Franchise Brokers Association BLOG

Franchise Brokers Association Welcomes

Guidant Financial to Annual Convention

Financing Provider Announced as Lead Sponsor in Industry Event

Franchise Brokers Association (FBA), a trade Association for franchise brokers and consultants, has announced Guidant Financial as the Platinum Sponsor of their annual convention.

Guidant Financial is the recognized leader in one-stop franchise financing.  With 92% of deals funded within 21 days, the company has helped more than 5,000 entrepreneurs in all 50 states safely invest their retirement funds into a franchise without taking a loan or a taxable distribution.  With their vast national network of small business lenders, Guidant has facilitated thousands of unsecured and SBA loans for franchisees.   And, with the experience and reputation to help aspiring franchisees realize their goal of small business ownership, Guidant’s clients are 63% more likely to succeed than traditional small business owners. For the third year running, Guidant has been included on Inc. Magazine’s list of fastest growing companies. The founders were honored by the Small Business Administration as the National Entrepreneurs of the Year in 2007.

The FBA’s convention is an event organized to bring together the industry’s top brokers and consultants, franchise industry vendors and franchise concepts.  The event is taking place October 20 – 22, 2010 in Orlando, FL and will feature workshops, trade shows, speakers and panel discussions.

“With small business funding at the forefront of the news and the cornerstone of small business success, we are excited to have Guidant as the event’s sponsor and educating the attendees on financing options,” said FBA Executive Director, Sabrina Carter.

In addition to Guidant Financial, exhibitors at the 2010 convention include Sport Clips, Color Glo International, PuroClean, Crestcom International, Service Team of Professionals and The National Franchise and Business Opportunities Show.

About Franchise Brokers Association

Franchise Brokers Association is an Orlando, FL based trade organization.  The FBA supports all members of the franchise community and can facilitate all steps in the franchise process, from franchise development to unit sale.  FBA was founded in 2008 by franchise consultant Sabrina Carter and has grown to over 550 consultant and franchise members.  The FBA’s purpose is to provide support and improve the industry standards for franchise investment, development and sales.

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The FBA is pleased to announce FranRadio — a nationally syndicated radio and television Franchise talk radio show — will be in attendance and filming at the upcoming Annual Convention.

FranRadio will be conducting interviews at the Convention with Franchisors and Franchise Brokers to air on their show.

Brokers can request interviews by contacting Keyania Johnson.

Franchisors can request interviews by contacting Andrea Saunders.

For additional information on the FBA Convention, please click here.

Researching Franchises and Matching Them to the Client

After going over the information we gathered on the franchise (discussed in the last post), my client was still fond of the concept, although they understood that they were not being set up for success by using that system.  We went through a questionnaire that helped me to understand what they were truly looking to achieve with this franchise.  The results provided me a clear picture of what they could qualify for and what type of lifestyle they needed the business to create.  I also understood the family involvement and the magnitude of what their success or failure meant to their life.  I understood them.

We then input the information into the Franchise Brokers Association’s Franchise Search Tool and came up with a list of franchises that matched their criteria.  We went through the franchises one by one and discussed the pros and cons of each franchise as well as the longevity, uniqueness and profitability of each concept.  At the end of the day, we used the comparison grids provided by the Franchise Brokers Association to compare the different concepts that we decided were interesting to the client.  We chose 4 franchises to investigate further.

We had completed the first several steps in the consulting process and were ready to talk to the Franchisors.  We determined that our next meeting would be facilitated via conference call and departed for the day.

Learn more about using a Franchise Broker here.

Learn more about becoming a Franchise Broker here.

Snap Fitness is the world’s fastest growing fitness franchise.

Snap Fitness is the fast, convenient and affordable workout alternative to traditional “big box” health clubs. They offer members no contracts, state-of-the-art workout equipment and 24/7 access to all of their clubs worldwide.

For entrepreneurs, they provide a proven, turnkey business model that is easy to own, easy to manage and easy to market. In 2009, Entrepreneur Magazine listed Snap Fitness as the top fitness franchise in North America, and one of the top 5 best new franchises overall. Best of all, 60 percent of Franchisees are absentee owners, allowing you to keep your day job and earn passive income.

Snap Fitness offers their Franchisees ongoing corporate support that is unmatched by the industry and are constantly finding new revenue streams to help owners boost their bottom line.  They help owners select their location and assist with lease negotiation.  They also help with build out of the chosen space, have a dedicated in-house support team and offer discounts from the industry’s leading equipment providers.  After the club is ready, the Franchisee joins them for four days of pre-opening training at their world headquarters where they provide education and tools needed to operate the business.  They offer full grand opening marketing support to help get the word out about the club, as well as year-round promotional support and one-on-one contact with a franchise account manager to help with continued success.

