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Franchising Path

Connecting You to Your Future

Franchising Path

According To The 2022 Economic Forecast, Franchising Will Help Lead The U.S. Recovery

The International Franchise Association (IFA) has issued its 2022 Franchising Economic Outlook, which indicates that franchising is a driving force in the United States' economic resurgence.

The research reveals remarkable employment and business growth over all franchising industries, from Personal Services to Lodging, through 2021.

What is the forecast for 2022?
According to the statistics, 2022 will be another excellent year for employment and salary growth in the fast-growing, locally-focused franchising market.

Oxford Economics research indicates:

  • Franchises pay approximately 3% more than similar independent businesses.
  • Health insurance is provided by 65% of franchises.
  • Vacation, sick leave, and other benefits are provided by more than 75% of franchises.

The following are some of the report's key highlights:

  • Following the 2020 shutdowns, franchise output returned by more than 16% in 2021, reaching approximately $788 billion.
  • Franchise growth is predicted to level out in 2022, with a 2.2% increase to 792,014 franchises, 17,000 higher than in 2021.
  • Franchise employment is expected to rise at a rate of 3.1% to 8.5 million jobs, returning to pre-pandemic levels and representing a net gain of up to 300,000 jobs.
  • Personal Services franchises are expected to dominate growth in 2022, followed by Commercial & Residential Services.

The report shows that states have seen varying economic recovery rates due to differences in business climates, migration trends, and changes in consumer preferences.

At the state level, it is anticipated that:

  • In 2022, states in the West and South will have the fastest rising trend of franchise business growth.
  • The Southeast region, which has the highest franchise concentration in the U.S., is expected to have 231,500 total establishments by 2022 while employing 2.6 million people and contributing $235.9 billion to the U.S. economy.
  • Texas, Florida, Arizona, South Carolina, Idaho, Tennessee, North Carolina, Utah, Montana, and Nebraska are anticipated to be the top ten states for franchise expansion in 2022.

Would you like to be a part of franchising growth in 2022? Please schedule a call here.

4 Tips for Choosing the Best Franchise for You

The key to finding the ideal franchise is to focus on yourself and your personal goals.

Although several franchise options are available, it is important to invest in a brand that is interesting to you long-term.

Choosing a franchise might be difficult because there are so many to choose from. So, how do you choose a franchise that is perfect for you? Here are a few things to think about.

1. Evaluate Your Finances
The first key to investing in a franchise is selecting opportunities you can afford. While you may have sufficient funds to cover a one-time payment, you also need to consider variable charges. A franchisor may want a minimal investment, but there may be additional costs to operate the franchise.

2. Align Your Investment with Your Personal Goals
Purchasing a franchise is a significant investment, and you should invest in a brand that you are willing to commit to and are passionate about.

Everyone has different motives for becoming an entrepreneur, so ensure that the brand you partner with supports your objectives. You should take pleasure in growing and strengthening your franchise.

3. Evaluate Your Strengths
Before acquiring a franchise, it is critical to assess your skills. You should evaluate whether your skills are suitable for what you would be doing as a franchisee.

For example, if you are a very organized, thorough, and operationally-oriented individual, you should match a franchise where you can use those qualities for optimum success.

4. To Make Things Easier, Work with a Franchise Advisor
Now is a great time to buy a franchise. Running a franchise is a tremendous responsibility, and stepping into the shoes of a well-known brand requires market understanding.

However, working with an experienced franchise advisor may help you with vital market experience. Your advisor's advice will help guide you in making a solid and educated decision.

If you’d like more information on how entrepreneurs choose franchises, please schedule a call here.

3 Tips for a Successful Discovery Day

A franchise Discovery Day allows potential franchisees to learn about the franchise directly from the franchisor. Attending a franchise Discovery Day is a great method for franchisees to get a ton of useful information in a short period of time.

