The Silicon Review
Franchising is well-known for offering surefire methods for business expansion, and it is also considered a safe investment. Franchising opportunities will provide support and training to maximize your investment. The important factor to be considered is choosing the right franchise that will suit your lifestyle. Many franchises require less investment and can also be run from home on a part-time basis. Some of the opportunities that require high-levels of investment include food, retail and other real estate based franchises. Options must be researched thoroughly to understand the business. In all franchise opportunities, the franchisor will provide a well-developed way of doing business in exchange for monthly payment of royalty fees that can vary from a flat percentage, a variable percentage or a flat fee.
To identify the right franchise and implement the right investment strategy, you will need a consultant, and Frannexus is one such firm specializing in providing expert franchise consulting services. The company helps people follow a very systematic approach to franchise exploration based on the individual’s unique situation and what the investor finds most compelling as to brand, culture, and operating models to attain his/her goals and objectives via franchise ownership. Frannexus represents several hundred franchises across 20+ different industry categories and business model types that can meet most investors’ personal, professional, and certainly, financial goals and objectives. They help people navigate through the complexities of franchise exploration, focusing on only viable options that align the client’s personal and professional goals, risk tolerance, ROI expectations, and total investment comfort levels, thereby helping clients save time, and avoid potentially very costly mistakes. Frannexus has extensive experience with and understands the complexities of franchising, which can arise for both the franchisor and franchisee. They understand the need to combine significant business knowledge of the ever-changing franchise landscape with a thorough understanding of how quality franchise organizations are run and what they look for in ideal partners. Frannexus seeks to introduce their clients to the best franchise companies for them. Frannexus has the flexibility to operate across various industry sectors, including franchised companies in fields such as property services, personal services, fast food, manufacturers, real estate, auto, and many others. They also work with a wide variety of investment ranges and can help clients find opportunities that fit their investment portfolio and profile goals.
Frannexus was founded in 2013 and it is based in Dallas, Texas.
In conversation with Seth Lederman, Founder and CEO of Frannexus
Q. Why do you think there is a need for a dedicated consultancy for franchise acquisitions?
Investors exploring franchise ownership as a career transition option or for portfolio diversification strategy typically approach the internet to begin their journey. As valuable as the internet is, it is absolutely daunting. There is just too much information about franchises out there, and most of it is outdated, inaccurate, or purely promotional. It is complicated for anyone to navigate this without getting into overwhelm and ending up in the proverbial “paralysis by analysis.” By working with a franchise consultant and having professional guidance and expertise at their side, investors can begin their search utilizing a systematic and efficient approach to exploring franchise concepts. This can save investors countless hours, increasing the likelihood that they will end up with a franchise investment that will give them the greatest likelihood of the returns they are seeking.
Q. A franchisee must analyze all aspects of a franchise business model before closing the deal. What are the things a franchisor must be aware of? Are the risk factors the same for the franchisor as the franchisee?
The franchisee/franchisor relationship is paramount to the success of both. However, while franchisees are risking more capital for their individual investment than the franchisor, rogue operators and failed franchise units can damage a franchise system’s reputation and long-term brand equity.
Q. The long-term success of a franchise is dependent on many uncertain factors. How do you predict the longevity of a franchise business?
Several factors can determine whether or not a franchise has longevity, including its current track record of performance, the industry’s stability, the resistance of the product/service to economic shifts, and fluctuations. I always look at franchise opportunities and determine if I think that it has “10-year legs,” since that is the typical term length of a franchise agreement. If it doesn’t, it better provide a quick and robust ROI that would justify a short run with a fad concept.
Q. If you could highlight one specific aspect of your company as outstanding what would it be?
Our quest for constant and never-ending improvement. Our commitment to not “putting square pegs in round holes.” Aligning people with the right franchise, this is what has made us so successful year after year. We treat our candidates the way we would want to be handled through the process. This is a monumental life-changing decision, and we do not take that lightly. This process requires thoughtfulness, empathy, organization, and significant attention to detail.
Q. Does your company have any expansion plans within the next 12 months?
Over the next 12 months, Frannexus plans to implement initiatives that will result in major strategic leaps in expansion, innovation, and disruption as an industry leader and authority. We have just partnered with a multi-media platform that will focus on persona building, educational outreach, and brand development. Alongside this strategic initiative, I will continue developing relationships with the NFL and will be stepping into other sporting arenas, such as the MBA, NHL, and MLB. We will also be focusing on relationship development with Northwestern Mutual and other well-recognized financial organizations for investment portfolio diversification options for their clients as well as assisting outplacement organizations that specialize in career transition for outplaced executives. Furthermore, in 2020, Frannexus will be developing strong infrastructure and will be building a franchise recruitment model that will create a training and development “incubator” and essentially grow into an agency model for others interested in becoming a franchise recruiter. This will be the first disruptive model in outsourced franchise development. We are working with efficiency experts such as Ari Meisel, the best-selling author of “The Art of Less Doing,” and “The Replaceable Founder,” to build a business model around optimizing, automating, and outsourcing.
Meet the leader behind the success of Frannexus
Seth Lederman is an educator, consultant, and advocate for franchise acquisition and development. He has appeared on ABC, CBS News, wsj.com, NBC, and Fox News and has written two Amazon bestsellers, Guide to Marketing Your Practice Online and Simple Ideas, Extraordinary Results, and his forthcoming book, Profits is Better than Wages, releasing in Summer of 2020. He is a frequent contributing author to The Franchise Journal and is on the exclusive Forbes Business Council. As a small business owner, coach and consultant to businesses in a variety of industries, Seth helps established professionals find the freedom to work for themselves, freedom of time and freedom to live the life they’ve always desired. A media recognized authority, best-selling author and expert in the field of business development, his goal is to guide those with a natural entrepreneurial spirit to find their perfect business, franchise or business opportunity that meets their unique budget, goals, passion, and lifestyle.