6 Tips When Buying A Franchise

6 Tips When Buying A Franchise…
Make a list of questions and spend the day to meet the team and get answers as well as a feel for the culture of the organization. Find out how deep the franchisor’s organization is and, please make sure you feel comfortable that the franchisor has enough experienced staff to service the franchisees.

By Gary Occhiogrosso
Founder and Managing Partner of Franchise Growth Solutions
Photo by rawpixel on Unsplash

Starting a business can be a life-altering event both good and sometimes not so good. One of the ways people reduce their risk is to purchase an established brand with a proven business model – a franchise.

Franchising has proved over and over again to give a new business owner the highest probability of success. If you follow the system, choose an experienced franchisor, work diligently, are appropriately funded and understand what you’re getting into then operating a franchise may be a perfect business model for you.

Selecting a franchise and purchasing a franchise combines gut reaction with solid research. Although there are many steps to buying a franchise here are my Top 6 Tips that will keep you moving forward in the process. I recommend never skipping or overlooking any of them.

Tip #1 – Begin With Some Soul Searching
Make a written list of what you believe you’re looking for in a business opportunity. However, for this exercise, you cannot put the words “make money” on your written list. The reason for that is simple. I want you to look inward at your dreams, background, hobbies, likes, dislikes, skills, social and community positions and all the elements that a business would need to deliver to you, despite the money. I know many franchisees and entrepreneurs that dread getting up every day to work their business even though are making all sorts of money. Franchisees that are great at selling or corporate engagement should seek a franchise that puts them in front of customers in a corporate environment, perhaps in the advertising business or financial business. Entrepreneurs that like to craft things or work outside or work with their hands should never seek out opportunities that land them behind a desk or stuck in a shop 12 hours a day. Although ultimately in time you will not be doing the “work of business” keep in mind that in the startup phase you may need to. Moreover, if you don’t like the work or have neither the time, desire or inclination to develop new skills you may never get to the next level in developing your business. If you can’t “see yourself” doing a particular type of work, then walk away, no matter how much money you think you’ll make. Look in the mirror and be honest when you sit down to write your list.

Tip #2 – How Much Available Capital Do I have?
Numerous business reports cite the number one reason a small business fails is that proper thought and consideration wasn’t given to the appropriate capital required to open and sustain the start-up of a small business. A lack of adequate money can destroy you before you even begin. It is crucial that you understand the numbers. Before you start your quest for a franchise, you should access your available liquid capital, your borrowing ability and the net worth necessary to collateralize a business loan. Also, there are various ways to finance your new business. That includes your savings, investments or loans from friends and family, bank loans, SBA loans and using the funds in your 401K to finance the new venture. Once you know the number, you can go shopping, or you may decide you don’t have enough money now and need to create a plan to accumulate the appropriate amount of start-up capital. Your accountant may be able to help you access your investment ability. Keep in mind many accountants (and lawyers) are not entrepreneurial minded or risk takers. Some will attempt to “protect you” by trying to convince you not to go into business. Remember you’re assessing your investing capability not looking for permission. That said, knowing how much you can invest will save you and the franchisor time. In addition, it’ll place you in a better position to succeed.

Tip #3 – Meet The “Parents”
In this case, the Franchisor. Once you’ve selected the type of industry you’d like to be in, its’ now time to search for a company that meets the criteria on the list we discussed earlier in this article. There are many ways to seek out opportunities, Franchise Trade Shows, Websites, Franchise Business Brokers and others. I’ll cover that in a subsequent article. Once you reach out to a franchisor, a franchise sales representative will most likely contact you. At this point be prepared to answer some questions over the phone. You may also be asked to fill out an application before going any further in the process. Many reputable franchisors will not engage in any serious conversation with a candidate without an application. My experience has been that franchisors willing to forgo written applications or skip asking qualifying questions at the start of the process may be desperate to “sell” a franchise. That should be a red flag for you. Beware, because it may be a sign the franchisor is undercapitalized and/or more interested in selling franchises and collecting licensing fees instead of supporting the franchisees long term by focusing on royalties from successful franchised locations.

Tip #4 – Take A Good Hard Look At All The Documentation
Once you fill out the application, the franchisor will most likely interview you over the phone or in person and then is required to issue you a Franchise Disclosure Document (FDD). Depending on the State where you live, you must have the FDD between 10 and 14 days before you can enter into any agreement or hand over any money to the franchisor. You will be asked to sign a receipt that you received the FDD and indicate the date you received it. This disclosure document has all the required information that the Federal Trade Commission (FTC) and various States require the franchisor to tell you. Please read it and reread it. Have a franchise attorney review the document and offer legal counsel regarding the franchise agreement. Then follow up with the franchisor. I would recommend that if you’re interested in moving forward, it’s now time to meet the franchisor in person (if you haven’t already) by scheduling a Discovery Day. Make a list of questions and spend the day to meet the team and get answers as well as a feel for the culture of the organization. Find out how deep the franchisor’s organization is and, please make sure you feel comfortable that the franchisor has enough experienced staff to service the franchisees.

