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Franchise Articles

Browse our selection of franchise articles and features to help further your knowledge in opening and operating a franchise business. Our exclusive features cover the , , , , , , and site of the franchise business. Written by the editorial team that produces Franchise Update Magazine and Multi-Unit Franchisee Magazine, the franchise industries premier magazines.

Feature Story:

Minimum Wage Protesters Miss The Point »

Multi-Unit Franchisee

Protests coordinated earlier this month by the Service Employees International Union (SEIU) were merely "political theater that does not help close the income inequality gap," according to a statement released by the International Franchise Association (IFA).
IFA President & CEO Robert Cresanti said, "The franchise industry is an American success story and an economic growth engine creating jobs and spawning vibrant new small businesses in local communities across the country." He went on to point out that the franchise business model is a "valuable playbook that provides a pathway to personal and professional success and business ownership for aspiring entrepreneurs. The protests put the future of these jobs and businesses in jeopardy...

Feature Story:

How Houlihan's Is Using Analytics To Improve Its Marketing »

By Jen Gulvik

We asked Jen Gulvik, senior vice president of marketing and creative director at Houlihan's Restaurants, "What analytics are you using to improve your marketing?" Here's what she had to say.

Our marketing has become heavily data-driven this past year with the development of several new business intelligence (BI) systems we're leveraging. We have a CRM platform that integrates transaction data from our POS system with "tokenized" credit card data and our large email customer database. Combining those three data sources, we can communicate differently to recent versus lapsed customers, or based on what they typically spend or buy.

We also can analyze our menu mix by once-per-year customers versus five visits-per-year customers to understand if certain menu items seem to be driving loyalty, for example...

Feature Story:

Social Media Roundup: November 24, 2015 »

By Daniel Lieberman

Pinterest Makes Moves To Boost Digital Advertising Presence
Pinterest has launched a new visual search tool that uses photos "to comb through millions of product images," according to an Adweek report. Earlier this month, a blog on Pinterest announcing the tool, said, "When you spot something in a Pin that you want to learn more about, tap the search tool in the corner. Then select the part of the Pin you're interested in, and we'll show you Pins just like it. You can even filter your visual search results by topic so you find exactly what you're looking for." Retailers of all stripes could benefit from this new capability.

Facebook Wants To Be Your Mobile News Source, Too
Facebook's "Instant Articles" feature serves up stories from its news media partners such as Time, National Geographic, and USA Today...

Feature Story:

A Dominating Presence »

By Kerry Pipes

These franchisees "own" their markets

Some people are born with a deep desire to win. They are passionate, determined, aggressive, and persistent. We've come to label these multi-unit franchisees "Dominators." Some have many locations concentrated in one area, while others have units--and brands--spread across many states.
We interviewed six such Dominators to learn what drives them, what motivates them, and what satisfies them. Each has traced a different path to success, but all are characterized by dedication, hard work, and a never-say-die attitude, no matter what challenges come their way--and each story ends at the same place: success.
This year we introduce four new Dominators and have reconnected with two from previous issues...

Feature Story:

CMO Roundtable: Using Analytics To Improve Your Marketing »

Franchise Update

"What analytics are you using to improve your marketing?"

Robert Pifke
Chief Marketing Officer
Real Property Management
The most important metrics for marketing should be cost per lead and cost per sale. Cost per lead is the media cost divided by the number of legitimate leads. Cost per sale is the media cost divided by the number of actual sales achieved through those media.
Our research indicates that the vast majority of property owners use the Internet to find and assess potential property managers before contacting them. With that in mind, another set of online metrics used includes incremental web traffic and web leads. Leads can be telephone calls to an office or completed web forms from a website...

Feature Story:

Here Comes October 1st: EMV Reader Deadline Looms For Franchisees »

By Tom Epstein

It's October 1, 2015 and a line of hackers is standing outside your store waiting for you to turn on your computer system. Why? So they can steal your customers' credit card data and sell it to the highest bidder, of course.
Okay, it might not be that bad (or at least that literal), but this is a date you can't afford to ignore: it's the deadline for merchants to have EMV-capable devices to read the new, EMV chip-embedded credit and debit cards--or face potentially ruinous consequences in the event of a data breach or hack.
EMV (Europay, Mastercard, and Visa), for years the card format standard in Europe, is now the standard for card issuers here in the U.S. Basically, the long-used magnetic stripe on the back of payment cards is being replaced with a chip that encrypts your data at the point of sale...

Feature Story:

It's Essential To Have A Strong Social Presence »

By Zach Wilson claims, "there are over 2.206 billion active users, a global penetration of 30%." With nearly a third of the world's population interacting on social media platforms, you'll be hard pressed to find a brand that isn't active on social media. Some key reasons a brand would be wise to commit to a strong social presence are:

Brand Recognition
Social media puts you right in front of the consumer's eyes at a fraction of the price of a paid advertisement. Creating social content that speaks in a brand's unique tone and voice goes a long way.

Inbound Traffic
Having a large social following means more consumers are engaging with your promotions. More people seeing these promotions means more people actually visiting your site to get a better feel for your product or service...

