presented by thom crimans president of frannet of mid america ©frannet t h ef r a n c h i s ec o n...

Presented by

Thom Crimans

President of FranNet of Mid America

©FRANNETT H E F R A N C H I S E C O N N E C T I O N

Franchising: A Choice for you?

Who is FranNet?• International Franchise Consulting Firm• 70 Offices North America• Worked with the SBA, SCORE and SBDC

since 1987• Our services are FREE to the buyer

• PS: We are a franchise!

•Indiana University – BS Business•20 years in Franchising •Member International Franchise Association and Franchise Congress•President, Frannet of Mid-America, a franchise•Co-author “Franchising 101”•Rotary International; Rotary Promise Mentor•SCORE volunteer•Society for Human Resource Management

Thom Crimans

A Make vs. Buy Decision• Start from Scratch, you develop your

system by trial and error

• A proven franchise concept has already done that

• You are buying their expertise

Franchise Myths

Franchise Myth #1:“Only fast food and retail”

FACT:

Over 3,000 different franchise companies in more than 80 industries

Franchise Myth #2: “Franchises are expensive”

Total Investment Percent

Under $50k 13%

$50k to $100k 18%

$100k to 250k 28%

Over $250k+ 41%*Franchise Times Magazine Survey, “Franchising

is All Right, Thank You.”

Veteran Incentives

Many Franchise companies WANT veterans!

Franchise Myth #3: “High return requires a high investment”

FACT:

Fastest growing segment in franchising is service businesses which often require less capital investments

Franchise Myth #4: “Industry experience is required”

FACT:

Only 25% of franchisees are in the same industry as they were employed.

What is a Franchise?

What is a franchise – legal definition?Franchisor who licenses the use of

their brand and business systems in return for:

Franchise fee

Royalty Fee

Must comply with FTC franchise rule

Based on FTC definition

What is a franchise – Business Definition

• A strategy for gaining strategic advantage in a market

• Division of labor between franchisor and franchisee

Key to Success• Separate function of owner from function

of business

• Identify your goals – Business model

• Do effective research- Talk to Franchisors

To Learn More• Attend one of our seminars or webinars

on franchising

• Call your Frannet consultant

Franchise Research Process

Talk with Franchisor

Get the FDD

CALL EXISTING FRANCHISEES!

Thom Crimans

Phone: 502-767-8723

email: tcrimans@frannet.com