When asked to name the first five franchises that come to mind, most people will name business-to-consumer franchises
Tallahassee, FL - When entrepreneurs are considering franchise ownership, many think of business to consumer franchises such as restaurant or mailbox type franchises. When Rick Bisio was recently interviewed, he explained the difference between Business to Consumer (B2C) and Business to Business (B2B) Franchises. Rick said, "There is another whole world out there! Business to business franchises is among the fastest growing sectors, offering services to businesses instead of individual consumers."
When asked how a business services another business, rather than consumers, Rick explained, "They provide products and services from temporary personnel placement to commercial window cleaning. B2B franchises include sign companies, computer support, business coaching, printing, marketing services, logo apparel and much more."
The next question that came up was about the benefits of B2B franchises as opposed to B2C franchises. Rick was ready for this one as he explained, "B2B franchises often need less physical infrastructure than B2C franchises. They are generally scalable and many B2B owners appreciate that the business is generally open Monday through Friday, during traditional business hours. A B2B franchise could be less pricy to get into and may have lower operating expenses. Overhead is often lower and marketing is more targeted, which is also less expensive than marketing to the masses. Other ways B2B franchises save on overhead is the amount they pay for rent. One can rent office space rather than retail space which can be quite expensive. Many B2B franchises are even run from one's home"
This is all good, now for the question of disadvantages of B2B franchises; is there a downside? Rick said, "There can be disadvantages if you do not have a solid business background. You must be able to work effectively with business people who tend to be busy and to the point. B2B franchises tend to work with a smaller number of large customers, rather than a large number of individual consumers. Therefore, the loss of one customer can make a large dent in your top line. The competition tends to be sophisticated; therefore you need to be at the top of your game."
The interview concluded with Rick's closing remark, "If you possess strong business experience and are one of the scores of people wanting to take the next step in franchise ownership, don't overlook B2B! It could bring you enjoyment, monetary rewards, and some weekends off!
Rick Bisio is the owner of FranChoice Consulting and the author of the book, The Educated Franchisee. To learn more about how to be successful in franchise ownership, go to http://www.educatedfranchisee.com
Contact:
Rick Bisio
FranChoice Consulting
(941) 778 4660 PH
(941) 778 4670 FX
(800) 708 0040 Toll Free
rbisio@franchoice.com
When I speak with people who are considering buying a franchise, I sometimes ask them to list the first five franchises that come to mind. Typically all five are business-to-consumer (B2C) franchises such as restaurant or mailbox type franchises.
The purpose of this article is to let you know that there's another whole world out there! Business-to-business (B2B) franchises, which provide services to businesses, instead of to individual consumers, constitute one of the fastest growing sectors in franchising. Products and services range from temporary personnel placement to commercial window cleaning. They include sign companies, computer support, business coaching, printing, marketing services, logo apparel and on and on.
For many potential franchise owners a B2B franchise can be the perfect fit. Many people who leave the corporate world to buy their own franchise have spent years promoting their products and services to other companies or to other departments within their own company. They are comfortable and experienced in this type of environment. They enjoy professional business relationships. They are proficient at structuring solutions.
B2B franchises frequently need less physical infrastructure than B2C franchises. They are usually scalable and many B2B owners value that the business is usually open Monday through Friday, during traditional business hours.
A B2B franchise may be less expensive to get into than other types of franchises and may have lower operating expenses. In many cases, overhead is lower and marketing is more targeted, which is generally less expensive than marketing to the masses.
One item that can keep overhead down is the amount a B2B franchise pays for rent. While retail space can be pricey, most B2B franchises are located in office buildings, where space is less expensive. Some B2B franchises are even home based. For example, an IT company may actually be an association of high-level IT subcontractors, who travel from their own homes straight to the customer's site.
Some B2B franchises do require retail space. For example, a staffing firm that needs to be accessible to numerous potential employees might be located in a retail location; an auto parts store that supplies principally to auto repair businesses could also be open to the public.
