http://www.ip.net/hayes-fin/newsletter0704.html (World Wide Web Directory, ~04/1995)
From: John P. Hayes, Ph.D., Monday, 4 July 1994 10:15 a.m.
Dear Friend:
America and Freedom! Precious words, wouldn't you agree? On this particular day, it's a good time to reflect on America's freedom, and the many benefits that we enjoy as a result. Least among those benefits is the opportunity to invest in a business of our choice, and succeed beyond our wildest dreams. That's what we call the American Dream.
Entrepreneurship is one of the by-products of freedom. In countries where freedom hasn't existed, or where freedom is limited, there's little, if any, entrepreneurship. But in the USA, anyone can be an entrepreneur, or a business owner.
Consequently, our government and our society have encouraged the development of businesses, many types of businesses, using various means of expansion. Since early in the 20th century, but particularly during the last 30 years, franchising has evolved as a popular mode of business expansion. In fact, the United States leads the world in the development of franchised businesses. There are more franchise opportunities here than in any other country of the world. Makes sense, of course, because we have fostered entrepreneurship, and along the way we've begun to institutionalize franchising.
In a country where creativity is not limited by laws, an entrepreneur (e.g., a franchisor) can identify a need, supply the need, and develop opportunities for other entrepreneurs (e.g., franchisees). As a result, more than 3,000 franchisors have created franchise opportunities in the United States. Not all of the franchisors survived, but some 2,500 are in existence today. They support, in the USA alone, nearly 600,000 franchised outlets. That doesn't mean there are 600,000 franchisees. Some franchisees own multiple outlets, and some are franchisees of more than one business concept.
Franchising flourishes in the USA. Without freedom, however, it wouldn't be an economic force, let alone an opportunity for thousands to control their own destinies via business ownership.
We often hear people say, "Only in America," in response to some amazing story, including stories of business success. It's an accurate reflection, no doubt, but similar amazing stories are now occurring in countries that only recently have been granted freedom. Hungary immediately comes to mind as an entrepreneur's oasis. New businesses, many of them franchises, are spreading throughout the major cities of Hungary. The same is true of other countries in the former Soviet Union. Russia, in spite of many problems that still exist, is experiencing a business boom, and franchising is a big part of it.
In fact, American franchising is a big part of the business boom overseas. At least 400 American franchises have expanded internationally, and a few of them are now headed into former Soviet bloc countries. This is not to say that franchise entrepreneurs in other countries aren't creating their own, home-grown franchise opportunities. They are! And some of those businesses are expanding into the United States.
The USA doesn't "own" or "control" franchising. But our freedom has certainly given us the opportunity to advance franchising, and to create franchise opportunities not only for Americans, but for people everywhere who have the freedom to start a business of their own.
All of this leads into the subject of this month's newsletter, which I've decided to call The American Dream Special. I want to feature six franchise success stories as an example of what some people have accomplished via franchising. Maybe you'll recognize yourself in one of these stories!
I discovered one of my favorite stories several years ago when I wrote Franchising: The Inside Story. It's about a man who, at age 39, was earning $15,000 a year selling worms from a greenhouse! He was looking for an opportunity to get ahead, and while flying home from a worm convention, he read an article about ComputerLand, which had recently begun selling franchises. "I knew the computer was the wave of the future," Bruce Burdick later told me when I interviewed him for the book, "and I wanted to be involved."
Bruce didn't know a thing about computers. He had never worked on a computer. But he contacted ComputerLand, and he had to sell them on the idea of allowing him to become a franchisee. They wanted someone with more experience. Bruce was persuasive, even though "everyone thought I was crazy."
"Here I was selling my house and moving my wife and four children to go into a business (in Kansas) that I knew nothing about. We took every cent we had -- $36,000 -- and borrowed $72,000 more to get into the business. We got back our $79 deposit for turning in our rental truck when we moved, and we used that to eat the first month," Bruce explained.
After three months, Bruce's business was in the black! Not too long thereafter he expanded the business, and eventually he would own 11 ComputerLand outlets! He soon moved his family into a three-quarters-of-a-million dollar home. He also bought himself a Rolls Royce!
Bruce said that even after he was successful, and the SBA had selected him as the Small Business Person of the Year in Kansas, people "still thought I was crazy." But Bruce explains, "Actually, I'm an opportunist. I keep my mind clear for new ideas." And that's how he achieved the American Dream.
When Carol's children entered school, she returned to college to complete a degree in environmental science. At age 36, degree in hand, Carol went looking for a job, but she discovered "there wasn't much available to suit me, by background, and my family's demands." She ended up working as a volunteer in suburban Philadelphia, Pa. That lasted only until she thought about investing in a business of her own.
