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Franchising Smart - Choosing the Right Franchise
Presented byPresented byWarren J. RutherfordWarren J. RutherfordThe Executive SuiteThe Executive Suite& Sr. Franchise Consultant & Sr. Franchise Consultant MatchPoint NetworksMatchPoint Networks
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Three RoadsYogi Berra said, “When you come to a fork
in the road, take it”Stay the course
Find a new J.O.B. (no surprises)
Serial Employment or Unemployment
Go it aloneStart an independent business (Failure rate very high)Buy an existing businessOdds are better, you get to see financialsWill you get properly trained? On-going support?
Partner with successJoin a franchise organizationEstablished, verifiable “Success Package” 90+% success rate among franchises
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Franchise Statistics: Did You Know? Franchising offers an excellent opportunity for you to
be in business for yourself but not by yourself A franchise opens every 8 minutes in the United
States Franchising employs over 21 million people There are 3,500 franchise concepts in 75 industries
(there is life after food) Franchising accounts for 1.53 trillion in sales and
50% of all retail sales That 1 out of 12 retail businesses is a franchise? That After 5 Years, 92% of Franchised Businesses Are
Still Operating?
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What are the benefits? Start from scratch as an Independent
01020304050607080
From Scratch
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Success rate after 5 years starting from scratch
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What are the benefits?Franchising
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Success rate after 5 years starting as a Franchise
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What are the benefits?Franchising vs. Independent (SBA statistics)
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Franchising
Still OpenClosed
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From Scratch
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Franchises - Still Open
From Scratch - Closed
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Types of Franchises Home Based – B2B or B2C but you
are typically “out and about” Service Based – B2B or B2C – “warm
leads” Location Based – simple retail and
sophisticated retail
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The Challenges Working Within the System
Entrepreneur vs. Frantrepreneur
System Conformity The Risk
Franchising is not Risk Free
90% Plus Success Rate for the Franchising Industry
Working with the Franchisor Buying a Franchise is Like
Getting Married Legally Binding
Relationship
False Expectations There is no Instant Success Tremendous Time and
Financial Commitment Be Realistic
Managing the Business Do you have Previous
Business Experience? Assess your abilities to run
a Business The Fees
Franchise Fee (one time fee)
Royalty (% of gross sales) Ad Fund (% varies)
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That’s All Great, BUT…Do YOU Have What It Takes To
Be In Business For Yourself, Not By Yourself?????
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A Test For You…Which of the following backgrounds produce successful franchise owners? Tradesmen (Painters, Carpenters, Construction workers,
Installers, Contractors, printers, etc.) Restaurateurs (Anyone with experience managing or owning
restaurants) Lifelong Corporate or Federal Employees (Administrators,
Managers, Directors, Project Managers, Service Providers, Marketers, Salesmen, etc.)
Entrepreneurs Professionals (Doctors, Lawyers, Consultants, CEO’s, CFO’s,
Accountants, Professors/Teachers, Chemists, etc.) Technicians (Computer tech, engineers, etc.) Stay-at-Home Moms
THEY ALL DO!
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Why Is This True? Because the basic franchise model provides many
of the tools needed to succeed – then you build your customer base and “work it.”
As a result, THOUSANDS of people, regardless of their prior backgrounds, have been able to enter franchising and succeed.
If you can find something you really love to do, a great deal of energy and drive will come with it. And properly focused, this passion – and your inherent skills and experiences - can drive your franchising success.
Is it time for you to consider a change?
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What DOES Franchising Provide? A Proven Operating System Operating Manuals Initial Training On-going Training/Support Marketing & Sales Training A Proven Marketing Plan On-going R & D Customer Support Defined Territories, Based Upon Target Demographics, etc. Technical and Administrative Support – Management Software,
Web Support, etc. A Brand Name, that grows and grows and grows in value Depending upon the franchise, you may also receive site selection
support, hiring and employee profiling support – or they may even contract with national and local accounts – and pass along leads to you.
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What Makes You Want to Change? POSITIVE VS. NEGATIVE MOTIVATION? INSPIRATION OR DESPERATION? Are You Running From Something Or
Toward Something? BUYING A BUSINESS SHOULD BE A
BURNING DESIRE “Know your outcome. Give your brain a
BIG enough reason WHY, AND YOU CAN ACCOMPLISH ANYTHING” - Anthony Robbins
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So why a Business anyway? If you continue on your path, will you be
happy at retirement? If your life continues in the same way it's
been going... Will you actually be where you honestly want
to be in life this same time next year? How can you be certain you'll be any closer to
the financial freedom you want? Will you're dreams, plans, and desires actually
come to be your reality?
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So why a Business anyway? If you continue on your path, where
will you be in five to ten years? Their dreams or your dreams? What is your #1 fear for the future? It starts with attitude – “If you don’t
like where you are in life, change it”
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Questions Ready to take on the responsibilities, wear all
the hats? Willing to follow systems? Have a history of success in dealing with
people? Can you afford it? (20-35% personal cash
infusion) plus personal living expenses for first year
Is it a product/service you can get behind 100%?
Do you have family/spouse support?
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How To Investigate Identify your goals and vision Know yourself, strengths and weaknesses Identify good “fits” Initiate contact with franchisors Review initial packet Read and understand the Franchise Disclosure
Document (FDD) Contact franchisees (validation calls) Visit franchisor (Discovery Day, or D-day) Make a decision MatchPoint 6 step process
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Financing Options Conventional Loan
Your local commercial bank. Looking for “Character and Credit”
Tap into 401K There may be penalties You can rollover your 401K into an new plan that you control
Home equity Your least expensive form of financing
Partnerships & investors Partners share risk, duties $$ from family and friends
S.B.A. Loan or Loan Guarantee
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It’s All About Attitude It’s not what you CAN DO that’s
important. It’s what you WILL DO!
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OK. Why Do You Need Me … To Help You Find A Franchise? Most people begin this process saying, “I want to buy a
Subway…” They fall in love with the product or service without really knowing whether it would make a GOOD INVESTMENT. There are MANY well-known franchises that are not necessarily good investments – so you have to know what you are doing.
There are over 3,500 companies that call themselves franchises – the evaluation process can be overwhelming unless you are focused – that is, you know what you want and know what to look for.
Most people “don’t know what they don’t know.” Just like buying a house for the first time, purchasing a franchise can be full of challenges – and it helps to have an advisor at your side.
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So What Does MatchPoint Provide? MatchPoint offers a FREE SERVICE to people who
are thinking about getting into a franchise business of their own.
The company was founded with a single purpose: to allow normal individuals like you and me the same
tools, techniques and coaching for finding a franchise that are usually restricted to franchising’s “inner circle.”
In fact, we even call the service we offer “the insider’s approach to finding a franchise.”
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The Insider’s Approach Heat Map ProfilingTM tool uses
sophisticated psychological profiling techniques to “match” your personality characteristics to those of the successful owners in our select portfolio of franchise partners.
This tool can help provide you some initial guidance toward the “right” franchise industry segment(s) for you, and also help you see “hidden potential” in yourself – particularly if you feel your career has been in a rut.
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The Insider’s Approach“I always knew I wanted to be someone… I just didn’t know I
needed to be more specific.” Lily Tomlin
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The Insider’s Approach Our 6-Step Process
Initial OverviewPCQHeat Map/Shapes ProfileConsultationBrand ReviewBrand Coaching & Counseling
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Questions – and Answers
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Thank you!For more information -
Warren J. RutherfordOwnerThe Executive Suite129 Airport RoadHyannis, MA 02601wjr@theexecutivesuite.comwww.theexecutivesuite.com508-778-7700