Financing the franchise of your dreams. (Special Advertising Section).

You have given it a lot of careful consideration and looked at all of your options. You have decided that you have what it takes to be an entrepreneur. More specifically, you have decided you want to be a franchise owner. A key issue you should consider before buying the franchise of your dreams is financing.

When thinking about financing your franchise, your first source should be savings, family and friends, partners or investors. Regardless of the type of financing yon seek, you'll still probably be expected to foot 20 percent of the total costs. Also, to support yourself during the start-up phase, you will want to set aside enough money to sustain you and your family for at least one year.

The total projected costs to acquire and develop a franchise vary widely from franchisor to franchisor and from industry to industry. For example, a store in a fast-food chain could cost well over $500,000 for construction, equipment and inventory, whereas a temporary services placement franchise might be opened for under $25,000. Make sure you fully grasp the cost of operating your choice franchise. The Uniform Franchise Offering Circular (UFOC) is a mandated disclosure document that will give you a wealth of information about that franchisor, including initial costs, franchise fees, and royalties.

Will you operate out of a storefront or office building? Some franchises require a warehouse, factory, or processing facility. Your overhead costs will depend on location. A number of franchises are offering low-cost alternatives to traditional storefronts by selling kiosks, which are enclosed semi permanent structures typically found at shopping malls and sports arenas.

Think long-term in your planning. Many franchisors are looking to multi-units. Meaning, they want franchisees that are interested in owning several outlets and developing entire territories. There are internal kinds of financing programs that exist, including those available through Dunkin' Donuts, BaskinRobbins, IHOP (International House of Pancakes), and FastFrame. Some franchise companies, such as Blimpie Subs and Sandwiches and ServiceMaster Clean, have special finance programs geared specifically for minorities. Bond's Minority Franchise Guide profiles some 500 franchisors that seek to increase minority representation. Statistics show that Franchisors who offered financial assistance had a 12 percent minority ownership rate, while those who did not had only a 4 percent minority ownership rate.

Minority candidates should look beyond franchisor financing. Most would-be entrepreneurs automatically think of talking to a bank. However, you won't get any money unless you can completely collateralize the loan through your own personal assets. You can increase your odds by going to national finance companies, which offer franchise candidates better interest rates, loan terms and conditions. "We have a list of franchise companies with different ratings based on number of locations, financial strength, and frequency of store closures," says Rick Anderson, general manager, Franchise Finance (501-228-4047; www.franchise-finance.com).

Another financing option is companies that basically finance or lease commercial equipment. For instance, GE Capital (800474-2704; www.cefcorp.com/eommequip), a division of General Electric, provides equipment management, mid-market and specialized financing, and other services to small businesses. It offers construction, remodeling and equipment financing specifically to franchises.

Don't overlook viable franchising resources provided by government-sponsored agencies, such as the SBA (Small Business Administration), the Commerce Department's Minority Business Development Association (MBDA), and local community and economic development corporations. "Anybody who is a minority should take a close look at those franchise companies listed on the SBA Franchise Registry (www.franchiseregistry.com). The SBA has streamlined the application process for would-be franchisees seeking guaranteed loans from preferred lenders," says C. Everett Wallace, vice chairman of the International FranchiseAssociation's minorities in franchising committee and co-founder of the National Minority Franchising Initiative(NMFI; 615-221-3969; www.minorityfranchising.com).

The most important thing when considering purchasing a franchise is research. Investigate the franchisor's training programs, ongoing operating support, and purchasing power (e.g., discounts on supplies and inventory). The most valuable source of information on any franchise system is existing franchises. "Visit and talk with three or more franchisees to find out where they got their financing from," advises Wallace.

It is critical that you do your homework and that you make sure that a particular franchise is the right one for you. After all you don't want to put your life savings into a business without making sure is something that will support you over the next 20 to 30 years.

Merry Maids

Securing capital to start a new franchise can be one of the most important steps the owner of an advent business faces. Depending on the type and size of franchise, start-up costs can reach into the several hundred thousands of dollars. The start-up costs for a Merry Maids franchise are generally lower than that necessary for restaurant or automotive franchises, but still require the prospective owner do his or her financial diligence.

Franchising provides new owners a good business model, but is certainly not a guarantee that everyone will succeed in their business venture. Under capitalization can be a recipe for failure in the opening of a new business. There are several routes to explore and Merry Maids suggests that all be thoroughly investigated. Certainly prospective owners who have a close working credit relationship with local banks should explore those avenues, as well looking into the availability of SBA loans.

