04/13/20
...Just like with real estate agents, the franchise consultant's services are free to franchise buyers. Franchisors happily pay the consultant's commission for delivering the best-suited candidates. Here are five tips to help franchise buyers make the right choice, and how an expert can help...
Small business owners, help is on the way—though the process of applying for funding may not be smooth. There are now several new temporary relief options aimed at helping small businesses push through the current economic headwinds caused by the coronavirus...
04/06/20
You can’t predict the next recession or natural disaster. But the good news is, as a prospective business owner, you do have some control—there are specific things you can look for in your next business venture that signify stability, starting with a franchise and choosing one that’s ready to withstand almost anything…
In a March 2020 online survey, FranConnect, the leading provider of franchise management platform solutions, found approximately two-thirds of franchisors are actively moving forward with franchise sales efforts despite the paralyzing impact of the COVID-19 crisis in anticipation of an influx of Americans looking for business opportunities as unemployment soars…
...But bigger than either of those programs in dollar terms is the Paycheck Protection Program (PPP) the stimulus package creates. That program, costing about $349 billion, offers loan guarantees for small businesses, offered through the Small Business Administration (SBA) and its partner banks…
...In response to this monumental disruption to business, a several states have already begun releasing updated guidelines for franchise registrations and renewals in the hopes to mitigate the impact that this pandemic has had on franchisors. These new policies include the pushback of some deadlines and changes to the form of application submissions to the state. Below we have listed the new policies put into effect as of April 2, 2020...
03/30/20
As the COVID-19 pandemic has put businesses in unprecedented situations, companies are forced to adapt and modify their operations. In response to this monumental disruption to business, a several states have already begun releasing updated guidelines for franchise registrations and renewals in the hopes to mitigate the impact that this pandemic has had on franchisors…
On March 27, 2020 , after many sectors of the economy have come to a virtual stand-still and millions of Americans have filed for unemployment as a result of the novel coronavirus (COVID-19) pandemic, the United States Congress passed, and President Trump signed, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)...
03/23/20
You need to protect your franchise. As economic conditions deteriorate and the culture of fear from COVID-19 spikes, Australian franchisors have been sharpening their focus on what they can do to safeguard their businesses financially. If not already in place, the following activities (or tips) should be a priority...
...If you are healthy and have found yourself with extra time on your hands, and you’re trying to decide what to do while you’re stuck at home for the foreseeable future, this can be your chance to make that website, write that book or start that business you’ve been thinking about for so long. It could put you on track to fulfilling a dream…
McDonald’s Corp. said early Tuesday that it may defer franchisee rent payments for a time to help them get through a period in which their sales are expected to slump badly as restrictions to stem the spread of coronavirus take hold around the globe. The Chicago-based burger giant said it is working with operators around the world “to evaluate operational flexibility and support financial liquidity (including rent deferrals) during this period of uncertainty.”...
A handful of large fast-food chains, including Subway Restaurants, are reducing the fees they charge their store operators as the coronavirus outbreak grinds restaurant business to a halt. Subway CEO John Chidsey told the chain’s 23,500 locations on Monday night that the Milford, Conn., company will halve its royalty fees this week — from 8 percent to 4 percent. It will also forgo the 4.5 percent of revenue payments it collects from store operators for the advertising budget over the next four weeks, sources said…
The International Franchise Association (IFA) is asking congressional leadership for the creation of a $300 billion fund to provide liquidity to franchises struggling through the coronavirus pandemic. Up to 393,000 franchise jobs could be lost from a 90-day shutdown, the IFA warned. The U.S. franchising community is comprised of more than 733,000 establishments that employ over 7 million individuals and contribute $674.4 billion to the U.S. economy...
...Due to several of these factors, many older professionals are increasingly looking into franchising to extend their careers. They have acquired a vast amount of skills and experience by working in corporate America over the years and possess many qualities coveted by franchisors. Franchising can also give these individuals the perfect bridge from their long-term career to their retirement years…
With COVID-19 changing everything we do in our personal and business lives, franchisors are faced with all the same challenges as other businesses, but also several unique twists due to the nature of franchising. Franchising as we know it has changed. Business as we know it has changed. Life as we know it has changed. In some ways those changes will be short term. In other ways, those changes will be more long term. Importantly, we will get through it. Yes, we will get through it. TOGETHER. Now more than ever, LEADERSHIP MATTERS...
03/16/20
On 24 January 2020, the Federal Court of Australia ruled1 on the penalties to apply for a franchisor who had made false representations to its franchisees and prospective franchisees over a number of years – including in pre-contract disclosure documents. The case related to the Geowash car washing franchise…
03/09/20
Many franchisors have recently undertaken refranchising programs as a means to grow their businesses and enhance shareholder value. Franchisors with company-owned units may wish to consider this approach for the same reasons. What is refranchising, and is it right for your system? Refranchising can generally be described as the sale of franchisor- or affiliate-owned units to buyers who will operate those businesses under the same system, pursuant to a franchise or license agreement. Such an arrangement can provide substantial benefits to both the franchisor and the franchisee...
