Franchise Mama

n my book, Negotiate Your Commercial Lease, I share with you many horror stories of tenants who have learned their lessons the hard way. In today’s commercial real estate market, it is simply far too costly not to use these lessons to your advantage. In this column, I will share with you a few of the lessons that easily could have been avoided.

Lesson One – Don’t wait for the landlord to call you about your upcoming lease renewal. A tenant who had just hired us to negotiate his lease renewal waited until the last month before becoming proactive. Now, he is facing a substantial rental increase from $6.00 per square foot to $11.00 per square foot in addition to Overholding Period Penalty charges. The Overholding Clause can be found in most lease agreements; this anticipates that the tenant may not move out when the term is completed. Essentially, the landlord is saying to the tenant that, should he/she stay in the premises on a month-to-month basis, all previous terms and conditions will still apply; however, the rental rate will double or even triple. Why so? It is expected that market rents will increase after a number of year plus the landlord is essentially penalizing the tenant for staying short-term.

Renewing your lease must be a proactive measure initiated nine to 12 months before your lease agreement expires. Tenants have come to us with days or only weeks left on their lease term only to find out that the landlord will only renew their lease at a much higher rent, or not at all. Whether the news is good or bad, it’s better to find out nine months in advance so you have ample time to make plans to relocate, if necessary.

Lesson Two – Ensure the business terms of the Offer to Lease match the Formal Lease Agreement. A large retail tenant (part of a national chain) signed an Offer to Lease that included several months of free rent. The tenant didn’t have anyone review the landlord’s Formal Lease Agreement and simply signed it. The free rent was left out of the Formal Lease Agreement and the tenant had to fight to get back what he had already won. Don’t assume the two documents will be carbon copies of each other. If you cannot stand the thought of plowing through a 50-page Lease Agreement, have a Certified Lease Consultant do it for you.

Lesson Three – Even if a landlord is being truthful with you, he/she can be wrong. A tenant signed a lease for approximately 4,400 square feet (or so it was thought). When we measured the space for the tenant we discovered that the occupied space was only 3,600 square feet. We fixed the problem for the tenant and recovered over $50,000 in overpaid rent, but what if the space had never been measured? That same tenant today would still be paying rent for an additional 900 square feet he did not have. Watch out for the so-called “phantom space”. Have your space measured and don’t take the landlord’s word for it.

Lesson Four – Don’t assume the landlord has seen or approved the Offer to Lease before you sign it. When tenants hire The Lease Coach often they have received an Offer to Lease from the landlord’s broker and want some advice before responding or signing it. Many business owners have pulled their hair out in frustration after signing the broker’s Offer to Lease only to have the landlord ask for more rent in a counteroffer. I explained that this is what’s called a broker driven deal. The listing broker or agent wants to get your signature on the Offer before he/she presents it to the landlord. If the landlord hasn’t signed the Offer being presented to you, ask the Agent if the landlord has pre approved the deal. If not, there may be no deal at all.

Lesson Five – Get it in writing. A tenant told me that his landlord had agreed to provide him with several additional considerations above and beyond the terms and conditions of the lease agreement. When I inquired with the tenant why he had not insisted on getting these items in writing he could not answer me. If there is something you want added to the Offer to Lease or something you want changed in the Formal Lease Agreement, do not wait for the landlord to change it – pick up a pen and change it yourself. Don’t be afraid or shy and don’t be too nice for your own good. If it’s not in writing, it doesn’t count.

Lesson Six – Don’t assume the franchiser will be doing your site selection and lease negotiations in-house. Don’t get me wrong I’m pro-franchising. Many of our clients are franchisers and many more are franchisees. A franchisee recently hired The Lease Coach to do her site selection and negotiate the lease. Why? Because the franchiser had turned the entire site selection process over to a local broker who was in fact representing the landlord’s best interest. The tenant became suspicious when the only properties she was being shown were the broker’s own listings. No one can serve two masters. You must look out for yourself and that means scrutinizing the advice and counsel you receive.


