The Crown Crust Pizza  may strike U.S. eaters as a truly strange juxtaposition of American fast food staples, but to a foreign audience, it’s no less bizarre than piling ethnic entrees from different regions onto a single plate and labeling  them by country, as in U.S. strip mall buffets that feature Indian food items side-by-side while those same items may only be eaten thousands of miles apart in their country of origin.

Read more about Pizza Hut’s Crown Crust Pizza announcement.

The Steps to Choosing a Franchise

These are all fair and important questions to explore, and you’ll certainly want to follow a Step-by-step plan to buying a franchise. But you can’t run a race if you can’t find the starting line, and the path to addressing all of these questions begins with the most fundamental question of all: How do I get started choosing the right franchise? The good news is that if you’ve done some initial research and believe that franchising could be the right approach for achieving your financial and personal goals, there are some proven steps you can follow to ensure you make an informed and intelligent decision.

Here are 5 steps to get you started off on the right foot:

• Step 1: Set Your Priorities for Buying a Franchise
• Step 2: Explore Your Options at a Franchise Show
• Step 3: Dig into the Key Details
• Step 4: Speak with Current and Former Franchisees
• Step 5: Conduct On-Site Due Diligence on the Franchise Opportunity

Let’s go through these steps in some more detail…

Buying a Franchise Step 1: Set Your Priorities in Order to Narrow Your Focus

One of the very first things you need to do as a prospective franchise buyer is to form a list of your top priorities.  The list doesn’t have to be complete or final (chances are it will change at least somewhat as you learn more about the range of franchise opportunities available to you), but it should capture your top must-haves that will guide your initial franchise search.  Your priority list will cover things like:

• The type of business you’d like to be in (from general preferences like “I’d prefer to work with consumers” or “I’d like to be in a business to business franchise” to more specific criteria like “I want to invest in a pizza franchise” or “I want to get into a business consulting franchise“)
• Whether you are looking for a large, established industry (e.g., general fast food) or a smaller but faster-growing space (e.g., healthy and organic food franchises)
• Whether you are looking for a large, established brand (e.g., Subway, SERVPRO, or Chick-fil-A), or a rapidly growing, up-and-coming concept (e.g., groOrganic or MiniLuxe)
• How much training and ongoing support you’d like or expect to receive from your franchisor
• Where you’d like to operate your franchise (most franchises only target certain states for expansion in a given year)
• How much you can afford (or plan) to invest
• …and so on

These are just a few common examples — there could be any number of different items that you would consider your top priorities because they reflect what’s most important to you, which is what conducting a personalized franchise search is all about.

Once you’ve pulled your priority list together, you’ll want to use that list as a filter to get an initial sense for the industries and individual franchises that could match your top priorities.  This will help you narrow your area of research from thousands of franchise opportunities to perhaps a few dozen.  To work through this process, you can browse franchises by industry or use the Franchise Selector Tool (which lets you filter by industry, location, or preferred investment level) on the FranchiseHelp.com homepage to quickly search through and filter down your options.  Spend some time with these tools – they’ll help you to answer your initial questions and narrow your focus to a “hit list” of the dozen or two companies that best meet your priorities.  Those are the franchises you’ll be exploring further.

Buying a Franchise Step 2: Explore Your Options at a Franchise Show

Once you’ve assembled your initial “franchise hit list” to explore further, it’s time to ask some questions.  Going through a detailed Q&A with several dozen franchises can be time consuming and impractical — you can’t fly to every franchise’s HQ to meet with their corporate staff — so you need a way to meet with as many franchise representatives as possible in a short window of time.  Attending one or more franchise shows or franchise expos is a great way to accomplish this task (you can search through our franchise shows list to find one coming to your area). Most franchise shows will feature anywhere from a few dozen to several hundred franchises gathered in a convention hall, with hundreds or even thousands of individuals just like you going from booth to booth to learn more about companies that pique their interest: think of these events as speed dating for the potential franchise owner!  You won’t learn everything there is to know about an interesting franchise at a franchise show, but you will learn enough to cross opportunities off of your list that don’t truly meet your criteria.

