Operating A Franchise

How Franchisees Can Manage and Motivate Their Employees

Most franchisees are highly dependent upon a small group of employees. This article provides suggestions for motivating a franchise's most important asset.

Use a Business Plan Format to Analyze and Improve Your Franchise Operation

Franchisors and franchisees can use a business plan as a way to evaluate and measure the performance of their franchise operation.

The Reasons Why Startup Franchisors Fail

Business owners that are considering franchising their business should understand why a startup franchisor can fail before taking the plunge.

Trouble Connecting with Your Franchisees?

Some franchisors experience difficulty connecting with and motivating a certain number of their franchisees. Here are some tips for dealing with this problem.

Export Your Franchise and Leave your Brand Home

A simple and creative way franchisors can take their franchise international.

Making a Case for Incentivizing Franchise Royalties

Franchisors should consider a decreasing franchisee royalty percent, based upon the revenues their franchisees achieve.

Franchisors Can Benefit From SWOT Analysis

Franchisors can gain significant benefits by using SWOT Analysis to evaluate their company.

Small Franchisors Can Go International Too

The size of a franchise system shouldn’t be the only qualifier for international expansion.  A small franchisor could be just as qualified for exporting their concept as larger franchisors.

Franchise Sales Lead Generation High Tech or Just Throwing Darts?

Identifying qualified franchise prospects as efficiently as possible requires a targeted approach compared to simply generating lots of unqualified leads from various market areas. Read more >>

Franchisors and Franchisees Shouldn’t Forget the Telephone

Franchisors and franchisees may be missing opportunities and important information by relying more on technology, and less on the telephone.

Where International and Domestic Franchising Strategies Converge

Franchisors engaged in international licensing need to recognize that with few exceptions the days of high upfront licensing fees are over. Read more >>

Ten Franchises I Like for 2013

Here are ten solid franchise opportunities that did well during 2012 and are poised for continued growth in 2013 and beyond.

Overcoming Flat or Negative Franchise Growth in 2013

The franchise industry is still growing, but not as fast as it used to. Here are some tips for franchisors that are experiencing flat or even negative growth.

The Franchise Industry Year in Review

Here are some franchise industry highlights from 2012. Many of these trends will continue into 2013.

Franchising Can Learn a Lesson from Great NFL Coaches

Franchisors and franchisees can benefit from the leadership style and management skills of the NFL’s great coaches.

When Franchising Your Business Temper Expectations

Often times a start-up franchisor shares the same expectations as a new franchisee. Both see future success and a smooth road but neglect potential pot holes.

Will Sandy Impact Franchising in the New York Metro Area?

The aftermath of hurricane Sandy could have serious short range implications for franchises in the New York Metro area.

Franchising a Business “An Overview”

For business owners considering franchising their existing business here is a straightforward outline of the franchising process.

What Franchisors Can Learn From Home Care Franchising

Read what franchisors can learn from home care franchising and which attributes are transferrable.

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.

Can Multi-Franchise Ownership Work for the Smaller Franchisee?

Is it possible and practical for a unit franchisee to own and operate different franchise brands?

How Pareto’s Principle Plays a Role in Franchising

We’ve often heard of the 80-20 rule but probably don’t apply it to franchising. Learn why we should analyze a franchise network using the 80-20 rule in reverse.

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.

Overcoming the Biggest Challenge New Franchisors Face

The most important challenge a start-up franchisor faces is selling new franchises. Learn how to meet this challenge.

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 going international.

Two Men and a Truck: The Maturation of a Franchisor

Two Men and a Truck a growing franchise system was receiving kudos as an example of the small family owned business that evolved into a successful franchise. Then it encountered problems. Learn how the Two Men and a Truck franchise program got back on the road to success.

Bring Back the 40 Hour Work Week

It may sound a bit radical but here are some reasons why the 40 hour work week is a good idea.

Laugh Yourself to a Better Network

Here is sound advice for both franchisees and franchisors. Mr. Agin reminds us of the role humor plays in the business world.

Franchisors’ Communications: Don’t Ask - Don’t Know

In today’s 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 network.

