What do you want out of life … today … this week … this month … this year? Each day you are working toward something, whether you realize it or not. If you have a plan, then you will find yourself being much more effective with your decisions, your task management, and your overall time.

The best gift you can give yourself is the gift of direction. Your goals should be tied to your Flow — the things that make you happy and happier. Make sure you goals are clear. If you cannot quite put your goals into words — then work everyday to reflect on the goals so that they become clearer. Additionally, make your goals measurable. You’ll never know when you have reached a goal, or are off course if you have not made the goal measurable.

For instance, if my goal was to be the president of a country, then most likely I will need to hold political office prior to running for the president position. The intermediate steps are measurements that allow you to stay on course to meet your ultimate goals. And finally, change is constant — make sure you review your goals to ensure your actions are still in line with you goals.

With more than 3,000 franchise companies in the country, there are enough franchise opportunities to make your head spin. It is important that prospective franchise buyers are well equipped with the knowledge to spot the franchising opportunity that matches their goals and provides the best chance of success. Whether targeting home-based, light industrial, or retail, it is the responsibility of the franchise buyer to be well informed and diligently investigate each opportunity.

Concepts do not change and adapt to individual franchisees’ goals and aspirations. Therefore it’s critical to understand management’s short-term and long-range plans for their brand. Some concepts grow more slowly and methodically, preferring to ensure the ultimate success of each location that opens. Other concepts try to open as many locations as quickly as possible, often with as many franchisees as possible, with the thought process that if 80 or 90 percent succeed, the brand will continue forward on a strong path. While this may sit well for the concept, it certainly isn’t positive if you are part of the 20 percent that lost your capital in the process. (A seasoned Franchise Consultant is an expert in streamlining this search and due diligence process into simple bite size pieces.)

The Federal Trade Commission requires all franchisors to disclose a Franchise Disclosure Document (FDD) to candidates at least 14 days prior to signing any contracts or collecting any money. The FDD is a legal document and its purpose is to disclose comprehensive information about the franchisor and the franchise offering, giving potential franchisees the tools to make educated decisions. The document is divided into a cover page, table of contents, and 23 categories called “items.”  Two of the 23 items contain pertinent information candidates should focus on.

Item 19, “The Earnings Claim,” is an optional disclosure under the FTC Rule. Many estimates state that approximately 20 percent of franchisors make a financial performance representation. The unit “earnings” are material facts that, if compelling, should be disclosed to new buyers by the franchisor. Item 20 provides an up-to-date account of the number of units and discloses all closures and sale transfers. Item 20 also provides the names and contact information of franchisees and former franchisees, who should be contacted for information in the due diligence process.  Franchise candidates should create a written checklist to help sort through the abundance of opportunities. Use the following key indicators to choose the right concept that will help you realize the financial and lifestyle rewards of successful franchise ownership.

1.Return on investment (ROI)/initial investment. ROI is directly related to the inherent risks of a particular franchise investment. If the ability for an investment to generate predictable returns is less certain, the risk is consequently higher. Request the average initial investment so you can project ROI.

2. Item 19 Financial Performance Representation (FPR). Item 19 is the answer to one of the first, and one of the most legally dangerous, questions asked by a potential franchisee: “How much money can I make?” Candidates should know, at a minimum, the average unit volume (AUV), average overhead (rent, utilities, etc.), and average operating costs (cost of goods sold, labor, etc.) to help compute net operating income (NOI). If no representation is made, one might wonder the reasons why.

3. Item 20 and the success rate. Franchise buyers should understand how many units have closed and the underlying reasons for failure. Dividing the number of closures by the number open for business will reveal the success rate.

4. Fee and cost structure. Identify and study all fees and costs associated with a franchise, including initial fees, continuing fees, equipment and food costs, post-term fees, advertising fees, penalty fees, and hidden fees and costs. Hidden fees and costs are a red flag as they usually indicate franchisor profit from equipment or supplies purchased by franchisees. Find out if the franchisor profits from purchases made by franchisees, in the form of vendor rebates. Also, recognize that the lowest royalty doesn’t equal the most profit.

5. History of litigation. Be wary of franchise systems with a long history of litigation. All litigation is listed in the FDD.

