06/29/20
In response to what it perceived as the significant impact the COVID-19 pandemic has had on many franchise businesses, on June 17, the North American Securities Administrators Association (NASAA) Franchise and Business Opportunities Project Group—the quasigovernmental organization of federal and state franchise regulators that coordinates regulatory policy nationwide—issued guidance...
During a unique time such as this, entrepreneurs and employees alike are considering their next business plans, and how to best be successful in the future. Fortunately for those who are ready to take the next step, history demonstrates a positive outlook as entrepreneurs are often born after a recession or major historical event...
Ray Kroc is often credited as the “father” of the franchising business model. But 60 years before McDonald’s, a woman named Martha Matilda Harper built her own formidable franchise of hair salons — the first of its kind in the US — and trained hundreds of underprivileged women to run their own businesses...
06/22/20
Entrepreneur takes great pride in its Franchise 500 rankings. We’ve ranked the best franchises in the U.S. for more than 40 years, focusing on five primary categories: costs and fees, support, size and growth, brand strength and financial strength and stability. You can read here how Dunkin’ took home top honors in 2020 and check out our top 20 franchises, but that doesn’t mean investing in a Dunkin’ — or any of the other top franchises — is the most profitable choice for you...
It’s safe to say that this spring was the worst period American restaurants have ever faced. The coronavirus pandemic was the type of scenario no one could have envisioned, unfolding one nightmarish day at a time. The crisis also exposed which franchises had an efficient line of communication throughout their brands to, at the very least, help themselves and their franchisees weather the storm...
The thought of launching a business at any time can be daunting. But in the wake of a worldwide pandemic, it may seem downright terrifying. The uncertainty around COVID-19 has frozen some people into inaction, while others are making bold moves. One of my favorite quotes by T.S. Eliot says it all: “Only those who will risk going too far can possibly find out how far one can go.” As an entrepreneur, I live with risk, and I always see possibility. The reason I have been drawn to franchising is that the risk is calculated, and the opportunities are plentiful...
06/15/20
When your business is successful and growing, the idea of franchising can be incredibly enticing. After all, it's an easy way to expand your company's presence while leveraging the passion and drive of aspiring entrepreneurs who want to manage their own location. However, it's important to think through this decision and determine whether becoming a franchise is right for your business at this time…
As you progress in your entrepreneurial journey, you’ll begin to think of new ways to branch out and stretch your limits. Diversifying your investment portfolio helps you maximize returns and minimize risks. Entrepreneurship is one way that bold businessmen and women take the plunge into diversification and career advancement. But there’s another option to consider: franchising...
06/01/20
Indiana issued a compliance alert covering four updates to the Indiana franchise laws to take effect on July 1, 2020. The changes (i) add a duty to update FDD within 30 days of a material change (ii) grant the ability to select specific annual registration termination dates, (iii) clarify the exemption coverage; and (iv) clarify that franchise fees are non-refundable…
With businesses reopening throughout the country comes the realization that "business as usual" is no longer the norm in the era of COVID-19. What are some of the key legal considerations as franchised businesses reopen?
Businesses across the globe are fighting for their survival during the current COVID-19 crisis. In virtually every industry, the businesses that survive will have to change the way that they operate and interact with consumers. They say necessity is the mother of invention, and Coronavirus has undoubtedly forced many businesses around the world to rethink operations. For franchise brands in particular, success will require franchisors to support franchisees and customers by pivoting their business models to better suit the changing marketplace...
05/25/20
Franchise owners face a difficult dilemma as the country re-opens: As local, state and federal levels dictate different rules, owners with stores in multiple jurisdictions are having trouble relaying a consistent message to their employees. The International Franchise Association (IFA) has organized tasks forces across a range of franchise brands to gather information and recommendations that will be delivered to the White House and Congress. I spoke with Matt Haller, IFA’s senior vice president of government relations and public affairs, on these recommendations, as well as what can be done to help franchise owners and their employees meet unique consumer needs in their markets…
Amidst the chaos of our world right now, our instinct may be to hunker down, wait it out, and weather the storm — essentially, hit pause. But for business owners, and especially franchisors who have an entire network of partners to consider, hitting pause is the worst move to make. Now’s the time to keep swimming to stay alive...
05/18/20
Buying a franchise is potentially a very profitable way of owning your own business. The franchisor can’t guarantee the franchise business owner will be successful. But studies of the franchise business model have proven franchisees are more likely to be successful than if they had started a business on their own...
05/11/20
...While this ongoing crisis is causing hardship all around, franchise systems will eventually recover. This will undoubtedly present opportunities for existing and prospective franchisees interested in buying or selling franchise units amidst recovery from this difficult period…
...Franchisors are keenly aware of these challenges, and have the opportunity to provide critical leadership, support, communication and information to help franchisees navigate this changing environment. Here are some of the key issues for franchisors when helping franchisees reopen – some may call it making a comeback…
In franchising, most companies know how to prepare for seasonality, employee turnover and economic downturns. But no franchise systems have had to face the breadth and depth of the economic impacts of our current and uncertain times. The good news? Franchise sales will rebound eventually, and given an extended, months-long lead-to-sale timeframe, franchisors can start preparing their organizations and ramping up their lead generation efforts right now...
05/04/20
...Challenging as these times are, there are several concrete steps that franchise owners can take to help survive the current environment. For starters, right now is a great time for franchisees to go through their P&L statement with a fine-tooth comb and look for any non-essential services that they don’t need or can cut…
With nearly a million franchise establishments in the U.S., COVID-19’s impact on franchising has been huge, and not just in negative ways. Franchising has already seen many positives come out of the crisis. Optimists by nature, franchise leaders have moved mountains in record time to keep their businesses alive and to support their franchisees. Many have innovated and discovered better ways of doing things. New concepts and ideas have emerged. The franchise community has stood up to help each other and the heroes on the front lines. In the coming months, we will surely see even more positive changes, but the following have already become clear...
04/20/20
In addition to announcing rescheduled dates for the highly anticipated International Franchise Expo (IFE) now set to take place October 1-3 at the Javits Center in New York City, IFE is unveiling its first-ever virtual, online event May 28-30 in an effort bring together the world's franchise community amid COVID-19...
...The economy needs commerce, and workers need jobs. Franchise ownership is a big part of that. As an industry that typically employs more than nine million people in the U.S. alone, we need franchise businesses up and running as quickly as possible...
