YOUR NEXT CAREER MOVE
A BUSINESS OF YOUR OWN!
What is Franchising?
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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.
Franchisee
- Initial Fee - Royalty, - Infrastructure
Franchisor
- Know-How - Support - Trademark
How did Franchising Come About?
• 1881 – 1929: Martha Matillda Harper Hair Salo
• 1902 – 1930’s: Rexall Drug Stores, Western Auto, Ben Franklin, Super Value Stores, Oil Companies for Gas Stations.
• 1950’s – 1960’s: McDonalds, KFC, Holiday Inns,
Laundry and Dry Cleaning, Tax Preparation, Travel and Recreation, Quick Printing, etc.
• 1960 – International Franchise Associations is founded by Bill Rosenberg of Dunkin’ Donuts.
• 1979 – FTC adopts rule requiring pre-sale disclosure of information to prospective buyers.
Not Jut Burgers & Fries...
More than 75 Sectors of Business
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Accounting & Tax
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Automotive
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Business Services
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Children’s Services
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Clothing & Shoes
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Construction
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Computers/IT
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Educational Services
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Employment Services
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Environmental Services
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Restaurants
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Hair salons
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Home furnishings
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Hotels/Motels
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Janitorial Services
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Laundry/Dry Cleaning
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Lawn & Garden
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Maid Services
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Printing Services
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Real Estate
• 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.
4314 veteran became franchisees since 2011**
‣ Source: U.S. Department of Commerce
‣ International Franchise Assoc.**
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.
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
Why Veterans Outperform
Discipline Perseverance Teamwork Leadership CommunityAccording 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.
Ecosystem
Entrepreneur vs Frantrepreneur
Organizations Vendors Franchisor Franchisees Entrepreneurship FrantrepreneurshipFinancial 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.
★ 4300+ Veteran Owned Franchises and Growing. Taking advantage of the financial incentives veterans had acquired 4312 - 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
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:
Questions to Ask Yourself While
Searching for Your Opportunity
• 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?
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.
Why Work with VFC?
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We provide you with free educaOon!
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We define your qualificaOons!
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