Starting your own business can be a daunting task; however, nearly everyone dreams of doing just that. Statistically speaking, the odds are greatly against you. The vast majority of startups fail in the first year of operation. However, there is a way that can really improve your chances of running a successful business. This can be accomplished by becoming a franchisee.
Buying a franchise is an option, it is buying into an existing business model were you will run your own business in a defined geographical area, you will receive support in the early stages when your business is starting up and you will be expected to use the methods and systems defined by the franchise. This may sound like a great option in that it does provide a tried and tested business model and does give the new franchisee support through the difficult start up phase of the business. However the purpose of this article is to highlight the disadvantages of the franchise, below are some of them:-
- buying a franchise can be very expensive, in addition there are usually ongoing annual franchise fees and a slice of your takings will have to be paid as royalty fees.
- one of the advantages of a franchise can also be one of the great drawbacks, the franchise is a tried and tested business model with everyone expected to strictly adhere to the defined methods and systems, which may not suit everyone especially the more entrepreneurial franchisees.
- the franchise is usually based on a geographical area and each one can be quite different to another, so the types of business and the demographics of a particular area may not be quite so advantageous to one franchisee as another.
- the actual franchise agreement should be considered for things like the duration of the agreement, thought must be given to what happens when the agreement ends, will the annual franchise fee go up?, could you work within the confines of the franchise for that period of time?
This list is not exhaustive, this article is not intended to stop people going down the franchise route but simply to highlight the drawbacks of the franchise model so that people may make a more balanced and informed decision.
Tags: Business, Franchise, Rental Services
The short sale process can be a daunting experience for many homes sellers. Not only are many faced with making a difficult decision. Now they have to go through a complicated sales process that will take much more time than a standard sale.
The short sale process is the steps that have to be taken in order to have the Lender or lenders agree to forgive the debt and accept payment in full from the proceeds that can be gained from selling the home at the time of sale
First, the seller decides to short sale. Many times this decision is reached after the homeowner is in default on mortgage payments but it’s not necessary to be in default. Better yet if the seller is current. This can open the doors to short selling the home and buying a new home much sooner than actually being in default.
Once this decision has been made, you contact a trusted real estate professional, preferably well versed on short sales and the process. Many who know what they are doing will have support for the seller and possibly a legal team that can help. The best can offer this at no cost to the seller.
From here the short sale starts to take shape. The property is prepared for sale. Placed on the market at its fair market value, this is very important to ensure the short sale is approved. Once offers are negotiated, they are submitted to the lender or lenders with supporting documentation showing the lender(s) it’s in their best interest to approve the sale Usually this is proven with a hardship letter written by the seller and supporting documents, if there is not enough income to support the continued payments of the property.
The time delays with the short sale process are usually due to the internal process the short sale must take once submitted for approval. The lender will verify value of the home by doing BPO’s and possibly full appraisals, depending on the lender and the position they’re in. If there are seconds or thirds, written agreements have to be secured from the other lenders, agreeing to the settlement amount being offered, if any, by the first lien holder.
The process usually takes from 45 to 60 days depending on the number of loans and the skills of the person contacting the lender(s), though it can take as long as four months.