Right Franchising

Tag Archive: Franchising

Are You Seeking The Hottest Franchise?

(c) Can Stock Photo / alexmillosAs a franchise coach, I am often asked, “What is the hottest franchise?”

The answer is one that most people don’t like, “Well, it depends.”  What may be  a good franchise good for your brother Joe may not be good for you.  You may have different requirements, different dreams and different goals than your brother Joe.

So, how do you find the “best” franchise for you?  Most of our clients ask this question:

What is a good franchise that I enjoy, and that will work well in my market and for my life?

When I Googled, what is the hottest franchise, my search returned a lot of companies advertising all sorts of brands.  It was more gloss than substance.  You want to move beyond the gloss and ask these six questions:

  1. How much does it really cost?
  2. Will it work in my market?
  3. Can I still have the lifestyle I want?
  4. How much money will it make and when can I start making it?
  5. What type of support will I get?
  6. How stable is the franchise for long term growth and development?

Where Do You Start

To find a good franchise that works will in your market and for your life, start with yourself.  Write down the pros and cons of your last three jobs.  This will give you an idea of what you like.  Ask friends and family to help you understand your strengths and weaknesses.  You can also use our free business assessment to learn more.

Click here to start our free business assessment.

Funding

Visit with a good financial advisor, banker or 401K rollover specialist.  Learn what your options are for funding your new business.  It is always best to put together a plan of both your personal and business financial goals.  You want to be able to afford the business, as well as pay your personal bills, as the franchise starts to build and grow.

Your Market Area

Use data to understand your market better.  A good resource is www.citydata.com.  Notice the salaries in the area and the distribution of commercial versus residential.  Notice the average age of the residents in your area.

Family

Does your family support your decision to buy a franchise?  Most everyone has bought a house or car.  Buying this kind of business is a much bigger decision even though franchises are highly successful.  Your family needs to be involved and support you.  Ask these three questions.

  1. If we buy a business, will you support me?
  2. What type of support will we give one another to make this new business work?
  3. Who will do what if a family member wants to be actively involved in the business?
  4. And, finally, do you all agree on the overall budget for the business? Do your homework on funding.

Learn to Involve Subject Matter Experts (SME)

Are you an “Unconscious Incompetent?” Do you know what you don’t know? This is where SMEs can be handy.

Your SMEs should be a good franchise coach, accountant, franchise attorney and banker. Do your due diligence on the business. (Investigate the business long before you write a check)

There is a lot to due diligence.  But speaking with the other franchisees (owners) in the franchise system is where you will uncover a wealth of good solid information including true earnings, challenges and rewards of owning this business.

“Other factors to consider when deciding on a franchise: how long locations have been open, net
location
openings in any given year; and growth potential of the concept’s given industry. Finally,
investors should talk to established franchisees in the system.”  The Street

What is the hottest franchise?  It is one that fits you, one you can afford and one in which you have completed your due diligence.

Right Franchising helps our clients with finding the right franchise for them and then we provide all the tools to help them complete a thorough due diligence on the franchise.  We prevent costly mistakes.  And, most importantly, we help our clients make well-informed decisions.

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!.

FEAR – how we go past it!

(c) Can Stock Photo Fear Graphic

(c) Can Stock Photo

What do CAT scans and purchasing a franchise have in common? Fear.

 

As I write this, I am awaiting results from a CAT scan for my right lung.  I know in my brain that I don’t have Lung cancer (never smoked in my life) and yet, that little small voice keeps saying, “What if?”

I started to think about how sometimes my clients are fearful, but perhaps afraid to admit it because they perceive this as a weakness.   So, why are we fearful and how can we STOP being fearful?

For me, waiting on my CAT scan results, I need information.  Once I have this information, I can make an INFORMED decision.  My new clients are fearful because they don’t have the information they need to make an INFORMED decision.   At Right Franchising, we work together to provide good solid information so our clients will make an informed decision—no shot in the dark!

So, how does one become informed when considering buying a franchise?  First, know some basic facts about franchising:

Ray Kroc, the creator of McDonald’s® coined the phrase:  “Franchising is certainly going into business for yourself, however, not on your own.”  Trying something on your own generates extreme fear!   Franchising is the world’s most successful system for building and growing a business.  By its much defined processes, it helps eliminate fear.

If franchising is so successful, then why am I fearful?  CAT scans are successful too; but until I have the results, I remain fearful.    A good franchise consultant can provide the tools and expertise to find the right franchise that fits you, and then helps you investigate it thoroughly.  You will learn 3 important things during the “Due Diligence” period:

  1. Does the franchise make money, and what is my take home pay?
  2. Does the franchise support its franchisees, and is that support ongoing for the life of the business?
  3. Are the franchisees happy with the franchise, and with their decision to join the franchise system?

In conclusion, how do we defeat fear?  The truth is we don’t!  Even with my results from my CAT scan, I will have to trust that my doctors know what they are doing.  Even with a good solid due diligence, you will still be fearful when you purchase a franchise.  It is still a leap of faith.  The information you and I gather, about the franchises that fit you, helps make it a smaller leap with a very soft landing!

Free Gift from Gayle with Right Franchising

Have you ever wondered, “What do I ask a franchisor when I am interested in a particular franchise?”  For a FREE list of questions to ask franchisors, please Click Here..

If you would like to learn more about the RIGHT way to find the RIGHT franchise that fits you improving your odds for success, please click here: http://www.rightfranchising.com/contact.html