The Franchise Handbook

by Murphy, Kevin B.

• ISBN13: 9780910627542
• ISBN10: 0910627541
• Format: Paperback
• Copyright: 2006-08-15
• Publisher: Atlantic Pub Co

Summary

This book is a great resource for both prospective franchisees and franchisers as it explains in detail what the franchise system entails and the precise benefits it offers to both parties. You will learn franchising advantages and disadvantages, how to develop or purchase a winning concept, how to choose a business franchise that fits your personal style and financial goals, how to develop forecasts and budgets, and how to estimate start-up costs. The book also covers managing daily operations, attracting and keeping customers, hiring employees and training staff, securing financing, legal agreements, offerings, markets, real estate, cost control, marketing, international franchising, as well as federal and state franchise regulations.

Table of Contents

CHAPTER 1 CHOOSING THE RIGHT FRANCHISE	17	(14)
Franchises Are Not Independent Businesses	17	(2)
Becoming a Franchisee	19	(7)
Buying an Existing Franchise	26	(1)
Starting New	27	(4)
CHAPTER 2 DOING YOUR RESEARCH	31	(6)
Internet Research	31	(1)
Separate the Good, the Bad, and the Ugly	32	(2)
Starting Points	34	(1)
Staying Organized	34	(3)
CHAPTER 3 SIGNING ON THE DOTTED LINE: LEGAL ISSUES	37	(20)
Understanding the UFOC	38	(8)
Hiring a Franchise Lawyer	46	(1)
Hiring a Financial and Business Advisor	47	(1)
What Is the Best Way to Own and Operate My Particular Business?	47	(1)
Partnerships: The Pros and Cons	48	(6)
Forming a Business Entity	54	(3)
CHAPTER 4 ESTIMATING START-UP COSTS	57	(22)
Start-Up Costs	59	(3)
Raising the Money to Start	62	(2)
Business Plans	64	(1)
Major Elements of a Business Plan	65	(4)
A Business Plan Template	69	(9)
Business Plan Resources	78	(1)
CHAPTER 5 GETTING FINANCING	79	(10)
Steps to Take Before Applying for a Loan	80	(2)
Start-Up Costs	82	(1)
Operating Costs	83	(1)
Personal Living Costs	83	(1)
Applying for That Loan	84	(1)
Federal Government	85	(1)
State Government	86	(1)
Local Government	86	(1)
Commercial and Private Sector Sources	87	(1)
Friends and Relatives	87	(1)
Equity Investors	88	(1)
CHAPTER 6 CONDUCTING A MARKET ANALYSIS	89	(10)
Market Research	90	(3)
Conducting an Industry Analysis	93	(3)
Conducting a Market Analysis	96	(3)
CHAPTER 7 CREATING FINANCIAL STATEMENTS	99	(16)
Projected Income Statements	99	(3)
Estimating Income and Cash Flow	102	(1)
Sales Forecasts	103	(1)
Starting the Investigation	104	(1)
Quizzing the Current Franchises	105	(1)
Calculating Potential Sales, Cash Flow, and Profit	105	(3)
Calculating Average Gross Sales	108	(2)
Projecting Cash Flow	110	(2)
Profit and Loss Statement	112	(1)
Final Words	113	(2)
CHAPTER 8 LOCATING YOUR FRANCHISE	115	(8)
Finding the Best Location For Your Franchise	115	(1)
How to Evaluate Your Location	116	(1)
Financial Considerations	117	(1)
Constructing a Location	118	(1)
Negotiating a Lease	119	(1)
Things to Consider When Leasing Within a Shopping Center	120	(1)
Things to Consider When Subletting From Your Franchiser	121	(2)
CHAPTER 9 MARKETING YOUR FRANCHISE	123	(6)
Finding Your Customers	124	(2)
Effective Advertising	126	(1)
Some Notes on Customer Service	127	(2)
CHAPTER 10 MANAGING EMPLOYEES	129	(10)
Where to Find New Hires	130	(1)
What to Look For	131	(2)
Interviewing and Hiring	133	(3)
Being a Good Boss	136	(3)
CHAPTER 11 BUYING AND MANAGING SUPPLIES	139	(8)
Group Purchasing	140	(1)
Locating Your Own Suppliers	141	(1)
Managing Your Supplies	142	(2)
Organizing Your Stockroom	144	(3)
CHAPTER 12 MANAGING SUPPLIER AND FRANCHISER RELATIONSHIPS	147	(14)
Communication	147	(3)
Making Your Contribution to the Success of the Franchise	150	(3)
Improving Efficiency	153	(1)
Vendor and Consultant Relationships	154	(2)
Outside Resources	156	(1)
Employee Relations	157	(1)
Handling Stress and Making Complaints	158	(3)
CHAPTER 13 COST CONTROL	161	(2)
CHAPTER 14 TERRITORIAL STRATEGIES	163	(6)
Multi-Unit Franchising	163	(3)
Territory Divisions	166	(1)
Right to Expand	167	(2)
CHAPTER 15 EXPANDING YOUR OPERATIONS	169	(16)
Checking Your Franchise Agreement: Can You Buy Another Franchise?	169	(1)
Understanding Your Purchase Options	170	(3)
Retro-Franchising	173	(1)
Converting a Competitor's Location	174	(1)
Starting From Scratch	175	(1)
Buying Multiple Units	176	(2)
Reviewing Your Personal and Business Resources	178	(3)
The Pros and Cons of Multiple Ownership	181	(4)
CHAPTER 16 ADVANTAGES AND DISADVANTAGES OF THE FRANCHISE MODEL	185	(10)
Advantages	186	(3)
Disadvantages	189	(6)
CHAPTER 17 FRANCHISING YOUR BUSINESS	195	(26)
Leap of Faith, From Small Business to Franchiser: Ready, Set, Go!	195	(4)
My Fee Structure Can Make or Break Me	199	(1)
Who Is My Ideal Franchisee?	200	(1)
What a Franchisee Really Wants	201	(2)
How Do I Narrow the Field?	203	(1)
I Have Some New Franchisees...Now What?	204	(2)
Going To Market: Smart Expansion	206	(1)
Wave of the Future: Tactical Execution	207	(1)
Corporate Culture: The Ties That Bind	208	(1)
Knowledge Is Power	208	(1)
Like It or Not, You Need an Attorney	209	(1)
Self-Service Not Recommended	209	(1)
Beware the "Franchise Packagers"	210	(1)
Look Out World, Here I Come: Global Expansion	211	(6)
Importing a Foreign Franchise to U.S. Soil	217	(4)
CHAPTER 18 FRANCHISING AND THE LAW	221	(8)
Federal Law	221	(2)
State Law	223	(1)
Registration States	224	(1)
Relationship States	225	(2)
Franchiser Certification	227	(2)
CHAPTER 19 FRANCHISING RESOURCES	229	(44)
Companies Offering Franchising	229	(37)
Franchise Attorneys and Service Providers	266	(7)
GLOSSARY	273	(14)
INDEX	287