As you can see, there are tangible advantages to owning a B2B franchise. But there can also be disadvantages. If you do not have a strong business background you may have trouble working effectively with business people, who tend to be busy and to-the-point. B2B franchises tend to work with a smaller number of large customers, rather than many individual customers. The loss of one client could cause a large dent in your top line. And because competition in the B2B arena tends to be proficient, you have to be at the top of your game.
But if you have strong business experience and are one the scores of people looking to take the next step in franchise ownership, don't omit B2B! It may bring you enjoyment, monetary rewards, and some weekends off!
Sign up for our FREE monthly newsletter at - http://educatedfranchisee.com/signup.aspx
The Educated Franchisee is dedicated to franchise education through the sharing of franchise information. 
Our objective is -
‘To create educated franchise buyers that have clearly defined objectives and are able to recognize the right, or wrong, franchise when they see it. An educated franchise buyer will move into the franchisee role with their expectations properly set and will have a heightened potential for success within the franchise system creating a win/win for all involved.
To get more franchise information about how to stack the deck in your favor -
Visit our website at www.educatedfranchisee.com or
Purchase our franchise book - The Educated Franchisee by Rick Bisio, Franchise Consultant or
Contact author directly at rbisio@educatedfranchisee.com or call 941 778 4660.
The FDD - Franchise Disclosure Document and Franchise Agreement isn't so scary; in fact, it is typically a standardized document brimming with franchise information
Ft. Lauderdale, FL -- Young entrepreneurs who are looking to enter the world of franchising have learned a lot of valuable information by working with Rick Bisio, a highly respected franchise consultant and mentor for franchisees in training. Rick teaches his students all about researching franchises and choosing one that is right for them.
Rick has discovered that many students are intimidated at the thought of reading and understanding the franchise contract. In one of his recent mentoring sessions, Rick explained, "Though the contract may seem to be very heavy on legal terms it is not so difficult to understand once you know what you are looking for in the agreement. The franchisor is required to share franchise information in a clear and transparent fashion; in turn, the franchisee clearly knows their rights and will be expected to meet the same standards"
Rick went over all the items included in the FDD, including details about initial investment and franchise fees; property requirements, location, building, equipment and supplies; a definition of operating practices to protect the franchise system, training and support offered by the franchisor, advertising cost and responsibility, royalties, bookkeeping requirements, and more. Rick said, "I hope that all of you pay very special attention to this part of the franchise agreement; a lot of this section is negotiable. I recommend that everyone read Chapter 7 of The Educated Franchisee Book to learn more about franchise agreements."
Rick concluded by reminding the students that studying the franchise contract is an important part of their franchise education. "Check each section carefully and make sure you understand each item and how it impacts you. A sound franchisor will spend the necessary time with you to be sure you are comfortable with these documents. Fear is normal at this stage of the transaction; let it push you to seek the information you need to make the right decision for you."
As one of the most respected franchise consultants in the United States, Rick Bisio has guided thousands of people to great decisions regarding business ownership and franchising. Rick has owned both franchised and non-franchised businesses. He has bought, sold and invested in businesses and worked as an advisor to others seeking the same. Rick is the author of the book, The Educated Franchisee; and he has a newsletter which you can subscribe to at http://www.educatedfranchisee.com
Contact:
Rick Bisio
FranChoice Consulting
(941) 778 4660 PH
(941) 778 4670 FX
(800) 708 0040 Toll Free
rbisio@franchoice.com
Up until now, it's been kind of fun, hasn't it? This whole ‘franchise education' process? You've told your friends that you're thinking of being your own boss, you've found a franchise that appears to match your goals and desires, you've talked to existing franchisees...and now it's time to read the Franchise Disclosure Document (FDD) and Franchise Agreement.
Ugh. It looks and feels heavy and legal. No fun. Scary even. Rest assured that fear at this point is normal and healthy. What you don't know is that the franchise disclosure document you hold in your hands is a lot friendlier than it looks. It constitutes a standardized document, full with franchise information. You've likely heard that it's written to protect the franchisor; you should also know that it protects the franchisee by leveling the playing field. The franchisor is required to share franchise information in a clear, transparent way. In turn, all prospective franchisees clearly know their rights and will be expected to meet the same standards.
