by Michael Shepard

Created on: July 05, 2008   Last Updated: January 29, 2012

The most important consideration in deciding to do business as a woman-owned franchise is the start-up capital required. Most all companies demand a franchise fee in the twenty to one hundred thousand dollar range, with total initial cost running twenty to thirty percent above basic fees. These franchise agreements must be renewed (usually on a ten year time line) at a cost the same or above the initial franchise charge. This is not a paltry sum, the reason for which government considers franchises medium-sized rather than small business concerns.

Careful analysis is advised before taking on such monumental financial obligations. While parent companies provide financing, training, education, reputation of name, client lists, technical and human resource support, and material in some cases; ultimate responsibility for success rests with franchisees.

If the business fails to earn enough revenue to cover cost, the franchisee is fiscally and legally liable for all losses. Parent companies take no financial risk in the venture other than the possibility of a franchise's potential bankruptcy filing. Even then the Court may enforce contract obligations on the franchisee whether or not income is being produced by the franchise.

"Young Rembrandts" is an art instruction franchise offering art education to Kindergarten through Sixth grade children in affiliation with School Districts. This is a parent-paid program with no mention of public funding or private subsidy on "Rembrandts'" website. Also important to note: no information may possibly be gleaned online with regard to the price parents have to pay for their children to participate in the art education program.

One must conclude parent cost to be significant. This in lieu of the fact that start-up cost to franchisee on the landscape of $48,000 will not be paid by Bette Fette, owner of "Young Rembrandts", Franchisee, or even instructors. Ms. Fette has been in business as franchiser since 1997. This shows a relatively short period of good will asset generation.

Potential franchisee holders of "Young Rembrandts" must consider market demand for services rendered at the well concealed price. The market may well be limited to only the most affluent of communities. This conjecture is born out by a website search for instructors which showed none available in the low income communities entered into their database .

Residential cleaning franchises cater to high income clients and offer a franchise fee in the seven to fifteen

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