The franchising agreement can be beneficial to both the franchisee and the franchiser. The benefits of the franchisee are as follows:

• Recognition - the franchise name gives the franchisee instant recognition with the public.
• Standardized appearance of the franchise - customers know that the quality and consistency of the goods or services does not change from one outlet to another.
• Management assistance - the franchisee can obtain advice on how to run franchise effectively.
• Economies of scale in buying - the head office of the franchise buys (manufactures) goods (services) in large volumes and resells to the franchisee at low prices.
• Promotional assistance - the head office provides the franchisee with prepared advertising and other promotional materials.

The franchisee is not the only party who gains in franchising. The following benefits are available to the franchisor:

• Recognition - the franchisor is able to expand its area of operation by signing agreements with dealers in widely dispersed places.
• Promotion savings - as various franchisees can decide on local advertising efforts, the franchiser saves money on promotional coverage.
• Franchisee payments - franchisees pay the franchisor for the right to operate their franchises.
• Attention to detail - since franchisees own their franchises, they are motivated to do a good job and to sell the franchisor’s product or service aggressively and efficiently.

Franchising, however, has its shortcomings. Not all franchises are as successful as McDonald’s. Many entrepreneurs are uninterested in becoming franchisees because their business behaviours will be too closely regulated and monitored by the franchisor.

McDonald’s (NYSE: MCD) continues to run impressively. The current policy of the company is to focus its attention on international markets and establish more franchise businesses oversees. McDonald’s plans include selling 21 percent of its fast-food restaurants (about 7,000 out of 31,000) to already established and new  franchisees. This strategy of the fast-food industry giant is not exactly a new one, since McDonald has always used a franchise model quite successfully. Earlier this year, it has turned over its company-owned stores to franchisee in the countries of the Caribbean and Latin America. New plans will expand the presence of McDonald’s franchises to hot markets of Russia, India, and China.

McDonald’s brand is very well known in 122 countries, where it serves about 51 million people daily. Seventy percent of 30,000 existing McDonald’s restaurants, offering both drive-through and counter services, are owned and run by local franchisees. In 2006, McDonald’s global sales accounted at more than $56.78 billion. Every year since 1973, this fast-food monster has been ranked number one among other chain restaurants on the U.S. market. In comparison, its closest competitor, KFC, which yielded $14.2 billion in sales in 2006, is four times smaller than McDonald’s.

Depending on a country and a particular location, the total investments required to open and manage a McDonald’s restaurant may range from about $656,000 to $1,225,000. The initial franchise fee is $45,000 for the term of 20 years, after which the franchisee will have to pay additional $45,000 in order to keep his business.

FranchiseMart, a U.S. company offering services to make franchise shopping easier, is going to launch its first store in Sydney, Australia. Although the company promises to help potential franchise buyers find the most suitable solutions and match them with the best franchisers, the franchisee industry body discourages Australian businessmen from using the services of FranchiseMart.

The new business venture, which was brought into the country by FranchiseMart’ top executives Gareth Grant and Justin Kirkland, will be launched by Joe Hockey, Australian Minister for employment and workplace relations. Grant says that in Australia many potential franchisees are confused about what business to purchase. They often make an emotional decision without really understanding the peculiarities of a particular franchise business and without taking time to investigate into the business and evaluate their risks. There are more than 900 franchises to select from in the country, and people often need a help in choosing the right one for them.

The services of FranchiseMart will include a careful selection and research into available on the market franchise options, the analysis of the potential franchisee needs based on a detailed questionnaire, matching of franchisers with potential clients, the help of a business consultant, and educational meetings on relevant topics.

However, Tony Fraiser, CEO of the Australian Franchisees Association, warns that businessmen looking to purchase a franchise should not blindly accept any preliminary research and advise in this sphere because there are no guarantees that the match will be the right one. Brokers’ companies, and FranchiseMart is one of them, often match people with businesses that are suitable for brokers themselves, but do not reflect real needs of the franchisees.

Butterfly Life Fitness Franchise Clubs help women to both achieve a good fitness level and lead a healthier lifestyle through their nutrition programs and revolutionary 30-minute-per-sesion workouts designed specially for women’s needs. Butterfly Life is one of the best national women-focused fitness franchises, which currently unites almost 100 clubs in the U.S. and outside of the country. The chain features top specialists in nutrition, fitness, fashion, and motivation, whose aim is to help women live better lives. In addition to 30-minute exercise classes with the elements of Pilates, dance, and yoga, club members enjoy lectures series ranging from health, fitness, and nutrition-related topics to fashions and exclusive women’s issues. Additional services include Women’s 30 Minute Circuit Training and Butterfly Life Weight Loss Express, both of which are designed to show results in less than 30 days, making women look younger, fitter, and healthier.

For serious entrepreneurs interested in buying a women-friendly fitness franchise, Butterfly Life is a unique and perfect option since it promotes a healthy lifestyle and efficient weight management solutions designed for the peculiarities of women’s anatomy, physiology, and metabolism. Besides, Butterfly Life takes care of all important aspects of women’s health, including the mind, body, and spirit. Owing a Butterfly Life Franchise Club is a great business opportunity for those who want to not only achieve their financial goals, but also help others live healthier and happier lives.

