Franchise Growth Systems wishes all of our friends and associates a warm and prosperous Holiday season, and New Year as well! We want to thank all who have chosen to franchise with us, and once again share with you the fact that we feature exciting, easy-to-manage brands that represent “outside the box” companies in growing industries, such as:
FGS is currently in negotiations with international business developers to expand one of its thoroughbred clients, Zoyo Neighborhood Yogurt, into multiple domestic regions and even exotic foreign markets, such as India, Saudi Arabia, Egypt and even Libya. Canada, the U.K. and a number of countries in the European Union are all also some of the prospective future destinations of this hugely popular frozen yogurt purveyor.
“They’re simply going crazy for this brand,” says Business Development Advisor John Dunatov, “We’re in negotiations with regional business developers all over the globe, and they’re very interested in Zoyo.”
With a variety of delicious and healthy froyo flavors available, Zoyo has taken care to cover all aspects of a winning franchising model. Their frozen yogurt products contain four different live and active cultures, are low-cal and low cost. The cost of becoming a Zoyo franchisee is also relatively low.
States and regions which Zoyo has already plotted out for future expansion include:
Zoyo is not alone in finding itself on the fast track to replication in the greater marketplace, however.
With fitness gurus SuperSlow Zone also launched out of the gate and sprinting, the field is a fast one, and the road ahead lined with opportunities for prosperity, incredible brand replication and recognition, and quality of life franchising opportunities that surely must entice qualified investors in easy-to-manage business models.
Don’t miss your chance to grab some of the thunder with these two, or any of the other hot brands FGS currently has available on its roster of brands both easy-to-manage and finance!
The 2011-2012 fiscal year presents a fantastic
opportunity to invest in some remarkably easy-to-manage franchises that present
“turnkey solutions” to the business-savvy investor who’s been leery of taking a
financial risk in past years – but who may be looking ahead with optimism for
that sweet deal that’s too good to pass up.
In particular, Franchise Growth Systems (FGS) manages a
roster of brands which offers investors relatively low franchise fees,
financing options, and easy-to-manage business models that encompass more than
a dozen of the top growth industries in the U.S.
One in particular – Oveyo
Measurable Marketing Results – features the ultra-low
franchise fee of $39,500, with the total investment expected to be in the
$51,000 to $93,000 range for a fully-outfitted office. Oveyo presents an
easy-to-manage business model, and provides a full complement of web
development and internet marketing services with contemporary solutions to all
their clients’ needs.
Several other FGS brands come in under the $100,000 total
investment mark for single-unit franchises, with up-front franchise fees
averaging around $35,000 to $39,000. This is the perfect time to invest in a
low-cost startup representative of a growth industry, as 2012 is looking very
promising as a year for economic bounce-back – both on a personal and
macroeconomic scale, according to statistics and industry experts.
Franchise Growth Systems’ emphasis is on Regional
Development, or Master Franchise programs, which offer the best overall
investment strategy, long-term. The financial possibilities are numerous, but
the rewards go beyond even financial returns – this is a highly attractive
investment solution for those seeking to set up multiple income sources, with a
legacy of financial assets to fund a “soft retirement” and eventually either
sell for (normally) large profit, or pass on to beneficiaries.
A Master Franchise scenario with a hot FGS brand in a
growth industry is an excellent way to provide yourself with an economic
stimulus consisting of multiple, residual income streams. Franchising is the
greatest marketing tool yet devised, and is, as Presidential Candidate Governor
Mitt Romney has pointed out, “The key to economic recovery and job growth.”
The time is right, the market is fertile, and the
risk-to-reward ratio is relatively low…isn’t investing in a franchised business
the right step for you?
Franchise Growth Systems’ roster of franchised companies reflects its own search for outfits that offer that unique element which goes against the run-of-the-mill and historic trends in business. FGS’ marketing and business development professionals understand that innovation is the Yellow Brick Road that leads to success in the greater marketplace, and its list of hot brands reflect this assiduous search for those doing something new, different, and value-added in business today.
One of their companies, Zoyo Neighborhood Yogurt, just won “Best Frozen Yogurt” by Phoenix Magazine, and has 4 active live cultures in their delicious flavors; another, ApplicantSafe, offers every conceivable service relating to background checking and employee candidate screening; another is perhaps the most progressive, yet family value and community-oriented toy store on the market – Kazoo and Company Toys.
And that’s merely a few of the brands FGS has partnered with in order to foment economic recovery, personal and macroeconomic fiscal stimulus, and share with investors the joy of discovering financial freedom, and the myriad ways in which franchising rewards the business-savvy. Its track record of making major names of once small businesses – such as health care industry giants Massage Envy and HealthSource Chiropractic – reflects its diligence in putting winning brands with lucrative, service-oriented business models in prominence in the marketplace.
