Become a Franchise Owner! E-Book

Joel Libava

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 440

Veröffentlichungsjahr: 2011

Beschreibung

The definitive A-to-Z guide to researching, selecting, and starting a viable franchise business With more and more professionals looking for alternatives to traditional corporate employment, Become a Franchise Owner! informs would-be franchise owners of the joys and perils of purchasing a franchise. Authored by a trusted, feisty, tell-it-how-it-is independent franchise industry insider, this book offers straightforward, step-by-step tips and advice on how to properly (and carefully) research and select a franchise business. Get tips on how to locate information about franchises, current industry trends, interviews with franchisors, and hot franchise opportunities. * Offers a self-evaluation to discover if you are "franchise material" * Describes how to choose the right franchise for your specific situation * Lists the 40 crucial questions to ask current franchise owners Owning a franchise isn't for everyone; in fact, as Joel Libava says, "it's really not for most people." But if it is for you, this book can guide you in starting your own successful franchise business.

Leseprobe

Contents

Foreword

Acknowledgments

Introduction

Chapter 1: About James

Chapter 2: A Brief History of Franchising, Briefly

Chapter 3: Take the Franchise Quiz!

Start in Your Head

Cyborgs

A Phone Call

Chapter 4: Explained: The Franchise Business Model with Benefits

What Franchising Is, Exactly

What Franchising Isn’t

A Manual

Chapter 5: Are You Right or Wrong for Franchise Ownership? Reviewing the Quiz’s Results

Chapter 6: Search for a Franchise without Searching for a Franchise

Let’s Do This

Looking

Chapter 7: Do We Have a Match?

Let’s Drill Down

Franchise Categories

Examples of Possible Franchise Matches

Your Actual Mileage May Vary

I’m Throwing in a Wrench

About the Wrench

Chapter 8: Show Me Your Money

The Money Part

Your Financial Picture

Some Averages

What Can You Afford?

So . . . How Much Do I Really Need, Joel?

You’re Not Going to Make Money

Go Ahead! Start Your Search!

Secret Internet Agents

Chapter 9: Should You Have One of Those Free Franchise Consultations?

My Life as a Franchise Broker

Some Issues

The Day It Changed

Working with Franchise Brokers

Would You Like to Make a Six-Figure Income?

Chapter 10: It All Comes Down to Your Franchise Research

Are You Ready?

The Research Steps

Chapter 11: Loans, Legalities, and Luggage

Loans

The Discovery Day

Time to Get Feelings Involved

Chapter 12: Decision Day

Do This and This

It’s Time to Be a Decider

Final Thoughts

A Royal Collection of Resources for Franchise Buyers and Franchise Owners

Attention Franchise Buyers!

Index

Praise for Become a Franchise Owner!

“One of the greatest ways to claim the American Dream of business ownership is through a franchise. In his book, Become a Franchise Owner!, my friend, Joel Libava, takes you by the hand and walks you through all the steps. Don’t make owning a franchise harder than it has to be. Take Joel’s hand.”

—Jim Blasingame

Host of The Small Business Advocate Show

“What I love about Joel Libava’s style is his sensible, honest-to-goodness demeanor combined with an expansive knowledge of the franchise industry. Become a FranchiseOwner! The Start-Up Guide to Lowering Risk, Making Money, and Owning What You Do is a testament to knowing you’re in caring hands receiving the very best information so you can make your smartest decision!”

—Betsey Merkel

Process Designer, Network Strategist

“Gotham City had Batman, New York had Spiderman, Metropolis had Superman, and now entrepreneurs and future franchise owners everywhere have The Franchise King, Joel Libava. As a much needed advocate in a world full of scams, ambiguity and more sound bites than substance, Libava helps the aspiring entrepreneur navigate the franchise sea and make the best choices for themselves and their future businesses. His no-fluff style tells it like it is and clearly leads an entrepreneur through Business 101, saving them lots of money, time and heartache in the process. This is a must read for anyone interested in opening a franchise and, for that matter, anyone interested in starting a business.”

—Laura Petrolino

Chief Communications Officer, Ignite Venture Partners

“Become a Franchise Owner! is the ultimate, must-read guide to anyone who has ever even considered owning a franchise of any kind. Consider the investment you’re about to make in your life by opening up a franchise. If you want to make sure that you do it right the first time, read this book!”

—Jim Kukral

Author of Attention! This Book Will Make You Money

“It’s crazy to get serious about franchising and not take the time to read this book. Franchising can be a path to success or a long unhappy journey through a dark wood; and Joel’s an honest and trustworthy guide. Don’t go there without him.”

