Quality of Life
Quality of life is what owning your own business is really all about.
Greater Freedoms
Being your own boss
Earning what your worth
Security
No more downsizing, etc..
With franchising you’re in business for yourself but not by yourself. The more successful you are, the more successful the franchisor is. That is a powerful enticement for the franchisor to help you succeed.
Lower within this blog you’ll find there’s “three levels of franchising” and 100’s of different franchise opportunities to choose from. Find professional, experienced and knowledgeable help / advice / guidance is very important.
Take the time to educate yourself PRIOR to spending your life's savings on any business venture. Spending the time to acquire knowledge and evaluating an opportunity could save you years of aggravation.
Please allow our team of experts help you gain greater insight before you purchased. Contact us with your questions at: MasterFranchising.com
Why a Franchise
Why a Franchise?
Franchising provides you with proven procedures and systems that work. The S.Y.S.T.E.M., as in "Save Your Self Time, Energy, and Money" provides you with the tools to be more successful. Franchisors can only be successful if their Franchisees are successful. This makes for an important win-win relationship that is unique in the business world.
• In his best-selling book, The E-Myth Revisited, Michael Gerber writes, "over the course of one year, franchises have reported a success rate of 95% in contrast to the over 50% failure rate of new non-franchised businesses. Where 80% of all businesses fail in the first five years, 75% of all franchises succeed!"
• In a study by Arthur Anderson & Company of 366 franchise companies, nearly 97% were still in business after 5 years.
• A study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of the were still open for business.
The International Franchise Association recently reported that franchising is responsible for 760,000 businesses, 18 million jobs, 14 percent of the private sector employment, and over $500 billion in payroll!
They also reported:
• 93% of the franchisees say that a franchise gives them an advantage.
• 88% recommend a franchise over a non-franchised business.
• 83% are happy with their franchise.
These facts speak for themselves but to learn more please visit www.FranchisesForSale.com to review a comprehensive library of industry reports.
Franchising provides you with proven procedures and systems that work. The S.Y.S.T.E.M., as in "Save Your Self Time, Energy, and Money" provides you with the tools to be more successful. Franchisors can only be successful if their Franchisees are successful. This makes for an important win-win relationship that is unique in the business world.
• In his best-selling book, The E-Myth Revisited, Michael Gerber writes, "over the course of one year, franchises have reported a success rate of 95% in contrast to the over 50% failure rate of new non-franchised businesses. Where 80% of all businesses fail in the first five years, 75% of all franchises succeed!"
• In a study by Arthur Anderson & Company of 366 franchise companies, nearly 97% were still in business after 5 years.
• A study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of the were still open for business.
The International Franchise Association recently reported that franchising is responsible for 760,000 businesses, 18 million jobs, 14 percent of the private sector employment, and over $500 billion in payroll!
They also reported:
• 93% of the franchisees say that a franchise gives them an advantage.
• 88% recommend a franchise over a non-franchised business.
• 83% are happy with their franchise.
These facts speak for themselves but to learn more please visit www.FranchisesForSale.com to review a comprehensive library of industry reports.
Levels of Franchising
Three Levels of Franchising
Did you know that there are different types of Franchise Arrangements to consider?
Researching the right level of franchising to meet your needs is as important as researching the right franchise. Below are the three different levels of franchising which include information on the territory specifics, the required level of participations and the capital requirements. It is best to consider all aspects of each level before investing in any franchise concept.
1). Single-unit Franchises
This Franchisee has the right to operate one franchise unit. Most Franchisees enter the world of franchising by owning an individual unit. It is a great way to get in and understand the system before taking on additional units.
Territory: The Franchisee usually has an exclusive territory to operate within. If it is a retail store, the area of exclusivity may be a one, two or three mile radius around the store. With Tech Hero the territory is defined by specific ZIP codes.
Level of participation: The Franchisee is intimately involved with almost every aspect of operations at this level. Even if it is a semi-absentee owned business, the Franchisee will want to be present at the business and be as hands-on as possible.
Typical liquid capital required: $25,000 to $50,000 initial out-of-pocket investment required on a total investment of $50,000 to $100,000.
2). Multi-unit Franchisees
This Franchisee acquires more than one unit of the franchise, usually at reduced franchise fees. In theory the risk is lower because the Franchisee can take advantage of the economies-of-scale by spreading costs across multi-units, causing each location to be more successful.
Territory: There is usually no exclusive territory where the franchises must be set up. The Franchisee may have one unit in one part of town with a surrounding radius of exclusivity, and another unit in another part of town 15 miles away or even in another county with its exclusive radius of operation.
