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The lure of Franchises: it's not just fast food that attracts corporate types.


Neil McMillan's clients come from a wide variety of backgrounds. Some are veterans of the corporate world, others have worked in the nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive.

Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law.
 sector or are just looking for Looking for

In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with.
 a career change. And it's McMillan's job to match them with the right franchise opportunity.

McMillan works in Westlake Village, covering Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  and parts of Ventura and Santa Barbara Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850.  counties for FranNet, a national network of franchise consultants. McMillan presents at seminars held by chambers of commerce and other business groups, working with between eight and 10 clients at a time. He usually starts by erasing a client's misconceptions Misconceptions is an American sitcom television series for The WB Network for the 2005-2006 season that never aired. It features Jane Leeves, formerly of Frasier, and French Stewart, formerly of 3rd Rock From the Sun.  about franchises.

"The first big myth, if you like, is that it's mainly fast food and restaurants," McMillan said. "What most people don't realize is that there are a ton of franchises out there that are suitable for senior executives: staffing businesses, consulting businesses. You don't necessarily need to venture out into your own consulting practice, which can be much more difficult."

Tom Leney had been working in the corporate world for 20 years when his position at Digital Insight in Calabasas was eliminated. Tired of the corporate grind 1. GRIND - GRaphical INterpretive Display.

A graphics input language for the PDP-9.

["GRIND: A Language and Translator for Computer Graphics", A.P. Conn, Dartmouth, June 1969].
2.
, he decided that, as he was turning 40 years old, it was now or never.

"I decided I was at a point where if I wanted to make a change, now was my chance to do it, versus when I'm fifty years old and I have to be worried about retirement," Leney said.

The company worked with an outplacement out·place·ment  
n.
The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer.
 service to help its former employees find new jobs, and McMillan made a presentation during that time.

"I thought, 'well, if I'm going to do something, I want it to be something I can believe in and want to do, something I enjoy doing and can get my passion behind, not just something to make a buck Buck

after murder of his master, leads wolf pack. [Am. Lit.: The Call of the Wild]

See : Dogs


Buck

clever and temerarious dog perseveres in the Klondike. [Am. Lit.: Call of the Wild]

See : Resourcefulness
,'" Leney said..

He worked with McMillan and took what he describes as a "pretty extensive personality test" to determine which business he would be most suited for, and then started to research companies. After weeding weed 1  
n.
1.
a. A plant considered undesirable, unattractive, or troublesome, especially one growing where it is not wanted, as in a garden.

b. Rank growth of such plants.

2.
 his possibilities down to a few companies, Leney tentatively settled on a business called Interior Door Replacement Company.

"They have a 'discovery day' where you meet with the founders, talk to some prospective clients and some other owners," Leney said. "At that point, what really sold me on the company was the feedback from customers. (IDRC's) scores on customer surveys were like 9.9 out of 10, which is rare in the home improvement industry."

The investment needed to start a franchise can be anywhere from about $80,000 to $1 million or more for a national brand like McDonald's.

Leney said his investment was nowhere near a million dollars, but was "a pretty decent chunk of change."

Leney has a crew of five people, which is on target with his business plan, and he's looking to double the number of employees later this year. Right now, he says the business is all he hoped it would be although he's not profiting yet.

"I'm loving it, it's great right now," said Leney. "I've got a bit of a nest egg Nest Egg

A special sum of money saved or invested for one specific future purpose.

Notes:
Examples of the purposes for which nest eggs are usually intended include retirement, education, and even entertainment (vacations and cruises).
, and I'm not putting any money into it. I'm not pulling any money out of the business, but right now I'm really enjoying it, it's my own company. I put in long hours but it's worth it, because it's mine."

McMillan's clients have found roles in the franchise world aside from just being business owners. David Rawnsley left his job as director of finance for a nonprofit organization Nonprofit Organization

An association that is given tax-free status. Donations to a non-profit organization are often tax deductible as well.

Notes:
Examples of non-profit organizations are charities, hospitals and schools.
 and became a development director for Robeks, a smoothie smooth·ie also smooth·y  
n. pl. smooth·ies Slang
1. A person regarded as being assured and artfully ingratiating in manner.

2. A smooth-tongued person.
 and juice store.

Rawnsley is responsible for supporting franchisers as they build and then operate a business. His payment comes from the royalty fees that operators pay parents companies, so the more stores he helps to establish, the bigger his paycheck gets.

"What appealed to me was that even though the income is lower to begin with, you're essentially building up annuity annuity: see insurance.
annuity

Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities.
 as more stores open and there are more sales," said Rawnsley. "Once the stores open up, the revenue stream is pretty steady."

Tim Lenway had worked for years in different service industry positions, as a fleet manager for Airmark Uniform Service for several years, before going back to school to get his engineering degree. But after graduating in 2003, Lenway found that he had no passion for the field. He met McMillan through a small business association and now owns a Maid Brigade This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article.  Residential Cleaning franchise. He had no experience in cleaning, but said he enjoys running his own show and making his own hours.

"I had always looked at businesses I either had experience with or was interested in or was good at," Lenway said. "I thought that was the way you would have to go to be successful about it."

McMillan said stories like Lenway's are not unusual.

"About 75 to 80 percent of people go into something completely different than what they did in the past," McMillan said. "They're often more successful because of the fact that they're a little bit intimidated in·tim·i·date  
tr.v. in·tim·i·dat·ed, in·tim·i·dat·ing, in·tim·i·dates
1. To make timid; fill with fear.

2. To coerce or inhibit by or as if by threats.
 by the new industry, and they do tend to follow the system. In franchises, if you follow the system it's usually a good recipe for success."

Susan P. Kezios, president of the American Franchisee Association, said prospective franchisers need to be aware of some hurdles, however.

Franchisers, she said, are lured by the prospect of being their own boss but are often taken by surprise when it comes to their responsibilities.

"When you sign a contract, you are essentially signing a moving target," Kezios said.

Franchisers can be forced to make changes if a company is purchased, a well-known example being the purchase of Mail Boxes Etc, by UPS. Situations like that may require money from a franchiser to change the look of a store.

A smart investor she said, thinks of franchise agreements as temporary periods of "renting a stream of income," rather than a lifelong commitment.

JONATHAN D. COLBURN

Staff Reporter
COPYRIGHT 2006 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Article Details
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Author:Colburn, Jonathan D.
Publication:San Fernando Valley Business Journal
Geographic Code:1USA
Date:Mar 13, 2006
Words:996
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