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www.execunet.com/hireyourself/
Be Your Own Boss In 2020:
Find Your Best Franchise
Business Opportunity
Pete Gilfillan
Entrepreneur, Franchise Consultant, International Bestselling author of HIRE YOURSELF, and Proud Corporate Escapee
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Why I Wrote HIRE YOURSELF
My Mission: Help executives take control of their destiny, build wealth, and live life on their terms
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My Promise To You
To teach you about franchising, answer common questions about franchising, and offer great resources at the end of this webinar
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What We Will Cover Today….
▪ What Is Franchising? Why Is Franchise Business Ownership Surging?
▪ What’s Trending In Franchise Businesses?
▪ Is Franchise Ownership Right For Me?
▪ How Do You Find The Right Franchise?
▪ Does Owning A Franchise Mean Making Subs Or Driving Around Spraying Lawns?
▪ How Much Capital Do You Need To Invest In A Franchise? What Are Good Sources Of Capital?
▪ What Are The Investment Levels For A Franchise Business?
▪ Can I Replace My Corporate Income Through Franchising?
▪ What Are The Advantages And Disadvantages Of Franchise Ownership?
▪ Want To Hear About Some ExecuNet Member Franchise Ownership Success Stories?
▪ How Do Learn More About Franchising And Get Some Awesome Resources?
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What Is Franchising?
Why Is Franchise Business Ownership Surging?
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What is a Franchise?
www.investopedia.com
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Franchising is Booming
▪ Franchising is more than Subway, Dunkin’ Donuts and McDonald’s
▪ According to IFA there are over 3,000 franchise companies in 75 different industries - touching almost every aspect of our daily life
▪ Franchise businesses make a significant contribution to the U.S. economy (sales and jobs)
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cc: david_shankbone - https://www.flickr.com/photos/27865228@N06
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Franchise Ownership Becomes A Viable Option For Executives…
▪Under-employed consulting and contract work—a new reality
▪Employees now change jobs every four years versus 30-year career
▪More intense age and unemployment discrimination “Control your
own destiny or someone
else will.”
- Jack Welch
% of 50+ Corporate Executives Force Into Retirement
% That Earn The Same or Higher Salary at a New Job
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Why More People Are Taking Path Of Franchise Ownership
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Control their destiny
Create income
Build an asset
Be their own boss
Make a difference
Be engaged
Be rewarded for hard work
Build and lead team
Be happy, satisfied, and proud
Create a family business
More control and ROI on personal capital
Create career and income security Beat ageism
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What’s Trending With Franchise Businesses?
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Two Franchise Models
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Service-based (B2C or B2B):
▪ Home Improvement: painting, flooring, closets, garages, window treatments, kitchen, and handyman services
▪ Professional Services: window cleaning, residential/commercial cleaning, restoration, plumbing, lawn maintenance, HVAC, and business coaching
▪ Personal Services: In-home care, senior living location, and estate sales
Facility Based (Strip Mall):
▪ Health and Wellness: fitness, massage, medi-spas, and weight loss
▪ Beauty: haircare, nails, facials, lash extensions, and hair removal
▪ Children: tutoring, pre-schools, martial arts, and sports training
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Is Franchise Ownership Right For Me?
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Determine What Characteristics Are Important To You
▪ Level of engagement/involvement
▪Desired income/cash-flow
▪Manage and lead employees
▪Growth/scale
▪ Location
▪ Status
▪Comfort level with sales
▪ Family
▪ Schedule
▪Risk tolerance
▪Duration
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▪ Sales and business development
▪ Managing and leading people
▪ Ability to follow processes
▪ Satisfy customers
▪ Process change and evolve over time
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Do You Have The Five C’s?
Critical Characteristics:
CAPACITY
CHARACTER
CAPITAL
CUSTOMER SATISFACTION
COOPERATION
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Do You Have The Traits Of A Successful Business Owner
▪Disciplined
▪Confident
▪Open-minded
▪ Self-starter
▪Competitive
▪Creative
▪Determined
▪Passionate
▪ Strong people skills
▪ Solid work ethic
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How Do You Find The Right Franchise?