When attending a franchise show, always keep two things in mind:

• First, make sure you are dealing with a true franchise (as opposed to a business opportunity or “biz opp”).   A real franchise has to file a franchise disclosure document (FDD) / uniform franchise offering circular (UFOC), which is an FTC (Federal Trade Commission) mandated document that is supposed to be filed yearly and which explains, in detail, the terms of the franchise opportunity. If the system doesn’t have an FDD filed in the state you’re looking to operate in and they didn’t receive a special exemption from that state permitting them to skip the filing requirement, it’s unlikely you’re dealing with a bona fide franchise.
• Second, don’t just walk around the franchise convention floor collecting brochures, swag bags, and pamphlets! You should show up with a list of the companies you’re most interested in exploring and should make a point to engage them in discussion. But how do you know which questions to ask? Take out the list of priorities that you created back in Step 1 (setting priorities) and start asking the representatives of the franchises you speak with whether their opportunity satisfies your most important criteria.

For a more detailed discussion of how to make the most out of the franchise show experience, you’ll want to read through our tips for attending a franchise show — a handy, printable guide that goes into greater detail about the franchise show experience.

Buying a Franchise Step 3: Dig into the Details

After reviewing the profiles of franchises of interest online and speaking with their representatives at a franchise show, you should have cut down your list of potential franchise opportunities to perhaps a half dozen or so.  This is when it’s time to get down to the details! Get your hands on a copy of the FDD / UFOC of the franchises you’re most seriously considering.  The Franchise Disclosure Document / Uniform Franchise Offering Circular breaks down the details of the franchise offer, from a description of the business, to a breakdown of the expected costs of investing and running a location, to a discussion of the franchise’s key executives, to a list of any ongoing litigation that may raise red flags for you as a prospective investor in a franchise, among many other crucial details.

With FDDs in hand, you can begin to:

• Compare expected start-up costs, ongoing expenses, and potential revenues of the franchises you’re considering
• Understand the amount and style of initial training and ongoing support that will be offered
• Review various franchises’ rates of expansion
• Compile a list of current and former franchisees (so you can ask them the really tough questions) of your target franchises (as well as similar lists for one or two of their closest competitors)

Estimating potential sales, cash flow, and profit for a franchise is a key element in choosing a profit-making franchise.  This job isn’t always as easy as it should be.  Neither the Federal Trade Commission (FTC) nor any of the states require a franchisor to break down the performance of each individual franchisee in their system.  However, franchisors are allowed to provide a voluntary written “earnings claim” or “financial performance representation” (otherwise known as Item 19 in the FDD) in their disclosure document.  Roughly 1/3 of franchisors currently choose to make this voluntary disclosure of financial performance.  The good news is that competitive pressures will certainly continue to increase the number of franchisors that include earnings claims, since savvy investors know that it is often a good sign if a franchisor is willing to share earnings claim figures.  Make sure to take down notes on what you find – you’ll be asking questions about it later.

One of the benefits of buying into a franchise system is the training and ongoing support that the franchisor should offer. The FDD will detail for you both the type and duration of training as well as more subtle information like the length of the franchise operating manual (which should detail the franchise’s “secret sauce” business process step-by-step, like you would outline the steps to assembling a new entertainment center).  Take note of what you find – you’ll be asking investors in the system to give you their own take of what the franchise claims in their disclosure document.

Review the “List of Outlets and Franchisee Information” (Item 20 of the FDD) to find the tables that outline the total number of franchise unit openings and closings.  These tables will list the actual franchise outlets at the start of the year, the total number at the end of the year, the number that were sold or transferred, and the number that were terminated.  The franchisor should disclose this data going back several years.  With these basic figures you can easily determine how fast a franchise is expanding (or if they are actually contracting by closing more locations than they open in a given year).  While the fastest-growing franchises aren’t necessarily the best franchises (maybe they’re not selective enough in awarding franchise licenses?), it’s important to understand the trends among the franchises you’re considering.  Jot down any interesting data points or impressions you get from reading this FDD section for the franchises you’re considering as well as their closest competitors.

While you’re reviewing the FDD Item 20, make sure you also find and print out the list of current and former franchisees.  This alone is an unbelievably rich resource — you can actually find the name, address, and contact information (often a phone number or email address) of people who are actually currently invested in the franchise system you’re considering (as well as the information of those who recently left the system or had their license terminated).  From these tables you’ll want to create a list of the names and addresses of franchisees who are close to you.  You’ll also want to create a separate list of current and former franchisees who are too far for you to visit.  Finally, repeat this process for at least one of your target franchise’s closest competitors.  You’ll be comparing answers from all these sources.

Buying a Franchise Step 4: Speak with Current and Former Franchisees

No amount of research can supplant the need to speak with current and former investors of a franchise for yourself.  Taking the questions you developed from reviewing the FDDs — questions about the business, questions about training and ongoing support, questions about the Item 19 (earnings claims) statements, questions about the expansion (or contraction) of the system — and get them all in front of you in one place.

