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Starting Up a Franchise Company the Right Way: The MoneySaver Franchise

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Starting up a new franchise company requires a combination of the right ingredients. This interview with Adam Squires of MoneySaver explains why this franchisor has the right ingredients to succeed.

There is one thing that franchise experts can agree on; companies looking to franchise their business should meet certain minimum requirements.

These requirements are:

  1. A history or track record of successful performance
  2. A business model that can be replicated and franchised
  3. The financial and management resources necessary to support a franchise organization
  4. A business with sustainable market potential

“In 2010 marketers distributed more coupons than the prior year, reaching 332 billion-the largest single-year distribution ever recorded in the United States. This was an increase of 6.8% over the prior year record.” From NCH Marketing Services.

Unfortunately some companies fail to pass this test, but those that do, have a high probability for success. One of these companies is MoneySaver, a start-up franchisor that has the right credentials coupled with a sound business concept. Since 1990 MoneySaver has been delivering consumer coupons through direct mail and more recently through online and mobile programs. The company is operated by founder and President Brian Squires and his son Adam. MoneySaver currently mails over one million coupon booklets to consumers.

Recently, I interviewed Adam Squires of Moneysaver.

Adam said: “After considering the best way to expand our business we decided to develop a franchise model. A MoneySaver franchisee pays no royalty. They purchase services and products from the franchisor. This includes full color coupon booklets, on-line graphics, web development, coupons and for the mailings. The franchisee sells listings to businesses in their territory. Each franchisee has a protected territory so another franchisee cannot encroach into their territory. The franchisees work from a home based office. Each territory is defined by zip codes and consists of 3-6 zones. A zone contains about 20,000 mail boxes so a territory can range from 60 to 120,000 mail boxes”. Adam indicated that their franchise growth strategy will initially focus on Florida and New Jersey. MoneySaver provides its franchisees with initial and ongoing training, as well as sales and marketing support.

MoneySaver was one of the first to go to market with an online coupon site, which offers hundreds of printable coupons 24/7,365 days a year. Now, MoneySaver is providing the same opportunity on mobile phones.

A key advantage of a mature company like MoneySaver is that it’s not necessary to sell franchises in order to fund operations. Rather, their strategy can focus on finding quality franchisees for the right territories.

MoneySaver’s savvy in introducing online coupons is evidenced by data from NCH Marketing Services: “In 2010 online coupons also contributed to the rise in coupon distribution and redemption, with Internet distribution up 92% and consumer redemption of these coupons up over 360%.”

Adam explained that MoneySaver franchisees can benefit from a company that has been a leader in its field for the past 20 years.

With Brian Squires continuing to operate MoneySaver’s core business and Adam administering the new franchise program they will avoid a major problem that many new franchisors face.

As a home-based business, MoneySaver would like to attract sales orientated individuals with a strong incentive to succeed. This franchise is a fit for transitioning corporate professionals seeking to invest in an affordable franchise opportunity. Franchise fees range from $15,000 to $22,500 and the estimated investment is $29-$74,000 dollars.

The first MoneySaver franchise was awarded for Northern New Jersey. The franchisee has more than 25 years of sales experience. One significant advantage MoneySaver has is its management structure. Since Brian will manage the corporate operation and Adam the franchise, they can avoid a problem so many start-up franchisors face, going from one operation to two without the management expertise and leadership.

When it comes to new franchise concepts, MoneySaver has the track record, leadership and business model that can lead to a successful franchise operation.

© 2010 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com

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