Time is a precious commodity these days and although buying a franchise is a time consuming process, there are ways to cut to the chase. Of course you should do your due diligence, but first make sure you’re focused on viable choices. Here are some tips to quickly identify the best franchise opportunities for you so no time is wasted.

1. Know what you want.
Before you even begin shopping around, clarify what you want in a franchise business. Make a checklist of the characteristics you’re looking for. Use your checklist to quickly weed out franchises that don’t fit the bill.

2. Know your limits.
Have your accountant help you determine how much you can invest. Then look in the UFOC to find the amount of net worth and liquidity that's required by the franchise. Don’t waste time investigating a franchise you can't afford.

3. Look for open territory.
Ask the franchisor if there are opportunities available in the area where you want to locate your business. If not, look elsewhere.

4. Review Item 3 in the UFOC.
That’s where the franchisor is required to disclose any relevant litigation history. It will give you clues about the organization’s relationships with its franchisees.

5. Don’t bet on bad odds.
Check the franchisor’s failure rate. You’ll find it in Item 20 in the UFOC. If the track record doesn’t look so hot, it’s probably not. Move on.

6. Have the right stuff.
A good franchisor will tell you what characteristics and skills they expect from franchisees. If you don’t measure up, you’re wasting your time and theirs.

7. Get the inside scoop.
Find out if a franchise is a good match for you by talking to the company’s existing franchisees. Get on the phone and start asking questions. You’ll quickly get a sense of what it would really be like to become a franchisee in this system.

More from IFE: How do you stand out in a crowd?

In this issue, we continue our exit poll of exhibitors that participated in this month's International Franchise Exhibition (IFE) in Washington D.C. This time we have comments from Ronald Serota, Kristin Martonik, Eliza Kendall, and Debi Scroggins.

Ronald Serota is President of Beverage Plus, a high energy drink franchise.

Q: What is the best use of an exhibition like this?
A: It's an excellent opportunity to close transactions with current candidates. We invited our strongest leads to come meet with us, including one group that flew in from India. They were very impressed at the entire presentation

Q: How is the economic downturn affecting exhibitions?
A: The attendance overall is lower and candidates are more wary about making significant investments. There is a significant advantage for lower priced franchises or companies that offer some financing alternatives with in-house financing.

Q: How do you stand out in a crowd?
A: We are a NASCAR sponsor, so we bring the show car and the driver for signatures to major events.

Kristin Martonik is Vice President of Marketing for FranSmart, a franchise development and consulting firm, and handled the booth for Sandella's Flatbread Cafe.

Q: How effective are exhibitions for finding prime franchisee candidates?
A: It varies very much on the show and how targeted they are with their audience. Over the years, the larger expos have been less effective for us. We do better with some of the smaller conferences that are more targeted towards specific topics like financing or area development. But the international traffic was just fantastic at this show. The international franchising arena is becoming much more attractive to US based franchisors looking to expand overseas.

Q: How do you stand out in a crowd?
A: I don't think you can go to a large show and just have a booth and expect people to come to you. It's so big and there's a lot of competition. We created a booth that looked like the interior of a Sandella Flatbread Cafe. It was like a mini café. And we did food sampling as well. We tried to impart the feeling of being a consumer, which drew the potential investors in as well. It really helped us to have a bigger presence at the show.

Eliza Kendall is President and CEO of ElizaJ, a franchise that supplies high-end portable restrooms for special events.

Q: After attending the expo, how do you read what's happening in franchising?
A: Aside from the credit crunch, there are still people out there who are dreaming of becoming franchise owners and are interested in a turnkey franchise concept.

Q: What changes are you considering for the next expo?
A: As I looked around at other people who had brought their cars or other examples of their franchises, it was clear that did set them apart. So I'm planning to bring a restroom trailer next time because our concept is unique and if people can see, feel and touch it, I think it will be a big advantage. Our portable restrooms do have a lot of bling and that's what's needed to get a competitive edge.

Debi Scroggins is President of Bearclaw Coffee, a coffee drive-thru and mobile espresso franchise.

Q: After attending the Expo, how do you read what's happening in franchising?
A: I think the serious franchisors and franchisees continue to persevere and strive to continue the innovation and creativity that makes franchising such a fantastic industry. The economic climate in certain regions of the country may have slowed down business, including franchising, but I think overall it's healthy and most businesses will be ready to jump forward again as soon as the country gets back on track. I have no concern that the franchising atmosphere will stay positive and is only gearing up for another break out in business and investment.