So put yourself in a positive frame of mind and dive in. Give it your full attention now rather than making assumptions that may turn out to be erroneous. You don't want to count on using equipment you already possess, or adding your wife's special carrot cake to the menu, only to learn that's not part of the business model. Franchise systems work best when there are clear systems, standards and expectations. The value of your franchise is raised and the brand is strengthened when all franchisees provide systematically superior products and services.
The FDD covers every facet of the business, including:
1. What is covered in your franchise fee and initial investment
2. Physical property requirements, such as the location, building, equipment and supplies
3. A definition of the operating practices which protect the entire franchise system
4. Initial and on-going training and assistance provided by the franchisor
5. Whether advertising will be local or national and if the cost will be shared
6. How royalties are calculated and paid
7. Bookkeeping, accounting and reporting requirements
8. The parameters of your protected territory
9. More, much more
Pay special attention to the territory. This is one area of the Franchise Agreement that may be negotiable. For more information on all the sections in the FDD and what to look for in each section, read Chapter 7 of The Educated Franchisee.
Studying the FDD and the Franchise Agreement is a critical part of your franchise education! Go over each section carefully and be sure you understand how each item will affect you. A good franchisor will spend whatever time required to assist you become at ease with these documents. In the end, you may determine you can't accept the terms. Better to find out that now! And remember - at this stage of the franchise investigation fear is typical. Let it drive you to search the information you need to make the appropriate decision for you.
Sign up for our FREE monthly newsletter at - http://educatedfranchisee.com/signup.aspx
The Educated Franchisee is dedicated to franchise education through the sharing of franchise information. Our objective is -
‘To create educated franchise buyers that have clearly defined objectives and are able to recognize the right, or wrong, franchise when they see it. An educated franchise buyer will move into the franchisee role with their expectations properly set and will have a heightened potential for success within the franchise system creating a win/win for all involved.
To get more franchise information about how to stack the deck in your favor -
Visit our website at www.educatedfranchisee.com or
Purchase our franchise book - The Educated Franchisee by Rick Bisio, Franchise Consultant or
Contact author directly at rbisio@educatedfranchisee.com or call 941 778 4660.
by Rick Bisio - Franchise Consultant
& Author of the Franchise Book -The Educated Franchisee
Are franchises "bought", "sold" or "awarded"? Is the franchisor's representative in the "franchise development" department or "franchise sales" department? This may seem like semantics but it is at the core of what a thriving franchise relationship is all about.
If you "buy" a franchise it would imply that you have control over the process, much the same as if you were buying broccoli at the grocery store. You simply evaluate the diverse franchises that are available then walk up to the cash register and "buy" the franchise.
If a franchisor "sells" you a franchise it could bring to mind dealings you might have had at a used car lot. You would face a heavy handed sales person whose aim is to ‘close' the deal aware, of course, that they will never see you over again.
The good news is that you should have neither experience in today's franchising world. Today, high quality franchisors focus on "awarding" franchises to the best candidate. The franchise development person's job is to come up with a partner for the franchisor - someone who presents potential to be successful in that particular franchise system.
The term "awarding" came into widespread use in the 1980s. It reflected franchisors' collective realization that it was in their best interest to work with quality franchisees who would represent assets to the brand.
This is a logical change from the early days of franchising. When franchising was young, many franchisors thought that if they provided a successful model and adequate training, anyone could succeed. While the model and training are decisive, the other key ingredient is the franchisee. An introvert in a business that requires extroverts, for instance, would tend to struggle, and that doesn't help anyone. Quality franchisors want happy and successful franchisees because they make the system flourish. Even a top-notch business model run by a brilliant franchisor could fail if it was populated with the wrong franchisees.
Today, you should never feel that you are being "sold" or that you have the simple option of "buying". As you gather franchise information and investigate franchises, you should have the experience that the franchise development person is investigating you, too. S/he will inquire about your skills, your priorities, your past experience, and may investigate weak areas so that you can work together to determine if they are issues. You might even be given a skills or personality inventory, which will compare your scores to those of successful franchisees already in the system. The franchise education process will be one of mutual discovery.
