Posted on Jun 17, 2011
Franchise Fridays for June 17, 2011: Top Franchise and Small Business News of the Week
Facebook Dominates Other Social Media Channels in Referral Traffic
If it wasn't already obvious how absolutely critical it is that franchisors understand how to use Facebook (more than any other social media platform) to promote their brand, expand their reach, and engage their fans, some amazing data from content-sharing button maker ShareThis reveals that fully 38% of all online sharing activity takes place via the world's largest social media platform! Indeed, Facebook's 38% dwarfs both Email (17%) and Twitter (11%) as far as the percentage of sharing referral traffic. Of course, one shouldn't lose sight of the power of the internet's #1 kingmaker: search engines are still tops, driving about twice as much web traffic as all social media platforms put together.
Read more about the Share.This study, as reported by TechCrunch.
Low Risk Opportunities
CNNMoney released an article this week that reviews 10 low-risk franchise opportunities based on SBA loan default rates. A low loan failure rate is seen as a sign of a franchise system's health (or at least a measure of the franchisor's ability to sign on franchisees with staying power), and lenders both inside and outside of the SBA program keep a keen eye on this data. Each franchise profile in the CNNMoney article lists the franchise system's number of SBA loans, number of failed SBA loans, and calculated loan failure rate.
Read the full article on 10 low-risk franchise opportunities.
Are Sandwich Franchises Better?
Forbes' Deborah Sweeney gives 5 reasons that franchises in the sandwich industry -- from global juggernaut Subway, to industry whipping boy Quiznos, to smaller Pret a Manger -- continue to expand their reach in a seeming endless onslaught. Whether you agree with them or not, these 5 points are surely food for thought.
Read the whole article on the success of sandwich franchises.
Arby’s Sold for $130 Million Cash ($320 Million Enterprise Value)
Wendy’s/Arby’s Group has sold most of its Arby's franchise chain to Roark Capital Group, a private equity firm whose franchises portfolio already includes Wingstop, Auntie Anne's and Carvel Ice Cream. Roark will pay $130 million in cash for Arby’s and will assume $190 million of Arby's debt. Wendy’s/Arby’s Group will retain 18.5% of Arby’s, and use the proceeds of the cash sale to hasten restaurant renovations and build out new units.
Read more about Roark Capital Group buying Arby’s.
Striking a deal with Brazilian franchisee Brazil Best Food Inc. (BBF), the Quiznos franchise will take its QSR concept south to one of the fastest-growing economies in the world. As a result of the arrangement, 200 Quiznos restaurants are expected to open in Brazil, including 7 by the end of 2011. Quiznos said it would customize its sandwiches to match Brazil’s taste and preferences, but no word was given as to how the franchise will convince these beautiful, tanned people to leave the easy beach life behind to work in a fast-casual restaurant.
The chain is also looking to expand beyond the American continent, with plans for India and Kuwait, where their first locations are expected to open by mid-summer.
Read more about Quiznos entering the Brazilian market.
That’s all for this week from the staff at FranchiseHelp.com, the industry’s top independent provider of information on franchise opportunities, business opportunities, franchise documents, and more! Keep up with FranchiseHelp.com news & updates, sent straight to your inbox! Join thousands of others and sign up for the FranchiseHelp.com newsletter.
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