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