Can You Franchise Your Business?
Whether or not to franchise isn't an easy decision. You'll need to consider the business issues and weigh the pros and cons from an informed perspective.
Franchising as a rapid expansion tactic is one of several options you should consider for it's tremendous potential to grow your business quickly.
How does franchising work? The key is in the creation of systems which can be duplicated through training and support.
Other characteristics attractive to potential franchisees include businesses:
with a good track record of profitability.
built around a unique or unusual concept.
with broad geographic appeal.
which are relatively easy to operate.
which are relatively inexpensive to operate.
which are easily duplicated.
A good place to start is our overview of franchising. You may also access comprehensive information on how to franchise.
Despite the impressive merits, franchising is not for every business.
There is high risk in franchising any new, unproven business.
Established companies that should probably not franchise include businesses:
difficult to monitor from long distances.
requiring large numbers of employees.
with complex operations.
with low profit margins.
And being franchisable doesn't guarantee your success. Franchising the right way will help you to avoid a number of costly mistakes.
How to tell if your small business (or large business) is a prime franchise candidate.
You can quickly assess whether you are ready to franchise by taking our basic online quiz. Or, you can download our comprehensive worksheet and determine your company's franchisability for yourself at your convenience.
If you're ready to franchise, our checklist will guide you through the process.
If you're still not sure, a Francorp Franchise Analyst will discuss with you the franchisability of your business.
Other frequently asked questions about how to franchise a business:
How much time should you reasonably expect to spend in order to successfully build your franchise?
How much should you expect to pay to build a successful franchise?
What other resources are available to educate yourself about franchising?
Why Francorp? Our track record is solid. We've consulted with and provided franchising information to over 10,000 companies. We’ve helped more than 2,000 companies to successfully franchise their businesses.
Showing posts with label francorp development. Show all posts
Showing posts with label francorp development. Show all posts
Tuesday, February 24, 2009
The Francorp Difference
The Francorp Difference
Our first step is always to determine your franchisability. Francorp differs from other companies that are focused on selling their services. It's important to us that we work only with companies that are franchisable . We want you to be educated about the franchising process, and about how long you should expect the successful franchise offering to take .
Do you own one of those companies? Is your company ready to succeed? We can fast track the process without interfering with your potential to succeed.
And if you don't yet have a company, but do have the necessary funds, Francorp can help you develop a franchisable idea from the ground up.
All Under One Roof
Successful systems create successful franchises, and our unique Proven Method maximizes your chances of success and minimizes costly mistakes. We also offer an array of resources that speak to our leadership in the industry.
In franchising as in so many other fields, there is no substitute for experience. Francorp's professional staff is the largest and most experienced in franchising, and you get the benefit of our collective credentials. It's no accident we're considered the industry leader.
As a result, your services and franchise help are performed "in-house," not delegated to outside contractors who may have no expertise in franchising. We employ a full-time staff of professionals to create franchise structure, franchise documents, marketing strategies and materials, operations manuals, sales training, video presentations, and general consulting.
Information about each client is shared among the professionals involved in order to keep the work product consistent from department to department.
A Comprehensive Franchise Program
It's normal to be nervous about what to expect when you've never done this before. Francorp has developed a step-by-step procedure to support you through the franchising process.
When you first contact Francorp, you won't get a sales pitch. You won't be pressured at all. But by time you leave your first meeting with one of our consultants, you'll walk out with an action plan to either become more franchisable, or to start the franchising process.
Franchise structure - As a first step in creating a franchise program, Francorp consultants prepare a written franchise analysis based upon your business, its competition, and the franchise industry at large.
Franchise agreement - Francorp's in-house attorneys, with input from Francorp's operations, marketing, and strategic consultants, will draft the principal agreement that binds you to your franchisees.
Franchise offering circular - Francorp's legal department will draft an offering circular which will meet both Federal Trade Commission requirements and those of the states in which you intend to sell franchises.
