The Educated Franchisee: The How-to Book for Choosing a Winning Franchise

by Bisio, Rick; Kohler, Mike

• ISBN13: 9781935098539
• ISBN10: 1935098535
• Edition: 2nd
• Format: Paperback
• Copyright: 2011-02-01
• Publisher: Itasca Books

Summary

The Educated Franchisee will Show you:

Author Biography

As one of the most respected franchise consultants in the United States, Rick Bisio has guided thousands of people to great decisions regarding business ownership and franchising. Rick has owned both franchised and non-franchised businesses. He has bought, sold and invested in businesses and worked as an advisor to others seeking the same. In this book Rick shares his secrets for success. Rick is a regular speaker on the topics of business ownership and franchising and currently Lives on a small resort island in Florida with his family.

Table of Contents

Preparing Yourself for Business Ownership
Introduction
My background	p. 4
The book	p. 5
Leveraging Your Natural Fear	p. 7
Understanding fear	p. 8
Diving head first into fear	p. 9
What happens if	p. 9
Is risk the same for everyone?	p. 10
Mixing fear and the human psyche	p. 12
Fear and Success	p. 13
Your Vision	p. 15
It's your vision; take control of it!	p. 17
Vision is about what you want the future to look like	p. 17
Decide where you really want to go	p. 18
Determine how to get there	p. 19
Traditional employment	p. 20
Self-employment	p. 21
Business ownership	p. 22
Investments	p. 22
Combination	p. 23
Believe in your vision	p. 23
Essential Traits of an Entrepreneur	p. 27
Having a clear vision-for yourself and your business	p. 29
Communicating the vision and motivating others to action	p. 30
Setting a timetable for achievement	p. 30
Viewing setbacks as learning opportunities	p. 31
Standing apart from the crowd	p. 32
Focusing on continual learning	p. 33
The Perfect Franchise-Where Do I Start?	p. 37
Alternative One-The Passion Approach	p. 38
Alternative Two-The Scarcity Approach	p. 41
Alternative Three-The Security Approach	p. 42
Alternative Four-The Track Record Approach	p. 43
Alternative Five-The Lemming Approach	p. 44
Alternative Six-The Educated Franchisee Approach	p. 45
Cataloging Your Skills	p. 46
Matching Skills and Achieving Success	p. 47
Building Your Own Box	p. 47
Why Own a Business When I Can Get a Job?	p. 51
Owner vs. employee mentality	p. 52
The case for ownership: Who really makes more money?	p. 53
Year l	p. 54
Year 2	p. 56
Year 3	p. 57
Creation of an asset	p. 58
Wealth Creation	p. 59
Getting it Right the First Time: How to Examine a Franchise
Foundational Knowledge - What is Franchising And Where Did it Come From?	p. 65
Is franchising an industry?	p. 65
So what does the franchisee purchase?	p. 66
The roots of franchising	p. 67
Growth of franchising	p. 68
Strengths of franchising	p. 69
Proven systems	p. 69
Expert advise and support	p. 69
Marketing and purchasing power	p. 70
Challenges to franchising	p. 71
Failure to follow the system	p. 71
Fees	p. 71
False expectations	p. 72
Foundational Knowledge - The Franchise Disclosure Document	p. 75
Delivery and acceptance of the Franchise Disclosure Document	p. 76
Looking for ôred flagsö	p. 77
The Franchise Disclosure Document checklist - Items 1-23	p. 77
Exhibits	p. 90
Foundational Knowledge - Alternatives in Franchising	p. 93
Types of franchise relationships	p. 94
Direct franchise	p. 94
Area developer	p. 95
Master franchisor	p. 96
Sub-franchisee	p. 97
Types of territorial protection	p. 97
Fees	p. 99
Franchise fees	p. 99
Royalties	p. 100
An observation about royalty levels	p. 101
Advertising contribution/commitment	p. 102
Comparing franchisors	p. 102
Comparing industries	p. 103
Targeting Franchisors to Investigate	p. 105
Exploring independently	p. 105
Websites	p. 106
Trade shows	p. 107
What's going on in your neighborhood?	p. 107
Magazines and other media reports	p. 108
Working with a franchise consultant	p. 108
How franchise consulting began and how it works	p. 108
Pros and cons of using a franchise consultant	p. 110
Speaking With Franchisors - As You Study Them, They Study You	p. 113
What is a franchisor really looking for?	p. 114
Surprise! This is what the franchisor is NOT looking for!	p. 116
Understanding ôscreensö	p. 116
Learning about the opportunity	p. 117
What is the Franchise Disclosure Document receipt?	p. 120
Staying organized	p. 120
Validating With Franchisees	p. 123
Speaking with franchisees	p. 123
Securing permission to call franchisees	p. 124
Which franchisees should I call?	p. 125
The best in the system	p. 125
Old vs. new	p. 125
Franchisees who are selling or closing	p. 126
Franchisees who are similar to you	p. 127
Random calls	p. 128
The closest franchisee	p. 128
The exceptions	p. 129
Emailing questions	p. 130
Organizing your questions	p. 130
Key point	p. 131
Building Your Financial Model - Asking the Right Questions!	p. 133
How Owners Make Money	p. 134
Understanding the Numbers	p. 136
A P&L Case Study	p. 137
Other Advantages to a Top Down Approach	p. 142
For The Seasoned Accounting Professional	p. 143
Financing Your Business	p. 145
Two kinds of money: Debt and Equity	p. 146
Debt financing options	p. 148
SBA loans	p. 148
HELOC	p. 149
F&F financing	p. 149
Equipment loan	p. 150
Signature loans	p. 151
Business loan	p. 151
Equity financing options	p. 151
Cash	p. 151
Rollover for Business Startup (ROBS)	p. 152
Private equity investment	p. 153
Grants	p. 154
The Use of Outside Experts	p. 155
Types of consultants/advisors	p. 157
Franchise consultant	p. 157
Accountant to review P&L	p. 159
Tax accounting	p. 159
Franchise lawyer	p. 160
Business lawyer	p. 161
Professional Employer Organization (PEO)	p. 161
Retirement plan administrators	p. 162
Local real estate agents - after becoming a franchisee	p. 162
The Art of Decision Making	p. 165
The logical approach	p. 166
Ranking Methodology	p. 167
Ranking and weighing approach	p. 168
The intuitive approach	p. 171
Bringing the approaches together	p. 172
Fear in decision making	p. 173
You've Found the Right Business: Now the Journey Begins
The Steps of Franchise Development	p. 179
The stages of franchisee maturity	p. 180
Infancy	p. 180
Childhood	p. 181
Adolescence	p. 182
Adulthood and Parenthood	p. 182
Elder Statesman	p. 183
Why do we through these stage?	p. 180
Key Items For Success in a Franchise System	p. 187
Leverage positive thinking	p. 188
Visioning	p. 189
Solve negatives quickly	p. 189
Watch the company you keep	p. 190
Eliminate entitlement thinking	p. 191
Make a two-year commitment	p. 192
Set your top three productivity measures	p. 193
Conclusion	p. 197
Biographies
Rick Bisio	p. 199
Mike Kohler	p. 200
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