VFC F101 2013

Presented by: Growing America With America's

Best1

MAKE YOUR NEXT CAREER MOVE A BUSINESS OF YOUR OWN!

Growing America With America's Best

www.VeteranFranchiseCenters.com

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How did Franchising Come About?

1860’s: Albert Singer - Singer Sewing Machine Company.

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.



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12.5% of Jobs Today are Attributed to Franchising

Nearly 50% of all retail sales come through franchising.

One in twelve business is a franchise.

Nearly 86% of all franchises opening in 60 industries 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.

Source: U.S. Department of Commerce



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Entrepreneurship or Frantrepreneurship

-VS-



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Much, Much Larger than Hamburgers!! More than 75 Sectors of Business

• Accounting & Tax

• Automotive

• Business Services

• Children’s Services

• Clothing & Shoes

• Construction

• Cosmetics

• 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

• Many more...



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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



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Advantages to Franchisors

Franchisor can expand without direct investment

Store operators are usually owners, not managers



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Franchising is NOT...

A guarantee of success

Like any business it still has risks

For everyone

Consistency is key to franchising

A short-term commitment

Average contract is 10 years



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7 Benefits of Franchise Ownership

1. Franchisor has a vested interest in your success.

2. Franchisor offers market analysis / competition.

3. System provides collective buying power / lower operation costs.

4. National advertising strength to build awareness.

5. Training and support programs and personnel.

6. Ongoing research and product development.

7. Build greater value and equity in the business.



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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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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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Understanding the FDD

In the United States, franchises are all regulated by the Federal Trade Commission (FTC). One of the regulations requires every franchise to publish a Franchise Disclosure Document (FDD) every year. It is made up of 23 Sections and includes:

• The franchisor's background including the business description in detail.

• The business experience of the principal officers & staff, including bankruptcies & litigation.

• All fees involved with the franchise, including startup costs & terms.

• Technology, trademark, & quality controls.

• Training requirements & territory guidelines.

• Financing & complete list of all franchisees.



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Common Elements of the Franchise Agreement

The Franchise Agreement

Agreement Term

Agreement Renewal

Agreement Termination

Relationship of the Parties

Territory map/definition

Personal Guaranty

Concept specific addenda



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So Where do you Start?

There are Thousands.... of ….Franchises Available!!!



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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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Your Next Steps

Revisit your virtual brochure at MyVeteranFranchise.com/VB

Fill out the short application located at the end of the “Welcome” section.

Contact your VFC Franchise Advisor to find the best franchise match for you!

No cost or obligation!!



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Retired General Colin Powell

“A dream doesn't become reality through magic; it takes sweat, determination and

hard work.”

Presented by: Growing America With America's

Best18

Thank You!MyVeteranFranchise.com/VB

Richard AshePresident, Certified Franchise Adviser

Veteran Franchise Centers LLC [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

VFC F101 2013