State registration materials - Requirements of the states differ, and Francorp personnel will gather the proper materials and prepare the necessary forms required by each state where you wish to sell franchises.
Operations manual - Everything from company philosophy to advertising, from franchisee reporting to employee recruitment, from inventory acquisition to day-to-day operating procedures is included in your operations manual.
Marketing plan - To aid your franchise sales lead generation, Francorp's marketing department provides the media strategy, media budget, and media schedule. We also develop advertising copy and layouts, and/or direct mail materials, to generate interest among your target franchise prospects.
Franchise brochure - Because the prospect's first impression of your franchise is often created by a brochure, Francorp will design a brochure with special emphasis on exciting graphic design, and will describe in detail the elements of your franchise which make it attractive to prospective franchises.
Franchise sales training - During a two-day seminar, Francorp will instruct your franchise sales staff on all elements of the process, from legal considerations to closing techniques.
Implementation consulting – you'll always have ready access to professional assistance in all of Francorp's specialties during the critical period of franchise development.
Whenever problems or questions arise during this period, you may consult at no charge with any member of our project team.
Plus, you'll also receive a copyrighted 400-page manual covering all topics introduced in the franchise sales seminar in even greater detail.
Francorp's Track Record Of Success
Francorp has the most success stories of any franchise consultant. See our proven track record of client references who've succeeded with Francorp, and how we made a difference in their success. Learn the story behind our success to understand how Francorp came to be the franchising leader, and why it matters to you.
Attend an upcoming event to spend some time with Francorp's consultants. Or, visit our Chicago headquarters to see where it all takes place.
Every company is different, so we give you options for getting the process started. If you think you are franchisable, and that we can make a difference for you, call us to speak directly with one of Francorp's senior consultants. Perhaps you'd prefer to ask a question or inquire about our services online. Contact us and see how Francorp can assist your franchising efforts.
Francorp's difference can also be seen in our pricing structure. We understand the financial concerns of owner-operated companies, and offer you pricing and payment options to fund the future.
Our first step is always to determine your franchisability. Francorp differs from other companies that are focused on selling their services. It's important to us that we work only with companies that are franchisable . We want you to be educated about the franchising process, and about how long you should expect the successful franchise offering to take .
Do you own one of those companies? Is your company ready to succeed? We can fast track the process without interfering with your potential to succeed.
And if you don't yet have a company, but do have the necessary funds, Francorp can help you develop a franchisable idea from the ground up.
All Under One Roof
Successful systems create successful franchises, and our unique Proven Method maximizes your chances of success and minimizes costly mistakes. We also offer an array of resources that speak to our leadership in the industry.
In franchising as in so many other fields, there is no substitute for experience. Francorp's professional staff is the largest and most experienced in franchising, and you get the benefit of our collective credentials. It's no accident we're considered the industry leader.
As a result, your services and franchise help are performed "in-house," not delegated to outside contractors who may have no expertise in franchising. We employ a full-time staff of professionals to create franchise structure, franchise documents, marketing strategies and materials, operations manuals, sales training, video presentations, and general consulting.
Information about each client is shared among the professionals involved in order to keep the work product consistent from department to department.
A Comprehensive Franchise Program
It's normal to be nervous about what to expect when you've never done this before. Francorp has developed a step-by-step procedure to support you through the franchising process.
When you first contact Francorp, you won't get a sales pitch. You won't be pressured at all. But by time you leave your first meeting with one of our consultants, you'll walk out with an action plan to either become more franchisable, or to start the franchising process.
Franchise structure - As a first step in creating a franchise program, Francorp consultants prepare a written franchise analysis based upon your business, its competition, and the franchise industry at large.
Franchise agreement - Francorp's in-house attorneys, with input from Francorp's operations, marketing, and strategic consultants, will draft the principal agreement that binds you to your franchisees.
Franchise offering circular - Francorp's legal department will draft an offering circular which will meet both Federal Trade Commission requirements and those of the states in which you intend to sell franchises.
