YOUR NEXT CAREER MOVE A BUSINESS OF YOUR OWN! PRESENTED BY
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1 YOUR NEXT CAREER MOVE A BUSINESS OF YOUR OWN! PRESENTED BY 1
2 What is Franchising? A marketing method in which the owner of a product or service, known as the franchisor, offers the right to operate and manage his product & service to others, the franchisees, in return for a fee and ongoing royalty payments. Franchisor - Know-How - Support - Trademark Franchisee - Initial Fee - Royalty, - Infrastructure 2
3 How did Franchising Come About? : Martha Matillda Harper Hair Salo s: Rexall Drug Stores, Western Auto, Ben Franklin, Super Value Stores, Oil Companies for Gas Stations s 1960 s: McDonalds, KFC, Holiday Inns, Laundry and Dry Cleaning, Tax Preparation, Travel and Recreation, Quick Printing, etc International Franchise Associations is founded by Bill Rosenberg of Dunkin Donuts FTC adopts rule requiring pre-sale disclosure of information to prospective buyers. 3
4 Entrepreneurship -vs Frantrepreneurship -VS- 4
5 Not Jut Burgers & Fries... More than 75 Sectors of Business Accounting & Tax Automotive Business Services Children s Services Clothing & Shoes Construction Computers/IT Educational Services Employment Services Environmental Services Restaurants Hair salons Home furnishings Hotels/Motels Janitorial Services Laundry/Dry Cleaning Lawn & Garden Maid Services Printing Services Real Estate 5
6 Economic Impact of Franchising One in twelve business is a franchise. 12.5% of Jobs Today are Attributed to Franchising Nearly 50% of all retail sales come through franchising Nearly 86% of all franchises opening in during the past 5 years are still under the same ownership Over 3,200 franchises are sold every week A new franchise is opened every 8 minutes of each business day veteran became franchisees since 2011** Source: U.S. Department of Commerce International Franchise Assoc.** 6
7 7 Benefits of Franchise Ownership Franchisor has a vested interest in your success. Franchisor offers market analysis / competition. Collective buying power / lower operation costs. National advertising strength to build awareness. Training, support programs and personnel. Ongoing research and product development. Build greater value and equity in the business. In business for yourself not by yourself. 7
8 Franchising is NOT... A guarantee of success Like any business it has risks For everyone Willingness to stick to the system A short-term commitment Average contract is 10 years 8
9 Why Veterans Outperform Discipline Perseverance Teamwork Leadership Community According to PWC the average veteran-owned franchise businesses compared very favorably to all veteran owned businesses, generating average gross receipts of $2.1 million compared to $445,487 for all veteran-owned businesses. 9
10 Ecosystem Entrepreneur vs Frantrepreneur Entrepreneurship Frantrepreneurship Organizations Vendors Franchisor Franchisees 10
11 Financial Incentives for Vets VetFran is a voluntary effort of IFA member-companies that is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans. In 2002, the IFA and the U.S. Dept of Veterans Affairs signed an official memorandum to jointly promote the VetFran program. Over 400 franchise companies participate in the program Veteran Owned Franchises and Growing. Taking advantage of the financial incentives veterans had acquired October 2012 VetFran Report Action Item - Write a Letter to Congress The Veterans Business Ownership Act of 2011 A proposal to empower America's military veterans to create businesses and jobs 11
12 Questions to Ask Yourself While Searching for Your Opportunity The first step in finding the perfect franchise is to look within you and not within franchising. With literally thousands of franchise opportunities available, if you try to evaluate them before you evaluate your own wants, needs, and capabilities, your search for the business of your dreams will more than likely become a nightmare. Ask yourself these questions: Why do I want to own my own business? What am I looking for? How much am I willing to invest? Can I build equity in my business? Will owning a business make me happy? 12
13 5 Common Mistakes to Avoid Not reading and understanding the Uniform Franchise Disclosure Document (FDD) and Franchise Agreement. Not contacting current franchisees. Not having enough working capital. Not developing a forecast or business plan. Not developing a marketing strategy. 13
14 Why Work with VFC? l l l l We provide you with free educaoon! We define your qualificaoons! We provide valuable insight on franchise companies! We provide a consulove approach to helping you! 14
15 Retired General Colin Powell An important attribute in successful people is their impatience with negative thinking and negative acting people....those who never succeed themselves are always first to tell you how. 15
16 Thank You! Richard Ashe President, Certified Franchise Advisor Veteran Franchise Centers Houston Growing America With America's Best 16
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