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	<title>Micros Report &#187; Reputation</title>
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		<title>Buying and Selling 20 Dollar Gold Coins</title>
		<link>http://www.microsreport.com/investment/coin/buying-and-selling-20-dollar-gold-coins/</link>
		<comments>http://www.microsreport.com/investment/coin/buying-and-selling-20-dollar-gold-coins/#comments</comments>
		<pubDate>Wed, 18 May 2011 12:38:42 +0000</pubDate>
		<dc:creator></dc:creator>
				<category><![CDATA[Coin]]></category>
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		<guid isPermaLink="false">http://www.microsreport.com/?p=1252</guid>
		<description><![CDATA[&#160; gold dollar coins Buying or selling gold coins is directly or indirectly to a process of financial investment as well as aesthetic pleasure. Some coins reach premium heavy because of their rarity and quality. The dignity of gold coin can be measured with the wear and handling of the money that is on the [...]]]></description>
			<content:encoded><![CDATA[<p style="text-align: justify;">&nbsp;</p>
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<dt class="wp-caption-dt"><a href="http://www.microsreport.com/wp-content/uploads/2011/05/gold-dollar-coins.jpg"><img class="size-medium wp-image-1253" title="gold dollar coins" src="http://www.microsreport.com/wp-content/uploads/2011/05/gold-dollar-coins-300x300.jpg" alt="gold dollar coins 300x300 Buying and Selling 20 Dollar Gold Coins" width="300" height="300" /></a></dt>
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<p style="text-align: justify;">Buying or selling gold coins is directly or indirectly to a process of financial investment as well as aesthetic pleasure. Some coins reach premium heavy because of their rarity and quality. The dignity of gold coin can be measured with the wear and handling of the money that is on the coin. Rarity of Money plays a major role in improving the assessment.</p>
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<dt class="wp-caption-dt"><a href="http://www.microsreport.com/wp-content/uploads/2011/05/gold-dollar-coins-2.png"><img class="size-full wp-image-1254" title="gold dollar coins 2" src="http://www.microsreport.com/wp-content/uploads/2011/05/gold-dollar-coins-2.png" alt="gold dollar coins 2 Buying and Selling 20 Dollar Gold Coins" width="600" height="600" /></a></dt>
<dd class="wp-caption-dd">gold dollar coins</dd>
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<p style="text-align: justify;">Gold coins were minted originals as the legal tenders by the governments of countries around the world. Prior  to 1930, when governments were out of the gold standard, including the  United States, production of gold coin was launched. Even if gold coins are marked with a value on them, cost more than the indicated value as it contains real gold in it. Gold coins also convey the history and art, all the coins have their historical values.<br />
$ 20.00 gold coin is about the size of half a dollar coin weighs one ounce, which is standard. Weighs more than $ 20 real money. There are some smaller denominations minted as $ 1, $ 3, $ 5 and $ 10. Some  foreign coins are also available that are very popular as the British  Sovereign gold weighing about quarter ounce and one ounce Franc which is  the fifth gold.</p>
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<dd class="wp-caption-dd">gold dollar coins</dd>
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<p style="text-align: justify;">Gold sovereigns are among the most popular series of gold coins in the world. About.2354 weighs ounces of gold and the size is about the same as the U.S. nickel. Is coined by the British in 1489 and was issued with a portrait of Henry VII. These coins have been replaced by the Member of the United States and Guinea 1604-1816, but came to light again in 1817. This time it was issued with a portrait of George III. When the United States won its independence was King George III of England. The Age of George III, until he was present is considered as a modern sovereign.</p>
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<dt class="wp-caption-dt"><a href="http://www.microsreport.com/wp-content/uploads/2011/05/gold-dollar-coins-4.jpg"><img class="size-full wp-image-1256" title="gold dollar coins 4" src="http://www.microsreport.com/wp-content/uploads/2011/05/gold-dollar-coins-4.jpg" alt="gold dollar coins 4 Buying and Selling 20 Dollar Gold Coins" width="300" height="300" /></a></dt>
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<p style="text-align: justify;">Gold Sovereigns always features the portrait of the king or queen ruling. Coins can be collected in a basic way, whereas the monarch. The  portraits of George III, George IV, George V, George VI, William IV,  Victoria, Edward VII, and Elizabeth are commonly seen on the coins of  modern sovereignty. No sovereign has been made with the portraits of King Edward VIII reigned for less than a year.</p>
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<p style="text-align: justify;">A sovereign was specially designed and built in 1989 to commemorate the 500th anniversary of gold coins. One has the impression of Elizabeth II, sitting on his throne. Many gold sovereigns have the reverse design of St. George slaying the dragon. Collecting gold sovereigns with reverse designs can be easily done as these coins are not expensive. There is a mark indicating the country of manufacture of the sovereign. This  mark is a small letter that is relevant under the picture or on the  opposite side of the coin, as it is&#8217; S &#8216;for Sydney,&#8217; M &#8216;for Melbourne,&#8217; C  &#8216;for Canada,&#8217; I &#8216;for India&#8217; SA &#8216;for South Africa. If a coin has no mint mark and says it is building in London. Since 1932 all the rulers are manufactured in London.</p>
