Find Your Franchise

Find Your Future

 

Immigrants are 30 percent more likely to start a business than non-immigrants and make up nearly 17 percent of all new business owners in the United States.

2010 census  

A Recent Gallup Survey

• Only 11% of small business owners want to retire. 9 in 10 say they are happy with what they do.

• 79% of small business owners thought their savings would allow a comfortable lifestyle when they retire.

• Small business owners have the luxury of when to retire. 40% plan to keep working as long as their health allows.

• “In other words, business owners overwhelmingly like what they do” Gallup said.

Gallup Survey cont.The number of Americans planning to retire before age 65 has dropped from 50% in 1996 to 29% today, according to a recent Gallup survey of 1,020 adults. Meanwhile the proportion of people planning to work until after age 65 has increased steadily from 15% in 1996 to 34% this year.

Why start your own business?

• Control your own financial future• More control and freedom in

your life.• Build equity and profit for

yourself instead of the company.• Emotional fulfillment of building

your own dream.

Why Start your own Business(continued)

• Build an asset to sell or pass on to family members.

• Create an opportunity to work with family.

• Remove threat of job loss.• Ability to write off many personal

expenses.• Other?

“Job Security” an Oxymoron?

• The longer you own a successful business, the greater the security.

• The longer one is employed (these days) the greater your insecurity.

If It Were Possible…

• To reduce risk to an acceptable level

• Find a business that is affordable• To capitalize on your skill-set• And build a business of your own

Would you seek it out?

Franchising is a HUGE business

• A new franchise business opens every 8 minutes

• Franchise businesses receive 40% of the retail and service dollars in the U.S. annually.

• Generates 1 out of every 7 US private sector jobs

• Only 1 franchise bankruptcy to every 40 independent business bankruptcies.

What is Franchising?

A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration. Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees).

Entrepreneur magazine

What is Franchising Cont.

In addition to a well-known brand name, buying a franchise offers many other advantages that aren't available to the entrepreneur starting a business from scratch. Perhaps the most significant is that you get a proven system of operation and training in how to use it. New franchisees can avoid a lot of the mistakes startup entrepreneurs typically make because the franchisor has already perfected daily operations through trial and error.

Entrepreneur Magazine

Franchise Facts• A new franchise business opens every 8 minutes of every business day.• Approximately 1 out of every 12 businesses in the US is a franchise business.• In the US, only 8% of retail businesses are franchised. But that 8% makes up for over 40% of the retail sales in the US.• There is only 1 franchise bankruptcy to every 40 independent business bankruptcies in North America.• There are over 75 industries that use franchising to distribute goods and services to consumers. Franchising is responsible for 760,000 businesses, 18 million jobs, 14% of the private sector employment and over $500 billion in payroll.• 95% of franchises are still in business after 5 years. The likelihood a self-launched business will still be in business after 5 years is 47%. Buying a franchise more than doubles your chance to survive as a business owner.

Franchise Typesactive/passive

- Single Unit Franchise

- Multiple Units

- Area Developer

- Master Franchise

Benefits of Franchising

• Turn-key Business• Tested & Proven systems in place• Higher likelihood of success• Corporate image and Brand awareness• Easier to obtain financing• Training• Ongoing support• Marketing Exclusive territory (typically)

Recession Resilient Franchises

If you are concerned about starting a business during poor economic times, you can lower the risk by looking for

businesses with certain market characteristics:

• Growing markets driven by demographicsSenior Care, Residential Repairs & Cleaning

• Essential ServicesHair Care, Automotive, Damage Restoration

• Business that help other small businesses thriveBusiness Coaching, Expense Analysis,

Signage, Tech Support

Recession Resistant High Growth Trends

• Small Business Services• Personal & Convenience Services• Senior care• Healthy Lifestyle• Pets• Children services and Education

Cost of Franchise Businesses

Total Investment

Percent

Under $100K 52.5%

$100 to $250K

32.7%

$250 to $500K

9.2%

Over $500K 5.6%

Return on Investment

There is NO automatic correlation between the COST of the business and the PROFIT it can earn!!