California-based ALD, which was founded in 1974 and which currently unites an extensive international network of highly-trained specialists, is the leading U.S. company among those providing ecologically-friendly leak detection services to consumers. It focuses on non-destructive detection of various types of leaks called forth by swimming pool cracks, plumbing systems defects, sewer breakages, and other causes. Smart electronic devices and advanced technologies are used instead of old-fashioned invasive detection methods. For six consecutive years, ALD has ranked Number 1 in the “Maintenance Products and Services” franchise sector of Entrepreneur® magazine.

Biotech International, with its headquarters located in both UK and US, is the leading and fastest growing provider of affordable services in relation to drainage of sewer, odour, wastewater, and grease. It helps consumers eliminate fats from their drain systems and solve odour problems by using an eco-friendly, non-toxic process of “bio remediation”, which allows certain strains of microbes “eat” sewage and other waste products leaving behind only clean water and carbon dioxide.

The alliance of American Leak Detection with Biotech International will be supportive of the international green movement and will start operating through US and UK franchise locations, which will be the primary centers of eco-friendly products and services distribution. In the future, the activities will be spread onto other places, and especially developing countries that often experience serious problems with water managements and pipe cleanliness. Other plans include establishing together of a new brand under the logo of “B Environmental”, which would emphasise hygiene, cleanliness, and odour control.

What are the opportunities? We recommend to check out a successful chain of Hand and Stone Massage Spas, a franchise concept in massage therapy that offers affordable and quality services (an introductory full-body massage performed by a registered massage therapist costs only $39.95 - the price policy that looks attractive for many customers). The first location of the chain opened in 2004 and the Spa has been rapidly growing since. By the year 2008, the company plans to expand to 100 franchised centers nationwide, while, by the year 2010, the number of Hand and Stone Massage Spas will reach 500. The initial investment will depend on location and is estimated to be within the range of $189,000 to $389,000.This franchise offer may look especially enticing for those who already have an experience in running a business and wish to change a career.

Orange Sky Body And Beauty Bar is another franchise opportunity in the area. In addition to massage therapy, the chain offers a wide range of services, including facials and waxing, a refreshing new business concept, and a unique line of brand name body products. The required investments start from $147,500.

A flexible and less costly business opportunities are offered by Jon’Ric International Spas, which have been on the market for almost 24 years and now have grown to a $50 billion “Speciality Spa” industry.

It is estimated that minorities make up about 20% of the Papa John’s franchisee sector, and this number is even going to increase soon. Within the entire Papa John’s franchise chain system, a stronger emphasis is now being placed on reflecting of the changing composition of customers and, therefore, on giving priorities to minority franchisees.

The Papa John’s restaurant business was established in 1985, when “Papa”, John Schnatter from Jeffersonville, Indiana, decided to turn a local tavern into a restaurant serving and delivering superior pizza to the customer’s door. Now, the international Papa John’s chain is the third largest pizza franchise in the world (after YUM! Brands’ Pizza Hut brand and Domino’s), which operates in 580 places worldwide and 30 locations outside of the USA. With more than 3,000 fast-food restaurants, Papa John’s remains committed to producing the highest-quality, traditional pizza made from natural ingredients. In addition to pizza, it provides a variety of pies, such as All the Meats or The Works, and different pizza toppings, with the products being either delivered directly to customers, or available for carry-out.

Now, being called a minority-friendly franchise, Papa John’s should expect even bigger national and world-wide success, especially among potential franchisees and customers belonging to a previously under-represented market.

Some of the wonderful franchise opportunities that are announced on AmericasBestFranchises.com and which can attract a great interest of baby boomers, are so-called “green franchises”:

- NaturaLawn of America Franchise - the only nationwide natural, organic-based lawn care franchise providing a safer and healthier alternative to traditional harsh chemicals and pesticides. (Additional information can be found at America’s Best Franchises - Green Franchises)

- Brazilian Springs Water - a unique franchise opportunity, which is available not only in the USA and Canada, but also internationally, and which represents part of the fastest growing business segments in America. Interestingly enough, this business opportunity starts as low as $10k, which definitely makes it budget-friendly! (Additional information can be found at America’s Best Franchises - Green Franchises)

- Lawn Doctor Franchise - the number one Lawn Care Franchise in America. This home-based service-oriented franchise opportunity seems to be especially attractive for retired people due to its eco-friendly approach and an emphasise on free time. (Additional information can be found at America’s Best Franchises - Green Franchises)

The 2007 Forum will unite the biggest franchising operators of the Mediterranean area and will provide a perfect opportunity for different businesses to share their knowledge and expertise in the industry and launch new franchising projects. Those who plan to attend the Forum with the purpose of starting their own franchise, will get an excellent opportunity to both learn more about different franchise ideas and opportunities and select the right type of business suiting their particular needs. The Forum schedule will also include the discussion of franchising development and cooperation with the Maghreb countries. Delegations from Egypt, Turkey, and Greece are expected to participate in the debate.