The Franchise King Blog

What to do when one door closes...

You are being let go”. “You have just been replaced”. “You are  being   downsized”.

Several ways to say it, but all have the same meaning…you are unemployed!

Being unemployed is pretty scary. In my opinion, you have 2 choices. You can stay home, scanning want ads and the internet for jobs and then get depressed after about 2 weeks of that, or you can start getting more creative in your “career” search. Who told you that you had to be “employed” somewhere? Where is that written?
Have you thought about the “other” door? The other door is a pretty big door. Almost too scary for some people approach, let alone try to “open” it.
The other door {drum roll please}, is self employment. Would you consider investing in yourself, “crazy?” “Insane”? Why? Could it be fear of the unknown? Fear of losing your investment? Just plain fear?

There is a way to explore business ownership, safely. Maybe you should spend part of your job search looking at investing in a franchise…..

A franchise is a business where you do not have to think of everything, of every little detail. It’s been pretty much done for you. And it may be already proven, which tends to lower your risk.

There is more to franchising then burgers, mufflers, and donuts. {Those types of franchises can do very well for the right person}.

Some franchising categories are:

Home Services

Business Services

Marketing

Sales

Technology

Consulting

Children’s Services

Retail/Auto

There are about 3,500 franchise and business opportunities to choose from. Do you think it is possible that you can find one where you may do well in? Are you willing to look?

Here  are my suggestions:

1. Do a self analysis of your strengths and weaknesses, including what you like to do.

2. Do a personal net worth statement. Make two columns on a sheet of paper. One column should list all your assets.The other column should list your liabilities. The difference between the two is you “net worth”. We suggest a minimum of $200k net worth with the ability to write a check for $40k,  and borrow more in the form of a bank loan if you want to seriously look at some ideas. Legitimate franchise opportunities do not cost only $20k!

3. When you find an opportunity that you like, request a brochure and a phone call with the franchise company sales representative/franchise director. See if you like each other, and if you may be a good fit for that type of business.

4. Research, research, research! Talk to franchise owners from all over the country. See if they seem happy about their decision.

5. Use franchise attorneys, CPA’s familiar with small businesses, and an aggressive lender if needed.
{I have a great local network of resources!}

6. When you do some financial projections always remember to leave room for personal living expenses! Most people forget about that in their business plans.

7. Make your decision. Even if you decide that this is not the right time to get into your own business, at least you will know that there IS something out there that may make sense for you in the future.

When one door closes, the next door that opens may be a totally different door than you expected to walk through.

Best of luck! Check out The Ohio Franchise Center

Really Fast Cars/Real Good Cause

Tomorrow morning at Thompson Drag Raceway,  some V8's will be making some noise for Make a Wish, in an event called Race 4 a Wish.
Months in the making, and with the management at the raceway park's cooperation, this event should be a fun time for all.
Rumor mill: A 2005 Ultima GTR, the fastest production car ever built is supposed to be there, and racing!
It is only 10 bucks to enter the event, which starts at 10:00am. 
The weather forecast calls for sunny skies and 84 degrees. Nice recipe for speed and noise.
What a great excuse to take the morning off, and drive out to the country.
MMMMM. Think I will!
Directions

Former Exec that I helped...

When I do speaking engagements, a popular question that I get asked is this one:
"Is there someone local that you have helped find a terrific franchise opportunity for, that we can
hear about"?
Answer. Yes.
Sometimes, the local and national media arranges for you to hear about one, via one on one interviews that
I am more than happy to set some time aside for.
Here is an excerpt from Cleveland's own, The Cleveland Jewish News {CJN} This story features local resident Jim Holthus, who met with me  a few years back. He did all the right things, including involving his wife from day one.
Click Here for story....