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<dt class="wp-caption-dt"><a href="http://www.microsreport.com/wp-content/uploads/2011/05/gold-dollar-coins-6.jpg"><img class="size-medium wp-image-1258" title="gold dollar coins 6" src="http://www.microsreport.com/wp-content/uploads/2011/05/gold-dollar-coins-6-300x300.jpg" alt="gold dollar coins 6 300x300 Buying and Selling 20 Dollar Gold Coins" width="300" height="300" /></a></dt>
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<p style="text-align: justify;">Collecting gold sovereigns within these dates is a very ambitious to do a collection. There are only the main gaps during the reign of George V, George VI and Elizabeth II. The coins that are much older they are more expensive. Buy rulers every year, can be very expensive. Some coins are so rare that may be impossible to buy at any price. Purchase  and sale of these coins can be done through the Internet, be sure to  check out some coin books or the Internet to determine the actual price  of them. Knowledge of the current price may be useful to know the rise and fall of interest rates. Make sure you are dealing with the right person and the vendor reputation and ensure all the handling and shipment.</p>
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<h4>Incoming search terms:</h4><ul><li>gold dollar coins</li><li>gold coin png</li><li>gold dollar coin</li><li>gold dollar</li><li>1 dollar gold coin</li><li>one dollar gold coin</li><li>20 dollar gold coin</li><li>us gold coin</li><li>gold dallor coins</li><li>twenty dollars gold coin</li><li>twenty dollar gold coin</li><li>coins from around the world</li><li>indian gold coins images</li><li>rare silver dollar coins</li><li>american currency coins</li><li>gold photos</li><li>gold standard</li><li>1 dollar gold coin value</li><li>rare foreign money</li><li>foriegn coins</li></ul>]]></content:encoded>
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		<item>
		<title>McDonald&#8217;s &#8211; Franchise Review</title>
		<link>http://www.microsreport.com/franchise/mcdonalds-franchise-review/</link>
		<comments>http://www.microsreport.com/franchise/mcdonalds-franchise-review/#comments</comments>
		<pubDate>Wed, 13 Apr 2011 20:52:12 +0000</pubDate>
		<dc:creator></dc:creator>
				<category><![CDATA[Franchise]]></category>
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		<guid isPermaLink="false">http://www.microsreport.com/?p=762</guid>
		<description><![CDATA[&#160; mcdonalds franchise McDonald&#8217;s was founded and started franchising in 1955. A man named Ray Kroc, who was a salesman of milkshake mixers, undefeated brothers Dick and Mac McDonald, who were running a small hamburger stand. He saw how quickly the customers were served and suggested the brothers open a restaurant chain. They did, and [...]]]></description>
			<content:encoded><![CDATA[<p style="text-align: justify;">&nbsp;</p>
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<p style="text-align: justify;">McDonald&#8217;s was founded and started franchising in 1955. A  man named Ray Kroc, who was a salesman of milkshake mixers, undefeated  brothers Dick and Mac McDonald, who were running a small hamburger  stand. He saw how quickly the customers were served and suggested the brothers open a restaurant chain. They did, and Kroc became their business partners. McDonald&#8217;s, and the signature golden arches, have since become internationally recognized symbols.</p>
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<dt class="wp-caption-dt"><a href="http://www.microsreport.com/wp-content/uploads/2011/04/mcdonalds-franchise-2.gif"><img class="size-full wp-image-764" title="mcdonalds franchise 2" src="http://www.microsreport.com/wp-content/uploads/2011/04/mcdonalds-franchise-2.gif" alt="mcdonalds franchise 2 McDonalds   Franchise Review" width="200" height="200" /></a></dt>
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<p style="text-align: justify;">Their signs proclaiming &#8220;millions served&#8221; and that it is no exaggeration. With more than 32,000 locations worldwide, McDonald&#8217;s is the world leader in fast-food franchise.</p>
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<p style="text-align: justify;">McDonald&#8217;s has always been proud of the quality and preparation of its fast food. known, popular menu items include the Big Mac, Chicken McNuggets, Egg McMuffin and. Kids &#8216;meals, called Happy Meals are the most popular kids&#8217; meals in the field. &#8220;Every child wants a happy meal.&#8221; Enlarge  McDonald&#8217;s positions have often placed the game, which include slides,  tunnels, shafts, and occasionally shot for visiting children to play  while their parents to eat, or for parties.</p>
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<p style="text-align: justify;">Ronald McDonald, but never a real person, is the mascot of the famous McDonald&#8217;s franchise. The  origin of Ronald McDonald involves Willard Scott, who performed using  the moniker &#8220;Ronald McDonald, the Hamburger-Happy Clown&#8221;. This was in 1963, and were the first ads to appear on television with the character. Ronald McDonald is second only to Santa Claus in terms of recognition. In 2000, the Northeast Division President went on the Today Show and thanked Willard Scott for creating Ronald McDonald.</p>
