1. +
Girlfriends Guide to Franchising
Franchising 101 – The Basics
A webinar presented by Your Franchise is Waiting

2. +
Girlfriends Guide to Franchising
 What is franchising
 Why people go into business for themselves
 Benefits of franchising
 Why you’ll rock as a franchisor
 Why use a franchise consultant
 About Your Franchise is Waiting

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What is Franchising?

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Definition
Franchisor grants to licensee’s (Franchisees) the right to operate their
own business under the Franchisor’s trade mark (s), utilizing their
identified system and method of doing business for a particular period
of time within a particular territory (usually).

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Franchising – What is it really?
 Franchising is not a business or industry itself
 Franchising is a business strategy – just another business model
 Franchising is a growth strategy of the Franchisor to penetrate and
dominate a marketplace using OPM
 Efficient distribution system
 A method to leverage growth through resources of committed
stakeholders and form strategic partnerships

6. + Elements of a Franchise
 Brand – Recognizable (usually trademarked) service marks,
proprietary products or services, information, patents and/or
designs
 Operating System – Institutionalized excellent service delivered in a
way that can be done over and over again from unit to unit in a
consistent manner
 Support System – Support in areas such as financing, accounting,
training, marketing, technology, operational procedures and more
 Fees – Typically an up front franchise fee and ongoing royalties

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Why do people go into business for
themselves?

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Reasons People Choose Business Ownership
 Freedom
 Control
 Remove Threat of Job Loss
 Purpose/Passion
 Lifestyle
 Build an Asset
 Work with Family
 Leave a Legacy
 You Work Hard Anyway

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Benefits of Franchising

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Road Map vs No Road Map
The path has been set Lost and alone

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Why invest in a Franchise
 Reduced risk – proof of success is in place via other zee’s
 You don’t have to re-create the wheel
 Training & support from the franchisor
 Collaboration – franchisee’s share best and worst practices
 Systems continually adjusted, changed, & improved
 Training systems
 Sales & marketing strategies and systems
 Manuals & other documentation
 State of the art supported technology systems
 Development costs – now a shared resource
 Vending relationships and buying power

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Fees to Participate in a Franchise System
 Franchise Fee
The Franchise Fee is the cost of putting the franchisee into
business “with” the Franchisor
Entry fee to the point of the completion of the initial training
programs
Access to all of the franchisor’s systems
 Royalty Fee
The Franchisor’s share of the revenue generated by each franchisee
The oil that makes the engine run
 Advertising & Marketing Fee
Used to build brand presence to benefit all members

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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. The information you
need must be accessible – however usually on a schedule set by the
Franchisor
 Includes open access to all franchisees in the system
 The goal is to feel comfortable that you’ve made an informed decision
about becoming strategic partners

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Steps in the Discovery Process
 Introduction to Franchisor (Development Director or could be owner)
 Disclosure – FDD (Franchise Disclosure Document)
 Introduction to all aspects of the “secret sauce”. Marketing, hiring, real estate
selection, lead generation, the “how we do it” basics. Not the full trade secrets!
 Validation – most important step. Take your time, be thorough
 Franchise Attorney is hired to review document
 Discovery Day ( Meet the Team)
 Territory is Awarded (or not)
 Agreement is signed – Franchise Fee is paid

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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
 There will never be the perfect time but these stars should line up
 Finances
 Family
 Demographics of your territory
 You feel ready and excited

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Why You’ll Rock as a Franchise
Owner

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Women are made for business
 We value mentors
 We know how to multi-task
 We’re natural connectors
 We can share the credit
 We can nurture yet be firm
 We are compassionate leaders

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Why Use a Franchise Consultant

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Consultants Can Be Your Guide
 Access insider knowledge
 Reduce franchise research time
 Preparation for franchisor meeting and coaching for validation calls
 Better understanding of the terminology & process
 Resources and tools at our disposal (demographics, attorneys, lenders)
 Our services are offered at no charge to you
 You won’t get it cheaper by going direct – why not have an advocate?

20. +
Ask Yourself : If I do nothing, will my
situation be better (or worse) a year from
now?
Is Now Your Time?

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Words of Wisdom
"No one lives long enough to learn everything they
need to learn starting from scratch. To be
successful, we absolutely, positively have to find
people who have already paid the price to learn
the things we need to learn to achieve our goals."
Brian Tracy, Author and Keynote Speaker

22. Thank you!
Is now your time?
303-449-1050
jane@yourfranchiseiswaiting.com
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YourFranchiseisWaiting.com
Jane Stein, President