When you find the system that's right for you, and you reach the end of the discovery process, you should have the impression that you will be working with people you like and trust, and who share your drive to be successful.
Sign up for our FREE monthly newsletter at - http://educatedfranchisee.com/signup.aspx
The Educated Franchisee is dedicated to franchise education through the sharing of franchise information. Our objective is -
‘To create educated franchise buyers that have clearly defined objectives and are able to recognize the right, or wrong, franchise when they see it. An educated franchise buyer will move into the franchisee role with their expectations properly set and will have a heightened potential for success within the franchise system creating a win/win for all involved.
To get more franchise information about how to stack the deck in your favor -
Visit our website at www.educatedfranchisee.com or
Purchase our franchise book - The Educated Franchisee by Rick Bisio, Franchise Consultant or
Contact author directly at rbisio@educatedfranchisee.com or call 941 778 4660.
I provide franchise consulting for people considering buying a franchise. My objective is to match the right person to the right franchise and share my knowledge about the franchise business.
Although many people would say my entry into the franchise business was in 1994, I would have to say it happened long before that. The franchise business is just a subsection of entrepreneurship, something I have been involved in my entire life.
I was born in Kansas City, the son of a hard working and independently minded father. Naturally, my father owned his own business. Entrepreneurship is what I knew growing up and it is the foundation of how I look at the world. If you want your children to grow up confident in their own abilities, start a business and let them take part. It will give them the confidence to tackle anything in life.
Although I had many small businesses in my youth, my first full time business started when I was 25 years old. I secured the exclusive rights to import a variety of Italian plumbing brands and promptly quit my corporate job. When I started this business, I knew nothing about plumbing products and I had no contacts within the United States plumbing industry. This was what you commonly call a ‘boot-strap start-up'. Suffice it to say that I learned a lot.
After selling my business, I spent several years both teaching and studying. While studying for my Master's Degree in International Business in the early 1990's, I was introduced to the franchise business model. This chance encounter changed my life.
I joined AFC Enterprises - Popeye's Chicken and Biscuits, Church's Chicken, Cinnabon and Seattle's Best Coffee - as their Director of International business. During the 1990's I visited over 60 countries and successfully established these franchise systems in over 30 countries. Thanks to the many wonderful people that coached and mentored me during those years, I literally gained a lifetime of experience in the franchise business.
Since 2002, I have been given the wonderful opportunity to share my experiences in the franchise business by providing coaching services to individuals considering buying a franchise. My objective in this book is the same as in my practice. I want to match the right person to the right franchise and, in the process, share my knowledge about the franchise business.Buying a franchise is an important decision. I know this book will help you.
The Book
The Educated Franchisee is more than just a book about buying a franchise - it's a book that also helps you decide if you should buy a franchise. All too often, when people suggest they may be interested in buying a franchise, advice is overflowing from friends, relatives, colleagues and a variety of so-called experts.
Chances are, they all may be wrong.
But if you're looking for a practical, easy-to-understand guide that helps you arrive at clear-cut answers to why and how you should buy a franchise business, The Educated Franchisee is the ideal tool for you.
Prior to writing The Educated Franchisee, we sat down to define our mission statement. It is as follows -
‘To create educated franchise buyers that have clearly defined objectives and are able to recognize the right, or wrong, franchise when they see it. Ideally an educated franchisee will move into the franchisee role with their expectations properly set and, as a result, will have a heightened potential for success within the franchise system creating a win/win for all involved.
Always remember that buying a franchise is not the destination, it is the vehicle. To have a safe trip you need a clear destination, a detailed map and a reliable vehicle. The Educated Franchisee is designed to help you at all three levels.
As you would expect, The Educated Franchise contains a wealth of useful franchise information designed to help you make a well informed business decision regarding buying a franchise - this is the vehicle. But buying a franchise is only part of the equation.