If there is an article idea relating to commercial leasing that you would like to see on the Franchise Mama website, please notify Rick Lauber, Publicity and Marketing for The Lease Coach. You can reach Rick directly by e-mail to ricklauber@TheLeaseCoach.com.


Dale Willerton is Founder of The Lease Coach®, a network of Certified Commercial Lease Consultants who work exclusively for tenants and franchisees across the US and Canada. For more information, e-mail DaleWillerton@TheLeaseCoach.com, call 1 (800) 738-9202 or visit us at www.TheLeaseCoach.com.

Q: Is it okay to sublease from the franchiser or should I insist on a head lease?

A: Whoever holds the head lease has the most power. However, subleasing is very common and very acceptable in most cases. A franchisee client of mine had several stores in a small regional chain. When the franchiser went out of business, he almost lost his location altogether. As the subtenant or the subleasee, it can be beneficial to negotiate for the first right to lease the location if the franchiser goes broker or gives it up for any reason.

Q: Will the franchiser get me the best rental rate, free rent package and tenant allowance possible?

A: Not necessarily. Some franchisers do cookie-cutter deals that call for two months of free rent plus a $15.00 per square foot tenant allowance. A Lease Consultant may be able to negotiate much more for you. Unless you have negotiated accordingly, there may be no provision in the Franchise Agreement or the Sublease Agreement for you to receive anything the franchiser got. In one case, a franchiser negotiated for eight months of free rent but only gave the tenant three months free. The franchiser would receive a large tenant allowance from the landlord, build out the store – then sell the store to the franchisee charging him/her for all the buildout costs and, therefore, making a handy profit.

Q: I’m buying an existing franchise … should I take an assignment of the lease or insist on a new Lease Agreement?

A: If the current rental rates are below market rates, take an assignment. However, if you sense that the market has softened, then negotiating a new deal can result in a rent reduction. Either way, your offer to purchase the business should be conditional upon your satisfaction with the lease terms and landlord consent to your assignment or tenancy. If the lease only has a few more years remaining, don’t assume that the landlord will automatically renew your lease. One client offered to purchase a national quick-service food court outlet then sent me in to negotiate the lease terms. We discovered that the landlord planned to relocate the entire food court within a few years – meaning the purchaser would be paying full price to buy the store but also required to build out a brand new store in a few years in the same mall. Wisely, my client decided to pass on the business opportunity.

It should come as little surprise that we, at The Lease Coach, answer plenty of questions! We thought we would share a few of the most-commonly asked questions here:


1) What does "NNN" mean?

"NNN" refers to the Triple Net Expenses in the property. Triple Net Expenses are also known as Operating Costs and include property tax, insurance, maintenance, etc. As a tenant, you will be required to pay Triple Net Expenses, proportionate to your amount of space leased. Therefore, if you lease 2% of retail space in a shopping centre, you will pay 2% of the mall's Triple Net Expenses.

2) What is the best and least expensive way to negotiate an early lease termination?

The simplest and most cost-effective means for you to terminate your lease early is by approaching your landlord now. Honestly explain to your landlord that your business is not doing as well as you had hoped. In this conversation, be careful to never blame the location or your landlord may get defensive). Many landlords will understand and try to re-lease the space now rather than later ... it is to their benefit to have a tenant who can pay rent rather than a tenant who cannot. Traditionally, there is no penalty for you to in this process.

3) What is a "bonded lease"?

A bonded lease, essentially provides security and insurance for a landlord. If you, as a tenant, do not pay your rent for any reason, the bonder covers the rental rates to the landlord. If you are considering this option, remember that this will eliminate the need to provide the landlord with a personal guarantee.

A day before FranchiseMama's world launch. I don't think I've been this excited since Christmas of '87 when I got my first mountain bike - if my wife is reading then switch Christmas of '87 with our wedding day. Speaking of my wife, you'll be happy to know that we are finally pregnant! That's right, you heard me, there is a little Moura on the way. So March is a time of celebration for our family and if you are looking to join FranchiseMama, March could be an exciting time for you too.

