Chewing over ideas for a franchise
Chewing over ideas for a franchise
Such information can be purchased from a company like Frandata, says Rowe. And a company's financial performance is generally outlined in a Uniform Franchise Offering Circular.
It provides information like past litigation, whether it offers territory protection and names of existing franchisees, even those that have failed, says Harold Kestenbaum, who is counsel to Farrell Fritz in Uniondale. He says it's important to contact some of these franchisees and ask questions like, "If you had to buy it all over again would you?"
That's exactly what Laura and Walter Jankowski of Bayport did before they became the Suffolk County franchise developers for the Tropical Smoothie Café, which opened in June in East Northport. Laura called about 50 franchisees before settling on the brand.
Like many franchisees, the Jankowskis financed the costs - $300,000 - with a second mortgage on one of their homes and a home-equity line on another home.
Another traditional funding source is the Small Business Administration, says Roslyn Goldmacher, president of the Bethpage-based Long Island Development Corp., which lends money under the SBA 504 program for building purchases.
That's how Mulki Aman, owner of the Subway in Bay Shore, and Neil Singh, area developer for the Subway franchise in Nassau County, financed their facilities.
Singh, who owns a Subway in Westbury and worked with the LIDC, says it can cost up to $200,000 to open a store on Long Island, but he thinks the investment is worth it.
"The brand is a No. 1 brand in the sandwich category," Singh says. "If you're going to invest in a franchise, you certainly want to invest in a No. 1 brand."
So, the next time you're buying a sandwich or a taco, think about how your lunch can become your next meal ticket.
Ten fastest-growing franchise systems
Covering franchise operations in business at least four years
Rank and brand Franchisers Number of franchises, '04
1. Child I.D. Program of America Bakerman Digital, Inc. 115
2. One Hour Air Conditioning & Heating One Hour Air Conditioning Franchising Llc 111
3. Cloud 9 Shuttle Cloud 9 Shuttle Inc. 83
4. Border Magic Border Magic Llc 75
5. Slim and Tone 30 Minute Workout Slim and Tone Llc 115
6. Certified Restoration DryCleaning Certified Restoration DryCleaning Network Llc 101
7. Paul Mitchell Partner School Paul Mitchell Advanced Education Llc 31
8. QuikDrop QuikDrop International 58
9. Positive Changes Hypnosis Lifestyle Improvement Centers Llc 38
10. Zerorez Zerorez Franchising Systems Inc. 23
SOURCE: Frandata
Chewing over ideas for a franchise - To learn more about this author, visit Katie Magers's Website.
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You generally want to see a sales-to-investment ratio of at least 2 to 1 and optimally 3 to 1, says Rowe. So if you invest $200,000 you should realize at least $400,000 in annual sales by the end of your first year. You also want a net income or pretax net profit of at least 15 to 20 percent, he adds.
Such information can be purchased from a company like Frandata, says Rowe. And a company's financial performance is generally outlined in a Uniform Franchise Offering Circular.
It provides information like past litigation, whether it offers territory protection and names of existing franchisees, even those that have failed, says Harold Kestenbaum, who is counsel to Farrell Fritz in Uniondale. He says it's important to contact some of these franchisees and ask questions like, "If you had to buy it all over again would you?"
That's exactly what Laura and Walter Jankowski of Bayport did before they became the Suffolk County franchise developers for the Tropical Smoothie Café, which opened in June in East Northport. Laura called about 50 franchisees before settling on the brand.
Like many franchisees, the Jankowskis financed the costs - $300,000 - with a second mortgage on one of their homes and a home-equity line on another home.
Another traditional funding source is the Small Business Administration, says Roslyn Goldmacher, president of the Bethpage-based Long Island Development Corp., which lends money under the SBA 504 program for building purchases.
That's how Mulki Aman, owner of the Subway in Bay Shore, and Neil Singh, area developer for the Subway franchise in Nassau County, financed their facilities.
Singh, who owns a Subway in Westbury and worked with the LIDC, says it can cost up to $200,000 to open a store on Long Island, but he thinks the investment is worth it.
"The brand is a No. 1 brand in the sandwich category," Singh says. "If you're going to invest in a franchise, you certainly want to invest in a No. 1 brand."
So, the next time you're buying a sandwich or a taco, think about how your lunch can become your next meal ticket.
Ten fastest-growing franchise systems
Covering franchise operations in business at least four years
Rank and brand Franchisers Number of franchises, '04
1. Child I.D. Program of America Bakerman Digital, Inc. 115
2. One Hour Air Conditioning & Heating One Hour Air Conditioning Franchising Llc 111
3. Cloud 9 Shuttle Cloud 9 Shuttle Inc. 83
4. Border Magic Border Magic Llc 75
5. Slim and Tone 30 Minute Workout Slim and Tone Llc 115
6. Certified Restoration DryCleaning Certified Restoration DryCleaning Network Llc 101
7. Paul Mitchell Partner School Paul Mitchell Advanced Education Llc 31
8. QuikDrop QuikDrop International 58
9. Positive Changes Hypnosis Lifestyle Improvement Centers Llc 38
10. Zerorez Zerorez Franchising Systems Inc. 23
SOURCE: Frandata
Chewing over ideas for a franchise - To learn more about this author, visit Katie Magers's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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