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<dt class="wp-caption-dt"><a href="http://www.microsreport.com/wp-content/uploads/2011/04/mcdonalds-franchise-5.jpg"><img class="size-full wp-image-767" title="mcdonalds franchise 5" src="http://www.microsreport.com/wp-content/uploads/2011/04/mcdonalds-franchise-5.jpg" alt="mcdonalds franchise 5 McDonalds   Franchise Review" width="436" height="330" /></a></dt>
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<p style="text-align: justify;">McDonald&#8217;s offers the community with the Ronald McDonald House Charity. This charity provides homes to people whose children are hospitalized, but have to travel far from their homes for treatment. These  homes are provided at little or no money for families, allowing them to  be close to the child during the difficult period of stay in the long  term. The Ronald McDonald House also allows these families to access the best possible treatment options. This  charity greatly increased the company&#8217;s reputation, and continues to  keep these families in homes that are so desperately needed. The  Ronald McDonald House Charities also offers scholarships for students  who can not afford college, and grants to other charities. McDonald&#8217;s  is very community-minded, and we see this as helping people and also  the care that is given to ensure its food and excellent customer service  at each location. poor customer service is not tolerated and will result in immediate termination.</p>
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<dt class="wp-caption-dt"><a href="http://www.microsreport.com/wp-content/uploads/2011/04/mcdonalds-franchise-6.jpg"><img class="size-full wp-image-768" title="mcdonalds franchise 6" src="http://www.microsreport.com/wp-content/uploads/2011/04/mcdonalds-franchise-6.jpg" alt="mcdonalds franchise 6 McDonalds   Franchise Review" width="280" height="411" /></a></dt>
<dd class="wp-caption-dd">mcdonalds franchise</dd>
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<p style="text-align: justify;">The cost to start a business McDonald&#8217;s is very high, but the profit margin for every franchise is even higher. The initial fee is $ 45,000, and the estimated total cost of the franchise is between $ 1,057,200 and $ 1,885,000. To  qualify, applicants must have a minimum of $ 500,000 of money is not  borrowed, and must have significant experience in business, good  management skills, experience, customer service, and good credit  history. A monthly service fee is based on sales performance of the franchise, but is generally 4%.</p>
<p style="text-align: justify;">&nbsp;</p>
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<h4>Incoming search terms:</h4><ul><li>mcdonalds franchise</li><li>mc donals</li><li>mcdonalds franchise profit margin</li><li>mc donald</li><li>mcdonalds 1955</li><li>mcdonald 1955</li><li>owner of mcdonalds franchise</li><li>mcdonalds franchise profit margins</li><li>mcdonaldsimagenes</li><li>mcdonald\s franchise profit margin</li><li>ronald mcdonald</li><li>4R mcdonalds</li><li>franchise mcdonalds</li><li>dick e ronald e ray kroc mcdonald</li><li>McDonald pics</li><li>Ronald McDonald is second only to Santa Claus in terms of recognition</li><li>children mcdonalds</li><li>ray kroc</li><li>dick &amp; mac mcdonald</li><li>milkshake mcdonald</li></ul>]]></content:encoded>
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		</item>
		<item>
		<title>Kentucky Fried Chicken &#8211; Franchise Review</title>
		<link>http://www.microsreport.com/franchise/kentucky-fried-chicken-franchise-review/</link>
		<comments>http://www.microsreport.com/franchise/kentucky-fried-chicken-franchise-review/#comments</comments>
		<pubDate>Wed, 13 Apr 2011 20:39:37 +0000</pubDate>
		<dc:creator></dc:creator>
				<category><![CDATA[Franchise]]></category>
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		<guid isPermaLink="false">http://www.microsreport.com/?p=751</guid>
		<description><![CDATA[&#160; kfc franchise Kentucky Fried Chicken restaurant is one of the world&#8217;s first fast food and one of the best because of their original recipes and superior customer service line. Kentucky Fried Chicken has been serving the masses since 1930 and now have hundreds of branches all over the world serving millions of customers. If [...]]]></description>
			<content:encoded><![CDATA[<p style="text-align: justify;">&nbsp;</p>
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<dd class="wp-caption-dd">kfc franchise</dd>
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<p style="text-align: justify;">Kentucky  Fried Chicken restaurant is one of the world&#8217;s first fast food and one  of the best because of their original recipes and superior customer  service line. Kentucky  Fried Chicken has been serving the masses since 1930 and now have  hundreds of branches all over the world serving millions of customers. If you want to start a business fast food, Kentucky Fried Chicken is one of the best choices. It has a stellar reputation and a proven track record of success.</p>
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<dd class="wp-caption-dd">kfc franchise</dd>
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<p style="text-align: justify;">Kentucky Fried Chicken is a member of Yum! Brands Inc. Other popular restaurant chains that belong to the same company are Taco Bell, Pizza Hut and Long John Silver. Yum! has operations in more than 37,000 locations in 120 countries around the world. It &#8216;also ranked 239 in the Fortune 500 list, which is a good result.</p>
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<dd class="wp-caption-dd">kfc franchise</dd>
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<p style="text-align: justify;">How to Start a Business KFC:</p>