Starting your search for the right franchise opportunity is very exciting. In the early 90's, my family began our own search. We had just moved from Sao Paulo, Brazil, to Blaine, Minnesota. You know when you pour hot water in a cold glass and it cracks? That's what it felt like! We were so cold. But the climate change was only the beginning. My dad had enough of corporate America and he wanted his own family business. So dad attended a franchise show in Minneapolis and long story short, about a year later our family of 5 was running our very own restaurant franchise in Provo, Utah.

Working with my family was challenging and it had its trying moments. But it was also very rewarding. The business was ours. We opened and closed, hired and fired, made money, and ate a lot of sandwiches. We celebrated when we had high selling days and we put our heads together to increase the low selling days. We also laughed a lot with each other and at each other. We were very fortunate to have chosen a franchise system that was very supportive and dedicated to our success. I won't name the franchise because I want you to make your own decision.

Your decision. that's what FranchiseMama is all about. Listen, the franchise industry is working thank you very much, of course not all franchise systems are created equal, but it is a proven way to do business. The question is which franchise is right for you? I mean listen, your job is the second most important relationship in your life, the wrong decision can be... uh, the wrong decision. The good thing is, there is only one of you but there are literally thousands of franchise systems to choose from.

I invite you to take some time to do some soul searching, nothing crazy, just really think about what you want to do for the next 5, 10, 20, 30 years. Then, pull your socks up to your arm pits and make something happen! Because I'll tell ya, when you find the right business for you, its like finding that special someone who complements you just right. Jeff, Ou, and I and our staff absolutely love going to work (at least they better or else...) and you should too. The future is no place to place your better days (thanks for the quote Dave), and we invite you to begin your search today. Take your time, do your due diligence, read the darn UFOC's, and spend some time and money to make the right decision. Here at FranchiseMama we can connect you to some great Specialists who can help you navigate through your choices. Finally, attend a franchise show like the IFE show in DC, the banner is displayed right at the top of your screen. These franchise shows are so valuable and incredibly cheap to attend. And no, I don't get paid if you go, but if you do go, we get to meet and that's nice.

So if you have butterflies in your stomach, we understand, and we hope we can help you achieve your business ownership dreams. We still have a lot to talk about, so stick with us kiddo, you'll go far.

Remember, Mama loves you.

BY FRANMASTER, www.franmaster.com

While you are most likely aware of the franchised businesses which you frequent on a regular basis, you may not be conscious of the impact the franchise industry has on the U.S. economy as a whole. Because franchising as a business model is utilized in over 75 separate industries, it is easy for the aggregate value of franchising to be lost in each individual business segment.

When reviewed as a whole, franchising directly employs over eleven million people. In fact, only two sectors, retail and health care, play a larger part in keeping America growing. The impact of franchising on the economy is so great that the U.S. Census Bureau has added franchise questions to its 2007 Census of Business, an unprecedented move.

The International Franchise Association has just released its new Franchising Economic Impact Report, which can be found at: http://www.buildingopportunity.com. The IFAs Educational Foundation funded a study utilizing 2005 data (the latest information available) as a sequel to its ground-breaking 2004 study with the same name. Written by Pricewaterhouse Coopers, this report not only examines the direct impact of franchising (such as employees working for franchises), but the indirect impact as well, (those jobs that are created and supported by the existence of franchised businesses).

The statistics were amazing: franchising generates almost 21 million jobs and accounts for over 15 percent of the private-sector economic output. There were more than 900,000 franchised businesses in the U.S. in 2005, generating more than $2.31 trillion in total economic output.

The study looked at the two basic types of franchise models: business-format and product-distribution.

A business-format franchise is a strategy where the franchisor licenses a trademark and operating system to the franchisee. The franchisor is going to tell you what to do and how to do it. Industries where this type of franchise is seen include restaurants (fast food as well as full service), lodging, automotive, business, commercial, and residential services, real estate, and retail.

A product-distribution franchise is an opportunity where the franchisor gives you rights to sell a specific product so that the franchisee is responsible for presale and post-sale service to customers. Common examples are gas stations, automobile dealerships and beverage distributors.

Business-format franchises, the most common type, accounted for 773,436 establishments, 16,529,145 jobs and $478.4 billion payroll creating $1.7 trillion of economic output. This was more jobs than the entire construction sector.

