Franchising Smart - Choosing the Right Franchise  Presented by Warren J. Rutherford The Executive Suite & Sr. Franchise Consultant  MatchPoint Networks
Three Roads Yogi Berra said, “When you come to a fork in the road, take it” Stay the course Find a new J.O.B. (no surprises) Serial Employment or Unemployment Go it alone Start an independent business  (Failure rate very high) Buy an existing  business Odds are better, you get to see financials Will you get properly trained?  On-going support? Partner with success Join a franchise organization Established, verifiable “Success Package”  90+% success rate among franchises
Franchise Statistics: Did You Know? Franchising offers an excellent opportunity for you to be in business for yourself but not by yourself A franchise opens every 8 minutes in the United States Franchising employs over 21 million people  There are 3,500 franchise concepts in 75 industries (there is life after food)  Franchising accounts for 1.53 trillion in sales and 50% of all retail sales  That 1 out of 12 retail businesses is a franchise?  That After 5 Years, 92% of Franchised Businesses Are Still Operating?
What are the benefits?  Start from scratch as an Independent Success rate after 5 years starting from scratch
What are the benefits? Franchising Success rate after 5 years starting as a Franchise
What are the benefits? Franchising vs. Independent (SBA statistics) Franchises - Still Open From Scratch - Closed
Types of Franchises Home Based – B2B or B2C but you are typically “out and about” Service Based – B2B or B2C – “warm leads” Location Based – simple retail and sophisticated retail
The Challenges Working Within the System Entrepreneur vs. Frantrepreneur System Conformity The Risk Franchising is not Risk Free 90% Plus Success Rate for the Franchising Industry Working with the Franchisor Buying a Franchise is Like Getting Married Legally Binding Relationship False Expectations There is no Instant Success Tremendous Time and Financial Commitment Be Realistic Managing the Business Do you have Previous Business Experience? Assess your abilities to run a Business The Fees Franchise Fee (one time fee) Royalty (% of gross sales) Ad Fund (% varies)
That’s All Great, BUT… Do YOU Have What It Takes To Be In Business For Yourself, Not By Yourself?????
A Test For You… Which of the following backgrounds produce successful franchise owners? Tradesmen (Painters, Carpenters, Construction workers, Installers, Contractors, printers, etc.) Restaurateurs (Anyone with experience managing or owning restaurants) Lifelong Corporate or Federal Employees (Administrators, Managers, Directors, Project Managers, Service Providers, Marketers, Salesmen, etc.) Entrepreneurs  Professionals (Doctors, Lawyers, Consultants, CEO’s, CFO’s, Accountants, Professors/Teachers, Chemists, etc.) Technicians (Computer tech, engineers, etc.) Stay-at-Home Moms THEY ALL DO!
Why Is This True? Because the basic franchise model provides many of the tools needed to succeed – then you build your customer base and “work it.”  As a result, THOUSANDS of people, regardless of their prior backgrounds, have been able to enter franchising and succeed. 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. Is it time for you to consider a change?
What DOES Franchising Provide? A Proven Operating System Operating Manuals Initial Training On-going Training/Support Marketing & Sales Training A Proven Marketing Plan On-going R & D Customer Support Defined Territories, Based Upon Target Demographics, etc. Technical and Administrative Support – Management Software, Web Support, etc. A Brand Name, that grows and grows and grows in value 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.
What Makes You Want to Change? POSITIVE VS. NEGATIVE MOTIVATION? INSPIRATION OR DESPERATION? Are You Running From Something Or Toward Something? BUYING A BUSINESS SHOULD BE A BURNING DESIRE “ Know your outcome.  Give your brain a BIG enough reason WHY, AND YOU CAN ACCOMPLISH ANYTHING” - Anthony Robbins
So why a Business anyway? If you continue on your path, will you be happy at retirement?  If your life continues in the same way it's been going... Will you actually be where you honestly want to be in life this same time next year?  How can you be certain you'll be any closer to the financial freedom you want?  Will you're dreams, plans, and desires actually come to be your reality?
So why a Business anyway? If you continue on your path, where will you be in five to ten years? Their dreams or your dreams? What is your #1 fear for the future? It starts with attitude – “If you don’t like where you are in life, change it”
Questions Ready to take on the responsibilities, wear all the hats? Willing to follow systems? Have a history of success in dealing with people? Can you afford it?  (20-35% personal cash infusion) plus personal living expenses for first year Is it a product/service you can get behind 100%? Do you have family/spouse support?
