Why a Franchise?
June 27, 2007
There are two types of franchises · Product franchise- distribution of a product · Business-format franchises- include everything necessary to start and operate a business in one complete package. Business format franchises provide the product, trade names, operating procedures, quality assurance standards, management consulting support, and facility design. Many familiar convenience stores and fast-food outlets, for example, are franchised in this manner. People are attracted to franchises because the best ones have PROVEN to be extremely successful over the years, and they combine many of the benefits of business ownership with the brand name, experience, and economies of scale. In fact, good franchises generally have a higher success rate than other types of businesses. When you buy a franchise, you know what you are getting. You can question others that went before you to ensure your success. According to the studies; a franchise has a 91 % rate of success while an independent business rate of successes is at 17%.
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A good Franchise Fit?
June 22, 2007
I have been a franchisee, and now I council others on finding, investigating, researching and finally purchasing a franchise for themselves. In working with hundreds of Franchisors through the years, I have learned what it takes to be a good fit as a franchisee. Are you: · Some franchises will even have you take a personality profile. There are a few good ones on the market. They are D.I.S.C. and McQuaig Institute of Executive Development. They help to determine if you are a good fit. Winfree Business Growth Advisors, uses D.I.S.C. Because they Guarantee Results they want the right franchisee for their system. Winfree Business Growth Franchise Opportunity is NOT for everyone. A Winfree Business Growth Franchise Opportunity looks for very specific individuals. You must be an experienced high-powered executive. Winfree Business Growth Franchise Opportunity seeks Top Business Management, and Sales Management, with approximately 10-20 years experience. Winfree Business Growth Franchise Opportunity franchisee has sold tangibles and intangibles on a national level. They are very particular and use D.I.S.C. as a tool as do many other Franchisors. You can't flunk a personality survey, but you can send out signals that you might not be the right fit for a franchise system. This will help you, as well as Franchisor make sure it’s a good fit for you both.
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Buy a System
June 19, 2007
When Joe Grimand first opened a Precision Tune Auto Care franchise 25 years ago in Oklahoma City, he didn't know whether the new venture would be successful. He was a highflier but not as an experienced business owner or executive. He had just left the U.S. Air Force, where he was a combat pilot in Vietnam, among other assignments. But Mr. Grimand was committed to his new business and worked long hours. His efforts paid off. He now runs eight Precision centers in Arkansas and Oklahoma, each generating $600,000 or more in annual sales. "Looking back, I never thought it would grow to what it is now," says Mr. Grimand. Franchising can be a fulfilling and financially rewarding career for some. Franchises generate approximately $1 trillion in annual sales in the U.S. per year, according to the International Franchise Association (IFA), the industry's primary trade group, based in Washington, D.C. More than 320,000 U.S. small businesses are operated as franchises, in 75 different industries, employing approximately 8 million people. One of every 12 retail business establishments is a franchised business, and sales from franchisees account for 40% of all U.S. retail sales, the IFA reports. Franchisees, who operate their businesses according to the original parent company's established system and format, reportedly have a higher rate of success than owners who start from scratch. But franchises aren't for everyone who dreams about leaving the corporate fold. The similarities between owning a franchise and owning an independent business are limited. Katherine Fein of Fran Mart Connection, a consultant to potential franchisees based in Atlanta Georgia, notes the two main similarities: "You have to have the entrepreneurial spirit to quit your job. And you get a check only after you make money." However, she notes, "franchising is about being in a system, and, once you are in a system, you cannot change it." For this reason, creative and independent types may chafe as franchisees. Buying into a System But not all of us wake up in the morning with a great idea and know how to make it into a business. Franchises know they need people who have motivation and a dream. Franchisees have time, talent, skills energy and desire. But they don't want to spend years building an idea. Some entrepreneurial personalities may bristle at rules about the hours franchisees must stay open, the color of paint they use in their units, or even the appearance of their delivery trucks. If you want to put a giant plastic bug on top of the truck as an advertising symbol, and the people at the franchise don't agree to it, you have to deal with it. You can't just go out and do it. The franchiser cannot be responsible for your success. “They are there to support you, not do the work for you,” said Katherine Fein of Fran Mart Connection. Do You Fit the Profile? The typical prospect she advises is an experienced corporate manager or executive, age 35 to 65, who wants to escape the drudgery of working for someone else. Most prospects want to spend about $150,000, with many financing the purchase through home-equity loans, says Katherine Fein of Fran Mart Connection. Franchise coaches help their clients examine their interests, goals and personality types. Once clients define their business and career goals, coaches brief them about the franchise business. Matchmaking Franchise consultants can help prospective franchisees to sift through the thousands of opportunities available and to see whether they are a good fit. "We help them articulate what it is that they want to do," says Katherine Fein. "We help them determine what their goals are, and use that to identify what franchises are a good fit for them. Our ultimate goal is to find a perfect match." Katherine Fein stresses the importance of researching a franchise thoroughly before making an investment. "You really have to do your 'due diligence' with a potential franchiser," she says. "It's like being a part of a football team in the end. The franchiser is like the team owner or coach, and you have to stay within the rules of the game, or go find another game to play." These franchise coaches don't charge would-be franchisees a fee. Rather, the franchise company the prospect signs with pays the consultants. "We're like real-estate agents," says Katherine Fein. "Our service is free to the candidate." J.G. KOPROWSKI
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Multi – Unit Master Franchising
June 11, 2007
Some call it Master Franchising. Others use the terms Multi-Unit, or Area Developer. What ever term you use, it makes money. Big money ………… quickly! You do not need a college degree, nor years of experience. What is Multi – Unit Master Franchising? It means you operate several locations at one time. It is popular in several industries like food industry or hair care. You must be good at managing people. You, basically, manage the managers. You hire managers who work at the locations and run them. These managers are responsible for the day-to-day operations of the locations. Advantages of Multi – Unit Master Franchising You do not have all your eggs in one basket. You grow at a much quicker rate, because of more locations. Your cash flow is increased because you have more locations. Your overhead costs are minimized because of economy of scale. Labor costs are reduced because the units can share employees. You also save money in distribution costs, warehousing, and advertising. Most important is to determine if you have a managerial sprit. Can you mange people well? Do you want to make big money quickly? If so, this is a concept you should seriously consider.