—Tim Berry,

Founder, Palo Alto Software

“Joel takes the guesswork out of buying a franchise by setting the record straight in an easy-to-understand way. The book takes the reader on a journey of discovery . . . about one’s self, about franchising, and whether they are meant for each other.”

—Barbara Weltman

Host of Build Your Business Radio

“Many failures in franchising result from the misperception that every franchise is a magic carpet to success, and that franchises never fail. The truth is that there are good franchises, there are bad franchises, and there are grab-your-checkbook-and-run franchises. Prospective franchisees need a knowledgeable, trustworthy advisor and a solid game plan. Joel Libava is that advisor, and this book provides the game plan for franchise success.”

—Sean Kelly

President, IdeaFarm

“I applaud Joel’s advice to future franchisees to plan for success and understand the franchise model before jumping into it. As a consultant to franchisors, I will recommend Joel’s book as guidance for the franchise sales process. Joel’s commitment to the individual success of franchise buyers not only helps them, but, ultimately, helps the industry as a whole.”

—Mark Siebert

CEO, iFranchise Group

“If you’ve ever even considered entering the world of franchising, this book is required reading. You’ll be able to save yourself months of work and thousands of dollars within the first fifty pages where Joel puts your personality to the test. Finish this book and you’ll know for sure your very next steps.”

—Joe Sorge

President of Hospitality Democracy and Partner, Kitchen Table Companies

“Joel talks directly to you about what’s what in the world of franchising. He’s not repeating the tired old stories about how great franchises are, and he’s not knocking franchises with unfair criticism. He’s just sitting down over coffee and telling you everything you need to know before you get involved. And he’s asking the hard questions. The ones you’ve put off thinking about because they aren’t easy to answer. If you’ll do your work and answer Joel’s questions, you’ll find out whether a franchise is right for you, and how to make the best chance of success.”

—Becky McCray

Publisher, SmallBizSurvival.com

“Joel Libava is one of the only true advocates for the future franchise owner. I wouldn’t trust anyone else for advice on that decision. Read this book, and see why.”

—Barry Moltz

Speaker, Consultant, Author

“Having known Joel for many years I have always been impressed with his attitude of ‘getting it done right’ versus ‘just getting it done’ when working with prospective business owners. His commitment to his clients and to smart franchising is admirable and worth listening to and reading about.”

—Craig Slavin

President, Founder Franchise Central/Franchise Navigator

“WOW! Your advice is spot-on and impactful—especially the section on self-discovery. Anyone considering a franchise will definitely want to read your book early on in their discovery/research process. Having done business with you over the years, we know that you are very committed and very ethical with your franchise candidates.”

—Cathy Hay

VP Franchise Recruitment, Maid Brigade

“Joel Libava captures the necessary mindset of a successful franchise owner with his simple mantra. Even better, he serves up his insights with humor (Cyborgs anyone?) and relatable stories involving real people. People just like you. Are you shopping for a book on franchise ownership? I suggest you invest in this one.”

—Nicole Fende

A.S.A. President and Chief Numbers Whisperer, Small Business Finance Forum

“Joel Libava’s informative, succinct guide to franchise investment should be a must read for anyone thinking of starting or expanding a business through franchising. The book is packed with business wisdom and advice, all presented in Joel’s inimitable, readable style. In a market that is littered with how-to publications, this one stands out as a really useful, practical aid to franchise entrepreneurs everywhere.”

—Sean McGarry

Founder and Managing Director, Franchise Direct.com

“There are few business books that genuinely open your eyes to a new world of opportunity you didn’t see before. Joel Libava’s book does. The world of franchising is often thought of as confusing, mysterious and beyond most people’s interest or comprehension. This book makes owning a franchise business a clearly understood possibility for aspiring entrepreneurs and business owners. Read it.”

—Jason Falls

Co-author of No Bullshit Social Media: The All-Business, No-Hype Guide to Social Media Marketing and President and CEO of Social Media Explorer

“You can always count on Joel Libava to tell it like it is. He talks with candor and well-gained experience about the skills that are absolutely needed to succeed as a franchise owner. If you’re in the market for a franchise business, this book is the place to start.”

—Flo Schell

Founder, Franchise Coaching Systems

“Becoming a franchise owner is serious business, a life changing decision. Read this book to arm yourself with knowledge.”

—Rhonda Sanderson

Sanderson PR

“This book is spot-on!! This is a must read for anyone considering a franchise business. This book allows you to leverage Joel’s years of experience in franchise consulting to make the right choices from the very beginning; even long before you start surfing the Internet for the business of your dreams!”

