How to Franchise Your Business
How to Franchise Your Business
Starting a franchise takes a lot of work. If you turn to the Appendix to this paper and see the checklist of items to consider when starting a franchise, you'll see what we mean. However, properly done, a franchise system can be rewarding and efficient. Let's start our consideration of the franchising of your business by taking a brief look at what franchising is.
What is Franchising?
Franchising is typically defined as a system of doing business in which a franchisor gives a franchisee the right to carry on business in a specified manner under the franchisor's trademark within a defined geographical area. We usually associate a franchise with a particular product or service and connect it with a trademark that is well known in the marketplace. By purchasing a franchise, the franchisee obtains the right to use the successful formula of the franchisor. In order to maintain the success of its franchise system, the franchisor will require franchisees to strictly adhere to its system and standards of quality.
In effect, by creating a franchise, a franchisor has created a distinct product. The marketing, sale and support of its franchises becomes a business in and of itself.
You are likely most familiar with the type of franchising commonly referred to as "business format" franchising, in which the franchisor provides a complete business format under a common name. The more traditional form of franchising, which is considered to have started in about 1850 by the Singer Sewing Machine Company, and which gained real momentum in the 1920's with gasoline stations and automobile tires, is based on product distribution arrangements controlled by the franchisor through its patents and trademarks. In that system, the franchisee maintains its own independent identity and may in fact be involved in the distribution of more than one type of product.
The Popularity of Franchising
The enormous quantity of products and services making their way to market has brought with it the need for a rapid, cost-effective and successful means to obtain market penetration. Franchising has proven itself capable of meeting this need.
As well, there is an increasingly large pool of well-educated individuals with resources who can operate franchises as franchisees. Corporate downsizing in our current economy has forced many management-level individuals into the franchise market. Likewise, an increasingly large number of women are pursuing the option of owning their own franchise. Franchising is also popular because of the proven higher rate of success it enjoys compared to independent non-franchised businesses. This proven rate of success is largely due to the fact that the product or service has typically already proven successful, and to the assistance provided by the franchisor in training, marketing and operating a franchise.
A study conducted by the University of Toronto showed that franchised donut stores were on average 300% more profitable than independently-owned donut stores.
Various studies have shown a very high level of satisfaction among existing franchisees. This is notwithstanding some of the recent negative publicity concerning certain franchises.
Why Franchise Your Business?
This question presupposes that an individual considering franchising has already made the decision to expand their business. Generally speaking, there are four ways to expand a business. The first is to finance the growth internally through retained earnings generated from within the business itself. The second is for the business to borrow, on the strength of its current equity, to finance expansion. The third is to inject new equity into the business through the owner's other personal resources, or through the introduction of venture capital. The fourth is to utilize the capital of a collection of unrelated individuals through the sale of franchises to them; i.e., the right to operate a business substantially similar to your own.
One obvious advantage of utilizing the capital of franchisees is that it will allow much more rapid growth than expansion through retained earnings. The use of the owner's outside personal resources may increase the risk of expansion to an unacceptable level. The introduction of venture capital may destabilize the very business itself by diluting control of the business.
Another proven advantage of franchising is that it typically results in better performance than a similar operation managed by a corporate employee. Today, many large and successful franchises utilize franchising as a means to expand in smaller communities where the personality and involvement of the franchisee can make a significant difference.
Expansion through franchising permits a franchisor to run a very lean operation. Instead of the franchisor taking on an increasing number of employees, with all of the consequent management difficulties that it entails, individual franchisees assume the responsibility for managing their own staff, including the cost of compliance with applicable employment legislation.
We have already mentioned that franchising usually allows a more rapid expansion. In today's highly competitive environment, early market saturation often translates into an early competitive advantage and market dominance. Hence the rapid expansion possible through franchising may be indispensable. In the case of some successful, mature franchises, the final phase of franchising will involve the franchisor purchasing outlets that were initially franchised, thereby consolidating the growth into the franchisor.
Another aspect of franchising that contributes to its own rapid expansion is the economies of scale that result with each newly opened outlet. These economies tend to reduce the cost of doing business, permitting the franchise to compete more aggressively in the market and, hence, expand more rapidly.
Needless to say, the sale of a franchise will also generate cashflow to the franchisor. In some cases, this can be substantial with typical franchise fees running from $10,000 to $75,000. Many franchises will also charge a renewal fee each five to ten years equal to all or part of the initial franchise fee.
A variety of other risks, such as legal liability for personal injury that occurs on store premises, are also spread in a franchised business.
Are There Any Disadvantages to Franchising?
You bet. The greatest single skill required of a franchisor is his or her (or its, in the case of a larger franchise organization) ability to manage its franchisees.
The selection of high quality franchisees is a science in and of itself. It’s also a balancing act. On the one hand, the franchisor wants successful, independent-minded business people. On the other hand, the franchisor wants compliant individuals who will adhere to its system. This fundamental conflict will constantly test the franchisor's patience and management skills.
In a matter of time, most franchise systems will accumulate one or more "rogue" franchisees and one or more "complainer" franchisees.
The rogue franchisee is the successful franchisee who believes that the success of his or her outlet is based entirely on the skills and personality of the franchisee, and has nothing to do with the franchisor, their concept or their system. The complainer franchisee is typically an unsuccessful franchisee whose complaints require that a disproportionate amount of the franchisor's resources be spent on him or her, and who spreads discontent amongst other franchisees.
In most cases, an employer can terminate an employee, however, it involves some expense. In the franchise system, the franchisee has purchased a right to operate an outlet and, provided he continues to abide by the franchise agreement, cannot usually be terminated. This is especially the case since Courts tend to interpret one-sided franchise agreements against franchisors and to grant second chances to franchisees. In addition, decisions of American Courts and some American statutes now limit the ability of a franchisor to refuse to renew the term of a franchise agreement. This judicial and legislative protection will likely make its way into Canada.
Don't forget that, despite all of the lengthy wording to the contrary in your franchise agreement, you will be giving up a considerable amount of control over the operation of a franchised outlet. For instance, the law limits the ability of a franchisor to establish pricing, to compel participation in franchise-wide promotions or to compel participation in all aspects of centralized purchasing.
