1. Franchising and the Entrepreneur Where else can we find a job creator, an economic stimulator, and a personal wealth creator that gives the opportunity to realize dreams and financial security for families beyond wildest expectations? …Dan DeBolt

2. Franchising A system of distribution in which semi- independent business owners pay fees and royalties to a parent company in return for the right to become identified with its trademark, sell its products and services, and use its business format and system

3. Types of Franchising Trade name Trade name Product distribution Product distribution Business format Business format

4. Benefits of Buying a Franchise Management training and support Management training and support Brand name appeal Brand name appeal Standardized quality Standardized quality National advertising National advertising Financial assistance Financial assistance Proven products and business formats Proven products and business formats Centralized buying power Centralized buying power Site selection and territorial protection Site selection and territorial protection Greater chance of success Greater chance of success

5. Drawbacks of Buying a Franchise Franchise fees and ongoing royalties Franchise fees and ongoing royalties Strict adherence to standardized operations Strict adherence to standardized operations Restrictions on purchasing Restrictions on purchasing Limited product line Limited product line Contract terms and renewal Contract terms and renewal Market saturation Market saturation Less freedom Less freedom

6. 10 Myths of Franchising Safest way to go Safest way to go Less money to open Less money to open Bigger franchise organization, more successful Bigger franchise organization, more successful Use 80% of business format Use 80% of business format All are the same All are the same No need for hands-on management No need for hands-on management Anyone can be successful Anyone can be successful Cheapest way to get into business Cheapest way to get into business All problems will be solved All problems will be solved Run things the way I want to Run things the way I want to

7. Franchising and the Law Uniform Franchise Offering Circular (UFOC) Uniform Franchise Offering Circular (UFOC) Federal Trade Commission-Trade Regulation Rule (23 major topics) Federal Trade Commission-Trade Regulation Rule (23 major topics)

8. Right Way to Buy a Franchise Evaluate yourself Evaluate yourself Research your market Research your market Consider your options Consider your options Get a copy of their UFOC Get a copy of their UFOC Talk to existing franchisees Talk to existing franchisees Ask some tough questions Ask some tough questions Make your choice Make your choice

9. Trends Shaping Franchising Multiple-unit franchising-a method of franchising in which a franchisee opens more than one unit in a broad territory within a specified time period 11% 11%

10. Trends International Opportunities China-1,900 franchises, 82,000 outlets McDonalds-119 countries, 10,000 outlets

11. Trends Smaller, nontraditional locations- intercept marketing: the principle of putting a franchisee’s products or services directly in the paths of potential customers, wherever they may be ex. Dunkin Donuts

12. Trends Conversion Franchising-a franchising trend in which owners of independent businesses become franchisees to gain the advantage of name recognition ex. Century 21 ex. Century 21

13. Trends Master Franchising-a franchise that gives a franchisee the right to create a semi-independent organization in a particular territory to recruit, sell, and support other franchisees

14. Trends Piggybacking-a method of franchising in which two or more franchises team up to sell complementary products or services under one roof ex. Taco Bell, KFC, Pizza Hut, A&W-Yum! Brands

15. Trends Serving Dual-Career Couples And Aging Baby Boomers