system. 

Advice is offered freely to franchise buyers on our website and by MatchPoint consultants in the field and is vital to you in making a better, prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help you with a high quality due diligence process.  It is an effective hedge against the misrepresentation and fraud sometimes propagated by less than reputable business opportunity marketers in all business models.   

MatchPoint consultants know the red flags in the investment field.  It takes the very few promoters that practice business fraud to taint the dream of an individual and their family.   

That`s why seeking the independent advice of an expert franchising consultant is wise and invaluable from the start of your due diligence process.I

Are you overwhelmed with franchise leads that really motivate you?

Why not start by looking into the industries that  feature in the top tier for 2011.   Essential services like health care, child care, and senior care are our top picks  this year for the new small business investor.  Discretionary spending services, such as education and pet services, continue to grow within the franchise sector.  Going Green has its niche and food and beverage retail franchises tend to succeed where there is perceived real value for money by the local consumer.


Outside North America, we note that  Spa treatments are amongst the local brands enjoying huge success in Brazil aided by smart use of social media marketing.  Everywhere else the well-known, strong international brands continue to grow the franchise business model`s recognition.

These are amongst the range of franchise categories that we see as both affordable and likely to match with an entrepreneurial, highly motivated spirit to ensure a successful start up in this coming year, and to enjoy continued success throughout the five years of the usual franchise agreement.

Expect small business loans and micro credit to remain tight through 2011 in markets emerging from recession, regardless of high profile announcements of stronger government support.   To be qualified as a potential franchisee, the new investor will  need to demonstrate their passion and ability to succeed through determination, along with their financial ability to franchisors.  A business plan that you believe in and know all the details of must be included in your package of submissions to the SBA equivalent and bankers.  The fact that franchisors are motivated to work with you to get your loan application approved  is another advantage of your business model choiceChoose a reputable banker to provide your financing. If you are borrowing from family or have an associate to help provide your start-up capital, you need to protect their future as well as yours from business failure, incompetence of third parties, even commercial business fraud. Nevertake the risk of raising capital from less then reputable sources.

Franchisor support has always been a major attraction of this business model.  In some markets, 2011 projections are more conservative than those of the last 2 years.  In these markets, the franchisor will be looking to find the right franchisee from a larger pool of potential buyers.  On the other hand, the experienced franchisors are actively seeking to aid the success of their franchisees by providing enhanced levels of support and service.

I founded MatchPoint Franchise Consulting Network in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability.  That mission included improving the quality of new Franchisees coming into the system.

Advice is offered freely to franchise buyers on our web site and by MatchPoint consultants in the field and can be vital to you in making a better, more prudent, buying decision.  The advice offered by our consultants does not make us lawyers; it is there to help you with a high quality due diligence process. 

MatchPoint consultants know the red flags of fraud in the investment field.  It takes the very few promoters that practice business fraud to taint the dream of an individual and their family.  That`s why seeking the independent advice of an expert franchising consultant is wise and invaluable from the start of your search for leads.

 

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