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<dd class="wp-caption-dd">kfc franchise</dd>
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<p style="text-align: justify;">Becoming a franchisee of Kentucky Fried Chicken is a sure way to make profits, but can not be for everyone. There are qualifications that must be met before a candidate gets the green light on the franchise.</p>
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<dt class="wp-caption-dt"><a href="http://www.microsreport.com/wp-content/uploads/2011/04/kfc-franchise-5.png"><img class="size-full wp-image-756" title="kfc franchise 5" src="http://www.microsreport.com/wp-content/uploads/2011/04/kfc-franchise-5.png" alt="kfc franchise 5 Kentucky Fried Chicken   Franchise Review" width="300" height="300" /></a></dt>
<dd class="wp-caption-dd">kfc franchise</dd>
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<p style="text-align: justify;">Those who are interested in starting their own business very own KFC will have to invest a total of $ 1.5 to $ 1.8 million. The minimum financial requirement is actually a $ 1,500,000 net worth and $ 750,000 in cash. The initial costs of franchise fee is $ 25,000. There is also agreement in 20 years that a franchisee must engage in. Provided  that all the qualifications and requirements are met and the  application for franchise is approved, there is also the annual renewal  fee of $ 4.9K. Interested persons should note that KFC is a restaurant business and is hands-on. Experience in the food industry is required to make the business successful. For some people not having that experience will be useful to hire someone who does to make sure the company stays afloat.</p>
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<dd class="wp-caption-dd">kfc franchise</dd>
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<p style="text-align: justify;">Among  the many things that KFC will provide free training to members of the  crew are on how to manage multiple branches and also have a quality  network to help members compete in advertising and brand recognition. Kentucky Fried Chicken franchisees help you every step of the journey. Franchisees will be assisted in every step of the application process.</p>
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<dd class="wp-caption-dd">kfc franchise</dd>
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<p style="text-align: justify;">However,  to be a franchisee, an individual or a company needs to undergo a  series of background checks that may take 10 to 12 weeks according to  the company, and from 3 to 9 months for approval of the site. After  signing the agreement, the franchisees will be given eight months to  begin construction and a year to start &#8216;activities KFC. KFC plans to provide construction standards and the franchisee has the freedom to hire workers to begin construction. Affiliates also have the option of asking the company for their expertise in development, however it is a fee.</p>
<h4>Incoming search terms:</h4><ul><li>kfc chicken</li><li>logo kfc</li><li>kfc fried chicken</li><li>Kfc franchise</li><li>k f c</li><li>kfc pictures</li><li>chicken restaurant</li><li>background kfc</li><li>kfc around the world</li><li>kfc image</li><li>دجاج كنتاكي</li><li>worlds franchises logo</li><li>pizza hut restaurant fotoları</li><li>logo k f c</li><li>kfc logos</li><li>LOGO OF KFC</li><li>pizza hut taco bell kfc</li><li>fried chicken business</li><li>kentucky kfc</li><li>pizza kfc backgrounds</li></ul>]]></content:encoded>
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		<title>How To Spot A Franchise Scam</title>
		<link>http://www.microsreport.com/business/how-to-spot-a-franchise-scam/</link>
		<comments>http://www.microsreport.com/business/how-to-spot-a-franchise-scam/#comments</comments>
		<pubDate>Tue, 22 Dec 2009 20:03:41 +0000</pubDate>
		<dc:creator></dc:creator>
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		<guid isPermaLink="false">http://www.microsreport.com/?p=131</guid>
		<description><![CDATA[There are several ways, and knowing them may well be your only protection against falling victim to one. Franchising has made great inroads in the Philippines because of the increasing number of people succeeding in business through this route. But franchising has a downside: it has given rise to scams. Franchise scams have indeed been [...]]]></description>
			<content:encoded><![CDATA[<div id="body" style="text-align: justify;">
<p><img class="alignleft size-medium wp-image-132" title="scam" src="http://www.microsreport.com/wp-content/uploads/2010/01/scam-300x272.jpg" alt="scam 300x272 How To Spot A Franchise Scam " width="300" height="272" />There are several ways, and knowing them may well be your only protection against falling victim to one.</p>
<p>Franchising has made great inroads in the Philippines because of the increasing number of people succeeding in business through this route.<br />
But franchising has a downside: it has given rise to scams.</p>
<p>Franchise scams have indeed been on the upswing, but it hasn&#8217;t reached crisis proportions as it had in the United States in the 70s &#8211; considered the franchising &#8220;dark ages&#8221; &#8211; when countless individuals were duped into investing in non-existent franchises.</p>
<p><span id="more-131"></span>The situation became so bad that the United States government had to step in to regulate the franchising sector.</p>
<p>We haven&#8217;t reached the boiling point yet, but we may well be on our way if we did not take steps to stop franchise scams in their tracks.</p>
<p>Unfortunately we are on our in this, as no government agency exists to regulate franchise operations in the Philippines.</p>
