Before considering a franchise opportunity itís important to know why a
franchisee can fail. Armed with this information, it will make it easier to
determine if youíre suited for a particular
If Youíre Buying a Franchise Having the Right Attorney is Crucial
Be sure to use a franchise attorney if youíre going to buy a franchise. Here
are the reasons why you shouldnít go it alone or use any attorney.
Read more >>
Buying a Franchise? Do You Really Know the Franchisor?
If youíre focused in on buying a particular franchise, itís important to
be familiar with the franchisor
and how the staff performs before signing the franchise agreement.
These Franchises Have Substance
We took a look at different franchise sectors to see how some performed in
the past five years. Here are the
Franchisors Can Benefit From SWOT Analysis
Franchisors can gain significant benefits by using
SWOT Analysis to evaluate their
For those considering investing in a franchise opportunity the first step
should be to gain some basic
knowledge of franchising. This ought to be done before searching for
franchises and using franchise consultants.
Does Your Hiring Process Meet The "Definition of Insanity"?
Is there an easy way to hire employees that make you more money? You bet!
And you don't have to spend a lot doing it. In fact, you can do it
without spending a dime.
Rollovers as Business Start-Ups (ROBS): Thinking about the Risks and
Attorney, Michael Sheehan describes the pros and cons of using retirement
funds to capitalize a new franchise or business. Itís a comprehensive look
into the subject of Rollovers as
California Department of Corporations Sanctions Restaurant Franchisor for
Violations of California Franchise Investment Law
Executive Care Announces Nationwide Expansion through New Franchising
Executive Care launches new franchise program. Will build on the success
of it's New Jersey and Florida operations.
Read more >>
Patrice and Associates Franchise: The Right Recipe for the Hospitality
The Patrice and Associates franchise has all the ingredients for success:
a large market, a flexible franchise
program and ready to serve clients.
Evaluating a Franchise? Franchise Re-sales an Important Consideration
Individuals considering a franchise opportunity should include the
potential for a franchise resale as part of their due diligence process.
Having an exit strategy is a
critical component of any new business start-up.
Itís the Franchise Stupid
Itís important that franchisors and franchise candidates focus attention on
the basic franchise operation and not get sidetracked into other areas.
Can Multi-Franchise Ownership Work for the Smaller Franchisee?
How Paretoís Principle Plays a Role in Franchising
Weíve often heard of the 80-20 rule but probably donít apply it to
franchising. Learn why we should analyze a
franchise network using the 80-20 rule in reverse.
Sloanís Ice Cream Launches Franchise
Sloanís, South Floridaís palatial ice cream, candy and toys paradise
announced today its strategic franchise initiative -- indulging investors with
an opportunity to open their own savory and aromatic wonderland.
Read more >>
If youíre Buying a Franchise Donít Go It Alone!
There continues to be a number of individuals that look to purchase a
franchise without the benefit of
professional advice. It can be the biggest
mistake they will ever make.
Franchisors Need an Effective Board of Directors
A competent board of directors or advisory board can be an invaluable
resource for a franchisor. In the case of small or medium sized franchisors,
having advisors from outside the family offers the opportunity to receive advice
that is objective and based upon experience. Here's what you need to know to
choose your board of directors.
Franchisors Going International Need to be Prepared
Franchisors considering opportunities in foreign markets need to have a
successful franchise program and the resources, operational systems, staffing
and strategy in place before executing their decision. However, there are other
steps that are often overlooked that need to be taken before
5 Tips when Considering a Franchise Business
Here is some good advice for those pursuing a franchise opportunity. These 5
tips can help you to make the right decision.
California Ruling Could be another Step to Franchisor Employer
Learn how a recent decision by a California court could strengthen the
basis for an employer-employee
relationship among certain franchisors and their franchisees.
In todayís age of high speed communication and technology there are a
multitude of ways that franchisors can stay in touch with their franchisees.
Read why franchisors need to have on-going
communication with its franchise
FranchiseKnowHow Offers 15% discount on all Online Training
Take advantage of a special offer from FranchiseKnowHow for franchisors
and franchisees. Provide your employees
online training at a reasonable
Covenants Not To Compete: Beware of the Legalese!
Prospective franchisees need competent legal counsel to advise them
before executing their franchise agreement. Franchise contracts include
legal terminology that can fool
Franchisors and Franchisees: Follow the Housing Market
The Franchise Sales Process is about Qualifying Not Selling
Franchisors and franchisor representatives need to place greater emphasis
on qualifying a franchise candidate throughout the franchising process.
