09/23/2019
In each issue of Franchise Update magazine, we profile franchise CMOs and marketing leaders, asking each the same set of questions. Their responses say a lot about who they are, their culture, their values, and where they’re leading their companies...
On September 18, 2020, California Governor Gavin Newsom signed a new measure — Assembly Bill 5 — which will redefine how businesses classify their workers. Commonly known as “AB 5,” the new law seeks to codify the “ABC Test” for determining the existence of an employer/employee relationship. Simply put, the bill will make it much more difficult for businesses to utilize workers as independent contractors…
Franchisors are mandated by the FTC’s Franchise Rule to include GAAP-based financials in their FDD. As franchisors have started to experience, FASB changed what most franchisor financial statements look like because of the new revenue recognition rules, and we are now starting to see how financials are changing. By next year we should be able to draw some conclusions about whether these changes are having a material impact on those who are using the financials for decision-making…
Savvy entrepreneurs seek out franchising opportunities for many compelling reasons. At the top of the list is the desire to own a company without the groundwork required to run a single-owner operated business. Entrepreneurs troubled by the unknowns of business ownership often find franchising a happy medium...
09/16/2019
Franchisors offer all kinds of assistance to help franchisees find funding. Among the dozen we spoke with, the most common types included waiving or reducing franchise fees and/or royalties for the first year or more; connecting franchisees with approved banks and other lending sources that have already vetted the brand; and offering discounts and financial incentives for additional units and accelerated openings. Simply put, lenders want to lend, franchisors want to grow, and franchisees want to start their own business or expand the one they have…
09/09/2019
During the last two years, franchisors have been facing courts and legislatures that appear to be increasingly hostile to franchising, as greater numbers of franchisor-franchisee relationships are being deemed to be franchisor-employee relationships. This column summarizes some of the most serious recent challenges to the franchise business model…
09/03/2019
Interdependent relationships, where you can't just walk away when the going gets tough, can be both satisfying and frustrating. Think marriage, business partnerships, long-term supply agreements, and of course, the franchise relationship. Regular constructive conversations are essential to keep things on track...
08/26/2019
Franchise brands continue to be strong financial performers and great investment opportunities, according to the University of New Hampshire’s franchising sector-focused RIFC 50 Index. The index gained another 7.3 percent in the second quarter, following an 8.4 percent gain in the first quarter of this year. The index tracks the financial market performance of the U.S. franchising sector…
...After all, even the large US domestic market has less than 5% of the world’s potential customers... It may be time to go international! But where do you go first or what countries do you target first for further expansion?...
08/12/2019
Over the last 15-plus years as a franchise consultant, I've worked with hundreds of men who readily embrace franchise ownership as a diversification or exit strategy. But it wasn’t until more recently that many women began contacting me to find the right franchise investment and income opportunity for themselves…
08/05/2019
To increase agreement signings and improve the quality of new franchisees, make sure you're managing a recruitment system and process with the essential components. I'd like to suggest that you think about building a winning recruitment program using the Four Pillars approach. Success requires proper implementation and execution in all four areas below. To determine where you may need to focus, consider the following elements of each of the Four Pillars.
Perhaps the most basic question people want to know when researching a franchise opportunity is, “How much money can I make?” It can be difficult to find a clear answer, but there are a few things you can do in order to gain a better understanding of one’s earning potential…
BirthdayPak has ranked #5 out of 20 in the first ever top 20 franchise rankings presented by FranchiseHelp. In addition to ranking #5 overall, BirthdayPak also brought in a silver award for fastest growing franchise and a bronze award for top-performing emerging franchise...
07/29/2019
For more than 35 years, umami fans have been able to dive into Yoshinoya’s signature beef bowls whether they were in the U.S., Japan, or Hong Kong. The Tokyo-based fast casual’s longstanding presence demonstrates success in one of the most challenging areas of limited-service growth: bringing a beloved foreign brand into the U.S. It can be tricky but rewarding terrain…
The Federal Trade Commission issued a notice last February asking the public if the FTC should, once again, make changes to its Franchise Rule. The agency stressed that the primary purpose of the Franchise Rule is to provide prospective franchisees the material information they need in order to weigh the risks and benefits of purchasing a franchise…
"What's the ROI of an impression?" No matter if they're seasoned marketers or bootstrapped founders, this is a question I hear from clients all the time. It comes up a lot. Listen, I get it. I've asked myself the same thing. Why are we advertising, if not to drive sales?...
07/22/2019
Venture X®, a global shared workspace franchise, announced today the company has joined the Global Workspace Association. The Global Workspace Association (GWA) is a connection-based resource for shared space operators, workplace strategists, real estate investors and service providers to stay connected, current and competitive. Having Venture X join the GWA positions the brand with industry peers and provides additional industry resources to Venture X's network of franchisees...