Its focus on health care and the community at large continues, with Bouari Clinic, which offers a uniquely effective weight loss program and easy-to-run business model (as are many of their offerings). Another of its recently new offerings that’s providing an innovative business approach is BullChicks Restaurants, which has something for literally everyone on its American-style menu. Mike’s Master Mechanics is another hot brand, which points the automotive industry in a fresh new direction, eliminating competitive, unethical mechanic behavior by putting mechanics on salary, and standardizing pricing and service quality.
As of 2011, all of FGS’ brands are easier to finance, with a cost-deferment program that allows slightly cash-strapped entrepreneurs and business professionals a leg up on getting started right away and financing up-front franchise fees. In addition, all FGS brands are relatively easy-to-manage, and offer long-term financial rewards, “legacy empire” building options, and a range of multi-tiered wealth-building options that all depend on how engaged and involved you want to be in your new venture.
Franchise Growth Systems – We’re franchising for the 21st Century!
Statistics paint an eye-opening picture of the world of franchising: $2.3 trillion in sales revenue generated worldwide, with $1.3 trillion of that in the U.S. alone. Beyond the revenue, however, franchising is the main vehicle at the moment for economic stimulus and recovery, with Presidential Candidate Governor Mitt Romney even proclaiming this fact.
Some franchises are more successful than others, but overwhelmingly franchising aids economic recovery, creates and sustains employment, and as the greatest marketing tool ever devised – builds solid brand strength and Fortune 500 companies whose logos have become icons of financial dominance and product reliability.
There are a relative few who argue against franchising, and those individuals, on the whole, labor under misapprehensions about the advantages, rewards, and supposed drawbacks of franchising. They also underestimate themselves, settling for less when they could dominate entire markets and cement themselves as strong icons of financial and branding power.
Other Advantages of Franchising
The evidence overwhelmingly shows that should a particular brand or company choose to franchise, the rewards of doing so far outweigh any temporal concerns – such as up-front fees or “losing brand control”. Indeed, the relative small investment, compared to the potential ROI and revenue streams, and the fact that “brand control” as it’s understood is quite different from the reality – combine to make franchising any given brand an enticement that seems foolish to pass up.
The support structure that a franchisor can offer to its “family” of franchised locations is invaluable. This support structure includes training and ongoing support, marketing tools and advertising funds that far eclipse those of the average non-franchised business. This support system gives franchised brands a tremendous advantage over those going it alone – even with corporate, or licensed locations strengthening their brand recognition.
The Sensible Choice: Franchising in Hot Industries
International franchise Solutions offers business-savvy investors the chance to help lead top growth industries, contribute to economic recovery (their own, and on a macroeconomic level), as well as provide themselves and their franchisees the chance to stabilize their fiscal portfolios and create “legacy empires” which they can pass on to their beneficiaries. By franchising your brand name, you hand over your well-earned business ownership status to professionals who can take it light years further, into the realm of financial and occupational freedom.
Being the first or the only one to offer a product or service to the public does not necessarily guarantee the success of that business, but it certainly never hurts. Many business concepts aren’t true originals, but are facsimiles of existing ones proffered in hopes of doing it better, and end up failing because they’ve only changed the style, not the approach. The market is oversaturated with these types of businesses, where truly original concepts have failed due to lack of a solid support and marketing structure.
Innovation, new thinking, and customer satisfaction are the keys to survival in an oversaturated marketplace.
When Dave Thomas started Wendy’s the so-called experts told him that the hamburger market was already saturated with people like McDonald's and Burger King. The same thing was told to John Schnatter about Papa John’s Pizza. There was already Pizza Hut, Domino’s, Pizza Inn and many others. There are myriad examples where the so-called experts were wrong.
Other “experts” were surprised to see on several occasions when Dave Thomas would locate a Wendy’s across the street from a McDonald's and a Burger King, where most would expect the sales volume from the stores to reduce. The opposite would occur: not only did Wendy’s experience success, but also the sales volumes of the two other hamburger franchises went up as a result.
In short, it is a verity that even in high growth areas there is room for additional franchise units. In metropolitan Phoenix for example, with the number of new families moving in per month, one new retail location could be added per month for just about any concept. Case in point: there are more individual representations of multiple industries than ever before existing side by side with the competition. There is, effectively, no one “King of the Hill” in franchising on the whole, or business in general.
Even with extensive analysis on the number of units that can be put into a given area, the experts can still be wrong. A franchisor called the Taco Maker has 140 plus units in North America, though approximately 80 of those locations are located on the island of Puerto Rico, which has a population of about four million people. Oversaturation by one brand can most often increase, or sustain its popularity, as opposed to squelching it.
No matter what the so-called experts say, the market will always accept great products and services, regardless of how oversaturated a certain marketplace may appear. If it is as good or better than the competition and marketed properly, the franchise will be a success, and there is always more room in the marketplace for a franchise that’s doing business “the right way”.
