Franchise

Franchising 101: What is a Franchise Consultant?

For many of us, the idea of owning our own business and enjoying the freedom and independence it can provide is a worthwhile goal to strive for. However, you may get frustrated with the amount of work required to search for just the right fit for you.

A franchise consultant can provide invaluable assistance and experience to those looking to invest in the “right fit” franchise model.

I'd like to share essential information and provide you with more knowledge on what a franchise consultant does and how one can help when you are looking for the right brand for you.

What Exactly Are Franchise Consultants?

A consultant is someone who provides advice or knowledge in a specific area. A franchise consultant is essentially someone who guides you through the twists and turns of the franchise industry and advises you on how to navigate it.

If you are unsure of what you want, how to get there, or where to begin, a franchise consultant can help you define all of this and more.

What Does a Franchise Consultant Do?

Franchise consultants will meet with potential buyers to explore their interests and talents to select the ideal type of franchise. They assist at every stage of the process, from establishing their interests to directing them to suitable opportunities.

What Qualities Should You Expect in a Franchise Consultant?

Franchise consultants should collaborate directly with you. They should begin by examining your goals, learning your skills, and understanding your motivation for wanting to own a business. Next, you'll talk about your financial options and look into possibilities in your market to find the best match.

There are thousands of franchises to choose from, and most potential buyers find the process difficult. Franchise consultants are there to help guide you through the process. Here are some qualities to look for when selecting a franchise consultant.

Experience

You want to work with someone who has years of experience working on both sides of franchising, both franchisors, and franchisees. They should have prior experience as either a franchisee or as a key member of a franchisor's team. Ask for evidence of their experience.

Dedication

People will sometimes consult as a supplement to their primary business. Choose a consultant who will assist you in selecting the best opportunity and lead you through the process. They should involve help with paperwork and the initial set-up of your new business.

Their Reputation in the Industry

Their reputation in the industry is vital. You want to work with a consultant who is well-versed in the franchising world. Choose someone with a comprehensive understanding to help you choose the ideal franchise to fit your specific needs, goals, and strengths. Ask for referrals and what other candidates are saying.

Cost

Make certain that any consultant you work with is completely free. Look for an independent consultant, not one that is paid by a franchise to help recruit potential franchisees.

Quality List of Franchises

You don't want a franchise consultant to push specific franchises regardless of whether they are a good fit for you. Instead, you want someone with connections and a strong list of franchises for you to consider.

The franchise consultant should have diverse contacts for all types and sizes of investments. They should be well-versed in each, having conducted extensive research, including reviewing their Franchise Disclosure Agreements. You want to be certain that you are investing in something you can completely believe in.

Remember that the purpose of a franchise consultant is to match you with a brand that suits your requirements, goals, and talents.

If you’d like to find out how I can help you find your franchise match, please schedule a call here.

Why Will Home Service Franchises Continue To Grow In 2022?

Tens of thousands of people who quit their jobs in 2021 chose to become entrepreneurs and invest in themselves with a franchise. As a result, service franchises, particularly home services franchisees, experienced significant growth. This growth comes as no surprise to me.

While quick-service restaurants and many other brick-and-mortar franchises are still struggling, the pandemic has increased the appeal of service-based franchises from a business standpoint.

Our homes have grown increasingly important in recent years. We spent more time at home during the pandemic because of home-schooling and a shift to work-from-home jobs. Furthermore, the real estate market has been scorching. In 2021, housing prices in the U.S. climbed by approximately 20% over the previous year.

If you own a home services franchise or are considering purchasing one, here are a few trends to look out for in the next year.

An Increase In Technology-Focused Franchising Opportunities

Technology, as it has in every other business, has substantially altered how franchising operates. Franchise systems can manage their entire brand from a single dashboard. The same goes for franchise owners' marketing, sales, and operations.

Home Services Franchises Build Connections With Homeowners

When real estate is good, and values are rising, homeowners have the confidence to improve their homes using the equity in their properties. This positive growth in the real estate market is assisting in the expansion of home service franchises.

The appeal of home service franchises is that they can be both personally rewarding and profitable. Low start-up costs and high value are appealing, as is the chance to build long-lasting relationships while helping homeowners and their community.

Having an ongoing connection and multiple touchpoints with a customer is a franchise brand's dream. Home services franchises do just that.

Service Professionals Are Purchasing Franchises As An Addition To Their Portfolios

Multi-unit and multi-brand franchise ownership are not new concepts in the world of franchising. However, I'm seeing an increasing number of service providers add home services franchises to their portfolios.

As we look ahead into the remainder of 2022, I’m incredibly excited about what the home services franchise industry has in store. You should be too!

Would you like to be a part of the home services franchise growth? Please schedule a call here.

UPDATE: Read the trends for 2023 here.

How To Choose The Best Franchise FOR YOU

With various franchises in many price ranges to choose from and hundreds of resources and information packages to comb through, finding the right franchise opportunity is not a simple task.

To help, here are my top ideas for increasing your confidence and chances of success while evaluating franchise opportunities.

Define What You Wish To Accomplish

When starting a new business, it's important to have a clear vision of what you want to achieve.

