FBR Emerging Franchises 2015

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SPECIAL REPORT: Emerging Franchises Left: A YESCO technician works on fixing a sign. Right: John Michielini, owner of a 101 Mobility franchise in New York, is honored to serve his community. Once you decide you are ready to sign on the dotted line and get started in franchising, you will most likely have two major hurdles to overcome. The first will be finding the funds necessary to purchase the franchise. The median investment range for the emerging brands we surveyed was $72,500 to $147,000, but many franchise concepts require much more startup capital. How will you get the money? Friends and relatives, home mortgages, veterans’ loans, bank loans, Small Business Association loans and finance companies are all sources of funds and come with different risks. It is crucial that you understand the possible implications of each option. Our Franchise Buyer’s Toolkit, which is available at www.FranchiseBusinessReview.com/ Toolkit, provides a detailed franchise funding walkthrough as well as other tools that will help you successfully navigate a franchise purchase. We also offer a full suite of financing services to ensure you get the capital you need at www.fbr50.com/franchise-financingoptions/. “There are ample funding options available to potential franchisees who have a good credit profile. The challenge is that it isn’t always easy and often takes time to navigate the lending process,” says Midgley. “In our case, franchisees we have invited to join our system can access our own vendor backed Crunch Fitness Franchise funding pool, which consists of tens of millions of dollars. It enables them to quickly obtain financing at some of the most aggressive rates and terms in the market.” The second will be deciphering the overwhelming amount of paperwork ranging from the FDD, a potential lease, and the franchise agreement. “The biggest adjustment for many people who have never been in franchising before is simply signing the franchise agreement. Most franchisors don’t allow the agreement to be modified and this can make a franchisee uncomfortable,” says Midgley. “In addition a lot of franchisors have 700 to 1,000 page FDDs that prospective franchisee should read and understand before they sign an agreement.” Many franchisees engage the services of professionals to help them understand and get through the paperwork that stands between them and franchise ownership. “Getting to opening was a long process,” says The Exercise Coach franchisee, Suazo. “I hired a franchise lawyer to help me review, understand and ultimately help me negotiate my franchise agreement. I also hired a real estate attorney to review the lease agreement. Not having owned a business before, my feeling was that paying lawyers thousands of dollars was well worth it and mitigated my risk.” Once you decide to open a franchise, it’s important that you, your family, and your friends know it will require most of your time and energy. “You’ll have to commit yourself 100% to the success of your business, especially in the first two years. This perseverance and momentum will allow you to build something great over the long term,” says Scudamore of You Move Me. Some franchise concepts require more time than others. “Until you get to where you are paying your bills, you’ll probably be working 60 to 70 hours or more a week,” says Wasem of Taziki’s Mediterranean Cafe. “Once you can pay them, you can go down to 50 hours a week.” “The Exercise Coach’s corporate office recommends that its corporate and franchisee owned locations should close on all major holidays and every Saturday afternoon through Sunday. This enables my wife and I, our staff, and our clients to have some time to relax,” says Suazo. SURPRISING REWARDS While income potential of a franchise business may be your biggest concern, many franchise systems offer non-monetary rewards as well. “I enjoy hearing the amazing stories our clients share,” says FirstLight HomeCare franchisee, Feldman. “It is also very rewarding to help them and their families by enabling them to stay in their homes and feel like they are not alone.“ “The flexibility is great. I don’t have to be in the office all the time because I have a 10 | For more information on this report, visit: www.FranchiseBusinessReview.com
SPECIAL REPORT: Emerging Franchises full time office manager and technician,” says 101 Mobility franchisee, Michielini. “I can work from home and make my kids’ games.” His advice to franchisees is that investing in staff helps you grow your business faster. Pinot’s Palette franchisee, Judy Alewel, says “It’s very rewarding to see our guests leaving with big smiles on their faces because they had a phenomenal experience.” In the end, investing in the right franchise could turn out to be the best business decision you’ve ever made. “I know that every hour I work is for my family’s future. It’s exciting,” says Suazo. Visit www.FranchiseBusiness Review.com to learn more about the top performing emerging franchises featured in this report, including seventeen that made our Top Emerging Franchises list for the first time— Apex Fun Run, 101 Mobility, BlueGrace, Executive Image, Family Fare, Fit Body Boot Camp, Forever Yogurt, Image One, Live 2 B Healthy, MODE, NYS Collection, Payroll Vault, Supporting Strategies, Teriyaki Madness, The Mosquito Authority, Trumi and Your Pie. WARNING: BUYING THE WRONG FRANCHISE CAN SERIOUSLY DAMAGE YOUR FINANCIAL HEALTH. When you invest in a franchise, you have only one chance to make the RIGHT choice — one that will give you and your family a bright future. Franchise Business Review can help. Our Franchise Buyer’s Toolkit provides all the resources you need to make an informed franchise investment. Learn the ins and outs of buying a franchise, get tips from the pros, and access insider insights that you won’t find anywhere else. Learn more at FranchiseBusinessReview.com/Toolkit For more information on this report, visit: www.FranchiseBusinessReview.com | 11
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FBR Emerging Franchises 2015

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