Feature Story:

Speed Through Systems: Oxi Fresh's Technology Is So Good, Others Want It! »

By Eddy Goldberg

Franchise systems play up their technology as a differentiator, but Oxi Fresh delivers--in a big way. In fact, other service brands have approached them about using a customized version of their home-built software. "Brands reach out to us all the time," says company founder Jonathan Barnett. So far, Oxi has partnered with one brand, Midtown Chimney Sweeps, which relocated from Southern California to Denver to work more closely with the company.
Before partnering with Oxi Fresh, says Byron Schramm, founder and president of Midtown Chimney Sweeps, "We were a small owner-operated company with branches in several states. We needed a quality scheduling center and researched a lot of brands for solutions." After partnering with Oxi Fresh, sales more than doubled in the first 12 months...

Feature Story:

How To Choose A Brand & Culture You Can Trust »

By Eric Stites

The difference between a weak and a strong franchise is often the alignment between franchisor and franchisees. Franchise Business Review's franchisee satisfaction research shows that franchise brands with strong cultures: 1) have extremely high satisfaction and engagement among their franchisees, and 2) outperform their competitors by a factor of 300 to 400 percent.
Great company cultures don't just happen. They are always the direct result of inspiring leadership and constant efforts to grow, learn, and improve. Trust also plays a crucial role: its absence creates a barrier to performance, while its presence, which promotes creativity and teamwork, accelerates it.
While many franchise brands pay lip service to building trust with franchisees, few actually do...

Feature Story:

New Study Shatters Myths About Top Sales Performers »

By Steve Olson

In my 30-plus years in franchising I have often wondered: What is the "DNA" of a franchise sales superstar? Is it a natural selling talent fueled by tremendous drive? Is it pure luck based on representing today's hottest franchise? Are service brands easier to sell than food brands (which must deal with the greater complexities of real estate, multiple employees, and back-room food prep)?

After much pondering, I enlisted Rebecca Monet, president and chief scientist of Zoracle Profiles, to help shed some light on my questions. We all know that making the right hire for your brand can catapult growth - and that poor to mediocre hires cost many thousands in lost time, marketing dollars, and royalties.

For our research project, 40 seasoned, successful sales professionals were invited to participate in an emotional and social intelligence assessment that has an 87 percent accuracy rating...

Feature Story:

Good News Is Back!  »

By Eddy Goldberg

The good news: Franchising is experiencing a remarkable growth phase - not only in unit count and system-wide revenue, but also in the number of new and emerging brands. The bad news: It's harder to keep up with all the good news! That's a nice problem to have - and why we're bringing back our "Good News" roundup of selected news items about unit growth, investment and financial developments, international expansion news, refranchising, and milestones attained by franchisors large, medium, and small. Here's your chance to follow the leaders, every third Tuesday of the month.
So if you're not doing it already, send us your good news here.

New Units/Growth/Expansion

Goldfish Swim School To Open 20 Units in 15 Months

Dunkin' Donuts To Add 24 More in Twin Cities Area

Hurricane Grill & Wings Signs 2nd Calif...

Feature Story:

American Dreamer: Aslam Khan Wants To Reach $1 Billion By 2020 »

By Debbie Selinsky

When Aslam Khan was a youngster growing up in a poor mountain village in Pakistan, his world didn't include knowledge of luxury cars, homes, designer apparel, or the other trappings of money. His dreams at that point were a bit nebulous, but the bright, outgoing Khan knew there was something better in store for him and he began to educate himself and prepare to find it.
Khan immigrated to the United States in 1987 with $20 in his pocket and started as a dishwasher earning $3 an hour in a California Church's Chicken before working his way up through the business. By 1999, he'd bought 97 Church's restaurants and become CEO of his own company, Falcon Holdings. Today he is the largest franchisee in the Church's system and also operates franchises for Long John Silver's, A&W, Hardee's, and Piccadilly Cafeteria--300 in all...

Feature Story:

Keep Calm (If You Can): 5 Tips For Managing Emotions In A Sale »

By Dean Zuccarello

Many of the topics we address as a firm focus on the technical aspects of a transaction, such as market observations, quantitative measurements, and other deal points, but seldom do we discuss the emotional side. While the financial aspects of a deal are important, the intangible feelings associated with selling a business also have a significant impact on the process. Here we explore the emotional side of selling and provide five tips for achieving a successful outcome.
Selling a business involves many different challenges. Corporate sellers generally have the benefit of emotional detachment from the selling process and are typically focused more on price and execution. Entrepreneurial sellers have the added burden of dealing with a multitude of emotional challenges, such as letting go of a business they have created, built up, and managed for a long time...

Feature Story:

Sell Your Marketing Skills!: Candidates Buy Your Marketing Expertise »

By Jim Bender

Many of us have been in the franchise industry longer than... well, a long time. At Franchise System Builders we have had the fortunate experience to work with many companies and to become intimately involved with their franchise offering, franchise development processes, and resulting successful operations.
Currently, we are working with our clients to update their disclosures for 2015. Our review of several FDDs over the past weeks again brought to our attention a selling opportunity overlooked for years by franchise development teams. This opportunity runs through your website, collateral materials, phone conferences, discovery day meetings, and even the FDD. It is an opportunity to highlight a critical expertise of your brand and establish another point of differentiation...