Do you want to start your own business, make money, be your own boss, or have more free time? By defining your real goals, you will be able to identify which franchise model is a perfect fit for you and will assist you in achieving those goals.

You should figure out what your major motivator is. After you've determined this, you should think about what you like doing.

Do you enjoy working in an office setting?
Do you like a labor-intensive physical business?
Would you be effective at hiring, training, and supervising employees?
Do you prefer to work independently?

The answers to these questions can help you decide how to combine what you like doing into your business objectives and plan.

Do Your Research

If you already have a franchise in mind, the next step is to learn everything you can about the brand's history.

You'll need to learn about the company and its owners, how long it's been in operation, and if there's a demand for their service or products. You must also examine any boom or bust cycles and any new laws that may have an immediate impact on the business.

You should also consider how the economic climate has impacted its worth. This might be difficult at times, but remember that it's good to question the franchisor if there's something you don't understand, and don't hesitate to ask for additional information if you're not content.

Company culture is vital to company success, so examine if the franchisors prioritize network support and revenue growth or whether they are simply interested in bringing on new franchisees when existing franchisees exit the business.

A healthy connection between the franchisor, the support staff, and the franchisee is the foundation of a successful franchise business. If you don't like the personnel or the corporate culture, chances are it won't get any better if you become a franchisee.

Remember that while franchisors may try to wow prospects with flashy brochures and presentations, you'll need to look past those and dig deeper.

Compare And Contrast Training And Support Systems

Be sure you're satisfied with the assistance and training provided by your franchisor since this will be a critical component of your success.

Some franchises assist franchisees in finding high-quality employees and provide marketing expertise to grow rapidly. This assistance is great for accelerating your path to success while avoiding the drawbacks connected with launching a new business.

A successful business model should give the necessary assistance from the start, allowing you to get your business up and running and earn a healthy profit quickly.

If you don't have this sort of support, difficulties will develop once you've launched your business. Every successful franchisor should have a business model that has been tried, tested, and refined. They should know what works and what doesn't to provide you with all of the information and guidance you need to get started and stay on track.

Examine Your Financial Situation

Considering your resources will offer you a realistic picture of what franchise options are available for your budget.

Starting on a shoestring budget is risky and frequently unreasonable. Instead, you should search for a business model with low start-up expenses since this will make it easier to launch your franchise and start making money.

Most franchises will help you secure the necessary funding and the essential business planning to ensure that it is a viable opportunity.

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

Attending a Franchise Discovery Day? Follow These 6 Tips To Get Ready

Discovery Day is an excellent opportunity to experience a franchise before committing to a franchise agreement.

But what should you consider when attending a franchise Discovery Day? These six tips will help prepare you.

1. Prepare for possible ownership by doing your due diligence.

Carry out the essential research and planning before you attend. Most prospective franchise owners will need to research and prepare, especially in areas of business where they are not experienced.

2. Recognize the learning curve that comes with operating a new franchise.

Any new venture can be difficult. For many franchisees, this may be their first step into a business. Starting a new business can bring on new hurdles even for the most seasoned entrepreneur.

Becoming a new franchisee is a learning process, and embracing it benefits you, your employees, and the franchise. First, ask the franchisor about the support system, and then talk to other franchisees about how the corporate office follows that system.

3. Evaluate the franchise's adaptation and flexibility in the face of a changing economy.

Where can the franchise provide value to the local market and the franchise system?
Is there an absentee or semi-absentee option for the franchise owners?
Is there a system and culture in place that can pivot if future unforeseen circumstances occur?

For example, you should think about how the franchise can adjust when events like a pandemic occur.

4. Determine what success is.

Determine what success looks like, and then analyze the franchisor's procedures, growth strategy, and market tactics. As a potential franchisee, you can next decide if the franchisor's methods and values fit with your vision of franchise ownership.

5. Identify possible market hurdles that the franchise will encounter.

Unexpected hurdles will develop as a result of competition and company disruptions. Prepare for adversity, so when it happens, you are ready. Having the right procedures in place and executing them will only help your business grow.

6. Face your anxieties and be prepared to address your concerns when purchasing a franchise.

Make a detailed list of your concerns before attending a Discovery Day and pay attention to how the franchise addresses them.

Other franchisees are also an excellent resource, and the majority will have had comparable experiences. Ask if their anxieties and doubts were eliminated after starting their franchise.

Owning a franchise can be a very rewarding experience, which can provide a high level of flexibility, independence, and work/life balance. Regardless of the franchise you purchase, go to Discovery Day with a positive open mind to make it the best experience. After all, you are interviewing them as much as the franchisor is interviewing you!

Following my Discovery Day tips and asking the right questions can help you create a successful path forward as a franchisee.

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

Is Franchising For Entrepreneurs? Yes!

If you want to start your own business, you should look into the numerous types of opportunities available in franchising. For example, franchising can provide you with the income and freedom you need while removing the high-risk factor. So, instead of doing it alone, why not become a franchisee and join a vast network of like-minded business people?

Franchising is becoming a popular option for entrepreneurs looking to get into the world of business ownership.