Utilizing traditional selling
techniques in franchising is not the most effective path to follow.
Going International? Donít Forget One Important Thing
Franchisors that are considering exporting their franchise concept to
other countries are advised to prepare by following a
checklist of key items.
However, there is one area that is often overlooked or shortchanged in this
Finding Hidden Franchise Gems
There are a number of franchises that provide outstanding opportunities
for prospective franchisees. Many of these franchises are not well know and
choose to apply more resources on their
existing franchisees rather than selling lots of new ones.
Examining Icebergs: Discovery Day at the Professional Services Franchise
Learn how a Discovery Day visit can vary depending upon the type of
franchise. In the following example, the
operation of a
professional service franchise represents a different experience for
both franchisee and franchisor compared to other franchise opportunities.
Evaluating Your Business as a Franchise
For companies that are considering franchising their business here is a
simple checklist that can provide a
good indication of whether the business could be franchised.
A Certain Trait Franchisors and Franchisees Can Share
Learn how a social media platform
helped franchisor DUCTZ achieve success.
A Business Plan Should be a Requirement for Buying a Franchise
If a franchise candidate was required to write and submit a business plan
to the franchisor before final approval I truly believe the result would be
less franchisee failures and more successful franchise networks.
This article presents the reason
The Secret of Monster Franchise Success as a Franchisee: Move
Deliberately and With Patience
The great news about a franchise business opportunity: Franchises which
are well-considered and conceived by the correct parent franchiser are
tailor made for easier, bigger, and more sustainable success than a
non-franchise opportunity. That
advantage isnít to be taken lightly.
Ten Questions Every Franchisor Should Ask Before Granting a Franchise
Before granting a franchise most franchisors have a process they follow
that begins with qualifying a candidate to ultimately granting a franchise.
However, there are certain questions
that ought to be mandatory for all franchise candidates.
Ten Questions Franchise Candidates Shouldn't Be Afraid to Ask
Managing social media can be difficult and time consuming, whether it’s a Facebook page or Twitter account. For a franchisor and its franchisees, these challenges can be even greater and much more difficult to manage. Learn how to keep
social media content fresh while engaging your customers.
Franchisees need to carefully consider their actions when faced with a
franchisor that is seeking claims
and recourse for violations under the terms of the franchise agreement.
Social Media: For Franchisors the Future is Now
Various social media analysts confirm the strength and continued growth
of social media. Franchisors need to
embrace social media in order
to maintain their market presence and grow their brand.
A Cautionary Tale On Arbitration Clauses For Prospective Franchisees
The following case demonstrates why individuals considering executing a
franchise agreement in California should be cautious regarding franchise
agreements that contain an arbitration clause. Learn why itís important to
utilize experienced franchise
What Are You Doing To Monetize Cold Franchise Buyer Prospects?
Franchising Should Take a Lead from Theodore Levitt
The surging popularity of Facebook and Twitter can cause us to stray from the
basics of marketing. In spite of new technology the
principles of marketing
remain the same.
What Makes a Franchisee Successful?
In a previous article I presented what, in my opinion, makes an effective
franchise leader. This article looks at the other side of the relationship
between a franchisor and franchisee, namely,
what makes a successful
What Makes an Effective Franchise Leader
The effective leadership of a franchise company requires a particular
approach not applicable to most companies. This article presents five key
areas that franchise executives should embody as a part of their
China Should Enforce New Laws to Protect Franchisors
How Fledging Franchisors Can Survive the Recession
As businesses continue to struggle through the recession emerging and
smaller franchisors that are attempting to grow their network can face
obstacles. However, there are steps that can be taken which can lead to
successful outcomes. Read more to see
what these steps are.
A Successful Franchise Below the Radar: The Murphy Business Franchise
Private Equity in Franchising: The Upside and the Downside (Part 2)
In part two of my article on the role of
private equity in the franchise
industry, we look at which kind of franchisors are attractive to PE
firms, the evaluation process, along with the impact on the franchisees of
acquired companies and whatís in the future.
The Role of Private Equity in Franchising: The Upside and the Downside
This is the first of a two part series on the role of private equity
funds in the franchise industry. Weíll examine a number of issues, including
why there has been a dramatic increase in
PE investments in franchise concepts,
the benefits for franchisors, the impact on the franchisees of acquired
companies and whatís in the future.
Starting Up a Franchise Company the Right Way: The MoneySaver Franchise
India continues to offer increased franchise opportunities for U.S franchisors with the world’s largest middle class.
Understanding Indian franchise regulations is an important component for entering the Indian market.