Merry Maids has an additional source of credit available to qualified applicants through ServiceMaster Acceptance Company (SMAC). By going through SMAC, new owners are able to finance up to 80% of the franchise fee, assuming they meet all credit criteria. Although there are several options open to all new Merry Maids franchisees, over 80% of them opt tot SMAC financing. One of the major reasons they do is that Merry Maids and ServiceMaster have intimate knowledge of our service business operations, something that most other lending institutions do not possess.

A new Merry Maids franchise license sells for $24,000, and it is recommended that the prospective owner(s) have at least another $25,000 available to help grow the new business as quickly as possible. Assuming a 20% initial down payment for the franchise fee, around $30,000 in liquidity is required to open a Merry Maids franchise. In any case, thoroughly investigate all avenues of capital for your new business so that when the final decision is made, you are able to hit the ground running and to do so for the long haul.

Subway Restaurants Supports the Franchising Dream

For 37 years the Subway chain has been providing would-be entrepreneurs with a way to build and succeed in their own business, and it realizes that minorities play an important role in the expansion plans of the franchise. This has led to the chain's commitment to offer financial assistance for the majority of the franchise fee, as well as help in leasing and equipment expenditures.

At Subway Restaurants you not only benefit from the experience of a proven business model, but you also have the continued support of a network of seasoned professionals at headquarters and in the field. In fact, the Subway concept is the envy of the quick-serve industry and has earned Subway a place in franchising history.

"The foundations for the Subway system are keeping the business simple, providing good support and offering good control systems," says Fred DeLuca, president and co-brander of the Subway franchise. "Small restaurants, low overhead and a very low initial investment-all these things attract franchisees."

Additionally, it is important to note that Subway franchisees have a great enthusiasm for expansion. In fact, each year nearly 70% of new Subway franchises are sold to existing franchisees who are reinvesting in the business.

Of course, in addition to a successful business format, Subway otters a strong brand image as a healthful alternative to fatty last food. With its fresh, great tasting, made-for-you sandwiches and salads, many with 6 grams of fat or less, Subway has become a popular destination for health-conscious consumers.

But don't just take our word for it-do your homework, investigate, study and compare-and we're sure you will find that the Subway franchise system lives up to its reputation as the number one overall franchise opportunity. *

* Entrepreneur magazine's annual Franchise 500, January 2002. Subway Restaurants has been number one for 10 of the past 14 years!

383 Strand Industrial Drive Little River, SC 29556 Ph: [phone] Fx: [phone] [e-mail] www.jan-pro.com

Over the past decade, JAN-PRO has given individuals and families the opportunity to gain financial independence and unlimited growth potential by joining the premiere company in the commercial cleaning industry. Combining sound business practices and innovation, JAN-PRO's franchise program is designed to assist you every step of the way and in every aspect of business. You become your own boss through the guidance and support of an established franchise organization.

Five years ago, Eleanor Venable was a supervisor at a pharmaceutical plant in Philadelphia. She also worked part time at night cleaning offices for someone else. Eleanor decided to go into business for herself and looked into franchise cleaning companies. She chose JAN-PRO because of the initial low investment.

"JAN-PRO had a plan that worked for me," says Eleanor. "I have grown my business from a start of $8,000 in 1997 to my current volume of $150,000 per year, and the support has been wonderful".

JAN-PRO, named one of the top 20 low-investment franchises for 2002 by Entrepreneur Magazine, offers new franchisees training and an initial slate of clients in addition to help with financing. It was precisely such support that appealed to Eleanor, who was a business novice when starting out. "I had customers as soon as I completed training. I also received marketing, insurance, and bonding, and they handle all the paperwork," says Eleanor.

Once your business is established, it's time to expand. There is no limit to how large you can eventually grow your business. The JAN-PRO program is designed for the individual owner to grow their business in manageable steps, with various investment programs.

Eleanor Venable is one of over 1,500 JAN-PRO franchises nationwide. JAN-PRO offers internal financing programs for minority franchisees and is committed to helping you succeed.

Business:           Commercial Cleaning franchise
Established:        1991
Number Franchises:  Over 1,500 in U.S. and Canada
Investment Required: Units - As low as $950 down
                     Masters - $10,000 per 100,000 population
Available:           U.S., Canada and international
Web Site:            www.jan-pro.com

Church's Chicken[TM]

As a member of the AFC Enterprises family, Church's Chicken[TM] has over 1,500 locations in 28 states and 12 countries. The Church's success story began in 1952-across the street from the Alamo in San Antonio, Texas. Since then, Church's simple operating system and the consumer's passion for great tasting chicken have made us one of the global leaders in the quick service restaurant industry.

Our chicken has "crave appeal" which keeps our consumers coming back time after time for a unique, homemade taste that only Church's can provide. Our signature Honey Butter biscuits, jalapeno peppers, and fried okra are delicious compliments to our marinated fried chicken.

