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Welcome
 Welcome
 About me
 Commercial Lender
 Human Resources Professional
 Business Owner of Essentials of Human Resources
 Founder, Own Your Next Career, LLC.

What we will cover today
 What is an Entrepreneur or a Franchise
 The Difference between a job, start up business and a Franchise
 Success rate of a Franchise
 Franchise Myths versus Facts
 SBA Approved Franchise List
 SBA Failure Rate of Franchises
 Why Franchising

Entrepreneurship
From Wikipedia, the free encyclopedia:
 Entrepreneurship is the process of starting a
business or other organization. The entrepreneur
develops a business plan, acquires the human and
other required resources, and is fully responsible
for its success or failure.

Franchising
 The practice of the right to use a firm's business model and brand for a
prescribed period of time. For the franchiser, the franchise is an alternative
to building "chain stores" to distribute goods that avoids the investments and
liability of a chain. The franchisor's success depends on the success of the
franchisees. The franchisee is said to have a greater incentive than a direct
employee because he or she has a direct stake in the business.
 Essentially, and in terms of distribution, the franchisor is a supplier who
allows an operator, or a franchisee, to use the supplier's trademark and
distribute the supplier's goods. In return, the operator pays the supplier a fee.
 Thirty three countries—including the United States and Australia—have laws
that explicitly regulate franchising.

Job
A job is an activity, often regular, and often performed in
exchange for payment. A person usually begins a job by
becoming an employee, volunteering, or starting a business.
The duration of a job may range from an hour (in the case of
odd jobs) to a lifetime (in the case of some judges). The
activity that requires a person's mental or physical effort is
work (as in "a day's work"). If a person is trained for a certain
type of job, they may have a profession. The series of jobs a
person holds in their life is their career.

What are the differences?
Job
• Your get annual raise maybe
• You get two weeks vacation
• Your tax bracket doesn’t
allow for certain write-offs
• You need permission for
personal time off
• Your performance is not as
valued it is within the
“budget” or “profit margin”
Your Own Business
• You have to do all of it on
your own
• Balancing life work can be
difficult
• You enjoy tax advantages
• Time off may be difficult
• Getting a business loan is
difficult
Franchise
• You have a system that is a
successful proven model
• You can balance life work
and time off
• You enjoy tax advantages
• You are never alone you
have support from the
franchise system
• Getting a business loan is
easier
• Regulated State & Federal
laws

0
2
4
6
8
10
12
Job Own Business Franchise
Differences
Years Tax Advantages Personal Satisfaction Rate

Your Own Business versus a Franchise
Your business Startup
 No brand identity
 Advertising needs to determine
 Uncontrolled costs to ramp up
 Website development, logo, legal,
accounting needs to worry about
Franchise
 Brand image established
 Recipe for advertising
 Controlled costs to manage
 Assistance provided for Website
development, logo, legal, accounting needs

Your Business Startup
 Site selection and lease negotiation
 You don’t get a day in the life
 Opening day-then your own your own
 Can’t obtain financing for growth or cash
flow
 Your on your own
 Slow start
Franchise
 Demographic analysis and assistance with
site negotiation/lease agreement
 Discovery day allows you to experience a
day in the life
 Grand opening and ongoing support and
training
 Lenders prefer proven franchise models
 The franchisor wants the brand to succeed
thus they support your ongoing efforts
 Quick start, systematic approach
 Risk is Minimized

Franchising
Success Rate
Franchises have a 90% +
success rate.
Most people can’t even
predict that
they can keep their jobs
with 90% certainty.

Franchise Ownership Myth or Fact
Myth
 The royalty will cost you
 You can stray from their system
 Loans to grow my business is hard
to obtain
Fact
 It is to used to market your brand,
ongoing support, training
 Business suffers if you detract from
their proven methodology
 Lenders prefer Franchise lending
over entrepreneurial unproven
companies

SBA Approved Franchise Funding List

SBA franchisee failure rate (very few fail)

Disadvantages of Franchising?
 You need to conform to the standards
 Fees
 Aligning with a weak franchisor
 Reliant on franchisors success
 Duration of the agreement

Is Franchising Right for you?
“I’m in business for myself, but not by myself”.
“I want a ‘bottled’ process for success that I can use in
developing my own successful business.”
“I have the opportunity to learn from the success and
failure of others.”
“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?"