Now it’s time to ask some tough questions of the world’s experts — the current and former franchisees themselves! Start emailing or calling the individuals found in the list of current and former franchisees you compiled in Step 3.

This is a critical piece of the due diligence puzzle, but for many prospective franchisees, it can be an intimidating step.  After all, current (and former) franchisees must be very busy people, right?

This is true, but don’t forget that current and former franchisees were once in your exact same position; if approached correctly, most would be happy to offer their opinions and advice.

So, how can you approach a current or former franchisee (in person, by phone, or by email, in decreasing order of preference) in such a way that they will be willing (even enthusiastic) to speak with you?

• First, let them know who you are and that you are seriously considering joining the franchise system they are now (or recently were) a part of;
• Second, let them know where you found their information (most likely the Franchise Disclosure Document);
• Third, make it clear that you’ve already done substantial research on the franchise industry and their particular franchise system (nobody wants to waste time speaking with someone who isn’t serious enough to do their own homework);
• Finally, ask if they would be wiling to speak with you for 15-20 minutes in order to share their expertise and address a few lingering questions that will help you to make a truly informed decision.

At this point the vast majority of franchisees will say that they would be happy to speak with you, and you should feel free to go through your Q&A list with them.  This is your golden opportunity, so feel free to go into details like:

• “Are you making as much money as you had anticipated and how long did it take your unit to become profitable (if it is)?”
• “Are you happy with the training and support provided by the franchisor?”
• “What kind of hours were you working in your first year in the business?  In the second year?”
• “What do you know now that you wish you knew before you invested?”
• “What other franchises were you considering and why did you choose this franchise over the others?”

These questions may seem basic, but through the answers you receive you’ll gain quite a bit of insight.

When speaking with franchisees, try to determine, as best you can, why some were more successful than others. Ask yourself: Is the franchisee taking full advantage of the system? Is the franchisee putting in the requisite time and effort to be successful?  Perhaps the owner is absentee and not very involved.  Perhaps the owner doesn’t quite follow the franchise system’s process.  If you speak with a former (or current disgruntled) franchisee, try to ascertain if there were problems with the system or if the problems were caused by the specific franchisee.

Buying a Franchise Step 5: Visit Franchise Locations (and Competitors)

Even if you discover a great concept with seemingly happy franchisees, to get a really good understanding of what to expect you’ll want to visit active franchise locations or meet face-to-face with several current franchisees.  Again, working with the list of franchise outlets that you compiled from the FDD in Step 3, you should map out a dozen or so people whose locations you can visit and / or with whom you can meet face to face. Remember not to limit yourself to just talking to franchisees directly related to your own franchise of interest – you’ll want to speak with competitors as well.  The more variety you get, the better information you’ll have.

Buying a Franchise Bonus Step 6: Accept That You Can’t Know Everything

The most important thing a potential franchisee can do to ensure success is to know everything they possibly can about the company they’re getting involved with before investing, but it’s unrealistic to expect that you could ever know everything.  What you can do is take the right steps to make sure that you know the most important things (and that alone will require quite an effort).  It may require months of research — from reviewing opportunities online to attending a franchise show to speaking with current and former franchisees — before you are ready to select and invest in your own franchise.  There’s no question it’s a lot of work, but if you proceed diligently and intelligently through the steps outlined above, you’ll have started down the right path to a decision that could pay back your efforts for years to come.

Trademarks

First and foremost, it is important to clarify that these are in fact trademark-related symbols, and thus they should be used only in connection with your business’s trademarks. Thus, for example, it is improper to write “Benjamin’s Buttons℠, Inc.”, because in the context of an official company name, there aren’t any trademark implications. Remember, trademarks are to be used as adjectives – to identify the source of specific goods or services – and thus not all references to your trademarked term or phrase will warrant use of the trademark symbols.

That said, it is important to understand when use of the symbols is proper, and to institute a procedure for ensuring widespread and consistent use of the proper trademark symbols. Failure to do so won’t result in trademark rights, but using the symbols will help put start-ups and competitors on notice that you are serious about protecting and enforcing your valuable trademark rights. Under the law, and particularly in light of widespread misconceptions about what rights are and aren’t associated with various forms of trademarks, it just makes sense to use the trademark symbols as another step toward (hopefully) staving off unnecessary disputes and legal expenses.

TM and SM

The TM and SM symbols are for use with unregistered trademarks. By “unregistered,” I mean trademarks that aren’t registered with the USPTO. State-level registration does not confer the right to use the (R) symbol, and trademarks subject to pending applications with the USPTO aren’t considered “registered.”

