Franchise Your Business With Solid Funding Options
Franchise your business with FMS. FMS began its journey in franchise development in 2009, which in some ways had many similarities to the current marketplace for franchising which has been obviously impacted by COVID and the Pandemic. The irony of the franchise industry is that in many ways, the franchise business does better when the general economy is having trouble. Almost like an inverse relationship between the job market and the entrepreneur market.
When people lose jobs or have some difficulties finding employment at the level they would like or be accustomed to, they are more willing to accept the risk of becoming a business owner. So, back in 2009, the market was obviously incomplete turmoil with the financial and real estate collapse in full effect and the job market was about as bad as it could get.
From 2009 to 2012, the franchise industry saw some of the best growth percentages it had ever seen with the recovery taking place and also the amount of talented, high-calibre franchise investors entering the market.
It hit me one day as we sold a flower retail franchise to a former pharmaceutical executive. When the market was good for jobs, he would have probably laughed me off the phone offering him a flower business, but in 2010, he was investing in 9 locations of this particular franchise.
Today, during COVID, there are many of the same attributes in place and so many incredibly talented franchise investors who are entering business ownership due to fewer opportunities in the employment market.
What is different about the COVID economy vs. the 2009 economy is the access to capital. In 2009, virtually no one could get a loan for anything as banks and lending institutions were licking their wounds from a horrendous collapse of the financial industry and in COVID times, just about anyone can get a loan for anything. Joking of course, but the general situation isn’t that far off as recently as last year, FMS had sold one multi-unit franchise to a group that purchased a $4 million investment, which included real estate, for a senior care franchise system and put $0 down on the entire deal.
A transaction that would have been about as believable in 2009 as meeting a group of aliens landing in your neighbourhood some evening. One big change between the two markets is the SBA Funding element, the government is throwing money into the market in a variety of ways and one of those is supporting Small Business Loans through the SBA.
Most franchises, if they have the right mix of operator involvement and a few other characteristics can qualify for what is called the SBA Franchise Directory which is an approval for a franchise brand by the SBA which then makes the funding process quicker, easier and faster for a new franchise buyer if the brand is on this SBA Franchise Directory.
When FMS launches a brand, this is something we do for every new franchise. It’s not only important, it’s critical to being able to fund new franchise investments in a system.
SBA financing isn’t the only option for funding new franchise growth, there is a variety and all should be taken into account. Here would be my list to consider for offering funding to franchise buyers to your brand:
- SBA Loans: These loans are backed by the Small Business Administration and if the buyer qualifies, they will generally be the lowest interest rates and the best cost for the buyer to obtain funding.
- Commercial Bank Loans: Every franchise buyer has the option to just go to their local bank or lending institution. I would recommend developing a couple of solid relationships with lending groups to offer referrals and a direct option to a lending group with the buyers.
- Creative Lenders: There are other lending options for a buyer which come through different channels than banks and in some cases these can be incredibly effective. These are basically private lending groups which in some cases have easier qualifications to close a loan but can be more costly to the franchisee in higher interest rates, etc.
- Family and Friends: The one I would always suggest that sometimes is overlooked or just not addressed is many times one of the best ways to help fund a franchise sale. Suggest to the buyer that they present the investment opportunity to their friends and connections. So many times this ends up being the best option for them and they have more resources at their fingertips than they realized and this tends to be the easiest way to fund a deal in many cases.
- Franchisor funding the deal: Last but not least would be the deals, the Franchisor would provide lending options, many times the easiest way to offer this is some sort of financing of the franchise fee which allows the franchisee to make payments on the fee over a specified time period. This needs to be disclosed in Item 10 of your FDD, but it can make a big difference in your ability to close some franchise sales.
Every franchise system needs to have lending figured out in order to successfully develop its network and franchise the business model. It isn’t a “nice to have”, it’s a “need to have” for any brand getting into the franchise market and selling their franchise platform.
For more information on franchise lending options or on how to franchise your business, contact us.
The Gutter Monkeys Franchise was developed by Mr. Dennis Siggins and Mr. Andy Brennan, two college friends who recognized the opportunity in the gutter cleaning, maintenance, and installation market. The industry niche had been essentially ignored by big brands and was fragmented, yet there was enormous demand and need for the services offered in this space.
Mr. Brennan had a long career in the printing industry as an executive and Mr. Siggins had experience in the construction and advertising markets. Their combination of talent and experience seemed like the perfect platform to launch a business in the market segment.
In 2014, Gutter Monkeys was born and immediately the brand took hold in the Cape Cod, MA market. Great systems with a fun and engaging brand, and accountable, professional service not only caught people's attention but captured market share immediately. Andy and Dennis recognized that there could be an opportunity to scale early on as people began coming to them looking for direction and support to help them get into business for themselves.
