What Is A FRANCHISE?

A basic answer is this: a franchise is a LICENSE to use the branding, trademarks, and business format of a specific company.

Each franchise provides a Franchise Disclosure Document or FDD to any prospective buyer. The FDD contains highly valuable information on what the franchise is about including costs, fees, and other relevant information.

There is a one-time payment for the license called the FRANCHISE FEE.

When a franchise is awarded by the franchisor, a geographic area or TERRITORY is typically included.

Franchises also provide initial TRAINING about their business. In addition, they give ONGOING SUPPORT to their franchisees the entire time.

What’s unique about franchises compared to other types of businesses is the financial relationship between the franchisor and the franchisee. The payment from franchisee to franchisor is called the ROYALTY.

Today’s takeaway: franchises are different than other businesses.

Trash and Junk Removal Franchises

The fancy way of saying “trash removal” is “waste management.”

In the US, we have a lot of waste and junk that needs to be removed on a daily basis. Let me tell you, it is a lucrative and highly-competitive sector.

Did you know that

• The waste industry in the US is valued at $75 B a year.

1. Junk removal alone is a $10B per year business.

To learn about green-friendly franchises that remove, recycle, reduce or reuse trash/junk, connect with me on LinkedIn and message me!

Steady Eddie Franchises

This term is for the consistent, unflashy, unsexy businesses that keep chugging along no matter what is happening in the economy, politics, global affairs, or technology.

Many people are in a quandary: they want to become a business owners to have control over their time, their money, and frankly, their futures. Yet, they are also concerned about where the economy is going.

Solution: explore “Steady Eddie” franchises. These are the kinds of businesses you see each and every day as you drive down the road. There are logoed trucks and vans for plumbing, carpet cleaners, quick sign, painting, and so on.

Don’t know anything about home improvements or sign production? So what?

EXPERIENCE IS NOT REQUIRED.

What is required are SKILLS?

• Do you have business acumen?

• Do you know how to manage people?

• Can you execute a business plan?

Those TRANSFERABLE SKILLS are what franchisors want - not the people who swing the hammers or run the presses. Those important people become part of your team as a business owner.

To learn more about how your transferable skills relate to a franchise, connect with me on LinkedIn and send me a message.

Surprising Facts About Cleaning Franchises

There probably isn’t a more boring business for me to recommend to someone than a cleaning franchise - UNTIL - the would-be business owner understands these three things:

The ROLE OF THE OWNER is to grow and manage the business, NOT CLEAN.

There are REPEAT, LOYAL CUSTOMERS who require regular cleans of

• Cars

• Carpets

• Swimming pools

• Dogs

• Clothes

• Houses

• Offices

• Exteriors of buildings

• Parking lots

• Barbeque grills - yes, there really is a franchise for just about everything

• Restaurant hoods

• HVAC systems

• Windows

• AND SO ON……

CUSTOMERS PAY in cash or with credit cards IMMEDIATELY.

To learn more about the potential to produce wealth and a handsome income from amazing cleaning franchises, tune into tomorrow’s LinkedIn event called the Franchise Minute. Register for it here.

Innovative Vending Makes A GREAT Business

“Innovative Vending Makes A GREAT Business” Vending is not just about snacks and drinks! Get ready for some fun facts about exciting vending concepts!

1. Over 100 billion items are vended annually worldwide

2. Expect quirky and unexpected options like live crabs to high-tech vending machines for luxury cars

3. Vending machines are not limited to food and beverages; you can find them dispensing anything from electronics and cosmetics to even live plants!

4. In Japan, vending machines are so prevalent that there is one machine for every 23 people. They sell EVERYTHING from hot meals and fresh eggs to neckties and even underwear!

If you are interested in what franchises offer vending, connect with me on LinkedIn and send me a direct message!

This Week’s Franchise Theme - Real Estate

Real estate investors are having a challenge with finding houses to buy for either rental income or to flip.  We all know the supply of available properties is quite low. In addition, the rising interest rates make real estate investment less attractive.

With many investors not keen on the stock market now, there is even more investment money than usual looking to purchase a good piece of real estate. This too is driving the acquisition costs up which lowers the potential return on investment (ROI). 

In franchising, there are still very good real estate options with open territory.  This includes co-working spaces, daycare centers, modular homes, senior living communities, and preschools. To learn more about real estate franchises , connect with me on LinkedIn and send a message with how to contact you..  