Level of participation: The Franchisee is less involved with the daily operations of each unit, but will be managing multiple stores and will need to have some level of supervision in each unit. If many units are opened, a general manager and additional administrative and training staff may be needed. The Franchisee is more of a general manager when many units are involved.
Typical liquid capital required: $70,000 to $100,000 initial out-of-pocket capital is required to take care of most of the initial franchise fees. The rest of the investment is usually financed when each unit is opened.
3). Master Franchise and the Area Representative Agreement
A Master Franchisee and/or Area Representative Agreement has the developmental rights to a specific metro area. The Master usually receives a part of the royalties and franchise fees paid by each Franchisee within that area. The Master, in essence, becomes somewhat of a .sub-franchisor. but with all the benefits and experience the Franchise Company has to offer. The Master Franchisee will usually open and operate at least one showcase location unit for income as well as a training center. Master Franchise licensing agreements are rare; however when they are available they usually sell quickly. These agreements offer the Franchisees greater flexibility and benefits at this level.
Territory: This is usually a large metropolitan area, an entire state. It is an exclusive area right and will remain exclusive as long as the Master Franchisee meets the development schedule within the territory.
Level of participation: The Master Franchisee will usually operate one unit using a manger while devoting a greater proportion of their time developing and assisting other Franchisees within their market area. Very rarely is a Master Franchisee "hands on" in operating units. They tend to spend more of their time operating as a business consultant or coach to their Franchisees to help them become successful.
Typical liquid capital required: $70,000 to $700,000 is needed to acquire the territory and for initial liquid capital to start marketing the area. Additional funding may be needed to open your showcase unit.
What is this Concept?
Imagine sharing in the royalty income generated by all of the Subway Sandwiches' or Domino's Pizza's operating within your city. A Master Franchisee shares in the income generated from the units operating within his/her territory.
Areas Available
To see if you qualify and/or to learn more about this unique investment opportunity you can contact us here: MasterFranchising.com
To see hundreds of franchise for sale opportunities please visit: www.FranchisesForSale.com
Did you know that there are different types of Franchise Arrangements to consider?
Researching the right level of franchising to meet your needs is as important as researching the right franchise. Below are the three different levels of franchising which include information on the territory specifics, the required level of participations and the capital requirements. It is best to consider all aspects of each level before investing in any franchise concept.
1). Single-unit Franchises
This Franchisee has the right to operate one franchise unit. Most Franchisees enter the world of franchising by owning an individual unit. It is a great way to get in and understand the system before taking on additional units.
Territory: The Franchisee usually has an exclusive territory to operate within. If it is a retail store, the area of exclusivity may be a one, two or three mile radius around the store. With Tech Hero the territory is defined by specific ZIP codes.
Level of participation: The Franchisee is intimately involved with almost every aspect of operations at this level. Even if it is a semi-absentee owned business, the Franchisee will want to be present at the business and be as hands-on as possible.
Typical liquid capital required: $25,000 to $50,000 initial out-of-pocket investment required on a total investment of $50,000 to $100,000.
2). Multi-unit Franchisees
This Franchisee acquires more than one unit of the franchise, usually at reduced franchise fees. In theory the risk is lower because the Franchisee can take advantage of the economies-of-scale by spreading costs across multi-units, causing each location to be more successful.
Territory: There is usually no exclusive territory where the franchises must be set up. The Franchisee may have one unit in one part of town with a surrounding radius of exclusivity, and another unit in another part of town 15 miles away or even in another county with its exclusive radius of operation.
Level of participation: The Franchisee is less involved with the daily operations of each unit, but will be managing multiple stores and will need to have some level of supervision in each unit. If many units are opened, a general manager and additional administrative and training staff may be needed. The Franchisee is more of a general manager when many units are involved.
Typical liquid capital required: $70,000 to $100,000 initial out-of-pocket capital is required to take care of most of the initial franchise fees. The rest of the investment is usually financed when each unit is opened.
3). Master Franchise and the Area Representative Agreement
A Master Franchisee and/or Area Representative Agreement has the developmental rights to a specific metro area. The Master usually receives a part of the royalties and franchise fees paid by each Franchisee within that area. The Master, in essence, becomes somewhat of a .sub-franchisor. but with all the benefits and experience the Franchise Company has to offer. The Master Franchisee will usually open and operate at least one showcase location unit for income as well as a training center. Master Franchise licensing agreements are rare; however when they are available they usually sell quickly. These agreements offer the Franchisees greater flexibility and benefits at this level.
