Is Franchising Right for Me?

IS FRANCHISING RIGHT FOR ME?

CHARACTERISTICS OF A SUCCESSFUL FRANCHISEE

Just know that different franchisors are seeking different things, depending on their business model and whether you plan to be an owner operator or semi-absentee owner who manages the manager. Those characteristics required of someone who owns an oil change business are going to be quite different than those in the senior care field. And those who operate an IT services business is going to be drastically different from someone who owns a fitness franchise.

When it comes down to who you have to be to be a successful franchisee, it’s not a one-size fits all solution. However, I do believe it is helpful for you to understand those characteristics that seem to among the most important in business and especially in working within franchising.

OPTIMISMFranchisors are looking for people that are optimistic and approach business and life from a positive place.
DETERMINATIONStarting a business, ANY business, takes determination. You need that “failure is not an option” attitude. Success doesn’t happen overnight.
TEAM PLAYERAlthough you will OWN your business, you represent the brand and are one of many franchise owners. Franchisors want franchisees that are collaborative, transparent, and work well with others. Just think of what you can accomplish if you have 100, 200 or 300 team players working together for everyone’s success. How powerful is that? That’s what makes franchising great.
MANAGEMENT SKILLSHaving management skills and experience is a big plus and franchisors are seeking franchisees  that can manage a team and scale their business.
LEADERSHIPLeaders inspire and help employees understand the VALUE they bring to the business and your customers. Leadership skills are beneficial to your business and ultimately your success.
ACCOUNTABILITYFranchisors have systems in place that help franchise owners remain accountable to their business. That’s one of the reasons why franchise businesses outperform independently owned businesses in the same industry. They help you understand those areas of the business and performance metrics that require your constant focus.
SALES ACUMENDo you have to be salesman to own a franchise? No, but some franchise business models do rely on sales to drive revenues. In those circumstances it makes sense to hire talented sales professionals and provide them with incentives to reach and surpass sales goals.
TEACHABLESuccessful franchisees don’t think they know everything. They keep an open mind and learn what they don’t know, this way you can always be adapting and improving.

Slide Free resource FREE RESOURCE CONSULTATION AND MATCHMAKING PROCESS At Smart Franchise Investing, we have a great process for helping people understand the franchise due diligence process and determine those franchise options that make the most sense for them. This document outlines that process and should be used as a resource as you are working with us so you can make the most of our FREE franchise consultation and matchmaking services. It’s also recommended that you share this document with your spouse or a partner that may be involved in your decision making process. DOWNLOAD Slide The Now Massage FEATURED FRANCHISE THE NOW MASSAGE The NOW is a boutique massage studio and lifestyle brand that provides a space to escape the daily pressures of life. Founded on the idea of being in the moment, The NOW fills the void in the market for a high-quality, affordable massage in a serene setting—without the need to commit to the whole spa experience. From soothing add-ons, to crystal healing, to herbal heat therapy, clients enjoy a customizable luxury experience that doesn’t break the bank. LEARN MORE The Now Investment: $414,850 - $692,600
Franchise Fee: $60,000
Royalty: 6%
Locations: 16 open / 100 sold Slide FEATURED FRANCHISE NAUTICAL BOWLS FEATURED FRANCHISE NAUTICAL BOWLS Consumers are increasingly seeking healthier eating options and Nautical Bowls has what they’re looking for - fresh açai bowls that are organic, dairy-free, gluten-free and plant-based with no refined sugars. They serve up bowls in two minutes or less packed with superfoods containing essential vitamins and nutrients. With a truly unique product offering, low-cost investment, and highly profitable business model, Nautical Bowls is strongly positioned to be the next healthy fast-casual leader. LEARN MORE NAUTICAL BOWLS Investment: $150,000 - $250,000
Franchise Fee: $30,000
Royalty: 6%
Locations: 7 open / 29 sold Slide HELLO GARAGE FEATURED FRANCHISE HELLO GARAGE Let’s face it, for most people, the garage is the home’s true front door. So, at Hello Garage, their mission is to transform garages and create remarkable customer experiences — they elevate the garage from cluttered junk drawer to America’s true front door. The possibilities for residential garage transformation are endless, but the Hello Garage franchise currently focuses on concrete floor coatings, storage cabinets and accessories like slat wall and lighting. LEARN MORE HELLO GARAGE Investment: $118,309 - $159,679
Franchise Fee: $49,500
Royalty: 6%
Locations: 29 open / 100 sold Slide FREE CHECKLIST FREE RESOURCE THE ULTIMATE FRANCHISE BUYERS CHECKLIST New to franchising and not sure how to best investigate a franchise opportunity? Not all franchise companies are created equal and not all franchises are the right fit for you. My Ultimate Franchise Buyers Checklist breaks your investigation down into logical categories and provides you with the specific questions to ask and things to look for when buying a franchise. I welcome you to download our FREE CHECKLIST and urge you to read this document BEFORE making a decision to buy a franchise. DOWNLOAD Slide PREMIER MARTIAL ARTS FEATURED FRANCHISE PREMIER MARTIAL ARTS Founded in 2004, PMA is the leader in the martial arts industry due to its; low start up costs, proven documented systems, strong leadership, successful franchise owners, and exceptional unit level economics. PMA is focused on teaching children lessons of success such as; focus, discipline, respect, confidence, leadership, etc. Helping them become good citizens, increasing their focus, getting physical exercise, and obtaining goals. LEARN MORE PREMIER MARTIAL ARTS Investment: $108,476 - $318,237
Franchise Fee: $49,500
Royalty: 7%
Locations: 175 open / 632 sold Slide TEAMLOGIC IT FEATURED FRANCHISE TEAMLOGIC IT Virtually every small business in the country depends on technology to operate – computers, email, security, data backup, networks, and more. When their technology stops working, so does their business. TeamLogic IT franchisees provide comprehensive outsourced IT services to small and medium-sized businesses. Services include everything from simple maintenance and repair for very small businesses, all the way to complex computer and network solutions for larger sized customers. LEARN MORE TEAMLOGIC IT Investment: $110,000 - $175,000
Franchise Fee: $45,000
Royalty: 7%
Locations: 236 open