Church's has grown successfully in both International and U.S. markets. Multi-unit development is a fundamental element of our global strategy and a requirement tar establishing brand presence. Church's also continues to focus on growing the ranks of minority and women franchise partner's. "Church's will continue to create opportunities that benefit the people and communities who are at the heart of our customer base", says Hala Moddelmog, President of Church's Chicken.

Remaining consistent with AFC's vision of The New Age of Opportunity Church's has positioned itself as a brand for the future. By focusing on cultivating relationships with suppliers, communities, attracting valuable employees, and expanding franchise ownership opportunities for minorities and women; Church's has the formula for success.

Worldwide, a proven strategic business system, a framework for diversity, and a great product that equals a valuable brand--are you hungry for an opportunity?

For more information contact 1-800-639-3495 or www.churchs.com.

Liberty Tax Service

Liberty Tax Service is the fastest growing international income tax service ever, with 611 offices operating in the United States and Canada. In just five years, Liberty has grown to the size it took the other national tax franchises ten years to realize. The certainty of taxes coupled with low start-up costs and a growing market of taxpayers make the Liberty opportunity an alluring one, even in recessionary times.

In the January 2002 issue, Liberty Tax Service was ranked as #50 on Entrepreneur magazine's list of top franchises. BLACK ENTERPRISE named the Liberty franchise opportunity as one of the most affordable.

In addition, Accounting Today has named CEO and Founder John Hewitt as one of the top 100 most influential people in the accounting industry for the past two years.

One of Liberty's most valuable resources is the tax industry experience of the top management team and headquarters staff-over 300 years total. Franchisees tap into a refined and proven operating system with training and support in marketing, tax information, tax software, and operations. We welcome franchisees from all walks of life and do not require prior tax experience. Liberty Tax Service is a participant in the National Minority Franchising Initiative and works to help all potential franchisees explore available sources of financing.

Norfolk, Virginia franchisee Vincent "Truck" Jackson was putting ot fires when he discovered the burning desire to enter another service profession. "I have worked as a firefighter for the past twenty-three years and wanted to be financially secure while owning my own business. Since becoming a Liberty franchisee three years ago, I've moved up the ranks to the position of captain while providing the satisfying and rewarding service of tax preparation.

Join a winning team! Find out more about our franchise opportunities. Call 800790-3863, or visit www.libertytax.com.

THE COVERALL MODEL FOR SUCCESS

By analyzing successful business prototypes and modifying them to fit the unique needs of the commercial cleaning industry, Coverall Cleaning Concepts (has developed an unrivaled model for promoting entrepreneurial success. The success formula is a combination of business programs and support systems that focus on meeting the needs of franchisees and customers alike. Divided into three distinct components, the programs consist of the Start-Up Phase, Operating Phase and Growth Phase.

The Start-Up Phase includes a comprehensive 10-step training program, covering virtually all aspects of the commercial cleaning business. The hands-on training introduces franchisees to innovative cleaning techniques, the latest technology, management, sales and marketing, as well as environmental, safety and security procedures. A beginning equipment package, an initial customer base, financing options and national membership opportunities are also included.

The Operating Phase continues to build on the solid relationship between Coverall and its franchisees. With Coverall providing customer relations, billing and collection and cash flow protection services, franchisees are able to focus their attention on the customer by providing top-quality, superior work, while avoiding many of the pitfalls that can plague independent small business owners. As an added bonus, Coverall's vast resources allow franchisees to take advantage of the cost savings obtained through volume buying.

Once a Coverall franchise is up and running, the growth potential is virtually limitless. It is during the Growth Phase that franchisees are provided with national marketing support to enhance and augment local initiatives as well as regular, ongoing, and advanced training for specialized services.

Coverall stands apart from the competition with its comprehensive training and support program that is designed to help new entrepreneurs build a solid foundation for their business. Our industry leading approach to Franchise Owner education and support, cutting-edge systems and the latest technologies are key to Coverall's burgeoning success around the world-with more than 6,000 Franchise Owners servicing over 32,000 customers in 75+ metropolitan areas throughout the world.

Choice Hotels International

Choice Hotels International is one of the world's largest hotel franchising companies with over 5,000 hotels open and under development worldwide. The company franchises under the Comfort Inn[R], Comfort Suites[R], Quality[R], Sleep Inn[R], Clarion[R], MainStay Suites[R], Econo Lodge[R] and Rodeway Inn[R] brand names.

With over 60 years of successful hospitality and franchise development experience, we understand what it takes to succeed and how to get there. Choice Hotels[SM] is focused on providing franchisees with a solid return on investment by offering a proven portfolio of resources.... All designed to help you create and maintain the best hotel for your unique needs.