Tip #5 – Speak With The Franchisees
Your best source of information is going to come from the franchisors customers, that means the franchisees. Call and visit as many franchisees as possible. Since many Franchisors don’t disclose Average Unit Sales and Operating Expenses in their FDD, they can not discuss it with you. Franchisors can only make claims and address financial issues published in their FDD. Be wary of the sales rep that starts telling you how much money the franchisees are making and how much money you can make. This practice of making “earning claims” not documented in the FDD is not only a violation of franchise regulation but also another red flag. However franchisees are not bound by franchise regulation and if they choose, are free to answer any question as long as they do not disclose proprietary information belonging to the franchisor, such as recipes or processes. When visiting the franchisees, build a report, let them know you’re close to making a decision and carefully phrase your questions so that they are not intrusive. I always ask about support and if they had the opportunity to “do it all over again” would they? Keep in mind there will always be a few disgruntled or struggling franchisees. Without knowing all the facts, it’s tough to condemn the system or franchisor. That said, if the majority of franchisees regret their decision or feel that the franchisor is not supportive, then you need to make further inquiries with the franchisor before signing the franchise agreement.

Tip #6 – Ready, Set, Go
Not so fast. Before the franchisor prepares a franchise agreement is it essential to discuss the best way to structure your new company. Many attornies will recommend that you not sign the franchise agreement in your name but instead set up a separate business entity such as a Limited Liability Compay (LLC) or an S-Corp. Seek competent legal advice from a franchise attorney before you sign a franchise agreement or set up a new company.

Franchise ownership can provide you and your family a lifestyle that can not be achieved by working a job for a company. Building a business can be rewarding, exciting and stressful all at the same time. As an entrepreneur, I believe business ownership is the best form of work for many people.

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About the Author
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with its founders. He is the former President of TRUFOODS, LLC a multi-brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition, Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales, and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast over AM970 in New York City and the founder of FranchiseMoneyMaker.com

Six Ways to Finance a Restaurant Franchise

Six Ways to Finance a Restaurant Food Franchise…

Before seeking financing of any kind, make sure you’ve done your own due diligence. Prior to beginning your search, it’s important to know your own net worth, your credit rating, and to have a comprehensive business plan that includes pro forma documents, operations details and market comparison analysis.

Six Ways to Finance a Restaurant Food Franchise

If you are considering investing in a franchise opportunity, the very first question that may come to mind is whether you qualify financially. Most entrepreneurs, restaurant aficionados, or business executives exploring opportunities for a restaurant food franchise will seek outside sources of financing. The golden rule is to expect to contribute 15% to 30% of your own money to start with, and then go from there.

If 30% seems daunting, there’s good news. Often a franchise business opportunity is looked upon by financial institutions as less of a risk, compared to independent business start-ups. This can be further reinforced by the history and recognition of the brand name, the number of units in operation, and even the support provided to the franchisee by the franchisor.

Before seeking financing of any kind, make sure you’ve done your own due diligence. Prior to beginning your search, it’s important to know your own net worth, your credit rating, and to have a comprehensive business plan that includes pro forma documents, operations details and market comparison analysis.

Franchise financing can be complex, but it doesn’t have to feel impossible. Consider these six ways to finance a restaurant food franchise like Taboonette.

1. Friends and family, as well as experienced business owners,d business owners turn inwardly toward friends and relatives to help finance their franchise or start-up business. With this kind of financing, individuals and families get to create their own terms for repayment and enjoy the collaborative support from those closest to them.

2.SBA loans.
The Small Business Administration is a government agency that helps entrepreneurs plan, launch, manage and grow their businesses.1 They work with financial institutions to provide SBA-secured loans. A lender may be more likely to approve financing for individuals backed by an SBA loan because it is 90% secured. This means if the loan goes into default, the SBA guarantees repayment of 90% of the loan to the lending institution.

3.Bank and private loans.
Since the 2008 recession, it has been more difficult to secure bank loans or loans from venture capitalists or angel investors. A bank loan not secured by the SBA is perhaps the most challenging to obtain, but if you have a good relationship with a financial institution, a stellar credit rating and the required minimum liquid capital, it may be a good option.