In a short time, two new Gutter Monkeys territories were opened in Massachusetts and collectively the brand was getting traction in a big way.
In 2019, the firm decided to look into franchising the gutter cleaning and installation services business to grow into more markets and grow the brand further. Gutter Monkeys chose to work with Franchise Marketing Systems to develop the franchise platform and create the Gutter Monkey franchise model.
Franchise Marketing Systems team worked closely with the leadership team to develop a win-win franchise structure that leveraged the company's core philosophies and the leadership team's genuine concern for helping people achieve financial independence through business ownership. The franchise structure and financial model were created in a way where franchisees would have a reasonable initial investment to start their territory and great margins that would allow for a strong ROI.
Franchise Marketing Systems worked with third-party franchise lawyers to develop the FDD, Franchise Agreements and documentation needed to legally present the Gutter Monkeys franchise system. The focus was to start locally and develop the brand in the Northeastern United States and then scale outward. There was an enormous focus on the quality of the relationships, having a tightly managed and dedicated support structure in order to maximize opportunity and validation with early Gutter Monkey Franchisees.
Then the Franchise Marketing Systems team worked with the Gutter Monkeys group to develop the operations, training and management systems needed to teach new franchise owners how to manage the business and operate successfully. The franchise operations manuals were developed and training programs to use as the foundation for these franchise training programs.
Today, the Gutter Monkeys franchise is being promoted throughout the U.S. and offers an incredibly powerful and effective franchise offering. A great brand, strong systems and a leadership team that is dedicated to sustainable, scaled growth through franchising make the Gutter Monkeys franchise positioned well for growth. For more information on how to franchise your Gutter Cleaning and Installation brand, contact us.
Franchise Marketing Systems worked with SodaStream to develop a territory model franchise system that would allow for more consistency. controlled distribution of the product line.
SodaStream Professional (SSP) is a division of SodaStream International (NASDAQ: SODA), a leading manufacturer, marketer and distributor of beverage carbonation systems.
The SodaStream franchise model is simple in that it only requires an office setting and the purchase of a minimum inventory requirement. Franchisees' responsibilities consist of two functions, selling the products and brand primarily and secondarily, delivering service and support to customers in their respective markets.
Franchise Marketing Systems worked with SodaStream Professional management to develop a franchise model that would allow for both aspects of the business to be replicated efficiently.
SodaStream revolutionized the beverage industry years ago by empowering people to make their own sodas and carbonated beverages at home. The brand went through a resurgence in the early 2000s globally and with the increasing demand came to the need for stronger, more structured distribution channels.
Franchising and licensing arrangements were the vehicles chosen to facilitate this growth and expansion of the business model into new markets around the world.
SodaStream has driven the majority of its product sales through retail and eCommerce platforms selling the home version of the technology. One of the significant opportunities for growth was in the commercial side of the business.
Selling redesigned versions of the equipment that could be used in office settings and in commercial applications. SodaStream professional was structured to do just that and targeted the commercial side of the business.
Due to the fact that the majority of SodaStream's growth was international and widespread, the need for franchised distributors in these far-reaching markets was even more evident.
By locating strong franchises in new countries, the learning curve, necessary distributor and retail relationships and overall business relationships were much faster to take hold.
SodaStream has always had a strong brand and has certainly been considered the innovator in this niche of beverage production, the franchise channel allowed the business model to scale and monetize more effectively.
The franchise distribution channel has been effective for SodaStream and allowed for lean, global expansion opportunities. Get in touch if you are interested in franchising your business.
Caliber Patient Transport
The Story Behind the Patient Transportation Franchise
Caliber Patient Care is a non-emergency patient transportation company that provides quick. convenient and professional transportation services designed for seniors and built to fill a specific need. As one would assume, the market for senior services including patient transportation has grown quickly and continues to grow every year as our baby boomers and population segments age.
The Calvert family had a long history in entrepreneurship and the father-son tandem had built several successful businesses.
The most recent of which was a shipping and logistics business with one of the major shipping enterprises. After selling that business, the Calverts saw an opportunity in the burgeoning medical transportation field. One of the interesting aspects of this success story is that the brand started as a franchisee. Like many success stories in franchising. this franchisor started out as a franchisee. realized the power in the business model and felt that they could do a better job in franchising after experiencing the franchisee side of the business relationship.
The business model originally opened as Medex in Nashville, Tennessee and in only two short years had grown to an impressive business with a fleet of vehicles transporting elderly patients around the city to hospitals. doctor's visits and other appointments. Mr. Calvert Sr. was an operator at heart and still drove many of the routes himself, but his experience in managing logistics and shipping businesses allowed the business to scale and grow quickly in a market segment that lacked organization and structure.