And don't forget that franchising will require you to split your profits with your franchisees. While you will receive a royalty fee, the franchisee must also be permitted to earn a salary and a return on investment. These amounts, or at least a part of them, would otherwise be available to a corporation directly owning each outlet.
Is My Business Franchisable?
We suspect this is the question you've been waiting for. Here is a checklist of items to consider in responding to that question.
How original is the business concept?
If you are heading into the burger market, you had better have something outstanding by way of product, service or otherwise in order to differentiate yourself from the competition. And remember, your good ideas will be copied in a flash.
Is the concept merely a trend, or is it something that will endure in the marketplace?
Is the success of the business based on elements that are easily duplicated?
This means that the success of the business should not require extensive education (as opposed to some training) of the franchisee, and it should not depend upon the unique personality of the franchisor.
How much would it cost to reproduce an outlet? Can a franchisee afford that amount?
Are there other locations available that would be suitable for this type of franchise?
Is the type of individual that you require as a franchisee readily available?
Do you have the necessary management skills to administer a franchise system?
As franchisor, you will be moving out from behind the counter and into an entirely new role. The success of the franchise will depend to a very large extent on whether you possess the necessary skills to administer the systems and manage the people.
Have you taken the necessary steps to protect your proprietary property including logos, designs, names, etc.?
The necessary trademarks, copyrights and patents should be pursued in order to reduce the risk of misappropriation by others, and to ensure the ability on your part to enforce compliance with your franchise standards.
Is the concept subject to a high degree of standardization?
This permits customers to enter any franchise location and recognize it as offering the same level of quality and uniformity that they have come to expect. It promotes the "name branding" that is so indispensable to a successful franchise.
Does each franchise unit have the ability to generate above-average profits?
Remember that each outlet must generate enough profit to allow the franchisee to pay royalties and still leave a reasonable profit to the franchisee.
When Do I Franchise?
This is the second most-asked question.
There is no simple answer to this question. Many pundits will suggest that a franchisor have several years of experience with the prototype operation before commencing the sale of franchises. One rule of thumb that we have seen offered is that the franchisor be in business no less than two years with two outlets run by managers.
In our fast-paced economy however, it is not always feasible to wait this long.
Frankly, we think the more important question to ask is whether you, as a potential franchisor, have done the necessary up-front preparation for a franchisee. Proper pre-franchise planning includes the following:
Do you have the $15,000 to $30,000 to cover the expenses of franchising your business in Canada, or the $30,000 to $75,000 for franchising in the U.S.?
Have you identified the attributes of your business that account for its success?
Have you secured an adequate supply of goods or services to support the franchise network?
Have you developed a operation and marketing manuals for use by your franchisees?
The difficult issues that must be addressed in developing a manual will assist in fashioning responses to hard questions before they arise in real life.
Do you have a well-developed system for training new franchisees, as well as an adequate location?
Have you developed a detailed understanding of the precise location requirements for franchised outlets? (This is a very important issue.)
Have you developed a detailed business plan, including the method in which you intend to expand (single-unit franchises, area franchises or master franchises)?
Have you developed a strategy for recruiting franchisees and head office staff?
Have you spent the time to develop a complete financial plan for your franchise, including potential problem areas?
Have you arranged the necessary financing?
Do you have a definite idea as to the type of individual you want as a franchisee? If you do not have the expertise to select such individuals, have you identified a competent recruiter/screener to perform that important function?
Do you have a thorough understanding of the business you are in? This involves having a clear understanding of your "concept", and taking all necessary steps to strengthen and protect it.
Miscellaneous Tips
Here is a potpourri of advice to consider when setting up your franchise system.
Selection of Franchisees Consider very carefully the type of person you want as a franchisee. Consider hiring a consultant to create a personality profile of serious applicants. It's much easier to keep poor candidates out of your franchise, than to get them out once they're in.
Location Consider very carefully the criteria for locating a franchised outlet. Consider hiring a market analyst to develop site selection criteria for you. In our experience, this is perhaps the greatest single requirement for success of a franchise. Do not select site B just because the rent is lower. It will be worth paying double the rent at site A if the sales are five times what site B will generate.
Lawyer Hire a good franchise lawyer. A lawyer with a lot of experience in franchising generally will not cost any more on an hourly basis than any other lawyer. However, his or her experience will mean that less time is required to perform your work, and the results should be markedly superior.
Expansion Don't go too far afield. You will be approached by people in Flin Flon and Albuquerque for the opportunity to purchase your franchise. Have a plan for the gradual expansion of your franchise and stick to it. Going too far too fast will strain your system and lead to complaints from franchisees that they get no head office support.
Stick to the Rules Charge a fee for late payment of royalties and ad fund contributions. Make a point of collecting those late payment charges. Establishing the rules and the requirement to stick to them early on will pay off in the long run.
Go Slow; Don't Rush Take your time, plan, and don't get rushed into anything by someone who "must" have one of your franchises before you're ready.
Research Research your proposed market thoroughly. Know your competitors inside and out.
Franchise Agreement Develop a fair franchise agreement and stick to it. The franchise agreement should provide a fair deal to your franchisees. It should also provide them fair protection, such as a reasonable amount of time to cure defaults that may arise from time to time. On the other hand, do not negotiate the terms of your franchise agreement with each prospective franchisee that comes along. This will cost you endless time, and leave you with so many deals and side-deals that you'll be totally confused.
Marketing Use a graphic artist, or better yet an ad firm, to develop your marketing material. You should look professional from the outset.
Territories Resist the temptation to grant large, exclusive territories to your initial franchisees. These territories will hinder future expansion and can be a disincentive to the franchisee to work hard and develop the full market potential of his or her territory.
Leases Lease all franchise locations yourself. Sublease the site to your franchisees. Control of the location is the ultimate in the control of your franchisee.
Capital Don't lend money to your franchisees. If your franchisee does not have sufficient capital or resources to pay its franchise fee and other start-up costs in full, then you don't want to deal with him or her.
