The Best Kept Secret in Business Today. Presented by Dan Olsen, Founder and Chairman
FG360 Introduction Growing, Selling & Supporting Successful Franchise Brands Established in 2002 Corporate headquarters - Mesa, AZ with satellite offices throughout the U.S. Franchise Consulting Professionals Growing number of associates across the U.S. 4,800 Franchise Broker/Consultant data base Offer Master Franchise/Regional Development and selected Single &Multi-unit opportunities Full Service Marketing Group
Franchising “ The single most successful marketing strategy ever created”. John Naisbitt –Author, Megatrends
Franchising A business with a high success rate 92% success rate overall 89% Success rate with single unit owners 96% Success rate with multi-unit owners
Franchising represents 8% of retail business locations and does over 40% of the retail volume because of… Brand Name Recognition Successful System Proven Support
There are four types of Franchises Single Multiple Unit Area Developer And.. Master Franchise/Regional Developer
The Best Kept Secret In Business Today.. MASTER FRANCHISING The Ultimate Business!
A Little-Known Business System as Your Best Vehicle for Business Success
Master Franchising The Ultimate Marketing System
Master Franchising MASTER Designated Market Area E E E E E FRANCHISOR
Income Sources Of The Master Franchisee 1.Franchise Fees – Usually 50/50 split on $35,000 -$49,000 $20,000 (Net Fee) x _________ (# of Franchises Sold) = $_____________ Net Franchise Fee Income
Income Sources Of The Master Franchisee 2. Ongoing Royalties – Usually 2%-5% of Total Sales 2.5% (Royalty) x $ _______ (Sales Per Unit) x _________ (# of Units) = $___________ Total Royalty Income
Income Sources Of The Master Franchisee 3. Distribution or Additional Services – Usually 10%-30% Margin of Wholesale Costs 20% (Margin) x $_______ (Wholesale Volume Per Unit) x ___________ (# of Units) = $__________ Total Distribution Income
Income Sources Of The Master Franchisee 4.Own Your Own Unit at a Reduced Cost - Lower Franchise Fee - Lower Royalties - Lower Wholesale Costs _________ (# of Units) x $______ (Average Profit Per Unit) = $_________ Net Unit Profit
Income Sources Of The Master Franchisee 5.Real Estate - Own Sites and Lease to Franchisees
The Investment Master Franchise Territory – Low $100,000 Most $130,000 to $250,000 Very Low Overhead- Can be Operated Out of a Home or Small Office Almost all Master Territories Include the First Franchise Unit at No Extra Fee Many Sell Later at High Multiples of Original Investment
A Very Prestigious Business You Own The Territory!
Responsibilities of a Regional Developer or Master Franchisee Award Franchise Licenses Find Real Estate Locations Coordinate Local Marketing Support Buying Power Ongoing Coaching FG360 will help support this process
Why Would the Franchisor Use Master Franchising to Expand the Brand? Speed To Market Quicker Brand Recognition More Franchisee Support
Improved Quality of Life Very Few Customers Very Few Employees Very Little Office Space You Build Equity Faster Low Overhead Own Franchises at Reduced Rates Exclusive Territories More Freedom Latest Technology No Experience Needed Part-Time or Full-Time Full Marketing Support from FG360
Qualification Ability to Work with People Follow a Proven System Good Attitude Financial Investment Business Experience
Long Term Master Franchise Benefits After Infrastructure is built Running a Region is not time intensive Ready for other master franchises if desired Ongoing Royalty Revenue Exit Strategy Why have an exit strategy? There’s great cash flow – average exit strategy is 5-7 years In the event of a sale, multiples are very substantial because value is based upon long-term contractual relationships
Why The Time Is Now Take Control of Your Future New Brand Opportunities Consumer Buying Needs People Are Looking For A Retirement Path In Business For Yourself, But Not By Yourself Full Marketing and Sales Support Working A Proven System
Thank You.