4.Veterans loan.
The Department of Veterans Affairs, another government institution, offers qualified veterans financing opportunities for franchise and business loans. The program, called the Patriot Express because of its speedy process, makes loans up to $500,000 to active-duty military preparing to transition to civilian life, as well as to spouses and survivors of veterans. The loans come with the SBA’s lowest rates.2

5.Home equity.
A home equity line of credit or second mortgage is a way of obtaining financing but comes with a personal risk. Financing in this way uses your home as security. This means if you default on a business loan, you lose your home. But with sufficient equity in your home, it can be a relatively easy financing source to tap.

6.401(k), stocks and other personal accounts.
It is not unusual for people to tap into their retirement or savings accounts to help finance business ventures. In an interview with the Wall Street Journal, Bernie Siegel, founder of Siegel Capital LLC, discusses a rollover plan where the franchisee creates a C corporation that will own and operate the new franchise business. That corporation then creates its 401(k)-retirement plan. The C corporation’s 401(k) plan then purchases stock in the C corporation. The cash paid to the corporation is then used as the down payment, and the balance can then be financed through an SBA guaranteed loan.3

At Taboonette, we are excited to work with financially qualified individuals to help them reach their goal of owning a restaurant food franchise. Together we look forward to growing both our Taboonette franchisee and customer bases and bringing our delicious trademark Middleterranean® food and a unique dining experience to more hungry guests.

For franchise information contact [email protected] . “Offer by Prospectus only”

1.https://www.sba.gov/
2. http://guides.wsj.com/small-business/franchising/how-to-finance-a-franchise-purchase/
3.https://www.wsj.com/articles/SB120242422031851929

Franchisees Need To Have An Exit Strategy

Identify a qualified advisor who can aid in developing a formal exit plan. An advisor could be an experienced attorney, financial advisor or accountant, who can assist with the various implications and tax issues regarding the sale or transfer of ownership. Surveys of small business owners indicate that their CPA is considered the most trusted advisor.
Establish the primary exit goal, for example, transitioning to a family member, sale to a third party, the franchisor or private equity group.

Franchisees Need To Have An Exit Strategy

Ed Teixeira – Contributor
Relying on 35 years of franchise industry knowledge

Franchisees seek to sell their business for a variety of reasons including burnout, personal issues, retirement or new opportunities. Whatever, the reason, every franchise ought to have an existing exit plan whether the execution of the plan takes place or not.

The Exit Planning Institute reports that: “Roughly six million privately held companies are operating in the United States, with approximately $30 trillion in sales. An owner who is “ready” with an attractive business greatly increases the odds that the business will survive a transition of hands. The question is, how ready are business owners?” Although this report doesn’t indicate whether it includes franchises, we’ll assume these statistics can apply to the franchise industry.

A survey of Long Island business owners was conducted by Dr. Richard Chan of Stony Brook University and Christopher Snider of the Exit Planning Institute. Franchisees should compare the results to their own situation as a franchise owner.

* 74% of businesses are family owned
* 63% have no board of directors or advisory board
* 50% consider ownership transition a top priority but 50% were not ready to transition their business
* 43% had no exit plan
* 17% had a written transition or exit plan
* 60% had not determined what they need to obtain from the sale of their company
* 82% had no outside resource or advisors to assist in an exit plan
* Their most trusted advisor was their CPA

Fundamentals of a Franchise Exit Strategy

Franchisees, whether they operate one or more units should have a written plan in place for either selling their business or transitioning ownership to a family member. For franchisees, this issue is particularly important since unlike independent business owners, the sale of a franchise is subject to franchisor approval, that can require equipment and location upgrades, which in the case of certain franchises can be costly. Many a franchise sales transaction was canceled because neither the seller or buyer would do remodel upgrades. In addition, there are important tax considerations that come into play because of the franchise sale. The lack of an exit plan and the related decisions that need to be made can impact the value of the franchise when it’s time to sell.

How to Begin

Identify a qualified advisor who can aid in developing a formal exit plan. An advisor could be an experienced attorney, financial advisor or accountant, who can assist with the various implications and tax issues regarding the sale or transfer of ownership. Surveys of small business owners indicate that their CPA is considered the most trusted advisor.
Establish the primary exit goal, for example, transitioning to a family member, sale to a third party, the franchisor or private equity group.
Set a range of time for selling or transitioning ownership of the business, such as two-five years or longer.
Decide whether you’ll want to stay involved in the business as an advisor, minority owner, etc. Some buyers want the seller to stay involved for a period of time while others want a clean break. It depends on the buyer.
List those items or actions that could increase the value of the business. Sometimes a few changes can make a major difference in value.
A marginally profitable business can be very difficult to sell, according to BizBuySell, only 20% of all businesses listed for sale actually sell. Finding a buyer on the open market can be a long process. Some businesses can be difficult to value, and the selling price may be much lower than expected.

