BWM - August / September 2014 - page 99

opportunity,” said Dan Smith, CEO of
Bevintel, a beverage inventory manage-
ment franchise ser vicing bars and
restaurants.
To offset this, a number of franchise
businesses offer in-house financing
programs. “We finance 50 percent of the
franchise fee, which sends a strong
partnership message to the franchisee,”
Smith said. Similarly, U.S. Lawns, Help-U-
Sell, and Heaven's Best Carpet Cleaning all
offer some form of in-house franchise
financing options.
“So far this year, most new franchisees have
taken us up on our in-house financing,” said
Heaven's Best CEO Cody Howard. “We
require $14,450 up front, and we will
finance the balance of $14,450 over a five-
year period.”
CruiseOne, a travel agency franchise
specializing in the cruise business,
discounts its franchise fee for people with a
successful track record in the travel
industry, according to CruiseOne's Senior
August-September 2014 | BusinessWorld | 99
V i c e Pr e s i d en t De b b i e F i o r i no .
Experienced franchise candidates with the
appropriate certifications can save up to 95
percent on their initial franchise fee based
onhowmuch they'vemade in the past.
In the last several years, many franchise
companies have taken steps to reduce the
financial burden of running a franchise by
reducing franchise fees, eliminating office
space and vehicle requirements, and
working with vendors to negotiate the best
deals possible for franchisees.
“We have a long-term track record of
success with suppliers,” said U.S. Lawns
President Ken Hutcheson. “That's helped
sweep the issue of payments off the table, so
franchisees can lease trucks, materials,
supplies, and equipment at little to no
expense in the earlymonths.”
“We have vendor relationships that give
very healthy discounts to franchisees. And
we also allow franchisees to do their
shopping at the local level if they can find a
better price,” saidRobbKing, vice president
1...,89,90,91,92,93,94,95,96,97,98 100,101,102,103,104,105,106,107,108,109,...196
Powered by FlippingBook