Problem Solving Similarly, don't let a franchisee fall behind on royalties, lease payments or ad fund contributions. Sit down right away and determine what the problem is. Work hard with the franchisee to resolve those problems. If the problems cannot be resolved through no fault of the franchisee, work to minimize the impact on the franchisee or try and relocate the franchisee. If the fault lies with the franchisee, end the relationship.
Ad Contributions Make sure that ad contributions are kept in a separate interest-bearing trust account. Provide a quarterly statement of income and expenses on the ad fund to all of your franchisees.
Expenses of Franchising
Establishing a franchise properly can be an expensive undertaking. If it's done wrong, it could cost you everything you have, including the very business you were hoping to franchise.
Prior to considering franchising, your own business should be stable enough to permit the tremendous diversion of your time that establishing a franchise system will require. You should also have sufficient cashflow and/or retained earnings to properly fund the franchise venture from the outset. While it is possible to franchise on a shoestring and jerry-build a franchise system, the results from such ventures are typically much less than optimal, and often cost more to fix than would have been spent doing the job properly in the first place.
Certainly one of the major up-front expenses will be legal costs. The first part of this category of costs includes the preparation of all necessary franchise documentation, including the franchise agreement, lease documentation, security documentation, product supply agreements, and a myriad of other necessary documents. Franchising in the U.S. also involves considerable regulatory expense and delay.
It is certainly an easy matter to photocopy someone else's franchise agreement and use it. You can also have one prepared by a lawyer with little experience in drafting franchise agreements. You can also write one on the back of a restaurant napkin. However, one dispute with a franchisee arising from an improperly drafted franchise agreement will certainly cost you many times more than it would have cost to have the documentation drafted properly in the first place. In our experience, proper drafting of a franchise agreement requires both an intimate knowledge of the business to be franchised, and of what has gone right and gone wrong in other people's franchises.
Another item of legal/regulatory expense will be the registration of trademarks. There is no getting around this: you must trademark your name and any significant designs or slogans. A trademark is the best way to ensure that no one else will be able to imitate your name, logo, slogans or designs, and to ensure that you will be able to use these important identifiers across Canada. If expansion into the U.S. and other markets is planned, early trademark registrations in those jurisdictions will also ensure that you will be able to carry on business in all jurisdictions under the same name and identifying marks.
You should also budget for design work. This includes architectural design and graphic design. In most business-format franchises, you will want a consistency of design, decor and layout. Make sure you negotiate with the architect for the purchase by you of the copyright in the store design. If not, you will be paying a design fee for each subsequent use of that design. With respect to graphic design, it is equally important that the promotional materials used by you to sell your concept be top-notch.
You may incur fees from other professionals including real estate consultants or market analysts in connection with site selection and/or market analysis. You may wish to hire a consulting firm to work in developing a franchisee profile and screening questionnaire.
Marketing expenses will also be incurred. These will include the cost of producing promotional material and of attending franchise and business opportunity shows. If you hire marketing staff, either salaried or commissioned, their expense (salary, cost of benefits, and expense account) must also be budgeted for.
Your start-up budget must also provide adequate financing for the training of franchisees. This will include the preparation of an operations manual. It will also include a sufficient amount of time, either yours or members of your staff, to provide classroom and in-store training.
Finally, you need adequate backroom administration. You should have adequate computer hardware and software to track the financial status of your franchise system on a daily basis and adequate support staff to run those systems and liaise with delinquent franchisees. Where possible, your system should provide for electronic data interchange with your franchisees (information being downloaded from the franchisee's electronic cash register to the franchisee's computer system to your head office nightly via telephone transfer). You should also have pre-authorized electronic debit with each of your franchisee's bank accounts. Over time, the development of customized software to track franchisee performance and identify trouble signs early will be of great assistance to both you and to your franchisees. You need an excellent Website and a strong Internet presence.
What Laws Govern Franchising?
Ontario Alberta and P.E.I. are the only provinces in Canada with franchise specific legislation. This legislation is designed primarily to ensure that prospective franchisees receive certain specified disclosure regarding the franchise system in which they are considering investing, and also requires franchisors and franchisees to deal fairly with each other at all times. If you're franchising your business, compliance with this legislation is vitally important in order to comply with the legislation and to protect you from personal liability. We author the Annotated Franchise Disclosure Act of Ontario and the Annotated Franchises Act of Alberta, the leading legal commentaries on the legislation.
Many American states have franchise and business opportunities legislation. State franchise legislation requires registration of any franchise offering prior to commencement of any kind of sales activity within that state. The obligations imposed by this legislation are time consuming and expensive to comply with. The requirements of each state differ, and to complicate matters, the U.S. Federal Trade Commission (whose rules must be complied with in all states) has its own set of rules. Although we are not presently qualified to practice law in the U.S., our Franchise Law Group is familiar with U.S. requirements, and can assist in the establishment of franchise concepts in the United States.
In addition to any franchise-specific legislation that may exist in any province or state, franchising is governed by what is known as "laws of general application". If you, as a franchisor, misrepresent material facts to someone in an effort to induce them to purchase a franchise from you, you may be liable to pay money to that person if they suffer injury as a result of the fact that your statements proved false. This is because, as a matter of contract law, people are not permitted to misrepresent material facts in order to induce another person to enter into a contract.
Likewise, if a dispute arises between a franchisor and franchisee with respect to the interpretation of any particular part of a franchise agreement, then that dispute can be referred to a judge for resolution, just as any other dispute between two people may be taken before a judge. Of course these days alternative dispute resolution, which includes arbitration and mediation, may be resorted to if the franchise agreement provides for it or if the parties agree to it.
APPENDIX
The following checklist sets out a list of issues to be considered either in the establishment of a new franchise, or in the conversion of an existing business to a franchised system.
STRATEGIC PLANNING
Clearly define the business you are in
Clearly state the specific objectives of your business
Clearly define your target market
Identify major trends in your target market
Assess market opportunities (1 yr., 2 yrs., 5 yrs.)
Estimate competitor actions (1 yr., 2 yrs., 5 yrs.)
Select geographic expansion strategy
Develop alternative strategies for geographic expansion
Set goals for geographic expansion (1 yr., 2 yrs., 5 yrs.)