6. Support and infrastructure. Study and compare all support areas: initial training, construction (if necessary), grand opening support, ongoing support, marketing, technology, and so on. The more support franchisees receive for the initial franchise fee and ongoing royalty fees, the better.

7. Franchisee communication. Study the relationship between the franchisor and franchisee. Contact franchisees to discuss their satisfaction, but don’t limit your contact to existing franchisees. Contact former franchisees as well and understand why they left the system. Additionally, franchisee associations and participation in that association are indicators of a healthy system.

8. Product or service. A superior product and service with established and recession-proof market demand will increase your chances of success.

9. Systems and procedures. Much of the consumer appeal of a franchise system lies in the fact that, no matter where they go, if they patronize one of that system’s locations they’ll get the same quality of service and product they would get anywhere else.

10. Branding. Does the franchisor work harder to protect the integrity of the brand and to protect from litigation? The brand is a concept’s face to the world. It is the company’s name, how that name is visually expressed through a logo, and how that name and logo are extended throughout an organization’s communications. A brand is also how the company is perceived by its customers and the associations and inherent value they place on your business.

While each of the above items should be evaluated independently, it is imperative a franchise candidate consider each of the items in the aggregate. For example, a concept might have an extremely low royalty fee structure, but if their costs are substantially higher because of rebates paid to the franchisor from franchisee purchases, the lower monthly royalty is negated.  Business ownership is not for the faint of heart. It is hands-on, hard work, and long hours. However, for those who are willing to investigate alternatives prudently using a checklist encompassing the above key indicators, it can be extremely rewarding.

BONUS INDICATOR: The Dept. of Commerce reports that frnachise owners enjoy a greater than 92% success rate even 5 years into the business. So the risk is minimal when you pinpoint the right business fit that unquely fits you and your goals. The Franchise Connection is here is to help you.

Go on…what’s stopping you? Go ahead and ask your boss for a raise. Speak up the next time you disagree with someone. Call that person you met in the elevator. Start that business you’ve been talking about for a decade. Audition for the part. Enroll in Yoga. You fill in the blank.

Are you afraid? If so, congratulations! You’ve just identified the pool you need to dive into to reclaim your life. If you pass, however, claiming the water’s too cold or you just don’t feel like swimming today, the fear wins. And you lose.

“Fear stands between you and your ability to go anywhere you like, do anything you want, and meet anyone you please,” writes Rhonda Britten, author of several books on fear, including Fearless Living and Fearless Loving.

When we face fear, when we act in spite of the fear, we grow. As we expand, we push through our perceived limitations, out far beyond our comfort zone. We embrace freedom and become unstoppable forces in our own lives. And it feels sooooo good!

Making Fear Our Ally

As Britten notes, fear is the gatekeeper of our comfort zone. But we can make it our ally by using fear as a compass needle. Wherever the needle points—whenever fear raises its head and says, “Gulp!”—that’s where we need to go.

“Instead of causing you to shy away from situations that could result in the sting of failure,” Britten writes, “the fear gives you the impetus to take on new challenges.”

Britten’s books and Susan Jeffers’ classic Feel the Fear and Do It Anyway both offer plentiful suggestions for ways to get at and work through the fears that keep our lives limited.

Doing Scary Things Intentionally

Consider making it a practice to do at least one scary thing every day. Doing so begins to exercise a muscle that’s been atrophied for too long. Each and every time you take action rather than avoid you strengthen the muscle, building self-confidence, self-reliance and self-trust. You begin to say “I can” more often than “I can’t.”

Interestingly, taking calculated risks of a physical nature can often produce noticeable growth in our ability to confront fear in the emotional realm. For example, to learn more about his fear of going into business for himself, Michael rappelled down a cliff, something that had terrified him.

Michael discovered that fear is most present in the thinking about the event—not in the actual doing. When he thought of the future, a host of “what ifs” crowded his brain and kept him worried. But when he was actually rappelling, he was 100% focused on his task. Only when he let his thoughts wander from the present moment did the fear intrude.

Now, when he finds himself fretting about his future as a self-employed person, Michael focuses his complete attention on the task at hand and not the “what ifs.”   

