To break down a large goal into manageable tasks is necessary to be able to confidently complete any project. It is no different for finding a franchise business that meets your goals. We've broken down the process of buying a franchise into 3 simple steps: Exploration, Evaluation and Execution. This is our proven, E3 Process.
These steps can further be divided into sub parts. The following breakdown shows the typical path toward franchise ownership.
Exploration: Explore Your Goals
Analyze Lifestyle Needs
Analyze Business Goals
Analyze current financial position and future goals
Help Determine Type of Business
Evaluation: Evaluate Your Options
Research Applicable Franchises
Obtain Franchise Packet and FDD
Speak in-depth with Franchisors
Interview Existing Franchisees
Second Interview with Franchise
Consult with Attorney and Accountant
Visit Franchise Headquarters
Execution: Execute Your Plan
Enter Into A Franchise Agreement
Obtain Real Estate
Franchise Initial Training
Complete Construction
In-Store Training
Open For Business
On-Going Support
We've developed our proven E3 process of franchise due diligence to simplify and expedite the entire process. Contact one of our FranFinders expert Franchise Consultants today for your free franchise consultation.
Wednesday, May 25, 2011
Wednesday, May 18, 2011
What a Franchise Looks Like
Being able to quickly identify the type of franchise business that meets your interests and objectives will save you time and money not to mention headaches. By understanding the basic franchise characteristics you will be able to make better choices.
Franchises types fall into five basic categories. Understanding what is involved with each category will help you target the type of business that appeals to your needs. Below are listed the categories with their attributes.
Low initial investment
No Inventory
No Receivables
No/Little equipment needed
No/Or Few employees
High income potential
Good working hours/Possibly part-time
Direct Marketing of your Services Necessary
9-5/Business hours
No consumers
Sales related
Face to Face
Professional experience needed
High Income Potential
Management/Consulting experience
Direct Marketing of your Services Necessary
Lower Education Requirements
Craftsmanship Techniques and Training
Manual or Hands On Work
Maintenance Industry or Focused
Management of Unskilled/Low wage employees
Lower initial investment
Strong Marketing Programs Incorporated
Moderate to High Income Potential
Investment Return Major Characteristic
Management of Few Unskilled/Low wage Employees
Moderate investment Moderate to Good Income
No need to be there/Part-time
Multiple Unit Potential
Continues Working Current Job/Running Current Business
Strong Marketing Programs Incorporated
Brand name recognition
7 days a week/Long hours
Manage unskilled/Low wage employees/High turnover
Cash business
High initial investment
Building/Lease
Equipment/Fixtures
High ongoing overhead/Operating costs
Long start up process/Build out
Inventory/Spoilage
No selling/Open door customers come to you
Moderate/Good Income
Now that you know the basic categories and their main characteristics, you can make a better decision as to which franchise is best for you.
When conducting your franchise due diligence, keep in mind the free services of FranFinders expert franchise consultants.
Franchises types fall into five basic categories. Understanding what is involved with each category will help you target the type of business that appeals to your needs. Below are listed the categories with their attributes.
Home Based
Low overheadLow initial investment
No Inventory
No Receivables
No/Little equipment needed
No/Or Few employees
High income potential
Good working hours/Possibly part-time
Direct Marketing of your Services Necessary
Business to Business
Do business with other businesses9-5/Business hours
No consumers
Sales related
Face to Face
Professional experience needed
High Income Potential
Management/Consulting experience
Direct Marketing of your Services Necessary
Service
Skilled to Non Skilled/Blue collarLower Education Requirements
Craftsmanship Techniques and Training
Manual or Hands On Work
Maintenance Industry or Focused
Management of Unskilled/Low wage employees
Lower initial investment
Strong Marketing Programs Incorporated
Moderate to High Income Potential
Passive/Absentee
Simple Business ModelsInvestment Return Major Characteristic
Management of Few Unskilled/Low wage Employees
Moderate investment Moderate to Good Income
No need to be there/Part-time
Multiple Unit Potential
Continues Working Current Job/Running Current Business
Strong Marketing Programs Incorporated
Retail/Food
Looking for latest trends/Fad businessesBrand name recognition
7 days a week/Long hours
Manage unskilled/Low wage employees/High turnover
Cash business
High initial investment
Building/Lease
Equipment/Fixtures
High ongoing overhead/Operating costs
Long start up process/Build out
Inventory/Spoilage
No selling/Open door customers come to you
Moderate/Good Income
Now that you know the basic categories and their main characteristics, you can make a better decision as to which franchise is best for you.
When conducting your franchise due diligence, keep in mind the free services of FranFinders expert franchise consultants.