Here are five reasons why franchising is ideal for those who want to start their own business.

1. It Offers The Ability To Be Successful

Franchises are well-established enterprises with a tried-and-true structure, so investors do not need to experiment with various techniques before experiencing success. As a result, franchisees can hit the ground running without the worry and uncertainty of beginning a business from the bottom up.

As a franchisee, you are still your own boss, but you have the security of a larger brand behind you. Because your success is their success, the franchisor will be dedicated to assisting you. In addition, they will always be available to offer advice and growth opportunities when you require them.

2. It’s Affordable

The franchising industry is enormous. Whatever industry you choose to work in, there will almost certainly be an investment opportunity that fits your budget.

Although many people assume that franchising is costly, there are savings to be made when you're establishing your franchise. For example, with an independent start-up, you might need to seek specialized advice or support services to assist with elements such as marketing, recruitment, and company growth. But, franchisors provide extensive training and support programs to get franchisees up to speed quickly.

3. It Offers Flexibility

Franchising allows you to achieve the ideal work/life balance. There are several part-time franchise opportunities available for those who have small children, are nearing retirement, or simply want the flexibility of running a business during the hours you want to work.

Also, if you're sick of your daily commute and want more flexibility, you may become your own boss without leaving your couch by joining a home-based business.

The most successful franchisors recognize that their franchisees are their most valuable asset and promote flexible and adaptable work schedules to assist them. As a result, they will be able to attract and keep great franchisees.

4. Ongoing Expert Support Is Available

Making the decision to start your own business might be intimidating. You are solely accountable for all aspects of your business, including any mistakes you make. For many people, this is the most important advantage of joining a franchise.

As a franchisee, you get to be your own boss while receiving the franchisor's assistance and support. When you join a franchise, you have access to a renowned brand as well as the franchisor's knowledge and expertise. Although you must be driven and devoted to success, your franchisor will be there for you every step of the way, ready to give valuable advice when you need it.

5. It Offers A Business Community And Networking Opportunities

When you open a franchise, you will have assistance not just from your franchisor, but also from your other franchisees. It's often reassuring to know that you can reach out and ask for support from others who have already conquered the challenges you're facing.

Most franchisors hold frequent get-togethers such as yearly conferences, regional gatherings, and general networking opportunities. As a franchisee, you are never alone, and having a wide pool of like-minded entrepreneurs accessible to you is truly empowering.

If you think you’re ready to become a successful business owner, please schedule a call here.

Top 6 Sources to Fund Your Franchise Venture

Many individuals have aspired to operate a business at some point, but deciding what products or services to sell may be tough. Franchises are an excellent option since they are already branded, so most customers are familiar with the franchise, and the product or service has been proven to match customer demand.

Many folks do not have the necessary cash lying around. So I've compiled a list of the top six funding options for getting the funds you'll need to get your franchise aspirations off to a successful start.

1. Franchisor Financing Options

Many do not think to ask the franchisor about financing and loan possibilities, maybe because they are afraid of setting a negative example by telling the franchisor that they need to borrow money.

Franchisors will know what type of financing has worked for their franchisees. Therefore, they can offer alternative options for franchisees like in-house financing to fill gaps where more traditional financing isn't available.

Many franchisors provide some type of loan financing. Many others may also provide no-interest loans, balloon payments, fund some of the expenditures themselves, or offer financing solutions for leasing equipment and operational costs.

2. Conventional Banks and Credit Unions

The primary benefit of approaching a bank or credit union for financing is that they will recognize the advantages of dealing with an established brand rather than an unknown start-up business.

To have a chance at this option, you'll need to get your credit in shape and have a detailed business plan in place. So get all of your financial documents in order. Banks will also look more kindly on you if you can invest some of your own money into the deal, perhaps 20%.

3. Loans for Small Businesses

In most circumstances, franchisees can get SBA loans if certain conditions are satisfied. For example, SBA loans require lower down payments and have longer payback terms than traditional bank loans, making them suitable for entrepreneurs just starting out in franchising.

Going through the SBA might provide you with additional financial support and lessen the risks that the lenders must take on with your business.

4. Home Equity

Using your property as collateral has been a popular financing method for franchise enterprises. To qualify for an equity loan, you must demonstrate that your house has retained or increased in value.

Take the time to sit down and calculate how much money you will need. You don't want to put yourself in a financial position where you can't repay the loan and lose your home.

5. Retirement Plans

Many people are unaware that you may invest up to 100 percent of your retirement funds in a franchise without paying taxes, penalties, or taking out a loan under a program known as Rollovers as Business Start-Up (ROBS). Your retirement funds can also be merged with your spouse, partner, or traditional business financing.

6. Stock Assets

Don't forget about that penny stock you bought on a whim years ago and is now paying you back generously. Stocks, bonds, and mutual funds can help you finance the franchise or contribute to a loan granted by a lender.

If you want to go into the franchising industry, the expense of getting started should not be a concern because there are several ways of gaining the funds you need to get started.

Are you interested in learning more about financing your franchise opportunity? Please schedule a call here.