Franvesting

On today's Franvesting podcast, David Stein interviews Mike Pollack, a Franchise Insider with extensive background as both a franchisee and as growth director for a national Franchisor. Mike shares insider knowledge of what is involved in the path from initial franchise inquiry to becoming a signed franchise, including general timelines, and most importantly, what makes a good franchisee. Mike explores the due dilligance that the prospect can be doing during this time. Mike spends some time explaining the traps of turning a passion or hobby into a vocation, and to get very real with yourself on why you are starting a business. This introspection will help your success, and the success of the franchisor as well. HELPFUL RESOURCES For more information, and more bonus material, visit us on: www.franvesting.com Send your questions for the FranBox Mailbox: http://franvesting.com/contact/ David Stein - Franchise Investing Insider Laurean Callander - FranVesting Producer

Today, David Stein is going to explore the question everybody wants to know..... Can I build wealth owning a franchise? The Answer: Maybe. It's tricky. Is it possible? Absolutely! Are there franchisees who build wealth owning a franchise? Absolutely! How to do this... first... pick a winner. Pick an industry that is growing, and there are plenty of verticals to choose from. But most importantly, pick a franchisor who has differentiated themselves in their vertical. For exammple, if you pick the healthcare market, we know that the population is growing and getting older. Picking a franchise in the home health market, it's a growing vertical. But there are 60 franchisors in the vertical, it's highly competitive. Study up and find out how they differenticate themselves. You are basically combining two things 1) Is there a growth opportunity and 2) How do they differentiate themselves. Next, make sure you study that FDD (Franchise Disclosure Document). All franchisors are regulated by the FTC (Federal Trade Commission) and are required to disclose certain items in the FDD. You'll want to specifically pay attention to Item 19 which outlines the return on investment and your unit economics. Research the franchisor's branding. This translates to their image and the "promise" they make to the customer. How is the brand delivering on this over time, and over units. You'll find out more about the consistency of the system as you interview their francisees. As a franchise, you'll get the rights to use the trademark. Make sure the trademark means something. Explore what the downsides are to investing in a franchise, especially the risks. There's risk in starting any business, however starting a franchise, there are some risks involved. For example, the franchisor may not be operating well. That's why you need to study the franchise itself. Is the franchise growing too fast? Have they filed for bankruptcy? Have franchisees filed for bankruptcy? Good news.... all that is in the FDD. In addition to risks, I cannot stress enough the importance of interviewing the franchisees in a system. They will know the inside dirt and will be the best at discussing how the franchise works, and if there's really an opportunity to build equity and build wealth in a franchise. BONUS - FRANBOX MAILBOX Question: Are there any franchise businesses recession proof? We've already touched on the senior home care market... the data already shows that a very strong, growing market - especially with the sandwich generation getting even more stretched on time. Home services are another great opportunity. Regardless of the economy, there is always home upkeep that needs to happen. Probably not for rennovations, but if there is a plumbing issue, that has to get taken care of regardless of the economic situation. So, certain home services tend to do well in all economic situations. HELPFUL RESOURCES For more information, and more bonus material, visit us on: http://franvesting.com Send your questions for the FranBox Mailbox: http://franvesting.com/contact/ David Stein - Franchise Investing Insider Laurean Callander - FranVesting Producer

On today's Franvesting podcast, David Stein discuss how to determine which franchise would be right for you. This is an introspective process 1) What do you want out of the business? 2) Owning a business is not a hobby. 3) How much do I have to invest, really? 4) What's my exit strategy? 5) How much risk can I take on? 6) How involved do you want to be? 7) How much do you like to work? 8) What are you good at? BONUS Question from the FranBox Mailbox Other than financials, what else should I be focusing on? HELPFUL RESOURCES For more information, and more bonus material, visit us on: www.franvesting.com Send your questions for the FranBox Mailbox: http://franvesting.com/contact/ David Stein - Franchise Investing Insider Laurean Callander - FranVesting Producer

On today's Franvesting podcast, David Stein interviews Ardag Tachian - Franchising Insider. Our goal at Franvesting is to help you gather the right information to make the best decision for your business investment. What qualities and traits are important for a potential franchisee? Certainly, a person's ability to follow a system are extremely important to becoming a good franchisee. You are paying into a system, so make sure you want to take advantage of that. A good franchisee has a great knack for delegating, especially if you want to grow. Certain personality features make for great franchisees. For example, positivity and resilancy, as evidenced by the times we are in. Having thick skin is also key. Most importantly is being a people person, somebody who can build relationships is extremely critical from a marketing standpoint. From a franchisor perspective, what kind of questions would you like to ask a potential franchisee to see how they line up with a particular system? The relationship is likened to a marriage, as you will be signing a 10-20 year contract. You will definately get to know each other. I always like to know how people found our franchise. Certainly need to know about the financial background, education background and see if they are a good fit for the franchise. Exploring a prospects expectations of what they expect out of the franchisor can reveal how the partnership may grow or not be a fit. Ardag then goes into a deep dive into the courtship process with the potential franchisee.... from initial inquiry to closing the deal to building the new franchise. Each step is designed to evaluate fit and appropriateness and to establish the foundation for a great franchise relationship. As a franchise prospect, what kind of questions should I be asking? 1) Find out about all the fees - one time and ongoing. You want a good understanding of the fees. 2) Does this franchise require a brick and mortar location, and if so, do they assist the franchise in the site selection and construction. 3) Find out about their support and training program for both you and your staff. You are paying into a system... make sure the system helps with the education. 4) How are products procurred? 5) Find out about ongoing marketing support and related fees. Find out about how the franchise will support your particular franchise with marketing. 6) Legal issues are very important to inquire about. They are typically found in Item 3 of the FDD. There may be outstanding legal issues you need to know about. 7) Find out about territorial rights.... especially if you plan to expand. Listen on to find out what the #1 thing is to determine whether or not you would make for a good franchisee. The answer will certainly surprise you! HELPFUL RESOURCES For more information, and more bonus material, visit us on: http://franvesting.com Send your questions for the FranBox Mailbox: http://franvesting.com/contact/ David Stein - Franchise Investing Insider Laurean Callander - FranVesting Producer