Wednesday, May 11, 2011
Due Diligence for Franchise Research
The entire process of franchise due diligence, for both a Franchisor and a Franchise Candidate, should be about determining whether there is unified thinking. The best advice is to step back at the end of your due diligence process and ask yourself the following question: Did the process help both parties to determine if they have unified thinking about the franchise business at hand? If the answer is not yes, then you've either got more work to do, or something with the system is not right, and you should examine alternatives.
Franchising is about finding the right strategic-partnerships to allow both parties to prosper at a higher level together than they would if they were not to enter into an agreement to do business together.
First of all, you must be comfortable with the Franchising concept itself. The business of the Franchisor is not Franchising. Their business is fast food, or muffler parts, or telecom consulting. Franchising is their strategy to execute that business with optimum results.
Franchising is the Franchisor's strategy to penetrate and dominate a marketplace - simultaneously. You've got to be comfortable with the Franchisor's strategies to do just that. If those strategies make sense to you, it can be a great ride in achieving success together. It can be a great ride in building a brand that increases in value as time marches on. Franchising is also the Franchisor's strategy of pooling resources. Those resources include the resources of the Franchisor, as well as those of the individuals that join the system as Franchisees including their ideas, talents, motivations, financial and management resources.
If you are comfortable with these basic concepts of Franchising, you should then assess your needs, wants and desires to make sure that they can be met with a successful Franchise in the system. You should also bring to the surface all of your fears, uncertainties, and doubts to determine if you feel you can help solve them with the business of the Franchisor, and the future you can create for yourself with that business. The worst thing you can do is leave them buried.
Then there are the basic pragmatic questions. Will the Operating Systems of the Franchisor help you to deliver the business products and services more efficiently, and will they help you avoid re-creating a whole slew of wheels? Will the Support Systems help you to deliver the products and services better and better over time? Will the Brand continue to increase in value for your benefit?
Finally, can you see yourself reaching your goals, dreams and objectives by operating a successful business in the Franchisor's system? Will the Franchise help you to achieve those goals and dreams?
If the Franchisor's strategies make sense to you, and you can see yourself achieving your goals and dreams through the Franchise and its systems, then you have unified thinking - and the sky can be your only limit
When conducting your franchise due diligence, keep in mind the free services of FranFinders expert franchise consultants
Franchising is about finding the right strategic-partnerships to allow both parties to prosper at a higher level together than they would if they were not to enter into an agreement to do business together.
First of all, you must be comfortable with the Franchising concept itself. The business of the Franchisor is not Franchising. Their business is fast food, or muffler parts, or telecom consulting. Franchising is their strategy to execute that business with optimum results.
Franchising is the Franchisor's strategy to penetrate and dominate a marketplace - simultaneously. You've got to be comfortable with the Franchisor's strategies to do just that. If those strategies make sense to you, it can be a great ride in achieving success together. It can be a great ride in building a brand that increases in value as time marches on. Franchising is also the Franchisor's strategy of pooling resources. Those resources include the resources of the Franchisor, as well as those of the individuals that join the system as Franchisees including their ideas, talents, motivations, financial and management resources.
If you are comfortable with these basic concepts of Franchising, you should then assess your needs, wants and desires to make sure that they can be met with a successful Franchise in the system. You should also bring to the surface all of your fears, uncertainties, and doubts to determine if you feel you can help solve them with the business of the Franchisor, and the future you can create for yourself with that business. The worst thing you can do is leave them buried.
Then there are the basic pragmatic questions. Will the Operating Systems of the Franchisor help you to deliver the business products and services more efficiently, and will they help you avoid re-creating a whole slew of wheels? Will the Support Systems help you to deliver the products and services better and better over time? Will the Brand continue to increase in value for your benefit?
Finally, can you see yourself reaching your goals, dreams and objectives by operating a successful business in the Franchisor's system? Will the Franchise help you to achieve those goals and dreams?
If the Franchisor's strategies make sense to you, and you can see yourself achieving your goals and dreams through the Franchise and its systems, then you have unified thinking - and the sky can be your only limit
When conducting your franchise due diligence, keep in mind the free services of FranFinders expert franchise consultants
Wednesday, May 4, 2011
Just what is the FDD?
Franchise Disclosure Document (FDD), formerly called the Uniform Federal Offering Circular, (UFOC) provides prospective franchise investors with information about a prospective franchise. Company history, background information, risk factors and financial statements are just a few of the items covered.
To protect and inform the investor, the Federal Trade Commission (FTC) determined that a standardized disclosure must be in place for companies to offer their businesses as a franchise. Because the format is standardized, it makes for easy side-by-side comparisons between companies.
