be your own boss in 2020 - execunetmedia.execunet.com/m/be-your-own-boss.pdf · be your own boss in...

www.execunet.com/hireyourself/

Be Your Own Boss In 2020:

Find Your Best Franchise

Business Opportunity

Pete Gilfillan

Entrepreneur, Franchise Consultant, International Bestselling author of HIRE YOURSELF, and Proud Corporate Escapee

http://www.execunet.com/hireyourself/

www.execunet.com/hireyourself/ 2

My Story



Why I Wrote HIRE YOURSELF

My Mission: Help executives take control of their destiny, build wealth, and live life on their terms



My Promise To You

To teach you about franchising, answer common questions about franchising, and offer great resources at the end of this webinar



What We Will Cover Today….

▪ What Is Franchising? Why Is Franchise Business Ownership Surging?

▪ What’s Trending In Franchise Businesses?

▪ Is Franchise Ownership Right For Me?

▪ How Do You Find The Right Franchise?

▪ Does Owning A Franchise Mean Making Subs Or Driving Around Spraying Lawns?

▪ How Much Capital Do You Need To Invest In A Franchise? What Are Good Sources Of Capital?

▪ What Are The Investment Levels For A Franchise Business?

▪ Can I Replace My Corporate Income Through Franchising?

▪ What Are The Advantages And Disadvantages Of Franchise Ownership?

▪ Want To Hear About Some ExecuNet Member Franchise Ownership Success Stories?

▪ How Do Learn More About Franchising And Get Some Awesome Resources?



What Is Franchising?

Why Is Franchise Business Ownership Surging?



What is a Franchise?

www.investopedia.com



Franchising is Booming

▪ Franchising is more than Subway, Dunkin’ Donuts and McDonald’s

▪ According to IFA there are over 3,000 franchise companies in 75 different industries - touching almost every aspect of our daily life

▪ Franchise businesses make a significant contribution to the U.S. economy (sales and jobs)



cc: david_shankbone - https://www.flickr.com/photos/27865228@N06

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Franchise Ownership Becomes A Viable Option For Executives…

▪Under-employed consulting and contract work—a new reality

▪Employees now change jobs every four years versus 30-year career

▪More intense age and unemployment discrimination “Control your

own destiny or someone

else will.”

- Jack Welch

% of 50+ Corporate Executives Force Into Retirement

% That Earn The Same or Higher Salary at a New Job



Why More People Are Taking Path Of Franchise Ownership

10

Control their destiny

Create income

Build an asset

Be their own boss

Make a difference

Be engaged

Be rewarded for hard work

Build and lead team

Be happy, satisfied, and proud

Create a family business

More control and ROI on personal capital

Create career and income security Beat ageism



What’s Trending With Franchise Businesses?



Two Franchise Models

12

Service-based (B2C or B2B):

▪ Home Improvement: painting, flooring, closets, garages, window treatments, kitchen, and handyman services

▪ Professional Services: window cleaning, residential/commercial cleaning, restoration, plumbing, lawn maintenance, HVAC, and business coaching

▪ Personal Services: In-home care, senior living location, and estate sales

Facility Based (Strip Mall):

▪ Health and Wellness: fitness, massage, medi-spas, and weight loss

▪ Beauty: haircare, nails, facials, lash extensions, and hair removal

▪ Children: tutoring, pre-schools, martial arts, and sports training



Is Franchise Ownership Right For Me?



Determine What Characteristics Are Important To You

▪ Level of engagement/involvement

▪Desired income/cash-flow

▪Manage and lead employees

▪Growth/scale

▪ Location

▪ Status

▪Comfort level with sales

▪ Family

▪ Schedule

▪Risk tolerance

▪Duration



▪ Sales and business development

▪ Managing and leading people

▪ Ability to follow processes

▪ Satisfy customers

▪ Process change and evolve over time



Do You Have The Five C’s?

Critical Characteristics:

CAPACITY

CHARACTER

CAPITAL

CUSTOMER SATISFACTION

COOPERATION



Do You Have The Traits Of A Successful Business Owner

▪Disciplined

▪Confident

▪Open-minded

▪ Self-starter

▪Competitive

▪Creative

▪Determined

▪Passionate

▪ Strong people skills

▪ Solid work ethic



How Do You Find The Right Franchise?



