12/04/20
Currently, there are more than 30 million small business owners in the U.S., and of those, nearly 800,000 are owned franchise businesses. Although franchise owners are considered small businesses, they have a lot of advantages that go-it-alone company startups do not share. There is sometimes a substantial investment upfront to invest in a franchise; however, the benefits are numerous. ..
Humans need to feel that they’re growing. It’s not enough to be. You must do. And you need ways to measure your progress so that you can know what you’re doing is working for your franchise business. When you’re not sure how to measure what you’re doing, you compare yourself to others, even though the information you get as a result may be misleading. One solution for this is to look at different gauges. Let’s look at some of the most important metrics you should consider…
For those who have served their country and are trying to determine their career path after the military, franchising presents a great option. Veterans make excellent franchise owners, and many franchisors have programs designed to help them purchase their own franchises…
I meet a lot of franchisees. I ask the best ones why they’re successful. I see who they are and what they do. Then I talk to the struggling franchisees and ask them what they believe their high-performing counterparts have going for them. Often there’s a huge disconnect. I also talk with the franchisors. They have a wider perspective, as they see the results over a wide field of franchisees running the same operations. They also tell me about the misperceptions many franchisees have about their top performers. Let’s explore the most common ones.
11/16/20
California’s rigid worker classification standard threatens relationships between franchise owners and their brands, business groups said in announcing the latest legal challenge to the state’s controversial Assembly Bill 5. The International Franchise Association, along with several other groups and companies such as the Asian American Hotel Owners Association, Dunkin’ Donuts, and Supercuts, said they will file a lawsuit Tuesday in the U.S. District Court for the Southern District of California, in San Diego...
Earlier this month, the Federal Trade Commission kicked off what could be a long process to change its franchise rule, the set of regulations required of any company that sells a franchise. How much it should change will be a matter of considerable debate, with critics suggesting that the rules do a poor job keeping bad franchises from preying on unsuspecting investors, while others say the system has generally worked well in the decade since the rule was last changed...
11/09/20
As we approach Veterans day News5 is highlighting the impact our men and women in uniform have made abroad and at home. The Small Business Administration says, veterans are 45 percent more likely to be self-employed than non-veterans, and we met one local veteran who is part of that number…
You’re intimately familiar with your starting point – the business you’ve nurtured and grown. You understand your destination – successful franchises around the country or around the world. You have the passion and the proof of concept, but you don’t have the roadmap to move from point A to point B. You’re not alone. Most business owners looking to expand into franchising are both anxious and excited, unsure and confident. It helps to learn from those who have traveled the road on which you’re about to embark, both to avoid the potholes and to recognize the markers that lead to success...
10/26/20
As the saying goes, “franchising is simple, as long as franchisees are making money.” However, in some systems, it may seem easier to sell franchises than to actually get them open and profitable—and then to keep them profitable. That’s a recipe either for excessive “sold not open” numbers or the stall-out scenario I wrote about in October’s FT...
While the economy is down and unemployment is at an all-time high, the franchising industry saw a bump in activity with people wanting to take more control of their future. FranNet’s franchising consultant for Grand Rapids, Kalamazoo and Battle Creek, Brigitte Betser, said franchise owners stepped up in the early months of the pandemic to help their franchisees navigate the uncertain climate...
09/28/20
...In this article I’ll identify four key marketing challenges restaurant and quick-service brands are facing in the new COVID-19 world and look at the best strategic solutions through a technology and local-data focused lens…
Not too long ago, most folks would never have considered a career change at 60. In the home stretch of their working lives, the average 60-year-old from previous decades was looking forward to spending more time relaxing — not ramping up a new career. But times have changed, and people in their 60s have as well. They are healthier and living longer. In a lot of ways, you might say that 60 is the new 40...
09/08/20
Franchise agreements are important and necessary legal contracts between the franchisor and the person interested in opening a franchise. According to federal law, these multiyear arrangements must include key provisions, including a fee schedule and the use of a trademark or trade name, to be considered proper franchise agreements. While franchise agreements are relatively standard, with the right legal advice, you can negotiate terms. This article is for people who are interested in opening a franchise of an established business…
FranFunnel, the franchise industry's preeminent messaging platform for franchise development professionals, has been voted a top supplier in Entrepreneur Magazine's Top Franchise Suppliers list…
...In his opinion, U.S. District Court Judge Gregory Woods said the rule conflicted with the FLSA and referred to it as “arbitrary and capricious.” He also wrote that the department didn’t adequately justify its departure from its prior interpretations and account for costs...
09/01/20
It seems counterintuitive, but this economic recession might be the optimal time to get into franchising. As Australian entrepreneur and founder of Universal Business School Sydney Alan Manly puts it, “Some of the biggest companies in the world—including Microsoft—were set up during recessions. Recessions seem to be when very successful companies take off. Companies that were set up in boom times have a shorter expected life span than companies that were set up in recessions. I would guess that looks back to the culture of the people who are setting up. It’s desperate times—everything is lean and mean and you have to be razor-sharp and nimble to get around. Whereas when it’s a boom market almost anyone can make a go of it.”...
Franchising is a great way to start a business, but before you decide to spend the thousands of dollars needed to buy one, you must do your due diligence. It is critical to understand what a franchise is and how it differs from a chain. Owning a franchise does not work the same way as a business that comes from an original idea you have...
08/21/20
People have compared the franchisee-franchisor arrangement to many different kinds of relationships, including marriages, teacher-student affiliations, or even parent-child bonds. Just like with any with partnership, it takes effort from both sides to make it work...
If you’ve ever been interested in owning your own business, you may have felt intimidated at the prospect of designing an entire company from scratch. Being an entrepreneur is always hard, but it’s even harder if you’re hard-pressed to come up with an original business idea…
A franchise fee is what a prospective franchisee owes to the franchisor for the rights to use the franchise brand and franchise system. Typically the franchise fee refers to a one-time payment paid in the beginning of the relationship. But there are also ongoing franchise fees...
08/03/20
...A lot of ink has been spilled praising the wonders of the franchise business model. However, if you’re new to franchising, you may not be up to speed on why franchising is so popular. If you’ve been debating whether to start something on your own or buy a franchise, I thought I’d put forth an argument for why having a template works...
One of the key benefits of owning a franchise has always been the ability to scale up faster and more efficiently than one could do on their own. Franchisors typically include certain resources and tools to help franchise owners get on the fast track by avoiding costly mistakes and implementing systems to grow. These include, among other things, a robust training program that first educates the new franchise owners on how to run the business and systems for training staff members so the franchisee can grow the business, expand and make more money...
