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1Growing America With America's Best www.VeteranFranchiseCenters.com
YOUR NEXT CAREER MOVE A BUSINESS OF YOUR OWN!
PRESENTED BY
2Growing America With America's Best www.VeteranFranchiseCenters.com
What is Franchising?
• A marketing method in which the owner of a product
or service, known as the “franchisor”, offers the right
to operate and manage his product & service to
others, the “franchisees”, in return for a fee and
ongoing royalty payments.
Franchisee- Initial Fee - Royalty,- Infrastructure
Franchisor- Know-How - Support- Trademark
3Growing America With America's Best www.VeteranFranchiseCenters.com
How did Franchising Come About?
• 1881 – 1929: Martha Matillda Harper Hair Salo• 1902 – 1930’s: Rexall Drug Stores, Western Auto,
Ben Franklin, Super Value Stores, Oil Companies for Gas Stations.
• 1950’s – 1960’s: McDonalds, KFC, Holiday Inns, Laundry and Dry Cleaning, Tax Preparation, Travel and Recreation, Quick Printing, etc.
• 1960 – International Franchise Associations is founded by Bill Rosenberg of Dunkin’ Donuts.
• 1979 – FTC adopts rule requiring pre-sale disclosure of information to prospective buyers.
4Growing America With America's Best www.VeteranFranchiseCenters.com
-VS-
Entrepreneurship -vs Frantrepreneurship
5Growing America With America's Best www.VeteranFranchiseCenters.com
Not Jut Burgers & Fries...More than 75 Sectors of
Business
• Accounting & Tax• Automotive• Business Services• Children’s Services• Clothing & Shoes• Construction• Computers/IT• Educational Services• Employment Services• Environmental Services
• Restaurants• Hair salons• Home furnishings• Hotels/Motels• Janitorial Services• Laundry/Dry Cleaning• Lawn & Garden• Maid Services• Printing Services• Real Estate
6Growing America With America's Best www.VeteranFranchiseCenters.com
• One in twelve business is a franchise.
• 12.5% of Jobs Today are Attributed to Franchising• Nearly 50% of all retail sales come through franchising• Nearly 86% of all franchises opening in during the past 5 years are still
under the same ownership• Over 3,200 franchises are sold every week• A new franchise is opened every 8 minutes of each business day.
4314 veteran became franchisees since 2011**
‣ Source: U.S. Department of Commerce‣ International Franchise Assoc.**
Economic Impact of Franchising
7Growing America With America's Best www.VeteranFranchiseCenters.com
7 Benefits of Franchise Ownership
Franchisor has a vested interest in your success.
Franchisor offers market analysis / competition.
Collective buying power / lower operation costs.
National advertising strength to build awareness.
Training, support programs and personnel.
Ongoing research and product development.
Build greater value and equity in the business.
“In business for yourself not by yourself.”
8Growing America With America's Best www.VeteranFranchiseCenters.com
Franchising is NOT...
• A guarantee of success‣Like any business it has risks
• For everyone‣Willingness to stick to the system
• A short-term commitment‣Average contract is 10 years
9Growing America With America's Best www.VeteranFranchiseCenters.com
Why Veterans Outperform
DisciplinePerseveranceTeamworkLeadershipCommunity
According to PWC the average veteran-owned franchise businesses compared very favorably to all veteran owned businesses, generating average gross receipts of $2.1 million compared to $445,487 for all veteran-owned businesses.
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Growing America With America's Best www.VeteranFranchiseCenters.com
EcosystemEntrepreneur vs Frantrepreneur
Organizations
Vendors
Franchisor
Franchisees
Entrepreneurship
Frantrepreneurship
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Growing America With America's Best www.VeteranFranchiseCenters.com
Financial Incentives for Vets
★ VetFran is a voluntary effort of IFA member-companies that is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans.
★ In 2002, the IFA and the U.S. Dept of Veterans Affairs signed an official memorandum to jointly promote the VetFran program.
★ Over 400 franchise companies participate in the program.
★ 4300+ Veteran Owned Franchises and Growing. Taking advantage of the financial incentives veterans had acquired 4312 - October 2012 VetFran Report
★ Action Item - Write a Letter to Congress
The Veterans Business Ownership Act of 2011 | A proposal to empower America's military veterans to create businesses and jobs
http://act.vetbizgibill.org/4115/take-action-to-help-our-veterans/?src=widget
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Growing America With America's Best www.VeteranFranchiseCenters.com
The first step in finding the perfect franchise is to look within you and not within franchising. With literally thousands of franchise opportunities available, if you try to evaluate them before you evaluate your own wants, needs, and capabilities, your search for the business of your dreams will more than likely become a nightmare. Ask yourself these questions:
Questions to Ask Yourself While Searching for Your Opportunity
• Why do I want to own my own business?
• What am I looking for?
• How much am I willing to invest?
• Can I build equity in my business?
• Will owning a business make me happy?
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Growing America With America's Best www.VeteranFranchiseCenters.com
5 Common Mistakes to Avoid
Not reading and understanding the Uniform Franchise Disclosure Document (FDD) and Franchise Agreement.
Not contacting current franchisees.Not having enough working capital.Not developing a forecast or business plan.Not developing a marketing strategy.
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Growing America With America's Best www.VeteranFranchiseCenters.com
Why Work with VFC?
We provide you with free education! We define your qualifications! We provide valuable insight on franchise companies! We provide a consultive approach to helping you!
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Growing America With America's Best www.VeteranFranchiseCenters.com
Retired General Colin Powell
“An important attribute in successful people is their impatience with negative
thinking and negative acting people.
...those who never succeed themselves are always first to
tell you how.”
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Growing America With America's Best www.VeteranFranchiseCenters.com
Thank You!Richard Ashe
President, Certified Franchise Advisor
Veteran Franchise Centers – Houston
[email protected] 849 9642