The Franchise King Blog

Attn: N.E. Ohio career changers!

We are co-sponsoring a  FREE seminar on franchising with National City Bank on May 16th at 6:00PM
This Free seminar will be focused on franchising as a career alternative.
Joel Libava, Cleveland's resident expert on franchising, will energize you with his eye opening session on franchise myths and facts.
{And the possible low cost of entry!}
National City Bank will inspire you with information on financing your new franchise, with descriptions of their current business loan programs.
They will also discuss SBA Loans, and  how and when to get one.
Location:
National City Corporate Center 23000 Millcreek Blvd. Highland Hills, Ohio 44122
1st Floor meeting room.6-8PM
Must register in advance, as space is limited to the first 40 residents that register.
Call 216-831-2610 to register or  Register Here!

Spend $10 dollars on airfare to visit a franchise company's HQ

The Associated press is reporting today that a new low cost airline is offering fares for as low as ten bucks....www.skybus.com

COLUMBUS, Ohio -- A new low-fare airline is advertising ultra-low prices as it prepares for take-off from Columbus. On its Web site, Skybus is now selling one-way tickets that cost as little as ten dollars between its hub in Ohio's capital city and destinations including Burbank, California, near Los Angeles; Portsmouth, New Hampshire, north of Boston; and Kansas City.  Service to those places are scheduled to begin May 22. Cheap flights also are being offered to other destinations, for flights set to begin later in May or in early June. They include: Fort Lauderdale, Florida; Oakland, California, near San Francisco; and Greensboro/Winston-Salem in North Carolina.  Skybus's $10 fares don't include taxes.

Are You A Potential Franchisor?

{This is a re-post of an article I posted last year, about this time. I am starting to get some phone calls from small business owners who want to possibly "franchise" their businesses...}

Franchising your current business could be an option for you, if you feel you are ready to take the next step in your growth cycle. Great wealth has been created by a multitude of business owners who have used franchising as their growth vehicle. If you are starting to think big as it relates to your business, fasten your seat belt! This could be a fun ride…….

One huge advantage with franchising, is that you can use OPM {Other People’s Money}, to fund your expansion. Another words, if you choose instead to add more business units by adding “company stores”, it can get very expensive. Obtaining large loans or getting investors can be challenging, and expensive. By using OPM, they put in their capital to fund your expansion. Of course you will still have to make a sizable investment for infrastructure, marketing, technology, and support, but your franchisees open the units, and run them. One other thing…You will charge them an entry fee {Franchise fee} to allow them to use your systems etc, and you will get a percentage of their monthly sales {Royalties}, too!

So in a perfect scenario, you have the potential to receive upfront and monthly fees from investors, who also happen to run their businesses that you gave them the model for, and they then use your tools to become successful. It can be a win-win.

If, however, you skimp on development costs up front, and use shortcuts to get your franchise company up and running, it could prove to be a disaster. Angry franchisees, and possible litigation from them, and others, could ruin things for you, and leave a bitter taste in your mouth towards franchising.

We highly recommend that you use development companies that have experience in all types of franchised businesses, and that will take their time to do things the right way. 

If you are considering franchising your business, here is a short checklist that will help you decide if franchising is the right way to expand your business:
 

1.  Do you have a time tested, proven business model?

2.  Have you duplicated your concept at least once?

3.  Do you have the basis for a detailed start-up operations manual?

4.  Do you have the desire and energy to expand your concept in a big way?

5. Is your concept unique? Does it fill an unmet need?

6. Are the profit margins large enough to attract franchisees?

7. Is there a formal training program in place? Or can you design one?

8. Do you have strong relationships with lenders? Can you get investment capital?

9. Is there technology in place, to help with efficiency?

10. Are you prepared for the legalities involved with franchise laws and regulations?

Lots to consider. Lots to do. Prepare to work really hard!

 

 

 

Beware of Franchise Fraud!

The Wall Street Journal's Richard Gibson has written quite the story on franchise and other entrepreneurial scams.
The FTC's Project  Fal$e Hope is described in it, and you know the saying about
"if it sounds too good to be...."   WSJ Article

Another TV appearance/This Friday!

If you live in the Cleveland/Akron metro area, and would like the scoop on what type of franchise concepts are ripe for NEO, tune into NewsChannel 5 at about 12:30PM for a live interview with your's truly..the NEO franchise expert/consultant,
this Friday, April 20th.

I will be discussing some great concepts that could be a great fit for Northeast Ohio....and maybe even for you!