Franchise and the Social Networks

Franchise and the Social Networks

In business today, the sucess of a franchise is in great way based in the correct use of social networks. Entrepeneurs can't expect that it's just open their doors and clients will come rushing.

Franchise owners nowadays are not only obliged to be skilled and professional in dealing with customers on a face-to-face level, they must also be masters of the virtual world, marketing their business to customers and like-minded companies out there.

But for all of the work that’s involved with building a social media profile, how do franchises track their actual profits?

An aggressive social media promotion spawned corresponding explosions in online interest creating profits in the future. It will be a reflection of the real world. People will start talking about a brand and in consequence the brand will be known and the sales start growing.

Take the challenge to experience with social media. The franchises that take the opportunity begin to see the results because Facebook and Twitter not only create a conversation about franchises, they also create profits.

Low Cost Franchise Opportunities

Low Cost Franchise Opportunities

Many prospective entrepreneurs find their financial resources diminished by the recent and severe economic downturn. Because of this, the appeal of low cost and affordable franchise opportunities has never been greater as of today.

Why choose a low cost franchise?

- Affordability

Low cost franchise opportunities are so appealing today because of there relative affordability. The lower investment required these types of franchises are often able to be purchased by individuals using there owner personal financial resources. This in turn can often eliminate the headaches and time consuming delays many franchise buyers experience when trying to secure bank or financing to purchase a more expensive franchise opportunity.

- Easier to Get Started:

Most low cost franchises tend to be service related they generally don’t require the time consuming build out of a new location. Consequently they can often be up and running very quickly. This is an obvious advantage to entrepreneurs who for various reasons such as a job loss need to get a business off the ground quickly. In fact, many low cost franchises can often be operated from a home office thus even eliminating the need and time to find and lease an office or retail space.

- Easier To Grow Business:

With a lower overall investment required many low cost franchises can often be easier and less expensive to expand or grow. This appeals too many first time and inexperienced small business owners who are concerned about minimizing their risk. The option to grow the business by taking smaller incremental steps and with out making a big investment can be very comforting.

- Lower Overhead Expenses:

Low cost franchises are designed to be an owner operated and generally have little or no staffing requirements. Many are also designed to be either home based business or don’t require expensive and high traffic retail space further reducing monthly overhead costs.

- Offers Potential Better Lifestyle:

Many low cost franchise opportunities today are service related and can be operated from a home office you could potentially have a lot more flexibility in running your business.

Starting a financial franchise business

Starting a financial franchise business

There are many options to choose when entering into the financial and accountancy franchise industry, such as business cost management consulting franchises, accountancy franchises, tax preparation franchises, financial advising franchises, loan franchises and mortgage franchises.

Entry into this industry is fairly easy and financial services franchises usually have high earning potential, as many of their clients are businesses.

These franchises are for to those who want to utilise their financial or accountancy skills and have automatic brand name recognition and support that helps build a successful business from the begining. People who have an entrepreneurial spirit and are attracted to the financial sector but don’t have experience are also great candidates, as franchises provide them with training on how to run the business as well as providing crucial information on the financial market itself.

Once you decide on a franchise that matches your interests, make sure to enquire about important details. Ask how much is the initial investment, if they help you obtain capital and do you have enough working capital on hand for your personal expenses during the initial months of starting the franchised business.

Enquire about projected earnings as well as actual earnings results from their other franchisees, which will give you a realistic idea of what you can expect to make.

Find out about what kind of initial training and set-up assistance they provide, as well as what kind of ongoing training and support they will provide. Most franchises will teach you about the business itself, how to run it, how to use any products or perform any services the business offers, how to hire and manage employees and how to market your business. Make sure you can expect ongoing telephone support and a way to communicate and network with fellow franchisees.

When you are ready to sell your franchise, you want to know your options. Find out how long your contract lasts and if there are any specific rules to when and how you can sell a franchise.

Make sure you’re convinced the financial services and accountancy industry is for you.