—Lonnie Helgerson

CFE President, Helgerson Franchise Group

“Joel understands the power of franchising and his book provides straightforward information on what it takes to create a mutually beneficial relationship between both the franchisor and franchisee.”

—James Young

President, Spring-Green Lawn Care

“When ruling a kingdom it is the king’s responsibility to keep his followers safe. In franchising, it’s the Franchise King, Joel Libava, that looks out for the [financial] safety of individuals interested in investing in a franchise. Regardless of an individual’s background, experience, and financial net worth, Joel shoots straight and tells it like it is—whether or not an individual has what it takes to be a franchisee. In today’s economic climate, with investment portfolios subject to market volatility, investors might be less concerned if Joel’s philosophy was shared by their financial advisors as well.”

—Paul Segreto

President and CEO, franchisEssentials

“There is no such thing as shopping for a franchise, which is the biggest message Joel Libava portrays to potential buyers. In Become a Franchise Owner! Libava walks you through how to choose the right franchise for you, what kind of investment you’ll have to make, how to account for royalties and other corporate fees, and what to expect from beginning through growth. There is no other book that provides such an in-depth look at becoming a franchise owner . . . from someone who has walked in your shoes.”

—Gini Dietrich

CEO, Arment Dietrich and author of Spin Sucks

Copyright © 2012 by Joel Libava. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data:

Libava, Joel, 1959-

Become a franchise owner! : the start-up guide to lowering risk, making money, and owning what you do / Joel Libava.

p. cm.

Includes index.

ISBN 978-1-118-09402-0 (cloth); ISBN 978-1-118-17837-9 (ebk); ISBN 978-1-118-17838-6 (ebk); ISBN 978-1-118-17839-3 (ebk)

1. Franchises (Retail trade) 2. New business enterprises. I. Title.

HF5429.23.L57 2011

658.8'708 —dc23

2011032159

This book is dedicated to my Dad, Jerry Libava, who was ethical in every facet of his life, and who made sure that this apple didn’t fall too far from his tree. He left us way too soon.

Foreword

Franchising is part of our daily lives. Every day over $1 billion is spent on franchising—and that’s in the United States alone. Think about your own life. How many times a week do you spend time and money in a franchise outlet? Chances are some of the food you eat, the gas you pump, even the car you buy is transacted at a franchise location.

Do you ever dream about being on the other end of that transaction—the person collecting the money instead of spending it? Millions of people share that dream, and hundreds of thousands (there are more than 600,000 franchisees in the United States) have actually made that dream come true.

Whether you’re curious and in the explorer stage or have already decided franchising is for you you’ve come to the right place or, more accurately, you’ve bought the right book. Buying a franchise can be a smart, savvy, and lucrative choice, or it could end up costing you a lot of time and money. The difference lies in doing your homework, knowing what you’re buying, and getting honest insight into franchising in general, and, more specifically, your potential to succeed.

Become a Franchise Owner! The Start-Up Guide to Lowering Risk, Making Money, and Owning What You Do gives you all that—and more. Author Joel Libava, also known as The Franchise King, lives and breathes franchising. He knows the good, the bad, and, yes, the ugly. In my 30+ years covering small business and franchising, I’ve never met anyone more invested in helping other people make the right decision than Joel. He’s so concerned about potential franchisees, so determined to help you make the right decision, you would think he’s investing his own money.

In his typical approach, interweaving honesty with humor, bluntness with concern, Joel takes you through everything you need to know before you buy a franchise; he even provides a handy (though admittedly unscientific) quiz, a personality analysis, and other simple exercises you can do to make sure you’re suited for franchising.

That’s what sets Joel apart from most other franchise experts. He doesn’t think franchising is for everyone. And even if you are suited to be a franchisee, he believes that not all franchises will be suitable for your talents, experience, and skill set. In fact, Joel takes on some franchisors for not being selective enough when selling their franchises.

There’s an ongoing discussion in the franchise community about whether franchisees are entrepreneurs. This is one of the few aspects of franchising Joel and I disagree about. But our ongoing debate on this topic just underscores that Joel Libava is what I call a thought-provoker. He asks the tough questions, probes deeply, and doesn’t blindly follow the industry’s viewpoints.

Franchising can be the perfect solution for would-be business owners searching for the right business to start. I agree with Joel; franchising is not for everyone. If you’re the type who needs to start a business because the very word rule gets your hackles up, then it’s likely best that you steer clear of becoming a franchisee.

On the other hand, if you’ve longed to own a business in an industry in which you have no experience or feel you need some extra support and assistance in order to succeed as a business owner, then franchising could be the perfect solution. Those in the industry like to say when you buy a franchise “you’re in business for yourself, but not by yourself.” That’s mostly an accurate view.

