News letter topics: 1.) Why should I use a Franchise Consultant?
2.) Using a Franchise Consultant.
3.) Franchising "101"
4.) Removing obstacles to Business Ownership.
5.) Finding a Recession Resistant Business.
6.) Master Franchises.
7.) Home Based Franchises.
8.) Gauging Financial Performance.
9.) Qualifying for a Franchise.
10.) Brand name versus No-Name.
11.) Finding the best Business Partner.
12.) Financing a Franchises.
13.) Securing your Business Loan.
Why Should I Utilize a Franchise Consultant?
There are many advantages to getting help from a professional who knows the inside workings of an industry or issue. Just having someone who can help interpret the jargon associated with a topic that is new to you can be a tremendous help. Most people wouldn’t go to court without a lawyer or purchase a home without the help of a realtor. A franchise consultant can help you identify businesses that are closely aligned with your talents, interests and goals. Yes, you could spend months researching different options on your own, but you could be very diligent in your efforts and still miss the one opportunity that is perfect for you.
The Internet is a valuable tool for research, but it is limited. If you do not know where to look or if you rely on search engines to produce the results, you will only find the companies that have paid to be listed high in the search rankings. High visibility on the Internet does not correspond to the relative value of a business opportunity. Due to the immense amount of data that is available on the Internet, it tends to create more questions than answers and it can be a frustrating experience.
There are over 3,000 registered franchises and more than twice as many “Business Opportunities” or “Biz Ops” available in the
One of the biggest challenges for franchise companies is finding entrepreneurs who will be a good fit for their particular business model. As you can imagine, franchisers get thousands of requests for their information packets, but most of these come from people who are not qualified or motivated to actually become a part of their organization. These companies generally cannot support the amount of staff necessary to do an effective job of bringing in new franchisees. This is why the value of a consultant-referred candidate is so significant. The company is being introduced to a pre-screened individual who meets the basic requirements, is informed about the opportunity and is more than just casually interested. This saves the franchiser a great deal of time and money, so they pay a fee to the consultant if the candidate buys a franchise. This creates a winning scenario for all parties involved.
In the final analysis, the choice and the responsibility for researching the opportunity are yours, but as you contemplate such a huge decision, you should not leave any stones unturned. Getting help from a competent consultant is one of the best resources you can employ and since the seller pays the fee, the service is free to you. So, the question becomes: Why not use a consultant?
Using a Franchise Consultant Life is full of choices. Easy vs. hard. Simple vs. complicated. Free vs. expensive. With options like these, the choices would seem quite evident, and while life seldom involves such clear cut choices, choosing a franchise business is – or should be – a bit easier. To illustrate, here’s a real life story of an entrepreneur who made many wrong choices… “I was long overdue to leave corporate America and began the process of researching business opportunities. I surfed the internet and contacted about twelve franchises, requesting information from each. I didn’t hear back from about half of them and wrote them off because they were obviously unresponsive. I continued talking with the others, doing my own research, making all the calls and handling the communications myself. It took a long time –about 6 months --but eventually I settled on a franchise I felt suited my skills and interests. I believe I made the right choice. It was pretty time-consuming – I figure about 300 hours total – but less expensive than using a franchise consultant.” What’s wrong with this picture? Well, let’s start with false assumptions. First, this person assumed that the franchises he didn’t hear back from were unresponsive and thus not good to do business with. More likely, those companies were very good to do business with and thus inundated with more requests than they could possibly handle. And he might have been a good candidate, but he was unable to raise the visibility of his interest from the rest of the masses. Secondly, he also assumed that enlisting the help of a franchise consultant would be too expensive. In reality, such assistance is (or should be) available at no cost at all. Let’s start by taking a closer look at these two factors to investigate the value of franchise consultants. THE PRIMARY VALUE Estimates on available franchises vary, but there are literally thousands, and new ones enter the market every day. Entrepreneurs are faced with a dizzying array of opportunities – even if they have a pretty good idea of what kind of business they are interested in. Likewise, the confusion for the franchises themselves is also high. Popular ones receive hundreds or more requests for information every week – far too many to process. They don’t want to be unresponsive, but they are ill-prepared to field every request. Understandibly, many franchises have out-sourced the pre-qualification process to consultants