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What does Franchise success look like

info@econcept.biz (Robert Shipman) — Wed, 20 Jul 2022 22:12:55 GMT

5 inspirational success stories to motivate aspiring franchisees

Thomas Edison is credited with coining the phrase, “Genius is 1 percent inspiration and 99 percent perspiration.” Something similar could be said for success as a franchisee — although we don’t want to completely discount the importance of inspiration. In fact, learning from other franchisees and hearing their stories is of great importance.

“When investing in a franchise business, nothing is more important than talking with franchisees about their experience,” says Eric Stites, CEO and founder of Franchise Review, a leading market research firm that specializes in franchisee satisfaction and performance. “The franchisees within a specific franchise brand are essentially going to be your business partners and mentors. What has their experience been? What challenges have they faced? What type of culture does the company have? These are all critical questions to understand before investing in any franchise business opportunity.” Learning from other franchisees gives you the knowledge and the motivation to succeed. This issue, we take a look at five franchise success stories that can serve as inspiration before you put in all the hard work of opening and running your own franchise.

Charles Loflin – Pizza Patrón

Twenty years ago, Loflin met Antonio Swad, the founder of Pizza Patrón and Wingstop, and decided to become a Wingstop franchisee. The first location, in San Antonio, was so successful that Loflin opened more franchises, eventually owning 70 Wingstops in the Southwest. He went on to add some Pizza Patrón locations to his portfolio.

After becoming so successful, Loflin approached Swad with the idea of buying the entire Patrón brand, which he now owns along with the 70 Wingstops. Loflin is looking to continue to develop both brands and bring an app and more technology to the Pizza Patrón brand.

Craig Burton – Fibrenew

Sometimes, success is best measured in job stability and creating more free time to spend with one’s family. Craig Burton achieved these goals when he became a franchisee with Fibrenew . After having three different jobs in five years, Burton sought a career that provided him with job security and loyalty. He found exactly that in the leather, vinyl, and upholstery repair franchise.

Burton was supported by the head office through ongoing workshops and seminars and established a network of fellow franchisees who are happy to help him out with any questions he has or advice he seeks. Owning his own business has not only provided Burton with a steady source of income, it has given him a flexible schedule that allows him to spend more time with his wife and two daughters.

Linda Ekendahl – Edible Arrangements

Franchisors have specific guidelines in place so franchisees stay on brand and to help the business succeed while maintaining a standard of quality. However, this doesn’t always mean that franchisees can’t — or shouldn’t think for themselves.

Linda Ekendahl opened her Edible Arrangements franchise in 2004 in a tiny strip mall location that couldn’t accommodate her staff. The franchise had a rule in place that each franchise must be located in a shopping center with foot traffic, but Ekendahl found a location downtown with a landlord who would help finance her setup of the location. She was able to convince her franchisor to bend the rules and allow her to move to the new location by sending them pictures of other nearby businesses and the foot traffic on the street. Years later, she still has a space of nearly twice the size and a booming business — with plenty of room to spare.

Andy Patel – International House of Pancakes

Becoming a franchisee can be truly emblematic of the American Dream, just ask Andy Patel, who immigrated to the US and took his first job in the country as a Wendy’s manager. Using money he had saved, he took over a struggling IHOP , which he led to a resurgence that saw him being chosen IHOP Franchisee of the Year two years in a row.

Patel expanded his IHOP reach and eventually acquired an Applebee’s franchise, at which he increased sales by double digit percentage points in only three months. Fast-forward to 2017, and Patel won the Apple Investors Group MVP American Dream Award as the proud owner of 63 Applebee’s, 38 IHOPs, 24 Burger Kings, eight Pizza Huts, and three Travelodges.

Dave Chantrell – The Melting Pot

Of course, knowing a business well before becoming a franchisee is a great way to help ensure success. Such was the case with Dave Chantrell, who worked as a server at the Melting Pot while studying at the University of Virginia.

Chantrell’s experience as a server helped him understand the culture of the franchise as well as the responsibilities of each employee in providing diners with a memorable experience. His purchase of the local Melting Pot was made possible through an SBA loan he acquired with his partner, and its success was partly due to his first-hand knowledge of the business.

