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Franchise Opportunities in Sacramento

Jan 9, 2008
Sacramento is known for its moderate climate and a good supply of labor due to the various immigrants. It is a good place to start a new business. If you are planning to open a new business in Sacramento, why not give a thought to 'Franchising'? The probability of success in running a franchise is much more than a business, since the brand name is already established.

When you start your own business, since the business may be small at first, you could have a tough time getting bulk discounts and reputed suppliers. Sales too could take time to pick up. Franchising simply means riding piggyback on the hard work of another company. Once a company establishes itself in the market, for example Pizza Hut or Nike, then that company wishes to sell its products to consumers all around the world. Since it is not possible to personally run the show across geographical borders, they start appointing franchises, which are clones in the way the business brand is projected.

These franchises have the same appearance and style of functioning as the parent-company. Every business has its USP like Pizza Hut might have different types of crusts for its pizza or Kentucky Fried Chicken might have its chicken cooked in a particular style. This USP has to be replicated across all the franchises to attain uniformity and enable it to sell the products effectively. Building your own business USP might take longer, whereas, you get this USP automatically with your franchise. Of course, you will have to pay the franchise fees along with many other fees to get a particular franchise.

Before going the franchise way, you should research on the type of products you would want to market, and mainly products that are in demand in the place where you propose to start your business. So in order to start a pizza franchise or a shoe franchise, you will have to survey in the areas of Sacramento where your products will sell. If you already have a place in downtown Sacramento, then you will have to research as to which products will sell from that outlet. You will then have to contact a particular company who wishes to have a franchise in your neighborhood of Sacramento. You can check out advertisements in your newspapers and also the Internet. There are numerous advertisements on the Internet offering various franchises from pizzas to pet care shops to auto repair shops.

Once communication is established, the parent company might send a team to inspect your premises. You will also need to get an estimate of the total project cost including the franchise fees and the cut, if any, which they could claim from your profits. The Federal Trade Commission has formulated a rule for all franchise agreements called the Uniform Franchise Offering Circular [UFOC], which ensures that franchisers do not mislead or cheat franchisees. Hire an efficient Attorney who is conversant with these rules to guide you. Your franchise agreement should be clear about the franchise fees, your percentage of earnings, the parent company's support like advertising, their after sales support, etc. You should also have a plan about your expected sales and profits from that franchise.

Check the above points while starting your own business and if you see a definite advantage in turning into a franchise, then go for it.
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