How to How to Own Your Own Business Own by xrn15915


									The Franchise Adviser, LLC

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.)

  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
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
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
•   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-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 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?
    Credit Score? Needs to be 650 or above for financing
    Use the franchisor or consultant referrals

Finance Options?
    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
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
                                             21. Financial statements
11. Franchisor’s Obligations
                                             22. Contracts and agreements
12. Territorial protection
                                             23. Receipt
        Key Subjects in the
       Franchise Agreement
Use of Trademarks- time in use, well known, any restrictions?

Location of franchise- exclusive territories or rights?

Term of franchise- right to renew, buyout agreements

Franchisee’s fees & other payments- initial fee & royalties

Obligations & duties of franchisor- training, support, advertising

Obligations & duties of franchisee- training, participation, recordkeeping

Restriction on services offered- standards, suppliers, advertising, hours,

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
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
        Senior Care
        Budget Hair Care
        Commercial Cleaning
        Check Cashing/Tax Services
        Health & Fitness Concepts
        Dry Cleaning
        Child Education
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!


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