Considering a Franchise Interested in a Franchise?
Consider a franchise Finding a franchised business Check out the franchise opportunity Evaluate disclosure and other legal requirements Is a franchised business for you? Area franchise Single-unit Master Advantages of Franchising
Enables you to compete through the use of a well-known trademark or trade name Franchisor may provide you with assistance in such areas as site selection, equipment purchasing, national advertising, bookkeeping, the acquisition of supplies and materials, business counseling and employee training Reduced risk of failure May be able to take advantage of large-scale, centralized buying May have access to special financing and credit arrangements The opportunity to acquire a proven system that has already been developed, tested and refined Disadvantages of Franchising
The high degree of control which franchisors exercise over their franchisees Contractually required to report regularly to the franchisor and subject to frequent inspection and constant supervision The cost of the services provided to you by the franchisor is based on your total sales revenue, not your profitability Franchisor may add a mark-up to the supplies and equipment you are required to buy from them, thereby increasing your operating costs Disadvantages of Franchising
Must pay the franchisor an initial franchise fee as well as periodic royalty payments and advertising contributions The benefits available through franchising may not always materialize Termination policies of many franchisors give franchisees little or no security in many cases Franchise Selection Open WWW.CFA.CA
Select a franchise to purchase (Value 1) How much is the Franchise Fee? (Value 1) How much capital is required to open the Franchise? (Value 1) Why is the Franchise a good fit for you? (Value 2) Canadian Franchise Association Members
Types of Franchises Product Distribution Arrangements Business Format
Single-unit franchise Area franchise Master franchise Business Format Franchises Top Ten Franchises in 2015 The results of Entrepreneur's 36th annual Franchise 500 reveal that franchises of all stripes are continuing to rapidly expand, with these top 10 franchises leading the pack. Here, we highlight their strategies for success and goals for the upcoming year. The Top 10 Franchise for 2015 Hampton Hotels
2,000 hotels in 16 Countries It's aiming for 400 hotels over the next few years in China. Culture may not be the first thing you consider when choosing a hotel. But at Hampton Hotels, a culture of hospitality, aka Hamptonality, The Top 10 Franchise for 2015 2. Anytime Fitness 2 Million members
3,000 Locations in 50 states and 20 counties. 2014 revenues of $900Million The Top 10 Franchise for 2015 3. Subway
42, 920 Locations in 107 Countries Moving into non-traditional locations such as hospitals New $6.00 menu The Top 10 Franchise for 2015 4. Jack in the Box
80% of their 2,250 locations are franchisee owned Menu features tacos to egg rolls 2014 saw a new breakfast menu launch The Top 10 Franchise for 2015 5 . SuperCuts 2,500 Locations
most of the new franchisees dont have salon backgrounds but are professionals in the corporate world who were attracted to Supercuts because of its strong fundamentals The Top 10 Franchise for 2015 6. Jimmy Johns gourmet Sandwiches
2,100 Locations Its 8-inch sandwiches are made to order in just seconds. But most impressiveis that 80 percent ofthe companys growth is coming from existing franchisees who continue to invest. The Top 10 Franchise for 2015 7. ServPro 1,700 Franchise Units
Here to Help Connection, a website that collects real-time data from DryBook to let homeowners know the projected time for their restoration. The Top 10 Franchise for 2015 8. Dennys 1,710 Locations
At a new upscale location in New Yorks Financial District, the first in Manhattan, it offered the $300 Grand Cru Slam: Grand Slam breakfast for two served with a bottle of Dom Prignon. The Top 10 Franchise for 2015 9. Pizza Hut 15% of US Pizza Market
Pizza Hut also launched a line of Skinny Slices, each under 250 calories. The Top 10 Franchise for 2015 10. 7-Eleven 54,500 Locations world wide
In 2014, 330 units opened their doors in the U.S. and Canada, and a similar number will open this year. Articles in a Typical Franchise Agreement
The full initial costs and what they cover Use of the franchisors trademarks by the franchisee Licensing fees Land purchase or lease requirements Building construction or renovation requirements Equipment needs Initial training provided Starting inventory requirements Promotional fees or allowances Use of operations manual Royalties payable Articles in a Typical Franchise Agreement
(Continued) Other payments that must be made to the franchisor Ongoing training requirements Cooperative advertising fees Insurance requirements Interest charges on financing Requirements regarding purchasing supplies from the franchisor and prices Restrictions that apply to competition with other franchisees Terms covering termination, renewal rights, sale of the franchise and similar topics A Sampling of Canadian Franchisors
Boston Pizza $45,0007% % $ ,000 Dollar Rent-a-Car $5-100,0008%-- $60-250,000 Great Canadian Dollar Store $15,0004%--$100,000 Molly Maid $14,0006%--$14,000 plus $4,000 W.C. Dairy Queen Canada $35,0004%--$450-1,200,000 We Care Home Health Services251$40,0005%2%$100,000 McDonalds Restaurants of Canada $45, %--$ ,000 (including rent, service fees and advertising) Midas Muffler $25,0005%5%$225,000 Dominos Pizza $25, %4%$150,000 Second Cup Coffee Co $25,0009%2%$ ,000 Tim Hortons $50,0003%--$ ,000 Shred-It $55,0005%1.5%$350,000 NumberNumber ofApproximate of OwnedFranchiseesInvestmentUnits/DealersInitial FeeRoyaltyAdvertisingRequired Source: Adapted from The 2004 Franchise Annual, Info Franchise News Inc., 2004 What Does It Cost to Open a Franchise? Joeys Only Seafood Restaurant
Franchise fee Opening promotion fee Leasehold improvements Smallwares Furniture, fixtures and kitchen equipment Miscellaneous Food and supplies TJ Foods opening supplies Training and pre-opening expenses Deposits Total Estimated Cost to Open $25,000 $5,000 $90 - $130,000 $9,000 $105 - $120,000 $6,000 $11,000 $4 - $10,000 $277,000 - $338,000 Future Trends in Franchising
Increasing emphasis on senior care Child care and education Technical support Spa Property Management Fitness Restaurants