Franchisors Must Use Social Media
Franchisors need to get on the social media bandwagon. Reports that measure social media indicate that its use continues to grow and that it’s is being used by more and more people. Following is what some experts have to say about the use and effectiveness of
social media and its role in franchising.
Sound Leadership Practices for Franchise Operators
Franchisors looking to grow their system can have a tendency to focus on a
single approach; namely selling more unit franchises. However, this strategy
should be adjusted, so that itís not the only way to
grow the franchise network.
There are a number of advantages in owning a home based franchise. However,
there can be disadvantages as well. Franchisees and franchisors should focus on
the pros and cons of home based
franchises when making their respective decisions.
When you Buy a Franchise Pretend Youíre Selling It in Five Years
When individuals purchase a franchise most will plan on selling the franchise
at some future date or operate it until their children can take it over. Iíve
encountered some individuals who plan on operating the franchise for the long
term until retirement. If youíre considering buying a franchise a good approach
to take is to plan on selling the franchise as part of your analysis.
Learn why this strategy can be helpful.
Planning on a Partner for Your Franchise? Here are some Proís and Conís
Itís not uncommon for prospective franchisees to plan on having a partner for
their new franchise. However, there are advantages and disadvantages to a
franchise partnership. Here are some
pros and cons.
The fitness industry continues to be one of the fastest growing concepts in
the franchise industry. This article provides a look inside the
franchise craze and why this sector will continue to grow.
The Universal Franchisee Bill of Rights
At a recent meeting the Coalition of Franchisee Associations ( CFA) ratified
the Universal Franchisee Bill of Rights. Itís important that franchisors and
franchisees understand what this
Franchisor Competency: As Important as the Franchise Concept
There are hundreds of franchise opportunities that are based upon a sound
franchise concept but for various reasons never reach their full potential.
Newly emerging franchise companies need to have competent leadership as well as
the necessary financial resources in order to succeed. Although a sound business
model is a prerequisite for a successful franchise so too are the
skills and the experience of the franchise leader.
Not All Franchisees Are Created Equal
Itís a proven fact that buying a franchise is not a guarantee of success.
Moreover, there are few McDonaldís in the franchise world where a powerful
brand, top notch operating system and a history of near flawless site selection
leads franchisees to success by following the ďProgram.Ē Rather, many
franchise systems fall short in certain areas, which may require its franchisees
to overcome these shortcomings.
The Franchisor-Franchisee Relationship: A Tale of a Failed Store
Required Disclosures Ė Initial Fees: Can Provide Prospective Franchisees
with Negotiating Information
Prospective franchisees should fully understand how much the initial
franchise fee and is there an opportunity to negotiate lower fees. Itís also
important to know if the franchise fee or any portion of the fee is
refundable. Read more >>
Franchisors and Franchisees Must Avoid the Peter Principle
Itís important that franchisors and franchisees maintain a sense of balance
when it comes to franchisee growth. While some franchisees want more territory
and some franchisors are more than willing to accommodate this request,
important that this growth be carefully controlled.
In a report by Franchise Update Media Group, 57% of the franchisors
responding to the survey reported using franchise brokers. Despite the use of
franchise brokers by franchisors, their use remains somewhat
of a controversy. This article explains why.
Does Your State Have Franchise Disclosure Laws? If Not, Then What?
Before searching for a franchise opportunity, itís important to understand
how the State you live in or will operate your franchise, regulates franchising.
In terms of franchise regulations some States do very little while others have
strong requirements. Read more >>
Personal Guaranties in Franchise Agreements: to Sign or Not to Sign
Avoid Becoming a Victim of Franchise Fraud (Part 2)
Franchise candidates should know how to use the information in Item 20 of
the Franchise Disclosure Document. Contacting former franchisees and
obtaining information may be more difficult than appears.
Read more >>
Avoid Becoming a Victim of Franchise Fraud (Part 1)
Franchisees and Franchisors Should Share in the Cost of Promotions
Since sales promotions are a necessary strategy that franchise systems
must employ from time to time, franchisors should construct promotions so
that its franchisees look forward to participating.
Read more >>
Post-Expiration Covenants Not to Compete
Franchisees need to understand the impact of certain provisions in their
franchise agreement when the agreement is terminated. One of the most important
post-expiration provisions is the non-compete.
Learn how to deal with the non-compete
Franchisors and Franchisees Must Learn to Deal with Change
All organizations need to make changes in order to maintain the vitality of
the business. This is true of franchise companies. When significant changes are
made, franchisors and franchisees must be equipped to
deal with change.