“TM” stands for “trademark,” and should be used with unregistered trademarks for products - software, clothing, hard goods, foods, and the like. “SM” stands for “service mark,” and thus should be used only in connection with unregistered trademarks for services.

Circle R

The “(R)” symbol should be used on all trademarks registered with the USPTO. While this sounds straightforward enough, there are a few important points to keep in mind.

First, if you register a design trademark, you generally are going to be limited to using the (R) symbol in connection with the design as a whole. Thus, you generally won’t be able to use the (R) symbol in plain-text uses of the trademark. Likewise, if you register a words-only trademark, your design logo as a whole generally won’t be covered by the registration. Because of this, business owners are generally well-advised to seek USPTO registration for both the design and words-only versions of their trademark.

Second, trademark registrations are specific to the goods and/or services identified in your trademark registration application. Thus, if you register your trademark for use on one line of products (such as whole-bean coffee), and then also start using it on another line (such as coffee mugs), you may be limited to using the “(R)” symbol only with your original product line until you obtain a supplemental USPTO trademark registration (this is one reason why business owners should be seeking trademark registration as early as possible).

Circle C

As a side note, the (C) symbol designates copyright protection, not trademark. Copyrights protect creative expressions of ideas, whereas trademarks protect brands, logos and other identifiers of source. Thus, the (C) symbol should be used only when placing copyright notice on proprietary materials or online content.

Jeff Fabian assists business owners in protecting their brands so that they can stay focused on running their businesses. Visit www.fabianip.com for more information, and follow Jeff on Twitter @FabianOnIP.

This article is provided for informational purposes only, and does not constitute legal advice.

Buying a franchise is usually a very large investment for most folks. It would seem logical, then, that when you buy a franchise, particularly one from an established brand, that you have the right to expect that your franchisor owes you a duty to be competent in the same way that your dentist does. But most franchisors vigorously dispute this proposition and argue the opposite, i.e. that there is no duty of competence in franchising. They often argue that even if the franchisor makes a mess of the brand, it is simply your tough luck.

I dissent from that view. To be clear, there is no no claim in franchising under tort law for “negligent franchising” in the same way that there is a claim for negligent driving or negligent doctoring. And its true that most franchise agreements do a pretty good job of disclaiming the existence of any warranty.

Good Faith And Fair Dealing

The duty of competence in franchising comes from the implied covenant of good faith and fair dealing, which is conveniently summarized in Section 205 of the Restatement (Second) of Contracts. While contract law can change a bit from state to state, Section 205 speaks for most states in stating “every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.”

Under Section 205, “good faith performance … of a contract emphasizes faithfulness to an agreed common purpose and consistency with the justified expectations of the other party” – which surely include the expectation that your franchisor knows what it is doing. “Bad faith” includes conduct that violates “community standards of decency, fairness or reasonableness…” and as a matter of law in most states, a “lack of diligence and slacking off” would breach the implied covenant.

Slacking Off Is Never Permitted

In a complaint against a Pennsylvania franchisor that franchises the manufacture of building products, but fell asleep at the switch and failed to keep its product in recognized compliance with national building code standards, causing its franchisees to suffer lost sales, we cited these Restatement provisions along with some cases that applied them in arguing that the franchisor was in breach of contract.

Similar allegations have been made against a pizza franchisor that rolled out a deep dish offering without adequate testing for taste and ease of preparation; a chain of steakhouses that insisted on a new salad and desert bar concept that was a huge flop; and a national convenience store franchise that mandated its franchisees to use a back office computer system that just doesn’t work. And those are just some of my cases in which the duty of good faith and fair dealing has been used to challenge the lack of franchisor competence.

The common denominator is that the franchisees in these cases were not entitled to a guarantee of business success. But they were entitled to argue that the franchisor failed to meet standards of reasonableness and diligence. As a practical matter these cases could turn on issues such as whether the franchisor did its homework before implementing a mandate to its franchisees and whether the franchisor was responsive when problems developed.

In other words, these cases are usually fact intensive.

The Universal Bill of Rights

The Universal Bill of Rights for franchisees recently published by the Coalition of Franchisee Associations builds on the Restatement of Contracts (and the common law of most states) by expressly providing that the franchisor’s duty of good faith includes the duty to act with due care in making decisions about the franchise.

