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“HORN IN" On Franchise / Business Ownership

a monthly post with blurbs, links, and other words-of-wisdom

regarding self-employment; career transition;

and franchise / business ownership;

as well as information for business owners

who may be interested in franchising their business.

  

October  2018

 

Franchise Opportunity Knocks

Self-employment Beckons

Start answering the call right here.

News you can use to help you find

The right franchise / business opportunity for you.

 

“At first dreams seem impossible then improbable and eventually inevitable. ”

                                                    -Christopher Reeve 

 

FOUR LEVELS OF FRANCHISING

What Type of Franchise Arrangement is Best for You?

Deciding on the level of franchising that best fits your needs is almost as important as investigating and choosing the right franchise. Below are the four levels of franchising, which include information on the territory specifics, the required level of participation, and the typical liquid capital requirements. It is best to consider all aspects of each level, before deciding upon a level in which to invest.

 Single-unit Franchises

A franchisee has the right to operate one franchise unit. Most franchisees enter the world of franchising by owning one unit. It is a great way to get in and understand the system before taking on more units.

Territory: The franchisee may have a small radius of exclusive territory to operate within. If it is a retail store, the area of exclusivity may be a two or three mile radius around the store. If it is a home-based business the area may consist of a few specific zip codes.

Level of participation: The franchisee is very involved with almost all operations of this type. Even if it is a semi-absentee owned business, the franchisee will want to be present at the business and be as hands-on as possible.

Typical liquid capital required: $35,000 to $70,000 initial out-of-pocket investment required on a total investment of $55,000 to $200,000+

Multi-unit Franchises

The franchisee acquires more than one unit of the franchise, usually at reduced franchise fees. The risk is lower because the franchisee can take advantage of the economies-of-scale theory; by spreading costs across multi-units, the locations may be more successful. A good sign of the health of the franchise is if many of the franchisees are multi-unit owners.

Territory: There is usually no exclusive territory where the franchises must be set up. The franchisee may have one unit in one part of town with a surrounding radius of exclusivity, and another unit in another part of town 15 miles away or even in another county with its exclusive radius of operation.

Level of participation: The franchisee is less involved with each of the units operations, but will be managing multiple operations and will need to have some level of supervision in each unit. If many units are opened, a general manager and additional administrative and training staff may be needed. The franchisee is more of a general manager when many units are involved.

Typical liquid capital required: $70,000 to $120,000 initial out-of-pocket capital is required to take care of mostly the initial franchise fees. The rest of the investment is usually financed when each unit is opened.

 Area Development Franchises

This license usually grants the franchisee the right to open a certain number of franchises in a given area. There is usually a production schedule where the franchisee must open a certain number of franchises during a certain period. The franchisee has an exclusive area where no other franchisees can be allowed to open a franchise.

Territory: The franchisee maintains an exclusive geographic territory as long as the opening schedule is maintained. The territories range from a small city to parts or all of a larger city.

Level of participation: The franchisee will be very involved in the beginning stages of the first location to make sure it is successful. The franchisee will also need to be looking for qualified real estate to open the next few locations. Once several locations are open, the franchisee will need additional assistance to manage several units.

Typical liquid capital required: $80,000 to $150,000 initially to secure the area, pay all franchise fees and have additional start-up capital. The franchisee will then need to be able to finance the rest of the start-up costs for each of the franchises, as they open.

Master Franchises

A Master Franchisee, sometimes called a Regional Developer, has the rights to a larger area than that of an Area Developer. The Master Franchisee, in addition to opening franchises at a much reduced franchise fee and royalty, can also sell unit franchises, multi-unit franchises and area development franchises and make a nice return on the sale. The master usually receives a part of the royalty and franchise fee paid by each franchisee. There may be additional income available from distribution of products through the franchisees in the area and possibly even some real estate interest. The master becomes somewhat of a sub-franchisor for the area, without having experienced all the trial and error the original franchisor did. The master franchisee will usually want to open and operate at least one unit (pilot location), for income and use as a training center. Master franchises are not offered as readily as the other levels of franchising. However, when they are available they usually sell quickly. The income available from a master franchise is extremely lucrative. The initial investment is low compared to the type of value you can build in the master franchise area. The flexibility is also the greatest at this level.

Territory: Usually is a large metropolitan area, an entire state or even several states or country. It is an exclusive area and will remain exclusive as long as the master franchisee meets the development schedule of franchises in the territory.

Level or participation: The master franchisee will usually set up and operate at least one unit and use a manger to manage it while working on selling other “sub-franchises” and assisting them in operating properly. Very rarely is a master franchisee “hands on” in a unit franchise. They tend to spend more of their time operating like a business consultant or coach to their franchisees to help them become successful.

