1. +
Girlfriends Guide to Franchising
Franchising 101 – The Basics
A webinar presented by Your Franchise is Waiting
2. +
Girlfriends Guide to Franchising
What is franchising
Why people go into business for themselves
Benefits of franchising
Why you’ll rock as a franchisor
Why use a franchise consultant
About Your Franchise is Waiting
4. +
Definition
Franchisor grants to licensee’s (Franchisees) the right to operate their
own business under the Franchisor’s trade mark (s), utilizing their
identified system and method of doing business for a particular period
of time within a particular territory (usually).
5. +
Franchising – What is it really?
Franchising is not a business or industry itself
Franchising is a business strategy – just another business model
Franchising is a growth strategy of the Franchisor to penetrate and
dominate a marketplace using OPM
Efficient distribution system
A method to leverage growth through resources of committed
stakeholders and form strategic partnerships
6. + Elements of a Franchise
Brand – Recognizable (usually trademarked) service marks,
proprietary products or services, information, patents and/or
designs
Operating System – Institutionalized excellent service delivered in a
way that can be done over and over again from unit to unit in a
consistent manner
Support System – Support in areas such as financing, accounting,
training, marketing, technology, operational procedures and more
Fees – Typically an up front franchise fee and ongoing royalties
8. +
Reasons People Choose Business Ownership
Freedom
Control
Remove Threat of Job Loss
Purpose/Passion
Lifestyle
Build an Asset
Work with Family
Leave a Legacy
You Work Hard Anyway
10. +
Road Map vs No Road Map
The path has been set Lost and alone
11. +
Why invest in a Franchise
Reduced risk – proof of success is in place via other zee’s
You don’t have to re-create the wheel
Training & support from the franchisor
Collaboration – franchisee’s share best and worst practices
Systems continually adjusted, changed, & improved
Training systems
Sales & marketing strategies and systems
Manuals & other documentation
State of the art supported technology systems
Development costs – now a shared resource
Vending relationships and buying power
12. +
Fees to Participate in a Franchise System
Franchise Fee
The Franchise Fee is the cost of putting the franchisee into
business “with” the Franchisor
Entry fee to the point of the completion of the initial training
programs
Access to all of the franchisor’s systems
Royalty Fee
The Franchisor’s share of the revenue generated by each franchisee
The oil that makes the engine run
Advertising & Marketing Fee
Used to build brand presence to benefit all members
13. +
Evaluation – Making an Informed Decision
System of discovery – two-way exchange of information
Step-by-step qualification system should be in place
Open & honest exchange of information
30 – 120 days to complete the due diligence process
Should never feel pressure to move too quickly. The information you
need must be accessible – however usually on a schedule set by the
Franchisor
Includes open access to all franchisees in the system
The goal is to feel comfortable that you’ve made an informed decision
about becoming strategic partners
14. +
Steps in the Discovery Process
Introduction to Franchisor (Development Director or could be owner)
Disclosure – FDD (Franchise Disclosure Document)
Introduction to all aspects of the “secret sauce”. Marketing, hiring, real estate
selection, lead generation, the “how we do it” basics. Not the full trade secrets!
Validation – most important step. Take your time, be thorough
Franchise Attorney is hired to review document
Discovery Day ( Meet the Team)
Territory is Awarded (or not)
Agreement is signed – Franchise Fee is paid
15. +
Facing the Fears – Realizing the Dream
Common and expected fears – we all have them
Fear of change, failure, unknown – perfectly natural
Naysayers are everywhere – the ‘fire hose brigade’
Listen to advisors but trust yourself too
There will never be the perfect time but these stars should line up
Finances
Family
Demographics of your territory
You feel ready and excited
17. +
Women are made for business
We value mentors
We know how to multi-task
We’re natural connectors
We can share the credit
We can nurture yet be firm
We are compassionate leaders
19. +
Consultants Can Be Your Guide
Access insider knowledge
Reduce franchise research time
Preparation for franchisor meeting and coaching for validation calls
Better understanding of the terminology & process
Resources and tools at our disposal (demographics, attorneys, lenders)
Our services are offered at no charge to you
You won’t get it cheaper by going direct – why not have an advocate?
20. +
Ask Yourself : If I do nothing, will my
situation be better (or worse) a year from
now?
Is Now Your Time?
21. +
Words of Wisdom
"No one lives long enough to learn everything they
need to learn starting from scratch. To be
successful, we absolutely, positively have to find
people who have already paid the price to learn
the things we need to learn to achieve our goals."
Brian Tracy, Author and Keynote Speaker
22. Thank you!
Is now your time?
303-449-1050
jane@yourfranchiseiswaiting.com
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YourFranchiseisWaiting.com
Jane Stein, President