What is a Franchise?

• Small business owner with large corporation connection– Owner must follow rules and guidelines in place

by big company– Owner must pay big company up-front one-time

fee AND ongoing royalty fee

Franchise vs. Chain

• Franchise: owned by individual, but connected to larger corporation– Fast food restaurants, hotels, gas stations, etc.

• Chain: a company that has branches managed by individuals, as an employee of larger corporation. – Think TGI Friday’s, Walmart, Barnes N Noble, etc.

Why Franchise?

• High success rate• Help with start up and beyond• Buying power• Name recognition• Profits

Why Not Franchise?

• Rules• Ongoing fees• Poor support, strict rules• Start-up cost

How do I get one?

• Application– Experience, background, and finances scrutinized

• Interview – Meet with Franchisor

• Contract– You’d need a lawyer’s help!

Top Ten Of

Did you know: This year Hampton is launching in the U.K., Mexico, India, Romania and Trinidad. Number of franchises: 1,753Franchising since: 19842010 rank: #4 Startup costs: $3,716,000 - $13,148,800

#1

• Did you know: In 2010, ampm launched a "secret menu" of snack bar recipes available only via Facebook.Number of franchises: 3,177Franchising since: 19792010 rank: #10 Startup costs: $1,786,929 - $7,596,688

#2

• Did you know: This year GPS enthusiasts calculated the furthest you could get from a McDonald's in the Lower 48: 115 miles away in a deserted area of northwest Nevada. Number of franchises: 26,209Franchising since: 19552010 rank: #2Startup costs: $1,057,200 - $1,885,000

#3

• Did you know: A new 7-11 opens every 6.5 hours

• Number of franchises: 37,039Franchising since: 19642010 rank: #3Startup costs: $30,800 - $604,500

#4

• Did you know: A Supercuts franchisee in Houston set a new Guinness world record in 2009 by giving 349 haircuts in 24 hours. Number of franchises: 1,035Franchising since: 19792010 rank: #5Startup costs: $112,550 - $243,200

#5

• Did you know: In recent years, Days Inn has opened hotels in China, the U.K., Costa Rica and Russia. Number of franchises: 1,857Franchising since: 19722010 rank: #21Startup costs: $192,291 - $6,479,764

#6

• Did you know: Vanguard has benefited from the recession as companies have scrapped their janitorial department to cut costs. Number of franchises: 1,847Franchising since: 1984 2010 rank: #30Startup costs: $8,200 - $38,100

#7

• Did you know: After 40 years in business, Servpro opened its first international location in 2010.

• Number of franchises: 1,526Franchising since: 19692010 rank: #9Startup costs: $127,300 - $174,700

#8

• Did you know: Subway claims there are more than 2 million sandwich varieties available in their storesNumber of franchises: 33,188Franchising since: 1974 2010 rank: #1Startup costs: $84,300 - $258,300

#9

• Did you know: Denny's started out in 1953 as Danny's Donuts, becoming Denny's in 1959 Number of franchises: 1,374Franchising since: 19632010 rank: #1Startup costs: $1,125,609 - $2,396,419

#10