Did you know?
1. One in every 12 businesses in the US is a franchise.
2. Franchises account for about 50% of all retail and food sales in the US.
3. Over 90% of franchises are still in business after 7 years while less than 20% of
independent businesses are in business after 7 years.
4. Franchise investments range from less than $25,000 to over $1 million, with
the national average being about $225,000.
5. Franchising currently represents over 75 different industries.
6. Each year the International Franchise Association polls thousands of
franchisees and over 90% asked answer “Yes” to the question, “do you
consider your business a success”.

Why franchising makes sense
TRAINING & ONGOING
SUPPORT
Franchising offers aspiring, new
business owners the best
possible chance of succeeding
with the least risk.
RISK MINIMIZED
GROWTH &
OPPORTUNITY
BRAND RECOGNITION
FRANCHISING IS EXPECTED TO COMPRISE
OVER 50% OF THE RETAIL ECONOMY WITHIN A
DECADE, ACCORDING THE FRANCHISE
ECONOMIC OUTLOOK INDICATORS.
A WELL-KNOWN NAME CAN BRING
CUSTOMERS INTO THE BUSINESS AND
PROVIDE A COMPETITIVE ADVANTAGE FOR
THE FRANCHISEE..
PROVIDES TRAINING ON BUSINESS
OPERATIONS AND ONGOING MANAGERIAL
SUPPORT AND PROBLEM-SOLVING
CAPABILITIES FOR FRANCHISEES.

Why franchising makes sense
ECONOMIES OF SCALE
MOST FRANCHISES WILL ASSIST
WITH REAL ESTATE EXPERTS.
COOPERATIVE
ADVERTISING PROGRAMS
Provide local national
exposure at an
affordable price.
PROVEN BUSINESS
MODELSITE SELECTION
PROVIDES BUSINESS
LEVERAGING POWER AND
VOLUME PURCHASING SAVINGS.
FRANCHISING OFFERS YOU THE ABILITY TO
TAKE A GUIDED STEP INTO A PROVEN BUSINESS
FOR YOURSELF, BUT NOT BY YOURSELF.

RESEARCH
WHAT’S THE COST
At no cost to you. Consultants are
paid a finders fee by the franchisor.
The is outsourced by the franchisee to
lower their advertising costs.
GUIDES YOU THROUGH
THE PROCESS
Consultants educates the buyers,
analysis your qualifications and fit you
to the right company throughout the
whole process.
PROVIDES A NETWORK OF
RESOURCES
Having resources available through the
process will assist you during the
negations.
SAVES YOU TIME AND
MONEY
RESEARCH
COMPLIMENTARY
CONSULTANT
WE TEACH YOU WHAT THE FRANCHISORS
ARE LOOKING FOR IN A CANDIDATE, HOW
TO INVESTIGATE A FRANCHISE AND WHAT
QUESTIONS TO ASK.
EXACTLY THE SAME WHETHER YOU
WORK WITH A CONSULTANT OR BUY
DIRECT.
VETTED FRANCHISES, WITH A PROFILE
ON EACH ONE.

The Future of Franchising
You are in the right place at the right time.
• People are disenchanted with corporate jobs, because of the dot.com failures and
the corporate scandals.
• 20-34 year olds are going into business for themselves three times as frequently
as 35-55 year olds, many looking at franchising.
• The “Baby Boomers” are retiring from their jobs, but are too young to truly retire.
• Women are going into business at twice the rate of men, and many looking at
franchising.
• Minorities – another fast growing groups are going into franchising.

Introduction to Franchising by the International Franchise Association

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