Identify market testing required by geographic expansion strategy
Define the financial and other requirements of the goals for geographic expansions
List strengths and weaknesses of major competitor's pricing, products, services, operations, location, image, etc.
List strengths and weaknesses of your firm's pricing, products, services, operations, location, image, etc.
Develop product and service strategy
Develop pricing strategy
Develop location strategy
Develop strategy for ownership of leaseholds and properties
Develop image and graphic identification strategy for domestic and international markets
List and schedule improvements to pricing products, services, operations, locations, etc.
FINANCIAL
Determine fixed costs of commencing franchise program
Determine variable costs to franchisor of opening each unit
Determine continuing costs of providing services to each franchise unit
Determine total investment required for each new franchise unit
Determine leasing and financing arrangements
Establish franchisee capital requirements
Develop franchisee gross income projections
Develop franchisee cost projections
Develop franchisee profit projections
Set franchise fees
Identify sources and amounts of revenue to be received from franchisee
Develop franchisor budgets (1 yr., 2 yrs., 5 yrs.)
Develop franchisor profit projections
CORPORATE STRUCTURE AND TAX PLANNING
Identify sources of expertise in corporate structure and tax planning
Review tax implications of corporate structure including franchisor/franchisee relationship
Make required changes in corporate structure
Review and modify other aspects of operation to optimize tax position
LEGAL
Select lawyer with expertise in franchise law
Develop letter of intent
Develop franchise contract
TRADENAMES, TRADEMARKS AND GRAPHICS
Select a lawyer with expertise in trademarks
Review adequacy of existing tradenames and trademarks
Ensure domestic and international protection of existing and new tradenames and trademarks
Select graphics specialist
Review and improve existing graphic designs, colours, materials, etc. for domestic and international markets
Develop sign designs, standards and sourcing
Develop other graphic items, standards and sourcing
Develop manual for standard graphic designs, colours, materials, sign designs, etc.
Integrate required graphics information into franchisee operations manual
STRUCTURE AND FACILITIES
Develop dimensional requirements and standards of structure
Develop exterior design and appearance standards for domestic and international markets
Develop interior layout design and standards of structure
Develop equipment and fixture standards and sourcing
Develop interior decor theme and materials and sourcing
Integrate required structure and facilities information into franchisee operations manual
LOCATION SELECTION AND ACQUISITION
Identify critical location characteristics
Develop guidelines and methodology for finding and acquiring locations
Identify sources of site selection and purchase and lease negotiation expertise
Establish system for managing properties and leases
Integrate required information into franchisee operations manual
OPERATIONS
Develop format and content of operations manual
Develop operating procedures and standards for franchisee operations
Develop methods of monitoring adherence to the operating procedures and standards
Develop forms and report formats for monitoring adherence to the operating procedures and standards
Develop methods of monitoring efficiency and cost controls of franchisee operations
Develop forms and report formats for monitoring efficiency and cost controls of franchisee operations
Develop methods of monitoring the quality of service and product provided by each franchise
Develop methods of monitoring levels of customer satisfaction and complaints regarding service and product provided by each franchise
Develop continuing technical management support program to assist franchisees
Integrate required operations information into operations manual
ACCOUNTING, CONTROL AND REPORTING SYSTEMS
Select accounting firm having appropriate expertise
Review adequacy of existing accounting control reporting systems
Review methods of collecting franchise system revenues
Review cash management system requirements for the franchise system
Review inventory control requirements for the franchise system
Review methods of minimizing losses to franchisor and franchisee due to staff theft, fraud, etc.
Determine franchisee and franchisor accounting control reporting requirements
Develop franchisee accounting, control and reporting system
Develop franchisor accounting, control and reporting system
Assess and select system hardware and software
Develop system instructions and forms
Integrate required information into franchisee operations manual
PURCHASING
Develop purchasing policies for franchisor and franchisee
Develop list of items regularly purchased by franchisor and franchisee
Identify sources of items regularly purchased by franchisor and franchisee
Develop purchasing control system and audit trail for franchisor and franchisee
Integrate required purchasing information into operations manual
FRANCHISEE RECRUITMENT AND RELATIONS
Identify critical franchisee personal characteristics and skills
Develop strategy and plans for marketing franchises
Select franchisor representatives to market franchises
Develop sales presentation to be made to prospective franchisees
Develop franchise brochure and other promotional materials
Develop procedure for evaluating potential franchisees
Develop policies and mechanisms for maintaining a favourable ongoing relationship with franchisee
FRANCHISEE STAFFING AND TRAINING
Identify skills and knowledge required by franchisee
Develop training program and lesson plans for franchisee
Identify personal and staff requirements for each position in franchise unit
Set recruitment guidelines and standards for each position in franchise unit
Develop training program and lesson plans for staff of franchise
Assemble packages of training aids and materials
Identify franchisor staff and facilities for conducting training programs
Integrate required staffing and training information into franchisee operations manual
ADVERTISING AND MERCHANDISING
Select advertising agency
Develop national advertising strategy
Develop local and regional advertising strategy and program schedules
Develop local and national publicity programs
Develop point-of-sale merchandising aids
Set merchandise display standards, policies and formats
Develop program for launch of new franchise units
Develop methods of evaluating effectiveness of advertising and merchandising efforts
Integrate required advertising and merchandising efforts
Integrate required advertising and merchandising information into operations manual
INSURANCE
Select qualified insurance consultant
Identify franchisor and franchisee insurance requirements
Develop controls to ensure adequate insurance coverage by franchisee
Integrate required insurance information into operations manual
FRANCHISOR ORGANIZATION STAFFING
Define appropriate staff organization and reporting relationship for developing and managing franchise system
Identify additional staff requirements and commence recruitment program
Ensure the efficiency, effectiveness and documentation of head office systems, methods and records
Summary
We hope that these materials provide you with a lot to think about if you are considering franchising your concept. Some people get lucky in life and inherit a lot of money or win lotteries. Successful franchising, on the other hand, involves extensive planning, hard work and a considerable amount of time. A little luck doesn't hurt either! If you have what it takes, franchising can provide you with a rewarding and exciting business opportunity.
How to Franchise Your Business - To learn more about this author, visit Peter Macrae Dillon's Website.
