The Entrepreneur’s Edge with Bill Kelly Expert Advice on Buying and Selling a Business W9 E33-36 Franchising in America

The Entrepreneur’s Edge with Bill Kelly
Expert Advice on Buying and Selling a Business 
on the IBGR. Network ...The World of Business at Your Fingertips

Week 9, Episodes 33-36, Franchising in America
 Welcome to week 9 of the Entrepreneur’s Edge with Bill Kelly

Quote of the Week: “Stop chasing the money and start chasing the passion” – Tony Hsieh 

Welcome to the New Year! 

2022 will offer entrepreneurs all over the world tremendous new opportunities to zero in on the changing marketplace and capitalize on overlooked product and services development or enhancements. If you’ve built a solid company and are thinking of retiring don’t hesitate. All the experts say there is more investment capital available now than any time in the last decade! The SBA and Banks are offering business loans at a fever pitch so don’t miss out. Me and my team of counselors, advisors, and business brokers are eager to meet with you and plan your first of next business move.


If you or someone you know, is interested in starting, selling, or buying a business or franchise, or perhaps you’re considering expanding your business by becoming a franchisor. Please contact me. My team and I can give you solid advice and help you accomplish any of these goals. 

As a Senior Business Advisor and Virginia Commercial Real Estate Agent I’m proud to be a part of Transworld Business Advisors of Richmond. My company John Almond & Associates, Inc. offers a wide array of professional services to entrepreneurs looking to acquire, sell, or start a business in Virginia. 

Contact me, Bill Kelly, AT 804-510-0670 or email me at bkelly@tworld.com

Episode 33 Franchising in America
The single most successful marketing concept ever!  

Our quote today was from the late Tony Hsieh whose book Delivering Happiness I highly recommend.  
 

1. The simple definition of a franchise is the right, or license granted by a company (franchisor) to an individual (franchisee) to market or sell products and services, in a specified manor, in a specific area or territory, often using the company’s logos, trademarks, and brand names.
     
2. The history of the franchise. The word “franchise” is derived from the Anglo-French word meaning “liberty” or “signifying free”. The English term “enfranchise” is defined as empowering those who have no rights. The term “Royal Tithes” is the predecessor of royalties and originated as the practice of certain English men (referred to as “freemen”) receiving a percentage of the land fees paid by serfs to nobility.
    
3. The explosion of franchising in the US. By 1960, more than 900 companies had franchise operations involving an estimated 200,000 franchised outlets. Between 1964 and 1969, fueled by an expanding economy, an estimated 100,000 new franchise businesses sprang up.
   
   
   
4. Everyone knows about McDonalds, but KFC is my favorite story. . In the Great Depression of the 1930’s, Harland Sanders operated a gas station in Corbin, Kentucky, feeding weary travelers a unique fried chicken that earned Sanders accolades from the governor of Kentucky. By 1960, there were 200 KFC franchised outlets, by 1963, 600 outlets, and by the end of the decade, approximately 1,000.
   
   
   
5. Today’s franchises are highly regulated you must be very careful when signing a franchise agreement. Experts say that a majority of all startups (75% to 85%) are bootstrapped.  
    

Tags: Becoming a franchise, Franchises, Franchise Start-up, Business Brokers, Buying a franchise, Transworld Business Advisors

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EPISODE 34 Is franchising right for my business?
Using other people’s talent and money to grow your brand.   


This is a great question for any entrepreneur considering if scaling their business through franchising is right for them. To discover if your business operationally and financially feasible to franchisee, the best way to find out is to open a second location in a different area. 

1. First and foremost is the financial plan. Can your business concept generate enough of a profit to pay your royalty, start-up financing, and in addition provide the new franchisee with an attractive return on their investment? Forecasting/Planning a new business in detail can take a lot of time and effort but it may save you a great deal of time and money in the long run. 
   
   
   
2. You must have a proof of concept It’s one thing to have all of your systems dialed in, but success should be measured by the numbers and a clear record of profitability and operational success of another location.
    