The Proposed California Statute

Meanwhile in California, a new state law has been proposed (and at this writing has cleared an initial committee review) that would significantly enhance the rights of franchisees in almost all aspects of their franchise relationships. As drafted, the Level Playing Field for Small Business Act of 2012 – Bill AB 2305 would expressly require that franchisors meet a duty of competence when managing their systems, and it would create a statutory cause of action against franchisors that fall short.

Statutory remedies are always better than common law remedies, because judges usually feel some obligation to carry out the legislative command, and because the winning plaintiff can usually recover attorneys fees and possible enhanced damages that are intended to serve as a deterrent.

Predictably the franchisor lobby (led by the International Franchise Association) is working hard to defeat this bill, but regardless of how things turn out in the Golden State, it remains clear that the duty of competence in franchising is firmly rooted in the established law of good faith and fair dealing that applies in most states.

As a final word, everyone should remember that the duty to act diligently and reasonably, et cetera, is a two-way street. Both franchisors and franchisees have the right to expect this level of competence from each other.

1. Know Your Purpose. When selecting a trademark, consider your goal—is it to tell people what you do within the name of your business, to have an original name that stands out from the crowd, or a combination of both? Trademark law affords different levels of protection (and in some cases no protection at all) depending on the nature of the term (or terms) you choose as your trademark.

2. Be Unique. Regardless of the trademark you choose, it will need to be sufficiently unique in order to (i) be protectable, and (ii) keep you out of trouble for trademark infringement.

3. Make Sure It’s Unique. Deciding whether your trademark is sufficiently unique involves more than just checking for the “.com” domain name and running a search on the USPTO database. Experienced trademark attorneys can help develop a list of search terms, obtain comprehensive search data, and interpret that data in a meaningful way. Self-service options like www.trademarkintel.com are available as well.

4. Know What You Sell. For the average business, trademark protection is going to be limited within the market for the goods or services that it sells. This is why there are so many “Royal” and “Smart” trademarks (to give just two examples) out there. Understanding the scope of your (and others’) trademark rights is critical to the trademark selection and protection processes.

5. Know Your Goals. If you plan to expand nationally through a franchising or licensing program, it will be absolutely critical to know what pre-existing trademark rights are out there. If a regional operator owns unregistered “common law” trademark rights, they might be able to prevent you from entering key markets even after you obtain USPTO trademark registration.

6. Understand the Scope of Trademark Registration. Trademark registration with the USPTO gives trademark owners exclusive rights to use their trademark in connection with the goods or services listed in their registration application, subject to any pre-existing “common law” trademark rights. If you (or your licensees or franchisees) sell various types of goods and services, you may need to seek trademark registration in several “International Classes,” and you will need to make sure your trademark is available in each of these Classes before you start to use it.

7. Consider Licensing or Acquisition; File for Cancellation. If your desired trademark (or a “confusingly similar” trademark) is already in use by someone else in a competing product or service line, consider seeking to obtain rights in the trademark through a license or transfer agreement. If a USPTO trademark registration stands in your way but the trademark does not appear to actually be in use, consider seeking cancellation of the registration to allow you to move forward with your chosen trademark.

8. File for USPTO Registration Early. The USPTO allows business owners to file for trademark registration as soon as they develop a bona fide intent to make use of the trademark in commerce in the future. As a result, and because more and more trademark applications are filed every day, the best practice is to file early and often to protect your new trademarks.

9. Secure Domain Names and Social Media Accounts. Once you decide on your trademark, act swiftly to acquire all relevant and associated domain names and social media accounts. A consultation with an experienced trademark attorney can help you determine what to look for beyond just the trademark itself.

10. Understand that This is Just the Start of the Process. Selecting a new trademark is just the start of the trademark protection process. Registration is the next step, and then from there trademark owners need to engage a comprehensive and effective trademark monitoring service to make sure their exclusive rights are maintained and enforced on an ongoing basis.

Jeff Fabian assists business owners in protecting their brands so that they can stay focused on running their businesses. Visit www.fabianip.com for more information, and follow Jeff on Twitter @FabianOnIP.

This article is provided for informational purposes only, and does not constitute legal advice.

We begin with a simple question: Which of the following is the most likely to occur first?

a) America’s leading franchisors will voluntarily embrace the “Franchisees’ Bill of Rights” that has been published by the Coalition of Franchisee Associations (see here)

b) The U.S. Congress will pass comprehensive “fair franchising” legislation (or the Federal Trade Commission will enact a new regulation) that effectively implements the Bill of Rights and makes further efforts by franchisee association leaders unnecessary.

c) The U.S. Supreme Court will decide a “fair franchising” case that establishes, once and for all, that contract provisions to which franchisees usually object are “unconscionable” because they “shock the conscience” of the Court.

d) None of the above.