Select Franchises’ blogs, e-newsletter, and live Franchise Minute event focused on real estate franchises this week. Register for next Wednesday’s Franchise Minute on vending using the link in the first comment below.

Register For THE FRANCHISE MINUTE

Each Wednesday at 11:30 a.m. Eastern is a live LinkedIn Event called the Franchise Minute.  

It’s exciting!  It’s fun! It’s “What’s Hot In Franchising!”

Be on time because it begins with a 60-second video on the sizzling topic of the day. 

• Ask your burning questions 

• Get insider information

• Live your dreams

• Be Your Own Boss!

Register for tomorrow’s event HERE!

TOPIC: Health and Wellness Franchises

What Was Your First Job?

Many people have their first employment at a fast food restaurant. I love how these businesses provide opportunities for teenagers to learn about the responsibilities and duties of a “real” job.

Fast food restaurants are the “Poster Child” of franchising.  They account for only 26% of all franchises. This is a surprising fact for many people to realize. Yet they provide a high employment rate among all franchises as the chart below illustrates.

My first “real” job was in college 🏢 as a Resident Assistant which paid for my room and board. What about you? Put in the comments section where you had your first “real” job.

Friday Fun Facts

The number of open franchised businesses continues to grow.  As the statistics below show, the growth naturally follows where the customers are.  On the resource, there is a map that shows Population shifts⚙️ to the Southeast show higher levels of growth and output over other regions of the country. 

This map is from the annual Economic Forecast on Franchising. The report is an excellent resource on the franchise industry.

Factors making the great state of Texas the darling of franchise growth among all 50 states this year is:

• Residents with disposable income

• Low tax rates

• Manufacturing investments

• Service industries investments

Children Services Franchises

These can be great franchise investments for people who want to make a difference in the lives of children and their families.

One thing is for sure: people will spend money on their children, and this is true regardless of what’s happening in the economy.  If a child needs extra help with school, parents will pay for tutoring services. 

When it comes to a child’s birthday, parents want to create lasting memories. Now, more than ever, parents are focusing on their kids getting proper exercise. Sports franchises are plentiful! 

Working parents always need child care so, they pay for daycare, babysitting, and nanny services.

There are a lot of fun franchises from haircuts and 3D photography to mobile party vans to camps to wonderful pre-schools.

To learn more about children-related franchises, connect with me on LinkedIn. 

Revving With This Economy- Automotive Businesses!

People are worried about the economy so I’m focusing on franchises I call “steady eddies”. That is,” dull, normal” businesses that do well regardless of what’s happening in the economy.

Let’s look at the average age of a vehicle in the US. It is 12.2 years old!!

For automotive businesses, that means MONEY IN THE BANK!
For decades, I’ve used;

• Quick oil change shops

• Auto repair garages

• Car detailing services   

• Auto parts stores 

• Gas stations

• Tire places

• Car washes

• Rental cars

And so have you and millions of others!! Remember as the owner of the business, your role is not to work on the vehicles. You hire the technicians who provide the automotive expertise. You grow and manage the business.

When you are ready to explore owning your own business, contact me to discover which franchise is right for you.

Riches Are In The Niches

Some people assume that a fitness concept really means “trendy”. Trends come and go - that kind of business is to be avoided.  

Health and fitness clubs are a $30B+/year industry. Boutique fitness is “niche” fitness.  

Remember - RICHES ARE IN THE NICHES! Why is this?

Boutique fitness studios excel in specific types of exercise. They also provide a community experience that can’t be recreated at home. They are the Go To places for desired fitness programs, classes, and events in their specialties. 

Examples of boutique fitness franchises:

• Yoga

• Pilates

• Ballet

• Running

• Rowing

• Stretching

• Boxing

• Dance

• Indoor cycling/spinning

• Personal training

A big takeaway from COVID is that people really want to go to the gym!  The clientele of boutique studios is repeated customers who have health and fitness as a lifestyle.

Many people are worried about the economy now with higher interest rates and the possibility of a recession.  The good news for fitness franchises is that the first discretionary expenses to leave a personal or family budget are travel and eating out.  

Small personal services expenses like gym memberships, haircuts, manicures, and massages stay within the budget when the belt is tightened. 

Fitness is a year-round business. At this time it gets an extra big surge every year. To learn more about riches in fitness niches, send me a message on LinkedIn.