- Woman with Singer sewing machine
Franchises go back to the 1850s, when Isaac Singer, inventor of the sewing machine, wanted to sell outside his geographical area and give customers training and support. He started selling licenses to individuals in other areas of the U.S. This concept continued to grow over the next century. In 1955, Ray Kroc purchased a small chain of food franchises and expanded it into McDonald's, which now has more franchise owners throughout the world than any other franchise system. Franchising is a way for individuals to start their own businesses with the help of experts. Because the products, services, marketing and operational plans are already in place, there is a much better chance of success. - Financial planning franchises can provide a rewarding opportunity for entrepreneurs who want to use their financial expertise and sales skills in this fast-paced commercial industry. Franchisees have access to the franchisor's list of offered products and services in such areas as retirement planning, college/university funding, accounting or debt settlement. Planners can also help businesses develop a financial plan, obtain funding, provide for equipment leasing and expand into new areas. A number of financial-services franchises are available in the tax industry. These planners offer personalized attention and services that go beyond those of the traditional Certified Public Accountants and financial institutions. This is a growing field: Presently, about 50 million tax returns are filed electronically in the United States, and the Internal Revenue Service has mandated that this number soon reach 80 million. In addition, the increasing complexity of the tax code is making it more difficult for both individuals and businesses to even complete the simplest return.
- Different financial-services franchises work with a variety of clients, based on their specialized services. For example, some financial planners primarily help individuals or only small businesses. Others work with larger corporations. Regardless, the majority of financial services franchisors provide their franchisees with comprehensive financial training, marketing advice and support services. For individuals who have limited financial training and experience, this help from the franchisor is essential. The franchisor training is not as effective as firsthand experience, but it does provide the franchisee with the basic foundation from which to establish and operate a high-quality financial-services company. The franchisee must continually keep up to date with changes in the industry, and ongoing training is advised.
- Due to the growing senior population (and, most recently, the difficulties in the financial industry), a new area has been established for financial-planning franchising: retirement and estate-planning organization. This franchise helps individuals find answers to questions regarding their retirement years and making plans for their estate. In addition to having financial know-how, an individual who is interested in becoming a retirement and estate-planning franchisee should be able to make presentations in front of interested groups and work well one-on-one with individuals who are in need of his services. Sales experience is very helpful. These financial planners should understand the needs of seniors and present or future retirees, and be able to offer them different options based on their particular situation.
- If you are considering a franchise, do your homework. There are some excellent franchising opportunities, as well as those that offer little or no support and have a high failure rate. When you read the information about a possible financial-planning franchise or talk directly with the franchisor, you need to ask a number of specific questions. These include: the length of time the franchise has been available and the success rate of franchisees; expected changes in the industry that may impact the business; the forecast for this franchise in the near future and in a decade; the number of franchisees already in your geographical area and the total amount allowed; the seasonality of the product and services; the possibility of expansion into other service or market areas; and the reputation and overall rating of the franchise compared to its competition.
Naturally, it is very important to discuss the costs of the franchise, and the training, support and services you receive for that investment. This is an area in which financial-planning franchises differ considerably.
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