Right Franchising

Tag Archive: franchise

A Veteran, a Franchise, and His Mother – Part III Evaluating

Part III:  Evaluating a Franchise Opportunity

Evaluating - Thumbs Up Thumbs DownBefore we talk about evaluating, let’s look back at Bill’s journey to find the right franchise for him:

Right Franchising presented four solid secure franchises that fit Bill’s criteria, investment range and his passion for a business.

Next step:  Evaluating the franchises that are a good match for Bill.

So, how do you evaluate a franchise?  Most people find this a daunting task and one in which they have little or no experience.

Let’s take it one step at a time:

Step 1:  Learn More About Your Preferred Franchise

Right Franchising will schedule a call with the right person for each franchise.  This will help us take a deeper dive into the details of each franchise.

Have you thought about the questions you should ask of each franchise?  Right Franchising suggests the following:

  1. What is unique about the product and services this franchise offers?
  2. What are the long term goals & growth strategy of your company?
  3. Tell me about how you will help me attract customers or clients.
  4. Tell me about the training and help in the field I’ll need.
  5. How much working capital will I need? What do you suggest?

Step 2:  The Franchise Disclosure Document.

Some of my clients refer to this as a good “door stop” document.  You will receive a federal document that has some great information in it but it is “HUGE.”    Most can be anywhere from 300 to 800 pages or more!

So, how do you take a bite out of this part of the elephant?

Next month, we will discuss Step 2 of evaluating a franchise —The Franchise Disclosure Document.   I will show you the best kept secret about how to quickly go through this document and get the information you are seeking.

To find the right franchise for you and make an informed decision, please email Gayle@RightFranchising.com for a free consultation.

A veteran, a franchise and his mother…

(c) Can Stock Photo

My franchise story this month starts with my client, Bill.  Bill is in the armed services. He has made a career out of the army.  No, he doesn’t strap on his field boots and gun every day, but he does wield a sophisticated system that trains hundreds of our men and women for combat.

I started working with Bill when he knew he wanted something more…something that was rock solid.  He said the government is great but there are constant restrictions and cutbacks.  So, we began our process of finding the right franchise for Bill that would give him that feeling of security and peace of mind.

Part I—The Assessment (10 minutes) which gives fast and accurate information about Bill.

First, Bill and I worked on understanding what interests him.  We spent about 30 minutes together and I was able to get to know him better.  We talked about his skill set, types of businesses he has thought about and his investment range.  But more importantly, we talked about what he really likes to do each day and what motivates him.  Bill loved to help people and has great organizational skills.  All of these are good transferable skills to a franchise.

Next, Bill took Right Franchising’s online assessment.  Ten minutes to find out the following:

1.        Should Bill actually own a business?

2.        If so, what values should that business have that Bill holds dear?

3.        What type of franchises would fit Bill’s skill set and risk-tolerance level?

Once we completed the Assessment, his Interest Inventory and a questionnaire, I went to work.  There are 4000 franchises out there and many are good; but some are not. As a certified franchise counselor, I work with franchises day in and day out, and know the ones that are good franchises with excellent return on investment and strong financial performers.

Right Franchising found four good franchises that fit Bill’s criteria and met his investment range.  We also made sure the territory was available.

Next week, I will post our results and how Bill chose the right franchise for him and, oh yes, how his mother became an integral part of his business.

To learn more about franchising and if it is the right path for you, please reach out Gayle at 832-864-2687 or Gayle@RightFranchising.com.

Today Is Your Last Day…

Last Day (Today) graphic

Would You Be Prepared to Hear That Today?

It was a bright sunny day when I told the manager that today was his last day. He did something I wasn’t expecting. He bolted from the room and started running through the warehouse!

I ran after him in my heels. You see, I was the Human Resources Director that told him, “Today is your last day.” I chased him to his car where he was slamming the car door over and over again. I approached him cautiously. I said, “You don’t understand, we have a severance package for you.”

He said, “You don’t understand, we just bought a new house and we have a baby on the way!”

That is when it happened! I knew I had to find an alternative to the J.O.B. There had to be something else where people are more in control of what happens to them. And, I wanted to be in control of my life, and my income.

(c) Can Stock Photo (Franchise) TodayI found franchising. I begin to get excited when I read the following:

  • Retirement Fund Contributions (Pre-taxed Dollars):
    • Employees are capped at $18,000 annually
    • Business Owners may contribute up to $50,000 annually

Source: Bureau of Labor Statistics Study of the American Worker

So, if you could gain control of your life today as well as put aside up to $50,000 annually, why wouldn’t franchising be an option? I believe it is!

