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FROM EMPLOYMENT TO
EMPOWERMENT 3 - Part 1 By Gerri Sefi
It’s crucial that your journey to financial and lifestyle freedom include every option in the business
environment. Have you considered investing in a franchise? Here are some points to consider:
Franchising is often referred to as a turn-key operation, or cookie cutter business methodology - a McDonald’s
hamburger looks and tastes the same from Toronto to Sydney. Franchising is not an industry; rather it is a
method of distribution initiated by a company wishing to expand by licensing business partners to reproduce
their system. There’s a reason that a Tim Horton’s coffee tastes the same at every location!
When starting one’s own business, cost is very important but it should not be the only factor to consider. One
of the most important challenges will be to minimize the time frame for the business to ramp up, start
producing the product or services, attract clients and, of course, commence cash flow.
The franchisor has:
a. Completed and tested the blueprint for the business.
b. A wealth of experience in what has, and what has not, worked. It has already tried, tested,
accepted or rejected every aspect of the business.
c. Current information on demographics, competition, market strategies and emerging markets.
d. Made a commitment to profitability and partners with franchisees to increase revenues. Their future is
your future i.e. win-win.
Rather than having to go through creation, labour and delivery of the product/service, the franchisee’s focus is
to learn the system, build the business plan and implement - all of which is conducted under the guidance and
watchful eye of the development team.
What are the benefits to buying one?
a. A proven method: the franchisor has already developed a model that has been successful for others.
Guesswork is eliminated and risk is minimized.
b. Name Recognition – consumers prefer familiarity and consistency. For example, when you last stopped
for a coffee in a strange town and ordered a coffee at Tim Horton’s, the beverage will be exactly the
same as your local brew. The only difference may be cost as that may local market driven.
c. Strength in Numbers – you are in business FOR yourself, not BY yourself, By having a network of
non-completing other franchisees, you can exchange marketing ideas and receive quick feedback to
resolve challenges.
d. Improved Buying Power – simple economics – the more you buy, the cheaper the price. Having
multiple franchisees buying the same goods will significantly reduce the price.
e. Access to capital – it is possible you will need start-up capital. Many franchisors have a financing
program already in place for qualified applicants. Or they have financing arrangements with lenders
based on the strength of their brand.
How much money do you need to buy a franchise on average?
There are 4 important numbers to consider:
a. The Franchise Fee – this is a one-time payment to the franchisor when the agreement is signed and
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