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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:

Good News Is Back! December 2015 »

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've brought back our "Good News" roundup of selected news items on 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

Former NFL Players To Open 14 Dunkin' Donuts in St...

Feature Story:

Challenge The Pros: Integrating Technologies For Overall Development Strategies »

Franchise Update

What are you doing to integrate technologies for both your overall development strategies and into how you create a profile of your best prospects?

Tim Courtney
Vice President, Franchise Development
CruiseOne
It's really incredible how much technology continues to evolve! There are so many tools available to assist franchisors with their development plans today, and at CruiseOne integrating technology is an essential part of our development strategy.
Invest in technological enhancements. Get creative with your development budget and ensure there is room for technological enhancements. We continually invest in our existing technology tools and new platforms. This allows us to continue creating innovative programs, giving us access to the latest and greatest franchise development tools...

Feature Story:

Brand Smitten: Dedicated Homemaker Becomes Dominator Franchisee »

By Debbie Selinsky

At the age of 39, Becky Finger, a full-time homemaker and mother of three from Cincinnati, went with a friend to visit a Once Upon A Child store in Columbus, a couple of hours away. She had seen franchise founder Lynn Blum on the cover of Entrepreneur magazine in 1992 and thought her concept was brilliant.
"Lynn has such a passion for resale and for recycling, which you didn't hear as much about 25 years ago," says Finger, now 64 and the owner of nine Once Upon A Child and seven Plato's Closet stores. "Recycling clothes is what she was doing, and that was an added bonus to me."
Finger, who had never run a business, was smitten as soon as she visited the Columbus store. "I liked it because it was clean, organized, and bright. It smelled fresh, everything was gently used, there was a great variety of brands, and it was a family operation, which appealed to me," she says...

Feature Story:

Integration And Collaboration: It's All About Teamwork At Jersey Mike's »

By Eddy Goldberg

At Jersey Mike's Subs, technology, marketing, operations, and strategy are so intertwined, "We joke back and forth about who's in charge of who, because there's so much overlap," says Rich Hope, the company's CMO. "We have a super open-door policy with marketing and IT, and try to get operations involved as well."
"Each department has needs," says CIO Scott Scherer. "In this day and age most of those needs involve technology."
The company's POS system, developed by Scherer and his team, is at the core of the inter-departmental collaboration that is a big part of Jersey Mike's culture--and its rapid growth, as the company approaches the 1,000-unit mark. Scherer describes the brand's award-winning POS system as an integrated software suite with the POS system as the hub (see graphic)...

Feature Story:

Jon-Anthony Lui Making A Difference In Lives »

By Debbie Selinsky

Jon-Anthony Lui came from an entrepreneurial family. His father had been a successful businessman and the younger Lui was destined to follow in his footsteps. He found his niche - and his passion - when he began working for Tutor Doctor, the brand that offers one-on-one tutoring to children in the home.
"Making a difference with young ones has always been a passion of mine. We all remember who made an impact on our lives at some point--a teacher, friend, relative, or mentor--and I liked the idea of capturing that magic and releasing it upon the masses in an organized, structured way. That's a beautiful thing," says Lui, who owns 10 Tutor Doctors, whose 350 tutors serve 850 families in 10 territories in Greater Toronto.
Lui, whose parents died when he was 21, opened his first franchise territory, Tutor Doctor Vaughan, in 2009...

Feature Story:

FRANdata Research ID's Threats Of NLRB Ruling »

Multi-Unit Franchisee

A recent ruling by the National Labor Relations Board (NLRB) jeopardizes the ability of franchise small business owners to hire, schedule, and set the salaries of their employees, says FRANdata in a newly issued report. At least 40,000 small businesses operating in more than 75,000 locations are at risk of failure, says the report.
The research also illustrates the manner in which the NLRB ruling threatens a large portion of the estimated 600,000 or more jobs to be created over the following two years. A dramatic loss in franchise small business owners' equity positions will ensue, with the significantly higher costs eroding operating margins and simultaneously risking profitability and, in many instances, survivability. Some of those expenses must inevitably be passed to consumers, making franchise small businesses less competitive...

Feature Story:

Using Analytics To Improve Marketing At Real Property Management »

By Robert Pifke

We asked Robert Pifke, chief marketing officer at Real Property Management, "What analytics are you using to improve your marketing?" Here's what he had to say.

