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Representitives : Angie Li, Josh Steinegger , Michelle East, Susanna Harbach

Representitives : Angie Li, Josh Steinegger , Michelle East, Susanna Harbach. Franchise . “ A franchise is a business model that involves one business owner  licensing trademarks and methods to an independent entrepreneur ”. --U.S. small business administration. Pay fees.

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Representitives : Angie Li, Josh Steinegger , Michelle East, Susanna Harbach

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  1. Representitives: Angie Li, Josh Steinegger, Michelle East, Susanna Harbach

  2. Franchise • “A franchise is a business model that involves one business owner licensing trademarks and methods to an independent entrepreneur”. --U.S. small business administration Pay fees Brand name, training, marketing plan, management support

  3. Franchise Types • Product distribution franchises • Franchisor licenses its trademark and logo to the franchisees            • example: Coca-Cola, Goodyear-Tires, Ford Motor company • Business format distribution franchises • provides to franchisee a full range of services, including site selection, training, product supply, marketing plans and even assistance in obtaining financing. • example: Wendy’s, Great Clips, UPS store

  4. Franchise Arrangement Types Franchisor franchisee Franchise unit Franchise unit Franchisor franchisee Franchise unit Single-unit (direct-unit) Multi-unit Franchise unit

  5. Self Evaluation Chief Cheerleader Motivated by results

  6. Step 1: Self Evaluation Step 2: Pick a Franchise Consultant to Assist You Step 3: Research

  7. Pros and Cons Pros Cons Name recognition Support management Long-standing training program Prepared material and equipment Small business learning experience High franchise fees Limited control Limited duration Company trouble can impact the local business

  8. Step 4: Attend “Discovery Day”Step 5: Speak to Other Franchisees 1.“In the beginning, the last person paid is you” 2. Unknown competitors 3. Closed stores 4. Change in demand 5. New laws or government regulations 6. More than making money 7. Marketing support and training 8. Hype of a company. Check the facts with other sources.

  9. Step 6 Find a suitable location High demand of products and services Relatively low competition

  10. Step 7 Choose a franchise and secure funding Measure the potential growth Compare companies’ business model Six common cost Franchise Fee Legal Fees Build-Out Costs     Inventory Supplies working capital Source: Fro Yo Spot Frozen yogurt

  11. Franchise Cost by categories http://www.franchise.com/franchise-news/Basic_Cost_By_Category.cfm

  12. Top 10 Franchises for 2014 Source: http://www.entrepreneur.com/franchise500/index.html

  13. Secure funding • Funding budget sources: • Government loans-U.S. Small Business Administration (SBA) loans • Bank loans • Franchiser internal financing

  14. Step 8: Sign the AgreementStep 9: Obtain All Necessary Permits and Insurance

  15. Step 10: Hire Staff and Attend Training Operations Manual Headquarters Training Onsite Training Ongoing Training Train, Train, and Over-train Test for Competence • Soft VS Grand Openings Who you hire The kinds of training used

  16. ACTIVITY

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