The FDD is provided to potential investors of franchises. Which means that this document is usually given to prospective investors who have made efforts to qualify for any particular franchise. Usually a dialog has been established between the investor and the franchisor before the FDD is requested.
Regarding the format of the FDD. It consists of cover pages, table of contents, main body and exhibits.
The cover pages are straight-forward. They contain the name, address, contact information and basic business information. It also stresses how the FDD should be used and where to go for additional help. There is also a state cover page which informs the investor that there may be state franchise laws. Additionally there is a paragraph on Risk Factors. This area points out potential risks inherent in the particular investment.
The table of contents simply list out the items that make of the body and exhibits of the FDD.
The main portion of the FDD is comprised of twenty-three items.
Item 1: The Franchisor and any Parents, Predecessors and Affiliates
Item 2: Business Experience
Item 3: Litigation
Item 4: Bankruptcy
Item 5: Initial Franchise Fee
Item 6: Other Fees
Item 7: Estimated Initial Investment
Item 8: Restrictions on Sources of Products and Services
Item 9: Franchisee’s Obligations
Item 10: Financing
Item 11: Franchisor’s Assistance, Advertising, Computer Systems and Training
Item 12: Territory
Item 13: Trademarks
Item 14: Patents, Copyrights and Proprietary Information
Item 15: Obligation to Participate in the Actual Operation of the Franchise Business
Item 16: Restrictions on What the Franchisee May Sell
Item 17: Renewal, Termination, Transfer and Dispute Resolution
Item 18: Public Figures
Item 19: Financial Performance Representations
Item 20: Outlets and Franchisee Information
Item 21: Financial Statements
Item 22: Contracts
Item 23: Receipts
In addition, there may be a number of Exhibits. These may include:
List of State Agencies/Agents for Service of Process
Franchise Agreement with Exhibits
Financial Statements
Lease
Collateral Assignment of Lease
Operations Manual
List of Franchisees, Current and Former
Release
Assignment of Franchise Agreement
State Addendums
Spousal/Partner Consent
To be able to invest in any franchise business, you will be required to have received the FDD. By familiarizing yourself with the format, you will have a better understanding of the franchise purchase process.
To assist you with the FDD, contact a franchise consultant.
To protect and inform the investor, the Federal Trade Commission (FTC) determined that a standardized disclosure must be in place for companies to offer their businesses as a franchise. Because the format is standardized, it makes for easy side-by-side comparisons between companies.
The FDD is provided to potential investors of franchises. Which means that this document is usually given to prospective investors who have made efforts to qualify for any particular franchise. Usually a dialog has been established between the investor and the franchisor before the FDD is requested.
Regarding the format of the FDD. It consists of cover pages, table of contents, main body and exhibits.
The cover pages are straight-forward. They contain the name, address, contact information and basic business information. It also stresses how the FDD should be used and where to go for additional help. There is also a state cover page which informs the investor that there may be state franchise laws. Additionally there is a paragraph on Risk Factors. This area points out potential risks inherent in the particular investment.
The table of contents simply list out the items that make of the body and exhibits of the FDD.
The main portion of the FDD is comprised of twenty-three items.
Item 1: The Franchisor and any Parents, Predecessors and Affiliates
Item 2: Business Experience
Item 3: Litigation
Item 4: Bankruptcy
Item 5: Initial Franchise Fee
Item 6: Other Fees
Item 7: Estimated Initial Investment
Item 8: Restrictions on Sources of Products and Services
Item 9: Franchisee’s Obligations
Item 10: Financing
Item 11: Franchisor’s Assistance, Advertising, Computer Systems and Training
Item 12: Territory
Item 13: Trademarks
Item 14: Patents, Copyrights and Proprietary Information
Item 15: Obligation to Participate in the Actual Operation of the Franchise Business
Item 16: Restrictions on What the Franchisee May Sell
Item 17: Renewal, Termination, Transfer and Dispute Resolution
Item 18: Public Figures
Item 19: Financial Performance Representations
Item 20: Outlets and Franchisee Information
Item 21: Financial Statements
Item 22: Contracts
Item 23: Receipts
In addition, there may be a number of Exhibits. These may include:
List of State Agencies/Agents for Service of Process
Franchise Agreement with Exhibits
Financial Statements
Lease
Collateral Assignment of Lease
Operations Manual
List of Franchisees, Current and Former
Release
Assignment of Franchise Agreement
State Addendums
Spousal/Partner Consent
To be able to invest in any franchise business, you will be required to have received the FDD. By familiarizing yourself with the format, you will have a better understanding of the franchise purchase process.
To assist you with the FDD, contact a franchise consultant.
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