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Ken Perry
2101 Klattenhoff Drive
Austin, TX 78720
Phone: 512-656-2437
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Frequently Asked Questions on the Franchise Opportunity
What are the different franchise types and options?
Why should I work with a business ownership coach?
How can you provide these services at no cost to me?
What is franchising?
What can a franchise do for me that I couldn’t do for myself?
How does a franchisor make money?
How do you find the "hot” franchises or business opportunities?
What are some of the key statistics on franchise businesses in the United States?
 
What are the different franchise types and options?

Traditional retail products and services where the customer comes to the store

Mobile products and services where the provider goes to the customer

Home based businesses
The products and services include over 75 industries - - - everything from advertising to automobile repair, printing services to party supplies, real estate to rental equipment, tanning centers to travel agents and many, many more. For a more comprehensive list, click here.

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Why should I work with a business ownership coach?
Our coaches offer a highly organized and systematic approach that has already worked for thousands of people looking to buy a franchise business. Most of our clients learn of franchise opportunities that they never would have found on their own. And we provide our services at no cost to you.

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How can you provide these services at no cost to me?
There is never any fee or obligation for our franchise opportunity and ownership coaching services. We can provide services at no cost to you as we are paid by the franchisor. But this only happens if we provide outstanding service in finding you the
right franchise opportunity. As we work together, you will gain new insights about yourself as well as the franchising business. You can cease to investigate franchise opportunities at any time with no further obligation of any kind.

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What is franchising?
Franchising is a method of distributing goods or services to consumers. The franchise system owns the right to the trademark of the business. The franchisee purchases the right to use the trademark and business operating system.

Most people associate the word “franchise” with fast food restaurants, like McDonalds
or Subway. But, there are many more types of franchise businesses, including everything from advertising to automobile repair, printing services to party supplies and many more.

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What can a franchise do for me that I couldn’t do for myself?
A business franchise provides you with a proven business model and operating system. Remember those old sayings about not reinventing the wheel and learning from other people’s mistakes. People who buy franchises have a significantly lower rate of failure.

A 1999 study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of them were still open for business. The U.S. Small Business Administration study conducted from 1978 to 1998, found that 62% of non-franchised businesses closed within the first
6 years of their existence due to failure, bankruptcy, etc.

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How does a franchisor make money?
Usually a franchisor charges a flat amount called the franchise fee for the rights to operate a franchise. The fee is in addition to the costs to open the business in the franchisee’s chosen location. In addition, franchisors receive ongoing fees on sales or revenues that vary greatly but typically are in the 6% to 10% range. Most also collect
an advertising fee to support advertising and other promotional efforts. These too vary but usually range from 2% to 4% of revenues.

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How do you find the "hot” franchises or business opportunities?
There are many successful franchises, but not every franchise is right for every individual. Finding a "hot" opportunity is never our goal, nor should it be yours. Our mission is helping you find the right franchise opportunity. A franchise that matches
your goals, competencies, interests, financial capability and one that you believe has
the potential to achieve the results you desire.

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What are some of the key statistics on franchise businesses in the United States?
Did you know that:

Franchise businesses account for about 50% of all retail sales in the United States.

1 out of every 12 businesses is a franchised business.

A new franchised business is opened every 8 minutes of every business day.

Franchise businesses employ more than 14 million Americans.

There are an estimated 1,500 franchise companies operating in the U.S. doing business through more than 316,000 retail outlets.

More than 75 industries use franchising to distribute goods and services to consumers.

A 1999 study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of them were still open for business.

A U.S. Department of commerce study conducted from 1971 to 1997 showed that during that time less than 5% of franchised businesses were closed each year. Compare that to a U.S. Small Business Administration study conducted from 1978 to 1998, which found that 62% of non-franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy, etc.

Total sales by franchised businesses are projected to reach $1.7 trillion, this year.

In 2000, the median gross annual income, before taxes, of franchisees was in the $75,000 to $124,000 range, with over 30% of franchisees earning over $150,000 per year.

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