Q: What did you do to stand out in the crowd?
A: We had our newest mobile espresso truck at the show and it was a gigantic hit. It caught everybody's eye and attracted a lot of passers-by that may not have seriously looked at a regular coffee idea.

Calling on everyone in Franchising: It's Attitude Adjustment Time!

By: Flo Schell

After reading a recent pragmatic article about how to handle this uncertain economy, I asked myself this question: In light of what we hear about falling stock prices and rising gas prices, what will we do internally to make the best of this time?

The truth is this: Who ever said we had to do it alone?

“It’s too big for one person to solve. It’s going to take all of us, working together,” says a Fast Company advertiser referring to the climate crisis. (May, 2008)

In fact, these words make sense in all arenas and the franchising world is no exception.

Recently I brought Guest Sales Expert, Britt Schroeter, onto a Closing Sales 2.0 Tele-Huddle. The topic was: "How to Talk with Franchise Prospects about the Economy". I love the idea of bringing experts onto the calls because we assuredly create more impact together than alone.

And what we wound up talking about was "attitude".

Look at these facts:

If we’re putting all of our purchase decisions aside until the economy strengthens, then how can we expect a prospect to purchase our business concept?

If we’re halting our travel because gas prices are high, then how can we expect a prospect to fly out to our D-Day?

In other words, let’s look within ourselves first…name our fears…and begin to face them.

We’ll then have a far easier time helping our prospects to name and overcome their own fears and thus, increase their ability to move forward.

Fast Company’s Editor, Robert Safian, reminds us that many of today’s most successful businesses were born in the cauldron of difficult times.

So where, he asks, is the opportunity looming today?

Let’s take some steps to figure this out:

• Pick up a book on the topic of "fear". Britt suggests this one: Feel the Fear and Do It Anyway, by Dr. Susan Jeffers.
• Do all that it takes to shake off your own negative thoughts (You know…that voice in your head that’s asking, "How can I sell anything in this economy?")
• Plan for your own future with strength
• Take a good look at your franchise concept
• Name the ways that it can brighten the future...move our society forward…keep us grounded in tough times
• Find specific examples of franchisees in your system that have had a banner year, despite the odds
• Look at what they did right to make that happen
• Pass on the good news to your prospects
• And bring your prospect back to good, solid decision making…for the long term

Note: An audio recording of the Closing Sales Tele-Huddle 2.0, featuring how to handle fears about the economy is available at: http://floschell.com/franchisecoaching.html

Flo Schell, EdM, is a certified business coach and founder of Franchise Coaching Systems. Contact her at FloSchell@OptOnline.net and visit www.FloSchell.com

Triarc Gobbles Up Wendy's

Triarc Companies is buying hamburger chain Wendy's International in a 2.3-billion-dollar stock deal aimed at creating the nation's third-largest US fast-food group, the companies announced earlier this month. Wendy's shareholders will receive 4.25 shares in Triarc, the owner of Arby's roast beef sandwich chain, for each of their shares.
The two companies expect to complete the takeover in the second half of 2008. Wendy's, whose founder Dave Thomas died in 2002, agreed to be acquired a year ago.
The combined company would have about 10,000 restaurant units and annual sales of 12.5 billion dollars, positioning it behind sector leaders McDonald's and Burger King.

The new company expects to particularly focus on breakfast and global expansion for both brands and growth through future acquisitions and new unit development. Arby's and Wendy's will operate as autonomous brand business units headquartered in Atlanta, Georgia, and Dublin, Ohio, respectively. Roland Smith, 53, Triarc's chief executive, will continue in that role for the combined company and also will become CEO of the Wendy's brand. Wendy's has more than 6,600 restaurants in the United States, Canada and other markets. Triarc is the franchisor of the Arby's restaurant system which has 3,700 outlets in the US and Canada.
(Nation’s Restaurant News, 4/24/08)

Burger King Plans Rapid China Growth Over 3 Years

Burger King Holdings Inc, the world's No. 2 hamburger chain, is looking to open several hundred restaurants over the next three years in China, where it now has only 12, as it seeks to narrow the gap with rival McDonald's Corp. Burger King, which entered China in June 2005, has been very cautious about growth to make sure that all the foundations would be in place before expanding aggressively in the country, mainly through franchises.