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Finding A Franchise That Fits You
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1
2
3
5
Know the characteristics of what you are looking for in a business
4
Know what you want to accomplish with the business
Leverage a proven investigation process
Keep an open mind
Have FUN with your investigations
6
Remember, don’t turn your hobby into your business
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Finding A Franchise That Fits You
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Utilize franchise inquiry websites
Example: www.franchisegator.com
Contact franchise companies directly
Example: www.supercuts.com
Leverage franchise consultant (free service)
Example: HIREYOURSELF.com/Gilfillan
Good
Better
Best
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HIRE YOURSELF Investigation Process
CompleteQuestionnaire
Conduct Consultation Call
and Create Model (summary)
Research Franchise Concepts
–Match Model
Characteristics
Introduction To Franchise Companies and Start
Investigations
Provide Weekly Education and
Coaching
Provide Resources
Support Decision Making Process
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Things To Consider When Investigating Franchisor?
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1Experience of leadership team
2Launch support and training
3Franchisee satisfaction
4Image and reputation
5Size of franchise system
6Up coming concept or established
7 Culture/feel
8 Marketing model
9 On-going support
10Level assistance with site selection and build out
11Financial strength of franchise company
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Four Core Steps : Over Six Week Period
Franchise Investigation Process
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Determine key characteristics and
what want to accomplish
FranchiseIntroductions
Determine engagement level
and franchise category type
Introduction CallFranchise Disclosure Document
Franchisee Validation
Discovery / Meet Team Day
Other Steps: Marketing Overview, Training Overview and Funding Plan
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Does Owning A Franchise Mean Making Subs Or Driving Around Spraying Lawns?
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Franchise ownership where you work “ON” the business versus work “IN” the business.
You set the overall direction and make the key decisions while overseeing a manager that manages the business
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Growing Movement
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Levels of Engagement:
Franchisee Engagement
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Executive Franchisee
Works “ON” the business and scaling it over time
Works “IN” the Business
Artisan FranchiseeSemi-Absentee Franchisee
manager operated/part-time 15-20 hours
week
Full-Time Franchisee
engaged full-time, but not artisan
Area Developer/Multi-Unitmultiple territories/locations in larger geographic area
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How Much Capital Do You Need To Invest In A Franchise?
What Are Good Sources Of Capital?
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How To Capitalize A Franchise
▪Need minimum liquid capital: $75K - $100K
▪ Liquid capital is cash, stocks, bonds, equity in your home (HEL) and retirement savings (ROBS)
▪ Funding Resources: SBA loans, traditional loans, franchisor financing, outside investors, and family/friends
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Funding Resources
SBA Loans
Traditional Loans
Franchisor Financing
Home Equity Line (HEL)
Brokerage/
Portfolio Line
Retirement Savings
(ROBS)
Outside Investors
Family and Friends
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What Are The Investment Levels For a Franchise Businesses?
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Total Investments – Significant Range
▪ Service Based: Minimum $75k+
▪ depends on size and number territories, equipment needs, and working capital
▪ Facility Based: Minimum $200k+
▪ depends on facility size and buildout, equipment, furnishings and working capital
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(FDD Item 7)
Investment Breakdown
TYPE OF EXPENDITURE AMOUNT
initial Franchise Fee $50,000
Initial Training Program (Fees) 0
Travel and Living Expenses (Training) $1,000 - $3,000
Real Estate/Lease $10,000 - $20,000
Leasehold Improvements $20,000 - $60,000
Insurance $1,000
Equipment $70,000 - $90,000
Pre-Sale Start Up Package $7,000
Inventory Kit $10,000
Utilities Deposits $0 - $1,000
Licenses and Permits $0 - $3,000
Furniture and Fixtures $15,000
Computer System $1,000 - $2,000
Advertising and Marketing $12,000
Shipping $3,000 - $9,000
Installation $4,000
Additional Funds (3 Months) $10,000 - $20,000
TOTAL ESTIMATED INITIAL INVESTMENT $214,000 - $317,000
32All Numbers Provided Fictitious NOT For Investment Decisions
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Leverage Financial Resources – To Scale Your Business
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Location 1
Cash
SBA Loan
Location 2
HEL
ROBS
Location 3
ROBS
Convent Loan
$300,000Total Invest
$210,000
$90,000
$300,000Total Invest
$210,000
$90,000
$300,000Total Invest
$210,000
$90,000
All Numbers Provided Fictitious NOT For Investment Decisions
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Can I Replace My Corporate Income Through Franchising?