Here’s hoping that you rejected (d), which obviously would be the pessimistic view, and made your selection among (a), (b) and (c). After all, it is pretty clear from medical science that optimists tend to live longer.

And for all of you optimists out there, I predict that the correct answer is (a), that sooner or later (and hopefully sooner) the franchisor community will voluntarily embrace the Bill of Rights, either as a whole or in substantial part.

Freedom of Association

The first of twelve rights that franchisee advocates insist ought to be mandatory for every franchisee is that “A franchisee may freely associate with other franchisees or associations.”

This right deserves to be the first one on anyone’s list, as it strongly evokes the spirit of the First Amendment in the Bill of Rights to the U.S. Constitution, in which every American is guaranteed the freedom of speech and the right to peaceably assemble and to petition the government for a redress of grievances (in addition to providing for the freedom of the press and for religious liberty).

As Americans we sometimes take our fundamental liberties for granted. None of us, I assume, would ever tolerate living in a country in which citizens are denied the right to talk to each other about matters of common interest under the threat of being arrested or worse.

By the same token,why should any franchisee be deprived of the right to speak to other franchisees about matters of common interest and to “peaceably assemble” in an independent association and to “petition” the franchisor to “redress grievances?”

From this perspective, efforts by franchisors to prevent their franchisees from forming independent franchisee associations, which facilitate communications among franchisees and with the franchisor, seem downright un-American. Worse, such efforts often do nothing more than drive the franchisees underground, into anonymous Internet chat rooms and the like, where the things that are said in darkness are usually worse, in the sense of being destructive and not constructive, than anything that is said in the light of day.

To be clear, we are talking about the right of franchisees to form independent associations that are incorporated under state law and have a legal existence independent of the franchisor. Franchisor-sponsored advisory councils may be fine as far as they go, but often they are no substitute for an association that is truly independent.

In its amended franchise rule, the Federal Trade Commission gave the cause of independent franchisee associations a well-needed boost when it provided that franchisors must disclose whether an independent association exists in its system, and on request the franchisor must disclose the contact information for the association as part of Item 20 in the Franchise Disclosure Document. (See 16 CFR 436.5(t)(8)).

The question every franchisee or potential franchisee should be asking is: Do I want to be in business with a franchisor that is hostile to the very basic right of forming an independent association? And by the same token do I want to be in a system with other franchisees that might be too lazy or timid to start one?

Of course, if the answer is that everyone is too busy making tons of money to bother with an association, you might decide to proceed anyway. But history shows that independent associations play a vital role in good times as well as bad. They are a vital ingredient to healthy franchise systems that no franchisee should be without.

FranchiseHelp: Tell me about your decision to leave finance and open a spa? What aspects of the spa industry attracted you to the opportunity?

Alla Shapiro: I loved working in financial services but I always wanted to own and operate my own business.  When I started the process of researching different business opportunities, I looked at different franchise systems and decided that I wanted to own a spa.  One of the major contributing factors was meeting the CEO of the Woodhouse Corporation, Jeni Garrett, who is very passionate about this business and the Woodhouse franchise.  I loved the upscale, holistic concept of the spa, which creates a great experience for its guests, and I wanted to be a part of it.

FH: Did your finance background and MBA experience help you in opening your own franchise? If so, how?

AS: The finance background is helpful but absolutely not necessary in opening the franchise.  It was helpful that I knew how to read the financial statements, but it is not a skill that cannot be learned quickly.  In retrospect, any experience that one has is helpful in opening and running your own business.  You are faced with so many different challenges on daily basis, therefore  the more experience you have with Marketing, Operations and Finance, the more tools you have to solve these problems the best possible way.

FH: Why did you decide to open a spa as a franchisee as opposed to an independent business?

AS: I did not have enough business knowledge to open an independent business.  A good franchise system provides the support you need in the aspects of the business you have no experience in.  The Woodhouse franchise has tremendous support and helped me to come up to speed very quickly.

FH: What were some of the most important elements you analyzed when deciding which franchise/non-franchise business to run?

AS: I wanted to love what I do – that was the major factor.  I looked at how the current business owners in the franchise system perform and I asked many questions about their experience with their businesses and the franchisor support.

FH: How much of a challenge was it to get your business off the ground (financing, location scouting, getting clientele, etc.)?

AS: I had a difficult time, initially, starting the business.  I had no problem with finding financing, but the major difficulty was finding the appropriate space, and the build-out process was very difficult and unpredictable.  It was very challenging to stay in my budget and to finish the build-out on time.  Getting clientele was not difficult!  I followed the franchise system and it worked pretty easily.

