1. Franchises: 10 Reasons A Franchise May Be The Viable Business Choice
Mr. Roeshink – Financial Operations

2. What is a franchise?
Franchising is the practice of using another firm's successful business model.
Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a franchisee, to use the supplier's trademark and distribute the supplier's goods. In return, the operator pays the supplier a fee.

3. 3 Basic Types of Franchises
1) Distributorships, which grant the right to sell their parent company's product(s) such as auto dealerships (Toyota, Ford, Mercedes, GM, etc).

4. Trademark/Brand Licensing
2) Trademark or brand name licensing, which gives the licensees the right to use the parent company's trademark or brand in conjunction with the operation of their own business ie. beverages (CocaCola) and sport franchises (Miami Dolphins, New York Yankees, etc).

5. Business Format Franchise
3) Business format franchises, the type most people are familiar with (Subway, Meineke Muffler, Circle K)

6. Top 10 Franchises for 2013 Hampton Hotels Subway
Jiffy Lube Int'l. Inc.
7-Eleven
Supercuts
Anytime Fitness
Servpro
Denny's Inc.
McDonald's
Pizza Hut Inc.

7. Let’s look at the most popular franchise format…
Business Format
Business format franchisors offer to their franchisees the license or right to sell its goods or services and/or use its business techniques.

8. Cont.
The franchisees usually pay an initial fee to acquire this right, and thereafter pay a percentage of their gross sales to the franchisor throughout the term of their franchise contract. In return for these payments, franchisees gain privileges, including the right to sell a proven and recognized product or service, to use the franchisor's business practices, and to receive initial training and ongoing support.

9. Additional Responsibilities
Additional responsibilities can and usually do include:
Requirements to meet a variety of quality controls for products and services sold.
Restrictions on what they can sell or how they can operate using the company's name.
Specifications for their business location and site appearance.
Prohibitions on the operation of any similar businesses during or after the term of the franchise agreement.
Franchisees usually have an advantage over their nonfranchisee competitors, since they have the rights to use the franchisor's: Brand names, trademarks, copyrights, trade secrets, and patents.

10. Additional Responsibilities
Uniform logos, storefronts, and interiors.
By following the franchisor's business practices and offering products that meet the company's standards, franchisees can consistently provide customers with quality goods and services.
Research has shown that the success rate of new franchisees is much higher than that for other new business start-ups.

11. Why Franchises Work… So why do franchises work?
Here are the top 10 reasons…

12. 1. Turnkey Business
There are many entrepreneurs that have exactly what it takes to run a successful business but don’t have what it takes to get their business up and running. Whether it be financing, negotiating lease terms or even the confidence it takes to quit their job and start their own business.
Buying a franchise eliminates all the hard work: finding a location, negotiating a lease, hiring reliable contractors and doing all this on-time and within budget. When you buy a franchise you are buying a complete turnkey business.

13. 2. Proven System in Place
When you buy a franchise you buy a system. All franchises have an already-established system in place that you must follow. These systems are designed to improve the overall productivity and increase sales of each franchise. Having a proven system already in place eliminates the guesswork and errors a common business owner would normally face.

14. 3. Higher Likelihood of Success
Buying a franchise is very different from starting a mom-and-pop business. Since there is an already established system in place, there is a higher likelihood of success. If you follow the system the franchisor has put in place, you should be on your way to running a very successful business.

15. 4. Corporate Image and Brand Awareness
If you buy into a franchise system that is already established the corporate image and brand awareness is already recognized. Customers are usually more comfortable purchasing items they are familiar with and working with companies they already know and trust.

16. 5. Easier to Obtain Financing
Lenders are usually very comfortable financing the purchase of a franchise because they already have a proven track record. Bankers usually look at successful franchise chains as having a lower risk of repayment default and are more likely to loan money based on that premise. In addition, some franchise systems even provide in-house financing and/or leasing options.

17. 6. Training
Most franchise companies offer a 1-4 week training program that is usually held at their corporate offices or at an actual franchise location. This is what makes franchises stand out from every other business or business opportunity. The franchisor will train you to run your franchise exactly the same way their other franchise locations are run. This will ensure that you are running your business efficiently and will help to eliminate any common mistakes a new business owner usually faces.

18. 7. Ongoing Support
When you buy a franchise you are never alone. You will always have the support of the franchisor and the support of knowing you are part of a growing family. You will always be able to pick up the phone and ask questions to the franchisor or even to other franchisees.

19. 8. Marketing
There is usually no need to worry about advertising your franchise. The franchisor usually takes care of handling all of the marketing. If the franchisor does not handle the marketing, they will have an outline for you to follow and sometimes specific vendors that will have systems in place for you to use.

20. 9. Exclusive Territory
When you buy a franchise you are also buying an exclusive territory in which to do business. Franchisors will only allow a certain amount of franchises to be open within a certain geographical region. You will be entitled to a certain area and no other franchises (within your franchise system) can be open within that area.

21. 10. Own Multiple Locations
Being a part of a franchise system will always offer you more opportunities to grow within the system. Once you have become a successful franchise, owner the next step is to become a multi-unit franchise owner.  After you have one successful franchise open with a great management team you can focus time on opening a second location. Multi-unit franchise owners manage more than one location and are able to sometimes double their income by taking on more than one location. Owning multiple franchise locations can be very lucrative.