Franchise Brokers Association BLOG

Demographics Studies for Opening a Small Business

Small businesses are hugely important to our current economy.  Small business contributes to our GDP, increases the number of available jobs, and enrich our local communities.  It’s hard to find someone who is not a big supporter of small business, and increasingly we are finding more and more people who are interested in being entrepreneurs.  Business ownership is very appealing, it makes you the decision maker.  You are the last to get laid off and the first to know when problems are on the horizon.  You can approve your own vacation time, raises, perks and schedule.  You also get the advantage of choosing your coworkers, if you even want coworkers.

Once you get excited about the idea of owning your own business, there is the understandable question of can my business survive in my area?  Do I have the audience and the clientele to support the business I want to open?  Franchise Brokers can help with that.  Franchise businesses are great at helping their franchisees choose the best businesses and locations for them and their region.  You know the old adage “more is less?“  Well, when it comes to information more is, well, more…and better.  In addition to the assistance and support of the franchisor to choose the best location for your business, members of the FBA can also provide you with access to demographics reports and studies that can help you determine the viability of your business in your location.  What’s the makeup of your community, age groups, gender, income levels, population density, etc.?  Would a sports bar and grill thrive in your area?  How about a clothing boutique, sandwich shop, marketing firm, or B2B business?  Demographic reports can give you great insight into the future success of your company.  It’s important to have the help of a professional when reviewing this information, as well.  Having the information is the first step, deciphering it and understanding how it impacts your business in the next.  Brokers and consultants are the professionals that can help you glean the information you need from these materials.

Interested in looking at the demographics for your region?  Contact one of our members by going here and filling out a request for information form.

It’s pretty remarkable how many different types of franchised businesses there are available.  When most people think of a franchise, images of McDonald’s, Burger King and Subway come to mind.  But less often do people think of the other business concepts the franchising industry has to offer, like:

• Clothing boutiques
• Day Spas
• Hair Salons
• Business Services and Coaching
• Childcare and Development
• Tutoring and Education
• Financial and Loan Services

There are thousands of franchise and business opportunities to invest in.  And, while many people initially say “I want to own a restaurant” or “I want to own a gym” there are important factors than can help you choose the very best business option for you.  Are you looking for:

• Flexible schedule
• Home office based operations
• Low investment level
• High return on investment
• Quick start up
• Small office or small number of employees

This is where a franchise broker can provide you with valuable guidance and assistance.  Their purpose is to not only match you with the best industry for you, but also the best business model.  Your work-life balance and your business goals are taken into consideration when researching your franchise options.  Do you want to:

• Make a difference
• Operate a green company
• Work with other businesses and professionals
• Provide job opportunities

It is important to take all of these items into consideration when investigating franchise and business opportunities you are interested in.  While these things can be daunting, having an experienced partner in your research process can prove immensely helpful (and stress reducing).

If you’re interested in talking to someone about your options or want to learn more about the benefits of using a franchise broker, click here and fill out an Information Request Form.

Each year at the Franchise Broker Conference and Expo we strive to bring the most valuable and educational trainings and presentations to our attendees.  This year we held 7 educational breakout sessions over the three day event.  These sessions, totaling 6 hours, can be applied to each attendees Certified Franchise Broker^SM designation (a professional designation for franchise salespersons developed and offered by the FBA).

We offered courses in:

Franchise Sales Compliance Training – a course that educates salespeople in the laws of the FTC pertaining to the sales of a franchise.

Using Immigration Visas to Sell Franchises – this course coaches attendees on the opportunities to expand franchises through E2 Visas.

Voicemail and Email – Improving Metrics – demonstrating techniques to improve call back and close ratios.  This is a course that attendees can use in their business immediately, as soon as they return to the office.

Social Media Marketing – Social Media is still a huge, untapped market for many small businesses, this course helped attendees put together an effective social media strategy.

Fee-Based Consulting – While franchise brokering is a free service to the brokers’ clients, there is revenue opportunity that broker and consultants can still develop.

Build Value Through the Entire Sales Process – a very popular course that looked at how to keep clients focused and match concepts to their highest values, becoming a truly trusted advisor to the client.

Master Franchising to Increase Your Revenue – this course focused on the power of Master Franchising, and how attendees can tap into it.

We welcomed some of the industry’s most renowned speakers including Carl Gould, Dan Durney, Eric Riess, Larry Carnell and Todd Weiss.

Each year we build on the courses and next year look forward to providing even more opportunity for career growth and development for all attendees.

Each year the official kick-off of the Conference and Expo is the Welcome Reception that takes place on Wednesday evening (a special thanks to Eric R. Riess and the folks at Greensfelder, Hemker & Gale, P.C. who once again sponsored the reception!). The welcome reception is an opportunity for all conference participants (brokers, exhibitors, franchisors and FBA staff) to meet and greet before the excitement and rush of the courses and next day’s events. There was music, drinks, hors d’oeuvres and good conversation.

Life at Play  joined us and brought their photo station. It was a fun touch to the reception and a perfect ice breaker. Attendees were able to play dress up with big sunglasses, hats and boas and take funny pictures with each other.

