Franchising Smart W Matchpoint

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  • Franchising Smart W Matchpoint

    1. 1. Franchising Smart - Choosing the Right Franchise Presented by Warren J. Rutherford The Executive Suite & Sr. Franchise Consultant MatchPoint Networks
    2. 2. Three Roads Yogi Berra said, “When you come to a fork in the road, take it” <ul><li>Stay the course </li></ul><ul><li>Find a new J.O.B. (no surprises) </li></ul><ul><li>Serial Employment or Unemployment </li></ul><ul><li>Go it alone </li></ul><ul><li>Start an independent business </li></ul><ul><li>(Failure rate very high) </li></ul><ul><li>Buy an existing business </li></ul><ul><li>Odds are better, you get to see financials </li></ul><ul><li>Will you get properly trained? </li></ul><ul><li>On-going support? </li></ul><ul><li>Partner with success </li></ul><ul><li>Join a franchise organization </li></ul><ul><li>Established, verifiable “Success Package” </li></ul><ul><li>90+% success rate among franchises </li></ul>
    3. 3. Franchise Statistics: Did You Know? <ul><li>Franchising offers an excellent opportunity for you to be in business for yourself but not by yourself </li></ul><ul><li>A franchise opens every 8 minutes in the United States </li></ul><ul><li>Franchising employs over 21 million people </li></ul><ul><li>There are 3,500 franchise concepts in 75 industries (there is life after food) </li></ul><ul><li>Franchising accounts for 1.53 trillion in sales and 50% of all retail sales </li></ul><ul><li>That 1 out of 12 retail businesses is a franchise? </li></ul><ul><li>That After 5 Years, 92% of Franchised Businesses Are Still Operating? </li></ul>
    4. 4. What are the benefits? Start from scratch as an Independent Success rate after 5 years starting from scratch
    5. 5. What are the benefits? Franchising Success rate after 5 years starting as a Franchise
    6. 6. What are the benefits? Franchising vs. Independent (SBA statistics) Franchises - Still Open From Scratch - Closed
    7. 7. Types of Franchises <ul><li>Home Based – B2B or B2C but you are typically “out and about” </li></ul><ul><li>Service Based – B2B or B2C – “warm leads” </li></ul><ul><li>Location Based – simple retail and sophisticated retail </li></ul>
    8. 8. The Challenges <ul><li>Working Within the System </li></ul><ul><ul><li>Entrepreneur vs. Frantrepreneur </li></ul></ul><ul><ul><li>System Conformity </li></ul></ul><ul><li>The Risk </li></ul><ul><ul><li>Franchising is not Risk Free </li></ul></ul><ul><ul><li>90% Plus Success Rate for the Franchising Industry </li></ul></ul><ul><li>Working with the Franchisor </li></ul><ul><ul><li>Buying a Franchise is Like Getting Married </li></ul></ul><ul><ul><li>Legally Binding Relationship </li></ul></ul><ul><li>False Expectations </li></ul><ul><ul><li>There is no Instant Success </li></ul></ul><ul><ul><li>Tremendous Time and Financial Commitment </li></ul></ul><ul><ul><li>Be Realistic </li></ul></ul><ul><li>Managing the Business </li></ul><ul><ul><li>Do you have Previous Business Experience? </li></ul></ul><ul><ul><li>Assess your abilities to run a Business </li></ul></ul><ul><li>The Fees </li></ul><ul><ul><li>Franchise Fee (one time fee) </li></ul></ul><ul><ul><li>Royalty (% of gross sales) </li></ul></ul><ul><ul><li>Ad Fund (% varies) </li></ul></ul>
    9. 9. That’s All Great, BUT… <ul><li>Do YOU Have What It Takes To Be In Business For Yourself, Not By Yourself????? </li></ul>