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What to ask a Franchisor
June 8, 2007
Talking to current franchisees is an extremely important part of validating a franchise, to see if it is a good fit for you. Franchisees know the business. The franchisees are the ones who can tell you the real deal. They can tell you what your day will be like, and when you might expect to break even, if the Franchisor is easy to work with and gives the support needed, for example. You should speak with several franchisees and you will have a better idea of deciding if you want to purchase this franchise. When you are ready to call, have a clear idea what you want to discuss. Create a list of questions. First ask yourself, "What do I want to know?" Some suggested questions to ask: - Knowing what you know now, would you make this investment again?
- How has the Franchisor responded to your calls for support?
- How would you describe your overall Franchisor/franchisee relationship?
- What do you do in a typical day?
- What type of business experience did you possess before buying this franchise?
- What hours do you work?
- How long did it take for you to realize a return on investment?
- What are your approximate earnings and are they in line with your expectations?
- What do you wear to work?
- Was the training the Franchisor provided thorough and did it sufficiently prepare you to run this business?
- Is your territory big enough to hit your goals?
- Are you required to use designated vendors?
- Does the Franchisor advertise as much as it said it would?
- What type of business experience, education and skills did you possess before buying this franchise?
- Why did you select this particular franchise?
- Did you encounter any problems with the Franchisor, the site, or establishing your business and how did the Franchisor respond to problems?
- Are your sales patterns seasonal?
Questions to ask former franchisees that have left the system: (all of the above PLUS)
- Why did you leave the franchise system?
- Did the Franchisor cooperate in helping you sell your franchise?
- Would you consider buying a franchise from a different Franchisor?
Lastly, if the franchisee is doing well and it is a success, they want to have a chance to brag. If they are not doing well, or upset with the Franchisor, they want to tell the whole world why. Remember, in even the most successful franchise, you may find a few who are not doing well. Work ethics differ. The amount of time people put into their business differs. Try and get as much information as possible from all the franchisees you talk too. If you would like some more questions, I would be happy to help you.
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How to Pick a Franchise
June 5, 2007
The lazy days of summer can be a great time to contemplate. When you are on vacation, think, "Did I go here because it was WHERE I really wanted to go, or because it was where I could afford to go?" "Am I driving the car I love, or the one with the monthly payments that were in my budget?" Sometimes, when you're on vacation, people tend to re-evaluate their careers and futures. For many workers, buying a business can seem like an unattainable goal, but franchising makes it easier than ever to make this dream a reality. Currently, franchising is in over 75 different industries, and generates an economic output of $1.53 trillion dollars! There was a study by FranData who recently found that all industries, (with the exception of travel), are experiencing an increase in the number of franchise concepts ranging from four percent in personnel services to 67 percent in retail food. New concepts are being added with increasing frequency. Over the past three years, almost 900 concepts began franchising. With thousands of possible businesses to choose from, how do you pick one? How do you know if the business you choose is a good investment? How do you know if the concept is the right fit for you and your market? Essentially, where do you start? Katherine Fein works with would-be entrepreneurs in the Atlanta Georgia area to help them find the franchise that meets their needs, goals and personality. Katherine has identified some of the hot franchising trends and concepts to help local entrepreneurs in their search for the perfect business.
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U.F.O.C.
June 3, 2007
The Uniform Franchise Offering Circular (U.F.O.C.) is the legal document that the Franchisor will give you when you show serious interest in pursuing a particular franchise. They give it to you at your first meeting, and sometimes before. It can be as big as a couple of hundred pages long. The US Government states that you are required to receive this document, but they do not checked their validity. What is in the U.F.O.C.? The U.F.O.C. contains several things including: - The officers of the franchise and their business experience
- Must list ANY Litigation and bankruptcy from anyone in the system
- Initial investment and all fees of the franchise
- The franchise gives you any available financing
- Reviews your territory rights
- Discusses your renewal, termination, transfer
- Covers dispute resolution
- Lists ALL franchisees, including all who left in the last year, and three years of opened or closed units.
