Franchising basics: online courses and resources: what you need to know when buying a franchise and where to learn it.

Nearly 900 concepts began franchising over the last three years, according to a report released this summer by the International Franchise Association Educational Foundation and FRANdata. The first findings of "The Profile of Franchising: 2006" study series found that the number of concepts was growing in 17 of 18 industry categories. From 2003 to 2005, increases ranging from 67 percent in retail food to 4 percent in personnel services were discovered. Only the travel industry declined.

With the array of choices increasing, there should be something out there for every potential entrepreneur. While a franchise provides a quicker and simpler path for would-be business owners, it isn't risk-free and may not be suitable for everyone, says the International Franchise Association which offers a free, online course, "Franchising Basics," at www.franchise.org to aid potential investors in their due-diligence efforts.

The free, online, educational tool explains how franchising works, provides questions potential investors should ask, outlines the laws and regulations that apply, and describes the advantages and disadvantages of the format.

Significant attention is paid to the franchise offering circular, which many consider to be the most valuable tool available to a prospective franchisee. The circular is a document prepared by franchise systems to satisfy the pre-sale disclosure requirements mandated by the U.S. Federal Trade Commission and the franchise laws of many states.

Sometimes running up to 200 pages in length, the disclosure document includes information about the franchise's history and business model, terms of the agreement and financial statements. The association strongly encourages prospective franchisees to seek professional guidance to aid in understanding this document.

Importantly, it also lists recent litigation, contact details of some current and former franchisees, and information about franchise agreements that were recently terminated. Potential investors are especially urged to contact former franchisees to inquire if they were successful and received the support and services they were promised.

Another resource available to the potential investor is the Federal Trade Commission booklet, "The Consumer Guide to Buying a Franchise," which helps the potential investor to understand how to shop for franchise opportunities and know what questions to ask before investing. The government guide is available on the association's site, www.franchise.org. The guide includes a checklist potential investors should use to assess how much money they may have to invest, their ability to operate a business, and their goals and expectations.

Those interested in acquiring a franchised small business are encouraged to consult with professionals, such as accountants and lawyers, who specialize in the sector. Those professionals who are IFA members are featured on the association's Web site under "Supplier Directory."

Franchise investment information is available on a searchable database on IFA's Web site, www.franchise.org, in the "Franchise Opportunities" section. The database is searchable by company name, industry category, investment level, or companies that provide financial incentives for veterans. Search results will yield a list of hotlinks to individual company profiles that contain contact information for the franchise company, a brief description of the business concept, the number of franchised units and length of time the company has been franchising, cash investment required, the training the investor will receive and the name of the person to contact if interested in buying a franchise.

Veterans interested in acquiring a franchise may be eligible for financial incentives via a special program called VetFran, which is available only through participating association member companies. To date, nearly 500 franchised small businesses in 45 states have been acquired by veterans through the program that is supported by more than 200 companies. VetFran has been recognized by the U.S. Dept. of Veterans Affairs with its Support Sector Champion Award for expanding business opportunities for veterans. To view a list of participating companies, with information on their discount packages and hotlinks to company profiles, visit www.franchise.org and click on the "Franchising for Veterans" link located on the homepage.

Finally, potential investors are encouraged to use their feet--visit a trade show, walk around and examine the exhibits and ask questions. Franchise systems come together from near and far to exhibit their offerings at these events where company representatives are available to answer questions potential investors may have. Trade shows are slated across the country in the upcoming months. The Franchise Expo South will be held Jan. 19-21, 2007, in the Miami Beach Convention Center and the International Franchise Expo will be held March 30-April 1, 2007, in the Washington, D.C. Convention Center. Veterans will be admitted at these events without charge.

E-Learning Programs

A number of online learning courses, approved for Certified Franchise Executive credit, are offered in cooperation with CertiLearn. Some of the courses are:

Franchising Basics (free introductory course to franchising)

This course is designed to provide individuals with a comprehensive introduction to franchising, especially those individuals who are considering investing in a franchise as a business. The course describes how franchising works as a business methodology, the questions to ask, the laws and regulations that apply to franchising, the companies and types of businesses that comprise the franchising sector, the advantages and disadvantages of franchising, the many different forms of franchising, and sources of additional information. The course is intended to help individuals understand and evaluate Uniform Franchise Offering Circulars.

Franchise Sales Compliance

This course is designed for franchise executives, managers, compliance officers, paralegals and attorneys, franchise brokers and consultants, especially those individuals involved in the franchise sales and disclosure process.

Practical Financial Management for Growing Business

Growth happens, especially in today's economy. But is bigger always better? Maybe yes and maybe no. Most people measure financial success with their eyes firmly riveted only on sales, ignoring that sales growth can consume scarce internal capital in many companies. Planning for and determining the level of capital needed to support growth is the topic of this course.

Diversity Today

This program fosters diversity training and awareness for franchise executives using a series of four modules: What is Diversity? Workplace Fundamentals, Marketplace Fundamentals, and Developing a Diversity Plan For Your Company.

A Caliper Course for the Franchise Community--Selection and Development of Top Performers

The purpose of this course is to provide participants with the tools which will enable them to recruit the most effective people, whether it is for corporate executive positions, franchisees or franchisee employees. A basic hiring system will be presented, and modifications will be offered, focusing on corporate executives, franchisee selection and franchisee staff. The aim, regardless of category, is to teach the approaches to selection and development of top talent to provide maximum results stemming from the people aspects of an operation.