    10. 10. A Test For You… Which of the following backgrounds produce successful franchise owners? <ul><li>Tradesmen (Painters, Carpenters, Construction workers, Installers, Contractors, printers, etc.) </li></ul><ul><li>Restaurateurs (Anyone with experience managing or owning restaurants) </li></ul><ul><li>Lifelong Corporate or Federal Employees (Administrators, Managers, Directors, Project Managers, Service Providers, Marketers, Salesmen, etc.) </li></ul><ul><li>Entrepreneurs </li></ul><ul><li>Professionals (Doctors, Lawyers, Consultants, CEO’s, CFO’s, Accountants, Professors/Teachers, Chemists, etc.) </li></ul><ul><li>Technicians (Computer tech, engineers, etc.) </li></ul><ul><li>Stay-at-Home Moms </li></ul><ul><li>THEY ALL DO! </li></ul>
    11. 11. Why Is This True? <ul><li>Because the basic franchise model provides many of the tools needed to succeed – then you build your customer base and “work it.” </li></ul><ul><li>As a result, THOUSANDS of people, regardless of their prior backgrounds, have been able to enter franchising and succeed. </li></ul><ul><li>If you can find something you really love to do, a great deal of energy and drive will come with it. And properly focused, this passion – and your inherent skills and experiences - can drive your franchising success. </li></ul><ul><li>Is it time for you to consider a change? </li></ul>
    12. 12. What DOES Franchising Provide? <ul><li>A Proven Operating System </li></ul><ul><li>Operating Manuals </li></ul><ul><li>Initial Training </li></ul><ul><li>On-going Training/Support </li></ul><ul><li>Marketing & Sales Training </li></ul><ul><li>A Proven Marketing Plan </li></ul><ul><li>On-going R & D </li></ul><ul><li>Customer Support </li></ul><ul><li>Defined Territories, Based Upon Target Demographics, etc. </li></ul><ul><li>Technical and Administrative Support – Management Software, Web Support, etc. </li></ul><ul><li>A Brand Name, that grows and grows and grows in value </li></ul><ul><li>Depending upon the franchise, you may also receive site selection support, hiring and employee profiling support – or they may even contract with national and local accounts – and pass along leads to you. </li></ul>
    13. 13. What Makes You Want to Change? <ul><li>POSITIVE VS. NEGATIVE MOTIVATION? </li></ul><ul><li>INSPIRATION OR DESPERATION? </li></ul><ul><li>Are You Running From Something Or Toward Something? </li></ul><ul><li>BUYING A BUSINESS SHOULD BE A BURNING DESIRE </li></ul><ul><li>“ Know your outcome. Give your brain a BIG enough reason WHY, AND YOU CAN ACCOMPLISH ANYTHING” - Anthony Robbins </li></ul>
    14. 14. So why a Business anyway? <ul><li>If you continue on your path, will you be happy at retirement? </li></ul><ul><li>If your life continues in the same way it's been going... </li></ul><ul><ul><li>Will you actually be where you honestly want to be in life this same time next year? </li></ul></ul><ul><ul><li>How can you be certain you'll be any closer to the financial freedom you want? </li></ul></ul><ul><ul><li>Will you're dreams, plans, and desires actually come to be your reality? </li></ul></ul>
    15. 15. So why a Business anyway? <ul><li>If you continue on your path, where will you be in five to ten years? </li></ul><ul><li>Their dreams or your dreams? </li></ul><ul><li>What is your #1 fear for the future? </li></ul><ul><li>It starts with attitude – “If you don’t like where you are in life, change it” </li></ul>
    16. 16. Questions <ul><li>Ready to take on the responsibilities, wear all the hats? </li></ul><ul><li>Willing to follow systems? </li></ul><ul><li>Have a history of success in dealing with people? </li></ul><ul><li>Can you afford it? (20-35% personal cash infusion) plus personal living expenses for first year </li></ul><ul><li>Is it a product/service you can get behind 100%? </li></ul><ul><li>Do you have family/spouse support? </li></ul>
    17. 17. How To Investigate <ul><li>Identify your goals and vision </li></ul><ul><li>Know yourself, strengths and weaknesses </li></ul><ul><li>Identify good “fits” </li></ul><ul><li>Initiate contact with franchisors </li></ul><ul><li>Review initial packet </li></ul><ul><li>Read and understand the Franchise Disclosure Document (FDD) </li></ul><ul><li>Contact franchisees (validation calls) </li></ul><ul><li>Visit franchisor (Discovery Day, or D-day) </li></ul><ul><li>Make a decision </li></ul><ul><li>MatchPoint 6 step process </li></ul>