Feature Story:

Are You Ready To Deliver?: Operations Is The New Customer Experience »

By Adam Pierno

People walk in, not yet customers... and what do they see? Your brand and marketing efforts got them to the door, but now that they're in, what do you want them to see first? What do you want them to feel?
Too often, the operations team is challenged to make decisions based on a variety of critical factors independent of this moment of truth--price, timing, availability across the system, etc. There are so many logistical elements it is difficult to keep the customer, especially the first-time customer, top of mind when choosing furniture, finishes, vendors, and suppliers--never mind the way products and packages are developed and trained into the system with store-level personnel. Here are three ways to make sure your operations are delivering the best experience for your customers, Millennials or otherwise...

Feature Story:

Bay Area Franchisee Takes On 16 Jamba Juice Units »

Multi-Unit Franchisee

A new 16-store refranchising deal in the Bay Area is nearing completion. Jamba Juice franchisee Dwayne Redmond, who operates Valley Juice, LLC, will take over locations in San Francisco, Berkeley, Oakland, and other key Bay Area markets.
"We are very excited to join the Jamba team with this acquisition of 16 new stores," said Dwayne Redmond, president of Valley Juice, LLC. "We look forward to long-term success with this fantastic brand."
The freshly-squeezed juice brand is nearing completion of its current refranchising efforts with 90 percent of stores now franchise owned and operated.
Jamba announced the refranchising initiative at the end of 2014, with a stated goal of refranchising "up to 114" stores during 2015. The company has significantly exceeded its initial goal as the new deal will bring the total stores refranchised in 2015 to 179, with plans to close an additional deal before by the end of the year...

Feature Story:

Savvy Franchisees Know That A Strong, Healthy Culture Pays Dividends »

Multi-Unit Franchisee

Rick Nussle had spent more than three decades in the commercial printing business and was looking for a change. Then he started handling the printing for SafeWay Driving.
He got to know Brad Coleman, a former NASCAR driver who, along with a group of former SafeWay students, bought the brand from the founders four years ago.
Nussle had been thinking about franchising, and Safeway offered him the chance to "do some good for the kids and make some money too," he says. Having done the brand's printing for the better part of two years, he'd performed an informal due diligence. And as soon as franchises were available, Nussle bought up all seven school zones (territories) in Katy, Texas.
His attitude? "Let's go do this thing, I believe in it so much," he says...

Feature Story:

Red Roof Inn's CMO Marina MacDonald Does It All! »

By Kerry Pipes

Marina MacDonald has worked in the hospitality industry for nearly three decades. Since November 2007, she's been with Red Roof Inn, the past year and a half as CMO. Red Roof, a player in the economy lodging sector, has more than 400 properties across the U.S., split among franchised, corporate-managed, and corporate-owned units.

As CMO, MacDonald is responsible for helping the brand achieve its annual goals and objectives by leading and directing its sales and marketing programs. In this role, she develops targeted marketing initiatives that build the brand, increase customer loyalty, and support an integrated sales program. She also interacts with the franchise community and the brand's stakeholders, maintains relationships with Red Roof's top customers, and plays an active role in field sales...

Feature Story:

Social Media Roundup: November 10, 2015 »

By Daniel Lieberman

Google to Advertisers: Respond Quickly to Ad Blocking
Speaking at the Wall Street Journal's WSJDLive 2015 conference in October, Google senior executive Sridhar Ramaswamy urged the advertising industry to respond quickly to the rapid adoption of ad blocking software, inspired by fed-up consumers. Since Apple announced its decision to allow ad blockers on its iOS devices, debate has raged around the issue. Some online publishers predict dire consequences for the availability of quality content as a result of the lost revenue they predict when ad blockers become widespread. But consumers have already made up their minds and advertisers will have to adapt: digital ads must use less of consumers' bandwidth, be less obtrusive in their browsers, and become more respectful of their privacy...

Feature Story:

Right Time, Right Place: William Bruce Does Well By Doing Good »

By Kerry Pipes

You can say this about William Bruce: he's not afraid of change or embracing new challenges. He's proven both since we profiled him in 2012 and named him our MVP Noble Cause Award winner in 2013.
In early 2014, he left Abundant Brands, where he had spent a half-dozen years, and as COO was overseeing more than 250 Subway locations and more than a dozen Costa Vida Mexican Grill restaurants, as well as three other brands.
"I felt like rather than just maintaining what the company had, that I'd like to really get back to a more active building and developing approach," he says. That's when serendipity struck. His name had been floated to some executives with a Dallas-based commercial real estate company, Encore Enterprises. The $2 billion company had a restaurant arm, Encore Restaurants, and approached Bruce about doing some consulting for them...

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Multi-Unit Franchisee Magazine

Issue IV, 2015

Multi-Unit Buyers Guide    

2015 Multi-Unit Buyers Guide

Special Edition

A Franchise Update Media Group Production
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