Franchise Vision: Transform Your Future Through Franchise Ownership

By David Busker

Have you ever thought of starting a franchise business but don't know where to begin? Buying a franchise sounds like a smart shortcut to becoming an entrepreneur, but is it for you?

Best-selling author David Busker answers these questions and more in his new book 

• Language: English
• Publisher: Fourth Wave Publishing, LLC
• Release date: Nov 8, 2019
• ISBN: 9781733671712

David Busker

As a nationally renowned franchise consultant, best-selling author, and franchise owner, David Busker has helped hundreds of candidates navigate the transition from employee to entrepreneur. His insights from leading and starting various businesses, as well as a no-nonsense educational approach, have endeared him to candidates seeking franchise ownership. With deep experience in multiple aspects of business as a CEO, CFO, CPA, business owner, startup founder, and multi-unit franchisee, David is in a unique position to advise future entrepreneurs. David lives in Saint Louis, Missouri with his family. Learn more about David and get free resources at: www.franchisevision.com Follow David: LinkedIn.com/in/davidbusker Twitter.com/davidbusker Facebook.com/FranchiseVision

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FRANCHISE VISION

TRANSFORM YOUR FUTURE THROUGH FRANCHISE OWNERSHIP

David Busker

www.franchisevision.com

Copyright © 2019 by David Busker

Franchise Vision: Transform Your Future Through Franchise Ownership / Busker, David

First Edition November 2019

Paperback ISBN: 978-1-7336717-0-5

eBook ISBN: 978-1-7336717-1-2

Library of Congress Control Number: 2019918025

Published by:

Fourth Wave Publishing, LLC

P.O. Box 8483

Saint Louis, MO 63132-8483

[e-mail]

Copyright, Legal Notice and Disclaimer:

This publication is protected under the U.S. Copyright Act of 1976, and all other applicable international, federal, state, and local laws, and all rights are reserved, including resale rights.

Please note that much of this publication is based on personal experience and anecdotal evidence. Although the author and publisher have made every reasonable attempt to achieve complete accuracy of the content in this guide, they make no warranty or representation, whether expressed or implied, and assume no responsibility for errors or omissions, accuracy, completeness, or usefulness of any information. Also, you should use this information as you see fit and at your own risk. Your situation may not be exactly suited to the examples illustrated here; you should adjust your use of the information and recommendations accordingly. Meant to inform and entertain the reader, nothing in this book should replace common sense, legal, or other professional advice.

Any trademarks, service marks, product names, or named features in this book are assumed to be the property of their respective owners and are used only for reference. There is no implied endorsement of any product, service, or company.

CONTENTS

Introduction

The Emotional Requirement

Motivation 1: The Trigger

Motivation 2: The Positive Future Vision

Putting it Together: The Path Forward

Summary

Entrepreneur or Employee: Mindset

Incentives

View of Risk

Desire for Status

Scarcity vs. Abundance

Grit and Continuous Improvement

The Entrepreneurial Mindset

Summary

Franchising and Types of Franchises

Franchise Industries

The Franchise Continuum

Your Place on the Franchise Continuum

Summary

Franchise Cost and Return on Investment

Franchise Cost

Franchise Return on Investment – Time, Money and Talent

Jake: Little Capital, Seeking Career Change

Lisa: Lots of Capital, Seeking Transition

Rob: Lots of Capital, Investment Focus

Summary

Before You Begin: Build a Roadmap

Hire a Consultant or Go It Alone?

Setting Your Criteria

The Passion Trap in Franchise Selection

Summary

The Franchisor Discovery Process

The Franchise Development Team

Discovery Day

Summary

The Franchise Disclosure Document

Item 1 – The Franchisor, any Parents, Predecessors, and Affiliates

Item 2 – Business Experience

Item 3 – Litigation

Item 4 – Bankruptcy

Item 5 – Initial Fees

Item 6 – Other Fees

Item 7 – Estimated Initial Investment

Item 8 – Restrictions on Sources of Products and Services

Item 9 – Franchisee’s Obligations

Item 10 – Financing

Item 11 – Franchisor’s Assistance, Advertising, Computer Systems and Training

Item 12 – Territory

Item 13 – Trademarks

Item 14 – Patents, Copyrights, Proprietary Information

Item 15 – Obligation to Participate in the Operation of the Franchise Business

Item 16 – Restrictions on What the Franchisee May Sell

Item 17 – Renewal, Termination, Transfer and Dispute Resolution

Item 18 – Public Figures

Item 19 – Financial Performance Representations

Item 20 – List of Franchise Outlets

Item 21 – Financial Statements

Item 22 – Contracts

Item 23 – Receipt

Key Sections of the FDD

Summary

Validation: Talking with Other Franchisees

Making Validation Calls

Expectations for Validation

Topics for Franchisee Validation

Summary

Signing the Franchise Agreement

Do I Need an Attorney?

