Why should you not franchise

If you are thinking about your franchise start-up agency medical staff, you must first determine what exactly is expected of you and what you are actually losing in the purchase of a medical staff.

Are you the owner of the Medical Staffing Franchise?

No! If you are in a temporary personnel franchise you are basically buying the rights to use the name, O'h and it will cost you much to do.

How much does it cost to create a medical staff Agency franchise?

Between $ 125,000 to $ 175,000, which is not part of the franchise fee, the cost for the use of company names will be some where around $ 25,000. The $ 25,000 is the franchise fee, usually has nothing to do with your office, employees, and employees, your marketing / advertising costs, it is simply the cost of society, so it on.

Are there any name recognition for the success?

No, franchising, that you say you have the advantages of established name recognition of the faithful, that's fine and dandy for existing contracts with the franchise, but you have your own relationship with the customer. A name in the medical profession has little to nothing to do with the position to afford to continuously and effectively. Your reputation and your ability to generate, which is based on your success.

Is there a franchise-have tools and methods to increase significantly?

Not really, usually when talking franchise of tools and methods, which they refer manuals are up to you how your company to the market. Many franchisees claim to have proprietary technology to calculate and track employees. With today's market you will find these services available and willing to work with you cheap.

They have special forms of franchising I need to get started?

Although you need some forms to start, you do not need a franchise to the forms for you. You can access the online forms at a modest fee. There are only so many forms that you need and how to grow more to buy forms or contracts, you can use the proceeds from the company to purchase several molds.

Franchises are the only ones capable of providing 100% financing for temporary staff?

Absolutely not, all have been a franchise contract with a provider of factoring. Normally, the franchise is not the one who actually has the money. You will note that today there are many companies that work with you for your Payroll 100% and make the payroll and the management of your books. In general, there is no fee for your bills, usually by a factoring company can use the money for you within a few days. The fees are generally structured within the invoice, in other words, you do not pay directly.

They have franchises proprietary technology to employees?

Perhaps they, or perhaps not. Even online businesses that offer Internet-based tracking software employees. The fees for this service can range from $ 50 - $ 300, depending on the size of your company. If you are small, then perhaps $ 50 a month for the coverage of the first need for the technology to track and manage your work force.

You franchises for growth?

No! You buy an area on the market based on your region. They call this area, you can expand to multiple devices, but it will cost. According to your own staffing agency you are not limited to areas, regions or in the extension, based on franchise fees. If you ever wanted to move to another state or city, you may not be able to because some else in the franchise to beat.

What are the advantages of the franchise support?

You will notice that after acquiring the franchise, the support structure they are within personnel, law, marketing, etc. are passed on to an answering service that will require you to leave a message. You can visit the website and they once again the conversation, but you will find that the person at the other end was only in the material that you and has no experience in the field of medical personnel industry.

Is it expensive to create a franchise on the franchise fee?

Yes, it is? Why? Think about it, do you think wants you to open a franchise store cheap? No, your franchise is a marketing tool for them. If you are bad, it looks bad. It is the best interest of the franchise that you have the best selection, the best construction and help plan the best furniture and the best opening. You are at the mercy of the contract with the franchise. That is the reason why they want to make sure you have enough capital to pay for your start-up. They have pre-selected vendor, you must. Generally, it is necessary with suppliers there.

Is a franchise help me secure my first contract?

No, they are not physically help your first or second or third contract. They offer marketing manuals and online help, but the meat and potatoes, Marketing / Advertising is 100% how it should be. The problem is that you vaulted over 100,000 U.S. Dollar to open your business, without ever having to secure an account.

Is there a franchise companies offer health insurance or pension or any kind?

No! Franchises are not in the business of providing these services, they are in the field of selling and reselling franchise, they are not in the business of providing services. You will see two A third parties. What you can do on your own via the Internet.

Franchising Franchise entitled to many, is it good for?

Absolutely not, they have the franchise less potential for growth you have.

What they mean by ongoing support with a franchise?

It means that in general, call the toll-free number and leave a message, or visit there website and type in your question. They will try to help you as fast as they can. If the franchise is huge: you may have to wait several days before they return to you. At this point, if an entrepreneur, the financial commitments to a medical personnel franchise begins to feel abandoned and left out to dry. In many cases this is the truth. "Finally, it is your business!"

What does franchise mean?

O'h, good question. This means that the franchise is not yours, you agree to the transaction for five years and at the end of five years, the franchise may or may not renew your agreement. Generally, for an extension of the agreement, you will have to pay a franchise fee. The decision on the extension of maturity is only at the discretion of the company's franchise ... If they decide not to enter the extension of the franchise, you lose the business.

What are royalties paid?

In addition to the payment of franchise fee and start-up costs, you are mandated to pay a license fee, the fee is usually between 5% to 10% of the gross revenue of the company. Most people do not realize how much money it is. Lets me explain, a medical staffing agency is working on a marginal profit margin of 20% to 25% of gross revenue. If you have to pay a license fee of 10%, and medical staffing agency is only a 20% gross profit to remain with only 10% of the gross profits after paying the royalties franchise fee. But is not all. The 10% is what you must pay your in-house employees and future marketing / advertising costs. The profit margin begins to dwindle to almost nothing. Very, very important that you understand what we are talking about.

Example:

Billing $ 100,000 per month

Paying nurses / Tech 's $ 80,000 per month

Franchise Fee $ 10,000 per month

Gross Margin 10,000 per month

In house employees $ 4,000 per month

Rent / Utilities Etc. $ 3,000 per month

Adv / Mark. $ 1,000 per month

Total $ 8,000 per month

Net margin $ 2,000 per month

Basically for every $ 100,000 of Bill a month, you will only be $ 2,000 per month. This corresponds to the statement of 1.2 million U.S. dollars per year, and you only $ 24,000 a year, ouch! Not with a franchise can be more than $ 150,000 per year.

I hope this helps you in your entrepreneurial spirit, make your own medical staffing agency. I have many new and existing entrepreneurs starting their own medical personnel agency favorable for many years, and I hope I have helped you.

Roy Vera MBA, RT is an experienced medical personnel, author, publisher and consultant. For more information visit us at http://www.vismedical.com