Product-distribution franchises operated in 135,817 establishments providing 4,445,491 jobs and $182.5 billion in payroll producing $557.1 billion of economic output. Between direct and indirect job activity, franchising generates one out of every seven jobs in the private sector.

Franchising has been embraced across the country. With the exception of New York state, franchising provides employment for at least 10% of the private sector workforce, with the average being 15.3%.

The study was based on 2005 employment data and utilized five separate governmental and private sources to derive the reported information. In fact, franchising has been exceeding the growth rates in other sectors.

So, next time you are in your favorite local franchised business, take a look around. One in eleven businesses in America are franchises, and the number is still growing. Franchising keeps the American dream alive and well.

BY ZGURUS WWW.ZGURUS.COM

Greetings from Z Gurus and Welcome to Franchisemama.com

The answers to selecting the right franchise may be somewhere on this website. You are here because of your interest in franchising, and we know that you can use valuable advice from experts.

This blog feature is written by Z Gurus and designed to help you, the franchise buyer, promote critical thinking and help apply a rational, non-emotional approach when considering a franchise.

Don't be downsized! Join an industry that strives to upsize!

When you buy a franchise, you are most likely making a career change. Moreover, you are making a life change. Currently, you may or may not be employed, you may or may not have a home, and you may or may not have assets. Today's national financial condition may make purchasing a business prohibitive for some. You need to examine your eligibility early in the process. Z Gurus, for example helps our clients evaluate their financial potential for franchise ownership and then make proper recommendations.

At Z Gurus, we completely understand franchising; both from a Franchisor's perspective as well as a Franchisee's perspective.

* We have been franchisees, and also have been franchisors.
* We know the process from both sides of the table.
* We know the emotional and mental stresses you will encounter as a buyer.
* We know the motivation of the franchisors.

Franchise Mantras to remember:
* Franchising is not right for everyone.
* Every brand and business model is not right for everyone.
* The Right Person + The Right Concept = Success and Happiness

Keep in mind that as you evaluate the franchisor, the franchisor is evaluating you! You are joining them. You are going to display their brand and their logo. You will, in fact, be their representative. You will be interacting with other franchise owners, business suppliers and vendors, and the public as a representative of that brand and an owner of your own business. They are giving you a right to join them and their network by accepting your application to do so. This opportunity is an AWARD.

Think of it as a job interview. Having a spirited conversation is acceptable for a franchisor. Throwing insults jabs, and demands to the franchisor may, however, remove you from the interest list. So maintain professionalism when interfacing with the franchisor. This will set you apart from the other candidates and put you on the top of their agenda.

The franchisor is going to give serious consideration to the approach of a franchise buyer. As a franchisor, we experienced many people that had the financial capability and drive to succeed, yet we did not offer them our franchise ownership opportunity.

Why?

Simple the buyer was aggressive and offended the franchisor. Remember, the franchise usually has developed a culture and are trying to select franchise owners that align with their ideas, ethics, and/or philosophies.

When you buy a franchise, you are most likely making a career change. Moreover, you are making a life change. Currently, you may or may not be employed, you may or may not have a home, and you may or may not have assets. Today's national financial condition may make purchasing a business prohibitive for some. You need to examine your eligibility early in the process. Z Gurus, for example, helps our clients evaluate their financial potential for franchise ownership and then make proper recommendations.

Don't be downsized! Join an industry that strives to upsize!

Franchising gives you the chance to be your own boss and go out on your own, but not alone

Here are some great questions to ask yourself before you proceed:

* Ask yourself if you can work without a boss. Having a superior directing, managing, and guiding you everyday is necessary for many.
* Ask yourself if you have the mental, physical, and financial capacity to be your own boss.
* Ask yourself if you can be wholly committed to 4+ weeks of research on the franchise brand that you are evaluating. Investing your time is much cheaper than investing tens of thousands of dollars!
* Ask yourself if your family can and WILL support this life change.
* Ask yourself if you can do this!
* Above all, ask yourself: IS THIS A BUSINESS I AM PASSIONATE ABOUT?