UFOC

The Uniform Franchise Offering Circular is the legal document that you will  get when you are pursuing opportunities in the world of franchise ownership.
Usually a couple of hundred pages long, it is an exciting read, featuring gobs and gobs of data.
On the first page, the US Government states that you are required to receive this document from the franchise companies registered here, but that the US Government has not checked their validity.
You need to check it, and you do not have to do it alone.
One of the many things that I do for my candidates is to insist that they protect themselves.
I assist them by referring them to competent attorneys in NEO, that are familiar with these legal documents.
These are attorneys that I trust, and use myself

US federal law, and state law in 14 states, require that a franchise prospect receive a current copy of the 75 - 100 page document known as the Uniform Franchise Offering Circular (UFOC) at the first meeting with a representative of the franchise company. A current copy of the UFOC must be in the possession of the prospect for 14 calendar days before the prospect may sign any commitment or make any deposits. Finally, the franchise contract, with all blanks filled in, must be in the possession of the prospect for five business days before he may sign it. Similar documentation and procedures are required under Canadian law.

Below, you will find the definition of a franchise, according to the US Federal Trade Commission as well as the table of contents for a UFOC. There are a full twenty-three points in total, consolidated here into thirteen.

A franchise is "An agreement for consideration by which a person permits the distribution of goods or services under his trademark, service mark, or trade name, during the term of which the grantor retains control over others or renders significant assistance to others."

UFOC Contents
Franchisor, predecessors, affiliates and the officers and their business experience
Litigation and bankruptcy
The estimated initial investment and all fees, including the initial franchise fee, ongoing royalties, advertising fees, site fees, transfer fees, etc.
Restrictions on the sale of products and services and also on their sources
Franchisor's obligations and the franchisee's obligations
Available financing and territory rights
Obligations to participate in the operation of the business
Renewal, termination, transfer and dispute resolution
Earnings and/or sales claims
List of outlets and franchisees, including all who left in the last year, and three years of opened or closed units
Audited financial statements of the franchisor
Franchise agreement, leases and other documents
Receipt of the Circular to be signed by the prospect

As you can plainly see, things can get rather complicated when investing in a franchise of your own, so use experts...Experts in franchise law should not cost you any more. It will cost you more to use a family friend that is an attorney, that is not used to working through a UFOC!

Can I help Cleveland Rock?

So I was driving to my Chagrin Blvd.office,  and thinking about our Cool city. What is missing?
What should we or could we have?
Or...What can we have that we should of had? I came up with what I feel you will find interesting, and may energize you.
I am joining forces with Mark Geyman of Ohio Biz fame to start something that we as a city need to finish.Mark will be doing most of the techy stuff, while I will do the marketing and promotion of this crusade.
Some others that will be involved {and don't know it yet} include Michael "The Tech Czar" DeAloia, M. Stanley, N Geraldo, J Tokar, B Benjamin, A Sary, D Smith, A Hach, B Kleinman, J Libava, M Cuva, E Sonnie, M Barret, J Hyland, G Nemeth, H Cass, T Mulready, J Kukral, S Prueter, T Rosenau, J Bauer, T Santana,M Malley, K Ohare, B Bain, H Rogoff, S Petti, P Pitrone,  JD Libava, G Libava,  D Dawson, R Taylor, T Sudow, R Goble, E Hamlin, J Rownd, J Kurant, G Turoff, C Corsillo, D Obermiller, J Bonfiglio, G Skoda, S Lubline, R Sussel, K G Gottfried, D Hanson, B Barnett, P Tresger, M Saige, S Bando, L Banker,
H Statam B Tyers, P Mucci, M Burzminski, S Spott, T Kramer, D Brewer, F Ostrowski, C Wisbar, P Fogarty, K Sachs, R Olbinsky, B Nellis, J Renner, G Marquit, M Baer, J Siegel, A Pohlman, P Chase,
B Payne, Triv, T Amato,and many many more.
Curious?
Stay tuned. Same Rock Channel, Different Rock Time...
Turn it Up, Cleveland!