Finding A Franchise That Fits You

19

1

2

3

5

Know the characteristics of what you are looking for in a business

4

Know what you want to accomplish with the business

Leverage a proven investigation process

Keep an open mind

Have FUN with your investigations

6

Remember, don’t turn your hobby into your business



Finding A Franchise That Fits You

20

Utilize franchise inquiry websites

Example: www.franchisegator.com

Contact franchise companies directly

Example: www.supercuts.com

Leverage franchise consultant (free service)

Example: HIREYOURSELF.com/Gilfillan

Good

Better

Best


http://www.franchisegator.com/


HIRE YOURSELF Investigation Process

CompleteQuestionnaire

Conduct Consultation Call

and Create Model (summary)

Research Franchise Concepts

–Match Model

Characteristics

Introduction To Franchise Companies and Start

Investigations

Provide Weekly Education and

Coaching

Provide Resources

Support Decision Making Process



Things To Consider When Investigating Franchisor?

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1Experience of leadership team

2Launch support and training

3Franchisee satisfaction

4Image and reputation

5Size of franchise system

6Up coming concept or established

7 Culture/feel

8 Marketing model

9 On-going support

10Level assistance with site selection and build out

11Financial strength of franchise company



Four Core Steps : Over Six Week Period

Franchise Investigation Process

23

Determine key characteristics and

what want to accomplish

FranchiseIntroductions

Determine engagement level

and franchise category type

Introduction CallFranchise Disclosure Document

Franchisee Validation

Discovery / Meet Team Day

Other Steps: Marketing Overview, Training Overview and Funding Plan



Does Owning A Franchise Mean Making Subs Or Driving Around Spraying Lawns?



Franchise ownership where you work “ON” the business versus work “IN” the business.

You set the overall direction and make the key decisions while overseeing a manager that manages the business

25

Growing Movement



Levels of Engagement:

Franchisee Engagement

26

Executive Franchisee

Works “ON” the business and scaling it over time

Works “IN” the Business

Artisan FranchiseeSemi-Absentee Franchisee

manager operated/part-time 15-20 hours

week

Full-Time Franchisee

engaged full-time, but not artisan

Area Developer/Multi-Unitmultiple territories/locations in larger geographic area



How Much Capital Do You Need To Invest In A Franchise?

What Are Good Sources Of Capital?



How To Capitalize A Franchise

▪Need minimum liquid capital: $75K - $100K

▪ Liquid capital is cash, stocks, bonds, equity in your home (HEL) and retirement savings (ROBS)

▪ Funding Resources: SBA loans, traditional loans, franchisor financing, outside investors, and family/friends


29

Funding Resources

SBA Loans

Traditional Loans

Franchisor Financing

Home Equity Line (HEL)

Brokerage/

Portfolio Line

Retirement Savings

(ROBS)

Outside Investors

Family and Friends




What Are The Investment Levels For a Franchise Businesses?



Total Investments – Significant Range

▪ Service Based: Minimum $75k+

▪ depends on size and number territories, equipment needs, and working capital

▪ Facility Based: Minimum $200k+

▪ depends on facility size and buildout, equipment, furnishings and working capital

31



(FDD Item 7)

Investment Breakdown

TYPE OF EXPENDITURE AMOUNT

initial Franchise Fee $50,000

Initial Training Program (Fees) 0

Travel and Living Expenses (Training) $1,000 - $3,000

Real Estate/Lease $10,000 - $20,000

Leasehold Improvements $20,000 - $60,000

Insurance $1,000

Equipment $70,000 - $90,000

Pre-Sale Start Up Package $7,000

Inventory Kit $10,000

Utilities Deposits $0 - $1,000

Licenses and Permits $0 - $3,000

Furniture and Fixtures $15,000

Computer System $1,000 - $2,000

Advertising and Marketing $12,000

Shipping $3,000 - $9,000

Installation $4,000

Additional Funds (3 Months) $10,000 - $20,000

TOTAL ESTIMATED INITIAL INVESTMENT $214,000 - $317,000

32All Numbers Provided Fictitious NOT For Investment Decisions



Leverage Financial Resources – To Scale Your Business

33

Location 1

Cash

SBA Loan

Location 2

HEL

ROBS

Location 3

ROBS

Convent Loan

$300,000Total Invest

$210,000

$90,000


$210,000

$90,000


$210,000

$90,000

All Numbers Provided Fictitious NOT For Investment Decisions



Can I Replace My Corporate Income Through Franchising?