FH: What do you do in terms of marketing and advertising for your customers?

AS: The major portion of our advertising is online through Google and Facebook.  We also advertise through local magazines, participate in SpaWeek and SpaFinder Wellness week.  But most of our guests come through word of mouth referrals.

FH: How is the economy affecting your spa and the overall industry?

AS: The business opened in summer 2008, right before the last recession.  To be honest, it was a difficult first year.  However, since then, we’ve been steadily growing every year and even though the economy is not at its best we are performing really well.

FH: What new trends are you noticing with customers and offerings? What are some new developments you’ve affected to keep up?

AS: I notice that more and more guests use our online gift card system and many book their services online.  We used to mail many more gift cards and now a significant number of people opt to receive electronic gift cards.  I also believe that in terms of advertising, it is becoming more important to have a significant presence online and to do social marketing through Facebook and Twitter.

FH: What advice can you offer to others who are thinking of leaving one career path to embark on another?

AS: The most important thing is to find what you love to do.  That will allow you to persevere in difficult times and to become successful.  Also, it is very important to not give up.  As a business owner, you will find yourself in very difficult situations in which it is too easy to give up. Do not become emotional when solving difficult problems as that prevents you from finding the best solution possible.  And there is always a solution to every problem.  At least in my experience!

For example if you type in “the best lawyers online,” several groups of lawyers will be displayed advertising themselves as the best. The problem with finding lawyers online is that you have no idea how good they really are until you have actually retained them, and by then it might be too late. Here are some tips to finding the best lawyers online.

1. Many state bar associations have a board certification process along with rules that govern legal specialties. Check to see that the lawyer online you choose has the proper credentials and board certifications.  LawyersOnline.com lists all of the state bar associations.

2. You can check out the lawyer’s web page to determine whether he or she is board certified in the specialty or subspecialty you need.

3. Ask for references from the attorney and call those references. Google the lawyer’s name online and see if the lawyer has had any bad reviews.

4. Check with the better business bureau before retaining any lawyer online

The bottom line for finding a lawyer online is that it doesn’t cost anything to find out if you have an actual legal problem that requires a lawyer to represent you. In other words, you can call any lawyer and briefly tell them about your case before meeting with them. Most lawyers will advise you on whether they can help you before making an appointment. If they will not answer your questions before you come in, move on. Once you have found two or three lawyers you like, set up an initial consultation and let them know right up front that you are interviewing other attorneys. Ask for a free 20 or 30 minute consultation to determine if the two of you can work together. Most attorneys will agree to this although most people never think to ask for it.

Other major advantages of home-based franchise opportunities are low start-up costs and overhead expenses. The initial investment required for an at-home franchise is typically much lower than a conventional franchise, often in the $15,000-$30,000 range. Some home-based businesses can be started with just $10,000. Since franchisees do not need commercial space, work-from-home franchises also have low overhead costs and require little to no inventory.

FranchiseHelp lists many of the best at-home business opportunities available, so click here to find the best franchise for you.

Home-Based Franchise Opportunities in the USA

Work-from-home franchises are distinguished by their flexibility, and their actual business can be in many different industries. Home-based franchise opportunities exist in sectors ranging from financial and consulting to healthcare to business-to-business services.

What types of home-based franchise opportunities are available? What are the best home-based franchises in the US? See below for more information on at-home businesses.

Types of Home-Based Franchises for Sale

There are many different types of home-based franchises available for prospective franchisees. The selection is diverse, and different franchisors may allow home-based franchising, but below are some of the most common types of home-based franchises.

• Cleaning Franchise Opportunities for Sale
• Senior Care Franchise Opportunities for Sale
• Tutoring Franchise Opportunities for Sale
• Child Education Franchise Opportunities for Sale
• Computer Repair Franchise Opportunities for Sale
• Internet Franchise Opportunities for Sale

The Top 5 Home-Based Franchises

Home-based franchises have the advantages of lower start-up costs, low capital requirements, and low overhead costs. These are five of the cheapest home-based franchise opportunities available in the US. All of these at-home franchise have initial investments under $1,000. Click on each name for more in-depth information on the business and capital requirements, as well as to request franchisee information.

1. Hawkeye’s Home Sitters Franchise

   This house-sitting service offers a range of services such as pet-sitting and home maintenance while homeowners are away. The business requires only $1,000 in capital for start-up.