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Introduction
Starting a franchise takes a lot of work. If you turn to the Appendix to this paper and see the checklist of items to consider when starting a franchise, you'll see what we mean. However, properly done, a franchise system can be rewarding and efficient. Let's start our consideration of the franchising of your business by taking a brief look at what franchising is.
What is Franchising?
Franchising is typically defined as a system of doing business in which a franchisor gives a franchisee the right to carry on business in a specified manner under the franchisor's trademark within a defined geographical area. We usually associate a franchise with a particular product or service and connect it with a trademark that is well known in the marketplace. By purchasing a franchise, the franchisee obtains the right to use the successful formula of the franchisor. In order to maintain the success of its franchise system, the franchisor will require franchisees to strictly adhere to its system and standards of quality.
In effect, by creating a franchise, a franchisor has created a distinct product. The marketing, sale and support of its franchises becomes a business in and of itself.
You are likely most familiar with the type of franchising commonly referred to as "business format" franchising, in which the franchisor provides a complete business format under a common name. The more traditional form of franchising, which is considered to have started in about 1850 by the Singer Sewing Machine Company, and which gained real momentum in the 1920's with gasoline stations and automobile tires, is based on product distribution arrangements controlled by the franchisor through its patents and trademarks. In that system, the franchisee maintains its own independent identity and may in fact be involved in the distribution of more than one type of product.
The Popularity of Franchising
The enormous quantity of products and services making their way to market has brought with it the need for a rapid, cost-effective and successful means to obtain market penetration. Franchising has proven itself capable of meeting this need.
As well, there is an increasingly large pool of well-educated individuals with resources who can operate franchises as franchisees. Corporate downsizing in our current economy has forced many management-level individuals into the franchise market. Likewise, an increasingly large number of women are pursuing the option of owning their own franchise. Franchising is also popular because of the proven higher rate of success it enjoys compared to independent non-franchised businesses. This proven rate of success is largely due to the fact that the product or service has typically already proven successful, and to the assistance provided by the franchisor in training, marketing and operating a franchise.
A study conducted by the University of Toronto showed that franchised donut stores were on average 300% more profitable than independently-owned donut stores.
Various studies have shown a very high level of satisfaction among existing franchisees. This is notwithstanding some of the recent negative publicity concerning certain franchises.
Why Franchise Your Business?
This question presupposes that an individual considering franchising has already made the decision to expand their business. Generally speaking, there are four ways to expand a business. The first is to finance the growth internally through retained earnings generated from within the business itself. The second is for the business to borrow, on the strength of its current equity, to finance expansion. The third is to inject new equity into the business through the owner's other personal resources, or through the introduction of venture capital. The fourth is to utilize the capital of a collection of unrelated individuals through the sale of franchises to them; i.e., the right to operate a business substantially similar to your own.
One obvious advantage of utilizing the capital of franchisees is that it will allow much more rapid growth than expansion through retained earnings. The use of the owner's outside personal resources may increase the risk of expansion to an unacceptable level. The introduction of venture capital may destabilize the very business itself by diluting control of the business.
Another proven advantage of franchising is that it typically results in better performance than a similar operation managed by a corporate employee. Today, many large and successful franchises utilize franchising as a means to expand in smaller communities where the personality and involvement of the franchisee can make a significant difference.
Expansion through franchising permits a franchisor to run a very lean operation. Instead of the franchisor taking on an increasing number of employees, with all of the consequent management difficulties that it entails, individual franchisees assume the responsibility for managing their own staff, including the cost of compliance with applicable employment legislation.
We have already mentioned that franchising usually allows a more rapid expansion. In today's highly competitive environment, early market saturation often translates into an early competitive advantage and market dominance. Hence the rapid expansion possible through franchising may be indispensable. In the case of some successful, mature franchises, the final phase of franchising will involve the franchisor purchasing outlets that were initially franchised, thereby consolidating the growth into the franchisor.
Another aspect of franchising that contributes to its own rapid expansion is the economies of scale that result with each newly opened outlet. These economies tend to reduce the cost of doing business, permitting the franchise to compete more aggressively in the market and, hence, expand more rapidly.
Needless to say, the sale of a franchise will also generate cashflow to the franchisor. In some cases, this can be substantial with typical franchise fees running from $10,000 to $75,000. Many franchises will also charge a renewal fee each five to ten years equal to all or part of the initial franchise fee.
A variety of other risks, such as legal liability for personal injury that occurs on store premises, are also spread in a franchised business.
Are There Any Disadvantages to Franchising?
You bet. The greatest single skill required of a franchisor is his or her (or its, in the case of a larger franchise organization) ability to manage its franchisees.
The selection of high quality franchisees is a science in and of itself. It’s also a balancing act. On the one hand, the franchisor wants successful, independent-minded business people. On the other hand, the franchisor wants compliant individuals who will adhere to its system. This fundamental conflict will constantly test the franchisor's patience and management skills.
In a matter of time, most franchise systems will accumulate one or more "rogue" franchisees and one or more "complainer" franchisees.
The rogue franchisee is the successful franchisee who believes that the success of his or her outlet is based entirely on the skills and personality of the franchisee, and has nothing to do with the franchisor, their concept or their system. The complainer franchisee is typically an unsuccessful franchisee whose complaints require that a disproportionate amount of the franchisor's resources be spent on him or her, and who spreads discontent amongst other franchisees.
In most cases, an employer can terminate an employee, however, it involves some expense. In the franchise system, the franchisee has purchased a right to operate an outlet and, provided he continues to abide by the franchise agreement, cannot usually be terminated. This is especially the case since Courts tend to interpret one-sided franchise agreements against franchisors and to grant second chances to franchisees. In addition, decisions of American Courts and some American statutes now limit the ability of a franchisor to refuse to renew the term of a franchise agreement. This judicial and legislative protection will likely make its way into Canada.
Don't forget that, despite all of the lengthy wording to the contrary in your franchise agreement, you will be giving up a considerable amount of control over the operation of a franchised outlet. For instance, the law limits the ability of a franchisor to establish pricing, to compel participation in franchise-wide promotions or to compel participation in all aspects of centralized purchasing.
