7-Eleven, A Good Choice?

After taking the evaluation, Franchising would not be the best idea for me. I only agreed with two questions asked. Personally following someone else’s success is not for me. It would be a safe move to make, but I would rather take the risk of having a sole proprietorship business. The company I chose was 7-Eleven. The required captial to invest is $200,000. I found that it would have great profit in the end. Instead of paying 7-Eleven a percentage of total sales receipts, I’ll be paying an amount based on the store’s gross profit. To start investing, 7-Eleven requires a one-time pay franchise fee, alone with a one-time pay gasoline fee, depending if the store have a gasoline location. There are 9 steps to becoming a franchisee of 7-Eleven, they are, applying sales manager interview, qualification testing, store selection, business planning, final interview, agreement signing, training, and becoming a new 7-Eleven franchisee.
As I read through the 7-Eleven Candidate Profile, I am not the type of person they would want running a 7-Eleven, the expectations the company has does not fit the criteria I would want as my business.

Is 7-Eleven the right opportunity for you?

It takes a special person to thrive with 7-Eleven. Here are some traits that indicate if you and 7-Eleven are a good fit.

• Are you a hands-on person willing to participate in the day-to-day operation of the store?
• Can you manage multiple tasks simultaneously and adapt to market and company changes?
• Can you hire, train and supervise employees? Are you willing to empower them and delegate responsibilities to them?
• Are you dedicated to operations excellence? Do you focus on the details?
• Are you committed to creating and managing an organization that effectively recruits, trains, retains and motivates people?
• Do you have a strong desire to build incremental income through execution and the ability to implement company programs and strategies?
• Do you have food service management or retail experience?
• Can you deliver an exceptional customer experience while maintaining a commitment to the core values of 7-Eleven?
• Do you support and understand your local community? Do you have strong ties to your community?

Those expectations for a business that isn’t mine is not something I would endure in. 7-Eleven provides, training, a business consultant, bookkeeping and account services, technology, property and equipment, merchandising support, advantages to control product distribution, and advertising support.

For more information on franchising a 7-11.

Subway

The company that I decided to get information about franchising is Subway. They are a food franchise with a required capital to invest from $80,00 to $310,000 and there total investment is from $50,001 to $100,000. One of the most well know food franchises out there with 35,146 restaurant and are also located in 98 different countries around the world. Subway has offered entrepreneur opportunities for 40 years. Now Subway has a very big reputation, not only for their very health food at a good price but for making their customer pick what they want on there sub and get to watch employees make it right in front of them. Customer services is very big to them and this is one way they show it to the customers so they can see where there food has been coming from. Now the firm may have an idea on where you could start a company in an area but if you can show them a plan on where you are going to have it, and why you think it will be a profitable spot to have it then they may go with where you want to have your store. But before that, the franchisees would have to do a background check to see that you are a reliable person with money and if you have a record or not. I would be like going to a bank and trying to get a loan. They are not just going to give it to you. They will do a background check and then look at your credit score and see if you pay your bills on time or if you are person that just miss paying bills or things that would show that you would not be a reliable person to pay money back. This industry does seem very interesting to me but the thing at would probably effect me at first is putting all time into the company to get it started. I know I would have to do it to get it started and that does not bother me. It is just I do not want to lose touch with my family from working twenty four seven. And for me I would not be able to have one in my town because all there is, is restaurant left and right. But maybe one day in another state I could start one.

