Ask The Franchise Expert
By Geoffrey Stebbins

Ask The Franchise Expert:

Q: My wife and I would like to get into a business and have thought about franchising. What are the advantages of buying a franchise? By the way, we appreciate your column. R.P. - Traverse City, MI.

A: As with any system, there will be advantages and disadvantages and I caution you there may be some disadvantages in franchising for you and your wife. However, you only asked about the advantages, which certainly normally do out weigh any of the disadvantages. The advantages include, 1) being provided with a tried and proven game plan (you don't have to re-invent the wheel), 2) the franchisor should be able to provide you with a high level of expertise, due to his experience (you'll be in business for yourself, but not by yourself), 3) you may be able to take advantage of the size of the system, in such matters as joint advertising, group purchasing, a recognizable name, etc., and 4) the equity you have in the franchise normally appreciates at a far higher rate than non-franchise businesses and your resale value is normally much higher.

A: Pets Are Inn is an unusual franchise which is headquartered in Minneapolis, they arrange for boarding of pets, usually cats or dogs in private homes. This is a low cost franchise, which can be operated out of your own home. You should be a pet lover and it is recommended that in the early stages that the franchisee may wish to board some of his clients' pets in his/her own house, but this would not be mandatory, especially if the franchisee lived in an apartment, which prohibited pets. I recommend that you call the company directly and get as much information about them as possible.

A: Get a second opinion. If you are serious, it certainly is worth your retaining a marketing or consulting company to help you.

A: There are many sources of financing available. 1) Check if the franchisor provides any help in financing, 2) Go to your bank, there may be a home equity loan that can provide the funds needed, 3) Equipment can very often be leased and this is very often a super way of providing financing, 4) The SBA has a few different programs and I'd be happy to send you out a list of banks that have had some good success with SBA financing, 5) Equity financing is often attractive for friends and family members. To better answer this question, I would need to know the franchise that you're looking to purchase and have a copy of your financial statement.