Franchise Selection Process

• Select franchises to consider• Initial phone interview with

Franchisor• Application• Receive and read FDD (transparency)• Validation calls to Franchisees• Discovery Day• Review agreement with FRANCHISE

attorney• Decision YES or NO

30-45 days

What is in the FDD? FDD Sample Table of Contents

Item 1. The Franchisor and any Parents, Predecessors, and AffiliatesItem 2. Business ExperienceItem 3. LitigationItem 4. BankruptcyItem 5. Initial FeesItem 6. Other FeesItem 7. Estimated Initial InvestmentItem 8. Restrictions on Sources of Products and ServicesItem 9. Franchisee's ObligationsItem 10. FinancingItem 11. Franchisor's Assistance, Advertising, Computer Systems, and TrainingItem 12. TerritoryItem 13. TrademarksItem 14. Patents, Copyrights, and Proprietary InformationItem 15. Obligation to Participate in the Actual Operation of the Franchise BusinessItem 16. Restrictions on What the Franchisee May SellItem 17. Renewal, Termination, Transfer, and Dispute ResolutionItem 18. Public FiguresItem 19. Financial Performance RepresentationsItem 20. Outlets and Franchisee InformationItem 21. Financial StatementsItem 22. ContractsItem 23. Receipts

A qualified franchise attorney should always be consulted before signing any contract.

Franchise Categories Accounting/Tax Services Advertising/Direct Mail Auto & Truck Rentals Automotive Prod. & Svcs. Batteries-Retail & Comm. Beverages: Special Business Consultants Business/Mgmt

Consultants Campgrounds Check Cashing/Fin’l Svcs. Children’s Services Clothing and Shoes Computer/Electronics/

Internet Construction Mat’ls &Svcs. Consumer Buying Svcs Convenience Stores Cosmetics Dating Services Drug Stores Educational Prod & Svcs. Employment Svcs.

Fitness Florist Shops Food/Restaurants Golf Eqt, Prod & Svcs 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 Payroll Services

Packaging/Ship/Mail Svcs.

Painting Services Paralegal Services Pest Control Services Pet Sales/Supplies &

Svcs. Photography Printing/Copying Svcs. Real Estate Services Recreations Svcs. Rental Eqt & Supplies Retail Stores Security Systems Senior Care Sign Products &

Services Tanning Centers Telecommunication

Svcs Transportation

Services Travel Agents Vitamin & Mineral

Stores Weight Control

Franchise Capitalization Sources

Your Financial Preparation

• Determine your personal monthly overhead

• Understand you will need to set aside personal living expenses to sustain yourself during ramp-up

• Calculate your total start up costs including working capital to carry your business to break even

• DO NOT borrow too much!

How Can A Franchise Consultant Help You?

• No Cost• Education & Coaching•Hundreds of pre-screened franchises.• Saves time and money.• Knows the requirements to qualify for a franchise •Goal defining. What do you want to accomplish and what franchise can help you get there?• Thinking outside the box when considering what type of franchise you should consider.• Understanding your financing options. How will you fund your new venture?• Avoiding “hype,” “short term trends,” and franchises that don’t make sense for you.• Gets you to the front of the line with the appropriate contact at the franchise of your choice.• Acts as a buffer between you and the franchisor until you are ready to make a decision.• Staying on track and following a process.

Thank you!

Would you like to know more?

Anita Best404-218-7808

anita@findyourfranchise.comwww.findyourfranchise.com

Employment Facts• The unemployment rate reached 9.8% in November 2010. The number of unemployed persons was 15.1 million. The number of long-term unemployed (those jobless for 27 weeks and over) was at 6.3 million and accounted for 41.9% of the unemployed.• The unemployed in the US spends 40 minutes a day looking for work and 3 hours and 20 minutes a day watching TV.• The average job search in America now lasts 33 weeks. Thirty-three weeks – more than 8 months – is the longest it has taken Americans to find work since 1948.• More jobs were lost in 2008 than were created in the last 5 years. In 2009, more jobs were lost than existed in The Great Depression.• In 2008, 67.7% of the labor force was between the ages of 25-54, and only 18.1% of the labor force population was over the age of 55.• The Bureau of Labor Statistics conducted a 20-year longitudinal study that focused on the number of jobs held and job duration among baby boomers. Among jobs started, 33% ended in less than a year, and 68% ended in fewer than 5 years. Individualsheld an average of 11 jobs from age 18 to 44, meaning they changed jobs, on average, every 2.3 years.

What are your options?

• Mobile Units

• Impact people

• Happy product

• Service or product

• Location

• Sales Focus

• Marketing Focus

• Portable Business

• Mandated Service

Be your own boss Home-Based Office Environment Work outdoors Flexible hours No employees/employees Sub-Contractors Income Consulting Passive Ownership Industry Scalable Business