Payment Terms

Seller financing has always been a mainstay of selling a business. Many buyers are reluctant to pay all cash and use most of their capital. Some buyers also feel that a business should pay for itself and are wary of a seller who wants all cash or who wants the carry-back note secured by additional collateral or personal guarantees. What sellers seem to be saying, at least as perceived by the buyer, is that they don’t have a lot of confidence in the business or in the buyer or perhaps both. However, if we look at statistics, it’s apparent that sellers receive a much higher purchase price if they accept terms.

Studies reveal that, on average, a seller who sells for all cash receives only 70% of the asking price. Sellers who are willing to accept terms receive, on average, 86% of the asking price. That difference on a business listed for $250,000, meaning that the seller who is willing to accept terms will receive about $40,000 more than the seller who is asking all cash, which is compelling reasons for a seller to accept terms.

The Buyers Expect Certain Financial Information

Who does the franchise financials? How believable are the numbers? If the franchise has a bookkeeper, will they let a buyer contact him or her? Can you get a copy of the franchise credit report? Is the franchise on good terms with the major suppliers? Three years of financial information is expected. Equipment contracts or leases or any other financial obligations of the business. They will expect to see receivables and payables and hidden obligations of the business. Be prepared to present some information regarding the performance of the franchise network.

Valuing the Selling Price of the Franchise

The easiest, and probably the most reliable method of putting a recommended selling price on a small business is what is commonly referred to as the discretionary cash flow or the discretionary earnings method. This method is based on the actual earnings of the business and is determined by the profit and loss statement. To figure out the cash flow or actual earnings of the business, it is necessary to make certain adjustments to the profit and loss statement. These adjustments, when added to the profit of the business, determine the “real cash flow” of the business. Add the owner’s salary, perks, family perks, and salary, business trips, company vehicles, and other discretionary expenses. This total cash flow figure is then multiplied by a number applicable to the specific franchise category. For franchises, the average multiple can range from 2 to 4 times SDE. The discretionary earnings method is appropriate for small businesses and franchises many business brokers encourage to use. There are other valuation models available. The Business Brokerage Press sells a Reference Guide for Businesses and Franchises that provides numerous valuation models.

Franchisees should have an exit plan in place to sell their franchise. A formal exit plan will enable the franchise owner to maximize the value of their franchise whether the sale is planned or not.
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About the Author
Ed Teixeira
Ed Teixeira is Chief Operating Officer of Franchise Grade and was the founder and President of FranchiseKnowHow, L.L.C. a franchise consulting firm. Ed has over 35 years’ experience as a Senior Executive for franchisors in the retail, healthcare, manufacturing and software industries and was also a franchisee. Ed has consulted clients to franchise their existing business and those seeking strategic solutions to operational, marketing and franchise relations issues. He has transacted international licensing in Europe, Asia, and South America. Ed is the author of Franchising from the Inside Out and The Franchise Buyers Manual and has spoken at a number of venues including the International Franchise Expo and the Chinese Franchise Association in Shanghai, China. He has conducted seminars, written numerous articles on the subject of franchising and has been interviewed on TV and radio and has testified as an expert witness on franchising. He is a franchise valuation expert by the Business Brokerage Press. Ed can be contacted at [email protected]

Building a Trusting, Engaged, and Accountable Workplace Culture

“What is the culture of this company” to a front-line staff member, the receptionist, the janitor, or anyone in between and you will receive a different answer.

Company Culture – What does this Mean?
By Jennifer Cook, Chief Operations Officer
http://www.symbiancehr.net/

When working with our clients we often have the leadership team explain to us what the culture of the organization is. Sometimes it is comprehensive, other times the description is brief, and still other times the culture sounds oddly like a list of core values. Unfortunately, for most organizations, if you ask the same question “What is the culture of this company” to a front-line staff member, the receptionist, the janitor, or anyone in between and you will receive a different answer. It is a discouraging fact, however, it should also be a wake-up call for leadership to consider their efforts to reinforce the desired culture and message the cultural goals so it permeates across the enterprise.

Remember, culture is simple terms can be defined as the actions and behavioral norms of the organization. Therefore, regardless of what you think the culture is, or what you desire it to be, if you do not influence and impact the behaviors of the workforce to model and demonstrate the desired culture it will not exist.
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It is important that all employees within your business work together and share accountability. Employees who work together towards the same overall goal to help their workplace to become more accountable, in turn, make the business more productive and successful.