to ensure they are working only with the best-qualified and most interested candidates. Thus, one of the most valuable services a franchise consultant provides is to raise your visibility and credibility. A franchise consultant understands what types of candidates franchises are looking for and is duty-bound to provide the best ones. Allowing a consultant to introduce you to franchises ensures that the franchises view you as pre-qualified. In essence, you are moved to the front of the queue. And what about the cost misconception? Bottom line: franchise consultants are paid by the companies they represent. Thus, there is never a cost for their consulting, research and recommendations. As well, using a franchise consultant should never increase the cost of investing in a franchise. While other broker models have a built-in cost – such as with real estate, mortgages and traditional business brokers – using a franchise consultant is truly a zero-cost option. You will pay the same as if you did all the research and handled all the communications yourself. ADDITIONAL BENEFITS So you have increased credibility at no cost, but it doesn’t end there. Here are some of the other services you can and should expect from a franchise consultant. He or she should: ¨ Take the time to understand your background, skills, interests and objectives ¨ Understand your financial limits and risk tolerance ¨ ¨ Offer a wide variety of franchises to provide you the most options ¨ Take an unbiased approach to helping you achieve your goals, never trying to “fit a square peg in a round hole” ¨ Be able to provide valuable insight on franchises that you might have not found on your own ¨ Significantly reduce your time, trouble and frustration ¨ Help present your qualifications to franchises (through a single process vs. a separate one for each) and stay involved to assist in the dialogues ¨ Guide you on proper ways to conduct due diligence on any franchise opportunity that you consider ¨ Be able to refer you to other professionals you may need at certain points in the process, such as a franchise attorneys, CPAs, lenders, commercial realtors and financial planners. WHAT YOU CAN DO As with any resource, being an educated consumer will ensure that you get optimal benefits from using a franchise consultant. Thus, it’s important to understand that the consultant actually serves 2 masters: you and the franchise – and he can only be successful if he does a good job for both. Here’s how you can optimize the value: ¨ DISCLOSE His commitment to the franchise(s) is to present only the best, most qualified and interested franchisee candidates. These companies have disclosed a significant amount of information because they know that, by doing so, it enables the consultant to do the best possible job for them. Likewise, the more information you can provide the consultant, the better the chances that he will do the best possible job to represent you as well. This should include all details concerning your current business, employment, financial status, family commitments, time constraints and other factors. The franchise consultant will treat all your information with the strictest confidence and will only provide it to franchises in which you have expressed an interest. ¨ SHARE THE OBJECTIVE ¨ KEEP AN OPEN MIND One of the most valuable services a franchise consultant can provide is to make you aware of opportunities you may never have thought of or found on your own. The consultant should provide one or more concepts that meet your original goals, but he may also present horizon-expanding opportunities that offer both significant success through new and exciting avenues. Thus, even if you begin with a very specific concept, keep an open mind. ¨ REMEMBER WHAT THE “C” STANDS FOR The “C” stands for consultant, not counselor. A franchise consultant can do many things for you, but convincing you that running your own business is the right thing to do is not one of them. He can and should help you understand that franchising offers the greatest chance for your success through the least amount of risk (based on actual statistics), but only you alone can determine if the time is right. He can’t and shouldn’t try to convince you of that or accelerate the process beyond your comfort level. Decide that you are ready to own a business – even if you have no idea what that business should be – and then contact a consultant. In conclusion, if you are truly serious about owning your own business – or expanding your current business portfolio – there is really no reason not to use a franchise consultant. Proceed with confidence that the consultant will do everything possible to meet your objectives – with complete confidentiality – all at no cost to you. Franchise Consultants, Inc. provides no-cost assistance to entrepreneurs nationwide, helping them identify franchise business opportunities that match their interests, backgrounds and financial means. We offer hundreds of business opportunities in a multitude of categories. We are an affiliate of the world’s largest franchise consulting network with more than 25 years experience helping entrepreneurs like you find and own their own businesses. contact Raymond at 302-464-2949 or email at info@alliancefranchises.comOptimize Your Chances for Business Success
Franchising "101"
Alliance Franchises
This presentation is intended solely to inform and educate entrepreneurs about franchising -- the process, benefits, drawbacks and available resources.