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 cost.

Going International? Don’t 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 process.

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.

Top 10 Underperforming Franchise Segments

See the top 10 franchise sectors with those franchisors that had trouble growing.  I call them underperforming franchisors.

Grow Your Franchise Network by Changing Sides

Franchisors are constantly seeking new and better ways to grow their franchise network, which can range from improving the franchise program to generating more franchise leads. There is another approach that ought to be tried.

Franchising a Business? Learn the Fundamentals First

Small business owners contemplating franchising their business should possess basic business skills. Before embarking on the road to franchising the small business owner should inventory their business skills and if necessary sharpen them before attempting to franchise their business.

The Area Development Franchise Has Its Drawbacks

The area development franchising model has a number of advantages not the least of which is the potential for faster system growth. However, there are a number of disadvantages as well.

6 Management Tips for New Franchisees

Buying a franchise is just the first step in running a new business. This article presents six tips that can increase the opportunity for a successful franchise operation.

A Startling Franchise Industry Statistic

During the process of gathering some franchise industry data I discovered an interesting statistic. Read more to learn out what I found.

Five Important Questions the Franchise Industry Should Answer

The franchise industry should be able to find a way to provide answers to at least five questions about franchising. Whether it’s the IFA, the Census Bureau or an academic institution there is certain fundamental information that ought to be available on a regular basis.

Critical Franchise Decisions

There are certain key steps that ought to be followed whether you’re a business owner considering franchising a business or an existing franchisor looking to go international.

Brazilian Franchise Sector Exceeds Expectations

A recent report on the state of franchising in Brazil provided by Mercado & Consumo includes a number of key statistics and indicates that the franchise industry in Brazil is dynamic.

When It Comes to Trademarks Franchisors Need to Do Their Homework

Whether you’re a current franchisor or a business owner contemplating launching a franchise program protecting your brand name by trademarking it is much more important than you may realize.

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.

China is Hot on Franchising

There is an effort underway in China by a Government agency that is encouraging franchise growth. Read this article to learn how China is encouraging franchise growth.

Top Franchise Advertising Portals

Find out which franchise advertising portals led the pack for 2011. Here are the leaders for the last quarter of the year.

How to Prepare a Company to Franchise

A number of business owners consider franchising as a possible strategy for growing their company. However, considering a franchise program is one thing and making the decision to actively proceed is another. Before moving to a franchise operation, there are certain steps that should be taken to prepare the company.

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 leadership style.

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.

Sound Leadership Practices for Franchise Operators

There are certain practices that all good leaders follow. These practices or traits should be practiced by individuals who lead a franchisor or franchisees operation.

China and the Global Marketplace: Opportunities for U.S. Franchises

There are changes taking place in China. Some of these changes can represent an opportunity for U.S. franchisors. Learn what is driving these changes and what it will mean.

Franchisor Strategies for System Growth

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 it’s not the only way to grow the franchise network.

Interviewing Franchisees and Employees: Part I

This is the first of a series of articles on how to interview and select the right franchisees and employees. Learn why you can’t rely on instinct alone.

Franchisors Need to Take More Risks

It’s been a challenging few years for the franchise industry, especially when it comes to growing a franchise network. However, it’s during times like this that success often comes to those willing to take risks. Franchisors should consider taking steps that may be out of the mainstream, but can help add new franchisees to the network.

Virtual Events – The Next Evolution in Lead Generation

Franchisors seeking qualified franchise prospects need to follow the trends that people follow.  In the past print media was the source of most franchise prospects. All of this has changed with the introduction of the Internet. Find out where technology and individual preferences will lead to in the ongoing pursuit of qualified franchise prospects.

Should Franchisors Encourage a Franchisee Association?

The establishment of the Coalition of Franchisee Associations and its ratification of the Franchisee Bill of Rights could portend more franchisees seeking to organize their own associations. How should franchisors deal with the formation of a franchisee association? Resist, encourage, and remain neutral?

Franchisors Need To Be Confident Yet Candid

Franchisors have to walk a fine line between confidently presenting their franchise concept to qualified prospects while being candid about the amount of effort it takes to be successful. Franchisors that effectively balance these activities can develop a network of successful franchisees and lower the risk of franchisee failures.

