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Is Franchising a Fit For You?
Brandon Clifford
SR. Franchise Consultant
brandon@globalfranchisesolutions.com
www.globalfranchisesolutions.com
978-891-7145
Unhappiness in the Workplace
 A recent Monster Workforce Talent Survey of nearly
6,000 registered Monster users found employee
satisfaction levels at a low.
 According to the Monster survey, conducted from
mid January, 2013 to February, 2013:
 42% of respondents said they are
dissatisfied with their current job
 81% of those surveyed who are employed
plan to actively search for a new job in the
next year
I want to be my own Boss!
70%of All People Have Thought Seriously
about Owning Their Own Business
 Vast majority don’t know where to start
 Scared off by others Failures
 Lack the self-confidence to take the leap
 Trade the “safe” feeling of their job for
their lack of self-fulfillment
 Think they will never have enough
resources to start a business
Reasons for Business Ownership
 Control your own financial freedom
 Build an asset for future sale or to leave as a
LEGACY
 Create more control and freedom for your
time
 Satisfaction and happiness in day-to-day
activities
 Fair reward - make money for yourself
instead of the company
 Emotional fulfilment of building your own
dream
 Create an opportunity to work with family
 Remove threat of job loss
 Replace lost income stream
 Franchising is not a business or industry itself
 Franchising is a business strategy for growth by the Franchisor
designed to penetrate and dominate a marketplace
 Good Franchises have an efficient distribution system in place
(Hamburger meat, muffler parts, coffee grounds, Knowledge,
training, software, databases)
 Leverage growth through resources of stakeholders
 Franchisees get the franchisor’s knowledge, experience, effort,
purchasing power, financial power
 Similar goals & unified thinking among participants
“Community”
 Strategic-Partnership
Elements of a Franchise
 Brand - the Franchise name associated
with the products or services delivered
in a memorable and satisfying
experience
 Operating System – institutionalizes
an excellent service delivered in a
memorable experience so it can be done
over and over again from unit to unit in
a consistent manner
 Support System – helps the
Franchisee get better and better at
delivering the service in a memorable
experience – helps a Franchisee
improve their performance
 Franchisee – the individual
motivations or reasons for being a
part of a vibrant system
Value of Systems in a Franchise
 Reduced Risk – Proof of success is in place
 Operating System – Success Formula has been established for you
 You don’t have to re-create the wheel – or many wheels
 Other Franchisees with their ‘feet on the street’ – emulate the best
 Advice & support from the Franchisor – position of experience
 Collaboration – Share best and worst practices with similar people
 Systems continually adjusted, changed, & improved
 Training systems
 Sales & marketing strategies and systems
 Manuals & other documentation
 Letters, contracts, agreements, documents – all in place
 Development costs – shared resources
 Purchasing power
Entry Into a Franchise System
 Franchise Fee
The Franchise Fee is the cost of putting the
Franchisee into the business of the Franchisor,
not as a partner, but as a participant.
Entry fee to the point of the completion of the
initial training programs.
Give access to all of the Franchisor’s systems
 Royalty Fee
The Franchisor’s share of the revenue
generated by each Franchisee using the
Franchisor’s systems
The oil that makes the engine run
 Advertising & Marketing Fee
Used to build Brand presence to benefit all
members.
Advertising campaigns, marketing campaigns,
co-op programs, Search Engine Optimization,
Creative Artwork, collateral development
costs, etc
Evaluation – Making an Informed Decision
 System of discovery – two-way exchange of information
 Step-by-step qualification system should be in place
 Open & honest exchange of information
 30 – 120 days to complete the due diligence process
 Should never feel pressure to move too quickly yet the
information you need must be accessible – usually on a
schedule set out by the Franchisor
 Includes open access to all Franchisees in the system
 The goal is to feel comfortable to make an informed
decision about becoming Strategic-Partners
Franchisor Disclosure – Get All of the
Pertinent Information
 Exchange information on a fair and
equitable basis
 Formal Disclosure Documents
 No decisions – documents for 14 days
 Cooling off period – final documents for 7
days
 Full disclosure of all Franchisees
 Earnings Claims – some do, some don’t
 Financial performance data will be obtained
from Franchisees
Important Consideration – Exit Strategy
 How will the business be valued at time of
exit?
 Do the customers/clients carry an ongoing
future cash flow value?
 How will the value be affected by changing
demographic conditions?
 How will the value be affected by changing
competitive environment?
Facing the Fears – Realizing the Dream
Common and expected fears – we all have them
 Fear of change, failure, unknown – Perfectly natural!
 Naysayers are everywhere – the ‘fire hose brigade’
 Listen to advisors but trust yourself too
 Face it – feel it – blast past it – the only path to the dream
 It will never be the perfect time where all the stars line up
 Opportunity
 Finances
 Family
 Market Conditions
 Demographics
 Advisors
Franchise Consultant Value
 Money – help avoid wasting your resources
pursuing less than optimal matches for you
 Time – spend my time to help you sort
through thousands of Franchise options
 Security in decision making – help you
eliminate systems that don’t fit for you and
your characteristics
 Knowledge – apply my specialized Franchise
knowledge and experience for your benefit
 Provide education about Franchising
 Interview/Profile/Discuss/Follow up
 Identify characteristics most important to you
 Help identify best options for you
 Match your qualifications to appropriate systems
 Help with selection of systems to learn about
 Introduction to appropriate personnel at those Franchisors
 Act as a buffer between you and Franchisor
 Help with information exchange process
What’s My Role?
