Franchising Boosts Non-Profit Cash Crunch

FranNet non-profit businessThis week, FranNet takes an in-depth look at a growing trend in the industry regarding the participation of a non-profit company’s investment in franchising. The technical slang for this activity has picked up the moniker of “social franchising” and that name has stuck. What we’ve found is that individuals and families aren’t the only ones investigating entrepreneurial opportunities. Non-profits are looking to diversify their holdings, income levels and opportunities to offer assistance to those they already serve for the same reason—franchises can be a profitable and worthwhile addition to any business investment portfolio.

In almost every case, non-profits invested in a particular franchise to further their aims of providing sustainable income for the organization—while creating job opportunities for the people and services that benefit from them the most.

By now, we’re all more than a little weary of reflecting back on the atrocious economic years that the country is seemingly moving away from at this point. But its repercussions are not only still being felt, but may have also laid the groundwork for some out-of-the-box thinking when it came to the non-profit world. When the financial outlook of the country took a steep downturn, the donations, local grants and federal grants that non-profits relied on to operate certainly followed suit. So when some non-profit organizations began looking at ways to branch out and diversify both their holdings and income, franchising suddenly became a real avenue of interest.

Non-profit investment in the franchise realm, or social franchising, is not only a means of income to these entities, but also has the potential to offer additional means of assistance for the people they serve, as well.FranNet non-profit cash money

While most of the larger non-profit outfits often have significant assets at their disposal to venture into a social franchising realm, the process has not necessarily excluded many of the smaller and locally based charities from venturing into the same territory for the purpose of furthering their goals. There are several success stories you can read about, including a Buffalo, N.Y.-based non-profit church, which opened a Subway franchise as a means to offer job training and real work experience to those they were already serving in the community. Ten years later, the location and business are both still thriving.

As you can see, non-profit investment into the franchise world has the potential to create additional win-win situations. The investigation of a solid franchising opportunity can meet and exceed the needs of non-profit organizations in the exact same manner in which FranNet successfully matches up businesses with individuals. The potential for increased income comes with the added bonus of achieving the aspirations of many of the non-profit’s original mission statements. And that’s a good thing altogether.

Do you feel that you’re ready to get started? If this article has inspired you to investigate a franchise opportunity, perhaps it’s time for a free consultation with a qualified and experienced franchise consultant who’s right in your backyard. As it turns out, FranNet is just the place! As a franchise consultant company with a great track record of assisting individuals on their path to business ownership, make arrangements to speak with one of our representatives today.

Using an EB-5 or E-2 Visa to Establish a Business in the U.S.

Flag of LibertyIn this week’s blog edition, FranNet tackles a subject that has been in the news quite a bit lately. The focus? How can you invest or own a franchise if you are not a U.S. citizen? Fortunately for our industry, entrepreneurship and small business ownership is open to foreign investment and there are two different ways to go about it. Having a wealth of experience in guiding foreign investment to over 3,000 franchise category opportunities, we’ll cover both avenues for you.

 

For qualified candidates, the E-2 Treaty Investor and EB-5 Visas are the defined options for establishing the residency qualification necessary to own and operate a business on U.S. soil. But why are there two options—and what is the difference?

 

The E-2 Treaty Investor Path

This is a type of visa status necessary to own or operate a business in the U.S. Simply put, the E-2 Treaty Investor visa has the power to grant a foreign national a temporary stay in the United States in exchange for investment in a business or entrepreneurship. There are, however, strict requirements as such:

 

-       The candidate must be an investor from a qualifying treaty country, as determined by the United States State Department. The full list is available to view here.

-       The candidate must invest a substantial amount of capital in a U.S.-based commercial enterprise. In other words, an investment probably in the range of $100-150k U.S. dollars.

-       The candidate must retain an equity ownership standing with the business or commercial enterprise.

 

And here’s one other very important piece of information about the E-2 Treaty Investor option—you may only begin the application process after you have identified your franchise interest, signed documents and secured a lease for the business. FranNet encourages the participation of an immigration attorney during each step and phase of this undertaking.

