Table of Contents
Foreword John Leonesio, Founder of Massage Envy xiii
Preface xvii
Notes for the Reader xviii
Introduction xxi
Part 1 Exploring Franchising
Chapter 1 What Is Franchising? 3
How It Works 3
The Federal Definition 4
What It Means to Be a Franchisor 7
Further Complications: State Definitions 8
The, Bottom Line: If It Looks Like a Duck 10
Chapter 2 Advantage and Disadvantages of Franchising 11
The Advantages of Franchising 12
The Disadvantages of Franchising 22
The Bottom Line: Franchising Is Not Right for Everyone 29
Chapter 3 Is Your Business Franchisable? 31
Ts Your Business Marketable? 32
Is Your Business "Cloneable"? 36
The Acid Test: Return on Investment 39
Other Factors Affecting Success 45
Erecting Barriers to Entry and Planning for Change 47
The Bottom Line: Franchisee Success Dictates Your Success 48
Chapter 4 Is Franchising Right for You? 51
Defining Personal Goals 51
Deciding on Direction: An Example 53
Evaluating Risk 56
Is Franchising Right for You? 62
The Value of Opening a Second Operating Unit 64
Franchise or Corporate-Should You Do Both? 66
"What's the Magic Number?" 67
The Bottom Line: The Answer Is Not in the Stars 68
Chapter 5 Alternatives to the Franchise Structure 69
Company-Owned Operations 69
Business Opportunities or Licensing-The "No Name" Options 70
Trademark Licenses-The "No Support and No Control" Option 72
The "No Fee" Options 73
Franchise Exemptions-The Nonfranchise Franchise 76
More Than One Size Can Fit All-Combination Structures 77
Combining Growth Strategies 77
Never Decide to Franchise 79
The Bottom Line: Let Your Goals (Not the Law) Drive Your Strategy 82
Part 2 Developing Your Franchise Company
Chapter 6 Strategy for "Growth on Steroids" 85
The Tools You Will Need to Compete 86
Developing Your Franchise Plan 86
What to Do When Your Goals Exceed Your Reach 119
The Bottom Line: "Me Too" Is Not a Plan; It Is a Recipe for Disaster 120
Chapter 7 Getting Legal 123
The Franchise Disclosure Document 124
State Franchise Laws 129
Obtaining Your Trademark 130
Protecting Your Intellectual Property 132
Legal Risk 133
Finding the Right Attorney 141
Unauthorized Practice of Law 142
The Bottom Line: The Legal Stuff Sounds Scary But Really Isn't 143
Chapter 8 Controlling Quality 145
The Quality Control Myth 145
The Pillars of Quality Control 147
The Franchise Operations Manual 150
Training Your Franchisees 156
Startup Assistance 165
Ongoing Support 167
The Bottom Line: Make Your Franchisees Successful 173
Chapter 9 Franchise Marketing-Your Unique Message 175
The Present Value of a Franchise (PVF) 175
The Motive Is the Message 177
Start with Your Story 183
Know Your Competition 188
Delivering the Message 192
The Bottom Line: Sell Them on What Makes You You 199
Part 3 Building Your Franchise Empire
Chapter 10 Franchise Lead Generation 203
Budget: Let Speed of Growth Be Your Guide 204
Geographic Markets for Expansion 205
Mix and Distribution of Corporate Locations 208
Narrowing Your Market 210
The Marketing Funnel 210
Timing 213
Media Mix and the Allocation of Scarce Resources 216
The Importance of an Integrated Approach 238
Measuring Results 239
The Bottom Line: Marketing Done Right Yields Predictable Results 241
Chapter 11 Selling Franchises 243
A Sale Like No Other 244
Who Is Your Buyer? 245
The Franchise Sales Process 245
Just Say No-The Hardest Job in Franchising 247
Qualifying Prospects: The Award 249
The First Call: Knowing Your A-B-Cs 259
Stalking vs. Calling: Frequency of Follow-Up 262
Eating the Elephant: Goals and Advances 263
"Selling" Discovery Day 264
The Salesperson's Best Friend: Objections 267
Positioning vs. Competitors 269
Financial Performance Representations in the Sales Process 271
Validation: Getting Your Franchisees Involved 273
Don't Ask the Internet to Do Your Sales Job 276
Franchise Sales Approaches 276
The Bottom Line: It's a Numbers Game 281
Chapter 12 The Franchise-Frenchisor Relationship 283
Sources of Conflict in the Franchise Relationship 284
The Importance of Franchisee Success 285
The Hockey Stick Effect 285
Be a Good Parent 287
Effective Communication Is Key 288
Using Franchise Advisory Councils 290
Caring for Top-Performing Franchisees 292
Trust, But Verify 292
Making Themselves Heard 293
The Bottom Line: Lock the Contract in a Drawer 294
Chapter 13 Putting It All Together 295
DIY Franchising 295
Why Hire a Consultant? 298
Choosing Your Consultant 299
The Need for Expert Franchise Legal Counsel 304
Building Your Team 309
Your Time Commitment When Launching a Franchise 310
Outsourcing 312
Choosing Your Team: Bazooka or Peashooter 313
Aggressiveness Dictates Cost 314
Five Buckets for Franchise Success 315
The Bottom Line: You Are Entering a New Business 319
Chapter 14 Taking the Leap 321
Glossary 323
About the Author 325
Index 329