What Is A Franchise Discovery Day?
At a typical franchise Discovery Day, a prospect who has obtained a Franchise Disclosure Document (FDD) and has met several initial requirements visits the franchisor's headquarters and tours various departments, as well as talks with franchisor personnel who deal with franchisees. A potential franchisee might attend a Business Discovery Day to ask questions and experience the franchise firsthand.

What Can I Expect On Discovery Day?
Discovery Day is a sales presentation for the franchisor, so there is a natural temptation to make it a "feel good" event. You should not be scared to ask difficult questions or seek clarity as a franchisee. If you're wondering what sorts of questions to ask during your franchise Discovery Day and want some pointers, I've put together a list for you to think about before attending your Discovery Day.

How Do I Prepare For Discovery Day?
These questions are not legal advice but rather observations based on years of experience. In general, before attending your franchise Discovery Day, you should try to obtain as much information about the franchise as possible.

Tips for having a successful franchise Discovery Day include reviewing the FDD, talking to your lawyer, accountant, and franchise consultant, as well as speaking with a number of existing franchisees. The FDD includes their contact information.

Obviously, if you do not receive the FDD until your franchise Discovery Day, you will not be able to fully participate in this process, but you should still ask as many questions as possible. You should also make sure you have a chance to ask the franchisor questions after you have the FDD and gather additional information.

Following my tips for Discovery Day and asking the questions will go a long way in helping you forge a successful path forward as a franchisee.

Find out more about Discovery Day by scheduling a call here.

Generations in Franchising: Regardless of Age, There is a Franchise For You

Today's fast-paced and technologically-driven environment enables more people, regardless of age or experience, to pursue independence and start their own businesses. Additionally, the ease of entry and minimal initial investment make franchising an appealing option for entrepreneurs of all generations.

Even though the motives for joining a franchise vary by generation, many businesses can attract Millennials, Boomers, and even Zoomers. A franchise’s approach to each franchisee's specific needs makes it an attractive option to all generations.

Millennials and Generation Z
Millennials are those between the ages of 24 and 39 who are the most active franchise buyers today. Furthermore, according to a recent survey, the number of franchisees under 30 is growing. Nevertheless, they are becoming an engaged workforce and are driving innovation and digitization in various industries.

And, even though Gen Z (born between 1997 and 2012) is only now entering their twenties, many are anxious to start their own enterprises and are beginning to join franchises.

What qualities do Millennials want in a franchise?
Technology and digital presence
They are the first generation to have grown up in an era of rapid technological advancement and the internet. This is why people born after 1981 want to work in the digital technology industry. Franchises with advanced technology and new mobile apps, for example, are ideal for tech-savvy Millennials.

Training and assistance
Younger generations, despite their ambition and resourcefulness, frequently lack industry-specific expertise. Millennials are interested in continuing professional education because of this and their internal motivation to improve themselves. With an online training platform, franchises can make it more accessible to master certain skills and compensate for a lack of experience.

Workplace culture, values, and social responsibility are all important considerations.

Millennials and Generation Z are more aware and aggressive about social and environmental concerns than any previous generation. As a result, they want to work with and associate with businesses that are genuine and committed to making the world a better place. Therefore, it is critical to have a work culture that is founded on equality and mutual understanding.

Boomers who are still evolving
People in their 50s and 60s who are primarily concerned with their retirement are a thing of the past. According to recent research, around four out of every ten entrepreneurs were over 50. People of that age are willing to take calculated risks and prefer to work with well-established businesses.

What makes a franchise a good fit for Baby Boomers?
A proven business model
Boomers are not interested in beginning a business from the ground up and wasting time in several trial and error situations. People over the age of 50 want to work with a franchise with years of experience in the market. Business models that have proven to perform and generate profits are important considerations in their decision-making process.

Protocols and systems that are well-established
The Boomer franchisees have a wealth of expertise and are anxious to put it to use. They do, however, place a high emphasis on the brand's pre-existing systems, automation, and processes. In general, Boomers prefer to apply their expert abilities to a well-established system that can assist them rather than reinvent the wheel.

