This document discusses franchising as a potential business opportunity. It notes that many people are unhappy in their current jobs and want more control over their work and finances. Franchising allows individuals to be their own boss while benefiting from an existing business model and brand. The document outlines key aspects of franchising like the operating system, support system, fees involved, and evaluation process. It acknowledges common fears around business ownership but emphasizes that franchising reduces risk through a proven system. The summary concludes that a franchise consultant can help navigate options and make an informed decision.
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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?