Gateway Franchising Linkedin Presentation


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Gateway Franchising Linkedin Presentation

  1. 1. For more information, pleasecontact Chris Hanley at 877-719-0219 or
  2. 2. Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584 chanley@4axxiom.com1. An Introduction to Gateway Franchising;2. The Gateway Method;3. Existing Business Opportunities4. Some of The Most Popular Franchise Industries; • Disaster & Commercial Restoration; • In-Home Care & Senior Care; • Staffing / Temporary Placement Office; • Service Industry; • Business Development & Training; • Dry Cleaning• Conclusion
  3. 3. Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584• What Are You: We are a full service franchise and business brokerage firm.• What Do You Do: We help eager entrepreneurs find quality franchises and businesses. • We help franchisors and business owners by: • Finding qualified candidates who are interested in starting a new business or franchise; • Selling their existing franchises and businesses to buyers who are looking for going concerns; • Developing and sustaining a positive working relationship with prospective franchisees / business buyers; • Helping their franchise candidates secure access to credit. • We help prospective franchisees and those looking for businesses by: • Finding high quality, established businesses and franchises that are available in their area; • Screening out less desirable concepts by providing assistance with the due diligence process; • Considering new businesses and industries that they have likely never considered before; • Helping them secure credit through traditional avenues (e.g. HELOC and 401(k)) and alternative routes (e.g. 401(k)) with reputable lenders.• How Many Companies Do You Work With: Dozens. We represent a number of businesses and franchises around the United States. We even offer some franchises internationally.• How Are You Paid: Gateway Franchising’s entire fee is paid by the franchise or business seller. Each company we work with has committed to us that our purchaser clients will not pay any more or less for their business or franchise because they made use of our services. Because of this commitment, our valuable services are offered to you at no cost. Franchisors and business sellers are willing to pay our fee because we save them time and deliver big results by consistently presenting them only with the most highly qualified and interested applicants;• Are You Affiliated With Any National Firms: Yes, we are proudly affiliated with Axxiom Franchise Advisors.
  4. 4. Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584• The Method’s Purpose: We employ a distinct investigative process to help our clients find the right opportunities for them. While our method will not relieve you of your duty to do due diligence before you make your investment, it can save you time by weeding out bad opportunities early in the process.• The Method: • Pre-Screening: Before presenting a franchise to a client, we engage in a multi-point due diligence investigation of that company. We do this by investigating the franchise’s litigation and operating history, earnings claim and financial data, and other factors that we believe are relevant to ensuring the overall health of a franchise system. Only franchises that pass this initial inspection are presented to franchisees; • Discovery Process: We invest ourselves in the process of finding a franchise or business and expect our clients to do the same. We get to know them as people and as prospective business owners. This is done through both a number of phone conversations or in-person interviews and through the completion of a rigorous questionnaire. Once we understand what they are looking for and what we believe they will be successful with, we begin presenting initial franchise concepts for their consideration. This process continues until they have three or four concepts that they would like to investigate; • On-Going Support: We continue to provide assistance and present concepts until our clients are satisfied that they have found an investment grade franchise. We provide guidance and advice on issues ranging from due diligence to marketing, from financing to human resources, and will offer ongoing assistance on a case-by-case basis.
  5. 5. Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584 • One of our areas of specialization is helping business owners sell existing businesses. We focus on businesses that are affordable for everyday people. • Many of our “re-sales” are listed at prices that are under $100k, have an existing book of business that will cause them to either turn a profit or break even from day one, and can be purchased with SBA loans; • A brief survey of our extensive re-sale opportunities shows businesses for sale in the following areas and industries. This is just a sampling, so if you’re in the market for an existing business, please contact us:• Automotive Services / • Home Repair / General • Senior Care / Repair: Service Franchises: Home Care: • Atlanta, GA. • New York City Metro • Jacksonville • Houston, TX; Area; , FL; • Phoenix, AZ. • San Francisco Bay Area. • Southern• Dry Cleaning Routes: • Residential Maid Service: CA. • Durham, NC; • Kentucky; • Reno, NV. • Michigan; • Washington State.