What helped Medex in addition to this experience was the combination of grey hairs with young and technology savvy Mr. Calvert Jr.Kyle Calvert understood branding. image and the new age of business, so together, the two created a dangerous tandem of business leadership.
In just over a year of business, the Calverts looked to franchise the Medex business model and saw an opportunity to open the model in new markets. The consumer business was large and growing and certainly too much for corporate resources to handle. The first order of business was to look at branding and how a national or global expansion model would impact the current brand presentation.
Trademark issues prohibited the Medex brand from being protected Federally. so the entire company was rebranded asCaliber Patient Care. Where some businesses may have languished and been slowed by emotional hardship during this change, the Calvert's embraced the decision and revamped the entire face of the organization including the digital presentation. vehicle signage printed collateral and another related branding. Under the Caliber Patient Care brand, the organization hired Franchise Marketing Systems to build, design and structure the company to be franchised.
Franchise Marketing Systems provided franchise consulting and management services to Caliber needed to implement a franchise strategy that could take the system to market, present the brand and sell the vision of the organization to the right franchisees.
Along with this strategy, Franchise Marketing Systems recommended qualified franchise attorneys provide franchise legal counsel and franchise registration support to register the Caliber franchise brand in the appropriate states. Franchise training and operations manuals were developed to structure and organize the business model to be taught and trained to new franchisees.
The franchise marketing and sales model was developed then coordinating the consumer-facing brand with the messaging, presentation and professionalism that Caliber had become known for.
Under the direction of the Calvert's and with the support of Franchise Marketing Systems, the marketing and sales model was implemented nationwide. Franchise brokers, web-based lead generation and strong direct franchise marketing strategies were implemented and within two years, the organization had expanded to almost so locations throughout the country.
Caliber franchisees were well capitalized. business savvy marketing and sales-oriented professionals in most cases saw an opportunity within the Patient Transportation market and leveraged the Caliber model to duplicate success in their markets. As the business grew. so too did the strategic initiatives that were developed from Nashville at the headquarters.
Amazing national opportunities were developed which benefited all franchisees and grew the brand and business exponentially. Technology, systems and infrastructure were added as the business growth demand edit and today, Caliber stands truly at the forefront of the entire industry segment.
HoochiCoochi Wax Studio is a wax studio established in 2009 by Judy Kratz. Before creating the concept, Judy has spent more than two decades perfecting her craft as a master esthetician and has taken her training to the next level, spending hundreds of hours refining her skills and knowledge on skincare and hair removal.
Judy created the concept of a wax studio that follows the strictest rules of hygiene. HoochiCoochi does not double dip. All materials are disposed of after every use so nothing is recycled or re-used. It uses only the best European Blue Hard Wax, which makes the waxing process virtually painless.
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Contact FMS if you require franchise development and management services for your business.
Wheels for the Wise is a private driving service for seniors and people with special mobility needs.
The company was founded in 2011 in Ontario, Canada. We pride ourselves on being the most professional and compassionate driving service available today for people who require a little extra help to get to medical appointments and complete their weekly errands.
Bon Worth has been a nationally recognized retailer of quality women’s fashion for over 52 years. We have 115 retail stores located in 28 states and maintain an online presence through this website and on Facebook.
Their focus is style and comfort for their customers. BonWorth’s new line of fashion-forward designs depicts a whole new attitude in style, combining today’s hottest trends with traditional Bon Worth quality, value, and comfort.
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Barami Hakakian, founder of BARAMI, spent years building, testing, and perfecting the BARAMI business model and operating structure. Since starting BARAMI, Mr. Hakakian has wholesaled his clothing products to major retailers like Neiman Marcus and has cultivated a vast knowledge of the fashion industry from the inside out. BARAMI has recently expanded throughout the New York City and Atlanta areas as well as through the recent addition of a sister brand – Patrizia Luca.
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Poke Burri is an Atlanta-based restaurant company that provides a healthy and delicious dining experience focused around the popular dish known as poke. Poke is traditionally a Hawaiian raw fish salad. Poke Burri starts with this premise and allows customers to order from a menu of specialty poke dishes or create their own dish for a food service experience that is unlike most concepts in the market. The restaurant represents the lifestyle, culture, and spirit of the founders, Seven Chan and Ken Yu. With years of food and business experience, Poke Burri represent their commitment to being the best at what they do including freshness, flavor, and an emphasis on the customer experience.
- Website Design
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Toby's Latin Grill is the brainchild of restauranteur Cristobal Rodriguez. Toby's Latin Grill is providing an authentic fusion of Cuban, Mexican, and Latin American cuisine, and is open for dine-in and carry-out, with catering services being worked on at the present time. The model is fun, trendy, and convenient and the operations have been finely tuned for expansion.
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- Website Design