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p ý-I.-1 If. you're not completely ready ta go into business on ycur own, franchising cfers many advantages. -But you have ta do your homework ta niake sure that you're investing in a franchise that's right for you. A franchisee the persan buying the franchise - is buying a proven systemn that enables him or ber ta take advantage cf the parent company's experience, bulk buying power and overal marketing clout. For the franchisor - the company selling the franchises -- franchising represents an alternative financing strategy at a time when the parent company is growing rapidly, but is still toa risky ta, be financed by a bank. "The percentage of individual franchises which fail during their first 10 years is much smaller than the failure rate for most small businesses during the same peiiod,il says Leslie Rupf, president of Zarex Management, a consulting service for franchisors, and chairman of Treats, a successful cookie (3~J "The success rate cf franchises is higher because the franchisor' eliminates most cf the classic risks fnr a smaller business. such as being uncier-financed, badly managd or not having a business plan. - - There are more than 300 active franchise operations in Canada' now, notes Rupf, ranging from the traditional fast food operations ta, retailing and service companies, such as dentists. While some franchises can be bought for as little as $10,000 ta, $20s000e the "turnkey" costs cf most franchises is between $100,000 and $250,000. The termn turnkey refers to, the total costs of acquirng and operating a franchise. The three main casts; are (1) the one-time fee paid ta the franchisor, (2) the necessary improvements ta the premises, (3) the acquisition of inventory and working capital. Another cast is the payment which isi between four ta nine per royalIty usually cent of ail sales. Rpughly 40 per cent cf ail retail sales now in Canada are through franchises and the growth trend shows no signs of levelling. off, says Rupf. While owning, a franchise can be financiaily rewarding over the long term, it isn't a shortcut ta instant wealth. "Many people buy with their hearts instead cf their brains," says Rupf. 'Too often they don't appreciate how much work it takes. The franchisee bas ta be on the job canstantly to make sure things are running propferly."0 Norm Rolfe, a smal1 business consultant with the Ontai Mfinistry of Industry,- Trade and Technology (MITT), adds, "Buying a franchise is not a guarantee of success. You, should investigate before investing. Start by obtaining as much information as possible on the franchisor; also, talk ta existing franchisees and consult an accountant and a franchise lawyer." If youtre interested in investing in a franchise, you should contact: The Association of Canadian Franchisors, 88 University Avenue, Suite 607, Toronto, Ontario, M5J 1T8; telephone: (416) 595-5005. This non-profit industry association offers an excellent information kit ta protiIve franchisees. You may also want ta attend a "Purchase a Franchise" seniinar offered by MITT. Speakers usually include an active franchisee, a banker and a franchise lawyer. Caîl the Smal Business Hotline at 1-800-387-6142. Newcastlemai new pireslident Success of franchise is owner's.afair At the annual conference of the Appraisal Institute of Canada,* held in Montreal June 1-3, Bob Mason, principal of Central Ontario Appraisals,,Aàax, and a resident cf Newcastle, was elected president. Since 1938 the Appraisal Institute of Canada has been advancing the professional status of real estate, appraisers. . mndays. more than 6,000 mmesadvance the profession with -reasoned valuations widely respected by the courts, real estate corporations, charteied- banks, trust companies, mortgage lending institutions, ail levels cf governinent (federal, provincial, regional, municipal), and private individuals. Not only do members receive the benefits cf comprehiensive education prcgrams, but the Institute's code cf ethics and standards cf professionai conduct ensure a high degree cf public responsibility in a very complex field. Qualified members of the Institute are recognized by the designations, AACI and CMA AACI - Accredited Appraiser Canadian Institute - designates fully accredited memibership in the Institute and indicates competence in a wide range cf real estate appraisal. CRA - Canadian Residential Appraiser - indicates competence in appraisal and valuation cf individual undeveloped residential sites and of dwellings of no more than three urfits. Members must compiete a rigorous course of studies in al aspects cf real estate valuation before they are permitted ta use either cf the above designations. Courses include examinations developed' by the national examining committee cf the Appraisal Institute cf Canada fTHE HEAT 0-F SUMMER IS JUST AROUND THE CORNERI "Maybe if we paoled our resources we could buy some kind of franchise - I've got $2380, how much have you got?" a M M M M M M M M M M M M M M M M M M M M COOL NOW -PAY LATER DON'T PAY TILL LABOUR DAY P ay nothing until Labour Day No interest *No down payments M. *No payments uttSept. 1, 1989 Now is the time toorr your C entrai Air Conditioner or Heat Pump for immediate installation and receive a $100 rebate. Pickering/Ajax 683-*5757 Oshawa Bowmanville 723-0868 OR* $1003.00 CASH BA CK from BRIDLEWOOD HEAD OFFICE WHITBY Pet 668~8ll71 Hurry and order before JuIy l5th to receive offers. terborough 49- 3380 I indsay/Cobourg Port Hope 1-800-263-2727 M M M M M M M M M M M M M M M M M M M M M -M M E)~jrh~im~'~C>fficýiiIAL 0uthc,>rizad Ecirr~ >I 'àE t' ' 4 tk-4-*A.-0f_-__ .and, once accepted i nto *memibership, on-gôing educatixua1 prograzns, up-to-date informaltion. exchange and reguilar- semiinars .and meetings.' Regl estate and its valuation, is a complex and challenging field. The Appraisal Institute continues9 ta grow with the challengfe. In addition ta educational programining, the- AppraiSsl Institute alsoadmnsesa *ct code of ethies and standa cif professional conduct. Mason, a resident cf Durham Region since 1965, founded Central Ontario Appraisals in 1971. He was a founding member of the Oshawa-Durbham chapter of the Institute, and was elected chapter chairmnan in 1977. Havîng served on many institute committees at chapter, provincial and national levels, he was elected as director in 1985. He is also, chairman cf the institutes research and develçment fund. Not restricting bis activities ta, the Canadian scene, Mason bas been an active participant in the Pan-Pacific appraisal congresses, and has prepared and delivered professional papers ta that bi-annual conference in Tokyo, Melbourne, Kuala Lumpur, Honolulu and Christochurch, New Zealand. He also represented the Institute as alternate chief delegate in the 1979 Pan-Arnerican Appraisal Congress in Sao Paolo, Brazil. Mason, wife Annette and four children live in the Courtice area of Newcastle. Help kee p Red Cross ready. + SMIOKING WITH LASER THERAPY *Personalized consultations and treatments *Totally painiess, no negative side effeots Prof essionally trained therapists G . 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