  6. 6. Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584• Preferred Businesses – While we represent dozens of franchises from a variety of industries, many of our clients consider these industries. A summary page for each of these industries is provided in this presentation: • Disaster & Commercial Restoration; • In-Home Care & Senior Care; • Staffing / Temporary Placement Office; • Service Industry; • Business Development & Training; • Dry Cleaning.• Our Clients – • Clients in Transition: A significant percentage of Gateway’s clients are between professions or are looking for the next step in their career. Whether they’ve plateaued, been downsized, or have been laid off, business ownership is an appealing alternative to the status quo; • Lifelong Dream: A number of our clients have always dreamed of business ownership. Now is the time and we are here to help; • Equity Groups: Gateway Franchising works with equity groups that are looking to diversify their investment holdings by adding businesses and franchises to their portfolio.
  7. 7. Why Consider A Disaster & Commercial Restoration Chris Hanley Phone: (636) 220-6965Franchise? Cell: (314) 606-3584 What is Disaster & Commercial Restoration? – It’s an industry that provides needed services to property owners and insurance companies. Franchisees in this field will minimize and fix fire, smoke, mold, and water damage. They will also offer routine maintenance services, like carpet cleaning or graffiti removal. Some businesses in this industry also offer crime scene clean up services; How Much do These Franchises Cost? – typically between $80,000 - $110,000; Are They Profitable? – They can be profitable. This table shows the earnings claim that is made by one of our preferred disaster and commercial restoration franchises. Please rely only on the data found in the FDD you are provided by the franchisor when making an investment decision, as this information will vary from business to business and from year to year: How Do Franchisees Get Clients? – Most of their business comes from other businesses. Specifically, franchisees get the majority of their business through insurance company referrals, property managers, and commercial construction contractors. Franchisors have solid referral relationships with these and other businesses; What Does the Franchisee Do? – Network with other business owners, manage the daily operations of the business, and perform back office functions. Franchisees will not actually perform the work themselves, since they generally lack the experience and certifications required by health and fire codes; How Large is the Market? – It’s extremely large and it is dominated by just two or three franchise operations. Insurance payers are no longer instructing people to throw away all of their damaged property. Instead, they are looking to restore the property; What Advantages Does a Franchise Confer Upon Franchisees? –  Existing Relationships – The franchisor’s relationship with banks, insurance companies, and suppliers often translates to better rates and prices for franchisees;  Marketing & Training – franchisees receive business training, marketing support, and are even taught how to perform many of the services their businesses offer;  Cooperative Advertising & Client Acquisition – franchisees work together to control local markets.
  8. 8. Why Consider An In-Home or Senior Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584 Care Franchise?• Industry Introduction: • Services – Franchises offer non-medical services (e.g. meal preparation) and medical services (e.g. diabetes management and post-surgical care); • Clientele – 60% of in-home care clients are 65+. 80% of customers are “self- pay” and pay with cash; • Revenue Streams – businesses enjoy multiple revenue streams. Most franchisees offer, in addition to the medical and non-medical in-home care services, flu shot clinics, medical training, medical staffing, VA services, and various on-site services to local hospitals and care centers.• Investment – Typical franchises cost between $70,000 - $120,000;• Financial Performance – See our preferred franchisor’s chart to the right; • Average Gross Margin - 37.89%. Please rely only on the data found in the FDD you are provided by the franchisor when making an investment decision, as this information and the information in the provided chart will vary from business to business and from year to year; • High Per-Patient Revenues – Successful home care businesses will have about 50 clients. Because client retention is typically very high for this industry and because each account generates substantial revenues, this business is all about compassionate customer service and patient care; • Low Advertising Costs – Most clients are “pushed” to your business by referrals. By treating your existing clients well, you will ensure the future success of your business.• Why a Franchise? – • Large Media Presence – Our preferred franchise has exclusive relationships with major web portals. This web campaign contributes to roughly 20% of the typical franchisee’s bottom line; • National Accounts – Our franchisors have national accounts with companies, health care providers, and insurance payers. These accounts are off limits to small, local home care businesses because they cannot match these companies’ substantial demands. This means more business for your business; • Training and Support – Franchisees benefit from substantial training that begins well before you open and continues long after you are in operation; • Proven Process – With a solid franchise, you’re never reinventing the wheel. Our preferred franchise has over 300 operating franchisees and does business throughout the country. It’s clear that their model is both proven and replicable.