Conversion Franchising: Just What the Doctor Ordered

The current recession has resulted in significant challenges for small business owners whether independent or franchised. Learn how conversion franchising can be an effective strategy for franchisors, small business owners and the franchise industry.

Creative Ways for Franchisors to Attract New Franchisees

For the past several years, the recession and the resulting reduction in the traditional sources of new franchisee investment capital has slowed the growth of new franchisees. The real estate market has shrunk home equity values and small and medium banks have significantly tightened business loans. Here are some creative ways franchisors can stimulate new franchise growth.

The Franchisor-Franchisee Relationship:  A Tale of a Failed Store

There is sometimes a pattern among failed franchise stores. This article deals with the results that can arise when an owner becomes complacent or disengaged with their franchise and how to prevent it.

Women and Franchising Go Together

Women are playing an ever increasing role in the franchise industry both as franchisees and franchisor executives. There are certain traits that women have which make them excellent franchisees. Learn why women and franchising are a perfect fit.

It’s Important That Franchise Leaders Control Their Egos

Effective leadership often requires striking a balance between ones ego and the need to solicit and encourage constructive feedback.  Because franchisors must lead their organization, employees and franchisees to their respective goals, it’s important that ego not impede these important objectives.

Not All Franchisees Are Created Equal

It’s a proven fact that buying a franchise is not a guarantee of success. Moreover, there are few McDonald’s 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 “Program.”  Rather, many franchise systems fall short in certain areas, which may require its franchisees to overcome these shortcomings.

Franchisors and Franchisees Must Avoid the Peter Principle

It’s 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, it’s important that this growth be carefully controlled.

Why Franchisors Should Evaluate Their Franchise Competitors

During these challenging economic times, individuals seek the greatest return on their franchise investment. In order to grow their system franchisors need to offer the best opportunity and value to prospective franchisees. For these reasons, it’s important for franchisors to perform a competitive analysis of franchisors that are direct and indirect competitors.

Franchisors Shouldn’t Hold Back on Financial Disclosure

It’s important that franchisors disclose as much meaningful financial information about their franchise opportunity as possible. Providing franchise candidates this kind of information can prevent future franchisee problems from arising.

The Franchisee Bill of Rights-What’s Next?

The Council of Franchisee Associations represents over 15,000 franchisees through its various franchisee association members. Recently it proposed a Franchisee Bill of Rights. Read why this action could lead to greater changes in franchisee-franchisors relations.

Resolving the Controversy of Franchise Brokers

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.

Exclusive versus Non-Exclusive Franchise Territories: A Compromise

There are situations when franchisors should allow franchisees to conduct business outside of their territory. Learn why the choice between exclusive and non-exclusive territories is not quite as clear cut.

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.

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.

Franchisors Going International Must First Answer Five Questions

Before deciding to go overseas franchisors need to carefully analyze their qualifications and commitment to the foreign venture. This article lays the foundation for making that decision.

Development Agents: A Blessing or a Curse?

A number of franchisors look to development agents for increased system growth. Despite the benefits this approach can provide, there are also a number of drawbacks. Read about them here.

Spotlight Franchise: Elements Therapeutic Massage

Massage therapy is a growing business in the U.S. and this growth extends to franchising. Learn how Elements Therapeutic Massage is achieving success in the massage therapy sector through franchising.

Why Don’t More Franchisors Disclose Franchisee Results?

An Item 19 disclosure is an optional franchisor disclosure made in the Franchise Disclosure Document. It presents the financial performance of the franchisor affiliates, franchisees and company-owned units. Here's why many franchisors omit this disclosure and some of the reasons they should.

The Franchise Disclosure Document Tells a Story

When the Franchise Disclosure Document and franchise contract is properly reviewed it can tell a story about the franchisor. Learn which items are most important, what to look for, and why you need qualified advisors.