2. Champion Clean Franchise

   The cleaning service franchise offers professional cleaning for government buildings and commercial buildings. The franchise’s capital requirement is only $1,000.

3. Stratus Building Solutions Franchise

   The commercial cleaning service offers cleaning and facilities management services to commercial properties. Stratus requires $1,000 in capital.

4. Mint Condition Franchise

   This commercial cleaning franchise provides janitorial services and commercial cleaning. The franchise can be started with just $1,000 of capital.

5. JAN-PRO Cleaning Systems Franchise

   The international franchise offers commercial cleaning services and requires $1,000 in capital.

FranchiseHelp: What skills or knowledge from your previous company, AirLogix, did you find crucial in starting up and running HCPP?

Barbara Hendon: Every experience we’ve had contributes to our ability to start and manage our business.  We opened offices and provided services in 17 states during our time with AirLogix.   I would say the most crucial skill is our ability to replicate our business model in multiple sites with quality and precision while measuring the results.

FH: They are both healthcare-focused companies, but focus on different areas and functions of the industry.

BH: Yes, they are different but our philosophy is not.  As our mission statement says, we are committed to quality and affordable health care for all in need.  By managing the business aspect of our physician clients’ practices, they can focus on patient care.

FH: How did you get the idea for the franchise?  And what were some of the challenges in starting up the company?

BH: We first thought we would expand our services by opening additional offices and hiring staff, but decided that a franchise model would allow others to realize the American Dream by owning their own successful business.  Business ownership is an experience we wanted to share with those who have the drive and determination to work hard.

FH: What are the most important things a prospective franchisee or employee should know or be prepared for when entering the healthcare billing and management industry?

BH: They need to be prepared for a dynamic work environment, where policies and processes are constantly changing.  The advantage of being in a franchise system is that these policies and processes will be disseminated to them by the Franchisor.  Most medical billing professionals have a difficult time keeping up with the ever-changing components and regulations of medical insurance and governmental payers. As a Planned Practice Management company, billing is only one component of services we provide.  However, it is the most important service.

FH: Since regulations and coding are always changing, how do you keep franchisees, employees, and technology updated with the latest changes?

BH: Our HCPP National office has the experience and resources to monitor, test and institute changes to our internal processes, and stay current with payment policies and billing/coding/documentation regulations.  Our franchisees will be notified and instructed upon the change of processes that affect our RevenuePath®, our proprietary system of revenue cycle management.  Our technology partner is also proficient and skilled in updating the software program that houses and drives the RevenuePath®.

FH: How do you keep ahead of the curve when it comes to competitors, privately-owned or in-house or similar franchises?

BH:

• We provide Planned Practice Management, so our goal is to enhance profits for our clients, not just billing and collections.
• We are located in the USA; we do not out-source to an overseas call center.
• Our franchisees must have a professional office.  We do not office from the home.
• Franchisees are supported by a network of resources that most “mom and pop” offices are not. Who is going to do the work when “mom and pop” go on vacation?  Who is going to do the work if the in-house person gets sick and is out for two weeks.
• Our software is state-of-the-art and continually upgraded.  Some competitors are bogged down by an antiquated system they can’t afford to purchase upgrades or replace.
• Our concept delivers a significant result using a proven process.  Our audits support that claims are paid correctly 98% of the time, the first time! As a result, our clients generally realize a 15% increase in revenue, a healthier cash flow, and enhanced profits.

FH: As a franchisor, what are some of the most important things you provide franchisees related to healthcare management?

BH: Proven processes and 60+ years of collective experience.

FH: Where do you see HCPP going in the next five years?

BH: We have a very conservative growth plan to produce fifty franchises by the end of 2014 which will give us the opportunity to provide outstanding support to our franchisees and their clients.  We also have other ideas of services we can implement that will complement our Medical Practice Management and Profit Enhancement Services.

FH: Are there any changes you foresee in your industry?

BH: The Patient Protection and Affordable Care Act (PPACA) signed into law on March 23, 2010, reforms certain aspects of the private health insurance industry and public health insurance programs including increased coverage of pre-existing conditions and expanding access to over 30 million Americans.  This means that there will likely be even greater pressure on physicians and health care providers to focus their time and energy on providing patient care, lessening their practical ability to focus on the management of their practices.  Consequently, it may make more sense for them to seek help regarding practice management, including outsourcing certain management aspects to professionals that are experienced in handling the broad spectrum of issues regarding compensation and the cash flow of their practice.  Finding the right Practice Management partner may be of paramount importance to the success of their practice. HCPP is prepared to be their outsource solution.