Florida is a fine state for franchisors and franchisees. Franchise-based businesses in the state rank No. 2 nationally in economic output growth, at 5.3%, behind only Texas, at 7.1%, according to new report from the International Franchise Association. Florida’s franchisee business produced an economic output of $63.5 billion in fiscal 2020, up from $60.2 billion in 2019. Texas-based franchises had an output of $74.6 billion, with a growth rate of 7.1%...
03/02/20
Today, more than ever, the appeal of franchising is gaining popularity with millennials. This generation is defined by those born between 1981 and 1996, according to the Pew Research Center. Recently, millennials became the generation that is dominating the U.S. labor force. The growing interest in franchise ownership among this group is due to the almost limitless prospects and opportunities within franchising industries...
02/24/20
A federal judge has awarded $3.5 million to a Waco-based international franchise company in a trademark and copyright dispute with an employment company. In U.S. District Judge Alan Albright’s first bench trial since he took office in September 2018, the judge sided with Dwyer Franchising and its subsidiary, ProTradeNet, and issued a permanent injunction to block Predictive Profiles from using any of Dwyer’s trademarked or copyrighted logos or other brands...
Age is just a number. And the numbers show that more and more individuals aged 50 and over are entering the world of self employment, and in particular becoming franchisees. Here in the UK, the UK Office of National Statistics reported that in 2017, more than four out of ten new businesses were started by someone aged 50 or more. In the US, the Kauffman Index Report into the start-up landscape in 2015 concluded that 24 percent of new business founders were aged between 55 and 64 years old, a significant increase from twenty years before when only 15 percent of new businesses were started by members of the same age group. Everything suggests that this figure is continuing to rise...
If you’ve thought about scaling your business, you might have wondered whether or not franchising is the right choice. For me, transitioning from a small business owner to a franchisor helped me grow my business and scale much faster than I would have been able to do on my own — all while avoiding the excessive risk of a capital-intensive expansion...
There’s more to franchising than the allure of being your own boss and owning your own business. If you’re thinking ahead, you may already be looking at different growth strategies. You might even be eyeing an aggressive expansion strategy for new locations or acquisitions. To do this, you’ll likely need additional capital to make it happen. Many franchises are seeking said capital from private equity (PE) firms, and private equity is happy to oblige...
Amid the increasingly digital-focused franchise discovery process, the face-to-face communication opportunity a franchise show affords can be extremely valuable...
...The biggest question franchisees ask: “How am I going to pay for this purchase?”
There are many ways to get money to buy your franchise. Here’s a look at the seven most common ways entrepreneurs fund a franchise purchase. I’ve organized this list by level of risk, from most conservative to riskiest...
02/10/20
Subway announced that it is reducing its headquarters workforce by 300 people Wednesday. The company saw explosive growth for decades, but a few years ago it started to reduce the number of stores. The company faces stiff competition from a plethora of other companies…
Curious about the many of the world’s biggest and most powerful franchises? Each year, since 2009, Franchise Direct has published its Top 100 Global Franchises Ranking, a snapshot of how a number of the most successful franchises in the world fared in the past year compared to the year before. It’s one of the most well-known franchise rankings, having frequently been cited by industry professionals…
Ranking List - HERE.
Atlanta Subway franchisee Chris Williams was just 26 when he purchased his first Subway unit last summer. Less than two years before his store’s grand opening in July, he had been homeless and was living in his car due to financial hardships. In 2018, though, Williams landed a full-time job in Atlanta, and, soon after, began saving to buy a Subway franchise. Only 10 months later, he had amassed enough cash to buy his own store…
...This short article breaks down what makes franchising different from traditional entrepreneurship, and how to be successful at it. Whether you're interested in starting a franchise or not, this article will help you understand much of how the process works….
...Yes, branding includes all of the graphic and visual elements that represent your business and make you recognizable – the snazzy logo, the colors and the imagery, the snappy tagline. But branding extends far beyond this. It’s the customer experiences and company culture that intertwines everything that your business does. It’s that feeling that people get when they think about your business and product or service, the perception that they have and the reaction that they have to you. Ultimately your brand isn’t you – it’s who your customers think you are…
First District Congressman Kevin Hern, who owes a good deal of his personal fortune to his involvement in McDonald’s, was among opposition leaders to a bill that would have a big impact on franchise owners and their employees. The Protecting the Right to Organize Act, known as PRO, passed the Democrat-controlled House of Representatives on Thursday with the strong support of organized labor…
Protecting the Right to Organize Act - HERE.
...So how does the next generation of casual-dining franchises avoid going the way of so many legacy casual-dining chains? Stay small, true to the surroundings, and perfectly imperfect; and corporatize without becoming corporate…
...Black entrepreneurs have thrived in franchising for years and are choosing this route over founding traditional small businesses at a faster rate than the broader population. Government data show a substantial jump in the number of black-owned businesses from 2007 to 2012, from 1.9 million to 2.6 million. Statistics also show that 30.8% of franchise businesses were owned by minorities, while non-franchised businesses have nearly 19% minority ownership...
