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Buying a franchise is a lower risk option to start your own business. Let us help you understand why and to help you make the best choice.

TRANSCRIPT

  • 1. Franchising Is It a Strategy That Fits You?

2. Is Franchising Right for You?

  • 70% of all people have thought seriously about owning their own business.
  • Is it the right venture for you?

3. Common Reasons for Business Ownership

    • Control your own financial freedom
    • Build an asset for future sale
    • Create more control and freedom for your time
    • Fair reward - make money for yourself instead of the company
    • Emotional fulfillment of building your own dream

4. Common Reasons for Business Ownership

    • Satisfaction and happiness in day-to-day activities
    • Build an asset to pass on to family members
    • Create an opportunity to work with family
    • Remove threat of job loss
    • Replace lost income stream
    • Other?

5. What is a Frantrepreneur

  • Frantrepreneur
  • (fran*tre*pre*neur)n.
  • One possessing the desire to be a business
  • owner -- without the desire to recreate the
  • wheel -- by following a proven system for the
  • benefit of personal and professional goals.

6. The Frantrepreneur Mentality

  • Im in businessformyself , but notbymyself .
  • I have the opportunity to learn from the success and failure of others.
  • I want a bottled process for success that I can use in developing my own successful business.
  • Why would I work for someone else when I can work for myself and reap the rewards of my efforts?"

7. What is a Franchise?

  • Franchising is a method of distributing goods or services to consumers. The franchise system owns the right to the trademark of the business. The franchisee purchases the right to use the trademark and operating system.

8. Franchise Statistics

  • Franchise businesses account for about 50% of all retail sales in the United States.
  • 1 out of every 12 business is a franchised business.
  • A new franchised business is opened every 8 minutes of every business day.
  • Franchise businesses employ more than 14 million Americans.
  • There are an estimated 1,500 franchise companies operating in the U.S. doing business through more than 316,000 retail outlets.
  • More than 75 industries use franchising to distribute goods and services to consumers.

9. Franchise Opportunities

  • Most people associate the word franchise with fast food restaurants. But, there are many more types of franchise businesses, including everything from advertising to automobile repair, printing services to party supplies and many more.

10. Categories of Franchises

  • To name just a few options
      • Accounting/tax services* Hotels, Campgrounds
      • Transportation* Computer/Electronics
      • Clothing/Shoes* Cosmetics
      • Fitness* Florists
      • Foods* Packaging/Shipping
      • Fitness
  • Call us for a complete list of options!

11. Well-Known Franchises

  • McDonalds* Curves (fitness centers)
  • Alphagraphics* Block Buster
  • Dale Carnegie* Century 21 Real Estate
  • Radio Shack * Molly Maid
  • Great Clips * Subway
  • Big O Tires * Baskin Robbins

12. Franchise Success

  • Franchises have a 90%+ success rate.
  • Most people cant even predict that they can keep their jobs with a 90% certainty.

13. Franchising Whats It All About?

  • Franchising is not a business or industry itself
  • Franchising is a business strategy
  • Franchising is a strategy of the Franchisor designed to penetrate and dominate a marketplace
  • Efficient distribution system
  • Hamburger meat, muffler parts, coffee grounds
  • Knowledge, training, software, databases

14. Franchising Whats It All About?

  • Leverage growth through resources of stakeholders
    • Knowledge, experience, effort, purchasing power, financial
  • Similar goals & unified thinking among participants
  • Strategic-Partnership

15. Elements of a Franchise

  • Brand - the Franchise name associated with the products or services delivered in a memorable and satisfying experience
  • Operating System institutionalizes an excellent service delivered in a memorable experience so it can be done over and over again from unit to unit in a consistent manner

16. Elements of a Franchise

  • Support System helps the Franchisee get better and better at delivering the service in a memorable experience helps a Franchisee improve their performance
  • Franchisee the individual motivations or reasons for being a part of a vibrant system

17. Value of Franchise Systems

  • Reduced Risk Proof of success is in place
  • Operating System Success Formula has been established for you
  • You dont have to re-create the wheel or many wheels
  • Other Franchisees with their feet on the street emulate the best
    • Advice & support from the Franchisor position of experience

18. Value of Franchise Systemscont

  • Collaboration Share best and worst practices with similar people
  • Systems continually adjusted, changed, & improved
  • Training systems
  • Sales & marketing strategies and systems
  • Manuals & other documentation

19. Value of Franchise Systems cont

  • Letters, contracts, agreements, documents all in place
  • Development costs shared resources
  • Purchasing power
  • Many others

20. Entry to a Franchise System

  • Franchise Fee
    • The franchise fee is the cost of putting the Franchisee into the business of the Franchisor,not as a partner, but as a participant.
    • Entry fee to the point of the completion of the initial training programs
    • Access to all of the Franchisors systems

21. Entry to a Franchise System cont

  • Royalty Fee
    • The Franchisors share of the customers money generated by each Franchisee using the Franchisors systems
    • The oil that makes the engine run

22. Entry to a Franchise System cont

  • Advertising & Marketing Fee
    • Used to build Brand presence to benefit all members
    • Advertising campaigns, marketing campaigns,co-op programs, search engine optimization, creative artwork, collateral development costs, etc.

23. 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

24. Making an Informed Decision cont

  • Should never feel pressure to move too quickly yet the information you need must be accessible usually on a schedule set out by the Franchisor
  • Includes open access to all Franchisees in the system
  • The goal is to feel comfortable to make an informed decision about becoming Strategic-Partners

25. Franchisor Disclosure

  • Exchange information on a fair and equitable basis
  • Formal Disclosure Documents
  • No decisions documents for 14 days
  • Cooling off period final documents for 7 days
  • Full disclosure of all Franchisees
  • Earnings Claims most dont, some do
  • Financial performance data will be obtained from Franchisees

26. Important Consideration Exit Strategy

  • How will the business be valued at time of exit?
  • Do the customers/clients carry an ongoing future cash flow value?
  • How will the value be affected by changing demographic conditions?
  • How will the value be affected by changing competitive environment?
  • Franchisor should be willing to discuss

27. Questions to Ask Yourself

  • How much capital do you have to invest?
  • How much liquid assets do you have?
  • Do you require a specific level of annual income?
  • Are you interested in pursuing a particular field?
  • Are you interested