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Franchise Training Programs Speed Up Profits

 “Franchise ownership is being in business for yourself but not by yourself,”  Merri Cronk

One of the greatest advantages of investing in a franchise instead of starting a business from scratch is that franchisors provide training to help owners launch and run the business successfully. 

When starting a business from scratch, you are by yourself and left to either figure out what works or find someone with the expertise in areas you don’t have. While this is possible, it’s very time consuming. And, time is money in business. The longer you take to figure out what works, the more you delay profitability.

So, if you would rather take the fast route, what can you expect from a franchisor in the area of training? Here are a few questions to ask about what is provided before a launch and afterwards.

Franchise Pre-Launch Training Check List

  • Does the franchisor provide written documentation or training manuals/digital training programs?
  • If your franchise is a brick and mortar business, will someone from the corporate office provide training on site? Or, will you and your staff need to travel to the corporate office?
  • Does the training include repetition to ensure that you and your staff are ready to provide the level of service desired by the franchisor?
  • Does the training include the following topics?

Real estate selection and site development

Product or service knowledge

Standards and procedures

Leadership training

Management skills

Problem solving skills

Human Resources management and training

Customer relations

Branding management

Marketing, advertising, and communications

Merchandising and pricing methods

Safety, security, cleaning, and maintenance

Vendor relations

Inventory management

Financial management including book keeping and record keeping

Information systems and programs

Ongoing Franchisee Training

  • Will the franchisor provide refresher trainings at your location or as a group in another location?
  • Is there a fee or travel expenses required for the ongoing training?
  • Does someone from corporate do site visits to check for quality and train employee on any deficiencies noted?
  • Is there a system to train managers to train new employees?
  • Do they provide refresher courses or trainings on new procedures?
  • Do they provide resources for you to learn how to solve problems?  

Another important aspect one should consider when shopping for a franchise is whether or not the franchisor is forward thinking and adapting to new marketing and customer service trends.

“All franchises evolve with the economy, technology and customer needs, so it is important to find a franchisor that is working for the future of the business and anticipates changes before they happen,” said Merri Cronk, FranNet Texas Southwest owner and franchise consultant.

As you can see, there is a lot to consider when looking for a franchisor that provides great training services. If you want to save research time, consider using a franchise brokerage service like FranNet that fully researches the franchises they offer prior to offering them to clients to make sure they provide excellent training services that will help you have maximum success.  FranNet also provides free consulting up front to make sure the franchise you choose best meets the kind of business model, training and support you need.

If you would like to explore the franchises available through FranNet or sign up for a free consultation, click the “Get Started” button at the top of this page.

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Why You Should Start a Franchise While Still Employed

Not quite ready to leave your job but still want to invest in your future? Franchise ownership can make that happen.

Whether you’re happily employed, tired of the corporate rat race or stuck in a dead-end job, running a franchise part-time while you’re still employed is possible and can be a smart way to achieve your personal and financial goals.

Here are three reasons why it’s a good idea:

  1. Achieve Your Retirement Goals: If you’re happily employed but don’t think you can save enough for retirement on your salary, owning a franchise on the side can give you a way to build equity in a business that you can sell for a profit when you retire. Or, you can keep the franchise well into retirement and use the profits as a source of income.
  2. Escape the Corporate World: If you’re not enjoying your job, feel it’s at risk from downsizing or age discrimination, or you’re just plain tired of the corporate world, a franchise can allow you to generate a significant income stream on the side as either a safety net or nest egg to use after quitting your job. In both scenarios, you may need or want to keep your job for a period of time while the franchise ramps up to a financial level that can sustain you. Then, you’re free!
  3. Leave a Legacy for Your Family: A franchise can be a great asset to pass down to your children to manage as an ongoing income source. Or, they can sell it for a lump sum that can be used how they please.

At this point, you might be thinking this is an appealing option. But, you also might be wondering how you can run a franchise while working full time. It may seem daunting, but it’s easier than you think.

Many franchises are set up to run as “semi-absentee” ownership models. This means that the owner does not need to manage the business full time. They can hire people to run the day-to-day operations of the business, while they continue to work for another company – or enjoy more leisure time for family and hobbies.

According to Merri Cronk, Owner of FranNet Texas Southwest, this model works well for those employed full or part time – as well as for parents who need to juggle work and family responsibilities.

“Many semi-absentee models provide a great deal of flexibility, which allows people with children or serious hobbies to create a schedule that works best with their lifestyle,” says Merri. “It’s an especially good scenario for moms and caretakers.”