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:

Social Media Roundup: December 8, 2015 »

By Daniel Lieberman

Instagram Advertising Is Worth Considering: A How-To Guide
With Instagram's 400 million monthly active users in September 2015, advertising on Instagram is well worth a hard look from brand marketers. Instagram, like every social media channel, is not a good fit for every brand. But with 20 percent of all Internet users active on it, it's certainly worth considering. Instagram is tightly integrated into parent Facebook's platform, so much of the management of Instagram ads is done using Facebook's Business Manager or the newly created Instagram Ads Creator. This article on Social Media Examiner by Kristi Hines explains step by step how to get started with Instagram ads, including how to evaluate your results.

Amazon Sues 1,000 Fake Reviewers in Washington State
In an attempt to defeat the growing problem of "astroturfing" (paying for positive online reviews), Amazon is suing 1,000 individuals in a state court in Washington...

Feature Story:

Up From Poverty »

By Debbie Selinsky

Eric Holm wants to eliminate hunger in the U.S.
Eric Holm may own 31 successful Golden Corral restaurants in Florida and Georgia and run a $150 million business, but his thoughts never stray far from the poverty in which he grew up. That's why he's been found every Thanksgiving for the past 22 years, alongside 1,200 volunteers, serving up to 25,000 free meals at the local Salvation Army.
He also is a member of the National Advisory Board of the Salvation Army, serving as chairman of the Finance and Development Committee and aiming this year--the Salvation Army's 150th anniversary year--to start raising the $220 million needed to do what he calls "changing the dynamics of intergenerational poverty."
Holm, who has been Franchisee of the Year for Golden Corral many times, well remembers when the Salvation Army fed his family on Thanksgiving and Christmas when he was growing up, and he continues to pay that kindness forward...

Feature Story:

Measuring Outcomes: Strengthening The Franchise Business Model »

By Darrell Johnson

The franchise community, along with media, politicians, regulators, and others, are beginning to understand the importance of measuring outcomes in franchising as a basis for understanding a brand's performance.
Outcome measures have been led by lenders who assumed that a franchise system's credit risk could, in large part, be predicted by measuring specific outcomes. Terms such as continuity rates, historical unit success rates, and recurring revenue self-sufficiency are becoming commonly used. This focus is having a profound impact on how franchise brands are being evaluated. That's a good thing for the long-term strengthening of the franchise business model. After all, if we can't measure outcomes, how do we improve them?
Measuring outcomes is an essential first step...

Feature Story:

What's It Worth?: Business Valuation - Tips For A Faster Sale »

By Rod Bristol

There are many misconceptions about how to go about valuing your business. In general, most business owners have a value in their mind that is usually several times more than the actual value a sophisticated, competent buyer ultimately pays. The process of getting from perceived value to sale price can be very, very challenging. Here is some helpful information to get you to a successful valuation and faster sale of your business.

Business valuation

Feature Story:

Guillermo Perales Named 2015 Entrepreneur Of The Year »

Multi-Unit Franchisee

Guillermo Perales is no stranger to franchising or winning awards. The eighth largest franchisee, and largest Hispanic franchisee, in the country has been recognized no less than four times by Latino Leaders Magazine's annual "101 List," which identifies the most influential Latinos in the U.S. He's received the Entrepreneur of the Year from Asociacion de Empresarios Mexicanos, and earned numerous other awards and accolades over the past two decades. Now he can add the IFA's 2015 Entrepreneur of the Year award to his list.
Perales, president and CEO of Sun Holdings, Inc., is a multi-unit franchisee who operates 280 Burger King Restaurants, 100 Popeye's, 68 Arby's restaurants, 36 Cici's Pizza, 24 Golden Corral restaurants, 15 Krispy Kreme, 89 T-Mobile locations, as well 10 restaurants in various airports, employing thousands and routinely giving back to his community...

Feature Story:

Preparing To Perform In 2016 »

By Sherry B. Jordan

A new calendar year is just around the corner. For the majority of small business owners, that means it is time to examine performance for the year that is past and adjust the vision and action plans for the year ahead.
Success does not happen by accident. If you want to reach your full potential you can't just "wing it." You have to have a clear and concise plan and be ready to take action on the first day of the new year. Anything less and you have missed an opportunity to be all you can be, have all you can have, and accomplish all that is possible for you and your business. Don't worry, it does not have to be complicated. Set aside a little time and simply:

Feature Story:

International Expansion: Minimizing The Risk For Smaller Franchise Systems »

By Michael Daigle and Samuel Wieczorek, Cheng Cohen

Smaller franchisors often approach international franchising opportunistically, rather than strategically. Either way, they should hardly ever dismiss outright the chance to expand internationally. International expansion can surely be risky, especially with smaller systems, but with proper preparation, many of the risks can be minimized, and - if all sets of eyes are wide open - the risks can yield great opportunity for both sides of the transaction. Apart from the many business considerations, there are key legal issues that affect both franchisor and franchisee, each of whom could very well thrive in the kind of entrepreneurial environment inherent in smaller systems.