Learn more about Snap Fitness by contacting a FBA Member here.

Learn more about becoming a Franchise Broker or FBA Member here.

Jules Mawson
Franchise Advantage Team

Jules’ Mission:

My goal is to help people get their lives back, stop making money for others and start building their own dreams of business ownership, more family time and financial freedom.

Bio:

I graduated from Drama School in London and moved to California to pursue a career in acting and screenwriting. I got into sales to support myself and became a consultant in the Education and Long-Term Care industries where I discovered that helping others is much more rewarding than going the hotshot actress/writer route.

After my husband passed away unexpectedly, I needed to find something where I could support myself for the long term. I also needed to stay at home to take care of my Mom who had senile dementia. A friend suggested checking into becoming a Franchise Broker. I did the research and became a Broker in November of 2008 and finally found my niche.

It wasn’t always easy, in my first six months, five candidates went to Discovery Day and for one reason or another they all dropped out. Then the economy went south and I had to get a part time job. So I kept listening to Brian Tracey, reset my goals and focused on finding those few serious candidates. With the cost of leads I always had a hard time letting anyone go but I’ve learned not to chase people anymore.

Why She’s a Broker:

I love my job! At the end of the day you feel that you can make a difference in people’s lives and also make a very nice living.

Becoming a Trusted Advisor

The second lead that my referral source (who we met in the first post in this series) sent me came into my office to meet me.  He and his wife had traveled a long way and were vacationing nearby.  Before we met in person, they sent me an e-mail with information on a franchise they were interested in.  It was a franchise that was not in the Franchise Brokers Association’s Approved Franchise list.

They sent me the FDD of the franchise.  That was all I needed; I began my research and read the FDD (a 200+ page document that is governed by the FTC, also known as a Franchise Disclosure Document).  I used the one hour of complimentary legal services that our attorneys at the FBA provide all members’ clients.

In reviewing the information, we found out that the Franchisor’s name was not a valid trademark and in fact the trade name was owned by another company.  This meant that any Franchisee that was in that system was operating under a name that violated U.S. Patent and Trademark Law.  That could be detrimental to my client’s business.

Can you imagine buying a franchise for the brand name recognition then, after 7 years in the business, you are sued for operating under the name you bought from the franchise?  Then you would be forced to change the name of your business and pay for all re-signage, penalties and other fees.  What a mess that would put you in!

That’s not all.  In doing the research we found that 35% of all Franchisees in the system had failed. That meant that my client had a 1 in 3 chance of not succeeding. Yes, a large part of the Franchisee’s success is their work effort and determination, however we need to make sure that the Franchisor knows exactly what to do to help willing Franchisees.

Next we found out that every Franchisee in the system was operating differently.  They were not “following the system” as the Franchisor explained.  The problem with that is that it is the Franchisor’s job to:

1) Make sure the system works

and

2) Make sure Franchisees are doing their best to stay on track with the system

The fact that all of the Franchisees were operating differently told us that the system wasn’t a system at all.

We also found out that this Franchisor had hundreds of franchise concepts under their belt.  They were a company that simply sold franchises and didn’t necessarily have the experience of operating the types of businesses they were selling.  After uncovering all of these things, we decided that the risk was far too great to go with this system.  The franchise was by no means a bad franchise, it simply too risky for this client.

As the client walked in, I was prepared with this information.  As you can see, very quickly they realized the importance of using a good franchise consultant.  They were relieved and were ready to find something that was a better fit for their risk tolerance and financial goals.

Learn more about using a Franchise Broker here.

Learn more about becoming a Franchise Broker here.

MassageLuxe

MassageLuxe is part of the rapidly growing massage and spa industry.  Strong growth and unprecedented demands has made the massage industry an excellent industry to get into right now.

In 2007, MassageLuxe was founded and designed to achieve and deliver the highest standard in the massage membership business.  They accomplish this by hiring the most qualified massage therapists at all locations, and looking for Franchisees that share in  their passion and vision.

MassageLuxe offers personalized service in a relaxed and upscale environment, at an outstanding value.  By offering a membership-based service, the Franchisees of the system are afforded the opportunity to build a strong recurring monthly revenue stream.

Interested in learning more about MassageLuxe?  Contact one of the FBA members here.

This purpose of this blog is to chronicle and educate franchise consultants, potential franchise consultants, and franchise buyers about what it is like to be a franchise consultant and what it is like to use a franchise consultant.