  9. 9. Why Consider A Staffing / Temporary Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584 Placement Franchise?• Industry Introduction: • Services – Franchisees place skilled and unskilled workers in positions that must be filled. Placements range from retail and light manufacturing through professional positions; • Clientele – Employers are increasingly hesitant to assume the risks, costs, and liabilities associated with permanent employees. Even major companies, such as Wal-Mart, are turning to staffing agencies to meet their needs; • Revenue Streams – Staffing agencies have three distinct revenue streams: • Temporary Placement – Franchisees are paid an hourly premium for each employee they place at a position. Temporary workers can work at a placement for a rather long period of time and can generate substantial equity for the franchisee in the process; • Temporary-to-Permanent Placement – Franchisees are paid the hourly premium and a lump sum hiring bonus if the employee is converted to full time; • Permanent Placement – Franchisees are paid a one-time flat recruiting rate. The arrangement can be tremendously lucrative for professional placements;• Investment – Franchises typically cost about $165,000;• Financial Performance – • Average Annual Gross Billings – $4.5 MM; • Average Annual Gross Margin –$800,000; • Please rely only on the data found in the FDD you are provided by the franchisor when making an investment decision, as this information will vary from business to business and from year to year• Why a Franchise? – • National Accounts – Our preferred franchise provides franchisees with the benefit of upwards of 9,000 national, regional, and local accounts. These accounts include employers like Wal-Mart; • 100% Payroll Funding – Because staffing agencies are technically the “employer of record” for temporary employees, they must come up with the payroll for each of their temporary employees. This is a daunting task when you consider that established staffing agencies can exceed 1,000 temporary employees! Franchisors will pay your employees, bill your placements, and collect your accounts for you. This funding allows you to grow your business quickly and sustainably.
  10. 10. Chris Hanley Why Consider A Service Industry Franchise? Phone: (636) 220-6965 Cell: (314) 606-3584• Industry Introduction: • Services – Service brands cover a spectrum of businesses. Some of the businesses are simple to administer, such as dry cleaning pickup franchises. Others, such as commercial kitchen cleaning and maintenance franchises are more complex; • Clientele – Varies based on concept type; • Dry Cleaning Pickup (home based) – typical client is a household that commutes 40+ minutes per day to a white collar profession. They spend approximately $90 / month on dry cleaning; • Commercial Kitchen Cleaning (home based) – all locations that have commercial kitchens. This includes restaurants, churches, hospitals, nursing facilities, and schools. Because various laws and regulations compel them to purchase your service, you will be assured that a typical client will use your service four times per year; • Home Cleaning Businesses – the typical client will spend $5,000 per year on house cleaning services. Upper middle and upper class homes are the most common purchasers of these services.• Investment – Varies on concept type; • Dry Cleaning: $50k - $100k • Commercial Kitchen Cleaning - $94k - $156k • Home Cleaning - $85k - $124k• Financial Performance – Varies on concept type (see Franchise Disclosure Document); • Dry Cleaning: Average 2 van model - $344,174 in annual sales, average gross margins of 54%, average profit of 20%; • Money Back Guarantee – Full refund of franchise fee if franchisee does not generate a predetermined amount in gross sales during their first 18 months of operations. • Home Cleaning – Average gross sales per franchisee - $649,955; average weekly sales - $13,070. • Money Back Guarantee – Full refund of franchise fee if franchise does not generate a predetermined amount in gross sales during the first 18 months of operations.• Why a Franchise? – • Large Media Presence – Our preferred service brand franchises aggressively market their services and have developed household names in otherwise heavily fragmented industries; • National Accounts – Many service brand franchises, e.g. the kitchen cleaning business, direct a substantial amount of work to their owners. Franchisees of that concept can count on getting substantial business from companies like Taco Bell, Pizza Hut, Buffalo Wild Wings, KFC, etc; • Proven Process – These businesses have a strong national presence and have been successfully replicated over 150 times per concept. Their numbers speak for themselves!