Review vs. Negotiation

Signing the Agreement

Summary

Financing Your Franchise

Cash on Hand

Selling Liquid Securities

Portfolio Loans

Home Equity Line of Credit

401k or IRA Rollover

SBA-Guaranteed Loan

Partners

Franchisor-Arranged Financing

Alternative Lenders

Multiple Unit Strategies

Speak with an Expert

Summary

Fear, Anxiety, and Roadblocks

Signing the Franchise Agreement

Your Spouse

Friends and Family

Professional Advisors

Summary

What to Expect After Signing

Training

Real Estate

Operations

Marketing

Summary

Conclusion: Visualizing Your Future

About the Author

Thank You for Reading

Start Your Journey Today!

This book is dedicated to my father, who risked everything to start his own business and provide a better life for his family. His spirit of lifelong learning and deep caring for others inspires me to be my best self.

Introduction

I grew up in an entrepreneurial family. My dad started his own business at age 42. He did not have a college degree, and we had no money. He worked in a low paying farm machinery mechanic position for many years but had a deep-seated desire to do something on his own. He worked weekends custom harvesting for landowners and finally built up enough money to start his own business. I think I inherited his itch, although as an academic kid, I followed the traditional education and career track of many white-collar professionals. It was great until it wasn’t.

After a pretty long tenure at a Big Six accounting firm, I spent five years with a Fortune 500 telecommunications firm where I was suddenly in the wrong seat one day when a new executive came in to head my department and brought his team from his former company. That was my first experience with the downside of being a corporate employee.

I next chose to move to a smaller regional company, where I could control my destiny better as a senior executive, joining as CFO and soon after being promoted to CEO. It was a good match with my skills, and I could build equity, which was the best of both worlds. Until the family that owned it put in place a new legal board of directors, who quickly decided that outsourcing the management of its real estate portfolio was the best decision. Now at the peak of my career, I was once again in need of a new direction. This was my trigger to take charge of my destiny and move to self-employment.

I had ignored the franchise consultants who chased me ever since my C-suite resume started floating around cyberspace. After a short stint with a startup company, however, I finally decided to sit down and listen after getting an email from a diligent consultant. After going through the process, my consultant did a great job adhering to my specific requirements and showed me a franchise that fit all my criteria.

I moved forward and started a franchise, a new boutique fitness concept, where I became the first location in Missouri and forged a new path to building a career that did not rely on an employer. I made the transition to self-employment by entering the world of franchising.

Being a franchise business owner has been a humbling yet empowering and deeply gratifying experience. While I’ve been tested in new, unanticipated ways, I’ve been rewarded many times over and created a lifestyle I’ve long sought. Today, I have control over my professional destiny. I work from home, set the schedule for involvement in my businesses, and enjoy prioritizing my family through a flexible lifestyle. I own a semi-absentee fitness franchise that generally requires five to ten hours per week. I spend most of my time helping others down the path of franchise ownership as a franchise consultant. As I grow more franchise locations, I can leverage my time even more.

So, as a long-time entrepreneur, small business CEO, franchisee, and now a franchise consultant, I wrote this book from a rich set of viewpoints. As a former CPA and CFO, analyzing risk and underwriting investments is second nature to me. As an entrepreneur creating new business models, I have learned that risk is mitigated through education, careful due diligence, and a willingness to do whatever it takes to succeed. As a franchisee, I have experienced the emotional arc required to move from employee to business owner, as well as the challenges and rewards of running one’s own business. Finally, as a father of triplets, I have learned that happiness is in the journey, not the destination. I hope you find my insights useful in your exploration of business ownership.

Deciding to start your own franchise business is a discovery process that requires an intense and emotional journey over a short period. Candidates for franchise ownership often move from zero knowledge of franchising to beginning their life’s most significant investment of time and money in about eight short weeks. This book is designed to mimic that journey chronologically and answer your most pressing gateway questions to learn if franchising is right for you and how to investigate a franchise.

After several years of working in franchising, I found a recurring need to educate my candidates and others about how to think about and investigate a franchise business. Franchised businesses take all forms—some are Fortune 500 companies, some are startups, and some are family-owned. Like any group of companies, some are good, and some are bad. The purpose of this book is to be a guide for you to investigate a franchise business and help you make a decision—yes or no—about whether a franchise brand is the right one for