90% success rate everything is defined in

Different types of franchise: product 3 options: (online business, FRANCHISING 3-10 years
a franchising system
distribution, business format transportation business,
franchise, and single-unit franchise traditional retail)

your going into a business to generate profit but

is a
also banking into the experience and system of
THE STRONGER THE BRAND IS THE your franchisor
A duplication of business
STRONGER IS THE BUSINESS
and agreement between
ADVANTAGES: two independent parties

HOW TO AVOID
FRANCHISE SCAMS:
The use of the owns Uses trademark/pays
Franchisor Franchisee
brand name trademark/receives investment fees
(consumers have fees
good awareness)
They don’t have
list of franchisees
Things to ask to the what does a franchisee
franchisor about the brings when investing?
Things to ask to the
Brand franchisor when business:
association Things to do as a
franchising: They don’t have
(customer franchisee:
MONEY TIME PEOPLE list of outlets
emotional
attachment)
How long
THE have they Study Financial
been They have
CUSTOMERS: How much money are How much time are you How do you handle Projections
operating? pressure tactics
Use of 4W’s you willing to invest? willing to dedicate? people?
system/operati
ons manual Know their
(proven operations, breakeven sales Legit franchisors have
systems and How many Unit Capital Active Skills and Abilities
Investment several social media
procedures in company Management (know (as an entrepreneur)
written form)
Size and ROI accounts (ongoing store
stores do they and understand how to
run the business) promotion, list of products)
have? Royalties ROI should be
shorter than the
Compliance to franchise term
Right location
the System
for the brand
Defined Advertising They have their own
(look for 3 How long Financial and
product/service options) Fees website (company profile
have they Operational
(only products Review franchise can be seen, list of officers,
been Responsibility (make Hire and Manage
and service listed agreement brief history)
franchising the business profitable) Your Employees
in the manual
and how Proprietory
should be sold)
many Products
franchisees Check IPO
Longevity/ Long Your Network (bring They have list of
do they Registration of
Term Plan your family and friends store locations
have? Lower Risks to be your customers the franchise