Trademarks. Trademark ownership is established jurisdictionally...

Feature Story:

5 Tips To Attract Millennials To Your Franchise Sales Team »

By Eliot Burdett

Millennials live in a world that is increasingly virtual. They text, Snapchat, and tweet instead picking up the phone and calling one another, and they Skype instead of going out for coffee. That is part of the reason companies are having a hard time filling a growing number of open sales positions: sales is a profession that requires a great deal of personal, face-to-face connections.

A recent study from Harvard Business School's U.S. Competitiveness Project found that employers spend an average of 41 days trying to fill technical sales jobs, versus 33 days for jobs in other professions. The same study cited a cloud-based software company that would have had $2 million more in revenue if it had met its hiring goals for sales reps...

Feature Story:

Bright Light: People Love Doing Business With Their Friends »

By Debbie Selinsky

On May 20, 2013, when strong tornadoes tore through Moore, Okla., Brandon Boozer and his family were lucky. Their home wasn't damaged, though some of their closest neighbors lost everything.
Boozer, owner of six Batteries Plus Bulbs in the Oklahoma City area, kicked into high gear, driving truckloads of batteries and flashlights to people searching the ruins of their homes or who had lost power. His church, First Baptist Church of Moore, became headquarters for survivors to pick up water, fruit, clothing, and other necessities.
"While we were trying to figure things out at church, corporate and I discussed what was happening and they sent down a half truckload of work supplies, batteries, flashlights, and even kid flashlights," he says...

Feature Story:

Talent Management System Pays Off »

By Steve Adams

Your people deliver the brand experience

For many years, our organization struggled to create a solid, stable team. We were guilty of hiring to fill spots rather than thinking of our people as guardians of our brand. We stepped back and decided to create a system. We started from scratch and asked, "What does the ideal employee look like?" Then we found a tool that profiles the work style of the employee.
The tool is not a personality test per se; it is an assessment of work style. We applied it to all our employees and found a consistent profile of our best employees. We were able to determine that when we were outside that profile, in general we had employees who did not fit well for us. In a sense, we were asking people who were "off profile" to work in a way that was inconsistent with who they were...

Feature Story:

Journey To Success: For Tutor Doctor's CEO, Business Is Very Personal »

By Kerry Pipes

For Frank Milner, it's all about the journey. Milner, CEO of Tutor Doctor, sees his role in the Canadian franchise brand as a natural extension of his passion and determination to make organizations succeed and to provide customers with the best products and services possible. And while it's the journey that motivates him, he knows that he doesn't make it alone. "I like to make the journey to success enjoyable for everyone involved," he says.
In 2007, Milner formed an investment group and purchased Tutor Doctor from founder John Hooi. As education is valued across every culture and continent, Milner recognized the brand's tremendous growth potential. There also was a personal connection: his daughter struggled with what he called "math meltdowns," and he understood firsthand the chief benefit of Tutor Doctor's one-on-one model...

Feature Story:

Golden Corral Zee To Serve 20,000 Meals Thanksgiving Day »

Multi-Unit Franchisee

Eric Holm knows what it's like to get a Thanksgiving meal from the Salvation Army. He recalls the experience while growing up in a single-parent family and working to help support his mother as a busboy in a restaurant where she was a waitress. Now a successful multi-unit franchise operator with 32 Golden Corrals, Holm serves free meals to others on Thanksgiving Day. He's done it for 23 consecutive years as part of the annual "Helpings from the Heart" program. The event is expected to serve more than 20,000 meals to deserving residents in Central Florida on Thanksgiving Day.
"Golden Corral takes great pride in feeding the community every day of the year in its restaurants, and we see Thanksgiving as a way of helping Central Florida by providing for those in need," says Holm...

Feature Story:

Overseas Training Tips: International Staffing Can Be Very Different »

By William Edwards

One of the largest challenges in franchise development is finding and keeping the right people in the right places, from the top of the franchisor office to the front-line employees at each franchised location.
A franchise provides a systematic way to conduct business that, if followed properly, produces a reproducible margin. This is true no matter whether the franchise is located in the U.S. or another country. What does a good, profitable, proven franchise bring to a country? A proven business system, a brand, manuals with job descriptions, technology, marketing programs, sometimes a "magic sauce," and training--lots of training, for all levels of employees.
However, one common aspect of franchising, no matter what the country, is the people required to make the business operate...


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2016 Mega 99    

Multi-Unit Franchisee Magazine

Issue I, 2016

Multi-Unit Buyers Guide    

2015 Multi-Unit Buyers Guide

Special Edition

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