               

 

3.49

3.49.                            3.39                                   3.49               $3.49                       $3.49          

I just filled up my Wife's automobile, {Mitsu} at my local Franchised petrol station in beautiful UH. As the dials on the pump kept on doing what pump dials do {dial}, I was thinking that these Franchised petrol stations got real smart about 12 years ago or so. They said to themselves:

"Why don't we get a credit card company to design a credit card swiper at the petrol pumps. That way, when gas goes up to around 3bucks a gallon, the customers won't have to walk all the way into our humble little establishment, and fork over cash....Plus,  {And here is the big one folks], when our customers don't  have to physically hand over folded paper money, and walk all the way in our humble little establishment, the high gas prices won't be as painful to deal with. After all, swiping a pretty little square plastic card at the pump is not a big deal to them. It will not seem as real."

Well it is getting a lot more real, lately. How do the folks with really limited incomes and 2 kids etc. do it?

Comments would be welcome. Heck, even a new answer to our problem.

We can all blame Bush, or...we can fix it. OPEC has us by the b_ _ ls. Always did. Always will. Or will they?   

Bernie Kosar Restaurant Franchise?

If Bernie Kosar opens another Bernie's Steakhouse, like his Miami, Florida restaurant, this time in Cleveland, Ohio, does this mean that the former Cleveland Franchise {Kosar} is going to Franchise his Steakhouse?
{That darn Franchise word again!}
According the The Plain Dealer,  Kosar has signed on the be the first tenant in the $230 million  East Bank project. Looks like Bernie is leasing a cute little spot in the 6,700 square foot range.
While looking over the comment section to this PD story, this one was the best:
"The Browns have been giving me indigestion since Bernie left. Maybe he can cure it."
Make mine medium rare, please. And I do want A1 sauce.....

Miami-Dade Makeovers

Well the makeover craze has hit the small business world, this time in South Florida. It seems that the folks at the Miami Herald have a new twist on "Extreme Makeover Home Edition."

Do newspapers have "Spring Sweeps" , like the local Television markets across America?

Well if they don't, coulda fooled this Franchise Guy....

Can't seem to find time to get organized and get business systems in place? Are your marketing materials anemic? Accounts in disarray? Interested in franchising? Want to take your business to the next level?

We'll find help for you -- and offer lessons for all.

In coming months, Business Monday will be running makeovers focusing on a particular aspect of a business that needs help. Experts in the community will be providing the advice for the makeovers.

If you would like a makeover, here's what you need to do:

• Tell us why your business needs a professional makeover. No more than 250 words, please. Concentrate on one aspect of your business that needs help -- corporate organization, marketing, financing, for example -- and tell us what your problems are.

• You must be willing to share company information with our consultants so they can help you. (Businesses selected for makeovers will need to fill out a short financial form.) We will publish financial data such as sales, revenue and profit margin when we run makeover stories.

• The contest is open to anyone who has been in business at least two years. No start-ups.

• The business must be your primary source of income. If not profitable yet, you should be close to breaking even.

• Your business must be in Miami-Dade or Broward.

• E-mail your request to ndahlberg@MiamiHerald.com, or mail to Nancy Dahlberg, Business Makeover, The Miami Herald, One Herald Plaza, Miami, FL 33132.

 

Business Books to Read

Here are a couple of books I have read, and have benefited greatly from:

1. "Getting Everything You Can Out Of All You've Got"

By Jay Abraham

This book gives you 21 ways to out-think and out-perform your competition. Gives great advice on networking, and marketing.

2. "The E-Myth Revisited"

By Michael Gerber

If you have not read this, and are either a part of the franchise industry, or you want to be in the future, this Gerber is a must read!

A story of a shop owner who needs to "work ON the business, as opposed to working IN the business"

The book teaches you the importance of systems.

"Duct Tape Marketing"
Sticky Stuff by the great John Jantsch

This book tells you how to market this year!

Enjoy!

Spend 5 minutes here...