Owning a franchise is the best assurance you can get that you will never hear these words, “Today is your last day.” Please call me at 877-307-1458 today for a free consultation to learn more about franchising and if it is right for you.

Here is a free gift to you. Take our free assessment below and see if a business is right for you – today.

FREE Business Assessment

Gayle Sutton
Certified Franchise Consultant 877-307-1458 or Gayle@RightFranchising.com
Right Franchising.com

Franchises: How to Buy One…

…And Still Afford Lunch (not just at a Franchise)

Most people drive down the street and see McDonald’s, Burger King and Chik-fil-A.  They believe that is the extent of a franchise.  So, let’s look at some facts.  Below is a good statistic provided by the International Franchise Association that shows the financial cost of a franchise and the percentages of franchises found in each financial segmentation.

Cost of Franchise Businesses graphic

 

Notice that 52% are under $100,000.  This figure would include everything you need to open the franchise, and often includes three months of working capital.  With a 690 or better credit score, you would put down $20,000 or $30,000, and the remainder would be funded with an SBA loan or other funding sources.

Also, notice that only 5.6% are over $500,000.  A McDonald’s franchise costs around $1.8 million for example. Of those 5.6% of franchises, they fall in many categories; restaurants are more likely going to be at the higher-end cost. There are great franchises for $500,000, and great franchises for $75,000 or less. I’ll help you choose the one that fits your needs best.

So, then you may be wondering, “If I invest more money, will I get a better return or a higher profit margin?”  It has been my experience as a certified franchise consultant that there is NO automatic correlation between the cost of the business and the PROFT it can earn.

Surprising? Yes!  But when you want to really evaluate a business, the best approach is to figure the net profit the business can generate.   So, what is net profit?

“Net Profit is the actual profit made on a business transaction, sale, etc., or during a specific period of business activity, after deducting all costs from gross receipts”, as defined by Dictionary.com.   It is easier to say, sales minus expenses.

Right Franchising understands this and matches candidates to the right franchise; one you can afford and one that generates a solid net profit for you and your family.  We do this with real numbers that you can validate with other franchisees (other owners) in the franchise system.  It is easy to do and really helps you make an informed decision.

So, if you’re ready to take the next step of checking out a Franchise, give me a call. I’d love to help you find just the Right Franchise! Franchise.  Call me at 877-307-1458 and let’s get started!.

Looking For New Business Funding?

Funding graphicBut, You Have a Few Funding Questions…

Like:

  • How much money will I need? 
  • How do I go about funding a business? 
  • Is the funding safe?

As a franchise consultant, my clients usually have two fearsFear of failure and fear of funding.  In this article we are going to address funding, and in our next Blog post we will address fear of failure.

How to Fund a Business

Most people have bought a house or a car but a business!  How does one even start to understand where to find the money to fund a franchise?  Here are four interesting facts below and four good ways to fund your franchise.

 It is easier to fund a business than to buy a home. You just need the right sources.

  1. Learn from Gayle at Right Franchising ways to fund a business that are safe, proven and provide peace of mind as you start your business.
  2. We find good sources with low interest or no interest rates for our clients.
  3. Right Franchising will provide funding assistance and analysis. So you make the right decision and avoid costly mistakes.

So, there are better ways than to go to my local bank?  Yes! Because banks have less money to loan, and they have increased their requirements which often makes loans out of reach for most people and some investors.

Types of Funding Plans

  • Rollover of funds – without debt, penalties or interest and the government assumes 40% of the cost of the franchise.
  • SBA Express Loans – offers Small Business Loan Express (UNSECURED) loans with loan limits up to $150,000, which are easier and faster to process.
  • SBA Loans – Loans with 20 to 30% down depending on credit score and debt ratio. These loans are for franchises that are from 150,000 to 1 million plus.
  • No Money Down Loans – these loans require no money down and one can borrow up to $100,000 or more in some cases.

Don’t let the fear of funding stop you from owning a strong performing franchise or business.   There is no charge for the conversation only good solid information to help you learn about funding.  Your desire for a business may be within your reach and you just need information.

Please call Gayle at 877-307-1458 or email me at Gayle@RightFranchising.com to schedule a brief 30 minute call.

Copyright 2015