<p>But we can start by advocating responsible franchising.</p>
<p>It doesn&#8217;t mean we&#8217;re promoting &#8220;perfect franchising,&#8221; because nowhere in the world would one find a foolproof system.</p>
<p>Each franchise system is fraught with problems and challenges and it is vital for one to know how to distinguish between a responsible franchiser and a con artist.</p>
<p>The first will readily admit that his system is imperfect, but he&#8217;s committed to helping the franchisees achieve the same level of success he did with company-owned branches.<br />
The latter will rave about his franchise but gloss over its imperfections.</p>
<p>He&#8217;s our only to collect the fees and is not the least interested in helping the franchisees.<br />
Despite the obvious difference many people couldn&#8217;t tell one from other.</p>
<p>Being able to spot a franchise scam is the best way to avoid losing our shirt.</p>
<p>The following are the red flags to look for to keep from falling prey to swindlers.</p>
<p>Promise of good returns. Like a suitor who would vow to give heaven and earth, you will know the franchiser is pulling your leg if he promises too-good to be true profits even with little or no effort from you.</p>
<p>Responsible franchisers do not guarantee specific rate of returns.</p>
<p>All they will offer is a business system that has worked for them and, if followed to the letter, would also work for you were hands on with the business.</p>
<p>Good franchisers lay their cards on the table and know how to manage your expectations.<br />
They are successful because they&#8217;ve worked hard to build their system and are committed to growing it through franchising.</p>
<p>High-pressure tactics. Be wary of people who pressure you into parting with your money now because the franchise feeds will go up tomorrow, or lure you into getting their buy-one, get-one-franchise free offer.</p>
<p>This tactic not only trivializes a franchise, but also deprives you of your right to do due diligence.<br />
A franchise often entails a major investment, and those not wanting you to do some background checks are those with skeletons to hide.</p>
<p>Evasive answers to questions about the franchise. Franchisers or their representatives should know their franchise like the back of their hand.</p>
<p>They should be able to answer whatever questions you may have.</p>
<p>And if they cannot answer right away, at least they&#8217;re eager to get back to you as soon as they have it.</p>
<p>Your alarm bells should sound once you ask how long the franchise has been around or how well the franchised outlets have been doing and they answer by hyping their profits instead.</p>
<p>A con artist is one who paints a rosy picture of his franchise- how profitable all the franchised outlets have been, and the short time you can get your investment back.</p>
<p>The franchiser not having a track record. A business concept that has not been tested in the market, or a franchise with no company-owned branches is one indication of a franchise scam.<br />
Fro a franchiser to be considered legitimate, he should have been franchise at least a year, and is overseeing at least a couple of successful company-owned outlets.</p>
<p>Responsible franchising means the franchiser is making available a business system that he has operated successfully.</p>
<p>What model can he hold up if the franchiser has not proved that his system actually working? How can the franchiser share a successful experience if he has none?</p>
<p>Steep start-up fees. Any franchise investment can be broken down and each fee justified. There is a formula for computing the fees that franchisers follow when franchising their business.</p>
<p>Responsible franchise investment because the sooner the franchisee recovers the investment, the better for the business and the franchiser&#8217;s reputation.</p>
<p>A swindler will tend to charge exorbitant fees because he is more interested in raking in money than in the franchisee recouping his investment.</p>
<p>A true franchiser cares about how you will recover your investment and is upfront with how your payment will be used in the franchise.</p>
<p>Talking with the franchisee broker instead of with the franchiser.</p>
<p>While franchise brokers may be of help, their involvement ends at some point in the application process.</p>
<p>You should have the chance to meet with the franchiser, and the broker should be willing to schedule a meeting.</p>
<p>If the broker turned down your request for an appointment, it is time to look for other franchise offerings.</p>
<p>A franchise is fraudulent if the only people willing to sit down with you are the brokers or the marketing staff. You should be able to meet the franchiser in person.</p>
<p>Lack of a franchise organization. Check if the franchiser has put an organization on place that will guide you when you operate your franchise. If there is none, it means you will be on your own when you operate your franchise.</p>
<p>Bona fide franchisers design an effective system that will help you make your franchised branch a success.</p>
<p>These are but a few of the warning signs to watch when buying a franchise, although still the best way to protect us from falling victims is to do our homework.</p>
<p>We should neither allow ourselves to be stampeded into buying a franchise nor be lured by attractive sales pitches.</p>
<p>Invest time instead in verifying franchise offerings that caught our interest, and making sure their franchisers have a solid track record and reputation in the industry.</p>
<p>Talk with as many people as possible with the franchisers, the middle management of the franchise organizations, and more important, the franchisees themselves.</p>