The Educated Franchisee also seeks to increase a new franchisees potential for success when buying a franchise. This is accomplished by properly defining your ideal business model prior to jumping into a full fledged examination of various franchise alternatives. The Educated Franchisee also provides you with information that will allow you to properly set your expectations as a franchisee and preserve your positive focus on success. This is both the map and the destination.
All three parts are critical when buying a franchise. Be deliberate and thorough in your preparation ... and your chances of a successful journey will be greatly improved. Educated Franchisee is a critical tool if you are seriously considering buying a franchise.
"Rick has rewritten the expression ‘live and learn' to say ‘study, learn ... and earn.' For someone thinking about business ownership, that approach is more powerful and relevant."
- David G. McKinnon - IFA Entrepreneur of the Year - 2001, Co-Founder, CEO and Chairman of Service Brands International (Molly Maid, Mr. Handyman, 1-800-Dry Clean, Ductz Air Duct Cleaning).
"Becoming a business owner is scary, and for good reason if you don't know exactly what to do to be successful. The Educated Franchisee takes stress out of the process and gives you everything you need to make confident, smart decisions. This book will be your most valuable ally as you discover the lucrative and exciting world of franchise ownership."
- Larina Kase PsyD, MBA, New York Times bestselling coauthor of The Confident Speaker and Business Coach to franchisees.
"Fear is a good motivator. So is wealth. This book shows they can work together to help you find success as an entrepreneur in franchising."
- Frank Carney - Co-Founder Pizza Hut - Current Franchisee Papa John's Pizza
"The power of knowledge when met with the ability to dream come together in a fantastic roadmap that is The Educated Franchisee. Whether it is understanding what makes a good entrepreneur or, taking that a step further, what makes a good franchise, this book gives a frank and honest picture of dreams in a very real world of possibilities. The world of business and franchising. Read and learn."
- Dina Dwyer-Owens, Chairwoman and CEO, The Dwyer Group
"If you're wondering whether it's time for a change in life - this is a must read! It's filled with insights and useful nuggets of information. Let Rick's experience and wisdom be your guide to understanding how to harness the power of franchising."
- Lori Kiser-Block, President, FranChoice, Inc.
"Rick Bisio's effort to help prospective franchise investors gain the education and knowledge they need to enter the exciting world of franchising is an important undertaking in a rapidly-growing industry. His experience as a franchise professional gives him special insights into the needs of those new to franchising."
- Matthew R. Shay, President, International Franchise Association
"As a new franchisee, the knowledge and teaching Rick shares in this book is invaluable. In many ways becoming an entrepreneur is like going into space - the better you prepare, the lower the risk. This book will help you plan for a safe and exciting voyage."
- Andy Allen - NASA Astronaut (Pilot 1992 and 1994, Mission Commander 1996), Top Gun Pilot, Franchisee of BounceU.
"The Educated Franchisee is a "must read" for anyone thinking about or actively pursuing a franchise business. Read it and save yourself enormous amounts of time and money!"
- John Hewitt is the Founder and CEO of Liberty Tax Service , Co-Founder of Jackson Hewitt Tax Service and the IFA Entrepreneur of the Year 2006. Mr. Hewitt is the only individual to have founded two top 10 ranked franchise systems.
"The Educated Franchisee provides the small businessperson the tools to achieve "The American Dream" of successful ownership. Rick's approach makes it easy to take the journey toward wealth creation. A must read for any potential franchisee!"
- Jon Luther - Chairman and Chief Executive Officer of Dunkin Brands, Former President of Popeyes Chicken and Biscuits, Winner of the IMFA 2007 Gold Plate Award, Chain Leader's 2006 Leadership award and Nation's Restaurant News Golden Chain Award.
"From the psychology of success to financing alternatives - it is all here. Powerfully written in a no nonsense style. If The Educated Franchisee cannot get you there, no book will! Rick Bisio has coached thousands of people to wonderful life decisions - including me."
- Ford Kyes, ActionCOACH Firm franchisee owner and former CEO, St. Anthony's Health Care, St. Petersburg, Florida.
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