How To Investigate Identify your goals and vision Know yourself, strengths and weaknesses Identify good “fits” Initiate contact with franchisors Review initial packet Read and understand the Franchise Disclosure Document (FDD) Contact franchisees (validation calls) Visit franchisor (Discovery Day, or D-day) Make a decision MatchPoint 6 step process
Financing Options Conventional Loan Your local commercial bank. Looking for “Character and Credit”  Tap into 401K There may be penalties You can rollover your 401K into an new plan that you control Home equity Your least expensive form of financing Partnerships & investors Partners share risk, duties $$ from family and friends  S.B.A. Loan or Loan Guarantee
It’s All About Attitude It’s not what you CAN DO that’s important.  It’s what you WILL DO!
OK. Why Do You Need Me … To Help You Find A Franchise? 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.  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.  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.
So What Does MatchPoint Provide? MatchPoint offers a FREE SERVICE to people who are thinking about getting into a franchise business of their own.  The company was founded with a single purpose:  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.”  In fact, we even call the service we offer “the insider’s approach to finding a franchise.”
The Insider’s Approach 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.  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.
The Insider’s Approach “I always knew I wanted to be someone… I just didn’t know I needed to be more specific.”  Lily Tomlin
The Insider’s Approach Our 6-Step Process Initial Overview PCQ Heat Map/Shapes Profile Consultation Brand Review Brand Coaching & Counseling
Questions – and Answers
Thank you! For more information -  Warren J. Rutherford Owner The Executive Suite 129 Airport Road Hyannis, MA 02601 [email_address] www.theexecutivesuite.com 508-778-7700

Franchising Smart W Matchpoint

  • 1.
    Franchising Smart -Choosing the Right Franchise Presented by Warren J. Rutherford The Executive Suite & Sr. Franchise Consultant MatchPoint Networks
  • 2.
    Three Roads YogiBerra said, “When you come to a fork in the road, take it” Stay the course Find a new J.O.B. (no surprises) Serial Employment or Unemployment Go it alone Start an independent business (Failure rate very high) Buy an existing business Odds are better, you get to see financials Will you get properly trained? On-going support? Partner with success Join a franchise organization Established, verifiable “Success Package” 90+% success rate among franchises
  • 3.
    Franchise Statistics: DidYou Know? Franchising offers an excellent opportunity for you to be in business for yourself but not by yourself A franchise opens every 8 minutes in the United States Franchising employs over 21 million people There are 3,500 franchise concepts in 75 industries (there is life after food) Franchising accounts for 1.53 trillion in sales and 50% of all retail sales That 1 out of 12 retail businesses is a franchise? That After 5 Years, 92% of Franchised Businesses Are Still Operating?
  • 4.
    What are thebenefits? Start from scratch as an Independent Success rate after 5 years starting from scratch
  • 5.
    What are thebenefits? Franchising Success rate after 5 years starting as a Franchise
  • 6.
    What are thebenefits? Franchising vs. Independent (SBA statistics) Franchises - Still Open From Scratch - Closed
  • 7.
    Types of FranchisesHome Based – B2B or B2C but you are typically “out and about” Service Based – B2B or B2C – “warm leads” Location Based – simple retail and sophisticated retail
  • 8.
    The Challenges WorkingWithin the System Entrepreneur vs. Frantrepreneur System Conformity The Risk Franchising is not Risk Free 90% Plus Success Rate for the Franchising Industry Working with the Franchisor Buying a Franchise is Like Getting Married Legally Binding Relationship False Expectations There is no Instant Success Tremendous Time and Financial Commitment Be Realistic Managing the Business Do you have Previous Business Experience? Assess your abilities to run a Business The Fees Franchise Fee (one time fee) Royalty (% of gross sales) Ad Fund (% varies)
  • 9.
    That’s All Great,BUT… Do YOU Have What It Takes To Be In Business For Yourself, Not By Yourself?????
  • 10.