As Ralph Waldo Emerson wisely remarked: “Do the thing you fear, and the death of fear is certain.”

Tammy, I have been working at a job for about 2 years, and I’m completely miserable. The pay is decent and also the benefits/yearly bonus. But I just can’t stand the job. I have an idea for a great business that I would love but I’m terrified of leaving the “security” of my regular “job.”

Being secure in something where you are miserable is an oxymoron and an illusion. If you are miserable you are not providing your best work. And if you are not providing your best work you are not as valued as you may think. Your misery is very likely obvious – and thus, management is probably already looking for ways to cover your responsibilities.

Your real risk is not in leaving to try something new but in thinking you can just stay where you are and keep things the same.

Here are five tips for having the courage to start your own business:

• Recognize “risk” is the sense that you are not in control. Preparation reduces risk dramatically.
• Start with your passion – build the business idea around that.
• Share your idea with everyone. No one succeeds alone. Find people whose skills compliment your own.
• Recognize that enthusiasm is contagious. Your enthusiasm will act as a talent and money magnet.
• Create a clear plan in advance. You can’t hit a target you can’t see.

 Sometimes the biggest risk is in not taking one. 

“Excellence is the result of caring more than others think is wise; risking more than others think is safe; dreaming more than others think is practical and expecting more than others think is possible.”

1. A great industry assures your success. Some franchisors point out how large an industry segment they address. While it’s generally important that you are addressing a growing market, this alone will not make you succeed. The franchisor’s training, marketing plan, site selection, how you implement their plan and many other factors will be more important to your success than just the size and growth trend of the industry served.
2. I can open my franchise for less than the franchisor predicts. Don’t mislead your franchisor. If you are overly optimistic and undercapitalized you may be doomed to failure–through no fault of your franchisor
3. Bigger is Better. The more franchises exist in a chain, the more successful they all must be. Great marketing, aggressive salesmen, and an attractive industry can cause a franchise system to grow even though there are better franchisors in the same industry. Call many franchisees and ask them how much TLC they receive. Then check in other systems to evaluate the satisfaction level of their franchisees. Sometimes, in their eagerness to grow, a system will “overpopulate” a city with many units causing each to steal business from others.
4. Never be the First Franchise in a System. Who could get more care and attention than the first franchisee to join? IF the franchisor has good experience in its industry and you are confident that they will be able to help you replicate their success, being the first should not be injurious.
5. There’s no need to hire an attorney or accountant until I return from Initial Training. Early mistakes can be costly. Be sure to have a professional involved before you sign a check to your franchisor.
6. I’ll use about 80% of the franchisor’s business plan, but I’ll modify it enough to fit my style of management and my town. If you buy a franchise, use their system. If you insist on doing it your way, you may violate your agreement and be terminated. Believe me, stick to the whole plan–or save your money and go it alone.
7. All franchise systems are about the same. Therefore, the biggest with the lowest price should be my choice. Each system has a culture of its own. Meet with the franchisor and meet or talk to several franchisees to see how you’ll fit in. Some franchisors now offer lower royalties as you gain experience and grow your business; minimal renewal fees and other features to show their commitment to your success.
8. When you buy a franchise, your success is assured. Any new business venture involves risk. You must be ready to work long hard hours to implement the franchisor’s business plan in order to succeed. The advantage is–you have a plan. The unknown is–how well you’ll implement it.
9. I’m sure my banker will lend me money when I find the right franchise. Bankers are more willing to finance franchises than independents. However, they may not believe in you or your chosen franchise like you do. If you are gainfully employed now, set up a home-equity loan before you quit your job. Or consider starting your venture debt-free my using your retirement funds. Then the choice will be totally yours–not a banker’s.
10. I know how to work with and manage people. If you have no (or a poor) experience in managing and working with a group of fellow employees, be sure to discuss this with the franchisor. In most systems, you’ll be hiring, motivating, and training several employees. Signing a franchise license will not change you. If getting away from the people on your current job is a major motivator–it may be time to reconsider.

Tammy Dias is the Founder/CEO of The Franchise Connection “TFC”,.