I was sent a video awhile back, that a few of you may have seen.
It relates to franchising, business, speed of change, children, and life.
After you watch it, you will shaking your head!
Here:
Shift happens

Leaving Corporate America?

Most of the folks that I have been able to give guidance to regarding franchise ownership fall into this category:

Downsized {again] from their Corporate jobs

Some of them are on their 3rd or 4th downsizing {Thanx Bitpipe} in the past 10 or so years.
When I speak in front of groups, I always ask this question:
" If you are on your 3rd or 4th downsizing, and you are 49 years old, what is your expectation of how the next scenario will play out if you decide on pursuing a corporate job again?" 
Another words, what is going to change? Are you prepared to have the dejavu experience of the emotions that you may be feeling now?
My favorite saying is, "Nothing Changes if Nothing Changes."
If you would like to have some measure of control back in your professional and personal life, I am suggesting that you start looking at purchasing a franchise as a way to change your life.

Franchising is definitely not for everyone, but for some it does have life-changing potential.
Take a risk. At least look into franchising as an option...   CNN Franchise story link!

Cavs Franchise

The Cleveland Cavs Franchise has certainly brought the energy level of our great city up a couple of notches.
It has also given Downtown Cleveland national exposure. We need it, and we need more.
The Cavs Franchise has a Franchise player. A player with the potential to elevate our city to a new level!
The Indians did it in the mid 90s. A Franchise player has the potential to do a lot of good in the community, and probably does. A Franchise player, like it or not is a role model for the young boys and girls in the area.
The area being the Cleveland Plus region.
A Franchise player can do good, or average, or do bad. Humans make mistakes.
A young Franchise player with the potential that a Franchise player should have in any city needs to carefully measure his or her actions when it comes to life choices.
When a young child asks the question, "I heard that ________ ________ is having another child. I wonder what his wife is like", and I have no carefully worded answer in my answers to a child's questions bag, I sense there could be a problem.

Regina Brett, an acquaintance of mine, writes in today's Cleveland Plain Dealer:

" We're old-fashioned. We believe in marriage, even though half of them fail. We believe the ideal situation is for a mom and a dad to raise kids together, even though it's becoming a rarity."

Read entire story

This issue has been discussed before a little, but shouldn't a prominent Franchise player in a major city be a positive role model for the young ones, by doing the right things?
Having a child out of wedlock, with another one on the way, does not set a positive example.
To my child, I probably look like a Franchise player in my own right, and I live my life by always trying to do the right thing. She may not always listen or even agree when I tell her what to do, but I am sure she watches my daily actions, and sees me do the right thing in business, and in life.
Kids watch wealthy celebs and Franchise players in action. Our 24/7 media makes sure of that.
When flaky, and wealthy young women really do go to jail for not doing the right thing, kids take notice.
When Franchise players sells BBall shoes for $15, kids take notice.
When a Franchise player has a child out of wedlock, and another one on the way, without the commitment of marriage, kids take notice.
Whatever the reason {$$$$} for a Franchise player to not get married to the mother of his child
{soon children} is, maybe this Franchise player can come up with several reasons to get married, and show this city that it is all about "doing the right thing". 

Krispy Franchising

Here is a  part of the franchising world that is..shall I say..uncomfortable. I am certainly pro-small business, and pro-franchising. But when a name brand franchise gets into trouble because of "accounting" errors, and franchisees around the US have had huge problems Puget Sound, one must take a serious step back before considering getting into a "hole". {Round, and doughy}.
It seems like the geniuses at KKD are going to try to sell Donut franchises again!
Would I advice my candidates for franchise ownership to even get a brochure from these guys and gals at KK corporate?
Let's play;
"Guess Joel's recommendation on looking at KK as a franchise opportunity", after reading this snippet from the folks at CNN  !
Comment and Win!
{You win a free link to your url}

Jim Blasingame's Cleveland question?