Only the individual entrepreneur can determine if franchising is right for him.
What is Franchising?
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.
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.
Categories of Franchises
¨ Accounting/Tax Services ¨ Advertising/Direct Mail ¨ Auto & Truck Rentals ¨ Automotive Products/Services ¨ Batteries-Retail & Comm. ¨ Beverages: Special ¨ Business Brokers ¨ Business/Mgmt Consultants ¨ Campgrounds ¨ Check Cashing/Financial Services ¨ Children’s Services ¨ Clothing and Shoes ¨ Computer/Electronics/Internet ¨ Construction Materials ¨ Consumer Buying Services ¨ Convenience Stores ¨ Cosmetics ¨ Dating Services ¨ Drug Stores ¨ Educational Products/Services ¨ Employment Services ¨ Fitness ¨ Florist Shops ¨ Food/Restaurants ¨ Golf Products/Services ¨ Greeting Cards ¨ Hair Salons & Services ¨ Health Aids & Services ¨ Home Furnishings ¨ Home Inspection ¨ Hotels and Motels ¨ Insurance ¨ Janitorial Services ¨ Jewelry ¨ Laundry & Dry Cleaning ¨ Lawn/Garden/Agriculture ¨ Maid & Personal Services ¨ Maintenance ¨ Marine Services ¨ Optical Aids & Services ¨ Packaging/Ship/Mail ¨ Painting Services ¨ Paralegal Services ¨ Payroll Services ¨ ¨ Pet Sales/Supplies ¨ Photography ¨ Printing/Copying ¨ Real Estate Services ¨ Recreational Services ¨ Rental Equipment & Supplies ¨ Retail Stores ¨ Security Systems ¨ Senior Care ¨ Sign Products & Services ¨ Tanning Centers ¨ Telecommunications ¨ Transportation Services ¨ Travel Agents ¨ Vitamin & Mineral Stores ¨ Weight Control Well-Known Franchise Names
¨ McDonald’s ¨ Subway ¨ Curves ¨ Alphagraphics ¨ 7-Eleven, Inc. ¨ ¨ Baskin Robbins ¨ Big O Tires ¨ Blockbuster ¨ Century 21 Real Estate ¨ Courtyard by Marriott ¨ Dairy Queen ¨ Dale Carnegie ¨ Dunkin’ Donuts ¨ ¨ Fuddruckers ¨ Gold’s Gym ¨ Great Clip’s ¨ H& R Block ¨ IHOP – International House of Pancakes ¨ Jenny Craig ¨ Kwik Copy ¨ MAACO ¨ Molly Maid ¨ New Horizon’s Computer Learning ¨ Once Upon A Child ¨ Papa John’s Pizza ¨ Radio Shack ¨ ¨ Taco ¨ Wild Bird Centers of
What is a Franchisee?
“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.
The Frantrepreneur Mentality
“I’m in business for myself, but not by myself”.
“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?"
"Why would I spend years and the investment required to establish a successful brand when I could buy a franchise which provides immediate access to a successful business system and a brand name which others already have made successful?"
Franchise Options
TYPE:
¨ Traditional retail
¨ Mobile products/services
¨ Work from home
OWNERSHIP:
¨ Hands-on
¨ Passive
¨ Part-time/full-time
OWNERSHIP:
¨ Single unit franchise
¨ Multiple units
¨ Master franchiser
¨ Area developer
PRODUCT/SERVICE:
¨ 75 categories - an endless array of possibilities
¨ Something to match anyone’s background, skills and interests
Franchise Statistics
¨ Franchise businesses account for about 50% of all retail sales in the
¨ 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 6,500 franchise companies operating in the
¨ More than 75 industries use franchising to distribute goods and services to consumers.
¨ A 1999 study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of them were still open for business.
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