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Buying a Franchise in Israel: A solution for a successful aliya ?

When you buy a franchise, you often can sell goods and services that have instant name recognition, and get training and support that can help you succeed.

At Bethel Finance we will review all the steps with you including controlling the obligations of a franchise owner, and all the questions we will ask before you invest.

Here the 5 steps of our franchise advisory solutions

I. The Benefits and Responsibilities of Franchise Ownership

A franchise enables you, the investor or franchisee, to operate a business. You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor’s name for a limited time, and assistance.

The franchisor may provide you with help in finding a location for your outlet; initial training and an operating manual; and advice on management, marketing, or personnel. The franchisor may provide support through periodic newsletters, a toll-free telephone number, a website, or scheduled workshops or seminars.

Dont you think is the best way to start your new life in Israel ?

Buying a franchise may reduce your investment risk by enabling you to associate with an established company and will alllow to earn your income in Israel

Typically, franchise systems have several components and we will control all the following aspects

Costs

In exchange for the right to use the franchisor’s name and assistance, you will pay some or all of the following fees.

Initial Franchise Fee and Other Expenses: We will make sure that the price is right.

Advertising Fees

You also may have to pay into an advertising fund. Some portion of the advertising fees may be allocated to national advertising or to attract new franchise owners, rather than to promote your particular outlet. We will double check that franchisor will advert for your outlet.

Controls

To ensure uniformity, franchisors usually control how franchisees conduct business. These controls may significantly restrict your ability to exercise your own business judgment.

We, therefore spend the necessary time with you to see what franchise suits you the best in term of site Approval, Design or Appearance Standards, Restrictions on Goods and Services You Sell or even the restrictions on Method of Operation

Israel is a new country for you and the standard of contract are differents :

Our internal lawyers will check the terminations and renewal obligations of the parties

II. Advance Work: Before You Select a Franchise System

Before you invest in a particular franchise system, think about how much money you have to invest, your abilities, and your goals.

Here what we will considere :

Your Investment

  1. How much money do you have to invest?
  2. How much money can you afford to lose?
  3. Are you purchasing the franchise alone or with partners?
  4. Do you need financing? Where’s it coming from?
  5. Do you have savings or additional income to live on while you start your business?


Your Abilities

  1. Does the franchise require technical experience or special training or education (for example, auto repair, home and office decorating, or tax preparation)?
  2. What special skill set can you bring to a business, and, specifically, to this business?
  3. What experience do you have as a business owner or manager?


Your Goals

  1. Do you need a specific annual income?
  2. Are you interested in pursuing a particular field?
  3. Are you interested in retail sales or performing a service?
  4. How many hours can you work? How many are you willing to work?
  5. Do you intend to operate the business yourself or hire a manager?
  6. Will franchise ownership be your primary source of income or a supplement to your current income?
  7. Do you get bored easily? Are you in this for the long-term?
  8. Would you like to own several outlets?

Due to the language issues, you might have difficulties to answer to chose or to find the correct franchise. 

We will spend the time with you to go over all the aspects before selecting the best franchisor for you

III. Selecting a Franchise

Purchasing a franchise is like any other investment: it comes with risk. It is not yet your country, and that is why you are using our advice services. We will study for you the demand for the products or services it offers, competitors that offer similar products or services, the franchisor’s background, and the level of support you will receive.

Here what we will prepare for you :

Demand

  • Is there a demand for the franchisor’s products or services in your community?
  • Is it seasonal or ever- green?
  • Could you be dealing with a fad?
  • Does the product or service generate repeat business?

Competition

  • What’s the level of competition – nationally, regionally, and locally?
  • How many franchised and company-owned outlets are in your area?
  • Does the franchise sell products or services that are easily available online or through a catalog?
  • How many competing companies sell similar products or services?
  • Are they well-established or widely recognized by name in your community?
  • Do they offer a similar product at a similar price?

Your Ability to Operate the Business

Sometimes, franchise systems fail.

  • What will happen to your business if the franchisor closes up shop?
  • Will you need the franchisor’s ongoing training, advertising, or other help to succeed?
  • Will you have access to the same suppliers?
  • Could you conduct the business alone if you have to cut costs or lay anyone off?

Name Recognition

Buying a franchise gives you the right to associate with the company’s name or brand. The more widely recognized the name, the more likely it is to draw in customers.

We will consider:

  • name and brand recognition for the company and its product or service
  • whether the company has a registered trademark
  • how long the franchisor has been in business
  • whether the company’s reputation is for quality products or services
  • whether consumers have filed complaints against the franchise.

 Training and Support Services

What training and continuing support does the franchisor provide? Does the franchisor’s training measure up to the training for workers in the particular industry? Can you compete with others who have more formal training? What backgrounds do the current franchise owners have? Is your education, experience, or training similar?

Franchisor’s Experience

Many franchisors operate well-established companies with years of experience both in selling goods or services and managing a franchise system. Some franchisors started by operating their own business. There is no guarantee, however, that a successful entrepreneur can successfully manage a franchise system. Find out:

How long the franchisor has managed a franchise system ?

Whether the franchisor has enough expertise to make you feel comfortable. If the franchisor has little experience managing a chain of franchises, we will not take any promises about guidance, training, and other support with the proverbial grain of salt…

Growth

A growing franchise system increases the franchisor’s name and brand recognition and may enable you to attract customers. But growth alone doesn’t ensure successful franchisees. Indeed, a company that grows too quickly may not be able to support its franchisees with the support services it promises them.
We will investigate the franchisor’s financial assets and resources to estimate if they are  sufficient to support the franchisees

After all this KYC procedure we will find the right opportunity

IV. Finding the Right Opportunity

Here what we will find out for you :

  1. How long has the franchisor been in business?
  2. How many franchised outlets exist? Where are they?
  3. What is the initial franchise fee? What additional start-up costs can you expect? Are there continuing royalty payments? How much? What do other franchisees pay?
  4. What management, technical, and other support does the franchisor offer?
  5. What controls does the franchisor impose?

V. Investigating Before You Invest : The All-Important Disclosure Document

Before you invest in any franchise system, we will get the copy of the franchisor’s disclosure document.

Here what you will get :

  • Franchisor’s Background
  • Business Background
  • Litigation History
  • Bankruptcy
  • Initial and Ongoing Costs
  • Restrictions
  • Terminations
  • Training
  • Advertising
  • Current and Former Franchisees
  • Associations of Franchisees Operating Similar Outlets
  • Earnings Information
  • Sample Size
  • Average Incomes
  • Gross Sales
  • Net Profits
  • Geographic Relevance
  • Franchisees’ Backgrounds
  • Reliance on Earnings Claims
  • Financial History

To start just send us an email : info@bethelfinance.com