As seen in the different cases discussed, there are different ways of being successful as a franchisee, all it takes is a little inspiration and some hard work.

Rewards when owning a successful franchise in pictures:

A Guide to Buying a Franchise

Sat, 16 Jul 2022 18:00:17 GMT

First of all, think about your personality and talents, and ask yourself questions such as “Why should I want a franchise ?”, “Will I be a good manager? “Am I patient?” To make this a more natural process, you can write down your franchise objectives on a legal pad to help you determine which franchise category to buy into, so it can help you connect the dots and have a more precise goal in your head.

To get started on the legal and bureaucratic paperwork after you decide, you can seek the help of a franchise lawyer to clarify the law and legal aspects of the process and who can register you with your state or local franchise regulator. Hiring a franchise lawyer is secure and will help you more than you can imagine.

What is a franchisor?

The owner of the brand or franchise that you will be participating in.

What is a franchisee?

The person who opens one or several new locations of the franchise on behalf of the franchisor.

As a franchisor starting a new franchise , you get many advantages to just expanding on your own; it takes less capital, less risk, and takes up less of your time as well. You gain partners when franchising, but you are still the owner of the brand and parent company.

And as a franchisee (who buys the franchise) you get to join in a successful business without the hassle of starting from scratch and creating processes and branding by yourself. Ponder on all the benefits of owning a franchise and organize yourself to make it happen, so you won’t have to struggle by not knowing the basics of it.

Next are all the elements to consider when buying a franchise:

The Pros of Buying a Franchise

Good Statistics

The numbers in the world of franchising are thrilling, according to the International Franchise Association, with 4% of American enterprises being franchises, and they generate over 2.1 trillion dollars in revenue while employing 18 million Americans. This means that franchising is one of the main components of the American economy and that the advantages of franchise ownership are considerable, or at least more than you might think.

The tree service industry, for example, has been valued recently at $17 billion, which is a guarantee that when purchasing a franchise in the tree service industry, you’ll be buying a reliable and sustainable business model with high revenue. Some tree franchises are paying around $350,000 with a royalty fee of 3% and a monthly gross income of 6%. When choosing to invest in a tree service franchise, you can do so without prior experience in it, as work-ethic is what you need the most.

Cover Multiple Territories

When (example) buying a tree franchise , you can be in more than one place. A lot of franchises even offer discounts for opening more than one location. Most franchises also offer exclusive rights to each location’s territory right. This means that the tree service will not place another location in that area. Also, a tree service franchise will help you win the exclusive rights to provide residential, commercial, and government contracts.

Instant Brand Recognition

Some brands, services, or franchises, can become the nation’s best-regarded within less than a decade because you can see it as a regional brand of local experts. By owning a tree franchise, local needs can be met, and the community can grow more than expected. You can join your efforts with the franchise to assist you in negotiating and signing contracts with local governments so that you can ensure a stable income.

Just how much does a brand offer in terms of help starting up? Do they pay for your training? Uniforms? Do they take care of the marketing? Help you with your business loan? Find the franchise that helps with all of this, and make sure you don’t go for the cheapest just for the sake of saving a few bucks. That might cost you more in the long run.

Skip the Start-up Phase

Setting up your own company tends to be a slow process, one that doesn’t assure you success, because there’s a lot at stake, but when buying a franchise, you can skip this part, as it’s ready for the taking. Most of the cost for opening a tree service franchise is, like any other franchise, first the start-up cost, which includes everything from fees to royalties, buying or leasing real estate, and training your new employees.

Easy-to-Replicate Training System

Any good tree service franchise offers comprehensive initial training for the franchisee and their team. Some offer two full weeks of initial training , with one week of classroom and hands-on training followed by another full week of personal, onsite training at your location. These two weeks don’t have to run together, and the sessions conducted by professional staff include lessons on:

Safety and Equipment Usage
Public and Employee Relations
Budgeting and Business Planning
Supplies and Purchasing
Bookkeeping and Financial Controls
Advertising and Sales Strategies
Operations and Daily Management
Computer and Internet

Also, Certified Arborists can show you how to provide estimates in hours, and some franchises can offer programs that help you get an edge over your local competition.

In conclusion, the training for employees is part of a proven system for making money, and you and your professional staff can learn it.