Brandon Clifford
Ph. 978-891-7145
Em. brandon@globalfranchisesolutions.com
www.globalfranchisesolutions.com

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Is franchising a fit for you?

  • 1. Is Franchising a Fit For You? Brandon Clifford SR. Franchise Consultant brandon@globalfranchisesolutions.com www.globalfranchisesolutions.com 978-891-7145
  • 2. Unhappiness in the Workplace  A recent Monster Workforce Talent Survey of nearly 6,000 registered Monster users found employee satisfaction levels at a low.  According to the Monster survey, conducted from mid January, 2013 to February, 2013:  42% of respondents said they are dissatisfied with their current job  81% of those surveyed who are employed plan to actively search for a new job in the next year
  • 3. I want to be my own Boss! 70%of All People Have Thought Seriously about Owning Their Own Business  Vast majority don’t know where to start  Scared off by others Failures  Lack the self-confidence to take the leap  Trade the “safe” feeling of their job for their lack of self-fulfillment  Think they will never have enough resources to start a business
  • 4. Reasons for Business Ownership  Control your own financial freedom  Build an asset for future sale or to leave as a LEGACY  Create more control and freedom for your time  Satisfaction and happiness in day-to-day activities  Fair reward - make money for yourself instead of the company  Emotional fulfilment of building your own dream  Create an opportunity to work with family  Remove threat of job loss  Replace lost income stream
  • 5.  Franchising is not a business or industry itself  Franchising is a business strategy for growth by the Franchisor designed to penetrate and dominate a marketplace  Good Franchises have an efficient distribution system in place (Hamburger meat, muffler parts, coffee grounds, Knowledge, training, software, databases)  Leverage growth through resources of stakeholders  Franchisees get the franchisor’s knowledge, experience, effort, purchasing power, financial power  Similar goals & unified thinking among participants “Community”  Strategic-Partnership
  • 6. Elements of a Franchise  Brand - the Franchise name associated with the products or services delivered in a memorable and satisfying experience  Operating System – institutionalizes an excellent service delivered in a memorable experience so it can be done over and over again from unit to unit in a consistent manner  Support System – helps the Franchisee get better and better at delivering the service in a memorable experience – helps a Franchisee improve their performance  Franchisee – the individual motivations or reasons for being a part of a vibrant system
  • 7. Value of Systems in a Franchise  Reduced Risk – Proof of success is in place  Operating System – Success Formula has been established for you  You don’t have to re-create the wheel – or many wheels  Other Franchisees with their ‘feet on the street’ – emulate the best  Advice & support from the Franchisor – position of experience  Collaboration – Share best and worst practices with similar people  Systems continually adjusted, changed, & improved  Training systems  Sales & marketing strategies and systems  Manuals & other documentation  Letters, contracts, agreements, documents – all in place  Development costs – shared resources  Purchasing power
  • 8. Entry Into a Franchise System  Franchise Fee The Franchise Fee is the cost of putting the Franchisee into the business of the Franchisor, not as a partner, but as a participant. Entry fee to the point of the completion of the initial training programs. Give access to all of the Franchisor’s systems  Royalty Fee The Franchisor’s share of the revenue generated by each Franchisee using the Franchisor’s systems The oil that makes the engine run  Advertising & Marketing Fee Used to build Brand presence to benefit all members. Advertising campaigns, marketing campaigns, co-op programs, Search Engine Optimization, Creative Artwork, collateral development costs, etc
  • 9. Evaluation – Making an Informed Decision  System of discovery – two-way exchange of information  Step-by-step qualification system should be in place  Open & honest exchange of information  30 – 120 days to complete the due diligence process  Should never feel pressure to move too quickly yet the information you need must be accessible – usually on a schedule set out by the Franchisor  Includes open access to all Franchisees in the system  The goal is to feel comfortable to make an informed decision about becoming Strategic-Partners
  • 10. Franchisor Disclosure – Get All of the Pertinent Information  Exchange information on a fair and equitable basis  Formal Disclosure Documents  No decisions – documents for 14 days  Cooling off period – final documents for 7 days  Full disclosure of all Franchisees  Earnings Claims – some do, some don’t  Financial performance data will be obtained from Franchisees
  • 11. Important Consideration – Exit Strategy  How will the business be valued at time of exit?  Do the customers/clients carry an ongoing future cash flow value?  How will the value be affected by changing demographic conditions?  How will the value be affected by changing competitive environment?
  • 12. Facing the Fears – Realizing the Dream Common and expected fears – we all have them  Fear of change, failure, unknown – Perfectly natural!  Naysayers are everywhere – the ‘fire hose brigade’  Listen to advisors but trust yourself too  Face it – feel it – blast past it – the only path to the dream  It will never be the perfect time where all the stars line up  Opportunity  Finances  Family  Market Conditions  Demographics  Advisors
  • 13. Franchise Consultant Value  Money – help avoid wasting your resources pursuing less than optimal matches for you  Time – spend my time to help you sort through thousands of Franchise options  Security in decision making – help you eliminate systems that don’t fit for you and your characteristics  Knowledge – apply my specialized Franchise knowledge and experience for your benefit
  • 14.  Provide education about Franchising  Interview/Profile/Discuss/Follow up  Identify characteristics most important to you  Help identify best options for you  Match your qualifications to appropriate systems  Help with selection of systems to learn about  Introduction to appropriate personnel at those Franchisors  Act as a buffer between you and Franchisor  Help with information exchange process What’s My Role?
  • 15.
  • 16. Brandon Clifford Ph. 978-891-7145 Em. brandon@globalfranchisesolutions.com www.globalfranchisesolutions.com