State registration materials - Requirements of the states differ, and Francorp personnel will gather the proper materials and prepare the necessary forms required by each state where you wish to sell franchises.
Operations manual - Everything from company philosophy to advertising, from franchisee reporting to employee recruitment, from inventory acquisition to day-to-day operating procedures is included in your operations manual.
Marketing plan - To aid your franchise sales lead generation, Francorp's marketing department provides the media strategy, media budget, and media schedule. We also develop advertising copy and layouts, and/or direct mail materials, to generate interest among your target franchise prospects.
Franchise brochure - Because the prospect's first impression of your franchise is often created by a brochure, Francorp will design a brochure with special emphasis on exciting graphic design, and will describe in detail the elements of your franchise which make it attractive to prospective franchises.
Franchise sales training - During a two-day seminar, Francorp will instruct your franchise sales staff on all elements of the process, from legal considerations to closing techniques.
Implementation consulting – you'll always have ready access to professional assistance in all of Francorp's specialties during the critical period of franchise development.
Whenever problems or questions arise during this period, you may consult at no charge with any member of our project team.
Plus, you'll also receive a copyrighted 400-page manual covering all topics introduced in the franchise sales seminar in even greater detail.
Francorp's Track Record Of Success
Francorp has the most success stories of any franchise consultant. See our proven track record of client references who've succeeded with Francorp, and how we made a difference in their success. Learn the story behind our success to understand how Francorp came to be the franchising leader, and why it matters to you.
Attend an upcoming event to spend some time with Francorp's consultants. Or, visit our Chicago headquarters to see where it all takes place.
Every company is different, so we give you options for getting the process started. If you think you are franchisable, and that we can make a difference for you, call us to speak directly with one of Francorp's senior consultants. Perhaps you'd prefer to ask a question or inquire about our services online. Contact us and see how Francorp can assist your franchising efforts.
Francorp's difference can also be seen in our pricing structure. We understand the financial concerns of owner-operated companies, and offer you pricing and payment options to fund the future.
Monday, August 11, 2008
Francorp Client - Dirty Dog Hauling
Dog days
Friends are in business for the long haul
By Elizabeth MillardAs published in: Franchise Times - August 2008
Two lifelong friends team up to create Dirty Dog Hauling, an African-American owned company going head-to-head (and truck-to-truck) with larger competitors.Some entrepreneurs team up because they've been pals for a few years, while others develop a friendship after months of working together. But for Leland Nelson and Gary Fallings, their partnership was forged decades ago, when the two were teenagers walking to school together.
Although they competed against each other on the football field as well as wrestling mat, they maintained their friendship in college despite being at schools that were hours apart. During one visit, they were both surprised to learn they'd even joined the same fraternity, Omega Psi Phi.
After graduation - Fallings earned a degree in education and Nelson 's was in accounting - they were again living in the same city, Harrisburg, Pennsylvania, and working odd jobs since work was proving tough to find. Fallings had a small landscaping business, and when the pair spotted a 1976 Chevy one-ton dump truck for sale, the friends invested $2,400 to buy it. They thought they could be "weekend warriors," Nelson says, and bring in some extra money.
The Dirty Dog trio: Gary Fallings, vice president; Shanika Brown, vice president of marketing and franchise relations; and Leland Nelson, president and co-founder."I had no idea I'd lose my job a week after we bought the truck," Nelson says. "Suddenly, it wasn't about having fun on the weekends making some extra money, it was a primary source of income."
Because their fraternity mascot is a dog, the duo named the enterprise Dirty Dog Hauling, and decided to focus not just on removing landscaping detritus, but also on commercial and residential junk.
"The name stuck, because it's kind of negative, but in a funny way," says Nelson. "People remember it, they call us that on the street, 'Hey, dirty dog!' - and customers love it."