My Franchise

Lawn Doctor has been around for more than 40 years with over 500 franchises set up in 4o different states. Lawn Doctor has also been rated number 1 consistently for over 30 years in the lawn care franchise industry business by Entrepreneur Magazine. My reasoning to blog about Lawn Doctor is because the lawn care industry has always interested me. With this franchise it will allow me to save money. My reasoning for this because although I would be investing a lot of money into the franchise, starting it on my own would be much more difficult. The great thing about this company is that literally anyone can do it. Lawn Doctor provides all its new franchisees with on the spot training. They also provide a support system on the way which will teach the franchisee how to run a successful lawn care business. Lawn Doctor helps its franchisees out tremendously when first starting out. They give the franchisee state of the art computer software to make it easier to run the business, they provide a fantastic marketing program which will provide more customers and more profit. The one thing about Lawn Doctor is that they want you to make money, and they will help you do so. They never leave you alone; they always have a staff of talented professionals there to help you out. Lawn Doctor also provides a lot of freedom though. Basically, when you buy the franchise, it is considered your business now, you just have to make payments to them then you keep the rest. Although people believe this is not the right path, but Lawn Doctor states that all of their franchises are in fact locally own, the owners of the franchise are just their as back up just in case. Critics of the lawn care industry proclaim that there is very little money in this business, yet the only money you spend is the initial investment then your franchise payments. Lawn Doctor has an average gross sale of 393,829 and a 69% average gross profit margin. There is in fact a lot of money to be made in this industry. New England is one of the busiest region of the United States for lawn care, whether it’s cutting grass, spring clean ups, and fertilizing lawns. To start this franchise, the investment is between 50,000 to 100,000 dollars, it is so expensive because you need to buy the right supplies and machines. I believe if I was to start this franchise in my home town it would flourish because there is a big demand for landscaping companies. As said in the book "Franchising has penetrated every aspect of U.S. and global business life by offering products and services that are reliable, convenient, and competitively priced". This is exactly what Lawn Doctor has done, and has done it very well. The website I used to find this information was Lawn Doctors, www.lawndoctor.com.

Cousins Subs is a solid and developed business model since 1972. This business has low investment and start up costs. It also has strong support systems in site selection, construction, training, marketing and operations. The franchise does indeed give me an exclusive territory for the length of the franchise. It recently signed for another ten locations bringing our total to thirty Cousins Subs shop within our territory. The franchise is doing extremely well and seems like it is growing fast within their territory. With their twenty five percent larger subs, the customers seem very happy with their quality of subs. Also, with their high quality ingredients and more efficient service, Cousins Subs is blooming around their territory. Cousin Subs has a very good reputation. They are understanding of consumer demands, and are honesty among the local firms holding its franchise. Cousins Subs is a professional marketing, merchandising and advertising support system. The firm will assist me with an franchise training program. The training is deliberate, extensive and effective. They will provide a full twenty one days of training that includes in-store and classroom sessions eight to fourteen weeks before the anticipated opening date of your store. This franchise is very understanding and is going to help you every step of the way. They can't hold your hand forever thought, you have to be prepared to give up some independence of action to secure the advantages offered by Cousins Subs. I am going to be well prepared in many way. I will secure my company, and make sure that the business is extremely successful. In order to be successful I will need the support of my family. With the support of my family, my franchise will grow rapidly and be successful around the world. I believe that the population in the territory will increase over the next five years. I see this franchise growing even more with the next few years. I hope to sign for another ten locations, and determined to continue to please the customers at Cousins Subs.

Charley's Grilled Subs

Samantha MacMillan

Strengths and Weaknesses:

I am interested in the food-franchising world so, I chose to direct my franchise towards sandwiches. From the selection I was given, I chose “Charley’s Grilled Subs”. The founder Charley Shin was inspired to make his own subs after making a wrong turn on his family vacation trip, stopping to eat at a local restaurant in South Philly, and discovering something so delicious that he could not forget it. Here, he experienced his first Philly Cheesesteak Sub, which changed his world forever. After coming back from his trip, he tried and succeeded in perfecting the creation of this delicious sub and ended up making a franchise out of it.

His franchise has been existent since 1991 and now resides all over the world from “Ohio to Hawaii to Alaska to Japan and beyond”. Some of the franchise’s keys to success are the training methods they use and the full-on support they provide to all of their franchisees. Because the franchisor is deeply involved in each of their franchisees, they were voted by QSR Magazine as the “Best Company to Work For” in 2009 and voted by Entrepreneur Magazine as “Best of the Best Quick Service Restaurants” from 2004-2009. It is extremely important for the franchisor to support and teach its franchisees in order for the whole business to be successful. If one of the franchisees was not properly trained and did things a different way from what the franchisor wanted, then that franchisee could be hurting the “Charley’s Grilled [Sub‘s]”good reputation. Managing and keeping track of employees in all the franchisees is crucial to the business. Another strength that this company has is financial advice and assistance. This franchise is doing a great job with balancing their incomes and distributing it throughout their franchisees. They are keeping a watchful eye on each of them and have been giving good financial advice because this company just keeps expanding. He now has about 400 locations in forty-six states in the U.S. and fifteen in other countries. The last significant strength that he acquires is marketing. Just from visiting his website, he makes the potential costumer feel intrigued about his restaurant and want to try out his famous Philly Cheesesteak sub sandwich. He uses technology quite well and even displays a fun video that explains how the company came to be. His marketing skills definitely made me interested in his franchise.

