PART SEVEN

What is Franchising? Franchising is a method of doing business wherein a "franchisor" authorizes proven methods of doing business to a "franchisee" for a fee and a percentage of sales or profits. Is Franchising for you?

Franchising is a method of doing business wherein a "franchisor" authorizes proven methods of doing business to a "franchisee" for a fee and a percentage of sales or profits.

Who belongs in this category? Any type of a Franchise Owner (“franchisee”) if you are not a Franchisor Do you have what it takes to be a Franchise Owner?

Any type of a Franchise Owner (“franchisee”) if you are not a Franchisor

“ Franchising” Pros Franchise Leverage: Yes Franchisor’s Model Franchisor’s Success Franchisor’s Training

“ Franchising” Cons Franchise Control: No Customer Base: Limited Startup Costs: High Carrying Costs: High Scale- ability: No Growth Potential: Limited Replic- ability: No Multiple Income Streams: No Profit- ability: Limited

Level of Effectiveness Pros: 1 Cons: 9 Level of Effectiveness = 10% Franchise Leverage: Yes Franchisor’s Model Franchisor’s Success Franchisor’s Training Franchise Control: No Customer Base: Limited Startup Costs: High Carrying Costs: High Scale- ability: No Growth Potential: Limited Replic- ability: No Multiple Income Streams: No Profit- ability: Limited

Pros: 1

Cons: 9

Analysis Franchising Facts: Franchise is a legal and commercial relationship between the owner of a trademark, service mark, brand name, or advertising symbol (the franchisor) and an individual or organization (the franchisee) wishing to use that identification in a business. The franchise governs the method of conducting business between the two parties. Generally, a franchisee sells goods or services supplied by the franchisor or that meet the franchisor's quality standards.

Franchising Facts:

Franchise is a legal and commercial relationship between the owner of a trademark, service mark, brand name, or advertising symbol (the franchisor) and an individual or organization (the franchisee) wishing to use that identification in a business.

The franchise governs the method of conducting business between the two parties.

Generally, a franchisee sells goods or services supplied by the franchisor or that meet the franchisor's quality standards.

Analysis Advantages of Franchising: Established Brand and Customer Base Marketing Support Business Support Training Support Access to Proprietary Methods Reduced Risk

Advantages of Franchising:

Established Brand and Customer Base

Marketing Support

Business Support

Training Support

Access to Proprietary Methods

Reduced Risk

Analysis Disadvantages of Franchising: Initial Payout Royalty Payments Marketing/Advertising Fees Limited Creativity/Flexibility Sole Sourcing Long-Term Contract Dependent on Franchisor Success and Reputation False Expectations

Disadvantages of Franchising:

Initial Payout

Royalty Payments

Marketing/Advertising Fees

Limited Creativity/Flexibility

Sole Sourcing

Long-Term Contract

Dependent on Franchisor Success and Reputation

False Expectations

Quote “ Why would anybody go out and spend $50,000 on a franchise to makes whatever when you can just start a business with no capital out of pocket and way more scalable ?” – Brad Fallon, a Co-founder of StomperNet

“ Why would anybody go out and spend $50,000 on a franchise to makes whatever when you can just start a business with no capital out of pocket and way more scalable ?”

– Brad Fallon, a Co-founder of StomperNet

Takeaways “ If you are a real entrepreneur – then franchising may not be for you. Real Entrepreneurs don’t own franchises – they choose their own path to success. All franchises are “screening out” entrepreneurs because they don’t want them to mess with existing model.” – Rich Schefren

“ If you are a real entrepreneur – then franchising may not be for you. Real Entrepreneurs don’t own franchises – they choose their own path to success.

All franchises are “screening out” entrepreneurs because they don’t want them to mess with existing model.” – Rich Schefren

Is Franchising Model for you? Go and find out at: BizSuccessBlueprint.com