Franchise Jones

An Introduction to FranchisingPresented by

Stefan G. SilvermanMinneapolis

The Great Recession Impacts Employment:

It’s not about when things will return to normal.

Concern is growing that what we’re experiencing is the new

normal!

“The modern office/factory-model job could be headed for extinction.

Goodbye, permanent employment. Hello, contingent work, contractual employment and "composite" careers.”

- Steve Adams Journalist and Author “Back to Work! Create

New Opportunities in the Wake of Job Loss”

Americans’ job satisfaction falls to record low Economists warn discontent could stifle innovation, hurt U.S. productivity

The Associated Press

WASHINGTON - We can't get no job satisfaction.Even Americans who are lucky enough to have work in this economy are becoming more unhappy with their jobs, according to a new survey that found only 45 percent of Americans are satisfied with their work.

That was the lowest level ever recorded by the Conference Board research group in more than 22 years of studying the issue.

                   

So regardless of where you are in the workforce the choice for a

better future could be to… Start your own business

in 2011.

Unsure about your Future?

Or maybe you’re…• Currently in transition?

• Existing business owner?

• Could use extra income part-time?

• Retired but want a job you control?

• Looking for investment opportunities?

• Helping a son/daughter find direction?

Which Type Are You?

Seminar Outline• What is a franchise and who buys them?

• Franchise vs. new or existing business?

• Do I have what it takes?

• How will I pay for my new franchise?

• Franchise law – what’s to know?

• What business is right for me?

•Top 10 mistakes buyers make

•Q & A

Thinking Small?

Quality Home-Based Businesses Start at Under $10,000 Complete!

•Scalable

•Easy to Learn

•Extra Income Now

•Grow and Sell It for $$$ Later

Who Buys a Franchise? People Like You!

Recent Always Best Senior Care Buyers

Real Estate Appraiser

Franchise Owner – Signs By Tomorrow

VP – Hilton Hotels

Quality Control Manager – Bayer Corporation

Financial Services Rep – Metropolitan Life

Account Manager – Crown Lift Trucks

Sales Engineer – Sprint

.

The Franchise Recipe for Success

Brand Awareness

• Recognized Name

• Provides Better Value

• Better Price/Margins

• Long Term Retention.

Training

• Headquarters Training

• Learn Best Practices

• Duplication is Key

• On-Site Training.

What franchising does best is it helps minimize

that FOUR LETTER WORD…

RISK!!!

Don’t Take My Word For It

A government study found that 91% of franchised businesses were still operating after 7 years!

Compared to just 20% of individual startups.

*Entrepreneur.com

So why go into business in the first place?

Paying for A FranchiseNet Worth & Available Liquid Assets

Possible Sources of Funds

Savings & Investments

Self-Directed Qualified Retirement Plan

Home Equity Loan

Bank Loan or Line of Credit

SBA Loan Guarantees

Family, Friends, Relatives

Private Investors, Venture Capital

Franchisor Financing

Credit Card Financing.

Franchise Points of Law• The FDD or Franchise Disclosure Document must be provided at least 14 calendar days before a franchisee signs a contract.

• Item 19 of the FDD details earnings, costs and other financial performance factors. It MAY contain earnings claims but franchisors are not required to provide them.

• READ THE FDD COVER TO COVER!

• Have a good attorney (and CPA) review the FDD and Franchise Agreement before you sign anything.

How to Pick a Winner!

1. Know yourself first!

2. Franchisor tied to franchisee success.

3. Company owned units for testing.

4. Has a regional growth strategy, not scattered thinly all over the country.

5. Work with a qualified franchise consultant that is or has been a franchise business owner.

Franchise Jones’Top 10 Buyer Mistakes

1. Believing the size of the industry/market assures success.

2. Believing you can resell quickly and profitably.

3. Believing “Bigger is Better”

4. Believing you don’t need to use an Attorney or CPA.

5. Believing it is against the law to make Earnings

Claims.

Franchise Jones’Top 10 Buyer Mistakes

6. Believing getting a loan is a slam dunk.

7. Believing that the first year won’t be slow.

8. Believing that being the boss means working less.

9. Believing that the franchisor will solve all your problems.

10. Believing that family, friends, neighbors and colleagues will all be on board and supportive from day one.

“Great works are not performed by strength but

by perseverance.”Samuel Johnson

QUESTIONS?

This Sample Presentation

Has been edited. For the full set of slides contact:

Stefan Silverman

Stefan@FranchiseJones.com

612-460-0060