Typical liquid capital required: $150,000 to $350,000 is needed to acquire the territory and for initial liquid capital to start the area. Financing will be secured for the start-up of the unit franchise.

Perhaps a “Business Opportunity” is a better fit for you than a franchise?

Like a franchise, a “business opportunity” will have a start-up package, operational methodology, training and on-going support. A business opportunity charges an upfront fee that is comparable to a franchise fee, but there are no on-going royalty fees charged by the business opportunity company. A unique difference between a franchise and a business opportunity is a business opportunity does not have the rules and reporting requirements associated with franchise ownership. The quality of on-going support will vary widely across the spectrum of business opportunities. Some will provide very little, while others provide extensive continuing support and training. Business opportunities may be more suitable for experienced business people who desire the advantage of having access to a proven system with an organization to lean on for support from both the corporate staff and the other owners as well, but still have the opportunity to “do things their own way”.

NOTE: Typical liquid capital requirements, as well as total investment  amounts will vary based on the type of concept, real estate and geographic area.

 ********************************************************************************************* 

ENTREPRENEURSHIP

Is Living A Few Years Of Your

Life Like Most People Won’t,

So That You Can Spend The

Rest Of Your Life Like

Most People Can’t.      

                  -Unknown

 ********************************************************************************************* 

Questions To Ask Yourself… 

·       What are your reasons for wanting a business of your own?

·       Have you ever owned a business?

·       Do you possess the necessary attributes to be self-employed?

·       Can you make meaningful decisions without having 100% of the information?

·       What working days / hours do you want / need?

·       Do you want part-time or full-time?

·       Do you need flexible hours?

·       Where do you want your business to be located?

·       How far from home are you willing to travel to get to your business?

·       Would you prefer…office…retail…mobile…light industrial environment?

·       Do you want to manage employees?

·       Do you want to have inventory?

·       Do you prefer a cash business as opposed to one that carries accounts receivable?

·       How much liquid capital do you have to start a business?

·       What is your net worth?

·       What are you income requirements…1st year…2nd year, etc.?

·       Will franchise ownership be your primary source of income, or will it supplement other  income?

·       Will you have partners?

·       Are you interested in pursuing a particular business / industry?

·       Do you want a single or multiple unit business?

·       Have you considered master franchising?

·       How soon do you want your business to open?

·       Will you be involved on a full-time or part-time basis?

·       Do you have the total support of your spouse / family for buying a business?

·       When you find the “right” franchise / business opportunity, are you the type of individual who will be    ready, willing and able to “pull the trigger” and move forward with a new life?

********************************************************************************* 

STEM Based Curriculum

This concept provides after school services using STEM based curriculum to children ages 5-14.

The primary business of this franchise is after school programs for children aged 5 to 14 years old. We work mainly with and in schools and community centers. Our secondary line of business is providing outlets for children through such activities as summer camps, birthday parties, Scout functions, and private classes.

The programs we present are focused on being hands-on for the children. We have developed classes to instill our philosophy of "Skills for a Lifetime."

The four main areas of education that we offer are:

  • Aviation »
  • Magic Tricks »
  • Fashion »
  • Photography »

 Our franchisee model has been developed as a home based business. Of course the sky is the limit. In the event that your establishment grows, the opportunity to move into an office location definitely exists.

The exclusive programs, quality customer service, and the highest of standards that we have developed will help make you the leading after School Company in your area. We have found that our customers stay with our programs for many years.

The one-stop-shop service aspect makes it extremely convenient and the highly advanced operation methods makes our programs effective allowing one person to do the job of three people and three to do the job of six.

And ultimately, you will have the flexibility to extend your franchise in the different directions that match your lifestyle and works best in your area.

Total Investment: $48,000.

If you would like additional information, or to discuss in further detail, please call or send me an email with phone number and a good day(s) / time(s) for me to call you.

 

Quick-serve Snack Food Concept

A quick-serve snack food restaurant serving specialty, gourmet French fries with over 20 different seasonings, sauces and toppings; and fountain drinks, bottled water and home-made milkshakes for beverages.

Our Menu offers three options to achieve simplicity and creativity: a Specialty Menu of ‘go-to’ topped fry baskets that promote popular national and local dishes; a Finger Food Favorites Menu comprised of classic fried appetizer-style dishes-Original Pizza Logs; Buffalo Crunch Rolls; Crispy Chicken Fingers; and our Dutch Style Menu, which allows customers to choose a fry and one of 15+ dipping sauces.