If you and your team still have any doubts, don’t worry, as ongoing support on training is usually given to people at least every month by the franchise.

Marketing and Advertising Help

Your marketing needs to go hand in hand with your initial franchise offering plans. Not all marketing works everywhere, every time or in any way. Nonetheless, you will be aided by the franchisor with branding material, marketing tools, guidelines, and other resources. You as a franchisee will also need to work alongside your new franchisor to teach them about the local market.

More Access To Financing

It depends on the franchisor, but a lot of franchisors work closely with both national and local financiers that will help you gain access to the necessary capital you might need to set up your new location. Once you also enter into an agreement with the franchisor, you can gain access to the Small Business Administration’s (SBA) loan plans, or even be taken seriously by your local bank for a small business loan. Look also for franchise review sites in order to compare.

Things You Need When You Buy A Franchise

The cost of opening a Tree Service Franchise varies depending on the number of locations you want to operate and how much you need to invest in setting up each area. Some of the details are:

Franchise fees for one territory.
Fee for a royalty on monthly profits.
Other amounts of liquid capital (cash on hand).
Some net worth.

Usually, the tree service franchise fee is about $49,500 for a single region. You get your exclusive territory, with a population of at least 200,000, with significant discounts.

It takes about 450 to 510 days (a year and a half) for a franchise to be truly up and running while paying your royalties. Then you’ll be a franchisee.

That might sound like a lot of time, but it is about the same as starting a new business. And it comes at a lesser human and financial cost as well, for both the franchisee and franchisor.

Dig All The Dirt You Can On The Franchise

Digging for relevant information, bad reviews, and so on, will give you the confidence to make the right decision. Surf the web until you’re satisfied with the results, and if you found negative things about a franchise, then feel lucky about knowing and keep doing your research. You’ll find a trustworthy option if you do your due diligence.

Talk To Other Franchisees

Most importantly, get the word straight from the horse’s mouth, or in this case, from the other franchisees. A good franchise will provide you with the Franchise Disclosure Document (FDD) with information about its other locations, but also with the contact information, so take advantage of that and talk to other franchisees. This document will help you to contact them and request objective brand information.

Master of Your Finances

Your finances will help you determine what kind of franchise is within your control. Don’t overstretch your finances just to get the big, popular franchise everybody wants. You might have to settle for something more manageable like a tree service franchise smaller, but in the long run, it will be much easier to manage, and that means a better return on investment. You have options when it comes to controlling your finances and getting the access that you need.

Even if the franchise fees (money they pay to buy the right to a franchisee) are a certain amount, all franchisees must be mindful of their finances, that you have sufficient capital to support the overall cost of setting up a new franchise site. You will also be asked by the franchise for a minimum net value (what the total wealth is).

You’ll need an average of $250,000 to start a franchise, although a tree service franchise might ask you between $100,000 and $200,000. The average royalty fees paid by franchisees range from 3% to 6% of monthly gross sales.

Research The Industry You Are Entering

Even before you start picking apart each franchise and their locations, you have to research the industry you’re interested in. Research how many companies and businesses are part of it, it’s worth, growth projections, the needed investment, and the skills to enter it.

The tree service industry, for example, is expected to grow to a $20 billion one soon, it doesn’t take that much previous experience to enter it, but it does require some investment in equipment and good customer service and even interest in knowing more about urban development and housing.

It’s things like that you should be prepared for.

Consider Your Location

Your first franchise location will have to rely on people you already know in an area near your original one, and rely on customers who know the brand you are buying well and want more of it. That new franchise location is going to reel new customers, and then you’ll expand once more, with new franchisees, new market segments, new geographic areas, and more revenue and earnings.

Things To Watch Out For

Your Contractual Agreements

You need to be careful in the making of a contractual agreement, and pay extra attention to all the details, so you won’t end up losing more than you’re gaining. This happens after a franchisor is sure you’re the new franchisee that will help them expand the company, and so you will be offered a contract explaining the obligations of both parties. Its important that you know and understand everything that’s written in the Franchise Disclosure Document that will be sent to you; since this is information that The Federal Trade Commission (FTC; the country’s consumer protection agency) feels imperative that you should. That being said, FDDs are usually 150 to 200 pages long and it definitely poses some difficulties getting through it on your own. Make sure you have a franchise attorney at hand and ready to review the contract.