FranchiseKnowHow Spotlight Franchise: i9Sports

Being an avid sports fan I was interested to learn more about the i9Sports franchise. I found it to be a great concept with the right product for children. Its objective in removing the stress and emphasis on winning so prevalent in children's sports is refreshing. The following is my interview with Brian Sanders, President of i9Sports.

Building and Maintaining Positive Franchise Relations

Franchise relations is the term typically used to refer to the state of the relationship between a franchisor and its franchisees. It is perhaps one of the more important matters that franchisors deal with in addition to growing the franchise network and increasing sales and profits. Here are four things you can do to build and maintain positive franchise relations.

FranchiseKnowHow Spotlight Franchise
Bookkeeping Express: What the Small Business Owner Needs

Recently, I interviewed Greg Jones, CEO of Bookkeeping Express a franchise concept that targets small business owners.  Read the interview and learn about this exciting franchise and the services it provides small businesses.

The Traits That Define Good Leadership

Numerous books and articles have been written on the subject of leadership. When it comes to the world of business there are certain traits that all successful leaders share. This article presents these key traits and serves an opportunity to ask yourself how you compare.

Stalco Construction: FranchiseKnowHow Spotlight Supplier

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.

What Franchisors can Learn from Traditional Recruiters

Franchisors frequently cite a lack of suitable franchisees as a significant barrier to their growth. Steven Frost, Franchise Consultant at Smith & Henderson, explains what they can learn from traditional recruiters to help overcome this.

Attention Franchisors and Franchisees: A Successful Franchise Shouldn’t Require Extraordinary Performance

In a prior article I presented a number of reasons why some franchisees fail. One of the reasons for the failure of a particular franchise was that the franchise program was flawed. The following article attempts to explain how franchisors and franchisees can address this specific issue.

Spotlight Franchise: CMIT Solutions

CMIT Solutions franchise network is a franchise company that’s 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.

Spotlight Franchise: Red Mango Yogurt

Red Mango Yogurt is the Real Deal. Read this interview with James Frank Vice President of Franchising.

How Franchisees Can Gain More Time and Develop Their Employees

This article with shades of Management 101 offers some simple advice on how franchisees and their managers can gain more time and improve the skills of their subordinates.

Franchise Know-How Spotlight: Cybertary

Patricia Beckman,  founder and CEO of Cybertary has developed a unique franchise concept that provides a number of services for business owners while offering individuals a reasonably priced home based franchise opportunity. Following is an interview with Cybertary's founder Patricia Beckman.

How Satisfied Are Franchisees with Franchisors?

Jeff Johnson, founder of FranSurvey, has the answers.. and he's turned them into a business.  Listen as he discusses FranSurvey with Ed Teixeira in this podcast.

How Franchisors Can Reach the Top Using 10 Building Blocks to Success

If you search the Internet, you’ll find lots of articles describing what makes for a successful franchisee, but few if any describing what makes for a successful franchisor. Here are ten building blocks that can serve as the foundation for a successful franchise.

How Franchisees Can Perform Effective Employee Evaluations

Franchisees must rely upon their employees to assist in the operation and marketing of their franchise. An important component of employee leadership and development is the ability to conduct effective performance appraisals. The following tips can result in more effective employee evaluations and improved performance.

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 important.

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 franchisees.

FranchiseKnowHow Introduces Online Business Courses

FranchiseKnowHow provides online business courses for franchisees and their employees.

We've partnered with MindEdge, a premier online learning provider, to introduce a library of online business, management, communication and leadership courses.

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.

As a special introductory offer, all courses and course suites are available at a 10% discount off posted pricing for a limited time only.  Just enter Discount Code FKH10 when registering.

The Importance of Good Training for Franchisees and Franchisors

One of the major reasons people purchase a franchise is to acquire a business with a proven system. This proven franchise system should include an effective and comprehensive training program. Learn about the components of a successful franchise training program and find out why it’s so important for both the franchisee and franchisors.

An Interview with Ron Berger, Franchise Industry Leader and CEO of Figaro’s Pizza

This is the second part of an interview with Ron Berger, CEO of Figaro’s 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 1980’s, 90’s and until February, 2010. Part 2 of our interview includes a discussion of recent acquisitions by Figaro’s and a program that enables existing Figaro’s franchisees to benefit directly from the acquisition.