The Impact of Failed Accountability
By Laura Goad, HCM Consultant

Great leaders know that positive accountability creates a culture of trust, engagement, and excellent performance. The impact of failed accountability can be detrimental to your business. When employees do not have a system of accountability in place, things can quickly fall apart. Lack of accountability causes a culture problem within your business. When no one trusts each other at work to do what they are assigned to do, employee morale suffers. Employees feel like they can’t trust their supervisor. They feel undervalued, and when employees aren’t feeling valued, they are less likely to be engaged with their work.

Lack of accountability in the workplace often stems from ineffective leadership practices. To achieve the goals of your business, it is important that all employees within your business work together and share accountability. Employees who work together towards the same overall goal to help their workplace to become more accountable, in turn, make the business more productive and successful.

Change your workplace culture so that accountability is included. Lead by example. Make sure employees know that they’ll be accountable for their work by creating guidelines about how you’ll monitor their productivity. Set weekly goals and deliverables, which will in return motivate employees to complete takes on a regular basis. Finally, praise them when you find them doing things right.
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About SymbianceHR
The seasoned professionals that make up the SymbianceHR Team bring to the table over 40 years of hands on experience in all areas of Human Capital Management.

Small and medium sized business seem to be placed in an area where they find themselves either too small to have an in-house Human Resources department (HR) or not large enough to have the resources necessary to keep the in-house HR staff up to date on recent modifications, additions and new policies.

In essence, a large portion of the small to medium sized business are operating out of compliance, or in an ineffective, and costly manner. Much in part to the fact that they have either not exercised discipline in the area of Human Resources or have mistakenly seen it as an expenditure entry as opposed to a cost reduction source.

With an abundance of resources, our Team stands ready when our clients, or potential clients, need us most. Whether that is for covering questions or concerns pertaining to: hiring, firing, benefits, employee retention, compliance, or lack thereof, regulatory updates, and recordkeeping or a quick study of current policies and procedures for conformity.

One of a business’s greatest assets is their employee base (Human Capital), however with that great asset comes, at times, great challenges. We work with our clients to guide them through the challenging times as well as the not-so-challenging, assisting them toward accomplishing their goals, while often saving them time, money and stress in the process.
http://www.symbiancehr.net/
SymbianceHR – Your Challenges. Our Solutions. A Successful Relationship.

2nd edition in our “Coach, Mentor & Grow®” video series for Franchisors

Here’s the 2nd edition in our “Coach, Mentor & Grow®” video series for Franchisors. The panel at the NY FBN/IFA meeting covered the topic of “Franchising and Private Equity- How to Position your Company” Panelist Oz Bengur, Lisa Oak, Grant Marcks and Roger Lipton. Hosted by David Azrin Esq.

If you’d like to receive the entire 1-hour session please contact us at [email protected]

Watch the video: https://www.linkedin.com/in/gary-occhiogrosso/detail/recent-activity/shares/

Are you looking for Capital or Deal Flow in the franchising space??

This session will consist of a panel discussion covering how to position your franchise company for Private Equity investment and what PE firms look for in a Franchise company acquisition or strategic partnership.

Are you looking for Capital to build your Franchise Company???
– OR –
Is your Investment Firm looking for deal flow in the franchising space??

By Gary Occhiogrosso
Founder of Franchise Growth Solutions, LLC.

On Friday, June 1st, I will be moderating a panel at the IFE in NYC. It will be comprised of Franchisors and Private Equity associates. Please see below for details and please let me know if you’d like to attend the meeting. If so, contact me here or at [email protected] & I’ll send you a FREE PASS to the Expo.

10:00 AM – 11:30 AM
+/- Private Equity Investing and Franchising
Room: 1B05
Moderated by: Gary Occhiogrosso, Managing Partner, Franchise Growth Solutions
Panelists: Roger Lipton, President, Lipton Financial Services; Grant Marcks, Vice President, Head of Business Development, Atlantic Street Capital; Kirk McLaren, MBA, CTP, CPA, Georgetown University
This session will consist of a panel discussion covering how to position your franchise company for Private Equity investment and what PE firms look for in a Franchise company acquisition or strategic partnership. In addition, there will be plenty of “networking” time for both Franchisors and Private Equity attendees to meet & network. This is a great opportunity for Investors and Franchisors to meet face to face and discuss current and future opportunities.
Sponsored by Franchise Growth Solutions, LLC. www.frangrow.com

FREE PASS To the International Franchise Expo in NYC
USE PROMO CODE FGS at: https://r1.events-registration.com/IFE2018/?source=FGS
YOU ARE INVITED BY
Franchise Growth Solutions
Booth #340
USE PROMO CODE FGS

This session will consist of a panel discussion covering how to position your franchise company for Private Equity investment and what PE firms look for in a Franchise company acquisition or strategic partnership. In addition, there will be plenty of “networking” time for both Franchisors and Private Equity attendees to meet & network. This is a great opportunity for Investors and Franchisors to meet face to face and discuss current and future opportunities.

