Are You Ready to Open a Franchise?

 

It’s really exciting to think about as you’re driving down the busy highway, passing all of those popular shops and restaurants, thinking to yourself “I can do that, I can totally run one of those!” And you may be right, with that entrepreneurial mindset you have, that drive and ambition, you may be ready to step out on your own and take the reigns. With a little help from an established brand name and concept, the cash to buy in, easy breezy right? Well let’s take a look at some of the preparations and expectations you’ll face as you venture into the franchising adventure!

 

Pairing your desire with a particular industry and choosing the right franchise is obviously a very important first step. Picking a franchise that pairs with not only your passion, but your skills is critically important too. If you’ve never worked in a restaurant, what makes you think you have what it takes to run one? After all, you’ll be the one running this business. You will be the one making the decisions and working the hardest. It’s very important to know what you’re doing as everyone will be looking to you for the answers and guidance, especially in the beginning.

Opening a franchise has many benefits. There’s the branding that’s already in place, the proven business model that has multiplied, the staff and support of an already structured corporate entity, part of a vast business network. You’ll have access to known vendors, product and inventory discounts and increased spending power. Even before you open you’ll have assistance in location selection, design and construction, staff training and business development. The moment you open your doors your product or service has already been established as successful, and its reputation is widespread, giving you the opportunity to start off with a proven method that has a standard of consistency and a pre-sold customer base. Now it’s up to you to withhold the standards.

 

As with any new venture, there will be hurdles. Undertaking something like this isn’t going to be easy breezy, so those blissful daydreams behind the wheel on your way to work, wake up! This is hard work. Yes, you’re stepping out and opening a business, yes you’re working for yourself in a sense, but you have to realize you’re still under a corporate umbrella. Those standards that were mentioned before, they have to be met. As a franchise owner you’re not completely independent, in many cases you’re even limited with that budding creativity you have as an entrepreneur. You have limits and expectations that are contractually implemented and procedures that are set forth in that paperwork. You enter a legal agreement as a franchisee with a franchisor. Mandates can range from the products and services and the styles and ways of how you offer them, to the pricing, hours and even geographic territory, those pieces all come with the playing board. So you must determine if you can handle and maintain an equal balance between the oversight, restrictions and governance and the ability to manage your own operation. Carefully consider the pros and cons of opening a franchise, and compare them to independently creating your own brand and solely autonomous business. Some people are more conformative and acquiescent, some are anomalous. Know thyself!

Once you’ve decided on taking the plunge into the deep end, this is where preparation comes into full effect. Financial preparedness is crucial. Having the capital to merely open isn’t going to cut the cake, you’re going to have to financially plan for some depth. In addition to franchise fees and opening costs, tally up the ongoing royalties and fees in addition to the expected overhead of actually running the business, make sure you have an absolute minimum of a full year’s worth stashed away in savings before you even cut the ribbon. Although opening a franchise is a good way of eliminating many of the risks of opening an independent business, it’s not a guarantee of financial lucrativeness. Profits can be slim to none in the beginning. This also means that you should plan ahead on the personal side as well. Your income will be tight in the early onset, and sometimes even nonexistent. Have your ducks in a row at home too, keeping in mind that you may not always have that glorious and consistent Friday paycheck.

 

So you’ve chosen the franchise of your dreams, you’ve selected a great location and you’re financially prepared to swing the doors wide open for business! That anticipated business is your market, and that market you better know well. As with most franchises, you’re going to have a territory. That can be an entire state, a county or even a few city blocks, it all depends on the franchise. Make sure you understand your market inside and out. Know your customers, your neighborhood and community, your local government and the overall demographics. This is very important as you become a noticeable fixture in your territory. In some cases you may not be the only franchise in your area. You may even share that area with a very similar business right across the street, so know your competitors too! With the marketing ability and the resources that you’ll have to reach out to your customer base, knowing your market will enable you to maximize that potential. It can also give you a good indication of whether or not you can maximize your investment to grow, sustain and exceed your expectations within a certain territory.

One clear advantage of buying into a franchise is buying into the business synergy that a successful franchise system harnesses, the unity that enables everyone involved to thrive together. From the days of Isaac Singer and his early sewing machine franchise model in the 1800s, the growth of franchising has exponentially grown to over one-third of the U.S. retail market. Over 10 million people make a living from the franchise model and well over half-a-million franchised businesses dot the American landscape. This could very well be your opportunity to make a mark in your desired industry. But evaluate carefully, even though this is a highly successful method of business ownership, it comes with pros and cons. If the shoes fit, run with them.

