Franchises offer sound investment

Are you looking for a career change? Have you recently been let go by your former employer? This may be an opportunity for you. In the perfect world, franchising for the most part requires little no previous business experience. Why? Because franchises are proven success models.

The concept is for the prospective purchaser or franchisee to follow the outline/concept of the seller or franchisor’s pre-planned operation. The franchisee is buying a proven track record or franchisor’s experience, assistance and training. It often includes a building designed to the franchisor’s specifications and exclusive territory. The initial investment could be as little as a few thousand dollars to hundreds of thousands of dollars. There may also be royalty fees.



Franchise statistics

According to the U.S. Department of Commerce less than 5 percent of franchised businesses have been discontinued since 1985. The U.S. Small Business Administration reports that approximately 35 percent of new business start-ups are discontinued in their first year. After five years, approximately 90 percent of all franchises are still in business, mostly because the franchisee is trained to operate the business.

The franchisor has “worked out all the bugs” in the business, resulting in fewer operating decisions to resolve. But don’t think being a franchisee is a “piece of cake.” It is hard work and it could involve long hours. Also consider the degree of control that some franchisors exert may be too much. You must carefully investigate all aspects of the franchisor and understand the contract and be comfortable with it.



Liberty Tax Service

A variety of industries use the franchise method including restaurants, motels, real estate, car services, cleaning services, convenience stores, professional services and more. Around town, you can find several major success stories; one of these is Liberty Tax Service.

Liberty Tax Service is the third largest franchise in the country. In 2008 there are 2,700 Liberty Tax Service offices operating in the United States and Canada.

Bruce Stansberry, a franchise owner, said after 27 years in the tax business, including 10 with a local CPA firm, he decided to open his own business. He investigated several companies and decided that Liberty Tax Service met his specifications.

“I was impressed with Liberty Tax Service’s business system, marketing plans, and management team,” said Stansberry. “After attending a one-day sales seminar and meeting John Hewitt, founder and CEO of the company, I was convinced. The company is young, dynamic and forward thinking.”

Today, Stansberry has five franchises in Eastern Jackson County - two in Blue Springs and offices in Raytown, Lee’s Summit, and Independence. This is his fifth tax season.

Stansberry said that John Hewitt is a nationally recognized name in the tax and accounting world. He is the founder of two top tax preparation firms. Accounting Today magazine has named Hewitt seven times as one of the accounting profession’s top 100 most influential people. In January 2008, Entrepreneur magazine ranked Liberty Tax Service as No. 23 on its “Franchise 500” overall list of best franchises, No. 9 of the fastest-growing franchises, and No. 6 on the list of top 20 low-cost franchises. Liberty Tax Service is the only tax service included on Hispanic Trends magazine’s 2006 and 2007 elite list of the “25 Top Franchises for Hispanics.”



Franchise consultant

Stansberry is so impressed with franchising that he is a franchise consultant with My Franchise Path.Com. The company is a nationwide network of consultants in the business of matching people with the right franchising opportunities. The individual must have an entrepreneural spirit who knows he wants to own his own business.

“I work with the individual, check his background, financial situation, and then recommend three different concepts,” said Stansberry. “I turn the person over to the franchise company for future contact.”

He said he is paid by the franchise and his services are free to the potential franchisee.

“There are good opportunities out there,” said Stansberry.

You can contact Bruce Stansberry at 816-830-3245.