Download - Considering a Franchise
Considering a Franchise Interested in a Franchise?
Consider a franchise Finding a franchised business Check out the
franchise opportunity Evaluate disclosure and other legal
requirements Is a franchised business for you? Area franchise
Single-unit Master Advantages of Franchising
Enables you to compete through the use of a well-known trademark or
trade name Franchisor may provide you with assistance in such areas
as site selection, equipment purchasing, national advertising,
bookkeeping, the acquisition of supplies and materials, business
counseling and employee training Reduced risk of failure May be
able to take advantage of large-scale, centralized buying May have
access to special financing and credit arrangements The opportunity
to acquire a proven system that has already been developed, tested
and refined Disadvantages of Franchising
The high degree of control which franchisors exercise over their
franchisees Contractually required to report regularly to the
franchisor and subject to frequent inspection and constant
supervision The cost of the services provided to you by the
franchisor is based on your total sales revenue, not your
profitability Franchisor may add a mark-up to the supplies and
equipment you are required to buy from them, thereby increasing
your operating costs Disadvantages of Franchising
Must pay the franchisor an initial franchise fee as well as
periodic royalty payments and advertising contributions The
benefits available through franchising may not always materialize
Termination policies of many franchisors give franchisees little or
no security in many cases Franchise Selection Open WWW.CFA.CA
Select a franchise to purchase (Value 1) How much is the Franchise
Fee? (Value 1) How much capital is required to open the Franchise?
(Value 1) Why is the Franchise a good fit for you? (Value 2)
Canadian Franchise Association Members
Types of Franchises Product Distribution Arrangements Business
Format
Single-unit franchise Area franchise Master franchise Business
Format Franchises Top Ten Franchises in 2015 The results of
Entrepreneur's 36th annual Franchise 500 reveal that franchises of
all stripes are continuing to rapidly expand, with these top 10
franchises leading the pack. Here, we highlight their strategies
for success and goals for the upcoming year. The Top 10 Franchise
for 2015 Hampton Hotels
2,000 hotels in 16 Countries It's aiming for 400 hotels over the
next few years in China. Culture may not be the first thing you
consider when choosing a hotel. But at Hampton Hotels, a culture of
hospitality, aka Hamptonality, The Top 10 Franchise for 2015 2.
Anytime Fitness 2 Million members
3,000 Locations in 50 states and 20 counties. 2014 revenues of
$900Million The Top 10 Franchise for 2015 3. Subway
42, 920 Locations in 107 Countries Moving into non-traditional
locations such as hospitals New $6.00 menu The Top 10 Franchise for
2015 4. Jack in the Box
80% of their 2,250 locations are franchisee owned Menu features
tacos to egg rolls 2014 saw a new breakfast menu launch The Top 10
Franchise for 2015 5 . SuperCuts 2,500 Locations
most of the new franchisees dont have salon backgrounds but are
professionals in the corporate world who were attracted to
Supercuts because of its strong fundamentals The Top 10 Franchise
for 2015 6. Jimmy Johns gourmet Sandwiches
2,100 Locations Its 8-inch sandwiches are made to order in just
seconds. But most impressiveis that 80 percent ofthe companys
growth is coming from existing franchisees who continue to invest.
The Top 10 Franchise for 2015 7. ServPro 1,700 Franchise
Units
Here to Help Connection, a website that collects real-time data
from DryBook to let homeowners know the projected time for their
restoration. The Top 10 Franchise for 2015 8. Dennys 1,710
Locations
At a new upscale location in New Yorks Financial District, the
first in Manhattan, it offered the $300 Grand Cru Slam: Grand Slam
breakfast for two served with a bottle of Dom Prignon. The Top 10
Franchise for 2015 9. Pizza Hut 15% of US Pizza Market
Pizza Hut also launched a line of Skinny Slices, each under 250
calories. The Top 10 Franchise for 2015 10. 7-Eleven 54,500
Locations world wide
In 2014, 330 units opened their doors in the U.S. and Canada, and a
similar number will open this year. Articles in a Typical Franchise
Agreement
The full initial costs and what they cover Use of the franchisors
trademarks by the franchisee Licensing fees Land purchase or lease
requirements Building construction or renovation requirements
Equipment needs Initial training provided Starting inventory
requirements Promotional fees or allowances Use of operations
manual Royalties payable Articles in a Typical Franchise
Agreement
(Continued) Other payments that must be made to the franchisor
Ongoing training requirements Cooperative advertising fees
Insurance requirements Interest charges on financing Requirements
regarding purchasing supplies from the franchisor and prices
Restrictions that apply to competition with other franchisees Terms
covering termination, renewal rights, sale of the franchise and
similar topics A Sampling of Canadian Franchisors
Boston Pizza $45,0007% % $ ,000 Dollar Rent-a-Car $5-100,0008%--
$60-250,000 Great Canadian Dollar Store $15,0004%--$100,000 Molly
Maid $14,0006%--$14,000 plus $4,000 W.C. Dairy Queen Canada
$35,0004%--$450-1,200,000 We Care Home Health
Services251$40,0005%2%$100,000 McDonalds Restaurants of Canada $45,
%--$ ,000 (including rent, service fees and advertising) Midas
Muffler $25,0005%5%$225,000 Dominos Pizza $25, %4%$150,000 Second
Cup Coffee Co $25,0009%2%$ ,000 Tim Hortons $50,0003%--$ ,000
Shred-It $55,0005%1.5%$350,000 NumberNumber ofApproximate of
OwnedFranchiseesInvestmentUnits/DealersInitial
FeeRoyaltyAdvertisingRequired Source: Adapted from The 2004
Franchise Annual, Info Franchise News Inc., 2004 What Does It Cost
to Open a Franchise? Joeys Only Seafood Restaurant
Franchise fee Opening promotion fee Leasehold improvements
Smallwares Furniture, fixtures and kitchen equipment Miscellaneous
Food and supplies TJ Foods opening supplies Training and
pre-opening expenses Deposits Total Estimated Cost to Open $25,000
$5,000 $90 - $130,000 $9,000 $105 - $120,000 $6,000 $11,000 $4 -
$10,000 $277,000 - $338,000 Future Trends in Franchising
Increasing emphasis on senior care Child care and education
Technical support Spa Property Management Fitness Restaurants