Choosing franchising, then choosing the right franchise business for you, can be the most difficult decision you will ever make. This presentation provides some great information that will help you decide if franchising is right for you and what type of business you could may consider.

1. Friday, March 6, 2015

2. What is a Franchise?
A franchise is the agreement or license between two legally
independent parties which gives:
1. a person or group of people (franchisee) the right to
market a product or service using the trademark or
trade name of another business (franchisor)
2. the franchisee the right to market a product or service
using the operating methods of the franchisor
3. the franchisee the obligation to pay the franchisor fees
for these rights
4. the franchisor the obligation to provide rights and
support to the franchisee

3. Advantages of Buying a Franchise
 Proven system
 High probability of success (after 5 years 95% vs 47%)
 Support and network
 Speed to market
 Staffing advantages
 Association with a well established brand, reputation and
product or service

4. Advantages of Buying a Franchise
 Assistance with site selection, lease negotiation, site
development, and builders
 Management support including training
 Established standard procedures, operating manuals and
stock control systems
 Assistance in securing finance
 Established financial systems and business metrics

5. 1 ▪ Is Business Ownership for Me?
 How much cash do I really have?
 What is my tolerance for risk?
 What is my expected ROI and when?
 Am I passionate about my product or service?
 Am I willing to take on numerous responsibilities?
 Do you have the experience and skills to manage and lead?

6. 2 ▪ What Do I Want to Do?

7. 3 ▪ What Industry Do I Want to Be In?
• Automotive
• Business Services
• Children’s Business
• Education
• Financial Services
• Food/Full-Service Restraints
• Food/Quick-Service
Restaurants
• Food/Retail Sales
• Home Improvements
• Hotel & Motels
• Maintenance
• Personal Care
• Pets
• Recreation
• Retail
• Services
• Technology

8. 4 ▪ What Franchise Do I Want to Own?
 Industry trends
 Marketing
 Franchise organization
 Royalties – base, advertising, software, etc
 Training and support
 Brand recognition
 Cash flow quadrant
 Cash requirement

9. 5 ▪ How Do I Raise Capital?
 Capital required
 Start-up, franchise fee, operating, lease, salaries
 Cash required
 Lenders typically require 30% to 60% cash
 Options for raising cash
 Sell shares
 Use personal savings (shareholder loan)
 Find partners
 Refinance assets
 Be creative

10. 6 ▪ How Do I Select a Location?
 Perform demand and area rate survey
 Complete due diligence
 Talk to other franchisees
 Determine size of grid or radius
 Identify if your franchise agreement is site specific
 Understand leasing – net, cam, TI, leasehold cost
 Assess location visibility and profitable
 Be patient

11. 7 ▪ What is My FA/DD?
 FA – Franchise Agreement
 DD – Disclosure Document (PE, NB, ON, MB, AB)
 Hire a franchise lawyer specialist
 Understand not much will change
 Determine number of lawsuits between franchisees and
the franchisor
 Identify the number of units are open and success rate

12. 8 ▪ Marketing - What Should I Look for?
 Social media strategy
 On-line reviews
 Mobile friendly web sites
 Search Engine Optimization (SEO)
 Easy to find online
 Web site quality
 Where do consumers look for their product?

13. 9 ▪ What Technology Might I Receive?
 Management controls
 Inventory
 Communication
 Business management
 Training
 Process
 Security and access control

14. 10 ▪ Do I Belong in Entrepreneurville?
 Passion
 Burning desire to win
 High risk tolerance
 Great leadership skills
 Cash flow quadrant
 Self-belief
 Greatest reward ever!

15. Wayne Cochrane
President/CEO, Willowbrae Academy
www.WillowbraeAcademy.com
www.SlideShare.net