<p>You will then be contributing towards stemming the tide of franchise scams in the country.<br />
Unscrupulous franchisers erode the credibility of franchising, and discourage others from using this expansion route that has changed world of business.</p>
<p>&#8216;EACH FRANCHISE system is fraught with problems and challenges and it is vital for one to know how to distinguish between a responsible franchiser and a con artist.&#8217;</p>
</div>
]]></content:encoded>
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		<title>Is Franchising for Me</title>
		<link>http://www.microsreport.com/business/is-franchising-for-me/</link>
		<comments>http://www.microsreport.com/business/is-franchising-for-me/#comments</comments>
		<pubDate>Tue, 13 Oct 2009 20:16:28 +0000</pubDate>
		<dc:creator></dc:creator>
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		<description><![CDATA[Franchises are one of the fastest-growing types of businesses in the U.S. and can be purchased for as little as a few thousand dollars, to over a million dollars. There are franchises for all kinds of products and services—food, pet grooming, massage services, auto repair, etc. Although exact statistics are hard to find, they also [...]]]></description>
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<p><img class="alignleft size-full wp-image-140" title="franchise3" src="http://www.microsreport.com/wp-content/uploads/2010/01/franchise3.jpg" alt="franchise3 Is Franchising for Me" width="288" height="288" />Franchises are one of the fastest-growing types of businesses in the U.S. and can be purchased for as little as a few thousand dollars, to over a million dollars. There are franchises for all kinds of products and services—food, pet grooming, massage services, auto repair, etc. Although exact statistics are hard to find, they also tend to have a higher success rate than independent businesses that are not franchises.</p>
<p>Although franchises tend to have higher success rates, they also have risks , and can fail for any number of reasons like any other business. You must investigate <em>Joe’s Restaurant Franchise</em> just as thoroughly as <em>Joe’s Local Diner </em>before buying it. There are a number of great resources in addition to this article to help you determine if a franchise is the right way for you to go. The U.S. Small Business Administration (SBA) has some excellent resources , as do several other services like business brokerage websites. Enter “Is Franchising For Me” in any Internet search engine, and you’ll retrieve links to a large number of resources.</p>
<p><strong>What is a Franchise?</strong></p>
<p>The SBA resource I mentioned above offers the following definition for a franchise: A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or advertising symbol and an individual or group seeking the right to use that identification in a business. The franchise governs the method of conducting business between the two parties. Generally, a franchisee sells goods or services supplied by the franchisor or sells goods or services that meet the franchisor&#8217;s quality standards. As a business model, franchising is essentially a finance vehicle for expansion of the concept. You, the franchisee, finance the start up of the individual franchised unit and pay licensing and royalty fees to the franchisor. This is as opposed to the franchise company bearing the costs of opening its own units (many franchises do have company-owned stores along with franchised stores). The franchise agreement is a contract that governs the manner in which you will do business.</p>
<p><span id="more-139"></span>For the fees you pay, the franchisor licenses to you the use of the name of the business and provides other support. Typically there is a business operating system in place, contracts for products or services sold, equipment packages, store design packages, etc. Many franchisors will also arrange for financing relationships. Some franchisors supply the product directly and make money on the sale of that product to you. Such an arrangement usually reduces or eliminates the royalties you would otherwise pay. Typically, you will pay an upfront license fee and then pay ongoing royalties—usually as a percentage of your sales—plus contribute to regional and/or national advertising funds. The franchisor will hopefully provide business expertise as well—operations management, marketing, selecting locations—and should provide training, typically at their corporate headquarters for one to two weeks, plus training and support as you plan and get your franchise unit ready to open.</p>
<p>As a franchisee you own the business, but you are subject to the guidelines of the franchise agreement—products, store décor, uniforms, where product is purchased, certain advertising guidelines, etc. Franchising may be a good option if you prefer a business with existing brand recognition and defined processes you can follow, instead of creating the business from scratch on your own. The service and support offered by a franchisor varies from chain to chain—and may not always live up to your expectations. But the essence of the value of a franchise is the following:</p>
<ul>
<li>Existing brand value (unless brand new to the market)</li>
<li>Existing operating system</li>
<li>Existing product/service selection</li>
<li>Supplier relationships (sometimes with favorable terms)</li>
<li>Training</li>
<li>Proven locations up and running based on the concept (unless brand new to the market)</li>
<li>Cooperative advertising and cross-traffic with other franchisees</li>
</ul>
