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The Franchise Adviser, LLC
Presents
How to Own Your Own Business
Franchising 101
Who Am I?
As a Franchise Consultant I am simply a “matchmaker”.
I save you Time, Money & Aggravation.
I take your goals and match them to companies that should meet those goals.
(This may mean identifying what your goals are.)
MY SERVICES ARE FREE TO POTENTIAL FRANCHISEES!
If I find the right business for you and you purchase that business, the franchisor
pays me. You pay the SAME if you work directly with them or with me.
I reduce your time and aggravation researching franchises….how do you pick?!!
I am objective and unbiased with no sales rhetoric.
I work in all 50 states and internationally with over 300 companies that
have been screened, analyzed, and reviewed.
Franchise vs. Business
Opportunity
Franchising is defined by state and federal laws as a
commercial relationship in which three factors are present:
1. a licensed trademark & name
2. a prescribed marketing plan
3. the payment of a franchise fee for the right to
participate in the program
When these three factors exist, the relationship is regulated as a
franchise by state and federal laws.
A “Business Opportunity” is similar to a franchise without the
restrictions and royalties. This can be an advantage with SOME
factor.
industries. Brand recognition would not be a factor. Considered
more risky than a franchise.
What is Franchising?
• Most people associate the word “franchise” with fast food restaurants. But,
there are many more types of franchise businesses, including everything from
advertising to automobile repair, printing services to adult care and many
more.
• Franchising is a network of interdependent business relationships that
allows a number of people to share:
• A brand identification
• A successful method of doing business
• A proven marketing and distribution system
In short, franchising is a strategic alliance between groups of people who have
specific relationships and responsibilities with a common goal to dominate
markets, i.e., to get and keep more customers than their competitors.
Franchise Statistics
• Franchises account for nearly 50% of all retail sales
• 1 out of every 12 business is a franchised business
• Franchises employ 11+ million, or 1 in 6 adults
• Less than 5% of franchises close each year
• $1 of every $7 is spent in a franchise
• 2009 total sales by franchises estimated at $1.7+ trillion
Advantages of Buying
a Franchise
Federally Regulated
Name recognition
Experience of Franchisor
Established product or service
Efficiency of operation
Lower Risks with predictable results
Group purchasing power
Management Assistance
Business Plan
Start-
Start-up Assistance
Proven System of Operation
Advertising Pool
Disadvantages of Buying
a Franchise
Conformity to Standard Operating Procedures
Inability to make changes readily
Underfinanced, inexperienced, weak franchisor
Duration of relationship
Dependent upon franchisor’s success
Fees in Purchasing a
Franchise
Franchise Fee
Royalty Fee
Ad Pool
Financial Foundation
Can you afford a franchise?
Research process….know what you can afford and what your
willing to invest before you start looking
Is financing available?
Score?
Credit Score? Needs to be 650 or above for financing
Use the franchisor or consultant referrals
Finance Options?
VetFran
SBA Loans
401K conversions with no penalty or distribution
Franchise Types
• Single Unit Franchise
• Multiple Units
• Area Developer
• Master Franchise
Key Items in the FDD
1. Description of the franchisor, 13. Trademarks, service marks and trade
predecessors and affiliates names
2. Identity and business experience of 14. Patents, copyrights & proprietary
officers and directors information
15. Franchisee requirement to operate the
3. Litigation history business
4. Bankruptcy history 16. Restrictions on sale of goods and
services
5. Initial franchise fee
6. Additional costs and fees Renewal,
17. Renewal, termination,
transfer and dispute
7. Initial investment resolution of the franchise
8. Restrictions on sources of products &
services 18. Endorsements by public figures
9. Franchisee’s Obligations 19. Earnings claims
10. Financing arrangements for 20. List of franchised outlets
franchisees
21. Financial statements
11. Franchisor’s Obligations
22. Contracts and agreements
12. Territorial protection
23. Receipt
Key Subjects in the
Franchise Agreement
Trademarks-
Use of Trademarks- time in use, well known, any restrictions?
franchise-
Location of franchise- exclusive territories or rights?
franchise-
Term of franchise- right to renew, buyout agreements
payments-
Franchisee’s fees & other payments- initial fee & royalties
franchisor-
Obligations & duties of franchisor- training, support, advertising
franchisee-
Obligations & duties of franchisee- training, participation, recordkeeping
offered-
Restriction on services offered- standards, suppliers, advertising, hours,
pricing
Renewal, termination or transfer of franchise agreement
Many Franchise Categories
Accounting/Tax Services Fitness Packaging/Ship/Mail Svcs.
Advertising/Direct Mail Florist Shops Painting Services
Auto & Truck Rentals Food/Restaurants Paralegal Services
Automotive Prod. & Svcs. Golf Eqt, Prod & Svcs Payroll Services
Batteries-Retail & Comm. Greeting Cards Pest Control Services
Beverages: Special Hair Salons & Services Pet Sales/Supplies & Svcs.
Business Consultants Health Aids & Services Photography
Business/Mgmt Consultants Home Furnishings Printing/Copying Svcs.
Campgrounds Home Inspection Real Estate Services
Check Cashing/Fin’l Svcs. Hotels and Motels Recreations Svcs.
Children’s Services Insurance Rental Eqt & Supplies
Clothing and Shoes Janitorial Services Retail Stores
Computer/Electronics/Internet Jewelry Security Systems
Construction Mat’ls &Svcs. Laundry & Dry Cleaning Senior Care
Consumer Buying Svcs Lawn/Garden/Agriculture Sign Products & Services
Convenience Stores Maid & Personal Services Tanning Centers
Cosmetics Maintenance Telecommunication Svcs
Dating Services Marine Services Transportation Services
Drug Stores Optical Aids & Services Travel Agents
Educational Prod & Svcs. Vitamin & Mineral Stores
Employment Svcs. Weight Control
Partial List of Franchises
AAMCO Budget Blinds
Cactus Car Wash Sport Clips
Smartbox Portable Storage Snap Fitness
Kitchen Tune-Up
Tune- Fantastic Sams
Tutoring Club Planet Beach Spa
Choice Hotels International
Huntington Learning Centers
800-Dry-
1-800-Dry-Clean
Money Mailer
Molly Maid
At Work Personnel Services
Doctors Express
United Check Cashing Mosquito Squad
Carvel Ice Cream Preppy Pet Suites
Liberty Tax Service Sir Speedy
Moe’s Southwest Grill Service Master
Bo jangle's Chicken Sarah Care Adult Day Care
Fast Signs Golf USA
Wild Birds of America Parcel Plus Mail Centers
My 10 Step Process To Help
You Own Your Own Business
#1: The Initial Interview
#2: Complete & Return a Self Assessment Profile
#3: Research
#4: Presentation
#5: Interview with the Franchisor
#6: Review of the FDD
#7: Interview Franchisees
#8: Finish Your Due Diligence and Validation
#9: Attend Discovery Day
#10: Sign Franchise Agreement
A Few Examples of Recession
Resistant Concepts for
Today’s Marketplace
Automotive
Senior Care
Repair/Restoration
Budget Hair Care
Commercial Cleaning
Check Cashing/Tax Services
Health & Fitness Concepts
Dry Cleaning
Child Education
NOW IS THE RIGHT TIME!
Skilled Labor Force Available NOW!
Money Is Cheap NOW!
Prime Real Estate is Available NOW!
Carol Ivey
The Franchise Adviser
Let Me Help
You Own Your Own Business!
843-290-
843-290-5579
Email: carol@thefranchiseadviser.com
www.TheFranchiseAdviser.com