We specifically seek out these kinds of companies at FGS, only offering our franchisees winning concepts that possess a long-term recipe for success!
Knowing what type of franchise arrangement is best for you is a key part of your success as a franchise owner. It is one of the prime deterministic factors in your long-term success – depending, of course, upon the business model and industry your business represents. There are several franchising situations you can get into, and all of them offer their particular amounts of monetary and branding success.
“Deciding on the level of franchising that best fits your needs is often overlooked, but is just as important as investigating and choosing the right franchise. If the level of franchising you desire to get into based on your financial goals is unavailable, then you should avoid wasting precious time evaluating something that doesn’t have the potential to help you reach those goals,” says Franchise Growth Systems’ VP of Marketing Brandon Veater.
And apropos of the right kind of franchising situation are the different franchise scenarios you can choose to invest in. Below are the four levels of franchising, which include information on the territory specifics, the required level of participation, and the typical liquid capital requirements. It is best to consider all aspects of each level, before deciding upon a level in which to invest.
A franchisee has the right to operate a single franchise unit. Most franchisees enter the world of franchising by owning one unit. This is a great way to get in and understand the system before taking on more units and responsibility.
Territory: The franchisee may have a small radius of exclusive territory to operate within. If it is a retail store, the area of exclusivity may be a two or three mile radius around the store, for example. If it is a home-based business the area may consist of a few specific zip codes.
Level of participation: The franchisee is very involved with almost all operations of this type. Even if it is a semi-absentee owned business, the franchisee will want to be present at the business and be as hands-on as possible.
Typical liquid capital required: $35,000 to $70,000 initial out-of-pocket investment required on a total investment of around $150,000 to $250,000.
If the franchisee acquires more than one unit of the franchise, usually at reduced franchise fees, it is known as a multi-unit situation. The risk is lower because the franchisee can take advantage of the economies-of-scale theory. By spreading costs across multi-units, certain locations may become more successful, pulling the weight of the others. A good sign of the health of the franchise is if many of the franchisees are multi-unit owners!
Territory: There is usually no exclusive territory where the franchises must be set up. The franchisee may have one unit in one part of town with a surrounding radius of exclusivity, and another unit in another part of town 15 miles away or even in another county with its exclusive radius of operation.
Level of participation: The franchisee is less involved with each of the units operations, but will be managing multiple operations and will need to have some level of supervision in each unit. If many units are opened, a general manager and additional administrative and training staff may be needed. The franchisee is more of a general manager when many units are involved.
Typical liquid capital required: $50,000 to $70,000 initial out-of-pocket capital is required to take care of mostly the initial franchise fees. The rest of the investment is usually financed when each unit is opened.
This license usually grants the franchisee the right to open a certain number of franchises in a given area. There is usually a production schedule where the franchisee must open a certain number of franchises during a certain period. The franchisee has an exclusive area where no other franchisees can be allowed to open a franchise.
Territory: The franchisee maintains an exclusive geographic territory as long as the opening schedule is maintained. The territories range from a small city to parts or all of a larger city.
Level of participation: The franchisee will be very involved in the beginning stages of the first location to make sure it is successful. The franchisee will also need to be looking for qualified real estate to open the next few locations. Once several locations are open, the franchisee will need additional assistance to manage several units.
Typical liquid capital required: $60,000 to $120,000 initially to secure the area, pay all franchise fees and have additional start-up capital. The franchisee will then need to be able to finance the rest of the start-up costs for each of the franchises, as they open.
A Master Franchisee, sometimes called a Regional Developer, has the rights to a larger area than that of an Area Developer. The Master Franchisee, in addition to opening franchises at a much reduced franchise fee and royalty, can also sell unit franchises, multi-unit franchises and area development franchises and make a nice return on the sale. The master usually receives a part of the royalty and franchise fee paid by each franchisee. There may be additional income available from distribution of products through the franchisees in the area and possibly even some real estate interest.
The master becomes somewhat of a sub-franchisor for the area, without having experienced all the trial and error the original franchisor did. The master franchisee will usually want to open and operate at least one unit (pilot location), for income and use as a training center. Master franchises are rare; most franchisors do not offer them. However, when they are available they usually sell quickly. The income available from a master franchise is extremely lucrative, and the initial investment is low compared to the type of value you can build in the master franchise area. The flexibility is also the greatest at this level.
Territory: Usually is a large metropolitan area or ADI (Area of Dominant Influence), an entire state, region, or even country. It is an exclusive area and will remain exclusive as long as the master franchisee meets the development schedule of franchises in the territory.