    A Test ForYou… Which of the following backgrounds produce successful franchise owners? Tradesmen (Painters, Carpenters, Construction workers, Installers, Contractors, printers, etc.) Restaurateurs (Anyone with experience managing or owning restaurants) Lifelong Corporate or Federal Employees (Administrators, Managers, Directors, Project Managers, Service Providers, Marketers, Salesmen, etc.) Entrepreneurs Professionals (Doctors, Lawyers, Consultants, CEO’s, CFO’s, Accountants, Professors/Teachers, Chemists, etc.) Technicians (Computer tech, engineers, etc.) Stay-at-Home Moms THEY ALL DO!
  • 11.
    Why Is ThisTrue? Because the basic franchise model provides many of the tools needed to succeed – then you build your customer base and “work it.” As a result, THOUSANDS of people, regardless of their prior backgrounds, have been able to enter franchising and succeed. 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. Is it time for you to consider a change?
  • 12.
    What DOES FranchisingProvide? A Proven Operating System Operating Manuals Initial Training On-going Training/Support Marketing & Sales Training A Proven Marketing Plan On-going R & D Customer Support Defined Territories, Based Upon Target Demographics, etc. Technical and Administrative Support – Management Software, Web Support, etc. A Brand Name, that grows and grows and grows in value 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.
  • 13.
    What Makes YouWant to Change? POSITIVE VS. NEGATIVE MOTIVATION? INSPIRATION OR DESPERATION? Are You Running From Something Or Toward Something? BUYING A BUSINESS SHOULD BE A BURNING DESIRE “ Know your outcome. Give your brain a BIG enough reason WHY, AND YOU CAN ACCOMPLISH ANYTHING” - Anthony Robbins
  • 14.
    So why aBusiness anyway? If you continue on your path, will you be happy at retirement? If your life continues in the same way it's been going... Will you actually be where you honestly want to be in life this same time next year? How can you be certain you'll be any closer to the financial freedom you want? Will you're dreams, plans, and desires actually come to be your reality?
  • 15.
    So why aBusiness anyway? If you continue on your path, where will you be in five to ten years? Their dreams or your dreams? What is your #1 fear for the future? It starts with attitude – “If you don’t like where you are in life, change it”
  • 16.
    Questions Ready totake on the responsibilities, wear all the hats? Willing to follow systems? Have a history of success in dealing with people? Can you afford it? (20-35% personal cash infusion) plus personal living expenses for first year Is it a product/service you can get behind 100%? Do you have family/spouse support?
  • 17.
    How To InvestigateIdentify your goals and vision Know yourself, strengths and weaknesses Identify good “fits” Initiate contact with franchisors Review initial packet Read and understand the Franchise Disclosure Document (FDD) Contact franchisees (validation calls) Visit franchisor (Discovery Day, or D-day) Make a decision MatchPoint 6 step process
  • 18.
    Financing Options ConventionalLoan Your local commercial bank. Looking for “Character and Credit” Tap into 401K There may be penalties You can rollover your 401K into an new plan that you control Home equity Your least expensive form of financing Partnerships & investors Partners share risk, duties $$ from family and friends S.B.A. Loan or Loan Guarantee
  • 19.
    It’s All AboutAttitude It’s not what you CAN DO that’s important. It’s what you WILL DO!
  • 20.
    OK. Why DoYou Need Me … To Help You Find A Franchise? 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. 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. 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.
  • 21.
    So What DoesMatchPoint Provide? MatchPoint offers a FREE SERVICE to people who are thinking about getting into a franchise business of their own. The company was founded with a single purpose: 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.” In fact, we even call the service we offer “the insider’s approach to finding a franchise.”
  • 22.
    The Insider’s ApproachHeat 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. 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.
  • 23.
    The Insider’s Approach“I always knew I wanted to be someone… I just didn’t know I needed to be more specific.” Lily Tomlin
  • 24.
    The Insider’s ApproachOur 6-Step Process Initial Overview PCQ Heat Map/Shapes Profile Consultation Brand Review Brand Coaching & Counseling
  • 25.
  • 26.
    Thank you! Formore information - Warren J. Rutherford Owner The Executive Suite 129 Airport Road Hyannis, MA 02601 [email_address] www.theexecutivesuite.com 508-778-7700

Editor's Notes

  • #27 Thank you. If you would like an opportunity to discuss this information with me further please let me know how I may assist you.