And don't forget that franchising will require you to split your profits with your franchisees. While you will receive a royalty fee, the franchisee must also be permitted to earn a salary and a return on investment. These amounts, or at least a part of them, would otherwise be available to a corporation directly owning each outlet.
Is My Business Franchisable?
We suspect this is the question you've been waiting for. Here is a checklist of items to consider in responding to that question.
How original is the business concept?
If you are heading into the burger market, you had better have something outstanding by way of product, service or otherwise in order to differentiate yourself from the competition. And remember, your good ideas will be copied in a flash.
Is the concept merely a trend, or is it something that will endure in the marketplace?
Is the success of the business based on elements that are easily duplicated?
This means that the success of the business should not require extensive education (as opposed to some training) of the franchisee, and it should not depend upon the unique personality of the franchisor.
How much would it cost to reproduce an outlet? Can a franchisee afford that amount?
Are there other locations available that would be suitable for this type of franchise?
Is the type of individual that you require as a franchisee readily available?
Do you have the necessary management skills to administer a franchise system?
As franchisor, you will be moving out from behind the counter and into an entirely new role. The success of the franchise will depend to a very large extent on whether you possess the necessary skills to administer the systems and manage the people.
Have you taken the necessary steps to protect your proprietary property including logos, designs, names, etc.?
The necessary trademarks, copyrights and patents should be pursued in order to reduce the risk of misappropriation by others, and to ensure the ability on your part to enforce compliance with your franchise standards.
Is the concept subject to a high degree of standardization?
This permits customers to enter any franchise location and recognize it as offering the same level of quality and uniformity that they have come to expect. It promotes the "name branding" that is so indispensable to a successful franchise.
Does each franchise unit have the ability to generate above-average profits?
Remember that each outlet must generate enough profit to allow the franchisee to pay royalties and still leave a reasonable profit to the franchisee.
When Do I Franchise?
This is the second most-asked question.
There is no simple answer to this question. Many pundits will suggest that a franchisor have several years of experience with the prototype operation before commencing the sale of franchises. One rule of thumb that we have seen offered is that the franchisor be in business no less than two years with two outlets run by managers.
In our fast-paced economy however, it is not always feasible to wait this long.
Frankly, we think the more important question to ask is whether you, as a potential franchisor, have done the necessary up-front preparation for a franchisee. Proper pre-franchise planning includes the following:
Do you have the $15,000 to $30,000 to cover the expenses of franchising your business in Canada, or the $30,000 to $75,000 for franchising in the U.S.?
Have you identified the attributes of your business that account for its success?
Have you secured an adequate supply of goods or services to support the franchise network?
Have you developed a operation and marketing manuals for use by your franchisees?
The difficult issues that must be addressed in developing a manual will assist in fashioning responses to hard questions before they arise in real life.
Do you have a well-developed system for training new franchisees, as well as an adequate location?
Have you developed a detailed understanding of the precise location requirements for franchised outlets? (This is a very important issue.)
Have you developed a detailed business plan, including the method in which you intend to expand (single-unit franchises, area franchises or master franchises)?
Have you developed a strategy for recruiting franchisees and head office staff?
Have you spent the time to develop a complete financial plan for your franchise, including potential problem areas?
Have you arranged the necessary financing?
Do you have a definite idea as to the type of individual you want as a franchisee? If you do not have the expertise to select such individuals, have you identified a competent recruiter/screener to perform that important function?
Do you have a thorough understanding of the business you are in? This involves having a clear understanding of your "concept", and taking all necessary steps to strengthen and protect it.
Miscellaneous Tips
Here is a potpourri of advice to consider when setting up your franchise system.
Selection of Franchisees Consider very carefully the type of person you want as a franchisee. Consider hiring a consultant to create a personality profile of serious applicants. It's much easier to keep poor candidates out of your franchise, than to get them out once they're in.
Location Consider very carefully the criteria for locating a franchised outlet. Consider hiring a market analyst to develop site selection criteria for you. In our experience, this is perhaps the greatest single requirement for success of a franchise. Do not select site B just because the rent is lower. It will be worth paying double the rent at site A if the sales are five times what site B will generate.
Lawyer Hire a good franchise lawyer. A lawyer with a lot of experience in franchising generally will not cost any more on an hourly basis than any other lawyer. However, his or her experience will mean that less time is required to perform your work, and the results should be markedly superior.
Expansion Don't go too far afield. You will be approached by people in Flin Flon and Albuquerque for the opportunity to purchase your franchise. Have a plan for the gradual expansion of your franchise and stick to it. Going too far too fast will strain your system and lead to complaints from franchisees that they get no head office support.
Stick to the Rules Charge a fee for late payment of royalties and ad fund contributions. Make a point of collecting those late payment charges. Establishing the rules and the requirement to stick to them early on will pay off in the long run.
Go Slow; Don't Rush Take your time, plan, and don't get rushed into anything by someone who "must" have one of your franchises before you're ready.
Research Research your proposed market thoroughly. Know your competitors inside and out.
Franchise Agreement Develop a fair franchise agreement and stick to it. The franchise agreement should provide a fair deal to your franchisees. It should also provide them fair protection, such as a reasonable amount of time to cure defaults that may arise from time to time. On the other hand, do not negotiate the terms of your franchise agreement with each prospective franchisee that comes along. This will cost you endless time, and leave you with so many deals and side-deals that you'll be totally confused.
Marketing Use a graphic artist, or better yet an ad firm, to develop your marketing material. You should look professional from the outset.
Territories Resist the temptation to grant large, exclusive territories to your initial franchisees. These territories will hinder future expansion and can be a disincentive to the franchisee to work hard and develop the full market potential of his or her territory.
Leases Lease all franchise locations yourself. Sublease the site to your franchisees. Control of the location is the ultimate in the control of your franchisee.
Capital Don't lend money to your franchisees. If your franchisee does not have sufficient capital or resources to pay its franchise fee and other start-up costs in full, then you don't want to deal with him or her.
