Build it or Buy itDefine Your Business ModelPlan Your BusinessSelect a Business StructureStart a Business
Step #3 – Start Your Franchise Analysis
19 Jul 2008
Jack Burris is president of Red Beard Marketing, a marketing, business development and brand consulting company based in Charlotte, NC. RBM is a full service firm, and we also happen to have a lot of experience in the franchise vertical and currently work with some of the best and brightest minds in the franchise community including Franconnect, Franchise Business Review, Franchise Payments Network and FranchiseWorks LLC, all small businesses designed to help franchisors, franchisees and interested investors through the franchise process. RBM is always results-oriented.
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So let’s review for a minute. By now, you’ve:
- Started discussions with your family and decided that you might be interested in owning your own business, and
- Accumulated a nice list of opportunities to consider.
Now we’re on Step #3. The analysis phase. I recommend starting with an Excel spreadsheet, each franchise disclosure document (FDD) and an old-fashioned pen and paper. Your spreadsheet should include the following columns (and maybe more):
- Company name
- City of available territory (if not your current city)
- Current number of open franchises
- Franchise fee
- Total initial investment
- Total investment
- Amount of cash you have available
- Royalty fee
- Advertising fee
- Other standard fees
- Lease fees (if necessary)
- Legal fees
- Potential salaries, overhead, etc
- Equipment cost
- Past litigation (if any)
This list is just the basics and will provide a good snapshot of the fees, time and other requirements to get started.
Next we’ll look at taking a snapshot of the competition, market potential and other important factors. Feel free to contact me directly with any questions!