All of that said, franchise ownership is not for everyone. They do require a significant commitment up front while working at your other job. However, some franchises require less set-up time than others.

If this is intriguing but you’re not sure it’s a good fit for you, Merri and her team of franchise consultants will help you assess your readiness for no charge. If it makes sense to move forward, they can match you with a quality franchise that best fits your specific goals and lifestyle needs.

To learn more or sign up for a free consultation, click the “Get Started” button at the top of this page.

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3 Reasons Franchise Ownership is One of the Best Investments

When people think about the best investments for the long-term, they often think about buying stock, putting money in a 401K or becoming a real estate mogul. While these investments are all good ideas to prepare for retirement, there is another smart way to invest that many people miss – franchise ownership.

Here are three reasons why franchise ownership is a smart investment:

1Ongoing Income Past Retirement Franchise ownership can not only help you build up a nest egg before retirement but also provide significant income during retirement. If a business model is chosen that can be run by a manager, you can work part-time while still enjoying a full-time income flow well into retirement.

2. Equity Building – Franchise ownership also allows you to build equity in a business that can be sold to an investor or transitioned to family member. For example, if one spouse passes away, the other spouse will be left with an asset that can be either sold or continue to bring in income for ongoing support. While running a business might be overwhelming to some spouses, most franchisors offer a support system and training that could help them transition into managing it. If they really don’t want to do that, they could sell the business and invest the profits elsewhere.

3. Faster Wealth Accumulation – Another great advantage of franchise ownership is that it allows people to increase wealth more quickly than traditional business ownership. Because a franchisor has already worked through the challenges of finding a successful business model, a franchise can be up and running and generating income much more quickly.

If this investment option is intriguing and you would like to explore it further, click the “Get Started” button on the top right of this page and we would be happy to talk with you.

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3 Reasons Franchise Ownership is a Better Deal

When people think about owning their own small business, they tend to picture building it from the ground up: starting in their home office with just a desk and a dream, and slowly expanding and making a name for themselves over time.

While this can be very rewarding if you’re successful, there’s another way to go about it that has significant advantages. Instead of building your own business, you could invest in a franchise, which is a license to sell products or open a store in the name of a larger, already established company or brand.

But the question is: Why would you want to buy into a franchise instead of starting your own business from scratch?

Here are three reasons why franchise ownership is a smarter way to go.

  1. Profits Can Be Achieved Faster with Franchise Ownership

When you start a business from scratch, it takes an enormous amount of work to get everything set up – from creating a business plan and obtaining financing to choosing a name and building a website.

Then, you have to figure out which marketing techniques are going to work best and how the operations will run the most profitably. Many times, these efforts are trial and error, and all these processes take an enormous amount of time to develop. Sometimes, this learning curve can drag out for years and take so long that the business runs out of cash and must close.

With franchise ownership, most of these action items are already figured out which allows you to hit the road running. Franchisors test various processes and systems until they establish a profitable model. Then, all you have to do is follow their systems to achieve success.

While there is still some experimentation at the franchise ownership level to see what works best in your location, the large portion of work that is already done allows the franchisee to achieve higher profits much faster.

  1. You Are Not Alone in Franchise Ownership

With traditional entrepreneurship, many business owners find themselves in a lonely place, with no one to serve as a sounding board and provide advice as they struggle to learn the ropes.

They also have to find training solutions that fit their needs – or forgo training altogether due to the cost. Oftentimes, these training programs are costly and not the exact solution the business owner needs.

On the other hand, most franchisors provide support and have developed training programs to help the new owners learn the exact systems that will allow them to succeed.

In addition to providing training, franchisors can offer guidance and trouble shoot problems. On top of that, new franchisors have instant access to other franchise owners who have already tackled similar problems and can offer advice from an ownership perspective.

  1. It’s Easier to Obtain Financing

If you’re buying a franchise, it can be easier to obtain financing than if you’re starting a business from scratch. Why? The bankers believe that your chances of success are better, which makes you less of a risk. They know that the systems and training franchises have in place will help you succeed.

For those same reasons, there’s also a higher chance of getting a larger loan than what you could get starting a traditional business.

These are just three reasons why franchise ownership is a better deal, but there are many more. If you’d like to learn more reasons and get the ins and outs of franchise ownership, join us for one of our free webinars by clicking here, or sign up for a free consultation with one of our local franchise consultants. Just click “Get Started” at the top right side of this page.