As most guides will tell you, seeking help from a franchise lawyer is the best course of action. Their expertise in federal law and franchising can not only help you understand the FDD in its entirety but can also help you negotiate changes or point out any red flags before you buy into a franchise. There will be plenty of time to do so since, the franchisor is required to give you the contract with enough time in advance for you to look over it and negotiate even aspects of it.

Franchise Royalty Payments

By owning a franchise, you’re helping a company that is already popular grow. But to make a profit from the success of somebody else’s company, you must pay an entrance fee, and you have to do some work if you want to make money out of the market and share your winnings, i.e., pay royalties.

Paying Your Fees

You have to pay a franchise fee to be part of a successful franchise company, and for this, you will have to pay a fee to any franchisor when you get a tree service franchise—price ranging between $30,000 and $50,000. Although this does not include other expenses, such as inventory, labor, preparation, etc.

Franchise Royalties

Also, you still have to pay royalties to the franchise —mostly every month— once you have paid a fee for having the rights to a tree service franchise and being part of the brand. How much you pay depends on the franchise, but generally is of 4% to 12% of the monthly income, which will also depend on the industry you’re willing to invest.

Other Fees and Discounts

Most franchisees will need you to pay a monthly marketing fee, but it can vary according to the franchise type. Some may even have discounts on whether you are a migrant, a veteran, a female, or if you pay royalties early, before time, or if they want to expand into your market, and provide additional incentives.

Most franchises also have exclusivity and secured territories, which ensures that they will value your land without offering their franchise in your area to anyone else.

The Burden of Sharing a Reputation

When buying a franchise, reputation is everything, as you have to protect the name of the company and your acquisition. If there is something you should watch out for, then that is the burden of sharing a reputation that goes with your work-ethics so that you can provide your franchise and the community an excellent service.

The Qualification Requirements

As with most things in business, qualification requirements are needed, and here we are going to explain to you some of the elements you have to consider during the process of buying a franchise.

Purchasing Required Assets

A franchisor tends to demand you have some net value of assets to your name, which is another way that a franchisor can decide whether to do business with you or not—your products, liquidity, inventory, etc. The net value requirement can sometimes be as high as the start-up costs. In a tree service franchise, a net worth of $350,000 is typically required.

Liquid Assets

The cash on hand or the money you are prepared to invest in the company is called equity or liquid assets. As if a landlord were requesting income proof and a deposit plus the first month’s rental for potential tenants. A tree service franchise could ask for liquid assets of at least $100,000.

Skills & Experience

Of course, net worth and wealth is also a sign of excellent financial governance skills and expertise. Still, every franchisor is primarily interested in the excellent management of a potential franchisee, followed by local market knowledge, which is why companies want franchising in the first place.

Note also that the franchisee’s not only telling others about their background in the tree service business but also learning from the franchisor. The franchisor could also benefit from an experience in creativity and risk-taking.

Credit score

To cover certain expenses, including maintenance, equipment, training, etc., you need to qualify or show that you can be eligible for lending and credit lines. Without being even a nominee for a franchise, a good credit score is a must. You can also support the franchisor by approaching local lenders, or you can ask the Small Business Administration to help you apply for a franchise loan from banks or other lending institutions. Learn more about it here. Having partners is always a good option if you don’t want to take all the risk yourself.

Net worth

In addition to cash on hand or assets, a franchise usually asks you for minimum net value (total wealth to your name). For example, a tree service franchise typically demands anywhere in net-worth from $250,000 to $350,000.

Net value is another way a franchisor can choose to do business with you—money, liquidity, inventory, etc. Your net worth for a tree service franchise will, on average, be around $350,000.

Cash on hand

For any franchise, most franchisors require a minimum amount of capital to start up or to take you seriously. They will check the liquidity, which is the cash on hand, or the money you have to invest. Like when a landlord is asking prospective tenants for proof of income. The average liquid capital a tree service franchise requires is around $100,000.

Outside income

It will always be of great help that you have an additional source of revenue outside the franchise, as it will give you the chance to prevent any situation that may hinder your progress as a franchisee.