Problem Solving Similarly, don't let a franchisee fall behind on royalties, lease payments or ad fund contributions. Sit down right away and determine what the problem is. Work hard with the franchisee to resolve those problems. If the problems cannot be resolved through no fault of the franchisee, work to minimize the impact on the franchisee or try and relocate the franchisee. If the fault lies with the franchisee, end the relationship.
Ad Contributions Make sure that ad contributions are kept in a separate interest-bearing trust account. Provide a quarterly statement of income and expenses on the ad fund to all of your franchisees.
Expenses of Franchising
Establishing a franchise properly can be an expensive undertaking. If it's done wrong, it could cost you everything you have, including the very business you were hoping to franchise.
Prior to considering franchising, your own business should be stable enough to permit the tremendous diversion of your time that establishing a franchise system will require. You should also have sufficient cashflow and/or retained earnings to properly fund the franchise venture from the outset. While it is possible to franchise on a shoestring and jerry-build a franchise system, the results from such ventures are typically much less than optimal, and often cost more to fix than would have been spent doing the job properly in the first place.
Certainly one of the major up-front expenses will be legal costs. The first part of this category of costs includes the preparation of all necessary franchise documentation, including the franchise agreement, lease documentation, security documentation, product supply agreements, and a myriad of other necessary documents. Franchising in the U.S. also involves considerable regulatory expense and delay.
It is certainly an easy matter to photocopy someone else's franchise agreement and use it. You can also have one prepared by a lawyer with little experience in drafting franchise agreements. You can also write one on the back of a restaurant napkin. However, one dispute with a franchisee arising from an improperly drafted franchise agreement will certainly cost you many times more than it would have cost to have the documentation drafted properly in the first place. In our experience, proper drafting of a franchise agreement requires both an intimate knowledge of the business to be franchised, and of what has gone right and gone wrong in other people's franchises.
Another item of legal/regulatory expense will be the registration of trademarks. There is no getting around this: you must trademark your name and any significant designs or slogans. A trademark is the best way to ensure that no one else will be able to imitate your name, logo, slogans or designs, and to ensure that you will be able to use these important identifiers across Canada. If expansion into the U.S. and other markets is planned, early trademark registrations in those jurisdictions will also ensure that you will be able to carry on business in all jurisdictions under the same name and identifying marks.
You should also budget for design work. This includes architectural design and graphic design. In most business-format franchises, you will want a consistency of design, decor and layout. Make sure you negotiate with the architect for the purchase by you of the copyright in the store design. If not, you will be paying a design fee for each subsequent use of that design. With respect to graphic design, it is equally important that the promotional materials used by you to sell your concept be top-notch.
You may incur fees from other professionals including real estate consultants or market analysts in connection with site selection and/or market analysis. You may wish to hire a consulting firm to work in developing a franchisee profile and screening questionnaire.
Marketing expenses will also be incurred. These will include the cost of producing promotional material and of attending franchise and business opportunity shows. If you hire marketing staff, either salaried or commissioned, their expense (salary, cost of benefits, and expense account) must also be budgeted for.
Your start-up budget must also provide adequate financing for the training of franchisees. This will include the preparation of an operations manual. It will also include a sufficient amount of time, either yours or members of your staff, to provide classroom and in-store training.
Finally, you need adequate backroom administration. You should have adequate computer hardware and software to track the financial status of your franchise system on a daily basis and adequate support staff to run those systems and liaise with delinquent franchisees. Where possible, your system should provide for electronic data interchange with your franchisees (information being downloaded from the franchisee's electronic cash register to the franchisee's computer system to your head office nightly via telephone transfer). You should also have pre-authorized electronic debit with each of your franchisee's bank accounts. Over time, the development of customized software to track franchisee performance and identify trouble signs early will be of great assistance to both you and to your franchisees. You need an excellent Website and a strong Internet presence.
What Laws Govern Franchising?
Ontario Alberta and P.E.I. are the only provinces in Canada with franchise specific legislation. This legislation is designed primarily to ensure that prospective franchisees receive certain specified disclosure regarding the franchise system in which they are considering investing, and also requires franchisors and franchisees to deal fairly with each other at all times. If you're franchising your business, compliance with this legislation is vitally important in order to comply with the legislation and to protect you from personal liability. We author the Annotated Franchise Disclosure Act of Ontario and the Annotated Franchises Act of Alberta, the leading legal commentaries on the legislation.
Many American states have franchise and business opportunities legislation. State franchise legislation requires registration of any franchise offering prior to commencement of any kind of sales activity within that state. The obligations imposed by this legislation are time consuming and expensive to comply with. The requirements of each state differ, and to complicate matters, the U.S. Federal Trade Commission (whose rules must be complied with in all states) has its own set of rules. Although we are not presently qualified to practice law in the U.S., our Franchise Law Group is familiar with U.S. requirements, and can assist in the establishment of franchise concepts in the United States.
In addition to any franchise-specific legislation that may exist in any province or state, franchising is governed by what is known as "laws of general application". If you, as a franchisor, misrepresent material facts to someone in an effort to induce them to purchase a franchise from you, you may be liable to pay money to that person if they suffer injury as a result of the fact that your statements proved false. This is because, as a matter of contract law, people are not permitted to misrepresent material facts in order to induce another person to enter into a contract.
Likewise, if a dispute arises between a franchisor and franchisee with respect to the interpretation of any particular part of a franchise agreement, then that dispute can be referred to a judge for resolution, just as any other dispute between two people may be taken before a judge. Of course these days alternative dispute resolution, which includes arbitration and mediation, may be resorted to if the franchise agreement provides for it or if the parties agree to it.
APPENDIX
The following checklist sets out a list of issues to be considered either in the establishment of a new franchise, or in the conversion of an existing business to a franchised system.
STRATEGIC PLANNING
Clearly define the business you are in
Clearly state the specific objectives of your business
Clearly define your target market
Identify major trends in your target market
Assess market opportunities (1 yr., 2 yrs., 5 yrs.)
Estimate competitor actions (1 yr., 2 yrs., 5 yrs.)
Select geographic expansion strategy
Develop alternative strategies for geographic expansion
Set goals for geographic expansion (1 yr., 2 yrs., 5 yrs.)
