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Franchising and the Entrepreneur

Franchising and the Entrepreneur. Where else can we find a job creator, an economic stimulator, and a personal wealth creator that gives the opportunity to realize dreams and financial security for families beyond wildest expectations? …Dan DeBolt. Franchising.

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Franchising and the Entrepreneur

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  1. Franchising and the Entrepreneur Where else can we find a job creator, an economic stimulator, and a personal wealth creator that gives the opportunity to realize dreams and financial security for families beyond wildest expectations? …Dan DeBolt

  2. Franchising A system of distribution in which semi-independent business owners pay fees and royalties to a parent company in return for the right to become identified with its trademark, sell its products and services, and use its business format and system

  3. Types of Franchising • Trade name • Product distribution • Business format

  4. Benefits of Buying a Franchise • Management training and support • Brand name appeal • Standardized quality • National advertising • Financial assistance • Proven products and business formats • Centralized buying power • Site selection and territorial protection • Greater chance of success

  5. Drawbacks of Buying a Franchise • Franchise fees and ongoing royalties • Strict adherence to standardized operations • Restrictions on purchasing • Limited product line • Contract terms and renewal • Market saturation • Less freedom

  6. 10 Myths of Franchising • Safest way to go • Less money to open • Bigger franchise organization, more successful • Use 80% of business format • All are the same • No need for hands-on management • Anyone can be successful • Cheapest way to get into business • All problems will be solved • Run things the way I want to

  7. Franchising and the Law • Uniform Franchise Offering Circular (UFOC) • Federal Trade Commission-Trade Regulation Rule (23 major topics)

  8. Right Way to Buy a Franchise • Evaluate yourself • Research your market • Consider your options • Get a copy of their UFOC • Talk to existing franchisees • Ask some tough questions • Make your choice

  9. Trends Shaping Franchising Multiple-unit franchising-a method of franchising in which a franchisee opens more than one unit in a broad territory within a specified time period 11%

  10. Trends International Opportunities China-1,900 franchises, 82,000 outlets McDonalds-119 countries, 10,000 outlets

  11. Trends Smaller, nontraditional locations-interceptmarketing: the principle of putting a franchisee’s products or services directly in the paths of potential customers, wherever they may be ex. Dunkin Donuts

  12. Trends Conversion Franchising-a franchising trend in which owners of independent businesses become franchisees to gain the advantage of name recognition ex. Century 21

  13. Trends Master Franchising-a franchise that gives a franchisee the right to create a semi-independent organization in a particular territory to recruit, sell, and support other franchisees

  14. Trends Piggybacking-a method of franchising in which two or more franchises team up to sell complementary products or services under one roof ex. Taco Bell, KFC, Pizza Hut, A&W-Yum! Brands

  15. Trends Serving Dual-Career Couples And Aging Baby Boomers

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