We provide no-cost assistance to entrepreneurs nationwide, helping them identify franchise business opportunities that match their interests, backgrounds and financial means.

TFC offers hundreds of business opportunities in a multitude of categories.

TFC is an affiliate of the world’s largest franchise network with more than 25 years experience helping entrepreneurs like you find and own their businesses.

Contact us at 1-888-943-8249 or tammy@YourFranchiseConnection.com.

This happens each and every time.  So I figured I would share the answer here on my blog.

It’s a simple answer!

The hottest franchise is the business model you own and operate that excites you when you get up each morning desiring to make a difference in the lives of your family and community.

It’s a business that will allow you to meet your professional and financial goals.  A business you have a passion about and it provides you a balance between work life and family life.

Having started an automotive business from scratch that was 24/7 and extremely busy with an Automobile Club of Southern California “AAA” contract, my life was not in balance.  (That’s a whole other blog post.)  Most Americans can’t afford (time & money) to learn about business “by the seat of their pants”.  Without mentors, no seasoned partners to teach me each aspect of the business (this was not a franchise I opened), I spent a whole lot of time and money “trying to figure it out.”  Successful, yes!   But this school of hard knocks has lead me to have a passion helping entrepreneurs avoid this so called “learn & burn”. It’s easier to have your capital working in a proven business model with a recipe for success already written and tested.  This is why I like Franchising.

So going back to the original question of “what’s the hottest franchise”?  The one you can enjoy that allows you to achieve your family’s goals with balance in your work life and family time.

Want to take years off your learning curve in starting and owning a small business?  Consider owning a franchise that uniquely fits who you are and what you want to accomplish.

By the way I can help you accomplish this and it’s been my expertise for the last six years.

Enjoyed this blog post?   Send me a shout out by email.  I thank you.  Tammy

Source: U.S. Small Business Association

Know of a business structure that has all 10 of these elements?

The answer is franchising.  As a franchise owner some of these tips are built into the franchise system.  The other items are available if you can follow their system to success.  Remember in a franchise you are working for yourself, but not by yourself!

Like to learn more about franchise opportunities please email tammy@yourfranchiseconnection.com

Put in the subject line “Top 10 Biz Tips” then provide your contact information. We are available to answer your questions about owning a franchise.



This scenario is familiar in a dating environment, but it also can characterize many business situations as well.  For those individuals who are exploring franchise opportunities, their first meeting with the prospective franchisor is essentially like a first date. It is an opportunity to make either a glowing first impression or as in the vignette above an opportunity to ensure a second date doesn’t occur.

Given the amount of advertising spent by franchise companies seeking to attract potential franchisees, an outsider may assume if an individual shows up with cash in hand and a pulse, they will be awarded a franchise. With the more discerning franchise companies, this simply isn’t the case.

In any business venture between two parties, both parties are interviewing and evaluating each other. There is no difference in a franchise/franchisee relationship. For the franchise company to be successful and therefore a good investment for potential franchisees, a fair amount of vetting must be done not only by the potential franchisee, but also by the franchisor.

If a franchisor does not perform due diligence in getting to know and qualify a potential franchisee, the franchise system can be damaged by poor validation and by under performing franchisees.

A franchise company that creates a dynamic of a two way interview with both parties being engaged fully in getting to know each other and determining whether they should “go steady” is a healthy franchise concept and one worth serious consideration.

How then can a potential franchisee put on their best front when approaching a franchisor and how should they act throughout the “courting” process?

According to Mark Titcomb, VP of CertaPro Painting Company, part of the Franchise Company, he and the franchise development staff at his company look to see the attributes of their successful franchisees demonstrated throughout the investigation process.

“We look for those general characteristics that are in our successful franchisees. We look for those that are charismatic influencers,” Titcomb said. “We look for those people who are good with people and building relationships.”

Titcomb continued on by saying they also look for candidates who can lead and inspire people without micromanaging and who can demonstrate through the extensive conversations occurring throughout the investigation process, they have the ability to follow a program and to execute a proven process.

“It’s critical that our potential franchisees be on time for all phone appointments, that they return calls, are respectful of others and are assertive and decisive,” Titcomb added.

