Transcription
Franchising 101
Topics for Discussion Why Franchising ? Franchise Industry overview How franchising can benefit thecommunity. How Franchisors pick communities. Is your community franchise friendly?
Jania BaileyCEO Over 30 years experiencein the franchise andbanking industries.
Who is FranNet? 29 year old International FranchiseConsulting Firm Over 100 locally-based consultantsacross North America and Europe National partnerships with SBA,ASBDC, SCORE and WBC. Onlyfranchise consulting firm with thosepartnerships We match people who want to be inbusiness with a franchise that meetstheir needs. NO COST!
Business Ownership OptionsBuild your own businessBuy an Existing BusinessBuy a Franchise
Buying a FranchiseAdvantages DisadvantagesName recognition Structured operating systemLicensed trademarkin some franchises Territory restrictionsProven business system to Can only sell their productsstart and operate Little initial cash flowTraining and support (initially Franchise Fee and Royaltiesand ongoing) Marketing expertise /Purchasing power Lower failure rate Financing options Disclosure Franchise family
What is Franchising?The creation of a distributionchannel to build brand identityand attain marketdominance tomers
Franchise is A license to use: Name and trademarks Products Business SystemsIn exchange for: Initial franchise fee Ongoing royalties
Franchising Myth :“Only fast food and retail”
Franchising Fact :FACT: Over 3,100 differentfranchise companies In more than 80industries With over 900,000operating unitsPopularCategories EducationRetailPet CareCleaningReal EstateSenior CareHomeRepair IT Services
Break Down of IndustrySectors: Most Popular:– Quick Service Restaurants– Lodging– Business Related Least Popular– Video– Security-related– Party-related goods/services
Franchising Myth :“Franchises are expensive”
Franchising Fact :FACT:Total Investment RangeUnder 50,000 50,001 to 100,000 100,001 to 250,000 250,001 to 500,000Over 500,000Source December 2010 FranDataPercentage13%17%28%23%18%
Franchising Fact :FACT:There is no automaticcorrelation between thecost of the franchise andthe potential return.
Franchising Fact :FACT:Service businesses requirefar less capital investmentsand frequently yield higherreturns.
Franchising Myth :“Industry experience isrequired”
Franchising Fact :FACT: Franchisors want a person that can use their system. They want someone who will focus on being an owner– business and management skills– people and communication skills Proven Process– Franchisor trains on how to use their system
Franchise Facts: 900,000 franchised businesses provide 21million jobs Over 2.3 Trillion Dollar Business Provide 660.9 Billion of annual payrolls More than 3,100 franchise concepts in over90 different categories.
Franchises Are NotAll the Same Many Units vs. Fewer Units Older, well established vs. Newer Structured vs. Flexible Systems Expensive vs. InexpensiveThere is no automatic correlation betweenthe cost of the franchise and the potential return.
Why Franchising WorksProven, systematic approach to startingand staying in business– Experience– Simplicity– Initial Training & Ongoing Support– Name Recognition– Sales, Marketing & OperationalSystems– Culture of Teamwork
Personal Business ModelTypes of CustomersEmployeesService or ProductBudgetBusinessEnvironmentFull or Part-timeHoursNumber of UnitsBusinessPreferencesNew or EstablishedIndustryRoom for GrowthOther Items?
How Franchisors SelectFranchisees GOOD Franchisors are VERY selectiveabout bringing on Franchisees.– They have to live with the Franchisee forthe life of the contract– usually 10 years ormore.– They match the skill set, budget, incomeneeds, etc. to the candidate.– It is a mutual approval process
Get in Touch!Connect .com/company/frannetTwitter.com/frannet team
Get in Touch!www.frannet.com
Franchising Fact : FACT: Franchisors want a person that can use their system. They want someone who will focus on being an owner –business and management skills –people and communication skills Pro
