girlfriends guide webinar - franchising 101 (2)
TRANSCRIPT
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Girlfriends Guide to FranchisingFranchising 101 – The
BasicsA webinar presented by Your Franchise is Waiting
+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
+What is Franchising?
+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).
+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
+ 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
+Why do people go into business for themselves?
+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
+Benefits of Franchising
+Road Map vs No Road Map
The path has been set Lost and alone
+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
+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
+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
+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
+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
+ Why You’ll Rock as a Franchise Owner
+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
+Why Use a Franchise Consultant
+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?
+Ask Yourself : If I do nothing, will my situation be better (or worse) a year from now?
Is Now Your Time?
+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
Thank you!Is now your time?
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YourFranchiseisWaiting.comJane Stein, President