WHAT’S EXPECTED OF YOU

It’s easy to get caught up into the excitement of franchising and all the possibilities that may be open to you. But it doesn’t take long until you start to understand that with being a franchise there also comes responsibilities. As you take a deeper dive into franchising and have conversations with franchisors, they’ll make sure you 100% understand what’s required of you. And although you may view the following from a certain perspective, just know that thousands and thousands of people opted to join a franchise irrespective of the following:

  • Investment – Franchisors include an investment range in the Franchise Disclosure Document which you will need to be prepared to make. Outside of the franchise fee (which averages $50k), the majority of the funds are similar to that if you were opening an independent business. They want to be sure you are prepared to handle the initial investment and have enough working capital and living expenses until the business can sustain itself and your needs.
  • Royalties & Ongoing Fees – Royalties typically range 6-8% of gross revenues and are paid electronically to the franchisor on a monthly basis. It is likely that you’ll also be paying a national brand / marketing fee of 1-2% of gross revenues. Some franchises will have a technology fees which is a fixed monthly fee and others may have fees related to call centers (common with service franchises).
  • Brand – Every franchise maintains brand standards that must be adhered to. Standards are in place to protect the brand and make sure individual franchisees are not taking liberties with the brand that could hurt the brand and all the franchisees. Franchisors expect you to abide by the brand standards and have penalties for those who don’t.
  • Follow the System – Franchisors expect you to follow their proven systems and for good reason. By doing so, it ensures that franchises across the country can provide a consistent product or service to customers. That consistency is key to building brand equity and optimizing the customer experience and satisfaction. They’ve also developed their systems for efficiency and profitability reasons. Not adhering to franchise systems could mean that you are jeopardizing the success of your business.
  • Territory – Each franchisee is granted a “protected” and exclusive territory. You are expected to stay within your territory boundaries and not infringe on other franchisees business potential.

ARE YOU BUYING YOURSELF A JOB?

The obvious answer to that question is NO. Franchising offers an opportunity to grow a business within the framework that a franchisor provides. In most cases, the framework has been proven to help franchise owners attain a reasonable (to sometimes high) degree of success.

If you were to buy a service franchise (chuck in a truck) and do all the work yourself, never hiring an employee, it may seem that you would be buying yourself a job. However, if you built that business up over the years and were able to sell that business for a substantial amount of money, then the franchise would be viewed as more of an investment. Owning a franchise makes you the boss, you make the decisions, and you don’t have to be accountable to anyone else other than your customers and the franchise system.

DO I NEED TO BE AN ENTREPRENEUR?

When I think of being an entrepreneur, I think of those people that are innovators in their respective industries that have forged new ways of doing things. People often use the word “entrepreneur” with “business owner” interchangeably, and I argue that it is wrong. True entrepreneurs are creators, developing every aspect of their business model and focused on how they are going to differentiate themselves in the marketplace by offering solutions to people that are unique. Conversely, a “business owner” doesn’t have to be an entrepreneur. In fact, there’s typically a lot of risk and financial resources connected with being an entrepreneur.

Why reinvent the wheel if you can benefit from the entrepreneurs that have created franchised business models that enable you to reach or surpass your goals? Thousands of people each year decide to become business owners, leveraging everything that franchising has to offer. You can too.

INDUSTRY EXPERIENCE NOT REQUIRED

Most people begin their franchise search looking for franchises where they have some degree of experience or in an industry they have been working in most of their lives. The fact is, most franchisors don’t require you to have and experience in their business or specific industry. They are looking for people with business acumen, certain personality traits, and specific capabilities and the rest they will teach you.

In my experience, people tend to gravitate to what they know because they are under the belief that they will have a higher degree of success with what they know. But if “what you know” hasn’t been able to help you achieve your goals up until now, why would you limit yourself? What people don’t realize is that they have picked up skills and abilities along the way that are transferrable to all kinds of businesses.

Getting back to the franchisor side of this equation, they actually prefer that you are a “blank slate” when it comes to their business. They don’t want to have to help you un-learn false assumptions and bad habits that haven’t served you in the past.