<p>These things, like all things of value, have to be earned. In the case of a franchise, in addition to all the work you will have to do to be successful in any business, you have to pay the franchisor for the right to use their systems and trademarks. As noted above, this payment typically takes the form of an upfront “franchise license fee” and then a payment of ongoing royalties, plus a contribution to local and/or regional and national advertising funds. Upfront fees can be fairly nominal, like $5,000, or can be in the tens of thousands of dollars. Royalties (charged as a % of your revenue) vary by chain, but are often in the 5% &#8211; 8% range. Advertising contributions are also typically charged as a percentage of sales and can vary substantially, but typically range from 1% to 5%, with 3% &#8211; 4% being the most common in my experience. In addition to contributions to regional or national advertising funds, you will have to spend additional local marketing dollars to be a success—don’t assume you can rely on your percentage contributions to provide adequate marketing resources to make you a success.</p>
<p><strong>What’s the Right Franchise? </strong><strong></strong></p>
<p>Only you can answer that question, but some things to bear in mind are:</p>
<ul>
<li>What are your interests?</li>
<li>How much capital do you have?</li>
<li>Do you want to develop multiple units?</li>
<li>What days or hours do you want to work?</li>
<li>How easy is it to re-sell your franchise and what are the restrictions or costs from the franchisor?</li>
</ul>
<p>The financial value a franchise brings to you is an important question to ask yourself. For example, if you are giving up 10% of your revenue in the form of 6% royalties and a 4% advertising co-op fee (which, in theory, comes back to your benefit in the form of marketing resources and advertising), you need to objectively assess what you get back for that 10%. 10% right off the top is a significant amount of money. Will you have a higher probability of success? Will you make more money on the bottom line in spite of the 10% expense? It may be simply that a franchise makes it possible for you to be in business for yourself because of your comfort level with an existing concept, versus trying to create your own. This is why many people go with a franchise, and it’s a good reason, but be sure you understand the financial costs and tradeoffs.</p>
<p><strong>Brand Value </strong></p>
<p>Once you are in the business and have some experience, the primary value (besides any ongoing support and training, which is usually minimal) is the equity of the brand you have franchised. A good franchisee is one who understands that the royalty % he or she is giving up each week is an investment in the brand equity of the chain. A brand that is consistent across its various units will tend to build a more positive reputation and therefore drive more customers—more revenue and more profits—to its franchisees. Think about McDonalds®, considered by many to be the model of a successful franchise system. Imagine if every McDonalds restaurant had a different menu with different products, inconsistent quality, and systems that were changed by every franchisee and therefore different. It would be impossible for the customer to know what to expect before they walked in, i.e., the brand “McDonalds” would have little or no value, sales would slide, stores would fail, and the chain wouldn’t be what it is today (we might have never even heard of it!). By insisting that its franchisees conform to the principles of the brand, i.e., create consistency according to high standards, McDonalds and its franchisees have generally thrived (NOTE<strong>: </strong><em>this is not an endorsement of McDonalds, nor is it a prediction of success with a McDonalds franchise. It is only the conclusions of an industry observer and, admittedly, long term customer!).</em> Franchisees that do not conform to the system are destroying their own investment by undermining consistency and therefore the brand. The difficult role of a franchisee is to be independent enough to be capable of owning your own business, but understanding at the same time that you are part of a larger system to which you need to contribute value (i.e., conformity and consistency) in order to be successful yourself.</p>
<p><strong>Master Franchising</strong></p>
<p>I’ll only touch briefly on master franchising, but you may want to follow up in detail on your own, as master franchising can be a very powerful and lucrative business opportunity for the right person. One company that specializes in master franchising is Franchise Growth Systems (FGS), and you can retrieve additional information on master franchising at their website, franchisegrowth.com. Many franchise systems have three overall levels to the organization:</p>
<ul>
<li>Corporate Franchisor—this is typically the entity that that developed the concept and from whom you are buying your franchise license.</li>
<li> <em>Master Franchisee</em> —this is the entity that buys the right to develop franchisees in a given territory, like a state.</li>
<li>Franchisee—this is the person who buys the franchisee license and operates the actual franchise unit.</li>
</ul>
<p>There are two major aspects of the master franchisee you need to understand:</p>
<ul>
<li>Is it an opportunity that makes sense for you; and</li>
<li>If you become a franchisee, what is the impact of the master franchisee on your success?</li>
</ul>