When they opened their (truck) doors in 2005, it was at the height of the housing boom, so demand was great as people starting moving from rental properties to homeownership. And when the bubble burst just a few years later, demand was even higher with the need to clean out foreclosed properties.
At a glance
Franchise Fee: $25,000
Royalty: 8%
Co-op Marketing: 2%
Initial Investment: $70,500 - $93,000Beyond riding the housing wave, Nelson and Fallings have discovered that many people just want to get rid of their junk. Those with two-car garages yearn to park two cars there, rather than squeezing one car amid the discarded air conditioners, old boxes, bags of clothes, and other gear that seems to accumulate in life.
With a call center and courteous drivers, Dirty Dog stands out, Nelson believes: "Many people think that when they call a junk hauler, they'll get a couple of scraggly guys that will take their stuff and dump it illegally somewhere. We're changing that image."
Franchise opportunity
Nelson and Fallings were building their business through advertising and word-of-mouth, when they decided to attend the IFE in 2006 to scope out their competition. They were looking for 1-800-GOT-JUNK, Nelson says, and when they discovered that company representatives weren't there, they felt there was a bigger opportunity to be had.
"They had franchises that were sold out, areas where they couldn't expand, and we thought, this is a great chance to become the second biggest junk removal service," Nelson says.
During one forum, Nelson heard that "if you have no competition, you have no market," and he realized that Dirty Dog could be the Burger King - rather than the McDonald's - of the junk hauling industry.
The company decided to investigate franchising, and just a year later, signed up their first franchisee, based in Lancaster, Pennsylvania. Currently, there are "a lot of tire kickers" that call, Nelson says, but he hopes interest will turn into more franchises in the near future.
"You can have the best process and systems in the world for creating a franchise, but until someone buys, it's not validated," Nelson says. "We now have that validation, so we're ready to go to the next level."
Focusing on East Coast expansion first, the company has been trying to raise private equity to grow the concept, he adds.
Going Strong
Dirty Dog has had its challenges in the past few years, Nelson notes, but none of them were tied to the fact that it's a minority-owned business, even though there are few of those types of franchises that exist, he says.
"We just happen to be minority-owned, but we feel like the financing and opportunities are open to everybody," Nelson adds. "I do think that everyone faces the same challenges with putting together the right systems, and avoiding being undercapitalized. But if we can do it, anyone can do it."
The company got kicked off by startup money from family and friends, as well as money from both Nelson's and Fallings' 401(k) plans. "We put our skin in the game," Nelson says.
One differentiator, Nelson says, is a "franchise dashboard" they've developed that uses technology like Blackberry devices to keep haulers connected with customers. In keeping with the dog theme, the system is called Paw Tracker.
And they haven't forgotten their connection to the local community, which fostered them as teenagers and keeps them busy now. Every September, the company hosts "Woofstock," a dog parade that focuses on litter prevention and junk awareness.
The company has also worked on a dozen community service projects, in a program called (what else?) FETCH, which stands for Faith, Enthusiasm, Tenacity, Community, and Harmony. "You can't take without giving back," Nelson says.
Friends are in business for the long haul
By Elizabeth MillardAs published in: Franchise Times - August 2008
Two lifelong friends team up to create Dirty Dog Hauling, an African-American owned company going head-to-head (and truck-to-truck) with larger competitors.Some entrepreneurs team up because they've been pals for a few years, while others develop a friendship after months of working together. But for Leland Nelson and Gary Fallings, their partnership was forged decades ago, when the two were teenagers walking to school together.
Although they competed against each other on the football field as well as wrestling mat, they maintained their friendship in college despite being at schools that were hours apart. During one visit, they were both surprised to learn they'd even joined the same fraternity, Omega Psi Phi.
After graduation - Fallings earned a degree in education and Nelson 's was in accounting - they were again living in the same city, Harrisburg, Pennsylvania, and working odd jobs since work was proving tough to find. Fallings had a small landscaping business, and when the pair spotted a 1976 Chevy one-ton dump truck for sale, the friends invested $2,400 to buy it. They thought they could be "weekend warriors," Nelson says, and bring in some extra money.
