dfwfranchisenetwork.com Blog

For anyone interested in franchise opportunities, there are several sources of information.
Internet, specific websites, franchise brokers/consultants, business brokers, magazine / newspaper publications, seminars and workshops, to name a few. 

Becoming increasingly popular is the Franchise Expo.  Franchisors are attracted to the
Expo format because they can expose their brand to many people in one or two days.
Furthermore, the ability to visit “in person” or face-to-face is definitely preferable to answering an internet inquiry or speaking to someone by telephone only.  Expo attendees favor the Franchise Expo format because it allows them to explore many franchise opportunities in one place, in a casual and non-pressure atmosphere.  They can ask questions and speak directly to franchise representatives, collecting brochures and materials on those concepts that spark a desire to know more.  

Most Franchise Expos offer educational and informative seminars on the franchise industry.  These seminars are typically presented by industry professionals who are experts in their field, such as CPA’s, tax attorneys, franchise attorneys, SBA lenders, construction companies. 

Franchise specialists educate the audience on the process of exploring franchises, research and due diligence, understanding the Uniform Franchise Offering Circular (UFOC), Franchise Discovery Days, the do’s and don’ts and how to avoid costly mistakes. 

Besides the general franchise industry information, topics covered include funding your acquisition, selecting the proper tax entity when setting up your new business entity, site selection and build out.  Most presenters will also provide beneficial materials in the form of “hand-outs” for interested attendees. 

Some Franchise Expos charge an “entry fee” or small fee to attend.  Others are “no cost”.  Depending on the Expo venue, there may be parking charges or fees.  In addition, attendees are asked to pre-register and/or register at the event.  Since name tags are most often necessary to get into the exhibit hall, pre-registration will speed up the process of getting you in the door.  Otherwise, there will be registration desks at the event where you can obtain your nametag. Headcount or attendance numbers are important for the host venue, to ensure proper staffing for the event, exhibiting franchisors want to know for future reference, and sponsors need to know if the event was worth their participation.  Sponsors are usually financial institutions, franchise attorneys, CPA’s, constructions companies and other companies providing services to new franchisees and/or the franchise industry. 

Especially for anyone who has ever considered franchise ownership, the Franchise Expo is an excellent way to learn some facts you may not know, check out new franchises expanding into your area, and spend a fun couple of hours during your weekend. 

The Franchise Network
Anne Barr
972-786-0017
abarr@franchisenetwork.net
www.franchisenetwork.net

Naturally, most Entrepreneurs seek an opportunity that allows them to build a wonderful enterprise appealing to the masses with the most fabulous “can’t live without it” product or service.

Obviously, this enterprise could be a start-up, existing business or a franchise.  Start-ups are of interest because you can do it “your way” and have that control we all desire. However, the Entrepreneur typically doesn’t have the patience to put all the applications of the idea into action.  As the idea materializes, the details and application steps sometimes get lost in the grandiose plan and future pacing of the Entrepreneur.

Existing business acquisitions can often provide the Entrepreneur with a platform upon which to build his/her empire.  Purchasing a “stream of income” can jumpstart the process and sometimes accelerate the growth curve. Finding the right one can be tedious, time consuming and difficult to negotiate.  The occasional “oh, by the way” surprises can be jolting and cause severe headaches!

Entrepreneurs wish to control their own destiny.  Captain their own ship.  Is this Utopia?

Perhaps, but more accurately the drive to create something that is useful and/or desired by the consumer.  To produce a reasonable and expected ROI and to exceed predicted growth (multiple locations, linear growth, new market channels, diversification of product or service)

The Franchise Model…

Some Entrepreneurs prefer to form their own business model. Others gravitate to a proven concept like the business format franchise model.  Particularly for the entrepreneur who has never owned a business before…..the franchise model provides a stepping stone to achieving the “golden ring”.   Master Franchises are a good example.

Now here’s a REAL entrepreneur’s dream.  Master Franchises have been touted as the “Best Kept Secret in Franchising Today”.

The Master franchise concept allows the Entrepreneur to:

·        Have the largest territory offered by franchisors

·        Create expanded income generation

·        Build equity in the business at a faster pace

·        Act as a consultant to the franchisees in your territory, helping them to succeed

So, why aren’t more franchisors using this concept as a way to expand more expediently?

·        Because the concept is relatively new

·        Because some franchise attorneys do not favor this model

·        Franchisor is not willing to share the fees and royalties

The Business Format Franchise model is more popular than ever.  Considering there are 5,000 franchises spanning approximately 80 industries, it is safe to say the franchise industry is exploding with growth.  Franchise “fever” is definitely prevalent and “catching”. 

Many of my clients are casualties of corporate mergers.  Some find they are overqualified or too old for rehire, especially when corporate America prefers the recent college grad.  Forget about experience and knowledge gained from years of product knowledge, management and leadership……it’s all about money $.

Yes, there are many Entrepreneurs lurking in the carnage of today’s Mergers and Acquisitions battlefields.  So what are these guys and gals doing in their next career path?

You’d be surprised how many are considering business ownership.  It beats the rejection and demoralization of the job hunt for those 45 and older.

Perhaps your next career path is a business format franchise.  Area Development or Master Franchise anyone?

What is it that attracts more and more people to become business owners? What happens to bring that Entrepreneurial spirit to the forefront?

Not only do Entrepreneurs embody the American Dream, they drive our economy and our future.

Today’s corporate mergers create additional opportunities for many to take the “big step” into business ownership.  More and more talented individuals in the 40-60 age group are finding great difficulty in their search to replace the position and income they enjoyed in their previous employment.  What are these “breadwinners” to do when they are too young to retire and many have one or more children in college?  A high percentage will seriously look into business ownership.

As increasing numbers seriously explore business ownership, assuming they are qualified financially, we find the largest roadblock to be….RISK.

R – Research = Reward

I  -  Insecurity with volatile job market

S -  Success is Not Guaranteed

K – Knowledge and Self Confidence to build an asset

Obviously, there are no guarantees.  Of course, running a business takes talent and skill.

Reducing the risk is accomplished by research and due diligence.  As with any major decision in life, an individual will at first emotionally buy the business, then justify with the facts.  The fear factor is rationalized by the confidence a person has in his/her transferable skills and the vision to build something……an asset to pass on to the next generation, put a manager in place and back away when the time is right, or even sell when they choose.

It’s all about timing.  I met many of my clients over a year ago.  Sometimes people will interview for jobs and look into business ownership at the same time.  You can’t give 100% effort by going down two paths at once.  Occasionally, a client will take a position that is less than preferred, because the frustration of the search has taken its toll.  However, when they are downsized AGAIN, they decide the timing is right to end the job insecurity by moving forward into business ownership.  No glass ceilings, no corporate agendas, no corporate politics…..simply more independence and a chance to control their destiny…..a chance to build something by working for “self” rather than someone else.

The American Dream – is it in your future?