The Financial Performance Of The Franchise Business Depends 100% On You…..

Gross Revenue

Net Profits

Net Profit Margin

Total Investment

Annual ROI 30%

18%

$500,000

$90,000

$300,000

All Numbers Provided Fictitious NOT For Investment Decisions



It Takes Time And Scale To Replace A Corporate Income Corporate Executive Salary Franchise Profits and Asset Value

Year 1 $200,000 SalaryUNIT 1

$0 Salary


$50,000

UNIT 2:

$0


$100,000

UNIT 2

$50,000

UNIT 3

$0


$125,000

UNIT 2

$75,000

UNIT 3

$50,000

Year 5 and on $240,000 SalaryUNIT 1

$125,000

UNIT 2

$100,000

UNIT 3

$125,000

5-Year Asset Check: $0 asset value of job$1,000,000+

Potential Asset Value of 3 Franchise Units

36All Numbers Provided Fictitious NOT for investment decisions



What Are The Advantages and Disadvantages of Franchise Ownership?



Saves You The Time

Capital Associated with Developing

Proving Out and Refining Your Own Business Concept/Model

cc: Instant Vantage - https://www.flickr.com/photos/44312356@N04

Franchising = Entrepreneur Lite

38

Business In A Box -Turnkey

Provide Proven System

Improve Success Ratio

Provide Training and On-going

Support

Value of Being Part of Network

Franchisees



Disadvantages of Franchises

Ongoing Royalty Payments

Franchise Company Restrictions Must Follow System

Selecting Wrong Franchise Concept Can Be Painful Long-term Commitments (Agreements)



F alseE videnceA ppearingR eal

Why People Go Through The Investigation Process And Choose Not to Invest

Business ownership isn’t for everyone

It is A LOT of work

FEAR and ANXIETY stops many people from following their dreams

Lack of capital

Still believe a job = income security

Maverick mentality

Family and friends kill person’s dream

Not capable of making A decision



Want To Hear About SomeExecuNet MemberFranchise OwnershipSuccess Stories?



ExecuNet Member Success Stories

Mike Furnisshttps://www.execunet.com/trading-corporate-life-entrepreneurship/

Mike’s story can be found here

https://www.execunet.com/trading-corporate-life-entrepreneurship-3/

Donna’s story can be found hereDonna French

Bill Welshhttps://www.execunet.com/trading-corporate-life-entrepreneurship-4/

Bill’s story can be found here

Keith Evanshttps://www.execunet.com/become-entrepreneur-keeping-corporate-day-job/

Keith’s story can be found here


Jim’s story can be found hereJim Griffin

https://www.execunet.com/quit-corporate-job-never-looked-back/

John’s story can be found hereJohn Weiss


https://www.execunet.com/trading-corporate-life-entrepreneurship/



https://www.execunet.com/become-entrepreneur-keeping-corporate-day-job/


https://www.execunet.com/quit-corporate-job-never-looked-back/


Have More Questions?

REQUEST CONSULTATION CALL

Request a free quick consultation call

Learn if franchise ownership may be right for you

Receive your free copy of the HIRE YOURSELF book

Go toHIREYOURSELF.com/execunetoffer

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In Summary


Thank YouTo connect with Pete Gilfillan for more information, please submit your name and email through the following link:

HIREYOURSELF.com/execunetoffer

[email protected] 855 904-7900


mailto:[email protected]

be your own boss in 2020 - execunetmedia.execunet.com/m/be-your-own-boss.pdf · be your own boss in...

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