So during my 4th LIVE radio interview with The "Small Business Advocate" this morning, Jim Blasingame
intros me as a Franchise Expert etc. from  Cleveland, Ohio.
I say,  "The  Rock N Roll Capital, Cleveland Ohio"! He asks me, "What great Rock N Roll  Band came from Cleveland'?
I answered, "The Michael Stanley Band"..... He said: Cmon, Joel!
Anyway, I always enjoyed the band, even though it never got to a level I had hoped it would.
During the commercial break, Jim asked me how things were going in Cleveland.
{In January, he asked me the same question, and I told him "average at best".}
This morning I answered, "A little better, I think'
I mentioned some cool stuff going on downtown, tech-wise, and he told me that he hoped things got better.
Living in the Midwest is pretty tough. The weather is challenging. The business climate is challenging.
The East and West coasts  seem to hold their own, growth wise, and the Southwest is just rocking.
I am staying here, so I really want Cleveland to Rock N Roll again!
We have a  marketing campaign featuring the Cleveland/Akron/Youngstown area.
The title- Cleveland Plus.
Nice website. Boring branding. {Sorry, but it is really weak}.
I am NOT being a Negative Nancy, but Geez...Is that the best we can do?
How about this instead:
"Cleveland. Rocking your world!"
Cleveland does have one thing going for it.
A real dynamo, who cares, and is not afraid to tackle big issues, and has no fear when it comes to announcing huge goals.

He is "The Tech Czar"
Watch Michael D. in action. He gets it!
These Michaels just keep coming....

Franchise Fads

Can I be an "I told you so" kind of guy for a moment?
My area, Cleveland-Northern Ohio has been in an economic slump for the past few years.
This makes me even more skeptical than I already am, when it comes to franchises that I choose to talk about with my local clients.
I will not suggest "Hot" franchise concepts to my clients because of my philosophy regarding "Hot" franchises.
Here it is:
"What is hot is always temporary.Stick to the simple everyday products and services that will not be affected by technology in our lifetimes."
Example: A residential cleaning service franchise  is always needed, and there will not be "robots" cleaning our homes anytime soon.
I received many phone calls in the last year and a half concerning E-Bay drop off stores.
Here is what I said:
"Forget it. This is a fad. E-Bay is not a fad, but it is not an everyday word {E-Bay} like it once was.
E-Bay is a great business model, but the margins in the drop off segment won't make folks money.Again, forget it."   
The Pittsburgh Post-Gazette just ran this story concerning the end of the line for these "hot" concepts...
Drop Off Stores
I told you so.

Failing in Franchising?

Failure? In a franchise system? Cmon......
Yes it really is possible to fail in the franchise business.
The common reasons are:
1. Not following the system. You are buying a system. Use it.
2. Mismatch. You choose a Subway because you know the "name" and you feel that you cannot fail. You can. Especially if you have never been in the food service industry. Subway is a great system for the right person.
3. You did not realize that you won't be drawing a salary right away, and did not stash 6-12 months of business and living expenses.
4. You did all your searching and research alone. There are plenty of franchise advisers out there. Maybe you should have used an expert to help you.
The Wall Street Journal's daily e-mail newsletter cites more reasons:
WSJ-Start-up Journal

New Franchise Laws

The Federal Trade Commission is in the process of enacting new franchise rules to help protect prospective
franchise owners from fraud.With over 3,000 different franchise concepts vying for a piece of the downsized management pie, these new laws will become an added value for those doing their due diligence.
The President of the AAFD, a franchise owners association that in the past has been unfreindly to the franchise industry does not think these new laws will be enough. {Big surprise}
Tribune

What makes a good franchise?

Jim Coen a fellow franchise blogger posted this concerning what DOES make a good opportunity in the franchise world???
A good franchise opportunity is not just about having a good idea! For a franchise to be good enough for you to invest in the franchisor has to prove that the model can be replicated. The franchisor has to demonstrate that it possesses the financial resources in a balance sheet and surrounds itself with the human resources necessary to develop the infrastructure to ensure growth of the brand.
More...