Creating Income Security in Uncertain Times Through

www.execunet.com/hireyourself/

Creating Income Security in

Uncertain Times Through

Franchise Ownership

Pete Gilfillan

Entrepreneur, Franchise Consultant, International Bestselling author of HIRE YOURSELF, and Proud Corporate Escapee

July 16, 2020

http://www.execunet.com/hireyourself/

www.execunet.com/hireyourself/ 2

My Story



Why I Wrote HIRE YOURSELF

My Mission: Help executives take control of their destiny, build wealth, and live life on their terms



My Promise To You

● To teach you about franchising ● Answer common questions about

franchising● Share the 8 reasons why the future may

be the right time to consider franchise ownership

● Encourage you to create income security● Offer great resources at the end of this

webinar



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?

▪ What Are The Capital Requirements for Franchises? What Are Good Sources Of Capital?

▪ What Are The Minimum Investment Levels For Franchises?

▪ Can I Replace My Corporate Income Through Franchising?

▪ What Are The Advantages And Disadvantages Of Franchise Ownership?

▪ Why The Future May Be The Right Time To Consider Franchise Ownership

▪ Why You Need To Create Income Security Immediately

▪ Want To Hear About Some ExecuNet Member Franchise Ownership Success Stories?

▪ How To Learn More About Franchising And Get Some Awesome Resources



What Is Franchising?

Why Is Franchise Business Ownership Surging?



What is a Franchise?

www.investopedia.com



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)



cc: david_shankbone - https://www.flickr.com/photos/27865228@N06

9

Franchise Ownership Becomes A Viable Option For Executives…

▪ Future layoffs and downsizing▪ 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



Why More People Are Taking Path Of Franchise Ownership

10

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

Leverage personal capital

Create career and income security Beat ageism



What’s Trending With Franchise Businesses?



Two Franchise Models

12

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



Is Franchise Ownership Right For Me?



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



▪ Sales and business development

▪ Managing and leading people

▪ Ability to follow processes

▪ Satisfy customers

▪ Process change and evolve over time



Do You Have The Five C’s?

Critical Characteristics:

CAPACITY

CHARACTER

CAPITAL

CUSTOMER SATISFACTION

COOPERATION



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



How Do You Find The Right Franchise?



Finding A Franchise That Fits You

19

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 for your validation

Keep an open mind

Have FUN with your investigations

6

Remember, don’t turn your hobby into your business



Finding A Franchise That Fits You (Your Search Process)

20

Utilize franchise inquiry websites

Example: www.franchisegator.com

Contact franchise companies directly

Example: www.supercuts.com

Leverage franchise consultant (free service)

Connect to potential franchise matches

Example: www.HIREYOURSELF.com/gilfillan

Good

Better

Best


http://www.franchisegator.com/


HIRE YOURSELF Investigation Process

CandidateCompletes

Questionnaire

Conduct Consultation Call

and Create Model (summary)

Screen Franchise Concepts

–Match Key Model

Characteristics

Connect To Franchise Companies

and Candidate Starts

Investigations

Provide Weekly Education and

Coaching

Provide Resources

Support Decision Making Process

(Fear)



Things Candidates May Consider When Investigating Franchises

22

1Experience of leadership team

2Launch support and training

3Franchisee satisfaction

4Image and reputation

5Size of franchise system

6Upcoming concept or established

7 Culture/feel

8 Marketing model

9 Ongoing support

10Level assistance with site selection and build out11

Financial strength of franchise company



Four Core Steps : Over Six Week Period

Candidate’s Investigation Process

23

Determine key characteristics

and what want to accomplish

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

Franchise Introductions

Candidate Validation and Due Diligence Process (Completed On Their Own)



Does Owning A Franchise Mean Making Subs Or Driving Around Spraying Lawns?



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

25

Growing Movement



Levels of Engagement:

Franchisee Engagement

26

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



What Are The Capital Requirements for Franchises?

What Are Good Sources Of Capital?



Two Primary Capital Requirements

▪ Liquid Capital: Need a minimum of $75K - $100K▪ Liquid capital may be: cash, stocks, bonds, equity

in your home (HEL) and retirement savings (ROBS)

▪ Personal Net Worth: Need a minimum of $100K

▪ Net worth = Assets - Liabilities


29

Funding Resources

SBA Loans

Traditional Loans

Franchisor Financing

Home Equity Line (HEL)

Brokerage/

Portfolio Line

Retirement Savings

(ROBS)

Outside Investors

Family and Friends




What Are The Minimum Investment Levels For Franchises?



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

31



(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



Leverage Financial Resources – To Scale Your Business

33

Location 1

Cash

SBA Loan

Location 2

HEL

ROBS

Location 3

ROBS

Convent Loan

$300,000Total Invest

$210,000

$90,000


$210,000

$90,000


$210,000

$90,000

All Numbers Provided Fictitious NOT For Investment Decisions



Can I Replace My Corporate Income Through Franchising?



The Financial Performance Of The Franchise Business Depends 100% On You…..

All Numbers Provided Fictitious NOT For Investment Decisions



It Takes Time And Scale To Replace A Corporate Income Corporate Executive Salary Pay Yourself Salary and Build Assets

Year 1 $200,000 SalaryUNIT 1

$0 Salary


$50,000

UNIT 2:

$0


$75,000

UNIT 2

$50,000

UNIT 3

$0


$100,000

UNIT 2

$75,000

UNIT 3

$50,000

Year 5 and on $240,000 SalaryUNIT 1

$125,000

UNIT 2

$100,000

UNIT 3

$75,000

5-Year Asset

Check:$0 asset value of job

3 Franchise Units —

Potential Asset

36You Must Complete Your Own Validation. All Investments Have Risks, Including Failure

All Numbers Provided Fictitious NOT for investment decisions



What Are The Advantages and Disadvantages of Franchise Ownership?