Choice Hotels provides:

* Strong reservation delivery through our state-of-the-art system.

* Effective property management systems that ensure cost efficiency.

* Strong national marketing and advertising.

* New hotel services to assist with every detail of opening your hotel.

* Ongoing training and continuous field support.

In recognition of the under representation of certain groups in the hotel industry, Choice Hotels recently launched a new incentive program. The incentive has been launched to attract African-American and other minority entrepreneurs who wish to build a Choice-branded hotel, convert an existing hotel to a Choice brand, or purchase an existing Choice-branded hotel.

Approved applicants will receive up to $200,000 in incentives for a midscale brand hotel or $50,000 for an economy brand hotel. To be eligible for the incentive, minority, owners must hold a 51% ownership stake and meet all other franchise criteria.

We are committed to recruiting new minority franchisees and invite you to join the Choice Hotels family. For more details regarding this incentive program or to learn more about franchise opportunities with Choice Hotels call Maria D'Ambrosio, Corporate Engagement Specialist at 301.592.6258, visit choicehotelsfranchise.com, or email us at franchise [e-mail].

7-Eleven, Inc.

7-Eleven, Inc. founded in 1927 in Dallas, Texas, is the premier name in the convenience retailing industry and the world's largest operator and franchisor of convenience stores, with over 5,800 7-Eleven and other convenience stores in the United States and Canada. Of these, approximately 3,300 are operated by franchisees, mostly in the Midwest, the Northeast corridor, and West Coast. The remainder are company-owned stores.

In addition, approximately another 17,000 7-Eleven stores are owned and operated by area licensees in the United States and 18 foreign countries and U.S. territories. The number of stores in our 7-Eleven system continues to grow each year.

7-Eleven, Inc. has been a leader in the franchise industry for more than 35 years, having entered the franchising business in 1964 with the purchase of 127 franchised Speedee Marts in California. The company has achieved national recognition for its efforts. *

A 7-Eleven franchise provides an opportunity for people with moderate financial resources and business experience to open their own ready-to-operate convenience stores with the leading name in the industry.

The company has revitalized its convenience retailing operations to increase the appeal of its stores to the convenience-oriented consumer. 7-Eleven's mission is to deliver to these customers what they want: speedy transactions, a reliable assortment of quality products and services at fair prices, and a clean, friendly environment in which to shop.

* Ranked #4 in Entrepreneur magazine's 2002 issue of the "23rd Annual Top 500 Franchises"

* Ranked #2 in Franchise Times magazine's issue on the Top 200 Franchise Chains by Worldwide Sales."

*For franchising information, please call 1-800-255-0711 or log on to our web site, www.7-Eleven.com.

The PhD Project[SM]

African-Americans are finding career fulfillment by going back to school--with assistance from The PhD Project.

A growing number of African-American professionals are finding career fulfillment not in the corner office of the executive suite, but in the cluttered office of the academic.

The PhD Project, a multimillion-dollar diversity effort sponsored by some of the nation's largest companies, is assisting African-American professionals to return to academia. The PhD Project conducts a nationwide marketing campaign identifying minorities willing to leave their corporate jobs, return to academia to earn a Ph.D., and become business professors. Top candidates are invited to a three-day conference, where they meet with current minority business professors and representatives from Ph.D. programs across the country. They get all the information they need to make the transition from business to academia. Airfare and lodging for the conference is paid by The PhD Project.

Once enrolled in a doctoral program, PhD Project participants are invited to join one of the PhD Project Doctoral Students Associations. These peer support groups help minority doctoral students stay in touch to break the isolation often felt by doctoral students.

The PhD Project's success is undeniable. In 1993, when the program began, there were only 294 African-American, Hispanic, or Native American professors at U.S. business schools. Today, there are 587 minority business professors-an increase of more than 90%. Further, 416 minorities are currently enrolled in doctoral programs and will take a place at the front of the classroom in the next few years.

The PhD Project's annual conference is held every November. For more information, and to apply, visit www.phdproject.com.

Sponsors of The PhD Project are: KPMG Foundation; Graduate Management Admission Council; Participating Universities; Citigroup Foundation; Ford Motor Company; DaimlerChrysler Corporation Fund; AACSB International; James S. Kemper Foundation; AICPA; Abbott Laboratories; Fannie Mae Foundation; Merrill Lynch & Co. Foundation, Inc.; Vivendi Universal; Robert K. Elliott; State Street Corporation; Pfizer, Inc.; JP Morgan Chase; Alcoa Foundation; and Eastman Kodak Company.