The Dirty Dog trio: Gary Fallings, vice president; Shanika Brown, vice president of marketing and franchise relations; and Leland Nelson, president and co-founder."I had no idea I'd lose my job a week after we bought the truck," Nelson says. "Suddenly, it wasn't about having fun on the weekends making some extra money, it was a primary source of income."
Because their fraternity mascot is a dog, the duo named the enterprise Dirty Dog Hauling, and decided to focus not just on removing landscaping detritus, but also on commercial and residential junk.
"The name stuck, because it's kind of negative, but in a funny way," says Nelson. "People remember it, they call us that on the street, 'Hey, dirty dog!' - and customers love it."
When they opened their (truck) doors in 2005, it was at the height of the housing boom, so demand was great as people starting moving from rental properties to homeownership. And when the bubble burst just a few years later, demand was even higher with the need to clean out foreclosed properties.
At a glance
Franchise Fee: $25,000
Royalty: 8%
Co-op Marketing: 2%
Initial Investment: $70,500 - $93,000Beyond riding the housing wave, Nelson and Fallings have discovered that many people just want to get rid of their junk. Those with two-car garages yearn to park two cars there, rather than squeezing one car amid the discarded air conditioners, old boxes, bags of clothes, and other gear that seems to accumulate in life.
With a call center and courteous drivers, Dirty Dog stands out, Nelson believes: "Many people think that when they call a junk hauler, they'll get a couple of scraggly guys that will take their stuff and dump it illegally somewhere. We're changing that image."
Franchise opportunity
Nelson and Fallings were building their business through advertising and word-of-mouth, when they decided to attend the IFE in 2006 to scope out their competition. They were looking for 1-800-GOT-JUNK, Nelson says, and when they discovered that company representatives weren't there, they felt there was a bigger opportunity to be had.
"They had franchises that were sold out, areas where they couldn't expand, and we thought, this is a great chance to become the second biggest junk removal service," Nelson says.
During one forum, Nelson heard that "if you have no competition, you have no market," and he realized that Dirty Dog could be the Burger King - rather than the McDonald's - of the junk hauling industry.
The company decided to investigate franchising, and just a year later, signed up their first franchisee, based in Lancaster, Pennsylvania. Currently, there are "a lot of tire kickers" that call, Nelson says, but he hopes interest will turn into more franchises in the near future.
"You can have the best process and systems in the world for creating a franchise, but until someone buys, it's not validated," Nelson says. "We now have that validation, so we're ready to go to the next level."
Focusing on East Coast expansion first, the company has been trying to raise private equity to grow the concept, he adds.
Going Strong
Dirty Dog has had its challenges in the past few years, Nelson notes, but none of them were tied to the fact that it's a minority-owned business, even though there are few of those types of franchises that exist, he says.
"We just happen to be minority-owned, but we feel like the financing and opportunities are open to everybody," Nelson adds. "I do think that everyone faces the same challenges with putting together the right systems, and avoiding being undercapitalized. But if we can do it, anyone can do it."
The company got kicked off by startup money from family and friends, as well as money from both Nelson's and Fallings' 401(k) plans. "We put our skin in the game," Nelson says.
One differentiator, Nelson says, is a "franchise dashboard" they've developed that uses technology like Blackberry devices to keep haulers connected with customers. In keeping with the dog theme, the system is called Paw Tracker.
And they haven't forgotten their connection to the local community, which fostered them as teenagers and keeps them busy now. Every September, the company hosts "Woofstock," a dog parade that focuses on litter prevention and junk awareness.
The company has also worked on a dozen community service projects, in a program called (what else?) FETCH, which stands for Faith, Enthusiasm, Tenacity, Community, and Harmony. "You can't take without giving back," Nelson says.
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