Frannet Bay Area: Your Path to Franchise Success

1. FranNet of the Bay Area Katie Fagan, MBA – Consultant www.frannet.com

2. Information Overview • How to reduce your client’s risk • Why start a business now • Franchising myths • Costs and facts • Setting a path to success • Industries we represent • Our success stories

3. What is FRANNET? Franchise Consulting Service 50+ offices in North America Two Bay Area Offices - Since 1990 FREE Personal Franchise Matching Service A gateway (with no obligation) to professionally pre-screened franchise opportunities that will hold up to thorough research and due diligence!

4. FRANNETServices - Part I FREE “Franchise Matching and Support Services” Franchise Education Resources: Online “Introduction to Franchising” course #1 WSJ sba.frannet.com 2-14-11 Meet the Franchisor Workshops National Webinars and Local Seminars at SBA National partnership with SCORE “Road Map to Success” Workbook co-authored with SCORE provided to Government Agencies Blogs, articles and white papers

5. FRANNET Services - Part II FREE “Franchise Matching and Support Services Two Bay Area offices Research Process and Coaching for Clients: Educate through seminars held at SCORE Review - Roadmap to Success Workbook Complete - Personal Franchise Assessment (PFA) Identify Ideal Business model Present franchises that fit Utilize - Frannet Franchise Questions Checklists Weekly Coaching and Follow-up for right Fit Requirements - 10-20 Hours per Week, 30-60 Days

6. FRANNETServices Part III FREE “Franchise Matching and Support Services Two Bay Area offices Professional Referrals: National and local lenders 401K and IRA Business Funding Professionals SCORE coaching and classes Member of BOS, focused the assistance and small business growth in San Jose Franchise attorneys Accountants Real-estate brokers Insurance, Payroll Professionals , Bookkeeping and more…

7. Why Start a Business Now? • Is your client’s financial plan on track? • How about timing? • The Small Business Outlook • Landlords are flexible • Labor is available • Financing rates are very low • Consumer demand in all economies

8. Show Me the Money • Compare Investments: • Salary for managing the operation • Return on their cash investment • Tax benefits – business deductions and retirement benefits • An attractive exit strategy by building an asset

9. Franchising Is… A license to use: A Name and trademarks Products and Business Systems In exchange for: Initial franchise fee to own the rights and ongoing royalties to maintain the organization

10. Franchising is Big Business • Franchise Facts – U. S. A. • More than 80 different industries, 3,100 Franchisors • Providing 20 million jobs and $2.3 trillion in economic • activity • Highly regulated by the Federal Trade Commission • 15% of US franchisees own 2-5 units. The fastest growing • segment of the industry. • 12% of all businesses out there are franchises • 43% of all money spent in the USA goes to Franchises

11. Small Business Statistics

12. Franchise Myths • Franchises are expensive • You need 2-3 years to make money • I need to be in the food business • I’ll be working 24/7 • I have to invest a lot up front to make a lot • Franchisees need industry experience

13. Not All the Same • Many Units vs. Fewer Units • Older, well established vs. newer with • more availability • Structured vs. Flexible systems

14. What’s a Good Franchise? • Franchising is a proven, systematic • approach to starting and staying in • Business. • We Help Our Clients Look for… • Experience • Buying Power • Simplicity • Initial Training & Ongoing Support • Strong Sales, Marketing & • Operational Systems • Culture of Teamwork

15. The Spectrum of Franchising • Franchise Costs and Attributes • (Total investment including working capital) • $50 – 150k Business and ConsumerServices • Home based or office based, few or no employees. • Examples: Consulting IT, education, senior care.

16. The Spectrum of Franchising • $150 – 250K Outbound Services • Owner can drive sales, not as location • dependent. • Examples: light mfg., learning centers, • fitness centers, temp staffing • $250K – 500K+ Semi-absentee, Retail • Owner can keep job!!! • Examples: grooming services, spa’s, rental • and storage services also health/nutrition, electronics and medical centers

17. Let’s review their goals… • What do your clients want to fix? • “CAREER PAINS” • Freedom and control • Financial security (money) • Time for family / life balance • A sense of accomplishment • Retirement income • Business for a spouse or child • Enjoy what they do…

18. Industries we represent… • With over 110 franchise companies in our inventory, FranNet focuses on the Service Sector of Business. • Staffing Firms • Global Translation • Senior Care • Auto Care • Printing & Sign Manufacturing • Cleaning Services • Tax Consulting • Hair Care • Education / Tutoring • IT Services • Water Damage / Fire Restoration • Health and Wellness Businesses • Much More …

19. Our recent clients… • We help people from all walks of life find success in small business ownership. • Engineer– Hair Cutting Franchise • Accountant – Rubbish Disposal • IT Executive – Sign Manufacturing • PTA President – Tutoring Company • Retired Military – Light Manufacturing • Teacher – Cleaning Business • Former CEO/CFO - Training • Librarian – Home Healthcare • Ivy League Graduate – Home Healthcare • Former Apple Executive - Therapeutic Massage • Mortgage Broker – Commercial Cleaning

20. Contact Information FranNet of the Bay Area www.frannet.com Katie Fagan, MBA Consultant FranNet of the Bay Area (408) 436-2990 KFAGAN@FRANNET.COM