 

-Eric Statzer

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Julie B – Tampa, FL

I’m a salon owner now on my third opening. I’ve been working with Statzer from the beginning, for many years and highly recommend!

Julie B - Tampa, FL
Beth S – Houston, TX

Thank you for helping my store this month. Every year after the holidays sales decline and thanks to you I was able to get the summer inventory in stock that we needed. You’ve all been very helpful.

Beth S - Houston, TX
Dave N – Phoenix, AZ

I appreciate the all the work you put into helping the business. I didn’t really think there were going to be many options until we had our initial conversation, and there’s a great stress off my shoulders now that we’ve made headway. Looking forward to working together from now on.

Dave N - Phoenix, AZ
Karyn A – San Francisco, CA

Our bank suggested my husband and I take out a loan on our house to finance our business that’s been open for 10 years and made us think there were no other options. Come to find out they didn’t really know as much as you would think a bank should. Statzer Consulting helped get us through the SBA process and just over 3 months after we were able to move the business out of our house and into an office, fully furnish that office, pay off over 40 thousand in credit debt and hire 2 new people. We couldn’t be happier. Thank you so much for everything.

Karyn A - San Francisco, CA
Lauren B – St. Augustine, FL

Statzer Consulting is the epitome of professionalism. They exemplify the best in what a growing company seeks out because of their knowledge, dedication and loyalty to the businesses they’re servicing.

Lauren B - St. Augustine, FL
Dustin D – Orlando, FL

This firm delivers, I’ve known Eric Statzer for 15 years. I’ve had the great experience of working along side him for many of those years. I highly recommend Statzer Consulting and would be happy to elaborate on why you should work with them to anyone interested.

Dustin D - Winter Park, FL
Andre S – Rockford, IL

Statzer Consulting assisted in some real estate investing that my business partner and I were endeavoring. With their guidance we were able to move forward on a project that seemed out of reach given a few hurdles we were dealing with at the time. I am very happy with Josh and his expertise, we will be working together from now on.

Andre S - Rockford, IL
Eduardo A – Boca Raton, FL

I have owned many businesses while serving in the United States Coast Guard. I have been out of the country for months at a time and I know I can always rely on Eric Statzer to get what I need done on the home-front while I’m away. Thanks for all your help throughout the years.

Eduardo A - Boca Raton, FL
Alisha D – Winter Garden, FL

I have used this company for a variety of services related to my family’s online business, my husband also. I recommend them and will continue to seek their guidance as I build my business.

Alisha D - Winter Garden, FL
Adam B – Thonotosassa, FL

Eric Statzer harnesses an incredibly professional attitude to take care of his clients. He goes above and beyond to make sure his clients are in the best financial shape through the process.

Adam B - Thonotosassa, FL
Mike R – Clearwater, FL

Eric is a strong leader and well versed in the business finance market. After working with him I’m seeing that he is a big element of the driving force behind this company’s success.

Mike R - Clearwater, FL
Jillian M – Orlando, FL

Whether it’s marketing, financial management or representation, Statzer has the ability to get businesses in the position to strive and prosper. Their impressive track record for business development is also worth noting and they’re known to really show a genuine interest in their clients. I look forward to working alongside Statzer Consulting in the future, creating more opportunities together for our clients and developing success!

Jillian M - Orlando, FL
Joel H – Seattle, WA

Whether it’s a developing a marketing campaign for a multi-million dollar company or managing the assets of a man worth 50k, they put the same effort and heart into their work, and this is what makes them successful.

Joel H - Seattle, WA
William V – Chicago, IL

$250,000 credit line approval, check – $100,000 a month in invoices finally factored appropriately, check – 3 merchant loans paid off and done with forever, check – After 24 years in business and nearly 1/2 a million in miscellaneous debt spread out, it finally makes sense. We were never doing bad, actually business is great and has been on the upswing for a couple of years but we never realized that we had options to get our debts structured until we spoke with this company. Very relieved and grateful for the introduction. Good team over there, thank you.

William V - Chicago, IL
Aileen I – Portland, OR

I’ve been badgered for years about loans from companies calling, emailing and even walking into my shop at one point. Ended up getting into a couple of situations that put a strain on the business recently, fortunately I was able to get out of it with a solution made possible by Statzer Consulting. Not only am I out of the daily debt that burdened us, I was able to get enough on top to redesign the back of our studio completely which I’ve been talking about doing for years but never had the money. This will do good for us when the next festival comes into town, we’ll be ready, thank you for all your help.

Aileen I - Portland, OR