Many brokers were able to finally meet face-to-face with franchisors that they have been working with all year. Everyone made sure to make introductions between people who didn’t know each other or that they knew would have a mutually beneficial relationship.

Cocktail and business card in-hand, this is the perfect kick-off event each year.

Each year, we are inspired by all the amazing results that stem from the best brokers, consultants and franchisors coming together to meet, network and learn at the FBA’s Annual Convention. Relationships (and deals) are made each year, and we want to share a few of these phenomenal success stories with you.

At the 2009 convention one of the exhibiting franchisors met one of our top consultants. They forged a relationship and continued to stay in contact after the event ended. The consultant was offered an opportunity to work internally with the franchise. He has since helped them strategize and execute their growth plan.

At the 2010 convention, a franchisor met one of our brand new brokers. Shortly after the event, the broker was speaking with a new client and chose to show the franchise that he had recently formed a strong relationship with. The client ended up purchasing four territories and is planning on buying more! After this placement we featured this success story on our weekly Executive Director’s Forum call. Soon after, several other consultants targeted and sold this system, all from the relationship built at the convention.

The small investment to attend or exhibit at the Convention can be an invaluable investment in the growth and success of your business.

Want to network and build valuable connections? Join us at the 2011 Franchise Brokers Association Convention, taking place November 9 – 11, 2011 at the Wyndham Orlando Resort. Click here for details.

*Today’s post is from FBA Member Robert Slatkin on his recent deal with CertaPro Painters.

America’s Best Brand

By: Robert C. Slatkin, President

Vantage Franchises – FBA Member

A Division of Vantage Business Group, Inc.

We’ve all seen polls, articles, and studies trying to determine “America’s Best Brand.” Is it Apple, McDonalds, Coke, Google? The arguments go on and on, and each year the same top 5 names seem to just get switched around.

I would like to nominate a Brand that is often overlooked by almost everyone in these discussions, but could possibly be the most relevant one to those of you reading this article. The Brand I am referring to is David Brand. For those of you that don’t know David, you should make it a point to get to know him. He is the Regional Manager of Recruiting for CertaPro Painters; North America’s largest painting company, and a preferred Franchisor with the FBA. David and I just closed a challenging deal together. The way he conducted himself only solidified the high regard I had for him since we first met, and inspired me to write this.

David is what I call “a difference maker.” By that I mean someone who can have a materially positive impact on your business. If there is a problem, and there is a possible solution, he will find it.  He will go out of his way to satisfy your clients, and, because of all this, his knowledge, work ethic, and CertaPro’s attractive, segment leading Franchise, the bottom line is that he will put more money in your pocket (if that’s important to you).

Here are some specific reasons why, to me, David Brand stands out:

• He does what he says he will do. (Okay, this means he already stands above 80%-90% of “the pack”)
• He does not avoid issues, he deals with them.
• He provides intelligent and creative solutions.
• He acts with honesty, directness, and integrity.
• But, the biggest factor that, I believe, sets David Brand apart from other Franchisor Representatives, is that he truly becomes your Partner in the process like no one else I know.

I am not saying there are not some excellent people to work with throughout the franchise business. I know there are, and I have had the privilege of working with some of them. But, I am saying that with David, there are no ego battles, no attitude problems, and no antagonistic behavior, unless you are bringing it.  Again, working with David is a partnership. What a difference that makes! And what a pleasure! Without going into all the details, without David Brand, there is absolutely no way my recent CertaPro deal gets done. Period.

So, for all these reasons, he gets my recommendation and vote for America’s Best Brand!

Contact Information:

Robert C. Slatkin, President

Vantage Franchises

A Division of Vantage Business Group, Inc.

www.vantagefranchises.com

*I consider David my business partner when doing CertaPro deals, a trusted advisor, and a friend.

*I have no financial interest nor receive any kind of compensation for anything I have said or written here.

The FBA is hittin’ the road again, and traveling down to Ft. Lauderdale for The Franchise and Business Opportunities Expo, June 4 – 5.

Join us to learn about the industry and opportunities for YOU in it!  Learn about financing options and other assistance available to you to own your own business.

Want to go to the show? Want to go for FREE?  Print the ticket below for free admission!

This is a franchise I would feel comfortable buying myself or putting my family into, that’s when I know I have a good one.

Since this client lived in my market I contacted several contractors to help him with staff.  I contacted several insurance companies and introduced my client.  I input him in my system to receive monthly small business and sales training.  I gave my client a schedule of calls that we are to have as a follow-up and offered to consult him whenever he had questions.  Every little bit counts.  New business owners are typically needier in their first several months, but as soon as they get acclimated to their programs and systems they advance on their own.  This is an extremely satisfying process for me and these are the ways that I go the extra mile.

I hope you enjoyed this blog about how franchise consulting can benefit a prospective franchisee.

Learn more about using a Franchise Broker here.

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

The below is a post from FBA Member, Andy Lamedman.  Andy joined the FBA in June of 2010 and has stood out as a true professional who upholds the integrity of the industry.  Thank you Andy for your insight and for sharing your experience.