Level or participation: The master franchisee will usually set up and operate at least one unit and use a manager to manage it while working on selling other “sub-franchises” and assisting them in opening and operating properly. Very rarely is a master franchisee “hands on” in a unit franchise. They tend to spend more of their time operating like a business consultant or coach to their franchisees to help them become successful.
Typical liquid capital required: $100,000 to $250,000 is needed to acquire the territory and for initial liquid capital to start the area. Financing will be secured for the start-up of the unit franchise.
And there are the four levels of franchising – each of which has its place and rewards. Our network of franchise development professionals and business experts are there for you every step of the way to help you achieve the business goals you’ve set out to accomplish.
There are some encouraging figures as of late which point to the next fiscal year as being prime time for investing in franchise ownership. With consumer confidence hanging in steadily, many steeply discounted commercial real estate opportunities available on the back of large, corporate rollbacks, and a high number of innovative companies worthy of brand-name recognition and replication – 2011-2012 appears to be the best time in several years to invest in a franchise business opportunity.
Retail sales will grow about 10% in 2012, slightly more than the 8% expected in 2011. Look for strong holiday sales in 2012, with growth of 5% in November and December versus those months in 2011. This increase will offset a dip in sales during June and July. October sales were up 0.6% over September, due in large part to a 3.7% jump in electronics sales, the largest monthly increase in two years.
The U.S. economy will grow about 2% in 2012, roughly the same as in 2011, enough to avoid another recession but not enough to make much of a dent in unemployment. But, as Presidential Candidate Governor Mitt Romney declared recently, franchising is the key to economic recovery and job growth.
Faster growth in the second half of 2011 will rescue the U.S. from a downturn, and shows that pent-up consumer demand and business confidence provided enough momentum to overcome a summer of stock market gyrations, a European financial crisis and the debt limit drama in Washington.
After growing at an annual rate of only 0.9% for the first half of the year, gross domestic product grew at a 2.5% rate in July, August and September. Business investment surged at a 16% rate and consumer spending rose at a 2.4% annual rate — not great, but well above what would point to recession.
Taken together, these statistics point
to bettering consumer confidence, and a marketplace soil which has become
fertile for franchising growth. In spite of big corporate and franchise
downsizing in recent years – just like shaking a tree brings the loose fruit
down and makes way for the new – the prospects look bright for franchisors and
franchisees alike in the coming years.
“It truly is a prime time for franchising, and more individuals should take a closer look at these younger brands that actually have great territorial positioning, and are still available for investment and are wide open for growth,” explains VP of Marketing at FGS Brandon Veater, “Many get the erroneous idea that most franchises are maxed out for potential growth, and this is untrue. This is a big mistake many newcomers to franchising are making.”
Source of statistics: Kiplinger.com
There are many ways to start a business in today’s world, but you can conceivably do it in one of two ways: buy an existing franchise model, or start your own from scratch.
Those in the first group are
finding more success – and on a longer timeline, as well. Those in the latter group have a much harder
time surviving in business after their first 5 years. There are many benefits inherent in the “turnkey” solution of buying into
an existing franchise concept, as opposed to the riskier method of attempting
to conquer the marketplace without the power of franchising.
According to economics experts Dun and Bradstreet (and other sources), the four major reasons why businesses fail are:
Personal – If the owner is not passionate about the business and the business is not suited to the proper personality of the owner, that business will be far from reaching its potential. Unless the owner has had previous experience in a related business field, the owner is taking a chance on whether he will like the business and whether his personality will fit in with the current structure. With a franchise, the owner only needs to find the right franchise out of the thousands available that fit him or her best.
Lack of capital – Most owners of normal businesses go into their venture without enough capital, because they don’t know what to expect. Once the capital runs out, they have nowhere else to turn and they are forced to close or sell. With a franchise, many owners have already proven how much capital is required for success, and financing is readily available for provable franchise concepts.
Lack of marketing knowledge – If the owner of the business doesn’t know how to bring a steady stream of customers in the door, he will have to use trial and error and spend more money than necessary to figure it out. With a franchise, the marketing systems are already in place and there is a proven track record on the marketing results. Franchises have the advantage of name brand recognition to make the marketing systems more effective.
Inexperience – An individual beginning or taking over a new business that they are unfamiliar with will plan to make changes and improve the business. Without specific experience in running the business it is very common that an owner will make changes that will not benefit the business in the long run. With a franchise, once again there is a proven system and many other owners to rely upon to help the business owner to make the right decisions. Ongoing support from experienced franchisors that have a great incentive to see the franchisee succeed will make a big difference in the chances of success of said franchised business.
The bottom line is that franchises have a much higher success rate than normal businesses because three out of the four major causes of failure in business are practically non-existent in a quality franchise. The fourth area – personality – can be dealt with by making sure the new business owner’s personality will fit the type of franchise he or she intends to purchase. Those who set themselves upon long-term success are going to want to choose franchising as a way to secure their future.