Franchising and the Entrepreneur

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					  Franchising and the
     Entrepreneur
Where else can we find a job creator, an
 economic stimulator, and a personal
     wealth creator that gives the
   opportunity to realize dreams and
 financial security for families beyond
  wildest expectations? …Dan DeBolt
            Franchising
A system of distribution
  in which semi-
  independent business
  owners pay fees and
  royalties to a parent
  company in return for
  the right to become
  identified with its
  trademark, sell its
  products and services,
  and use its business
  format and system
    Types of Franchising


 Trade name
 Product
  distribution
 Business
  format
Benefits of Buying a Franchise

   Management training and support
   Brand name appeal
   Standardized quality
   National advertising
   Financial assistance
   Proven products and business formats
   Centralized buying power
   Site selection and territorial protection
   Greater chance of success
       Drawbacks of Buying a
            Franchise
   Franchise fees and ongoing royalties
   Strict adherence to standardized
    operations
   Restrictions on purchasing
   Limited product line
   Contract terms and renewal
   Market saturation
   Less freedom
     10 Myths of Franchising
   Safest way to go
   Less money to open
   Bigger franchise organization,
    more successful
   Use 80% of business format
   All are the same
   No need for hands-on
    management
   Anyone can be successful
   Cheapest way to get into
    business
   All problems will be solved
   Run things the way I want to
     Franchising and the Law
   Uniform Franchise
    Offering Circular
    (UFOC)
   Federal Trade
    Commission-Trade
    Regulation Rule
    (23 major topics)
Right Way to Buy a Franchise

   Evaluate yourself
   Research your market

   Consider your options

   Get a copy of their UFOC

   Talk to existing franchisees

   Ask some tough questions

   Make your choice
Trends Shaping Franchising

Multiple-unit franchising-a method
 of franchising in which a
 franchisee opens more than one
 unit in a broad territory within a
 specified time period

                             11%
               Trends
International
  Opportunities
China-1,900
  franchises,
  82,000 outlets
McDonalds-119
  countries,
  10,000 outlets
              Trends
Smaller, nontraditional locations-
 intercept marketing: the principle
 of putting a franchisee’s products
 or services directly in the paths of
 potential customers, wherever they
 may be

ex. Dunkin Donuts
             Trends

Conversion Franchising-a
 franchising trend in which
 owners of independent
 businesses become franchisees
 to gain the advantage of name
 recognition
                    ex. Century 21
             Trends

Master Franchising-a franchise
 that gives a franchisee the right
 to create a semi-independent
 organization in a particular
 territory to recruit, sell, and
 support other franchisees
                Trends
Piggybacking-a
  method of
  franchising in which
  two or more
  franchises team up to
  sell complementary
  products or services
  under one roof
ex. Taco Bell, KFC, Pizza
  Hut, A&W-Yum! Brands
        Trends




Serving Dual-Career Couples
And Aging Baby Boomers

				
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posted:12/3/2011
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