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The Financial Performance Of The Franchise Business Depends 100% On You…..
Gross Revenue
Net Profits
Net Profit Margin
Total Investment
Annual ROI 30%
18%
$500,000
$90,000
$300,000
All Numbers Provided Fictitious NOT For Investment Decisions
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It Takes Time And Scale To Replace A Corporate Income Corporate Executive Salary Franchise Profits and Asset Value
Year 1 $200,000 SalaryUNIT 1
$0 Salary
Year 2 $210,000 SalaryUNIT 1
$50,000
UNIT 2:
$0
Year 3 $220,000 SalaryUNIT 1
$100,000
UNIT 2
$50,000
UNIT 3
$0
Year 4 $230,000 SalaryUNIT 1
$125,000
UNIT 2
$75,000
UNIT 3
$50,000
Year 5 and on $240,000 SalaryUNIT 1
$125,000
UNIT 2
$100,000
UNIT 3
$125,000
5-Year Asset Check: $0 asset value of job$1,000,000+
Potential Asset Value of 3 Franchise Units
36All Numbers Provided Fictitious NOT for investment decisions
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What Are The Advantages and Disadvantages of Franchise Ownership?
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Saves You The Time
Capital Associated with Developing
Proving Out and Refining Your Own Business Concept/Model
cc: Instant Vantage - https://www.flickr.com/photos/44312356@N04
Franchising = Entrepreneur Lite
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Business In A Box -Turnkey
Provide Proven System
Improve Success Ratio
Provide Training and On-going
Support
Value of Being Part of Network
Franchisees
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Disadvantages of Franchises
Ongoing Royalty Payments
Franchise Company Restrictions Must Follow System
Selecting Wrong Franchise Concept Can Be Painful Long-term Commitments (Agreements)
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F alseE videnceA ppearingR eal
Why People Go Through The Investigation Process And Choose Not to Invest
Business ownership isn’t for everyone
It is A LOT of work
FEAR and ANXIETY stops many people from following their dreams
Lack of capital
Still believe a job = income security
Maverick mentality
Family and friends kill person’s dream
Not capable of making A decision
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Want To Hear About SomeExecuNet MemberFranchise OwnershipSuccess Stories?
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ExecuNet Member Success Stories
Mike Furnisshttps://www.execunet.com/trading-corporate-life-entrepreneurship/
Mike’s story can be found here
https://www.execunet.com/trading-corporate-life-entrepreneurship-3/
Donna’s story can be found hereDonna French
Bill Welshhttps://www.execunet.com/trading-corporate-life-entrepreneurship-4/
Bill’s story can be found here
Keith Evanshttps://www.execunet.com/become-entrepreneur-keeping-corporate-day-job/
Keith’s story can be found here
https://www.execunet.com/trading-corporate-life-entrepreneurship-2/
Jim’s story can be found hereJim Griffin
https://www.execunet.com/quit-corporate-job-never-looked-back/
John’s story can be found hereJohn Weiss
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Have More Questions?
REQUEST CONSULTATION CALL
Request a free quick consultation call
Learn if franchise ownership may be right for you
Receive your free copy of the HIRE YOURSELF book
Go toHIREYOURSELF.com/execunetoffer
43
In Summary
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Thank YouTo connect with Pete Gilfillan for more information, please submit your name and email through the following link:
HIREYOURSELF.com/execunetoffer
PGilfillan@hireyourself.com 855 904-7900
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