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#networking #businessdevelopment #financialservices, #franchiseconsulting #strategicpartnerships #ife #capitalization #dealflow #investments #acquisitions #privateequity #howto #franchising #pe #positioning #officers #universities, #moneyraise, #Franchisesales,#expansion, #capital, #NYC, #Sharktank,

Find Out if Franchising is Suitable for your Business

Franchise Your Business: www.franchisegrowthsolutions.com


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A business ‘partnership’ in which one party permits the other ‘partners’ to replicate a proven business system, operating under a common brand, in return for initial and on-going fees. It allows a third party to legally copy your business in exchange for an upfront payment and on-going management services fees.

Is Franchising suitable for your Business
By Daniel Kidd

A business ‘partnership’ in which one party permits the other ‘partners’ to replicate a proven business system, operating under a common brand, in return for initial and on-going fees.

It allows a third party to legally copy your business in exchange for an upfront payment and on-going management services fees.

To franchise a business you need the following factors

• Sufficient development capital to establish a franchise system
• High enough margins to share
• Existing business network or ‘pilots’
• Easily transferable knowledge
• Identifiable brand or trademark
• Expansion requires investment into property, equipment and staff

The Benefits

• Franchise fees will generate a stream of capital income and ongoing revenue
• A loss of profit margin will be offset by much larger overall revenues
• Motivated franchisees ‘running their own businesses’ will generate higher per unit income than employees

What can be franchised?

• Very diverse range of businesses
• Proven business systems capable of replication
• Profitable businesses financially viable for both parties and financially secure
• Steady or growing demand for your products or services
• Simple business formats that are easy to learn
• Identifiable brands and trademarks with your own distinctive image or concept

Undertake a SWOT Analysis of your brand

Trading History

• How long have you been in business?
• What is proven?

Profit Margins

• Are these above average industry benchmark?
• Is there enough margin for two?

Market

• How big is your market?
• How volatile is your market?
• Does it have mass appeal?

Products

• Is there consumer acceptance of your product?
• Is your product or service easy to sell and deliver?
• Quality record?

Brand

• Is your Intellectual Property protected?
• Is there a unique and distinguishable marketing approach?
• What is your reputation in the market place

Business Management

• Do you have the management skills and capacity to create a new culture?
• Is your business professional and well presented?
• Is your management financially skilled?
• Do you have well documented processes and systems in use?
• How is Information Technology used in your business?
• What is your attitude to risk?
• Is there a commitment to research and development?

Franchise Opportunity

• Do you have sufficient access to development capital to fund growth?
• Are there similar franchises already on the market?
• Will the franchisee be able to control their costs?
• What will be the minimum term?

Reasons for failure

• Growing too fast too soon
• Franchising for the wrong reasons
• Lack of planning
• Selecting the wrong franchisees
• Lack of infrastructure and support
• Failure to take proper advice

Review your SWOT

Do you have the key criteria you need to franchise

• Developed systems of operation and staffing
• Defined image and clear market position
• Proven and successful business model
• Sustainable market and source of ongoing clients
• Easily duplicated management systems
• Profitability for both parties
• Mutual respect and support – partnership
• Will your operating experience and culture allow you to develop a franchise operation?
• Are your products or services suitable for franchising?
• Is your Brand sufficiently well developed and strong enough to deliver a worthwhile advantage to a franchisee?
• Is your financial position strong enough to support a franchise network?
• Is your business system provenFind Article, robust and capable of being learned by a franchisee?
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ABOUT THE AUTHOR

Daniel Kidd writes about a range for business and franchising topics. For more information please visit Coach Franchise.

Source: Free Articles from ArticlesFactory.com
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End of Article

Franchise Your Business: www.franchisegrowthsolutions.com

Are you looking for Capital to build your Franchise Company???

The meeting will consist of a panel discussion covering Private Equity Investing in franchise companies.
In addition we’ll discuss how to position a franchise company for Private Equity investment and what PE firms look for in a Franchise company acquisition or strategic partnership.

By Gary Occhiogrosso
Franchise Strategist
Turn your Business into a Franchise www.frangrow.com

Are you looking for Capital to build your Franchise Company???
Is your Investment Firm looking for deal flow in the franchising space??

On Friday June 16th, I will be moderating a panel at the IFE in NYC. It will be comprised of Franchisors and Private Equity associates.
Please see below for details and please let me know if you’d like to attend the meeting or be a panelist.
If so, contact me here or at [email protected] & I’ll send you a FREE PASS to the Expo.