 

 

 

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How to Buy a Franchise

Thinking about buying a franchise but not sure where to start? The first step is to gain an understanding of how the process works. To get started, read the 10 steps outlined in the article. If you prefer personalized assistance to walk through the entire process in depth, we have franchise consultants throughout Southwest Texas to help you for no charge. Just click the “Get Started” button at the top of this page to get in touch with us.

Step 1: Learn About Franchise Ownership Benefits & Challenges

Franchises offer many benefits compared to starting your own business from scratch, but they are not for everyone. Take some time to attend a seminar or workshop to learn about the differences so you can decide if it’s the right choice for you. To get started, sign up for a free workshop or webinar.

Step 2: Assess Your Personal Readiness

To begin your franchise journey, you and your family need to be prepared to invest a lot of time and emotional energy into starting the franchise. While the process to start a franchise can be much faster than starting a new business concept from scratch and many franchises eventually allow for a nice work-life balance, the launch process can take a lot of time up front. Are you and your family willing to make this sacrifice for a temporary period of time?

Step: 3 Assess Your Strengths

While the franchise you choose may be in a field you are experienced in, building a successful franchise is largely about making sales. So make sure you are comfortable with the marketing methods recommended by the franchisor. It could range from cold calling to networking in the community. Ask yourself if you are comfortable with these types of sales methods and can be good at them over the long term.

Also, if you or your family members plan to work in the franchise, assess your knowledge and management skills. Are you knowledgeable about how to successfully run the daily operations of that type of business?

Step 4: Assess Your Financial Readiness

Franchise costs can range from $500 to $1 million and up so you will need to be prepared with enough cash or financial backing to come up with a 20 percent down payment on a loan. On top of that, you should have access to capital to cover your living expenses for a year, business expenses for six months and if possible, some extra money to cover unexpected issues that come up. In addition, you may need to set aside a little more money for marketing up front to launch successfully.

Step 5: Determine Your Long-Term Financial and Personal Goals

It’s important when considering franchise ownership to first think about the end result you desire. Are you looking for an asset to eventually sell to pay for retirement? Or, would you prefer a business that provides residual income during retirement?  The answers to these types of questions will help you decide which types of franchise is best to meet your goals.

Step 6: Determine the Best Type of Franchise for You

Do you want a business that you’re actively involved in or one that you can let someone else manage? How much time do you want to invest in the franchise? Are you looking for personal fulfillment by serving others in your business or simply a profitable income that allows for the lifestyle you desire? The answers to these questions will help you decide which type of franchise is best for you.

Step 7: Find a Quality Franchise in the Industry You Choose

Thousands of franchise options have cropped up over the years and not all of them are operated in the best manner. Make sure you research the franchise thoroughly by doing online research, asking existing franchise owners about their experiences and talking to a knowledgeable franchise consultant who has your best interest in mind.

Step 8: Research the Market Where Your Franchise Will Be Located

Before you make a decision about the franchise to invest in, make sure to thoroughly research the market where your franchise will be located. Many franchises sell the rights to certain geographic areas. Most all franchises have competition so you will need to figure out how much business you will need to gain to have the income you desire in your market.

In addition, the demographics in these areas may be more or less favorable to your franchise concept. For example, rural areas can be more challenging than cities for making high volume sales. A city’s culture can influence success as well. For example, in Austin, Texas, fitness tends to be a high priority for residents. So a fitness-related franchise could tend to be more successful there.

Step 9: Do Your Due Diligence

When buying a business, there are many financial and legal details to research and review. Investing in a franchise is similar but has a few additional considerations. For example, the franchisor is legally required to provide you with a Franchise Disclosure Document or FDD. Make sure to review the FDD carefully with a franchise consultant, CPA and attorney to make sure you understand it well. Also, be sure to talk with existing franchise owners to get a realistic idea of what it’s like to run that particular franchise.

Step 9: Sign the Papers!

After you have thoroughly researched the franchise opportunity, you will be ready to review and sign the contract. But first, be sure to have a franchise attorney review the final contract to make sure it’s in your best interest prior to signing it.

Step 10: Follow the Franchisors Training and Guidelines

One of the advantages of owning a franchise is that its founders have already experimented with many different operations and marketing techniques and have come up with a winning formula. While there is some opportunity to try your own techniques with certain franchises, sticking with the franchisors recommendations will give you best chance for success.

If you would like to explore each of these topics in more depth for your situation, FranNet Texas Southwest offers no-cost consulting in Texas cities including Austin, San Antonio, Waco, El Paso, McAllen, Brownville and Laredo. Just click the “Get Started” button at the top of this page to schedule your free consultation.

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