The only weakness that this franchise might display is expanding internationally. He has a lot of business here in America and not so much in other countries, when in comparison. The franchise has to accustom better to the different societies in order to get more business internationally. They have to adapt to different cultures like Sheika Lubna al-Qasimi has done and work to perfect the needs and wants of the customers in that particular society.

Did your search give you enough information to answer most of the questions in Figure 5.8?

Unfortunately, the website that led me to the franchise’s information was not enough so I had to use Google and other websites to look further into the franchise. I needed to know more about the locations of the franchises, an actual estimate of the numbers of franchisees Charley owns, and other information pertaining to marketing and finance.

For the video: http://www.charleys.com/about/

H&R Block Franchises

http://www.youtube.com/watch?v=nXDfIFscbiM&feature=player_embedded

My results from the Interactive Self-Test said "Franchising appears to be appealing and would probably fit your personal business needs." The franchise I would pick is H&R Block. which is a tax preparation company. There are 12,500 retail offices in the United States and another 1,400 abroad; which is twice as many as their nearest comp. If I were to consider owning a H&R Block franchise I would look at all the benefits. If you have an existing business then you get cash payment for converting it and royalty rebates would apply to existing clients for the life of your agreement. H&R Block would contribute 80% of the purchase price if you wanted to acquire competitors to grow your business. The franchisor would offer marketing support such as television, internet, direct mail, and public relations campaigns. Training is offered to the franchisee and their employees and they provide you with supieror software, office technology, and products to help you provide your clients with the best experience possible. H&R Block has been in business for over 55 years and as a franchisee you have that support behind you. This company is the largest tax network in the United States and the most people trust this brand name. When you are thinking about the financing of purchasing a franchise, they give you a few options such as: an annual payments term loan and a revolving line of credit. There is a low initial investment cost; in fact there is no initial fee just a fully refundable $2,500 security deposit. As a franchisee you have to pay for expenses such as furnishing and running your office.

All this information was found right on H&R Block's website under their franchising section. There was a lot of helpful information and it answered almost all the questions on page 142 in the chart. Any other information that was not on the website you could find out by visiting a branch and have the owner talk to you and they would know from first-hand experience. Also, on the website it says, "Additional information is addressed in our Franchise Disclosure Document (FDD) which you will recieve as part of the application process." There is also a link that says, "Request more information now". I don't think it would be difficult to find out all you need to know when making the decision in becoming a franchisee.

GNC

The franchise I have chosen is GNC. GNC is a supplement and vitamin store in which you can buy products that range from daily vitamins to whey protein. GNC stands for General Nutrition Standard and it has been a leader in nutrient supplements for 76 years. The startup cost for a GNC can range from a required capital of $85,000-$100,000 to a total investment of $100,001-$200,000. I am willing to take a risk in this company because I feel that in today’s society many people are focused on their health so there will be an increase in people taking vitamins to keep themselves healthy. This provides a business opportunity with limited chance of failing because everyone wants to live a long healthy life and through GNC they are able to do that; so for this reason I feel that the chance of failure is extremely low. A low chance of failure should make every franchisee excited because this is how they make their money. A franchisee is the person who buys into the company by buying a franchise.  Another reason is that in all the information I have read plus my personal experiences visiting the store I have acknowledged that the people that work at GNC are well informed about their products and provide you friendly service. Another reason I would be willing to invest in starting a franchise in GNC, is that I have used their products before. I visit the store just about every other month to get more protein. I have always been satisfied with the products I have bought from them and would be willing to branch out and start my own store.  Some facts to support my case is that GNC has been ranked the number one vitamin retail franchise for twenty-two consecutive years and in 2011 they were ranked number forty in franchise 500. Some background information on GNC is that it opened in 1935 and began franchising in 1988. Terms of agreement last for 10 years and the royalty fee is 6 percent.  All of this information makes it seem like a no brainer to start a GNC franchise.  

http://www.gnc.com/home/index.jsp visit this websight to recieve more information about GNC and the products it sells.