Financial franchises in UK

Financial franchises in UK

The UK is an important center of global financial services. The financial services in UK represent the 12% of the GDP and this trend is growing. No matter the state of the economy, financial services are in high demand.

There is a need for financial service and accountancy franchises, especially since individuals and businesses need their taxes prepared, advice on financial matters, firms to take care of loans and mortgages, accountancy assistance and cost management consulting. This wide range of options within the financial and accountancy sectors indicate there are a varied number of franchises available to entrepreneurs who want to pursue specific markets.


Service oriented entrepreneurs are the perfect candidates for these franchises, as many financial franchises require interaction with clients.

Financial franchises also provide all the training necessary to run a successful business.

Financial Services Franchises

Financial Services Franchises

Franchises that offer financial related services such as income tax preparation, wealth preservation, accounting, business consultancy and consumer insurance services generally enjoy very high profit margins for a number of reasons.

This includes low overhead expenses because of generally lower staffing requirements and no absolute need to rent high traffic and expensive retail space.

They offer professional type services the barrier to entry is a little higher. And financial franchises like insurance and tax consultancy franchises offer services that have the ability to generate repeat and residual income.

Franchise Tax in Tahiland (2)

Franchise Tax in Tahiland (2)

Pursuant to the provisions of Section 70 of Thailand’s tax code and Article 12 of Thailand’s tax treaties, just about all amounts paid (other than payments for the purchase of physical goods) by a Thailand franchisee to a foreign franchisor are subject to withholding tax at source at the rate of 15%. A Thailand franchisee is also required to make a 7% VAT remittance to the Thailand Revenue Department on behalf of the foreign franchisor according to the reverse-charge rule prescribed in Section 83/6 of the Thailand tax code.

For both the withholding tax and the VAT liabilities, the tax code clearly prescribes that the liabilities arise when the Thailand payer “pays” the foreign company, and most Thailand franchisees would be remitting the required 15% WHT and the 7% VAT on payment of their franchise royalty fees to the foreign franchisor. But they would not generally be doing so for the local advertising and sales promotion spending paid to a Thailand-based advertising agency/service provider, because for such payments the tax code prescribes the payer having the duty to remit 2% or 3% WHT (as the case may be) and the advertising agency/service provider having the duty to remit the 7% VAT. Surprisingly, the Thailand Revenue officers claimed, for one particular Thailand franchisee, that because the local advertising and sale promotion spending is a condition under the franchise agreement, the sums spent on local advertising and sales promotion were part of the consideration for the right to operate the business, and therefore, the local advertising and sales promotion spending was subject to 15% WHT under the royalty rule and 7% VAT under the reversecharge rule, the same as for the franchise royalty fee.

Franchise Tax in Tahiland (1)

Franchise Tax in Tahiland (1)

Local advertising and promotion spending by Thailand franchisees has been ruled to be a royalty payment under their franchise agreements. Foreign franchisors enter into franchise agreements with franchisees in Thailand in virtually the same way they enter into agreements with franchisees in other countries around the world, and it is normal for the foreign franchisors to incur withholding tax liability in the country of the franchisee when franchisees remit their fees to the foreign franchisor.

But in Thailand, this withholding tax liability has now been extended to the local advertising and promotion spending that is required of the franchisee under the terms and conditions of the franchise agreement. The framework of a franchise agreement is that the franchisor provides the franchisee with access to and the right to use the system and intellectual property of the franchised business for a fee, commonly known as the franchise royalty fee. The franchise royalty fee can be paid up front, and usually, as a percentage of the franchisee’s on-going sales revenues.

In addition to the payment of the franchise royalty fee, the terms and conditions of the franchise agreement requires the franchisee to spend an amount on local advertising and promotion activities (again, usually a certain percentage of the franchisee’s on-going sales revenues). And before a franchisee can carry out the local advertising and sales promotion activities, the franchisee is required to obtain the approval of the franchisor in order to ensure that it complies with the franchisor’s rules and conditions and that it will not harm the brand and the image of the franchised.