Industry experience

It’s always preferable to have some sort of experience in the tree service or even landscaping industry, but it’s not a prerequisite. The main skill any franchisor requires is good management and experience with the local market, which is why companies are primarily interested in franchising. However, note that the franchisor’s expertise is not only in the Tree Service franchise business but also in the franchise company. The franchisor could therefore also have an ability to innovate and take risks.

Workforce & Labor

You have to hire, train, and maintain your labor force. You’ll be in charge of payroll, severances, legal expenses, everything (unless the franchise specifies they will handle your salaries).

Supplies

Buying a franchise will require you to comply with their supply rules. Most do require you buy from specific suppliers or contractors. If you are offered more freedom in choosing suppliers that sell the good or product you need, you still have to abide by strict requirements, like maybe buying only electric vehicles, organic ingredients, or American made products.

Some franchises, like a tree service franchise, have their marketing programs where you can easily buy signage, print ads, direct mail, videos, business cards, and other marketing materials without going out and searching on your own.

Administrative Legal & Accounting

A good franchisor is always well protected against the risks of trusting someone else with their franchise. They will go through with the legal requirements before you even start, and also be protected against any mistakes you make. You will incur the cost of signing the contract (unless otherwise stated by the franchisor) and other necessary legal fees for opening the business in your city or state. If you get a franchise attorney (which is recommended), you will also incur this cost by yourself. The typical price for a franchise attorney is between $1,500 to $5,000.

Taxes

Do franchises even pay their taxes? Yes, like any small to medium size business, they have to pay local and state taxes. As a franchise owner, you are merely paying for the right to use the brand, along with the know-how of another established business. However, you are still a business with legal rights and responsibilities.

Management experience

If the brand’s products or services go with your own personality and goals, go for it. Managing a restaurant franchise is not the same as managing a tree service franchise, not in terms of sales, customer service, investment, and more.

It’s going to be hard to convince a (example) tree service franchise to take a risk with you if you don’t have any experience or proven skills with business management, either as an employee, supervisor, or owner of a previous business. Having the required capital and net worth won’t be enough if you’ve never proven to be a good manager or part of another small business in any way. A degree in business management certainly helps, but proven real-world experience is even better.

Finding Funds for your Franchise

Sat, 16 Jul 2022 18:00:17 GMT

When it comes to financing a franchise, you have various options—drawing assets from your retirement account, SBA loans, financing through the franchisor, home equity loans or second mortgages, borrowing from family or friends, or utilizing your own resources. If you decide to take out a loan or seek outside finance, there are several actions you may take to improve your chances of success.

When selecting how to finance your franchise, consider the following points:

Find out how much financing will cost in total. This covers interest rates, financing fees, the first six months of operational costs, and other elements.
Determine what personal assets you are willing to put at risk as collateral.
Make sure you understand the default terms and conditions for the financing alternatives you're considering.
Understand how the total and monthly payback expenses affect your present and anticipated cash flow.
Understand the debt's amortization plan, including how long you will have to pay it back and how your monthly payments or interest rates will fluctuate over time.

To become the ideal borrower, you must concentrate on the five C's: capital, credit, capacity, character, and collateral. This equates to available funds for a down payment, a solid credit history, adequate cash flow to meet debt repayment, past expertise in the business in which your franchise operates, and personal property to guarantee your loan. While not possessing all of these will not exclude you from receiving finance, the more boxes you check for your prospective lender, the more likely you will acquire the necessary funds.

Whatever method you choose to fund your franchise, there are five things you can do to boost your chances of approval.

Know everything there is to know about the franchise you want to acquire. Do your homework and be prepared.
With your lawyer or accountant, go over the franchisor's Franchise Disclosure Document, or FDD. The FDD is a goldmine of knowledge and the most significant document you'll read during the discovery phase.
Develop a business plan. Always bear in mind that the business may not scale up as rapidly as you would want, which implies that your prospective revenue stream may take longer to build than you anticipated.
Improve your credit score. A strong credit score is one of numerous elements that will determine your interest rate, payment terms, and loan amount.
Prepare your collateral funds. Most will want a 10 to 20% down payment to demonstrate that you have a financial stake in the financial success of your potential franchise.

Are you interested in learning more about financing your franchise opportunity? Please schedule a call...

