Presentation on theme: "Agenda Background Franchise concept Process and funding Myths and Realities Lessons Learned."— Presentation transcript:
Agenda Background Franchise concept Process and funding Myths and Realities Lessons Learned
Independent Business vs. Franchise Independent Business Owner Franchise Owner Brand AwarenessUnknownEstablished brand Control/AutonomyTotal freedomPlay by their rules CostCan start up on a shoestring budget, Control over investment decisions and timing Upfront franchise fee, ongoing Royalty and Advertising fees, Franchisor dictates remodels How to run your businessBuild it from scratchThey give you the playbook, training and coaching Operational ResourcesGo it alone Total freedom Tried and tested business – with an established system and support (training, real estate, advertising, product development, supplier network) Source: ”Independent Business or Franchise? How to Decide”, Curtis Kroeker, Inc., June 2013
Franchise + Fee Start Up + Investment Royalty Fee $27K$100K - $200K6% $45K$1M - $3M2% - 5% $15K$250K8% $40K$215K6% $5K$250K3% Source: www.entrepreneur.com 2013 Franchise 500www.entrepreneur.com What Does it Take to Become a Franchisee?
Why Cold Stone? Franchise Track Record Strength of the Product or Service Market Area and Trends Franchise Terms and Support
Paying for a Franchise #1 - You are selling yourself Getting an SBA loan: – You need good credit – 15-25% cash for a down payment – May require collateral – 10 – 25 year repayment terms – Patriot Express loans
Myth Myth: Franchise Owners are Rich!
Successes and Lessons Learned Working Capital Human Relations KnowYourself