RSS Subscribe
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:

True Business Success Requires Liquidity »

By Champ Rawls

Everyone feels the liquidity pinch some time or another. Growth, acquisitions, internal investments, taxes, and bonuses take capital and drain liquidity. Business liquidity is the measure of the extent to which the organization has cash or assets to meet the short-term obligations. When you are looking to grow or need cash for improvements, short-term obligations are not that important.
However, as a multi-unit franchisee business owner, you know the internal struggle associated with wanting to grow or improve, while being cognizant of cash flow and capital requirements on a day-to-day basis. Success is defined differently depending on the reasons you started your franchisee business. For some it is about the "lifestyle" and wanting the flexibility to do what you want when you want, and for others it is the monetary and material gains that are more important...

Feature Story:

Words Of Wisdom: Recruiting & Hiring »

Multi-Unit Franchisee

Jeff Davis
Brands: 333 Arby's, 6 Taco Bueno in Oklahoma, Arkansas, Kansas, Missouri, Illinois, Colorado, Idaho, and Wyoming

How do you hire, fire, train, and retain? Recruiting and hiring the best talent we can find has been our number-one goal. We're always on the lookout for outstanding candidates. Given our growth, it's important for us to promote from within first and foremost. Our district managers and directors are the key to hiring and recruiting talent in the restaurants. We have processes in place to select the best candidate for the job, but at the end of the day it comes down to the candidates who can truly meet and support our company values and standards. Progressive discipline has always been our preferred method of trying to afford all employees the opportunity to improve...

Feature Story:

Improved Customer Loyalty Starts With Analytics »

By Charles Hogan

Customer loyalty is a competitive game - and it goes beyond traditional programs. Consumers belong to more loyalty programs now than ever before, but the number of programs they actively use is in decline. That's because, according to research cited by the New York Times, plain-vanilla discount and freebie programs are no longer enough to keep customers interested.
Merchants need to think about getting all customers to increase frequency of purchasing and to spend more per visit. To create successful programs and offers that target both new customer conversion and long-term retention of loyalty members, franchises need to make smarter use of their analytics to develop offers that will engage their target markets.

Create customer experiences that build loyalty

Simply having products in stock, competing on price, and offering industry-standard service isn't enough anymore...

Feature Story:

Social Media Roundup: July 26, 2016 »

By Daniel Lieberman

Twitter Raises the Limit on Videos to 140 Seconds
“Video is becoming increasingly central to the real-time conversations happening on Twitter – video Tweets on Twitter have increased by over 50% since the beginning of 2016,” writes Jeremy Rishel, Twitter’s head of product development for creators. (Marketers take note!) As a result, the #3 social media platform has increased allowable video length, which can now be 140 seconds, up significantly from 30 seconds. In addition, Twitter’s Vine video-loop platform is experimenting with a “watch more” button on its 6-second shots that will allow for posting 140-second videos there as well. Twitter also announced improvements to how it “surfaces” related videos to make it more attractive to video tweeters...

Feature Story:

The New Competition: Customer Experience Trumps Customer Service »

By Adam Pierno

As a franchise organization you've recognized by now that your competition is more diverse and complex than it has been in the past. Once you were in a single business, selling a product like sub sandwiches or sporting goods to consumers. You were competing against other businesses selling similar sandwiches or sporting goods.
Consumers today have embraced the multitude of options popping up all around them. Many have learned to comparison shop Amazon or other e-tailers while standing in the aisle of the sporting goods store to see if they can find it cheaper, or maybe somehow better. And, in addition to the thousands of new digital storefronts available for their mobile devices, new types of physical competition are appearing as well...

Feature Story:

Challenge The Pros: Using Social Media To Attract Prospects »

Franchise Update

How do you use social media to attract prospects and validate candidates?

Alex Samios
Director of Franchising
Social media is a regular function of our franchise development team. We use it to generate leads, nurture existing prospects, and validate that the franchise candidate is right for our brand.
Today's prospective franchisees want a self-directed approach; they don't want to feel as if a franchisor is trying to sell them on the concept. With this in mind, you need to adopt a softer, more subtle social media strategy for franchise sales--especially when posting franchise development-focused messaging on your brand's consumer social media accounts.
At Dogtopia, we keep our corporate Facebook, Twitter, and Instagram pages separate from those of our franchise owners, who all have their own individual accounts that are updated regularly...