E-2

The EB-5 Visa Path

This method is commonly referred to as the Immigrant Investor Program and is a pathway to permanent residency and citizenship in the United States, provided that several benchmarks are met. First, it’s much more expensive, requiring a business investment of $1 million for starting a new business, or $500,000 if the business already exists in a targeted business area. And the owner of the business must maintain an employment payroll of 10 or more at all times, past the two-year mark.

 

As with the E-2 Treaty visa, FranNet advises the participation of an immigration attorney during all steps. We’ve enjoyed a great track record of assisting foreign candidates through this process in the past, so if you know of an individual that could benefit from these processes, we’re standing by to consult with a free, no-obligation meeting.

 

Do you feel that you’re ready to get started? If this article has inspired you to investigate a franchise opportunity, perhaps it’s time for a free consultation with a qualified and experienced franchise consultant. As it turns out, FranNet is just the place! As a franchise consultant company with a great track record of assisting individuals on their path to business ownership, make arrangements to speak with one of our representatives today.

 

Consider a Resale Franchise

for saleYou’re considering going into business for yourself. Perhaps you’re looking into a franchise, but you’re not sure you’re ready to start a brand new franchise outlet. Even with all the support and systems in place to aid new franchisees, the thought of tackling a brand new franchise outlet can be intimidating to some. An attractive option for those individuals may be a resale franchise opportunity.

Franchises all over the country will routinely be resold by the previous franchisee for a variety of reasons. These outlets may be a little more “ready-made” for an immediate business opportunity, but not all businesses are created equal. Also, you may not even know which franchises are for sale.  Many times, the franchisee must work back through their franchisor in a resale opportunity.  Having the right guidance in your corner could go a long way toward finding you the right fit.  Plus, you still need to make sure you’re doing your homework if you’re investigating buying a resale franchise. There’s no substitute for performing your proper due diligence throughout the business investigation process.

Here are a few things to consider about a franchise resale:

FINANCES
The franchisee who owns the outlet now should be able to provide you a historical track record for the finances of the business. Ask to see balance sheets, tax returns and profit-and-loss statements. Understand from the franchisor how these numbers stack up against their other franchisees’ numbers in similar markets. Also, make sure you’re able to properly value the company based on that historical data. You may enlist the help of a knowledgeable CPA who can help determine the value of the business.

LOCATION
Given the outlet is operating, you may be limited with the location of the business. But a good location is critical to the success of some businesses.  If road construction, for example, has caused this business to now be “off the beaten path,” you’ll want to investigate your options for moving the business closer to the heavier traffic patterns. You’ll also need to check with the franchisor about other franchisees in the area and understand your ability to move the business without encroaching on another franchisee’s territory.

EMPLOYEES
Spend some time with the current employees. This could be your workforce should you invest into this business. Are they happy? Do they like what they do? What is hindering them or the business from growing? You’ll find the employees could provide some really good insights into the functionality of the business.

THE FRANCHISE ITSELF
Most important, you’re going to want to spend time with the franchisor to get a feel for your ability to succeed in this franchise. Does your skill set match up with this particular franchise? Does your budget allow for you to invest in this franchise, set it on a course for success, and include enough working capital for yourself? Make sure frannet long termyou’re talking with other franchisees in the company to get their feedback – talk to ones who are doing well, others who are average, and some who are struggling. Who are you most like out of those three groups? Does the franchise have training programs in place for initial and ongoing training? These are just a few of the questions you should consider when investing into a franchise. As we’ve put in the blog before, an educated buyer is the best buyer.

Do you feel that you’re ready to get started? If this article has inspired you to investigate a franchise opportunity, perhaps it’s time for a free consultation with a qualified and experienced franchise consultant who can help you with all the issues raised in this topic.  As a franchise consultant company with a 27 year track record of assisting individuals on their path to business ownership, make arrangements to speak with one of our representatives today.