Top 5 brands to open a franchise opportunity

info@econcept.biz (Robert Shipman) — Sat, 16 Jul 2022 18:00:17 GMT

N ow, if you’re ready to move on with the purchase of a new franchise, then you have to buy the right franchises; for this, you only need to ask yourself, “Do I have enough money to open a fast-food franchise? Can I give it a try at a hotel with seven (or more) figures? Is it worth it to start big or with a new franchise that’s less expensive?”

Also, you may have an excellent business idea or outstanding work ethic, but you will never achieve the success you deserve if you don’t have a lot of time and opportunity on your hands. And above all else, you need to know what you want. Once you do this, everything will start flowing as naturally as a river.

This is why, before deciding to change your life with the possibility of a new franchise , you need to answer the questions from the beginning and start working on your investment plan. In the process, you’ll discover that many of them are more available to you than ever. Buying a new franchise can benefit you and your family in ways you wouldn’t even imagine.

Looking for a New Franchise Opportunity? Here Are 5 Hot Brands / Industries

With hectic schedules, these days having a piece of a famous franchise helps you to “seek your joy” without worrying about the many issues that are involved with starting a business from scratch. There are great opportunities in the 2022 new franchises lists from which you can choose without doing that much of a research, but here you’ll find a list of 5 brands that may be beneficial for you and your economy in 2022.

#1. HomeMatters Caregiving -

#2. Gyms/Planet Fitness -

#3. PostalAnexx -

#4. ChemDry Carpet -

#5. Restaurant Heroes -

Why Choose a Small Business Franchise?

The biggest obstacle to the contemporary entrepreneur’s growth is capital insufficiency. And franchising allows companies to grow without the possibility of debt or equity costs. In comparison to purchasing an existing business completely or beginning a new one from scratch, a franchise has its advantages and disadvantages. Nonetheless, special requirements are needed, as becoming a partner in a bigger organization when you are a franchisee, makes you an essential part of a larger business structure.

Pros of New Franchises

Like most things in life, you have to ponder the advantages or disadvantages of any decision you are about to make, and with new franchises , this is no exception. Always remember to weigh the pros and cons of any franchise you have the eyes on, and if you have enough income to make it thrive. To make it easier for you, here are the main advantages and disadvantages of starting a franchise:

Advantages

Recognition
Support
Training
Great marketing and advertising
Financing assistance
Site Selection
Possible special discounted fees if you’re part of a minority or vulnerable group.

Cons of New Franchise

Disadvantages

Royalties
Franchise fees
No total control (franchisees attain to the franchisor’s will)
Termination clauses
Required purchases
Business uncertainty (as it sometimes it can be too new in the market)

Pick the Right Franchise Or Existing Business For You

There are many places to look for when considering buying a franchise , but going directly to the franchisor is the most obvious place to start; even more so if you already have a pretty good idea in which franchise you are interested in. By doing this, you can provide the franchisor with all the details you would need to purchase a franchise. This is the perfect way to start and pick the right franchise or existing business for you.

If you have no idea where to start regarding this new phase of your life, then you can consider a franchise consultant. A franchise consultant is someone who helps you decide, at no cost, what kind of franchise is better for you, and in case you’ve decided on the category or concept, a consultant can be someone that helps guide you towards the best brand for your goals and financial capability.

You can also try looking in any of the next options:

Newspapers
Internet (with caution)

To make this easier for you, here is a list of the 5 new franchises to invest in 2022.

Speak to your audience
You know your audience better than anyone else, so keep them in mind as you write your blog posts. Write about things they care about. If you have a company Facebook page, look here to find topics to write about

Take a few moments to plan your post
Once you have a great idea for a post, write the first draft. Some people like to start with the title and then work on the paragraphs. Other people like to start with subtitles and go from there. Choose the method that works for you.

Don’t forget to add images
Be sure to include a few high-quality images in your blog. Images break up the text and make it more readable. They can also convey emotions or ideas that are hard to put into words.

Edit carefully before posting
Once you’re happy with the text, put it aside for a day or two, and then re-read it. You’ll probably find a few things you want to add, and a couple more that you want to remove. Have a friend or colleague look it over to make sure there are no mistakes. When your post is error-free, set it up in your blog and publish.