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Friday June 16th, 2017
10:30am to 12noon
International Franchise Expo
Jacob Javits Center, NYC

Title: Deal Flow/ Private Equity Investing and Franchising.
Open to: Franchisors and PE attendees only.
Moderator: Gary Occhiogrosso – Managing Partner, Franchise Growth Solutions, LLC.

The meeting will consist of a panel discussion covering Private Equity Investing in franchise companies.
In addition we’ll discuss how to position a franchise company for Private Equity investment and what PE firms look for in a Franchise company acquisition or strategic partnership.
There will be plenty of “networking” time for both Franchisors and Private Equity attendees to meet & network. This is great opportunity for Investors and Franchisors to meet face to face and discuss current and future opportunities.
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FRANCHISE GROWTH SOLUTIONS, LLC. is a membership only strategic planning, franchise development & sales organization. Admission into our client portfolio is by recommendation only. Our service is offered only to those recommended & qualified franchisors committed to growing their brand. Our “Coach, Mentor & Grow”® program helps put your system on a fast growth track.

Since we limit our client list to six, you must be recommended into our Member Client Portfolio. Please contact us to discuss a free evaluation interview. We will have an open, honest discussion regarding your brand, its growth potential and whether we mutually agree if Franchise Growth Solutions, LLC is a good fit. For FREE TICKETS visit www.frangrow.com . Contact [email protected]

So You Want To Be An Entrepreneur? Start Here!

Want to be an entrepreneur? It’s the first question everyone asks: where do I start? Well, if you want to be an entrepreneur but you wonder what’s been holding you back, I have the perfect place to start: the mirror.

Want To Be An Entrepreneur? Start Here!
By Bubba Mills

It’s the first question everyone asks: where do I start?

Well, if you want to be an entrepreneur but you wonder what’s been holding you back, I have the perfect place to start: the mirror.

Yes, if you want to know what’s holding you back in your professional life, grab a mirror, and after you get over all the admiring, notice what’s between your ears. That’s right, it’s your head.

Everything your life is today is a direct result of what’s been going on between your ears. Henry Ford said it well, “Whether you think you can, or you think you can’t, you’re right.”

If you think your problems come from outside of your head, please move on. I can’t help you. And ironically, you won’t be able to help yourself. Because all change comes directly from you and the understanding that you’re responsible for your life – no one else – nothing else.

Now, if you’re still with me and you’re willing to accept what I’ve written so far, good. You’re on the right track – the track to a better, more fulfilling life.

Your mindset – in essence – how you think, determines outcomes. Accept this and you’re on your way to being not just any entrepreneur, but a successful entrepreneur.

The next step: overcoming fear. We all have it – and for good reason. Sometimes fear saves your life. Long ago, fear served us well when we heard the growl of a hungry tiger. And unfortunately for many would-be entrepreneurs today, the fear they feel is equivalent to hearing that tiger – even though it’s not a life-threatening situation. So instead of moving forward , they end up frozen with fear. Realize this to overcome any fear: the absolute worst thing that can happen is that you fail. Big deal. Get up, dust yourself off and go at it again.

And the next step: weigh the gains. The safe route is the 9-to5 J.O.B. (Just Over Broke) — The world of mediocrity and the false security of “knowing” that they show up to work and they get paid for that day. The fact is people get fired from “secure” jobs every day. Why not weigh the gain of living the life of your dreams using your new-found mindset of knowing you can succeed?

Here are the other gains of entering entrepreneurial waters:

Freedom: Yes, the positives include the freedom to set your own hours, leave the office when you want, and vacation on a whim. You not only have 100 percent control of your schedule, but also freedom from the negatives of normal jobs: dealing with boneheads, having to show up at a certain time every day, sitting in pointless meetings. On and on.

Control: You and you alone sit in front of the control panel of your business. You decide what products or services to offer. You choose your ideal customer. In short, you control every aspect of your business instead of someone else telling what to do.

Unlimited Income: No one will tell you your salary. You and your new mindset get to create your income. And let me tell you from personal experience, the sky truly is the limit. Just be sure not to set your goal too low and settle for good, when great is achievable. Business guru Jim Collins said it best: “Good is the enemy of great.”

Work/Life Balance: What’s my favorite characteristic of being an entrepreneur? Let me start with the end in sight — you get to attend every one of your kids’ school events or family get-togethers. Yes, that is the blessing of not working for someone else. You don’t have to submit a time-off request or wonder if you have accumulated time-off to take a vacation.

I’ll leave you with this: “You can’t teach hunger. You either have it or you don’t.”

You still with me? You still willing to give your new life a shot? To be bold? Adventurous?

Bubba Mills is the CEO of Corcoran Consulting and Coaching Inc. (www.corcorancoaching.com/programs, 800-957-8353), an international Real Estate, Mortgage, and Small Business coaching company. Mills is a nationally recognized speaker, coach and mentor to the top real estate agents and mortgage companies. Visit us at www.CorcoranCoaching.com.