  11. 11. Why Consider A Business Development / Chris Hanley Phone: (636) 220-6965 Coaching / Consulting Franchise? Cell: (314) 606-3584• Industry Introduction: • Services – Franchises offer a range of consultative and development services to small and mid- sized businesses; • Clientele – Most of these businesses focus on small to mid-sized businesses. They rarely have more than 100 employees; • Revenue Streams – Monthly service fees, consulting fees, placement fees, and audit fees. • Concept – These businesses focus on direct business coaching, collective business development, and training.• Investment – Typical franchises cost between $39k - $115k. The cost range is attributed to the size of the protected territory;• Financial Performance – Please rely only on the data found in the FDD you are provided by the franchisor when making an investment decision, as this information will vary from business to business and from year to year. The below data is from our preferred franchisor’s most recent FDD:Why a Franchise? The franchises in this industry have provenmethods that boost consultant performance and client retention.While typical independent consultant clients will stay with theirconsultant for just six months, our preferred franchisee boasts atypical client retention rate in excess of three years.
  12. 12. Why Consider A Commercial Signage Business? Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584• Industry Introduction: • Products – These businesses are not retail print operations (e.g. Kinkos). They do not focus on printing business cards, fliers, or paper documents. Instead, they produce indoor & outdoor signs for commercial applications (e.g. illuminated outdoor signs), car wraps, window printing, and other commercial signage; • Clientele – These are B2B operations. Roughly 30 commercial customers generate 80% of a typical location’s revenue. Customers are sophisticated and know specifically what they want; • Concept – Our most successful operations offer franchisees substantial training, require only about 5 employees to run an established business, and have identifiable brand names. They have 100+ operating units and about 25 years of operating history;• Investment – Most of these businesses cost between $140k - $220k, depending on location and floor plan. Costs can be kept to a minimum, as these businesses are not typically placed in retail space;• Financial Performance – Our preferred franchise, which operates 138+ locations and has decades of operating history has reported the following data in their Item 19 Earnings Claim:. Please rely only on the data found in the FDD you are provided by the franchisor when making an investment decision, as this information will vary from business to business and from year to year: • Average Gross Sales • 2008 - $462,856 • 2010 - $406,397 • 2010 - $432,517 • Average Expenses • Cost of Sales – 30%; • Salaries & Wages – 28.1%; • Rent – 9.6%; • Advertising – 3.1%
  13. 13. Why Consider A Dry Cleaning Business? Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584• Industry Introduction • Success Rate: Dry cleaning has one of the highest success rates of any small business (96.2%) according to The Wall Street Journal, Small Business Administration and Forbes Magazine; • Strong Parent Company: Parent company has a 50+ year history and has set up over 6,000 dry cleaning locations in the U.S.; • Financing Options: Parent company offers up to 70% financing. You can start a simple “drop off” store for about $60,000 out of pocket; • Ongoing Support Without Ongoing Fees: Parent company continues to offer substantial ongoing training and marketing plans, but does not charge a royalty, franchise fee, or advertising fee.• Operational Details • Location Layout: • Simple Drop Off Site – Owner does no cleaning, simply runs a pick up / drop off location; • Drop Off Site with Wash Plant – Owner does cleaning and pick up / drop off; • Van Route – Many owners operate van routes to add clients. • Management: May be run as a part time business by an absentee owner. Many owners ultimately own and operate more than one location. • Full business plans available upon request. • Site selection, layout, and lease negotiation assistance provided.
  14. 14. Chris Hanley Phone: (636) 220-6965 Cell: (314) 606-3584• If you’re ready to make a change in your life or are just interested in learning more about entrepreneurship, please contact me. After our initial conversation, I will provide you with highly detailed concept presentations for the businesses that will closely match your interests and qualifications. Christopher Hanley Toll Free Line: 877-719-0219 Local: 636-220-6965 E-Mail: Chanley@4axxiom.comLooking for tips on due diligence, industry assessments, andother franchise related topics? Check out our franchise blog: