May 2015 Archives

Buying a Franchise

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Before you start looking for a franchise to buy, think about why you think you want to buy a franchise opportunity in the first place.

What benefits do you expect to receive from a franchise that are more or better than what you could gain from starting a business on your own? While federal and some state laws define what business opportunities are franchises-and that definition is very broad-there are no laws that require franchisors to provide their franchisees with anything specific. Or with anything at all.

No minimum level of assistance, no ongoing support, no marketing help, no on-site visits, not even phone calls or emails, and certainly not innovations and further development of the business model UNLESS it's in the contract!

Will you still be willing to pay royalties and operate by someone else's rules after you've been in business for a couple of years, and are comfortable that you now understand the business and what you are doing? Are you a follower? Can you play by the rules? For as long as you have the business?

Are you a risk taker? Willing to take a chance on a new concept, a new company? Do you need a mature, well proven business? How much are you willing to risk? Are you prepared to deal with the consequences of failure?

Everyone will tell you to do your homework on researching a business or franchise opportunity, but start with yourself. What is going to work for you?

Here are Five Tips on Buying a Franchise Business Opportunity

  1. Do your homework, don't just fall in love with the business. Be sure it is right for you and profitable enough to meet your need.
  2. Promises really are just as good as the paper on which they are written-this is especially true in franchising. The person you trust today may not be with the company tomorrow.
  3. Can you be a team player and follow direction?
  4. Investigate your franchisor, that means ownership, management and financial stability.
  5. Think about consequences. What happens if things go wrong? Maybe investing in an experienced franchise attorney is worth it.

Yes it IS marketing. When you bring your product, service, goods, what have you, to a market, how you distribute them is key. It's been a long time since a client told me they wish to sell "one franchise at a time". I mean it happens, but it's no longer the plan of choice. The 3-5 pack seems very popular. Better still the 5-10 pack. If you have one great franchisee wouldn't you rather he/she open 3-10 of your locations than finding 3-10 franchisees, hopefully just like this one? Of course. Are you offering incentives? Are you telling the really great candidates what value-add you offer, such as a national PR firm behind your brand? Or a stellar ad agency that helps build the brand?

SEI Healthcare, based in Brentwood, Tennessee has area developers in Kentucky/Southern Ohio, Florida and Georgia. After years of perfecting his system, founder Beau Brothers chose a new name that doesn't pigeonhole the company in a specific niche. After being known as Sitters Etc. since inception, Brothers decided to seek a name that reflects the new services they offer.

"We are not sitters per se, but so much more," said Brothers, who is now focused on franchise growth expansion, while passionately maintaining the principles upon which the company was first founded. "And the time to reflect these new services and higher levels we have reached in care is now."

According to a 2014 U.S. census report, America's population of seniors stands to grow precipitously by 2050. By 2030, the report says, more than 20% of the U.S. population will be 65 or older, up from 13 percent in 2010. This, said Brothers, is one of the reasons why he is certain now is right the time for SEI Healthcare's own growth.

"Over the past 13 years we have refined our care process with a firm understanding of best practices for seniors," said Brothers. "The sum of our combined experience and knowledge of how to provide the best care for seniors gives me tremendous confidence that any SEI Healthcare franchisee will have a great opportunity to succeed in providing non-medical in home care during a time when, more than ever, senior care is in high demand."

Brothers continued, "The Area Developer is ideal for us. Someone who knows the industry, what is needed, understands franchisees and their needs too and has vast sales and marketing experience is the perfect person to help build our system and our brand."

Already expansion plans are coming to fruition in four territories in Eastern Kentucky, where new franchisees began training in March. While Brothers sees opportunity for franchise growth throughout the country, Dallas, Houston, Atlanta, Tampa and Jacksonville, Florida and

St. Louis are all key target markets the company recognizes as being especially fruitful for interested franchisees. The Area Developers who signed recently, Craig Shaw and Ralph Laughton, will be developing Georgia and Florida respectively. The pair has specific talents and backgrounds that would be ideal for almost any franchise system.

Said Shaw, "my dream at the beginning of my search was to invest in a multi-unit territory of a franchise system and develop them over time. As I did more research in franchising, the Area (or Regional) Developer role was attractive because it would allow me to both accomplish my long-term goals of growing a business and to invest into the lives of others. The more I researched the AD role the more excited I became about the opportunity to partner with a franchisor to grow his/her brand so I began to look for an organization that had a great system and one that I knew I would enjoy working closely with.

"And," continued Shaw, "on a personal note, I've always enjoyed assembling a team of motivated individuals to collectively accomplish a goal. By building a network of franchise owners throughout the state of Georgia, I believe that we all can be stronger by working together to address both the needs of our clients as well as the franchise owners. I've always enjoyed coaching and mentoring, and I welcome the opportunity to help develop our franchise owners in GA and see them succeed. I have 28 years of medical sales experience to share with our team, and I look forward to encouraging our franchise owners to perform at their very best."

And Shaw's opinion is that the AD model provides a great opportunity for franchisors to grow their brands and accomplish their vision through strategic partnerships with like-minded business professionals. Shaw said, "The vision of SEI Healthcare is to raise the standard of care within the non-medical home care industry. This philosophy closely mirrors what I've tried to accomplish in my 28 years of selling within the healthcare market."

By utilizing the AD model, a franchisor can benefit from a business partner that has great knowledge of local markets, issues and challenges. Additionally, an AD can stay on top of issues that affect the local franchisees and bring everyone together to determine the best solutions and approaches to take. Franchisees with access to an AD also benefit by having a local level of support to compliment that which they receive from their franchisor."

Go to: http://www.sittersetc.com/homecarefranchisee/




After The Franchise Expo. What Now?

So after attending the franchise expo, what do you have?

A lot of questions, in spite of a bag full of literature that you carried home. You can't possibly process all the information that you heard from franchisors, seminar leaders, attorneys, and moneylenders, but you know there's something in it for you.

Buying a franchise can change your life for the better, if only you make the right decisions.

So what do you do now?

Why'd You Go To The Expo?

Post-show fatigue is a real phenomenon. It's the result of too much information in a short period of time. Many people, because they don't know what to do, do nothing at this point. Others promise themselves that they'll review their notes and that bag full of literature, but they never do. Consequently, many people miss out on making a decision that could, in fact, change their lives for the better. Granted, it's important to understand what you're doing if you buy a franchise, but isn't that why you went to the franchise expo? Or did you go for the free food?

If you're immobilized after a franchise expo, the good opportunities may pass you by. Sure, there's always another expo, and another opportunity, but that's what most people think - and most people don't buy franchises.

Five (+1) Steps To Help You Now

If you believe that franchising makes sense for you, and you want to come to grips with a decision to buy a franchise (and overcome post-show fatigue), here are the steps to follow:

  1. Select your favorite brands. Of the franchise brands that you discovered at the expo, which two or three do you remember as potential opportunities for you? Keep whatever information you have about those brands and set the rest of the information aside.
  2. List your questions. What do you need to know to make a decision about buying one of the brands you identified above? Make a list of the questions.
  3. Validate the franchise. Not sure if you're looking at a legitimate franchise opportunity? Stop worrying. Contact the International Franchise Association at 202-628-8000 or online. Is the brand a member, or at least identified as a franchise by IFA?
  4. Attend a Discovery Day. This is the easiest and the best way to get your questions answered efficiently. Almost every franchisor sponsors a free information day. Ask for an invitation and don't worry: attending a Discovery Day does not obligate you. This is an opportunity to meet the people who operate the franchise and learn more from them.
  5. Visit a franchisee. Talking with a franchisee may help you take the next step to buying a franchise. An existing franchisee can help lead your way.
  6. If all else fails, there's one final step: Visit another expo and start all over again.

Attend America's Favorite Franchise Expo

To that end, you should know that America's favorite franchise expo, the International Franchise Expo, is set for June 18-20 at the Javits Center in New York city.

You can register for free.

You may be interested in attending my symposium, The A to Zs of Buying a Franchise - it sells out every year - so buy early. Learn details here

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Young ChefsĀ® Academy, a premier children's cooking school franchise company ("YCA" or "the Company"), today announced significant restructuring measures during the most prolific periods of innovation since its inception.