Next: So you are ready to investigate a franchise. Now What?

Z Gurus is a Franchise outsource and consulting firm headed up by Mike Watorski and Manish Adhiya. They have a combined 17+ years experience in franchising as franchisees and franchisors and are located in Carlsbad, California. Their telephone number is 760-438-0202. Visit WWW.ZGURUS.COM

By: Dale Willerton , The Lease Coach ® www.TheLeaseCoach.com

A good business in a poor location will become a poor business!

The number one reason for business failure or negative performance is a poor location. A poor location ultimately results from poor site selection. Consider that identical stores from the same chain or even similar stores within the same industry will vary as much as 200% in volume of sales annually; the primary difference would be location. Other factors include store size, marketing budgets, management and so on, but these are secondary to the importance of location.

Essentially there are three types of locations: Profitable, Break-even and Go-broke:

* A truly profitable location will make money and the business will appreciate in value.

* A break-even location will pay the owner a small salary and pay the rent but not much more.

* The go-broke location demands the owner continually pour more money in to survive. The example that comes to mind lasted less than three months from opening to closing for one unfortunate tenant. Despite my warnings that this was a go-broke location, the business owners spent over $80,000 into their store setup and, by the second month of operation. couldn't pay their rent. Usually a go-broke location will not only steal your capital but put you into personal bankruptcy, after you've maxxed out your credit and second-mortgaged your home.

If you thought site selection was all about Location , Location , Location you're right intellectually. However, when tenants are involved in the site selection process, good old common sense often goes out the window. Consider for a moment that site selection is not a science; it's an art, part research, part luck, part timing and many other ingredients combined. For example, is the best time to do site selection is before or after you commit yourself to opening a business? If it sounds too obvious don't be fooled; most tenants do their site selection after , not before , committing themselves to a business opportunity. One such case involved a retailer who began receiving seasonal spring inventory for a new store but he hadn't finished picking the location for the store or negotiating the terms yet. Consequently, this entrepreneur compromised on the location and on the best deal he could have made just to finally get open.

In my book, NEGOTIATE YOUR COMMERCIAL LEASE, I've dedicated an entire chapter to site selection. Here are some topical tips from the expert:

1. Allow enough time so that you're not making decisions under pressure. Typically, for a new business you should start the site selection process six months in advance of when you wish to open. If you find a really hot location, usually the landlord will hold it for you for a few months. However, if the process takes longer you may need several months to finalize the Offer to Lease, review the formal lease documents and build out the store.

2. Don't let a realtor/agent (who represents landlords) show you space all over town. In this industry, there are agents who list the property and other agents who lease the property; however, there is only one commission paid by the landlord. When listing agents both list and lease the property, they will gain as much commission as possible. The commission pie, however, is only so big. When an outside agent introduces you as a potential tenant, the listing agent faces accepting less of the landlord's commission therefore, he/she becomes considerably less motivated to do the deal with you preferring to find his/her own tenant to lease the space , thereby earning all of the commission.

Additionally, doing this will also undermine your negotiating power since the real estate agent will know how you feel about every location. A realtor may be helpful in pointing out a location you were unaware of but remember he/she is working for the landlord who will ultimately pay a commission. While an agent's advice may sound sincere, it may be sincerely wrong.

3. Make your leasing inquiry by calling the For Lease number on the property or on the leasing agent's sign, after you have finished driving around doing site selection. This way you will meet and negotiate with, or through, the listing agent directly. View prospective sites from worst to best. You will become better at handling yourself and by the time you get to the property you like the most you ask better questions and gain more control of the leasing process.

4. Don't telegraph your intentions by giving buying signals. I recommend that you have the leasing representative fax or send you some preliminary information in advance before you agree to view the space. During the viewing, stifle the urge to think out loud; subtle comments to a partner or spouse overheard by the landlord's leasing representative or property manager can work against you. For example, “This could be my office or “We'll need to change the carpeting will indicate your interest in the property and will work against you when it comes to negotiating the terms. If you're asked how much you've budgeted for rent payments, be vague. Not every question asked deserves an answer, not yet anyway.