In addition to these items, customers are able to customize their baskets across six styles of fries and over 20 sauces, seasonings and toppings.

There is a familiar saying you hear often when referring to the Lone Star State-   "Everything is Big in Texas". Well, that saying sure rings true for one of the most unique and novel franchise brands to come onto the QSR scene in years.

Our presence is fixin' to get big and introduced to fellow Texans statewide in the coming months in our largest Texas markets: Austin, Dallas, Houston and San Antonio. This phenomenal growth spurt comes just over a year after opening our first Texas franchise unit in the Alamo City, Labor Day weekend of 2016. Now is the time for prospective business owners and opportunistic entrepreneurs to consider our exciting franchise model and discover for themselves an opportunity where timing really is and can be everything.

 Four (4) flexible Franchise Business Models are offered:

·   Food Truck/Trailer/Cart,

·   Inline (food court, no dining room)

·   Kiosk (free standing 12 x 20 unit) and

·   Brick and Mortar (free standing,drive thru, dining room).

Our flexible concepts fit any real estate format including freestanding restaurants, end caps, in-line sites, gas and convenience, airports, malls, outlet stores, entertainment and tourist districts, cinema, travel plazas, universities, as well as other retail environments. There simply is no other competitive QSR franchise brand offered to prospective franchisees with such flexibility of choice in business model, endless store location sites to consider, and all achieved at an attractive development cost range of $105,000 - $250,000 dependent on the business model selected.

We are currently looking for hard working, motivated individuals to join our growing list of franchisees. Franchise opportunities are currently available in communities and towns throughout Northern, Southern Eastern, and Western Texas, of all major metropolitan areas.

We are looking for regional development groups that have a proven track record and are community leaders who may already operate other local businesses, such as other multi-brand restaurant development groups, retail outlets, convenience store chain operators, and movie theater operators who have the passion and financial qualifications to develop anywhere from five (5) to fifty (50) restaurants in these regions across the state. We are looking for qualified candidates with career work experience in any field (no restaurant experience required) and that are dedicated to their fields of expertise with proven track records to join our Texas team.

Our Texas franchisees will have endless opportunities to grow quickly into successful multi-unit franchise operators supported by our Texas franchise development team based right in the heart of Texas, San Antonio.  The Texas Master Franchise is owned and operated by native Texas businessmen with a vast array of industry knowledge and seasoned track records as successful business owners. One of the Texas Master Franchisors is a Texas Ex.

Franchisees get unsurpassed local support and services in every stage of franchise development from start to finish.

 Texas Master Tenant Broker and Site Selection Services

 Local pre-opening, grand opening and ongoing training and operational support

 Statewide vendor & supplier network customized for our Texas franchisees

 Franchisee business planning, consulting, financial and coaching support and services.

If you would like additional information, or to discuss in further detail, please call or send me an email with phone number and a good day(s) / time(s) for me to call you.

*********************************************************************************  

I highly recommend:

 If you are seeking top-quality financial / investment advice,

Teamwork Financial Group and Doug Moe...Texas Ex.

Doug is the CEO of Teamwork Financial Group in San Antonio.  He is an attorney and CPA.  He has provided valuable insight to me and my wife regarding investment / financial advice, including guidance on having a Will vs. Revocable Living Trust, re-balancing our investment portfolio, as well as assisting us move a portion of our IRA investments into Fixed Asset Annuities.  Over the past several months, I have had a number of very enjoyable meetings with Doug, since we have a tendency to spend time talking sports, as well as financial / investment stuff. Doug played basketball at UT in the 80s and is the son of Doug Moe, the former coach of the San Antonio Spurs. And, a great guy.

*********************************************************************************

Do You Need Furniture Repaired...

If so and in the San Antonio area, CALL Pat Bonney...Texas Ex... Owner of a Guardsman Furniture Pro. franchise...The Most Trusted Name in Furniture Repair. Pat was on the UT baseball team in the early 70s.  I have used Pat's service multiple times for a variety of furniture repairs in my business and home.  Great guy and fantastic service.     210-849-9663    Email: gfpsa@sbcglobal.net

 

Don't Just Change Your Curtains...

Change Your View. I DidMy Story 

2017 newsletters; as well as copies of 2016 and 2015 newsletters can be viewed by going to the Franchise Quest Website.  

Click on the Website link below, or go to:

www.franchise-quest.com 

Resource Center > Newsletter  

Small / medium size business owners:

Would you like to grow your business by franchising. 

$1,000 Referral Bonus $1,000

Additional Information Is Available at Franchise Quest

If you would like to visit, please don’t be shy about reaching out:

I’m a coach, not a sales person.

Hook 'em.

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