What to know before owning a franchise

The franchise industry in the U.S. is booming. According to AZFranchises.com, there are more than 320,000 franchise retail outlets in the country, which accounts for 40 percent of all retail sales and employs more than 8 million people.

The Benefits. By owning a franchise, you have the ability to tap into a proven system that can help you become successful sooner. The franchise system provides you with procedures to follow that have already been tested, which means you will not need to start from scratch. You have access to the knowledge and experience of other franchise owners, plus support from the franchiser.

The Investment. As a franchisee, you will need to make an investment to purchase the franchise, which will vary in amount depending on the franchise you select. Thanks to the Internet, you can easily research this information online. It is recommended that you research several franchises to get a feel for the various levels of investment, as well as categories of ownership, such as hands-on manager or remote owner/ manager.

You will also be required to pay royalties and possibly fees, such as advertising fees, to the franchiser. The percentages paid vary with every franchise and will be fully disclosed to you by the franchiser. .

Other issues to investigate include whether the franchise is a homebased business, how many locations and employees will be required, and whether or not the franchise will provide you with the income you desire.

The Payoff. As a franchise owner, you can realize your dream

of owning your own business and quite possibly achieve success faster than you could on your own.

Cathy Beaman owns a Decor & You franchise in Simi Valley. To learn about Decor & You or running a franchise, call her at (805) 526-4171.