The Benefits of a Franchise Preferred Vendor Program

Franchisors should actively organize and administer preferred vendor programs for their franchisees. An approved or preferred vendor program provides benefits for the franchisor and franchisee. Read this article to learn more about a preferred vendor program.

Home Based Franchises Grow in Popularity but Operating These Franchises Requires Certain Skills

As the popularity of virtual or home office businesses increase, so do franchises that can be operated from the home. Home based franchises provide individuals an opportunity to purchase a low cost franchise with the added flexibility of a home based operation. However, there are certain challenges that a home based office presents.

Are You Ready to Franchise Internationally?

At some point in time, franchisors will start receiving inquiries from international prospects.  For new and emerging franchisors, an interest in their franchise from other countries can be flattering. Before a franchisor decides to export their franchise concept to other countries they need to perform some self analysis and make sure they’re fully prepared for this new venture. Here are 11 important steps to follow before entering foreign markets.

Establishing a Franchise Program

Once you've determined that your business is a good fit for a franchise, the next step is to design your franchise program. Here are some of the things you'll need to do before you can begin selling your franchise.

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 financial model.

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.

Where New Franchisors Can Find Capital

During current economic times, it’s often difficult for start-up franchisors to obtain investment capital. This article describes three potential sources of investment capital that can meet the capital needs of new franchisors.

Delegate It!

Learn how to more effectively delegate and improve your productivity and add more free time to your schedule. This article presents 5 tips for delegating.

How Franchisees Can Manage and Motivate Their Employees

In order to operate a franchise, most franchisees are highly dependent upon their employees. Learn how franchisees can be more effective in managing and motivating their most important asset, their employees.

The Importance of Franchise Operations

Once the franchise agreement is executed and the franchise fee paid, the relationship between the franchisor and franchisee begins in earnest. A competent and experienced Franchise operations Department is needed to train, support and lead a successful franchise program. This article describes what constitutes effective franchise operations for both franchisors and franchisees.

What the Sale of New Franchises May Reveal About a Franchise Program

In the franchise industry the sale of new franchises is often used to measure the strength of a franchise program. In some cases, fast tracking new franchise sales can lead a franchise program into trouble.  Learn how the sale of new franchises may not be the best indicator of a successful 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, it’s important for franchisees to identify warning signs that their franchisor is having problems. Find out what these warning signs are and how to respond.

Five Key Attributes of Successful Food Franchises

What separates food franchises that are successful from those that aren't? Here are 5 best practices of successful food franchises.

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 franchise territories.

Why You Need An Accountant

It is essential that prospective and current franchisees have an experienced accountant on their franchise team. Many franchisees lack the financial skills necessary to operate a business, and a good accountant can provide them with the information necessary to make informed and sound financial decisions. Here are the kinds of vital services an accountant experienced in franchising can provide.

Staffing a Franchise

When it comes to staffing, franchises offer some unique benefits and challenges that you need to be prepared to address. Since employee-free franchise opportunities are rare, you'll want to learn about these issues now so they don't become a problem in the future.  These tips will help you learn how to  hire and train employees for your franchise location.

Five Common Mistakes of Home-Based Business Owners

More and more individuals are opting to work from home; about 30 percent of this population working at home with a home-based business. The advantages of a home-based business are often cited, but not so often the challenges. Read about the five common mistakes home-based business owners often make and how to avoid them.

Franchise Relationships: Working With Your Family

Don't underestimate the impact of family issues on business success. It is more often than not the human issues that make the difference between success and failure.  Here are a number of tips  for families that live and work together.

Five Ways Franchisees Can Promote Positive Franchise Relations

It's not just the franchisor who is responsible for the promotion of positive franchise relations. Franchisees also need to take some responsibility. Both parties have a stake in the business relationship with the mutual objective of achieving positive and profitable results. Learn five ways franchisees can facilitate positive franchise relations.

Franchising Your Business

An existing company with one or two company‑owned operations can gain significant benefits by franchising their operation. However, the first step is to evaluate your company as a franchise as objectively as possible.