Franchising has become a popular path for many entrepreneur oriented executives to following when it is their time to take control of their own destiny. Learn more about franchising, how it works and how to find the right one for you.

1. Presented by:
Marvin L. Storm

2. Types of
Entrepreneurs
• Extreme Entrepreneurs
• Innovator Entrepreneurs
• Founder Entrepreneurs
• FranPrenuer

3. Entrepreneurial Personality
• Lone Wolf vs. Team Player
• Entrepreneur vs. Franchisee

4. Understanding
Franchising
• Licensing Concept vs. Buying

5. Understanding
Franchising
Types of Franchise Structures:
 Direct Franchising
 Regional Developer
 Master Franchising

6. Finding a Franchise
Types of Franchisees:
 Unit Franchisee
 Multi-Unit Franchisee
 Area Developer Franchisee

7. Types of Franchises
Franchise Industries:
Business Services Franchises
Medical Franchises
Small Business Franchises
Senior Care Franchises
Recreation Franchises

8. Be Aware Of:
• Financial strength
• Experience level of
management team
• Validation of franchisees
• Litigation
• Mature vs. emerging franchisors

9. Acquiring an Existing
Franchise Location
• Same process as buying
a business
• Additional criteria:
Approval of Franchisor

10. Benefits of Franchising
• Brand
• Valuation at exit
• Learning curve reduced
• Technology
• Marketing
• Support
• Systems are a significant
competitive advantage

11. Right For You?
• No right or wrong answer

12. Right For You?
• No right or wrong answer
• But an answer that needs to
be answered.

13. Right For You?
• No right or wrong answer
• But an answer that needs to be
answered.
• Never become a franchisee
unless you are a team
player

14. Right For You?
• No right or wrong answer
• But an answer that needs to be
answered.
• Never become a franchisee unless you
are a team player
• Never rely on a franchisor
for your success – are only a
business partner enabling
your success – you still have
to make your own success

15. A Brief History
of Franchising
The Whole Story in an
Abbreviated Form

16. A Brief History
of Franchising
• What is Franchising?
- A French Word
- 1851 Albert Singer –
the First US Franchisor

17. A Brief History
of Franchising
• What is Franchising?
• Two Type of Franchise
Business Models?

18. A Brief History
of Franchising
• What is Franchising?
• Two Type of Franchise
Business Models?
-Trademark Franchising

19. A Brief History
of Franchising
• What is Franchising?
• Two Type of Franchise
Business Models?
- Trademark Franchising
- Business Format Franchising

20. A Brief History
of Franchising
• What is Franchising?
• Two Type of Franchise
Business Models?
- Trademark Franchising
- Business Format Franchising
- History of Franchise
Regulations

21. A Brief History
of Franchising
• What is Franchising?
• Two Type of Franchise
Business Models?
- Trademark Franchising
- Business Format Franchising
- History of Franchise Regulations
 The McDonald’s Story

22. The McDonald’s Story
Ray Kroc sells dozens of malt
mixers to a hamburger joint in
San Bernardino, CA

23. The McDonald’s Story
Kroc visits McDonalds to
find out what is going on?

24. The McDonald’s Story
Kroc learns about 15₵
hamburgers, fries and
malts?

25. The McDonald’s Story
Kroc acquires the licensing rights
from the McDonald Brothers and
returns to IL to launch a franchise
company
1st Franchise Location
in Des Plaines, IL

26. The McDonald’s Story
In the next 10 years Kroc’s focus is
on quality, convenience and a
consistent brand experience and
growing the franchise system to over
200 franchise units in the mid-
western states.
The advertising focused
on good food, fast and at a
good value

27. The McDonald’s Story
Kroc takes the company public in
1965 making millionaires out of many
of the original franchisees and they
say………the rest is history

28. A Brief History
of Franchising
• What is Franchising?
• Two Type of Franchise Business Models?
- Trademark Franchising
- Business Format Franchising
- History of Franchise Regulations
 The McDonald’s Story
 Fraud & Abuse in
Franchising

29. Why Are There Regulations?
• Stock Crash of 1929 lead to the Securities
Exchange Laws of 1933 and 1934.
• The Enron collapse lead to Sarbanes
Oxley disclosure requirements
• The recent financial malaise that began in
2007 will result in new regulations in the
financial community and banking industry
• The abuses in franchising in the 1960’s &
1970’s lead to the adoption of franchise
requirements by franchise companies

30. A Brief History
of Franchising
• What is Franchising?
• Two Type of Franchise Business Models?
- Trademark Franchising
- Business Format Franchising
- History of Franchise Regulations
 The McDonald’s Story
 Fraud & Abuse in Franchising
 UFOC in 1972-1978

31. A Brief History
of Franchising
• What is Franchising?
• Two Type of Franchise Business Models?
- Trademark Franchising
- Business Format Franchising
- History of Franchise Regulations
 The McDonald’s Story
 Fraud & Abuse in Franchising
 UFOC in 1972-1978
 FDD adopted in July 2009

32. A Brief History
of Franchising
Question?

33. A Brief History
of Franchising
The Next Step in Our Discussion
on the FDD is to review the actual
Franchise Disclosure Document