Franchising

FICTION #1...Franchises succeed because of the quality of their product.
FACT: Can you make a better burger than McDonalds? Of course you can! Franchises are successful because of their business systems...marketing, sales, operations & accounting. Proof? What is the average age of a fast food employee? If a "kid" can run a million dollar business, the systems must be well defined.

FICTION #2...Successful franchises emerge in new industries with no competitors.
FACT: Think about a really successful franchise...thinking outside the bun...how about...

Martinizing...didn't people have their clothes dry cleaned before this franchise?

Dunking Donuts...didn't people eat donuts before Dunkin came along?

Ace hardware...people have been buying tools long before this franchise opened its door. Successful franchises emerge in basic industries with lots of competitors by developing effective systems to dominate the industry. Right now, Fast Food is 95% consolidated, Hair Care is 30% consolidated; Janitorial is 5% consolidated. You can see where the opportunities exist.

FICTION #3...Franchising is all fast food and retail
FACT: There are over 3100 franchise companies in 80 industries. Franchises range from advertising/direct mail to senior care to financial services to home repairs to storage systems. Printing and postal centers, website and social media services, pet services, building services, painting, money stores...and the list goes on.

FICTION #4...Franchises are expensive.
FACT: The "All-In" cost of 30% of franchises is under $100,000. Investing in a franchise is similar to buying a car, a house or a stock. The cost will be based on what you are buying; it can range from $30,000 to many million. The "All-In" costs include the franchise fee; start up costs (marketing, rent, training, etc.) and enough funding to keep the doors open until break even...which can be 6-12 months. About 1/3 of the "All-In" costs will be your own money. With good credit, there are financing options available to cover the rest.

FICTION #5...High return requires a high investment
FACT: The fastest growing segment in franchising are service businesses. They don't require real estate or equipment. They often require less capital; can ramp up quicker and have a faster ROI than brick and mortar businesses. There is no automatic correlation between the cost of a franchise and the financial potential.

FICTION #6...My industry knowledge is the key to success in a franchise
FACT: Only 25% of franchisees stay in the same industry as when they were employed. The franchisor teaches the technology of the business. Some franchisors won't accept franchisees with industry experience because they are less likely to follow the franchisors proven systems; which can contribute to franchisee failure.

What does it take to succeed in a franchise business? Drive, determination, a good franchise system and the right "fit". Specifically, make sure the business maximizes your strengths, passions and skills.

FICTION #7... Franchisees are just buying a job.
FACT: Quality franchisors want their franchisees working "on the business not in the business". The bigger your business, the more money the franchisor earns. Franchising is attractive to many entrepreneurs because it offers many of the advantages of a partnership. "Franchising means being in business for yourself but not by yourself." Whether it's accounting and financing, advertising and public relations, personnel management, purchasing, or inventory control, franchisors are there to provide 'hands on,' one-to-one assistance.

FICTION # 8...Franchise businesses are complex, you wouldn't be able to get into the business yourself.
FACT: For a business to be a franchise, it must be a simple business so that it can be easily replicated time after time. The question is not "Could I do this business myself?" Of course you could. The question is "How will I make MONEY faster?" The good/great franchisees save you time; allowing you to get to the financial finish line quicker.

FICTION # 9...A new business can't be successful during this recession.
FACT: There are many franchise businesses that are not affected by economic sways and some that even thrive in recessionary conditions. Think about growing markets that are driven by demographics and need. For example, 7,000 Americans turn 65 years old every day. Many franchise businesses serving the senior market continue to do well. By 2030 the 65 and over population will double...this is a demographic opportunity! According to USA today, 16 of the 30 corporations that make up the Dow Jones started during a recession.

The biggest MYTH is "Getting a job will insure my financial future".
FACT: According to the Federal Reserve, the average net worth of American families headed by an employee is $352,000. The average net worth of American families headed by a self-employed person is $1.96 million.
Franchising is not for everyone. The question is..."Is Franchising right for YOU?" To find out, you are invited to attend a free educational seminar on December 15th during The Business and Career Expo. You will learn about franchising; meet several top franchise representatives & get your questions answered. Join us at "Franchising 101...Today's Alternative to Corporate Employment".