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

38

Business In A Box -Turnkey

Provide Operating System

Improve Success Ratio

Provide Training and On-going

Support

Value of Being Part of Network

Franchisees



Disadvantages of Franchises

Ongoing Royalty Payments

Franchise Company Restrictions Must Follow System

Risk of FailureLong-term Commitments (Agreements) Wrong Match Painful



F alseE videnceA ppearingR eal

Why People Go Through Their Investigation Process And Choose Not to Invest

● Business ownership isn’t for everyone● It is A LOT of work evaluating franchises● 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


41

8 Reasons Why Right Now is the Time to Become a Franchisee

Diversify Your Assets and Income

Leverage a Potential Softening of the Real Estate Market

Franchise Validation Opportunities

Business Resale Options

Create Income

Security

Take Advantage of

the Labor Pool

Capitalize on Pent-up Demand

Leverage Economic Resources




Why Do You Need To Create Income Security?

If you haven’t already been laid off or packaged out… you could be next!!!!



Companies with Major Corporate Layoffs

General Motors 6,500Macy’s 3,900HSBC 35,000Hilton 22%Chevron 10-15%General Electric 10%Boeing 10%, +7,000 more soonAirBnb 25%United Airlines 30% in April, 36,000 nowHertz 10,000 (25%)Marriott 117,000Tenet Healthcare 11,000AT&T 3,400BP 10,000ClassPass 22%



The Bad Numbers…Tons of Uncertainy

▪ The Congressional Budget Office thinks real unemployment is 24.9%, with more layoffs coming

▪ The CBO predicts 15% more employees will become unemployed in Q3▪ Jobs in retail, warehouse, factory, and transportation areas are threatened by

increased automation▪ 75% of independent restaurants may not reopen▪ 4 out of 10 jobs aren’t coming back (a total of 13.5 million jobs are gone)▪ 11% of companies announced pay cuts for C-level employees▪ Mid-market companies have seen the highest level of pay reductions



The Next Few Years Will Be Tough for Senior-Level Execs

▪ Ages 45-54 are 10.4% of the total unemployed▪ Those 50+ are 11.5% of total unemployment… and rising▪ Job listings are down 20% compared to 2019▪ Most sectors are hiring between 5-22% fewer people than they were last year▪ 61% of C-Suite executives saw pay reductions—many of these will be permanent▪ Unemployment and age discrimination still exist ☹▪ Higher paying jobs are declining while low-paying hourly worker hiring is

exploding (Instacart +300,000, McDonald’s +260,000, Amazon +175,000)▪ 50% of 50+ executives are forced into retirement before they are ready and

unfortunately only 10% of executives taking a new job make the same or more income



Now Is The Time To Create Income Security

▪ If You Are In Career Transition: As you explore your many options for future, consider franchise business ownership.

▪ If You Are Currently Employed: Keep your job and create a secondary income through semi-absentee franchise ownership. Create a bridge to escape the corporate world and a safety net for the future.

Jobs are no longer

income security!As a business owner you will

not be laid off, given a

separation package or be

furloughed!

You will have income security!



Want To Hear About SomeExecuNet MemberFranchise OwnershipSuccess Stories?



ExecuNet Member Success Stories

Mike Furnisshttps://www.execunet.com/trading-corporate-life-entrepreneurship/

Mike’s story can be found here

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


https://www.execunet.com/trading-corporate-life-entrepreneurship/


https://www.execunet.com/become-entrepreneur-keeping-corporate-day-job/


https://www.execunet.com/quit-corporate-job-never-looked-back/


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

49


In Summary


Thank YouTo connect with Pete Gilfillan for more information, please submit your name and email through the following link:

HIREYOURSELF.com/execunetoffer

[email protected] 855 904-7900


mailto:[email protected]


Supplemental Slides



8 Reasons Why The Future May Be The Right Time to Consider Franchise

Ownership

Historic Tough Times Tend to Bring Future Opportunities



Create Career and Income Security

Protect yourself from future corporate layoffs.

When you own a business, you will not be fired or laid off.

Job income isn’t secure because you are renting it from your employer.



Diversify Your Assets and Income

Tired of the stock market roller coaster?

Your investment success maybe left up to someone on Wall Street who isn’t vested in your interests, only their own success.

With a business, you are in control your income and assets.



Take Advantage of the Labor Pool

Hiring just a few months ago was hard; unemployment was low.

Now there is an improved labor pool.

With more people eager to work, you can hire the best workers for your new business (top grade team).



Leverage a Potential Softening Real Estate Market

Landlords maybe hunting for new tenants.

Signing a lease in the future may mean better terms and options.

i.e. tenant improvement and lease abatement dollars.



Capitalize On Pent-up Demand

People are going to want to get back to living their lives.

Purchase products or services they postponed during tough times.



Validate the Franchise

In this unique time, you will be able to learn:

▪ How a franchisor supported franchisees during turbulent times.

▪ How franchises managed their business during the coronavirus.



Leverage All Economic Resources

Special SBA programs for new franchise owners are available.

Low interest rates.

Potential and future local financial incentives.



Take Advantage of Business Resale Opportunities

There may be more business owners interested in selling.

Financial terms for a resale might be better in the near future.


Documents

Creating Income Security in Uncertain Times Through