Visit www.frangrow.com and put your idea into orbit!
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http://articles.submityourarticle.com/want-to-be-an-entrepreneur-start-here–372474

THE QUITTERS OUT NUMBER FAILURES IN THE GAME OF SUCCESS

Your enemy on the journey to success really isn’t after making you a failure, he simply wants you to quit. Hence the reason there are more quitters than failures in the game of success. The passage can be the hardest process of all.Quitters Outnumber Failures in The Game of Success

QUITTERS OUT NUMBER FAILURES IN THE GAME OF SUCCESS
By Sandi Krakowski

When you enter into the camp of success you have a very real enemy. If you haven’t met him you just haven’t gotten close enough yet. You see he is a confirmation for you. He is not a road sign to show you’ve gone the wrong way. Quite the contrary. He is a confirmation that you are heading in the right direction. Let me warn you however his tactics are slick and at times they can be fierce, hence the reason why more than 85% of people on the road to success quit. Most don’t fail, they quit, plain and simple. And that my friends is the goal of your enemy. His goal is to make you withdraw, retreat and go backwards, and ultimately quit.

He isn’t in the business of kicking people out of success. And failure really isn’t the thing we most fear- the truth is we oftentimes fear success so much and the passage to get there can hold things we have hid from, refused to deal with and simply won’t go through our entire lives. So truly, in success, there are far more quitters than there are failures.

Success in business, success in sports, success in your marriage, success as a parent, it doesn’t matter how you apply this, it’s the same truth across the board. There are three tactics to be on guard for, and when you learn to recognize these maneuvers of your enemy, you’ll be prepared to act offensively and conquer.

Misinformation- this is a tricky and long time trick of the enemy of success. Frankly it’s probably the single biggest cause of divorce. Misinformation, lack of information, confusion- they all hang out together. Your enemy wants you misinformed so he can create confusion.

Confusion- a cousin of the first strategy and one that has hit our world at epidemic proportions. Confusion is the root to depression, suicide and fear at it’s core. Confusion distorts and misinforms- look again at point one. If you are confused you most likely won’t act and if you aren’t going forward in action you aren’t likely getting anywhere which leads to the result your enemy strives for, you quitting.

Lack of information- your enemy wants you to lack the information you need to take action so that you can achieve your goals. For an amazing eBook that right now ( might not always be) is free of charge, go to www.strategicprofits.com and get The Attention Age. One of the biggest ways for your enemy to get you to lack information is to fill you with too much information. ADD is the natural result, distraction, disorientation, retreat, back off, quit.

So what can you do win? Stay on top of the game. Realize the passage might be the hardest part of your success journey. To go from over $ 500,000 in debt to being 100% totally debt free there was a passage, a bridge I had to cross and one of the most valuable ingredients to that crossing was to continually do the things I knew would make me money. I didn’t spend a bunch of time researching, planning, strategizing repeatedly- I made a commitment that for 3 hours per day, just 3 hours, I would do the things that make me money. So here I am, living the life of my dreams! Writing for a living, it’s this very same passage that I am crossing now, going from writer who makes several thousands per month to a 7-figure earner is my goal.

The passage from collection agencies to paying your bills in advance and making yourself the banker on all of your loans. The passage from not being able to stand being in the same room with your spouse to having a really hard time keeping your focus on anything else when they are in the same room. The passage from thinking your teenager will never grow up to realizing you are the one who needs to grow and communication is the key. All of these are passages that must be crossed to achieve success and sadly, there are more quitters than there are failures in the road to success.

God bless you! Prosper you and don’t retreat, don’t back off, go forward and receive the life you were designed for,
Sandi

© Sandi Krakowski, 2007, all rights reserved- If you liked or maybe even LOVED this article, let Sandi know. She’s piecing together a book and wondering if anyone would even read it!

Sandi Krakowski is a woman that decided to break the rules in her own life when in 2003 she was diagnosed with a fatal health condition. Recovering 100% and leaving doctors baffled, she went from being over $ 500,000 in debt to a totally debt free lifestyle that she now works under 20 hours per week from the comfort of her radical space in her home office, many times on the grass behind her house where the birds hang out. She is passionate about helping others to live the life they want now, sharing her own personal experience of facing a life threatening disease in the face and conquering fear, debt and illness. She now operates a marketing and copywriting business that has taken everyday average people to a place of notoriety on the net with very little effort. If you liked or maybe even LOVED this article, let Sandi know. She’s piecing together a book and wondering if anyone would even read it! Contact Sandi at: http://www.arealchangemarketing.com

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