5. Never make the first Offer to Lease. The landlord's leasing representative, upon your request, will prepare a lease proposal or an Offer to Lease containing suggested Terms and Conditions for your tenancy. While this is not a site selection tip per se, it is an integral part of the site selection process. When you receive an Offer to Lease first, you will then be nicely positioned to counteroffer or negotiate the proposal.

6. Don't negotiate on only one location at a time. You can - and should - create competition for your tenancy; you can do so by obtaining lease proposals on several different properties simultaneously. Avoid the tendency to negotiate on one deal at a time. Negotiating on multiple locations at the same time may be the single most effective tool you have for creating the best deal. While one landlord may offer you three months of free rent, the next may offer four months and so on. By playing one landlord's lease proposal against another, you will be negotiating from a position of strength.

7. Do your homework before you start. Get out a map and mark the boundaries of where you're willing to open your business. Use the Yellow Pages to pinpoint locations of competitors and complimentary tenants that might enhance your business. Talk with existing tenants in buildings you've selected as prospective sites doing this can provide a wealth of information. Remember that good preparation is an excellent substitute for novice negotiating skills.


If you find yourself trying to decide between a better location at a higher rent versus a lesser location for a lower rent my advice is go for the better location. When I'm consulting to tenants and doing site selection my job isn't to find the cheapest location , it's to select a site that will help the tenant maximize sales. Remember that you want to be profitable , not break-even. It is better to have negotiated poor lease terms on a good location than a great deal on the wrong location.

When doing site selection, consider that landlords sometimes prefer to lease their worst space first and save the best for last. Usually, the individual unit or location you lease within a shopping centre or strip mall is more important than the mall itself or at least equally important. Lease rates can vary two to three times within the same building depending on the following: desirability and demand for a particular premises - the time of year , visibility , walk-by or drive-by traffic flow , accessibility , frontage , the shape of the space , the quality of neighboring tenants , anchor tenants , and whether or not you will be operating as an independent or a national chain name. While you don't always get what you pay for in leasing commercial space, you don't normally get more than you pay for either.

If you are aware of a great building without vacancies, don't despair. By contacting the property manager or leasing representative you may discover that another tenant's lease is about to expire; the tenant may therefore close out or move. Perhaps a tenant will be leasing month-to-month while the landlord hopes to find a permanent tenant like you. Don't rule out the hot properties just because there are no vacancies. Every building has tenant turnover sooner or later. Frequently when my client has wanted to open in a less desirable location (because nothing else is available) I encourage him/her to wait. We stay in contact with the landlord and invariably a better location usually becomes available within a few months. Considering that you will be leasing that location for a very long time it's worth the wait.

For some business operations location is absolutely critical and for others it may be less important. If your business is not location-dependent then you should have the proverbial upper hand in your negotiations. This applies more so to office or industrial type tenants.

If you already own a business but are considering relocating upon expiry of your current lease, you should start the site selection process at least nine months in advance or more. The theory is that if you can't get a good lease renewal you need enough time to select alternative sites and negotiate a new lease elsewhere. Good luck with your site selection.

This is the first article in a series of columns on Leasing. In forthcoming write-ups, I will discuss learning from other tenant's mistakes, increasing your bargaining power and choosing the proper lease term (or length). Please send any topic suggestions, stories and comments to Rick Lauber in our Marketing Department at 1-800-738-9202.




Dale Willerton is Founder of The Lease Coach®, a network of Certified Commercial Lease Consultants who work exclusively for tenants and franchisees across the US and Canada. For more information, e-mail DaleWillerton@TheLeaseCoach.com, call 1 (800) 738-9202 or visit us at www.TheLeaseCoach.com.

BY ANNE BARR, www.franchiseopportunityspecialist.com


Naturally, most Entrepreneurs seek an opportunity that allows them to build a wonderful enterprise appealing to the masses with the most fabulous can't live without it product or service.