    18. 18. Financing Options <ul><li>Conventional Loan </li></ul><ul><ul><li>Your local commercial bank. </li></ul></ul><ul><ul><li>Looking for “Character and Credit” </li></ul></ul><ul><li>Tap into 401K </li></ul><ul><ul><li>There may be penalties </li></ul></ul><ul><ul><li>You can rollover your 401K into an new plan that you control </li></ul></ul><ul><li>Home equity </li></ul><ul><ul><li>Your least expensive form of financing </li></ul></ul><ul><li>Partnerships & investors </li></ul><ul><ul><li>Partners share risk, duties </li></ul></ul><ul><ul><li>$$ from family and friends </li></ul></ul><ul><li>S.B.A. Loan or Loan Guarantee </li></ul>
    19. 19. It’s All About Attitude <ul><li>It’s not what you CAN DO that’s important. It’s what you WILL DO! </li></ul>
    20. 20. OK. Why Do You Need Me … To Help You Find A Franchise? <ul><li>Most people begin this process saying, “I want to buy a Subway…” They fall in love with the product or service without really knowing whether it would make a GOOD INVESTMENT. There are MANY well-known franchises that are not necessarily good investments – so you have to know what you are doing. </li></ul><ul><li>There are over 3,500 companies that call themselves franchises – the evaluation process can be overwhelming unless you are focused – that is, you know what you want and know what to look for. </li></ul><ul><li>Most people “don’t know what they don’t know.” Just like buying a house for the first time, purchasing a franchise can be full of challenges – and it helps to have an advisor at your side. </li></ul>
    21. 21. So What Does MatchPoint Provide? <ul><li>MatchPoint offers a FREE SERVICE to people who are thinking about getting into a franchise business of their own. </li></ul><ul><li>The company was founded with a single purpose: </li></ul><ul><ul><li>to allow normal individuals like you and me the same tools, techniques and coaching for finding a franchise that are usually restricted to franchising’s “inner circle.” </li></ul></ul><ul><li>In fact, we even call the service we offer “the insider’s approach to finding a franchise.” </li></ul>
    22. 22. The Insider’s Approach <ul><li>Heat Map Profiling TM tool uses sophisticated psychological profiling techniques to “match” your personality characteristics to those of the successful owners in our select portfolio of franchise partners. </li></ul><ul><li>This tool can help provide you some initial guidance toward the “right” franchise industry segment(s) for you, and also help you see “hidden potential” in yourself – particularly if you feel your career has been in a rut. </li></ul>
    23. 23. The Insider’s Approach <ul><li>“I always knew I wanted to be someone… I just didn’t know I needed to be more specific.” Lily Tomlin </li></ul>
    24. 24. The Insider’s Approach <ul><li>Our 6-Step Process </li></ul><ul><ul><li>Initial Overview </li></ul></ul><ul><ul><li>PCQ </li></ul></ul><ul><ul><li>Heat Map/Shapes Profile </li></ul></ul><ul><ul><li>Consultation </li></ul></ul><ul><ul><li>Brand Review </li></ul></ul><ul><ul><li>Brand Coaching & Counseling </li></ul></ul>
    25. 25. Questions – and Answers
    26. 26. <ul><li>Thank you! </li></ul><ul><li>For more information - </li></ul><ul><li>Warren J. Rutherford </li></ul><ul><li>Owner </li></ul><ul><li>The Executive Suite </li></ul><ul><li>129 Airport Road </li></ul><ul><li>Hyannis, MA 02601 </li></ul><ul><li>[email_address] </li></ul><ul><li>www.theexecutivesuite.com </li></ul><ul><li>508-778-7700 </li></ul>

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