Identify market testing required by geographic expansion strategy
Define the financial and other requirements of the goals for geographic expansions
List strengths and weaknesses of major competitor's pricing, products, services, operations, location, image, etc.
List strengths and weaknesses of your firm's pricing, products, services, operations, location, image, etc.
Develop product and service strategy
Develop pricing strategy
Develop location strategy
Develop strategy for ownership of leaseholds and properties
Develop image and graphic identification strategy for domestic and international markets
List and schedule improvements to pricing products, services, operations, locations, etc.
FINANCIAL
Determine fixed costs of commencing franchise program
Determine variable costs to franchisor of opening each unit
Determine continuing costs of providing services to each franchise unit
Determine total investment required for each new franchise unit
Determine leasing and financing arrangements
Establish franchisee capital requirements
Develop franchisee gross income projections
Develop franchisee cost projections
Develop franchisee profit projections
Set franchise fees
Identify sources and amounts of revenue to be received from franchisee
Develop franchisor budgets (1 yr., 2 yrs., 5 yrs.)
Develop franchisor profit projections
CORPORATE STRUCTURE AND TAX PLANNING
Identify sources of expertise in corporate structure and tax planning
Review tax implications of corporate structure including franchisor/franchisee relationship
Make required changes in corporate structure
Review and modify other aspects of operation to optimize tax position
LEGAL
Select lawyer with expertise in franchise law
Develop letter of intent
Develop franchise contract
TRADENAMES, TRADEMARKS AND GRAPHICS
Select a lawyer with expertise in trademarks
Review adequacy of existing tradenames and trademarks
Ensure domestic and international protection of existing and new tradenames and trademarks
Select graphics specialist
Review and improve existing graphic designs, colours, materials, etc. for domestic and international markets
Develop sign designs, standards and sourcing
Develop other graphic items, standards and sourcing
Develop manual for standard graphic designs, colours, materials, sign designs, etc.
Integrate required graphics information into franchisee operations manual
STRUCTURE AND FACILITIES
Develop dimensional requirements and standards of structure
Develop exterior design and appearance standards for domestic and international markets
Develop interior layout design and standards of structure
Develop equipment and fixture standards and sourcing
Develop interior decor theme and materials and sourcing
Integrate required structure and facilities information into franchisee operations manual
LOCATION SELECTION AND ACQUISITION
Identify critical location characteristics
Develop guidelines and methodology for finding and acquiring locations
Identify sources of site selection and purchase and lease negotiation expertise
Establish system for managing properties and leases
Integrate required information into franchisee operations manual
OPERATIONS
Develop format and content of operations manual
Develop operating procedures and standards for franchisee operations
Develop methods of monitoring adherence to the operating procedures and standards
Develop forms and report formats for monitoring adherence to the operating procedures and standards
Develop methods of monitoring efficiency and cost controls of franchisee operations
Develop forms and report formats for monitoring efficiency and cost controls of franchisee operations
Develop methods of monitoring the quality of service and product provided by each franchise
Develop methods of monitoring levels of customer satisfaction and complaints regarding service and product provided by each franchise
Develop continuing technical management support program to assist franchisees
Integrate required operations information into operations manual
ACCOUNTING, CONTROL AND REPORTING SYSTEMS
Select accounting firm having appropriate expertise
Review adequacy of existing accounting control reporting systems
Review methods of collecting franchise system revenues
Review cash management system requirements for the franchise system
Review inventory control requirements for the franchise system
Review methods of minimizing losses to franchisor and franchisee due to staff theft, fraud, etc.
Determine franchisee and franchisor accounting control reporting requirements
Develop franchisee accounting, control and reporting system
Develop franchisor accounting, control and reporting system
Assess and select system hardware and software
Develop system instructions and forms
Integrate required information into franchisee operations manual
PURCHASING
Develop purchasing policies for franchisor and franchisee
Develop list of items regularly purchased by franchisor and franchisee
Identify sources of items regularly purchased by franchisor and franchisee
Develop purchasing control system and audit trail for franchisor and franchisee
Integrate required purchasing information into operations manual
FRANCHISEE RECRUITMENT AND RELATIONS
Identify critical franchisee personal characteristics and skills
Develop strategy and plans for marketing franchises
Select franchisor representatives to market franchises
Develop sales presentation to be made to prospective franchisees
Develop franchise brochure and other promotional materials
Develop procedure for evaluating potential franchisees
Develop policies and mechanisms for maintaining a favourable ongoing relationship with franchisee
FRANCHISEE STAFFING AND TRAINING
Identify skills and knowledge required by franchisee
Develop training program and lesson plans for franchisee
Identify personal and staff requirements for each position in franchise unit
Set recruitment guidelines and standards for each position in franchise unit
Develop training program and lesson plans for staff of franchise
Assemble packages of training aids and materials
Identify franchisor staff and facilities for conducting training programs
Integrate required staffing and training information into franchisee operations manual
ADVERTISING AND MERCHANDISING
Select advertising agency
Develop national advertising strategy
Develop local and regional advertising strategy and program schedules
Develop local and national publicity programs
Develop point-of-sale merchandising aids
Set merchandise display standards, policies and formats
Develop program for launch of new franchise units
Develop methods of evaluating effectiveness of advertising and merchandising efforts
Integrate required advertising and merchandising efforts
Integrate required advertising and merchandising information into operations manual
INSURANCE
Select qualified insurance consultant
Identify franchisor and franchisee insurance requirements
Develop controls to ensure adequate insurance coverage by franchisee
Integrate required insurance information into operations manual
FRANCHISOR ORGANIZATION STAFFING
Define appropriate staff organization and reporting relationship for developing and managing franchise system
Identify additional staff requirements and commence recruitment program
Ensure the efficiency, effectiveness and documentation of head office systems, methods and records
Summary
We hope that these materials provide you with a lot to think about if you are considering franchising your concept. Some people get lucky in life and inherit a lot of money or win lotteries. Successful franchising, on the other hand, involves extensive planning, hard work and a considerable amount of time. A little luck doesn't hurt either! If you have what it takes, franchising can provide you with a rewarding and exciting business opportunity.
How to Franchise Your Business - To learn more about this author, visit Peter Macrae Dillon'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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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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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle'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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