When you buy a franchise, you’re really buying into someone else’s system. Presumably they’ve worked out the kinks, learned how to attract customers, and built a national (or global) company that benefits existing franchise owners as well as new investors. But this is why it’s so important you do your homework and essentially look under the hood.

There are a lot of factors you need to weigh before you actually sign on the dotted line. In Become a Franchise Owner! The Start-Up Guide to Lowering Risk, Making Money, and Owning What You Do, Joel shares his thorough franchise research process, so you not only know what to look for, but also how to find it. And speaking of finding things, Joel also provides an in-depth list of vital franchise resources.

Starting a business, whether you build it from the ground up, purchase an existing company, or buy a franchise, is a risky proposition. Run as fast as you can from anyone who tries to tell you differently. Buying a franchise does not eliminate the risk of start-up. But if you approach franchising the right way—the smart way—by reading this book, doing your research, checking out the numerous opportunities out there, then the risk is somewhat mitigated.

One of the biggest factors setting the franchise model apart is that, even though someone else is actually operating a specific outlet, it is the franchise’s name, brand, and reputation that’s at risk. Consumers don’t blame John Jones or Susie Smith if their hamburgers are overcooked, their newly painted houses looks shabby, or their cars run poorly after a tune-up. They fault the company whose name is on the door of the business—the franchisor. That is why most franchises provide both initial training and ongoing support to their franchisees. And that’s why, when you’re in the midst of the franchise selection process, the type of training and support are key factors to assess. (I attended a training session once for Baskin Robbins’ new franchisees. It was a detailed and fascinating process—and I learned there’s a right way and a wrong way to scoop an ice cream cone.)

There are other aspects to consider before you make your final decision. Some potential franchise buyers are pulled between buying into an established company with a proven track record, or a new company offering perhaps a hotter concept and a willingness to negotiate. There are advantages and disadvantages to both. It’s all about figuring out what’s best for you, your personal circumstances, your risk tolerance, and how much money you have to invest.

To help guide you, you can follow the story of James Pennington, a downsized middle management guy with a family, a mortgage, and a deep desire to be his own boss. Does that sound like you? James does not technically exist. He’s a figment of Joel’s imagination, an everyman (or woman) if you will, who represents all the prospective franchisees Joel has met over his many years of working in the franchise market.

Franchise success is dependent on so many factors, big and small. Fred DeLuca, the founder of Subway Sandwiches once told me he used to sit across from potential locations, watching the flow of street traffic. (Did you know Americans apparently don’t like to make left turns, and some businesses, like donut shops, do better when they’re located on the going-to-work side of the street?)

It has long been the American Dream to own your own business. There is no better way to control your own destiny, to fail or prosper as a result of your own actions and not those of your boss. I think America is inherently an entrepreneurial nation; it’s part of our allure as the land of opportunity.

If franchising is the path you choose to follow to make that dream come true, then Become a Franchise Owner! The Start-Up Guide to Lowering Risk, Making Money, and Owning What You Do is an essential guide to steer you down that path. And I can’t think of anyone I would trust more to be my franchise field guide than Joel Libava.

So what are you waiting for? Turn the page and get started on your own incredible journey to business ownership.

—Rieva Lesonsky CEO, GrowBiz Media

SmallBizDaily.com

Acknowledgments

This book wouldn’t have been possible without the support of my wife, Jeannine, who’s been my daily cheerleader, and who, along with my daughter, Grace (The Franchise Princess), has had to endure things like my house-shaking, 144+ decibel, unique typing technique, and the extreme feelings of loneliness they must have had when I wasn’t able to join them for such dynamic and culturally important nighttime television shows such as Jersey Shore,Teen Mom, and America’s Next Top Model while I was writing this book.

To my mom, Judith Libava, who’s so proud of her firstborn; my brother Jon, who’s been more helpful and motivating than he knows; my sister Janet, who thinks it’s really cool that her big brother is now an author; and my mother-in-law and father-in-law Lou and Lisa, who have been fantastic supporters. I’m grateful for it.

To all of my cousins, nieces, and nephews, brothers-in-law, and sisters-in-law, aunts and uncles—I think it’s really cool that you’ve become fans on my Facebook page and that you’ve been genuinely excited for me to publish this book. Thank you!

To Lauren Murphy, my editor at John Wiley & Sons, who’s been a genuine pom-pom shaker for the last several months; she’s believed in me from day one. (Plus she follows me on Twitter!) Christine Moore and Deborah Schindlar, my copyeditors, who’ve had the pleasure of experiencing my cutting-edge use of commas right before their very eyes.