Networking Pays… Big Commissions!

I have always believed in and heavily touted the power of networking.  And still do… even more so now as you’re about to find out.  For anyone that has ever wondered what the value of networking can mean to them, please continue reading.

Whether you go to a networking breakfast at 7:00 AM, or attend an evening cocktail mixer that starts at 6:30 PM, you’re investing extra time into your work day.  So why do it?  Here’s why:

A few months ago I attended an evening mixer and met a woman networking her business.  We engaged in the obligatory chatter and exchanging of business cards.  As is my custom, I followed up with a “nice to meet you email”, and my personal offer to learn more about her business in an effort to pass some referrals her way (I always start by giving).  I then put her name on my monthly “drip system” distribution list to begin sending her my newsletters and other e-blasts.

One day, out of the blue, I received a call from her saying; “Hi, remember me?”  Well, of course I do.  She indicated she would like to learn more about what I do, and how I could possibly help her find the business of her dreams. Unfortunately, she hastened to say, that she did not have the requisite finances to invest in such a venture.  However, she did say; she has a friend who might be interested in partnering with her as a financial investor to her “sweat equity” investment.  And so we began the process…

Fast forward now to the close.  We ultimately inked a deal where they are partnered in a Junk King franchise in Los Angeles, CA.  And, I received a commission approaching $30,000 at first blush, with much more to come on the back end based on the structure of the deal.

Junk King had wide open territory in Los Angeles County.  They sell their territories in blocks of 500,000 population sectors.  My clients purchased four-blocks totaling Two Million population.  We also negotiated the Right of First Refusal for the balance of Los Angeles County and the neighboring community Southeast of L.A. County known as the Inland Empire.  As they exercise that right and purchase additional territories, the Franchisor will continue to pay me my broker fee referral commissions (yes, we have this in writing).

Additionally, my networking pal (now client and friend) subsequently referred me to her neighbor who is about to be laid off from corporate America and receive a sizable severance package.  He too, is now looking to secure his future and we are taking him down the path to freedom, et cetera.

So, the moral to my story:  Networking Pays… Big Commissions! I met someone that had interest but no money.  She introduced me to someone with money.  They formed a partnership and closed a deal that paid me a sizable commission, with additional commissions yet to come as they develop their business.  Additionally, she introduced me to yet another lead that has potential to earn me more money yet again.  All of this from someone that I did not pay a nickel for in terms of “lead cost”.  This was a free lead… just from attending a networking event.

Further appreciation for closing this Junk King deal goes out to:

• Dennis Mulgannon, Franchise Development Director / Jung King:  Dennis is the consummate professional and was extremely easy to work with.  He’s efficient and very accommodating to both the client and broker requests.  Simply a joy to do business with.

• Tom Mc Donald, President / IRA Rollover Solutions: Within 45-minutes of the initial introductory call with my clients, Tom outlined his services and fees, took the application and credit card number from my client and was on his way to expediting the filing of  Articles of Incorporation with the State of California.  He also set up a 401(k) plan in the name of the new corporation for the client’s new business, secured a third party administrator for the 401(k) plan, and obtained the Federal Tax I.D. numbers, for both the Corporation as well as the new 401(k) plan.  Additionally, he handled all paperwork related to rollover funds making it easy and seamless for my client to gain access to his funds required to wire transfer to the Franchisor in a timely fashion.  Not only was Tom knowledgeable, efficient and effective, he pays a broker referral fee of $1,500, which is 50% higher than his competitors.

• Eric Riess, Legal Expert Extraordinaire / Greesnfelder, Hemker, & Gale, P.C.: Talk about a Master Class.  Eric provided the one-hour of free legal counsel we offer and within the first 30-minutes alone had fully educated my clients.  He answered their FDD questions, reviewed their Addendums to the FDD that had already been verbally negotiated with the Franchisor, and guided them on how best to structure their Joint Venture Partnership Agreement between the two of them.  

At the end of the day, all parties worked exceptionally well and in concert for the good of the ultimate result… putting a client in business!

Congratulations, Andy!

If you’d like to learn more about working with a franchise broker, click here

Signing the Agreement

There were some complications before the closing that related to the referring entity.  My client was being charged a fee from them for a service that they were buying outside of being awarded a franchise.  The client didn’t feel comfortable with the amount of the fees and spent some time negotiating those which held the deal up for 2 additional weeks.  Once they had settled on a fee, the paperwork was sent and we scheduled a meeting to sign.

We scheduled another meeting to collect the check and sign the paperwork.  I also had the client sign an acknowledgment for my insurance and records indicating that they made their franchise decision on their own and did their due diligence to arrive at the decision to purchase a franchise.  Since the Franchisor would be doing a mail-away signature, the client signed the paperwork and we over-nighted it with the check.  The franchise was awarded and all parties gained from the transaction.  We created a win-win-win-win situation.  The next step for my client was arranging training which had already been penciled into the Franchisor’s calendar.  We called the Franchisor to tell him about the mailed package and to inform him of the confirmation of training.

My client was one step closer to opening his own STOP business!

Learn more about using a Franchise Broker here.

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