Precise Compliance With Notice Provisions Essential for Franchisors
This article by Craig R. Tractenberg of Nixon Peabody appeared in the
Legal Intelligencer. He uses a recent judicial decision involving Dominoís
Pizza to emphasize the importance of franchisorís providing timely and
proper notice to its franchisees and updating the operations manual to
reflect operating changes. Read
it here >>
Thinking of Buying a Franchise? The Proís and Conís
Bob Stewart is Managing Director of a British recruitment and
outplacement firm. As a former franchisee, Mr. Stewart offers his
insight and advice regarding
franchising. Whether in Pounds or Dollars the message is the same.
Helpful Tips When Drafting or Revising a Franchise Agreement
New Franchisors as well as existing franchisors may need to consider
changes to their franchise agreement. Before any changes are made its
important to know what your competitors are doing. In addition, franchisors
need to be aware of objections to certain provisions of the current
agreement, made by prospective franchisees and their attorneys.
Read more >>
Information That Will Benefit Franchise Candidates and Franchisors
When selling a franchise the franchisor should provide the franchise
candidate with the information necessary for making an informed decision. On the
other hand, the franchise candidate should know what information they require
before making their decision. This article provides advice for both parties.
KFC Franchisees Ad Council Receives Favorable Ruling Over KFC Corp.
One of the most important components of a franchisee investment is the
construction work done on the franchisee location. Since this activity is such an important aspect of franchising we welcomed
the chance to meet with Bruce Link, Estimating Department Head of Stalco
Construction. Read the interview here.
Private Equity and Franchising: When Will the Money Get the Game?
To Franchisees: Be Wary of Using Company Credit Cards
When starting up a new franchise, odds are the new franchise owners will be
solicited by credit card issuers. Franchisees need to be cautious when it comes
to the use and control of company credit cards.
What Franchisors can Learn from Traditional Recruiters
CMIT Solutions franchise network is a franchise company thatís on the right
track, helping small business owners to manage their technology needs. In
addition, this franchisor practices what they preach when it comes to supporting
their franchisees. Read more.
Follow up to Rock Music Franchising Decision- Significant Reward in
Favor of Franchisor
In a previous article on the FranchiseKnowHow web site, Craig Tractenberg
of Nixon Peabody reported on a favorable ruling on behalf of the NP client,
Paul Green School of Rock Music Franchising (PGSORM).
Here's an update on that case.
time to time, franchisors and large multi-unit franchisees seek
large capital investments. The key to success is knowing where to
look and what investors will want to know. Here is a presentation
that will put you on the right track for
Prospective Franchisees and Franchisors Should see These Statistics
Franchisees Gain New Financial Benefits Under the Small Business Act
The Small Business Jobs and Credit Act which was just signed by President
Obama provides benefits for franchisees and particularly those franchisees in
the restaurant sector. Here is a short summary of the benefits.
Purchasing a Start-Up Franchise? Here are some Advantages and Disadvantages
Hundreds of new franchises start up every year. Some of these new franchises
can represent a good opportunity for prospective franchisees however; these
individuals need to understand the pros and cons of investing in a brand new
franchise. Here are some of the important considerations to look for.
Franchisors Should be Careful When "Selling" a Franchise
Franchisors should avoid the aggressive "selling" of a franchise; they should
direct their efforts into providing prospective franchisees the information
needed to make an educated and well informed decision.
Learn why this is
Franchisees File Law Suit Against Edible Arrangements
What do Franchisees Really Think about Their Franchise?
Franchisors should know the satisfaction level of their franchisees.
Although, the options for measuring franchisee satisfaction are limited, there
is an effective way to obtain this information. We interviewed two companies
that provide the answers to the questions franchisors should be asking their
Choice of Law and Forum Clarified in Recent
This article on choice
of law and forum provides insight into non-compete provisions in
franchise agreements as regards California law. Franchisors and franchisees
will find the results of these recent decisions helpful.
Five Indicators of a Successful Franchise Program
There are certain attributes that all successful franchise programs
share. This article presents five of the most important attributes. Whether
youíre a franchisor or an individual looking to purchase a franchise read
this article to learn about what successful franchises have in common.
How Franchisees Can Perform Effective Employee Evaluations
An Interview with Ron Berger, Franchise Industry Leader and CEO of Figaroís
This is the second part of an interview with Ron Berger, CEO of Figaroís
Pizza. (Read Part 1 here.) Ron has been in the franchise industry for 36 years and has been a member
of the IFA Board of Directors in the 1980ís, 90ís and until February, 2010.
