rbc panel of experts june 17, 2015
TRANSCRIPT
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RBC Royal Bank Advice Event in Partnership with FranNet
10 Questions to Ask Before Buying a Franchise
June 17, 2015
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Agenda - What we’ll cover today
Franchise “Panel of Experts” introductions:
John Nieuwenburg Moderator W5 Coaching
Shaurya Chhikara Royal Bank of Canada
Richard Sehmer Woodsons Law
Doug Anderson DA Top Talent
Chuck Prenevost FranNet Western Canada
Address the Panel:
“10 Questions to ask Before Buying a Franchise
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22 BC Liquor StoresBC Liquor Stores
44 When Not CoachingWhen Not Coaching
33 Tip Top TailorsTip Top Tailors
Business CoachBusiness Coach
Where asking you better questions, gets you better results!
4 Most Important Things About John Nieuwenburg
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John Nieuwenburg W5 Coaching
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John Nieuwenburg W5 Coaching
www.w5coaching.comwww.w5coaching.comTestimonialsTestimonials
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Shaurya Chhikara RBC Small Business
Insert your Bio details here
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Shaurya Chhikara RBC Small Business
Insert your Bio details here
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Richard J. Sehmer Law Corporation
Who am I? Richard J. Sehmer Law Corporation
• BFA, MA, LLB• Entrepreneur • General business lawyer • Only act for people buying franchises, not franchisors
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Richard J. Sehmer Law Corporation
Initial Legal Thoughts1. Incorporate a Company
• Potential tax benefits • Huge liability benefits
2. Franchise Disclosure Document• Ontario, Manitoba, PEI all require FDD laws. Not in BC. • Therefore we must be extra vigilant about doing our own due diligence by:
• If franchise does business in other provinces, they’ll have an FDD which you should be able to review
• Go through FDD and record ALL start up costs
• Find existing franchisees and pick their brains
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Richard J. Sehmer Law Corporation
3 MAIN CONTRACTS!!• Franchise Agreement –
• What is the Initial Franchise Fee?• What are my royalty obligations to franchisor? Net or Gross?• 6-8% of Gross is standard. Often 1% - 2% advertising royalty.• Any other financial obligations to franchisor? • How long is the Term? Option to renew? Asset Purchase Agreement – • If you’re buying existing franchise. • Look at financials of previous business. Lease or Sublease – • Make sure lease Term lines up with Franchise Term. • What is Minimum Rent and Additional Rent. Option to Renew?• Make your corporation the tenant. • Get all consents early.
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Doug Anderson DA Top Talent
DA Background
• Born in Edmonton and lived all over
• U. Vic. grad where “DA” came to be
• Married to Val for 35 years and have 20 yr old son Dalton
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Doug Anderson DA Top Talent
How do you make your decisions?
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Doug Anderson DA Top Talent
Why do I do what I do?
• Started my own company at 18 to finance University, I love small business
• Spent over 30 years working with small business owners (Apple, Mits)
• >20 years experience in franchising
• Found the two most common problems of business owners, read the E-Myth, and wanted to help other business owners
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Doug Anderson DA Top Talent
Why do people want to work with me?
• Get a different perspective on their business (like a sounding board)
• Strategy, plans, and structure• Learn how to work “on” the business• Knowledge and insights into the good and bad on
franchising• Access 1st Class small business specialists
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About Chuck & FranNet
Reverse Engineer How to Find the Right Franchise
• Franchisee – Franchisor MATCHMAKERS• Understand you & your critical criteria• Define your Ideal Business Model• Match only those franchises that meet your goals• Coach you through our proven research process• 70 Quality Franchisors – Only 2 food concepts• Offer services to our clients at No Cost
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Why Own Your Own Business?
Control Financial Security
No More Layoffs Money
Fulfillment Flexibility Independence
SUCCESS
What Is It For You?
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Defining Your Business Model
Clarify Your Destination• Without clarity, most folks won’t realize their dreams
• Because they don’t know where to start.
• How to approach & research
• Let assumptions & preconceived notions rule
• Decisions making based on facts not emotions
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10 Questions to Ask Before Buying a Franchise
Now over to our Franchise Panel of Experts
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10 Questions to Ask Before Buying a Franchise
1. How do I know where to start my research?
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10 Questions to Ask Before Buying a Franchise
2. What total investment will this franchise require?
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10 Questions to Ask Before Buying a Franchise
3. What is the Franchise Disclosure Document (FDD)
and why is it important?
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10 Questions to Ask Before Buying a Franchise
4. How do I conduct proper research?
Avoiding the Pitfalls
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10 Questions to Ask Before Buying a Franchise
5. What finance options are available through
the Bank?
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10 Questions to Ask Before Buying a Franchise
6. Why should I have a legal review?
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10 Questions to Ask Before Buying a Franchise
7. How much can I afford? Understanding
your Net worth position
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10 Questions to Ask Before Buying a Franchise
8. What will the Bank need should I require financing?
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10 Questions to Ask Before Buying a Franchise
9. How are conflicts resolved between Franchisor &
Franchisees?
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10 Questions to Ask Before Buying a Franchise
10. What support does the Franchisor offer beyond initial training?
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Everyone’s situation is different
Disclosures:
The strategies, advice and technical content in this presentation are provided only for general guidance to benefit our clients. This presentation is not intended to provide specific financial, investment, tax, legal, accounting or other advice for you and should not be relied upon in that regard. Readers should consult their own professional advisor when planning to implement a strategy to ensure that individual circumstances have been considered properly and it is based on the latest available information.
® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered
trademarks of Royal Bank of Canada. © 2011 Royal Bank of Canada.
36398 (11/2011)
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Additional Questions?
• For our “Franchise Panel of Experts”
• In attendance, two FranNet clients who conducted proper research and bought a franchise in 2014
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Thank you from your Hosts
For Further Information:
Chuck Prenevost
FranNet Western Canada
Tel: 604-849-0278
Email: [email protected]
Website: www.frannet.com/chuckprenevost
Shaurya Chhikara, Senior Account Manager
Business/Personal, RBC Royal Bank
Tel: 604-665-0986
Email: [email protected]