Stability and security
Baby Boomers are devoted employees and business partners, and they expect mutual respect from franchisors and managers. In addition, boomers are less inclined than their younger counterparts to make risky investments, so they choose franchises with years of experience and are here to stay.

Regardless of your age and background, there are franchises that have everything you need to become a successful business owner.

Are you interested in learning more? Please schedule a quick call with me to learn more about your franchise options.

How Much Will It Cost? How Much Can I Make? How Quickly Can I Make It?

Like most people, your top questions about franchising are probably financial. 

  • What is the cost of a franchise?
  • How much money can I make?
  • How quickly can I get there?

Here's how you can find the answers.

What is the cost of a franchise?
The Franchise Disclosure Document contains critical information concerning any franchise (FDD). The FDD contains essential information concerning the franchise and operating costs and is intended to assist you in making an informed decision about your purchase.

You'll want to look at a few key points in the FDD to figure out how much you'll need to finance. First, there are the initial costs that must be paid to the franchise before opening. Secondly are additional fees, which may be recurring, occasional, or one-time expenses. Finally, the first investment or total upfront cost to acquire the franchise includes equipment, initial inventory, rent, signs, security deposit, training, and working capital necessary during the start-up phase.

What is the earning potential?
You should evaluate the franchise's financial performance. The profits of existing units are disclosed in the FDD. It should be noted that this data may only reflect a specific set of franchisees or corporate-owned franchises. Read the fine print to understand where the information came from, especially when comparing many brands. This will also help you learn how quickly a typical franchise ramps up.

How satisfied are the franchisees, and how are they performing?
When purchasing a franchise, validation is an important aspect of the process. As a potential franchisee, this is your opportunity to talk with existing franchise owners and confirm the benefits of the franchise opportunity. You'll also ask them questions to thoroughly understand franchisee satisfaction and financial success. It's essential to call numerous franchisees from the company's FDD list.

As you can see, thorough due diligence will provide you with the answers you need. Please schedule a quick call with me to learn about your franchise options.

Here’s How To Enter Into Franchising With Confidence

What is the key reason why many entrepreneurs decide to buy a franchise? The appeal and benefits of support, security, and assurance come from a well-established business model. Research leads to informed decisions. This research seeks to create the capacity to identify the correct franchise long before the franchise agreement is signed.

So, how do you know what to look for if you want to launch on a successful franchising experience? Research, visiting with current franchisees, and knowing when to seek assistance are all critical success factors.

Speak with Existing Franchisees
The best advice is to speak with many existing franchisees who are already associated with the brand. Assume that everyone has something valuable to share, and don't only look for the responses you wish to hear.

Talking to as many existing franchisees as possible, for example, at least 20 or more, can provide you with the inside information you want from a wide range of perspectives. This allows you to assemble together facts and establish critical connections regarding the franchise's integrity and overall impression.

Some of the most significant information comes from studying not just what existing franchisees say, but also what they choose not to say, their body language, and their general feeling of satisfaction with their decision to invest in a given brand. This type of interview technique enables you to conduct more in-depth research. Having live opinions and faces in front of you is quite beneficial during the early research stage.

Use a Franchise Consultant
Reaching out for the support of a qualified franchise consultant who is experienced with the franchise industry and investments is another excellent way to ensure a wise decision. A franchise consultant can help you learn more about potential risks associated with investing in any franchise.

Understand Your Startup Costs
When a franchise site is up and running, relying exclusively on the franchisor's evaluation of start-up costs may not tell the whole story, especially when the various expenses of different geographic regions are not considered. For example, consider the difference between operating a franchise in markets with varying real estate expenses.

Like with any new business venture, you want to enter into franchising with confidence. Doing your research and seeking advice will lead to an educated and confident decision. 

For more valuable info on buying a franchise, please schedule a call here.