<p>FGS calls master franchising “the best kept secret in franchising,” and it is a pretty unique type of opportunity. Basically, the master buys from the franchisor the rights to develop franchisees in a territory. For each franchise license the Master Franchisee sells, it typically receives one half of the upfront license fee—and that’s not even the good part! It then receives up to <em>half </em>of the ongoing royalties paid by all franchisees operating in its territory. If the master gets a number of units open in his or her territory, 3% (or whatever his or her share of royalties is) of the annual sales in the territory can grow very quickly.</p>
<p>The master typically has to open the first unit in the territory, which increases the capital required. The cost of Master agreements can vary widely, but typically sell for about $.03 to $.10 per head of population in a territory. A state with 3,000,000 people at $.05 per head would require a $150,000 investment. With the first unit to be opened by the master added in, significant capital can be required. If the cost to open a retail store in a retail franchise is $150,000, the total upfront cost to the master is $300,000 in this example. A good Master Franchisee has multiple qualities:</p>
<ul>
<li>A strong financial position to invest in the territory and a unit upfront, and wait for the chain to grow over 2 – 5 years.</li>
<li>Sales/business development skills.</li>
<li>People management skills.</li>
<li>The ability to understand and manage the franchisor/franchisee relationship.</li>
<li>An appreciation for good franchisee operations.</li>
<li>A commitment to the success of his or her franchisees.</li>
</ul>
<p>Master franchisees that lack these skills can be very detrimental to a market and actually undermine the success of the market by creating discord among franchisees, and even turning franchisees against their own concept. Talk in depth with existing franchisees about their experiences with their master franchisee. The master role is sometimes called a Development Agent or Area Developer and, while there can be variations, the role is essentially the same. Bottom line: find out who the “middleman” is, and make sure they are a person with good values and a commitment to the success of their franchisees. This can be even more important than the quality of the franchise parent.</p>
<p>A last note: not all franchise systems have the middle role. Some master franchisees also are the ones who open and own all the units (versus recruiting other franchisees to do so).</p>
<p><strong>Choosing A Franchise </strong></p>
<p>If you determine that franchising is a good avenue to business ownership, one of the most important considerations is this: don’t let your excitement about going into business for yourself, or about a certain concept, cloud your judgment or make you skip a proper investigation of the concept. There are thousands of franchises in the United States. Be open minded when first investigating types of franchises, and don’t have tunnel vision about which one you think interests you. Once you narrow down your choices, investigate more than one at least semi-thoroughly.</p>
<p>The franchisor is required by law to provide you with a Uniform Franchise Offering Circular (U.F.O.C.). It should contain a list of existing franchisees. Contact as many as you can! See what their experience has been. If possible, get them to let you review their financial statements and see how they are really doing. If you can’t review actual numbers of other franchisees, don’t rely on the franchisor’s projections. <em>Franchisees typically like to share their success—if they are doing well</em>. Plus, getting a new franchisee in the system is good for the chain, which should motivate them to share. Some will be sensitive about the confidentiality of the information, but if no one will let you see their books, that’s a warning sign that the franchise may not be doing well in your market or overall.</p>
<p>Never get hasty—you will strongly regret it if you do, and end up making a bad choice. Also investigate resells of existing franchise units—they can represent a great opportunity and a smaller financial investment. Franchising can be an excellent avenue to business ownership. Investigate carefully, make objective judgments, and make sure the franchise is delivering value to its franchisees for the royalties and independence they require you to give up—and then get started! Conclusion</p>
<p>There is value in both new and existing franchise concepts. Obviously, the newer a chain is, the more untried and risky it is. Early entrants into one that becomes successful will enjoy higher returns, but don’t deceive yourself about the risk just because it’s a franchise (with either new chains or established ones). Franchise chains can and do fail, just like individual units do.</p>
<p>One of the big benefits a chain offers is brand recognition. The training and systems are of only nominal value once you know what you are doing. You may even find that your abilities outstrip the franchise’s (but don’t forget it’s consistency with your fellow franchisee’s operations that builds brand value over time!). Brand value is a big part of what you are paying for over the life of your relationship with the franchise. So a more established chain will have less risk (both as a chain and an individual unit), and deliver more quickly on brand value due to their market presence.</p>
<p>Your first choice should be to go with a more established chain with proven successes and lots of franchisees that can share their financial results with you before you commit. There are thousands of franchises in the United States. Utilize the Internet and print publications on franchises to review as many as you can while trying to discover the one that seems like the best fit for you.</p>
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