2 of our interview includes a discussion of recent acquisitions by Figaroís and
a program that enables existing Figaroís franchisees to benefit directly from
Technology and Franchise Marketing: An Interview with Nick Simard of
FranchiseKnowHow wanted to get some answers about how social media, smart
phones and mobile websites are impacting marketing strategies. We called
upon InspiriaMedia a marketing firm located in White Plains, NY.
Here's our interview with co-owner Nick Simard.
10 Things Franchisees Should Know About Their Competitors
Looking for a Franchise? Consider Purchasing an Existing Franchise
If youíre thinking of purchasing a new franchise, you may want to consider
purchasing an existing franchise. Statistics indicate that, on average, a
typical business changes ownership every four years. Franchised businesses are a
part of this universe, and studies undertaken by the business brokerage industry
report that franchised businesses follow the same pattern.
Here are some things to keep in mind
before purchasing an existing franchise.
FranchiseKnowHow Introduces Online Business Courses
We've partnered with MindEdge, a premier online learning provider, to
introduce a library of online business, management, communication and leadership
These professional development courses are designed to enhance skills in
Leadership, Management and more. All programs are condensed versions of courses
developed for, and in collaboration with colleges and universities such as the
Harvard Business School, Boston University, and other world-class institutions
of higher education.
Buying a Franchise? You Better Understand Item 7 of the FDD
Item 7 in the Franchise Disclosure Document requires franchisors to set out
in a prescribed format a franchiseeís estimated initial investment needed to
start the franchise business. Itís important for individuals looking to purchase
a franchise to fully understand what Item 7 contains. A leading cause of
franchisee failure is being undercapitalized.
Learn how to avoid falling into
The Benefits of a Franchise Preferred Vendor Program
These simple guidelines can be used to begin an evaluation of an
existing franchise opportunity. These guidelines also represent the
foundation for building a franchise concept from an independent
business. Follow this list to find important questions and
attributes that you should consider when you search for a particular
franchise. When youíre finished, ask yourself if the franchise
program passes the test.
Franchising your Business? Start with a Financial Model
Individuals looking to franchise their business should start the
process by building a realistic financial model. This article
provides a blueprint for franchising a business with an emphasis on
the importance of using a
realistic and conservative
The Laws of Franchising Remain Unchanged
In the franchise industry there are certain truisms which have remained
virtually unchanged over the years. I refer to them as The Laws of Franchising.
The following are six of these laws.
How Franchisees Can Use Social Media to Connect With their Local Markets
Home Care: A Franchise Opportunity with a Dynamic Market
The home care industry continues to grow and will continue to
represent a large market segment in the future. Franchise companies
that provide home care to seniors are an excellent opportunity for
Read this article to learn
What the Sale of New Franchises May Reveal About a Franchise Program
8 Warning Signs That Your Franchisor is Having Problems
Franchise companies are not immune to the financial challenges
facing many businesses these days. Since franchisees are dependent
upon their franchisor, itís important for franchisees to identify
warning signs that their franchisor is having problems.
Find out what these
warning signs are and how to respond.
Why Franchisees Fail
Before you make a decision to purchase a specific franchise, you
should speak with existing franchisees. However, itís
important to know what questions to ask. Understanding
franchisees fail can help you ask the right questions to
help you evaluate the franchise and your chances of success as a
How To Get Your Franchise Start-Up Off To a Fast Start
Get To Know The Franchisor Before You Buy The Franchise
When buying a franchise, itís important to evaluate the
franchisor. This article will present tips on
getting to know the
franchisor before you sign the franchise agreement.
The Importance of the Franchise Territory
When prospective franchisees discuss their franchise territory with the
franchisor, the focus is usually on the size of the territory. However,
there are other important considerations. Here's what you need to know about
Venture Capital Investment Updates for the First Half of 2010
This article includes results of Venture Capital activity for the first six
months of 2010. Although the majority of investments were made in the technology
sectors increased VC investment represents positive news for business owners and
start-ups. The franchise industry can take comfort from these results knowing
that VC capital is flowing once again. Given the popularity of clean technology
start-ups perhaps a franchise model will be used to grow some of these firms in
the future. Read more >>
Manual For Franchise Buyers
Endorsed By American Association of Franchisees and Dealers.
you thinking about buying a franchise? There's a lot you need to know
before you invest if you want to be successful as a
franchisee. My guide,
Buyer's Manual, is a self-help tool that helps you decide whether or not
franchising is for you and teaches you how to get the information you really
need to choose the best franchise opportunity.
for more information.