Titcomb says their thorough process of investigation gives their candidates both the confidence and the skill set that will likely make them successful franchise business owners. They gauge whether or not their candidate will be a self-starter, is motivated and will take initiative. “These are all characteristics that they will need to get out of the gate and get their business up and running.”

Part of the investigation process should help determine to both the potential franchisee and to the franchisor that the franchise is a good fit. It should be noted at any time during the investigation one or both parties have the ability to stop the investigation and declare that it’s not a good fit. This discourse is a critical process and ensures both parties are going forward into a business venture both feel confident has a large likelihood of being successful.

At the conclusion of the investigation there is typically a Discovery Day. This is intended to be the “final date” before each party commit to each other. The candidate will have the opportunity to see the corporate headquarters, meet the franchise staff and demonstrate to the franchise parent they are motivated, interested and ready to move forward in their decision.

Sabrina Wall, President of The Franchise Broker Association, an elite membership association in franchise consulting company, echoes Titcomb in her assertion that potential franchisees be prepared and can demonstrate they can conduct thoughtful research and are at a point where their timing and financial position allows them to make a decision to purchase a franchise when the investigation concludes.

Mrs. Wall added the Discovery Day that candidates are invited to attend at or near the end of the franchise investigation process should be attended by the candidate only when they are actually prepared to make a decision. “They should be able to demonstrate to the franchisor that they are ready to go, their research is done and they are prepared to make a decision.”

Candidates investigating franchises should also be able and willing to demonstrate their credit worthiness. Being prepared to disclose items such as net worth, cash on hand to investigate and a willingness to submit to a credit check demonstrates to the franchisor they are a serious candidate worth consideration. In highly competitive markets, franchisors often will evaluate several candidates and make their decision to award a particular territory not only based on the candidate’s attitude and actions in the investigation, but by their ability to qualify for all financial obligations involved in purchasing a franchise. Franchisors want to ensure their new franchisee has enough capital to successfully participate in required marketing efforts, can purchase inventory and equipment, pay rent, insurance and other business related expenses for at least the first six months to a year. Candidates should be prepared to have an honest and forthright conversation regarding their actual financial position and ability to qualify for financing the franchisor may require for purchasing the franchise and any and all required capital equipment.

In the best situations, both parties show up to the restaurant, dressed to impress, are on time, engage in lively discussion and discover they are a perfect match. Individuals considering a franchise purchase, should put on their best interviewing/dating face and treat the investigation as the beginning of a long and productive relationship.

Most Wanted Franchisee Candidate Attributes:

1.    Being on time for meetings
2.    Being prepared and engaged in investigation
3.    Forthright and assertive communication
4.    Demonstrated ability to build relationships
5.    Understanding of general business concepts
6.    Respectful communication
7.    Ability to make a decision
8.    Ability to stay on track throughout the investigation process
9.    Can come to a decision within a reasonable period of time (generally 30-60 days)
10.    Can demonstrate a solid financial position and credit worthiness
11.    Demonstrated enthusiasm and interest in the concept
12.    General interest in employee management and development
13.    Ability to follow processes and proven franchise system

This is the question that is at the front of your brain while researching a franchise to purchase. It’s incredibly important. You need to know what to expect to determine if the franchise is a reasonable venture for you. The challenge you face is that 60% of franchises do not offer a Financial Performance Representation. This is a disclosure in the FDD (Franchise Disclosure Document) that indicates what Franchisees have earned within a franchise system. The fact is most Franchisors will not give you financial projections or financial information. How then can you proceed with any level of confidence?

As our client, we help you around this conundrum. You can obtain all sorts of financial information from the Franchisees. We have tools to help you draw out the financial information that will allow you to calculate your costs and earnings based on what other Franchisees have achieved. These tools include financial calculation spreadsheets and a list of quality questions directed at this aim to the Franchisee.

Remember, Franchisors can always give you information on cost and expenses. They just cannot provide financial information if it is not clearly stated in the Item 19 of the FDD.

We provide support tools and services to you free of charge. We are here to protect you during this selection process and to ensure you are seeing the whole picture, not just a piece of it.

Call us to request these valuable support tools.