On a tip from her husband, she investigated Lawn Doctor, a lawn care franchise, and discovered, "it was exactly what I wanted. It was diversified. It was running a business from an office, but it was also selling and talking to people, and it afforded me the opportunity to take time off when I needed to care for my family." With an initial investment of $10,000, Carol was in business for herself.
In her first year of business, Carol set a record for new Lawn Doctor franchisees. She sold more than $80,000 of business in one month! At the end of eight years, she was selling in excess of $250,000 annually. "I'm amazed," Carol said when I interviewed her for the book. "I never planned on earning what I earn today."
Interestingly, Carol's husband watched what was happening. Afterall, it was he who Lawn Doctor originally pursued as a franchisee. Once he saw his wife's success, Mr. Shaprio quit his corporate job and bought a Lawn Doctor franchise adjacent to his wife's territory. They decided to pursue the American Dream together!
Wrong choice of words! "Oh, but I do have a choice," Paul told his superiors. He resigned on the spot. He was 50 years old, and he went home and told his wife that they were going to sell the house, the second car, and move to San Diego, which was home to both of them.
"For 90 days after the move, we investigated business opportunities," Paul told me. "I looked at just about every franchise system available." Finally, he decided to buy a 7-ELEVEN. He invested $10,000, and without any retail experience, went to work in his own store.
"It just turned into an absolute boom," Paul said. "I never dreamed it would develop like this." In the beginning, his store grossed about $2,000 a week, but eventually the store's sales exceeded $2.5 million annually! To Paul, that was a bigger American Dream than he had ever imagined.
As a truck driver for Coca Cola, Harold earned $43 a week. Gradually, he moved up in the ranks at Coca Cola, and worked for the company for 17 years, eventually as a sales manager. He left, however, because, as he said, he didn't like corporate politics.
About that time, he discovered the Midas Muffler franchise. He wanted to own a Midas business, but he needed $12,000 and he had saved only $6,000. "So I went to my friends and borrowed all the money I could with no time limit to pay it back and no interest. I begged them for the opportunity to make a better living." Even so, he was able to collect only $5,500. "When I knew that I couldn't borrow any more, I flew to Chicago to convince Midas that I could do it even though I was $500 short. And Midas said I was just the kind of guy they wanted!"
Harold said he knew nothing about how to operating his own business, and he wasn't mechanically inclined. "But I saw this was a people business, and I could deal with people. I was a salesman all my life!" Harold went to work in his franchise on Long Island, NY, and within one year paid back all his debts. He immediately borrowed the money again, this time with interest (and the promise of free mufflers for as long as he remained in business), and opened a second shop.
Within 25 years, Harold's two shops grew to nine shops! And he was riding to work in his own limousine. "I feel like I own a piece of the Midas logo," Harold said. He certainly had achieved the American Dream!
"My only job experience was in the restaurant business," Ann told me, "so when I left my employer to investigate business opportunities, I decided to stay in this line of work. However, I didn't have the money to buy a franchise, but I knew how to do my homework so that I could get a loan through the Small Business Administration "
Ann admitted that "beginning a franchise is rough, and I don't care what you do. I found the paperwork to be more than I had anticipated. I had to devise systems to keep myself organized. And at first, the money wasn't there. It took me two years until I could see that it was going to pay me any money. I always knew it was going to work, but it took time, lots of energy, and prayer! I run my business on faith."
Once she got beyond the rough beginning, Ann opened a second Subway franchise, and planned to open three additional locations.
"I was dissatisfied with my life," Dave explained. "My sales territory had been altered. I was forced to travel 100 percent of the time. I was tired of living in Holiday Inns." With two small children at home, Dave said he wanted an opportunity that would allow him to spend more time with his family.
Dave selected Ceiling Doctor after spending two years looking at various franchise opportunities. "Ceiling Doctor would allow me to use my sales experience, and it was an opportunity to be totally in control."
On a scale of one to ten, with ten the desired number, Dave says he's a nine in terms of his happiness as a franchisee. "I have made as much as 75 percent of my previous annual income as a salesman in just 30 days working as a franchisee."
Dave's lifestyle has changed, much to his liking. "I've never played so much golf or taken so much vacation time." However, he also works hard, and sometimes keeps odd hours. For example, he noted that recently he cleaned a ceiling in a restaurant at midnight, when the business was closed.
Nonetheless, Dave treasures the independence afforded to him by his franchise. "I just have to answer to myself, and I like that."
THESE AMERICAN DREAM success stories are but a few of the thousands of stories that exist among America's franchisees. People from all walks of life have become successful business owners via franchising. Perhaps franchising presents opportunities for you, too. However, as always, I want to emphasize that franchising is not for everyone. Not all franchisees succeed. You must do your homework before you invest in a franchise. Read the franchisor's Uniform Franchise Offering Circular. And ask lots of questions -- especially of existing franchisees -- before you make an investment! If you do it right, you've got a good shot at pursuing your own American Dream.