McDonald's owns more than 900 restaurants in China and Yum Brands Inc operates more than 2,000 KFC stores in the country as western food chains vie for a bigger share of China's 200 billion yuan ($28 billion) a year fast-food market. Burger King Chief Executive John Chidsey said last December that the company's nascent international business may catch up with its U.S. business in terms of revenue within five years, with plans to open 250 to 300 outlets across China during that period. About 90 percent of the new restaurants in China will be franchised and 10 percent self-owned, in line with Burger King's business model internationally. (Reuters, 4/21/08)

Pod Hotels Gain in Popularity

The latest development in the hotel industry has travelers bunking in tiny, sometimes windowless, quarters. Rapidly rising hotel-room rates and growing travel delays are creating a new niche: so-called pod hotels, small spaces where travelers can spend the night - or a few hours - for relatively cheap. The concept has been in Japan for decades but is new in Europe and spreading to the U.S. These pod hotels are following the lead of low-frills, low-cost airlines. Most don't have grand lobbies, gyms or meeting rooms, areas that can be considered dead space for generating revenue at a regular hotel. With limited services and amenities, they also save on labor - one of the biggest expenses for hotel operators. There is as few as one full-time employee for every 12 rooms at a pod hotel, compared with an employee for every two rooms at a typical budget hotel.

The growth in pods comes as hotels in crowded cities are running at the fullest rate they have in years. In London, the average hotel room cost around $227 last year, up almost 20 percent from 2006, according to industry tracker Smith Travel Research. And in New York, average room rates are now at a record - nearly $300 a night. But at the Pod Hotel in midtown Manhattan, a standard room with a bunk bed, two flat-panel TVs and a shared bathroom starts at $89 a night. (Hotels Magazine, 4/19/08)

Sonic Names New President

Sonic Corp. has named Scott McLain president of the company, the drive-in restaurant chain announced this month. McLain is currently president of Sonic's franchising subsidiary. The role of president is currently filled by Clifford Hudson, Sonic's chief executive and chairman. McLain will be responsible for marketing, information technology, purchasing, development, franchise human resources and corporate communications. Sonic, which has 3,400 drive-in restaurants, also named Mike Perry chief operating officer, overseeing restaurant operations. Perry is currently president of the company's restaurant operating subsidiary .Perry will be replaced by Eddie Saroch, who is currently responsible for franchise services. That role will now be filled by Sharon Strickland. The appointments become effective May 1.
(CNN.com, 4/18/08)

Hilton Franchises Hampton Brand in India

Hilton Hotels Corporation has entered into an agreement to franchise its Hampton by Hilton(TM) brand to Marigold Hospitality Limited in India. Marigold Hospitality aims to franchise 16 hotels (approximately 2,000 rooms) under the Hampton by Hilton brand in India. The hotels will be managed on behalf of Marigold Hospitality by Palm Hospitality, a member of the Palm Holdings group of businesses. Marigold Hospitality is a joint venture between Palm Holdings and Trikona Capital, created to invest in and develop hotels in India.
The deal is set to launch the Hampton by Hilton(TM) brand in India and Marigold Hospitality expects to secure initial sites in the first half of 2008 with commencement of construction this year. The first of the 16 Hampton by Hilton(TM) hotels is planned to open in the next two years. Outside of the US, Hampton by Hilton(TM) is Hilton Hotels Corporation's business hotel brand that has a contemporary design and amenities which are tailored to meet the needs of business and leisure travellers on the road, such as an all-day dining restaurant at most locations. (Businesswire.com, 4/22/08)

Chipotle Posts 38% Profit Rise

Increased customer visits, more locations and menu price increases helped Chipotle Mexican Grill Inc. boost its first-quarter net income by 38.9 percent to $17.9 million and its revenue by 29.3 percent to $305.3 million. The 730-unit, fast-casual chain also posted industry-leading same-store sales results, up 10.2 percent in the first quarter over the same period last year.

Price increases associated with the introduction of naturally raised meats in some markets also helped improve sales and operating margins, the company said. Buoyed by the strong revenue and margin results, the company said it was sticking with plans to open between 130 and 140 new locations this year which would be a record for the company. The difficult economic times, which have created an environment of slowed sales and skyrocketing costs, have caused many restaurant chains to cut planned openings. In the latest quarter Chipotle opened 28 new stores in existing markets. (Nation’s Restaurant News, 4/24/08)