These key organizational changes were implemented to optimally position the Company for growth opportunities in an evolving franchise industry.

The Company is pleased to announce the appointment of Roger Schmidt, who was the former Senior Vice President and Chief General Counsel of Curves International, to the position of President.

Also, Kevin Ayers, who was the past Vice President and General Counsel of Curves International, has been named Vice President and General Counsel.

Mr. Schmidt and Mr. Ayers came on board at Young Chefs Academy as equity partners several months ago helping to complete a class A corporate team.

Mr. Schmidt's role will be to drive efforts directed at overseeing franchise business expansion, employee additions, corporate administration and global services.

Mr. Ayers will assume responsibility for overseeing legal and compliance requirements along with assisting in domestic and international business expansion.

Schmidt said, "I have had the privilege of representing, owning and working with many franchise businesses and I can truly say I am delighted at the opportunity to work with such an attractive concept.

Our founder's [Julie Burleson] strong commitment in the values that will make Young Chefs Academy a household name is the key ingredient, and I look forward to making this the number one children's service franchise."

"We are excited about our plans to expand our franchise business system and continue to provide the support we believe our franchisees deserve," said Ayers. "We look forward to enhancing the Young Chefs Academy brand worldwide and increasing the value of each franchise."

Founder, Julie Fabing Burleson has assumed the role of Chief Executive Officer and will continue to lead Young Chefs Academy creating the company culture and mission that is necessary to meet business objectives while supporting the Company's growth and vision.

"As the leader of Young Chefs Academy, I have an obligation to the System, the franchisees and the customers we serve to make YCA a household brand," said Burleson.

"While these moves were bold, they were absolutely necessary to position us in the best possible place for future growth.

Our strong base of franchisees recognize what this means to their business as well as the increased value to their franchises."

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

From restaurants to retail, there are no shortages of franchising opportunities available to entrepreneurs - and it can be confusing on how to make a decision. Whether you have many years of experience in owning a franchise and are looking to grow or are planning on buying a franchise, you should always take a look at franchise industry statistics before embarking on any new business plan.

Keep reading for franchise facts culled from the International Franchise Association's annual economic outlook report and the U.S. Small Business Association.

Facts about franchises

FRANCHISE EMPLOYMENT

  • 8.8 million: the total number of direct franchise jobs in 2015
  • +247,000: the number of new direct jobs franchises will create in 2015
  • +235,000: the number of new direct jobs the franchise industry created in 2014
  • Franchise types predicted to grow the most:
    • #1: Quick-service restaurants
    • #2: Retail businesses
  • Employment distribution:
    • 65%: Food and hospitality (table and full-service restaurants, quick-service restaurants, retail food, lodging)
    • 29%: Services (business services, personal services, commercial and residential services, retail products and services)
    • 6%: Real estate and automotive

ECONOMIC IMPACT OF FRANCHISES

  • 781,794: the number of franchise establishments in 2015
  • +5.4%: predicted growth in franchise economic output for 2015
  • $889 billion: estimated economic output for franchises this year
  • +5.1%: percent by which GDP of the franchise sector will grow (the economy as a whole is predicted to grow by +4.9%)
  • 3.0%: the percent of the economy that comes from the franchise industry

FRANCHISING OPPORTUNITIES

  • 8 minutes: A new franchise business opens every eight minutes every business day
  • 1 out of 12: of every businesses in the U.S. are franchise businesses
  • $250,000: average initial franchise investment (excluding real estate)
  • 10 years: the average length of a franchise contract
  • McDonald's: the top franchise company
  • 50%: of all retail sales in the U.S. come from the franchise industry

At their core, all franchises are local businesses -- and, therefore, need a comprehensive local online marketing strategy to grow. While franchisees must work within their franchisor's guidelines, there are still many local online marketing activities that franchisees can use to reach the local community.

If you are interested in learning more, please email us at [email protected] or call us at (646) 545-3400.

The post Franchise Facts appeared first on LocalVox.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

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This page is an archive of entries from May 2015 listed from newest to oldest.

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