This week on the DealQuest podcast, we have impressive guest, Jon Ostenson on. Jon is the CEO of FranBridge Consulting, a top 1% franchise consultant, and the best-selling author of Non-Food Franchising: The Better Path to Ownership.

With over 35 years of experience as a successful entrepreneur, professional negotiator, and attorney, Jon draws on his background as a former Inc 500 franchise president and multi-brand franchisee to help his clients select their franchise investments. He is a frequent contributor on franchising to publications such as Forbes and Bloomberg, and his goal is to help businesses achieve deal-driven growth.

FRANCHISING AS A BUSINESS MODEL
Franchising is not something we’ve commonly discussed on the DealQuest Podcast, but Jon’s insights and experience in franchising offers us substantial information on franchising. Franchising is a business model that allows individuals to own and operate their own business under the established brand and system of a larger parent company, known as the franchisor. Jon recognizes the appeal in franchising as a business model with many benefits for aspiring entrepreneurs.

Jon views franchising as “starting on 3rd base”, which is effectively leveraging an established system and framework provided by franchisors. It works, however, and allows entrepreneurs to bypass the challenges of building a business from scratch, providing them with a head start in their entrepreneurial journey. Offering new and different freedom and control than building an entirely new business from the ground up.

FOOD AND NON-FOOD FRANCHISING
When we think of a franchise, we commonly think of food, such as fast-food restaurants like McDonald’s or Subway – which can be a lucrative choice for those looking to go into franchising. Jon argues, however, that non-food franchising can require less capital upfront, fewer employees, less operating hours, and be less susceptible to consumer whims, leading to lighter investment and higher margins.

By looking outside of the food industry, potential franchisees are provided a diverse array of investment options. Non-food franchises encompass a wide range of industries, including:

• Retail
• Service
• Healthcare
• ...and more!

 
THE BENEFITS AND CHALLENGES OF FRANCHISING
Jon's passion for helping individuals achieve freedom through business ownership shines, but he also recognizes that like any deal, it has both benefits and challenges.

The benefits of franchising include the ability to build an asset with potential exit value, tax benefits, and the opportunity to leverage a proven business model with support from the franchisor. Franchising also allows for diversification of a business portfolio and can provide a head start on starting a business with support, advertising, and a proven model.

There are also challenges, however, associated with franchising. These include the potential for individual failure within the system, the need for a significant upfront investment, and the requirement to follow the franchisor's system and guidelines. Additionally, there may be challenges in securing financing for the franchise, and there is always a risk of business failure, as with any entrepreneurial endeavor.

To learn more about franchising, sign up for FranBride’s newsletter, and receive a complimentary copy of the book Non-Food Franchising: The Better Path to Ownership by Jon Ostenson: https://franbridgeconsulting.com/
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For my full discussion with Jon Ostenson, and more on this topic and topics not featured on this blog post:
Listen to the Full DealQuest Podcast Episode Here

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FOR MORE ON JON OSTENSON:
https://www.linkedin.com/in/jonostenson/

Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
 
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