Territory: This is usually a large metropolitan area, an entire state. It is an exclusive area right and will remain exclusive as long as the Master Franchisee meets the development schedule within the territory.
Level of participation: The Master Franchisee will usually operate one unit using a manger while devoting a greater proportion of their time developing and assisting other Franchisees within their market area. Very rarely is a Master Franchisee "hands on" in operating units. They tend to spend more of their time operating as a business consultant or coach to their Franchisees to help them become successful.
Typical liquid capital required: $70,000 to $700,000 is needed to acquire the territory and for initial liquid capital to start marketing the area. Additional funding may be needed to open your showcase unit.
What is this Concept?
Imagine sharing in the royalty income generated by all of the Subway Sandwiches' or Domino's Pizza's operating within your city. A Master Franchisee shares in the income generated from the units operating within his/her territory.
Areas Available
To see if you qualify and/or to learn more about this unique investment opportunity you can contact us here: MasterFranchising.com
To see hundreds of franchise for sale opportunities please visit: www.FranchisesForSale.com
Evaluation and Qualifying
Steps to Qualifying and Evaluating
1. Exploratory Meeting...Initial meeting to get to know one another
· Overview of how the franchise agreement process works
· Review key points of the franchise agreement
· Complete Qualification Questionnaire
· Review the advantages of franchising
· Industry overview
· Franchise support and systems
· Receive UFOC, franchise agreement and candidate evaluation
· After Step 1: (candidate)
· Review UFOC, Agreement & Other Materials
· Formulate Questions
· Fill Out Qualification Questionnaire
2. Franchise System Verification...Understand the franchise system and agreement
· Answer questions about franchise agreement of UFOC
· Review Qualification Questionnaire
· Review timeline process
· Introduce support team (Generally by Conference Call with AR, VP and Candidate)
· After Step 2: (candidate)
· Formulate Additional Questions
· Complete Short Business Plan
· Review Documents with Professional Advisors (If Necessary)
· Reserve Time for Location Visits
· Submit for funding approval
3. Understanding of Support...Understand the franchise support system
· Review Operational Manuals with Area Representative
· Review additional questions
· Visit operation and/or office (Discovery Day)
· Review terms of agreement
· Review business and marketing plan
· After Step 3: (candidate)
· Formulate Questions
· Finalize Review of Documents with Professional Advisors (If Necessary)
· Review Business Plan, Agreement Terms
· Review Potential Start Dates & Time Frames
4. Contract Signing...Receive final approval and award franchise agreement
· Review any outstanding questions
· Upon approval of all parties, execute franchise agreement
· After Step 4: (candidate)
· Sign franchise agreement, deposit franchise fee
· Begin Working with Territory Area Representative / Begin Marketing Plan
· Work Through Financing Arrangements
· Set Date for Training
1. Exploratory Meeting...Initial meeting to get to know one another
· Overview of how the franchise agreement process works
· Review key points of the franchise agreement
· Complete Qualification Questionnaire
· Review the advantages of franchising
· Industry overview
· Franchise support and systems
· Receive UFOC, franchise agreement and candidate evaluation
· After Step 1: (candidate)
· Review UFOC, Agreement & Other Materials
· Formulate Questions
· Fill Out Qualification Questionnaire
2. Franchise System Verification...Understand the franchise system and agreement
· Answer questions about franchise agreement of UFOC
· Review Qualification Questionnaire
· Review timeline process
· Introduce support team (Generally by Conference Call with AR, VP and Candidate)
· After Step 2: (candidate)
· Formulate Additional Questions
· Complete Short Business Plan
· Review Documents with Professional Advisors (If Necessary)
· Reserve Time for Location Visits
· Submit for funding approval
3. Understanding of Support...Understand the franchise support system
· Review Operational Manuals with Area Representative
· Review additional questions
· Visit operation and/or office (Discovery Day)
· Review terms of agreement
· Review business and marketing plan
· After Step 3: (candidate)
· Formulate Questions
· Finalize Review of Documents with Professional Advisors (If Necessary)
· Review Business Plan, Agreement Terms
· Review Potential Start Dates & Time Frames
4. Contract Signing...Receive final approval and award franchise agreement
· Review any outstanding questions
· Upon approval of all parties, execute franchise agreement
· After Step 4: (candidate)
· Sign franchise agreement, deposit franchise fee
· Begin Working with Territory Area Representative / Begin Marketing Plan
· Work Through Financing Arrangements
· Set Date for Training
Subscribe to:
Posts (Atom)