3. Operational documentation & training programs are essential, and a big part of what franchisee investors will use to determine their purchase decision.
   
   
   
4. Perhaps the biggest misconception in franchising is that it’s easy and provide residual income quickly, with little effort. To have the right mindset to franchise, you must duplicate your business first, perhaps three or four times before you fully understand what will be required of a new franchisee.
   
   
   

Tags: Becoming a franchise, Franchises, Franchise Start-up, Business Brokers, Buying a franchise, Transworld Business Advisors

Episode 35  What is required to create a franchise?
Check list for becoming a franchise.
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Becoming a franchise is not easy, and it is highly regulated. Believe it or not, each state has its own regulations for becoming authorized to sell franchises in their state. This is why I always recommend potential franchisors use an experienced Franchise Facilitator.

1. Every Franchise must produce a Disclosure Document (the FDD) the purpose of the Franchise Disclosure Document provides prospective franchisees with information about the franchisor, the franchise system, and the agreements so they can make an informed decision when purchasing.
   
   
   
2. Litigation & Bankruptcy Filings  FDD’s must disclose relevant current and past criminal and civil litigation for the franchisor and its management. Also, if the franchisor or any of its management have gone through a bankruptcy it must be disclosed.  
   
   
   
3. Restriction on sources of products and services Many franchises restrict where a franchisee can source the products or services required to operate. 
   
   
   
4. Territory. The FDD must clearly define the franchisee’s authorized territory of operations and whether the territory is exclusive or can be modified in the future.
    
5. Existing Franchisee Information All FDD’s must provide information on existing locations especially in the state of operations. The franchisor must also provide contact information of existing franchises and an overview of financial performance. 
   
   
   

Tags: Becoming a franchise, Franchises, Franchise Start-up, Business Brokers, Buying a franchise, Transworld Business Advisors   ​

Episode 36 Why should first time business owners consider buying a franchise?  
There is no bigger fool than those who believe they know it all. In the last two episodes we talked about why successful businesses should consider franchising as a way to grow their brand.  In this episode I’d like to talk about why people should consider buying a franchise.

1. You’re a first-time business owner People buy franchises for different reasons, but I always recommend that first time business owners start with a franchise. The main reason is you get financial, marketing and operational training from headquarters, and you have their support and the support of other franchisees in the same system to help you. 
2. Franchises aren’t just for beginning entrepreneurs thousands of millionaires are created each year through their ownership of one or more franchises. Think about it. In the time it would take you to think through and develop a proven operations and marketing system for a business you could have already launched a ready to go franchise and perhaps made years of profits.  
3. The risk factor is less this should certainly be considered and strongly. With a franchise your risk is reduced because 50% of your business has already been developed, documented, tested and refined. Of course, the other 50% is your effort. Without a great attitude and hardworking owner, any business will fail.   
4. Financing is readily available because the franchisor wants to sell franchises and usually, they have lenders who are familiar with their concept and are ready to lend to qualified new owners. 
5. Check these out here are a few examples of franchises I currently am recommending in Virginia. I like all of them for different reasons, but I think each over them are excellent investments.
   
   

https://grazecrazefranchise.com/about-us/
https://www.preveer.com/
https://thegreatgreekgrillfranchise.com/


Tags: Buying a franchise, Franchises, Business Start-up, Choosing a Business, Business Brokers, Buying a Business, Transworld Business Advisors  


Short Bio: Bill Kelly is a Senior Business Broker and Franchise Consultant for Transworld Business Advisors of Richmond, VA. He is also a Licensed Virginia Commercial Real Estate Agent. Bill has been a lifelong Entrepreneur and has personally started or purchased and then sold eleven businesses. He lives in Richmond, Virginia, with his wife Rebecca, and has two daughters, and one granddaughter. 
   
Contact links: bkelly@tworld.com

Social Media:     Facebook: https://www.facebook.com/BillKelly1955
        LinkedIn: https://www.linkedin.com/in/billkellyprofile/
Website:     https://www.tworld.com/agent/billkelly/

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