Acquiring a Client

Three months ago I began networking my franchise consulting business here in Orlando, Fla.  I have networked the business before, but I was interested in testing a new lead generation technique and began a campaign where I went to 45 events over a 6 week period.  That is a lot of networking!  I tested different types of venues including high-end clubs, Meet Up groups, a local BNI chapter, Chamber of Commerce, socials, Red Carpet Monday events, charity golf tournaments, connections groups, leads groups, women’s groups and more.   Through that testing, I meet at least 12 qualified candidates that were interested in purchasing a franchise.  More importantly, I meet someone that later referred me to an excellent referral source.  That company contacted me through our website and has become a potential referral partner that almost sounded too good to be true.

I began working with this referral source.  We trained each other on the basics of our companies and put the wheels in motion for this machine to generate qualified referrals that we could help.  Several months later we began receiving highly qualified prospective Franchisees. The test had worked.  With a little bit of effort and commitment to complete the test and do what I set out to do, I generated a quality referral source that will help 4 companies to succeed.

I can help the client that is looking for a franchise.  I can give that client all the assistance, tools and research to make a great decision on a franchise.  Because I am a member of the Franchise Brokers Association I can also give them ongoing support and training through my membership ensuring they are going to have the best opportunity for success.  As a franchise consultant, I know that the work that I do and what I have to offer my clients is far better than what they could create on their own.

I can help the Franchisors to find a quality Franchisee.  I helped the company that I partnered with to give their client a successful business.  And lastly, I can help my company add another successful Franchisee into the market place to create jobs and to create a future for themselves.  That kind of success is something I do every day and for that I feel victorious.

Check back to see what next steps I take my client through to make their entrepreneurial dream a reality.

Learn more about using a Franchise Broker here.

Learn more about becoming a Franchise Broker here.

Shawn Means

Franchise Connections, LLC

Mission Statement:

To help clients achieve their dreams & goals of purchasing a franchise business and/or expanding their existing business through creating a franchise.

* To deliver the highest levels of professionalism, information, coaching and guidance throughout the entire process of finding, validating and purchasing the franchise or creating one.

* To maintain a list of the highest quality of strategic professional advisors and services, and creative solutions to provide to my clients as needed.

* To facilitate an overall positive experience with every client creating a desire in them to refer other potential franchisees to us.

Bio:

“Over the past 23 years I have spent in the Pharmaceutical industry with 20 of those years in various sales management positions of increasing responsibility, I have learned many critical skills that I have been able to transfer to my new career as a Franchise Consultant.

“Some of the most memorable achievements during this time were consistently achieving or exceeding sales & leadership goals, being honored as ‘Outstanding Manager of the Year’ (Regional Award), managing and maintaining diverse teams, having high retention rates and promotion rates of team members. Developing lasting friendships and people who to this day still allow me to mentor and counsel them.”

Why Shawn Became a Franchise Consultant:

“I became a franchise consultant after an intense 4 month self search for the right business opportunity. I did find and use three different franchise brokers, each helped direct me towards different opportunities but only one actually listened enough to help me find what I really wanted, which was the franchise broker opportunity, and earned the commission. The others lacked follow through and/or listening skills and showed me what they wanted versus what I wanted. This has become two main things that I have incorporated into my business as a standard as they are critical to increasing your success rate.

“I also felt that this business would allow me to help others like me who were down-sized and in need of replacement incomes.

“Finally, I felt I could use the sales skills, coaching and training skills, as well as, the communication skills that I had developed and utilized throughout my management career in pharmaceuticals.

“To date I have had success in helping people through the process to identify validate and get the offer stage with the franchisor. I have several people in the pipeline that should close this year.”

Al’s mission is to provide his clients with expert advice about the franchise industry, helping them navigate through the available data, match their lifestyle and financial requirements to the perfect franchise while maintaining the highest levels of honesty and integrity.

Al’s Personal Achievements

“Achievements are many but perhaps the two I am most proud of are:

“First, I returned to college after 25 years and received my Bachelors degree with a 3.97 GPA in 25 months. The second was the creation of 2 sales programs for the 8th largest chain of car dealerships that increased their sales from 700,000 to 4 million in 1 year of operation and are still in place today after 7 years running.”

Why Al Became a Broker

“I became a broker because it was time for me to be in business for myself. When I started this business my goals were to achieve the same goals I was successful at in the corporate world. I wanted to support my family, create wealth for the future, have flexibility, a fun business to operate, and help people at the same time. To date I have closed 9 deals in 15 months. While this is below my personal expectations in total number and in revenue I am certain I will get there by year two.

“I take pride in my ability to improve upon others ideas as well as improve my own. I work very hard at listening to what the clients are telling me what they want in a business. I feel I can read people pretty well as long as they are honest with me. My strengths are perseverance, determination, follow thought, the ability to lead, listening skills, and knowing when to back off or intervene on a client’s behalf. I always have a great feeling of accomplishment when I find the right fit for a client or help another broker become more successful.”