girlfriends guide webinar - franchising 101 (2)

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Girlfriends Guide to FranchisingFranchising 101 – The

BasicsA webinar presented by Your Franchise is Waiting

+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

+What is Franchising?

+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).

+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

+ 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

+Why do people go into business for themselves?

+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

+Benefits of Franchising

+Road Map vs No Road Map

The path has been set Lost and alone

+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

+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

+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

+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

+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

+ Why You’ll Rock as a Franchise Owner

+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

+Why Use a Franchise Consultant

+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?

+Ask Yourself : If I do nothing, will my situation be better (or worse) a year from now?

Is Now Your Time?

+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

Thank you!Is now your time?

303-449-1050jane@yourfranchiseiswaiting.com

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YourFranchiseisWaiting.comJane Stein, President