Franchisee resource center

This article briefly outlines some of the key factors -- brand identity, policies & procedures, expansion targets, and management systems -- that businesses need take into consideration when evaluating whether their concept is ripe for franchising.

Aristotle said that all persuasive arguments have 3 common elements, and he gave these elements some great names (which suspiciously sound like the names of the Three Musketeers):

The answers to these questions will depend on the language of your specific franchise agreement, although some general principles can be identified:

While these franchisees might think they are helping the brand, in fact it’s just the opposite.

In dealing with an individual distressed franchisee, the following questions need to be asked:

This article provides a brief history of some well-known franchisor bankruptcies of recent years -- including Denny's, Bennigan's, Steak & Ale, Original Roadhouse Grill, Cork & Olive, The Ground Round, Church's Chicken, Popeyes, and 7-Eleven -- with a look at the outcomes of these bankruptcies for both the franchisors and their franchisees.

However, once the ribbons come down and time passes, franchisees begin to recognize the challenge ahead and that, in many ways, they're on their own: regardless of the amount of support their franchisor provides, the franchisee is ultimately responsible for generating sales for his or her new business.

For entrepreneurs seeking to hit the ground running with a new business venture, there are two main categories of opportunities out there that allow them to benefit from the experience, assets and reputation of existing business concepts. These are: (i) the franchise, and (ii) the “business opportunity”.

Of course, new concepts and geographically-focused concepts may have no or only a limited number of franchisees. These opportunities should not simply be avoided wholesale; however, in these cases it will be particularly important to have candid and open discussions with the franchisor’s owners and representatives.