Obviously, this enterprise could be a start-up, existing business or a franchise. Start-ups are of interest because you can do it your way and have that control we all desire. However, the Entrepreneur typically doesn't have the patience to put all the applications of the idea into action. As the idea materializes, the details and application steps sometimes get lost in the grandiose plan and future pacing of the Entrepreneur.

Existing business acquisitions can often provide the Entrepreneur with a platform upon which to build his/her empire. Purchasing a stream of income can jumpstart the process and sometimes accelerate the growth curve. Finding the right one can be tedious, time consuming and difficult to negotiate. The occasional, by the way surprises can be jolting and cause severe headaches!

Entrepreneurs wish to control their own destiny. Captain their own ship. Is this Utopia?
Perhaps, but more accurately the drive to create something that is useful and/or desired by the consumer. To produce a reasonable and expected ROI and to exceed predicted growth (multiple locations, linear growth, new market channels, diversification of product or service)

The Franchise Model.
Some Entrepreneurs prefer to form their own business model. Others gravitate to a proven concept like the business format franchise model. Particularly for the entrepreneur who has never owned a business before.the franchise model provides a stepping stone to achieving the golden ring. Master Franchises are a good example.
Now here's a REAL entrepreneur's dream. Master Franchises have been touted as the “Best Kept Secret in Franchising Today.

The Master franchise concept allows the Entrepreneur to:
* Have the largest territory offered by franchisors
* Create expanded income generation
* Build equity in the business at a faster pace
* Act as a consultant to the franchisees in your territory, helping them to succeed

So, why aren't more franchisors using this concept as a way to expand more expediently?
* Because the concept is relatively new
* Because some franchise attorneys do not favor this model
* Franchisor is not willing to share the fees and royalties

The Business Format Franchise model is more popular than ever. Considering there are 5,000 franchises spanning approximately 80 industries, it is safe to say the franchise industry is exploding with growth. Franchise fever is definitely prevalent and catching.

Many of my clients are casualties of corporate mergers. Some find they are overqualified or too old for rehire, especially when corporate America prefers the recent college grad. Forget about experience and knowledge gained from years of product knowledge, management and leadership..it's all about money $.

Yes, there are many Entrepreneurs lurking in the carnage of today's Mergers and Acquisitions battlefields. So what are these guys and gals doing in their next career path?
You'd be surprised how many are considering business ownership. It beats the rejection and demoralization of the job hunt for those 45 and older.

Perhaps your next career path is a business format franchise. Area Development or Master Franchise anyone?

BY ANNE BARR www.franchiseopportunityspecialist.com

What is it that attracts more and more people to become business owners? What happens to bring that Entrepreneurial spirit to the forefront?

Not only do Entrepreneurs embody the American Dream, they drive our economy and our future.

Todays corporate mergers create additional opportunities for many to take the “big step into business ownership. More and more talented individuals in the 40-60 age group are finding great difficulty in their search to replace the position and income they enjoyed in their previous employment. What are these “breadwinners to do when they are too young to retire and many have one or more children in college? A high percentage will seriously look into business ownership.

As increasing numbers seriously explore business ownership, assuming they are qualified financially, we find the largest roadblock to be.RISK.

R Research = Reward
I - Insecurity with volatile job market
S - Success is Not Guaranteed
K - Knowledge and Self Confidence to build an asset

Obviously, there are no guarantees. Of course, running a business takes talent and skill.
Reducing the risk is accomplished by research and due diligence. As with any major decision in life, an individual will at first emotionally buy the business, then justify with the facts. The fear factor is rationalized by the confidence a person has in his/her transferable skills and the vision to build somethingan asset to pass on to the next generation, put a manager in place and back away when the time is right, or even sell when they choose.

Its all about timing. I met many of my clients over a year ago. Sometimes people will interview for jobs and look into business ownership at the same time. You can't give 100% effort by going down two paths at once. Occasionally, a client will take a position that is less than preferred, because the frustration of the search has taken its toll. However, when they are downsized AGAIN, they decide the timing is right to end the job insecurity by moving forward into business ownership. No glass ceilings, no corporate agendas, no corporate politics simply more independence and a chance to control their destiny a chance to build something by working for “self rather than someone else.

The American Dream is it in your future?