The last point is very important as you can use the information to fully investigate and contact people in the system to gather information, and answer questions from an owner's point of view. I always insist that my clients protect themselves and have a franchise attorney review the U.F.O.C. The Franchisor must give a copy to the client 14 days before the client may sign any commitment or make any deposits. As you can plainly see, things can get VERY complicated when investing in a franchise of your own, so use experts. When you chose an Attorney make sure it is a Franchise Attorney. Just like you would not use a gynecologist if you need heart surgery. Experts are experts for a reason. It will cost you a GREAT DEAL more to use a family friend that is an attorney, which is not used to working through a UFOC!
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Over 50 ?
May 30, 2007
There are so many franchise opportunities out there. It would be impossible to evaluate them all. There are plenty of franchise opportunities for the 50 plus entrepreneur. The best opportunities for the 50 plus entrepreneur are ones that use the skills you spent your whole life developing. You would use your experience, your skill sets, knowledge, investment ability and personal desires to orchestrate it into exactly what you want. You can be extremely successful with a franchise that has a proven business model but a product you know nothing about. . The final product is not really important, but the way that product is marketed and sold is. You can invest in a franchise that you believe has the best chance for success in a particular market and the actual product or service being offered or sold is not of top importance. This is because the 50 Plus group are experienced and understand that their number one goal is to make money. So, the most important thing to do is find a franchise that is capable of making money, not one that sells a product or service that simply looks appealing. An entrepreneur over 50 might find certain franchises lucrative based on their successful business models and they don’t need to be age old franchises either. Some entrepreneurs might be interested in buying a McDonalds franchise just because it is so well known and successful. However, other entrepreneurs might want to invest in a franchise that is new to the market but has a well-planned model for doing business, such as Winfree Business Systems. A senior businessperson with great experience is definitely a welcome fit for many franchise business opportunities today!
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No College Needed
May 28, 2007
Some people think that because you didn’t go to college, options for business ownership are almost impossible. That is not true. There are many options for people. We can help! Opportunity #1 Lawn Doctor Franchise This is a great opportunity for people who don’t have a college degree because it is easy to do, requires a small investment, and anyone can do it, whether you went to college or not, is entirely up to you! Opportunity #2 Bark Buster Franchise This franchise is great for anybody who wants to be involved in the rapidly growing pet industry. Bark Busters is the largest, most trusted, in-home dog training company in the world. Today, Bark Busters Dog Franchise is a successful, international company with a proprietary holistic and humane dog training system. Bark Busters dog franchise locations are in 8 countries, and they are expanding in the U.S. with franchise opportunities in all 50 states. Opportunity #3 Matco Tools Franchise Matco Tools Franchises work from home, and service pre-established customer bases in exclusive territories. Customer contacts are completed weekly and Matco Tools Franchises enjoy an excellent relationship with their customer bases. Matco Tools Franchises operate in all 50 states, Puerto Rico, and Canada. Marco Tools has No franchise fees, No royalties, No advertising fees, and No expensive real estate. Opportunity #4 Mainstream Boutique Franchise A wonderful franchise you can start from home is Mainstream Boutique Women Clothing Franchise. It is probably one of the easiest moves to become a part of the lucrative growing fashion industry. Boutiques are popping up everyday. The most successful boutique owners earn decent income to lead a fulfilling lifestyle. These are just a few of the franchises available that don’t require extensive education or experience. There are a lot of them out there, many more than you might imagine. So, don’t think that just because you don’t have a formal education you can’t get ahead and buy a franchise, because you can! . Fran Mart Connection can help you in evaluating your needs, the franchise you are considering, and if it is a good match.
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Good Investment?
May 25, 2007
When I get calls from prospective franchisee clients that say to me “Katherine, I’m interested in this franchise because I love the product. I think it’s great” I guess that’s as good as any reason as any to investigate a franchise opportunity but not good enough reason to invest your hard earned money. Franchises need to have a PROVEN successful relationship for all parties involved. This is not always easy. A great concept does not spell success. Before you purchase a franchise there are many things to consider: Are you willing to follow their system? Part of being a franchise owner is using their system, a proven business model. If you do not follow a system well, you may not be successful. Can you afford the franchise? One of the major causes of business failure is under capitalization. Remember, it is better to start out with more money than you think you will need rather than less. Have you carefully studied the legal documents? Franchisors are required to prepare a Uniform Franchise Offering Circular (UFOC). This document gives important information about the franchise. Does the franchise you are considering have a track record of success? You should get to know the principal directors of the company, their business background and how profitable their franchise has been. Are the franchisees successful? It would be worth your time to contact a number of existing franchisees to discuss their experiences with the franchise. All Franchisees MUST be listed in the U.F.O.C. Buying a franchise business is not a 100% guarantee of success. By carefully evaluating yourself and the franchise business you desire to purchase, the chances of success become greater. Just be careful don’t fall in love to discover later it was for the wrong reasons. Fran Mart Connection can help you in evaluating your needs, the franchise you are considering, and if it is a good match.
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