On today's Franvesting podcast, David Stein will debunk some of the common myths about buying into a franchise. 1) Franchising is just too expensive. The barrier to entry will vary based on the type of franchise you get into. There are thousands of different franchises that you can invest in, in multiple different categories. You need to explore them for your particular investment level and passion for work. The beauty of a franchise system is the access to a variety of support, that you would normally need to supplement with high salaried employees if you started a business from scratch. 2) The corporate franchisor is going to control my franchise. There will be some corporate control, but the day-to-day control at the local level is your business, and it's up to you to align your goals with theirs. It's a true partnership. 3) Owning a franchise me ans no creativity. There is alot of room for creativity within the structure of the franchise. This type of creativity is critical to the level of your success. Furthermore, the franchisor will expect you to be creative with the management of your business and local marketing. 4) I'm absolutely going to succeed. Common sense will tell you small businesses do fail, and there is no guarantee of success. Data shows that franchisees have a higher level of success then starting a business from scratch. If you follow a franchise system, you will have a better chance of success. 5) You need to be an expert in the field. Absolutely not! Some franchisors do require some type of background and skills. Most franchisors, when looking for the right franchisees, are looking for soft skills - management styles, problem solving and passionate about working hard. Essentially, an alignment of your values with theirs. BONUS Question from the FranBox Mailbox What is Item 19 in the Franchise Disclosure Document (FDD)? Why is this important? HELPFUL RESOURCES For more information, and more bonus material, visit us on: www.franvesting.com Send your questions for the FranBox Mailbox: http://franvesting.com/contact/ David Stein - Franchise Investing Insider Laurean Callander - FranVesting Producer

David covers the basics of what is involved in buying a franchise. David explains the difference between starting a business and buying a franchise. The advantages of both, and which would work for you depends on a variety of factors as you weigh the two options. The Franchisor's role in this process is key to your success and helps you avoid alot of mistakes by having already perfected alot of the systems a business needs to succeed. The #1 benefit is the reduction of your risk, and the Franchisor will share with you points of difference to reduce the overall risk. The key differentiator is buying into a systematic turnkey operation that the franchisor has already developed - which is a key to branding. Another advantage is the back office assistance. From back office software, training, marketing and collective buying power. One of the biggest advantages is collaboration with other franchisees. There are a few cons to buying a franchise, the biggest could be your personality style and entrepreneurial control needs. BONUS Question from the FranBox Mailbox What is the one thing you would recommend, above all, to do before investing in a franchise? HELPFUL RESOURCES For more information, and more bonus material, visit us on: www.franvesting.com Send your questions for the FranBox Mailbox: http://franvesting.com/contact/ David Stein - Franchise Investing Insider Laurean Callander - FranVesting Producer

Today, David Stein explores the internal questions a potential franchisee needs to walk through before choosing a specific franchise to invest into. Let's see what the inputs are to create your own initial self business plan. 1) How much money do I need to make on an annual basis? 2) What is your level of risk/reward? 3) How much wealth are you looking to acquire? 4) Does the company provide a suitable exit strategy, and does that exit strategy match up to your expectations? 5) How does the cash flow look over a 5 year financial proforma? Other considerations David will help you explore before you buy a franchise and go into business for yourself. 6) Do you personally have the management expertise to successfully run an enterprise? 7) Is there an opportunity to grow? 8) How will my being self employed affect my lifestyle expectations? BONUS Question from the FranBox Mailbox Is is it wise to be looking for a franchise investment during an economic downtime? HELPFUL RESOURCES For more information, and more bonus material, visit us on: www.franvesting.com Send your questions for the FranBox Mailbox: http://franvesting.com/contact/ David Stein - Franchise Investing Insider Laurean Callander - FranVesting Producer

Welcome to the Franvesting Podcast! Each week, David Stein will explore the complex world of franchising. Show guests include some of the world’s biggest brand franchisors, financing experts, franchisees and others who work day to day in the franchising world. This show is intended to help a potential franchisee figure out: 1) Is franchising for me or should I open my own small business? 2) What should I know before I choose a franchise? 3) Can I afford this and still build wealth? HELPFUL RESOURCES For more information, and more bonus material, visit us on: www.franvesting.com Send your questions for the FranBox Mailbox: http://franvesting.com/contact/ David Stein - Franchise Investing Insider Laurean Callander - FranVesting Producer