The infomercial features many different franchisees, along with yours truly, talking about franchise opportunities, and how to investigate an appropriate franchise opportunity.
Viewers will be invited to purchase a series of six booklets that I've written exclusively for this program. The booklets address six important topics about franchising. Also included in the package, which will sell for $59.95, is an instructional video tape which enhances the booklets.
Hopefully you'll soon be able to see THE FRANCHISE MAN on your television set!
Athlete's Foot. Specialty athletic footwear and related active wear. $100,000 to $175.000 total investment.
Balloons and Bears. Balloon, flower, gift basket and party supply store under one roof. Total investment: $55,000
Bike Line. Retail bicycles and fitness equipment. $150,000 total investment.
Butterfields Etc. Retail gourmet kitchen store located in upscale malls. Merchandise mix includes high-quality cookware, largest assortment of kitchen gadgets, cookbooks, decorative ceramics, linens, cutlery and fresh roasted coffee beans. Total investment $130,000-$185,000.
California Closet Company. Custom storage solutions for residential and commercial applications. Total investment from $75,000 to $200,000.
Candleman Corporation. Selling candles and related accessories located in regional upscale shopping malls. Total investment: $150,000.
Coffee Beanery, Ltd. Gourmet coffee retail franchise. Total investment: $170,000-$240,000.
Color Tile. Specialty flooring wallcovering and window treatments. $151,000-$218,000 total investment.
Computer Renaissance. A computer store that recycles all types of computers. Total investment range $128,000-$194,000.
Deck the Walls. Art and custom framing. Up to $210,000 total investment.
Discount Party Warehouse. Retail and wholesale party supplies in a large warehouse concept. Total investment up to $300,000
Fastframe, USA. Quality custom picture framing done instantly and art sales. $150,000 total investment.
GNC. Vitamins, minerals and sports nutrition supplements for the self-care and personal health enhancement markets. Up to $175,000 total investment.
Golf USA. Golf equipment, accessories, apparel store. Total investment from $140,000-$250,000.
Gourmet Cup Coffee. Retail sales of espresso-based beverages. Up to $280,000 total investment.
Great Frame Up. Do-it-yourself and custom picture framing. Total investment of approximately $140,000.
Heel Quik! While you wait shoe repair, clothing alterations & monogramming. Total investment up to $130,000.
Little Professor Book Centers. Full-service retail book store. Cash investment between $60.000-$400,000.
Java Coast. Fine Coffee. Gourmet coffee, affiliated with I Can't Believe It's Yogurt. . $150,000-$250,000 total investment.
Music Biz Enterprises. Compact discs, cassettes, related accessories and novelties. $130,000-$175,000 total investment.
Naked Furniture. Ready-to-finish quality solid wood furniture and custom finishing. Total investment up to $245,000.
Once Upon A Child. New & used children's products, including toys, books, furniture and apparel. $91,000 to $121,000 total investment.
One Hour Motophoto & Portrait Studio. Photo imaging store featuring on-site one hour film processing, portrait studios and image related products. $137.000 total investment.
Party Land. International franchisor of party supplies. $79,000 total investment.
Petland. Pets and pet supplies specializing in pet care, housing and customer education. Total store cost ranges from $125,000 to $250,000.
Play It Again Sports. Sporting goods store offering savings on new, used and off price sporting goods. Total investment up to $163,000.
Pro Image. Sports fan gift and apparel shops featuring licensed, logoed clothing and gifts. $125,000 to $175,000 total investment.
Silk Plant Forest. Silk plants. trees and floral arrangements and other related home furnishings. $135,000 total investment.
Spectathlete. Retailer of authentic and replica sports team apparel. Up to $250,000 total investment.
Spring Crest Drapery Centers. Custom window fashion and exclusive drapery hardware. Total investment: $50,000.
United Consumers Club. Private consumer buying service. Members buy directly from manufacturers worldwide without retail profit markup, saving 50% compared to store prices. Total investment: $114,000.
Wicks'N'Sticks. Candles, room fragrancing products, wedding keepsakes and related home decorative accessories. Up to $183,000 total investment.
Window Works International. Custom window treatments and related decorating accessories. Total investment $60,000.
Meanwhile, if you have any questions about how to receive this publication, how to receive free information from the few franchisors listed above, or about franchising opportunities in general, please take to the time to fill out my Free Information Survey.
Best Wishes,
John P. Hayes, Ph. D.
(c) 1994 The Internet Presence & Publishing Corporation.
