ABWA Beachwood Ohio

The turn out wasn’t huge, but the meeting was a hit. If you were ever curious about what franchising was all about and how to get into it, tonight was the night to come.

Joel Labava explains that looking at franchising is a lot like deciding how you want to bake your cake: Do you want to go to the supermarket and go through each isle picking out each ingredient, or do you want to pick up a cake mix box? Franchising is like that cake mix box.

As described in his handouts, “The franchising business is a licensing system by which the owner (franchisor) of a product or a service licenses others (franchisees) to market and sell the product or service within a defined territory, following the guidelines established by the franchisor.”

Joel explained about the three ways to acquire a business: 1.) From scratch - doing all the hard work, with no support, trying to figure out everything on your own, 2.) Purchase and existing Business - could be risky and cumbersome, you have to negotiate with the current owner, and it is hard to tell what you are getting, or 3.) Invest in a Franchise - if done correctly, it can be the easiest and fastest way to build wealth.                                                                                                                                                                                                                              Franchises can start at $100,000 to $150,000, and figure that you won’t make money in the first year. If you are lucky, you will have a working spouse to get through the slim times. Financing is more forgiving when you consider franchising - no venture capitalists to consult, and the banks are more willing to lend. Of your sales, 4% to 12% will go to the franchisor.

Joel suggests doing your homework - and lots of it! If you are interested in a franchise, call franchise owners not in your intended area. How do they like it? What were their struggles? How long did it take to break even? Questions like these can help uncover if this is an investment you are willing to take on.

If you would like more information, please contact him at 216-831-2610, franpro@sbcglobal.net, or check out his website at http://www.theohiofranchisecenter.com/.