A franchise is an interesting option for potential small business owners because it allows them to pick from a number of ready-made business models. Many small businesses fail not because entrepreneurs don't have the skills and talents that can help a new company succeed, but because they may have weaknesses in one or two areas that make an organization difficult to run. For example, some men and women are top-notch managers and personnel professionals but might not excel at advertising and marketing.

Becoming a franchisee will relieve some of the pressure that small business owners feel, namely from having to perform every task. When purchasing a franchise, the franchisor will do much of the marketing and planning at the outset. Franchisees only have to worry about running their store. However, there are some variables to consider when choosing the right franchise to invest in.

Geographic rights
Some franchisees are granted the exclusive use of certain parcels of land, ensuring that the franchisor won't sell any more franchises in that area. Conversely, there are franchise agreements that don't offer any protection whatsoever, meaning that one franchisee might soon be competing with another soon after opening a business and getting it off the ground. Be sure to check for this possibility when researching franchises.

Guidance
Having an experienced mentor around will make running any sort of company easier for small business owners. Franchise agreements often outline the extent to which training will be offered, but speaking with a franchisor will also reveal how open their doors will be. Some franchisors only want the bottom line to be fulfilled, while others will work closely with a franchisee to make the location a success.

Data and information
All franchisors perform market analysis and demographic research on consumers in a certain area - the question is, will they share it with their franchisees? Sometimes the information is freely given so that individual franchise owners can help to contribute to an overall marketing effort, while at other times it is simply used to generate media for larger branding campaigns that have little to do with individual locations.

Freedom
The ultimate question to ask is how much freedom will be given to a franchise owner. A lack of freedom or an abundance of it are both neither bad nor good - it all depends upon what a franchisee is looking for. Some people thrive when they're allowed to make many of their own decisions, while others need quite a bit of guidance to feel confident in their duties.

About Liberty Tax Service

Liberty Tax Service is the fastest-growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns. With 42 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.

Liberty Tax Service is the only tax franchise on the Forbes “Top 20 Franchises to Start,” and ranks #1 of the tax franchises on the Entrepreneur “Franchise 500.” Each office provides computerized income tax preparation, electronic filing, and online filing through eSmart Tax.