Feature Story:

Leading By Example: How To Avoid Common Mistakes Even Smart Leaders Make »

By Dan Schneider

Admit it, you sometimes find yourself in a situation where you say to yourself, "Doh! I cannot believe I just did that!" Often it's something simple or small, but the fact that we showed some chink in our leadership armor shows we are not perfect, and we hate it. What we don't realize is that when we work so hard to be perfect and drive to exceed even our own expectations, we are constantly making some very common mistakes.

As leaders, we strive for everyone to see us as masters in our roles, the Obi-Wan Kenobi's of our universe. But the reality is that we actually get caught up in complacency and habitual routines. We also work in environments where it is rare for someone, especially a subordinate, to speak up and tell you that you are doing something that makes you look like a fool...

Feature Story:

Words Of Wisdom: Finding And Keeping Talent »

Multi-Unit Franchisee

Dan Ponder
Brands: 36 Hardee's in Alabama, Florida, and Georgia

How do you hire and fire, train and retain? We focus on hiring people with the right attitude. We can train anyone the technical skills, but we can't teach them to smile. I often ask when an employee is terminated if we did all that we could do as a company to help them succeed. We are putting more and more resources into training while at the same time developing tools that identify and reward good behavior. Given the high cost of replacing employees in today's market, we try to provide the best benefits we can at an affordable price. This will be the eighth year in a row that we have provided a 100 percent match for all employees that choose to participate in our 401(k) plan...

Feature Story:

Three Converging Trends To Shape The Future Of Franchising »

By Darrell Johnson

Since the turn of the century, I would highlight three fundamental trends within the franchise business model. The first is adaptability,> which has a wonderful positive attribute but a dark side as well. The second is unit concentration, which is another way of describing the rise of the multi-unit operator. The third is the pendulum swing of franchise agreements toward franchisor interests. These three trends are having a converging impact on the 2016 version of the business model and suggest some things about further changes to come.

1) Adaptability. There are about 3,200 active franchise brands across more than 200 industry sectors. More than 300 brands dip their toes in the franchising water for the first time each year (some have good success, some stay a few years and decide it's not for them, and some never get off the ground)...

Feature Story:

Good News! - July 2016 »

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 emerging. 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
Dunkin’ Donuts Announces Kiosks Coming to BJ’s Wholesale Clubs
Marco’s Pizza Reports First Half Growth, Opens 700th, Eyes 1,000 in 2017
Lime Fresh Mexican Grill Franchisees Eye 6 to 10 New Units in South Florida
Billy Sims Barbecue Opens 3rd of 5+ Kansas Units Planned for 2016
Newk’s Eatery Signs 6-Unit Deal for Atlanta with C2 Investment Partners
Dickey’s Barbecue Pit To Bring 3 New Stores to Amarillo Area
Big O Tires Opens 21st Nevada Store, 12th Unit for Franchisee

Yum! Brands Q2 Profit Buoyed by China; Spinoff Set for October 31
800 Degrees Neapolitan Pizzeria Gets PE Infusion, Hires New CEO
Fired Pie Lands Funding from Former Patina Restaurant, Real Mex Exec
Juice It Up!’s Q2 Same Store Sales Rise 10%; 100 Units Eyed by Year-End

Big Plans, Big Dreams
NRD Capital Revamps Frisch’s Big Boy Following $175 Million Acquisition
Salata Re-Starts Franchising Program; Seeks Multi-Unit Operators
Ziebart International Announces Chicago Expansion Plans

Hilton Worldwide Teams with Icelandair Hotels, Opens Canopy in Reykjavik
Papa John’s Opens First of 100 Stores Planned for the Netherlands

New And Emerging Brands
Nature’s Table Opens 32nd Florida Unit, Franchisee’s 7th
uBreakiFix Opens 27 Stores in Q2, Passes 200 Total
Eggs Up Grill Opens in North Carolina, Bringing Total to 16

People &Amp; Awards
Chili’s Grill & Bar Names Kelli Valade President
Quiznos Promotes Global CMO Susan Lintonsmith to President, CEO
Tilted Kilt Names Eddie Goitia CEO, Logan Reves COO
GPS Hospitality Named Georgia Fast 40 Company for 2nd Year in a Row
Ballard Brands Names Peter Boylan New President, David Mesa CDO

Feature Story:

Growing Gross Margin: Small Steps Taken Over Time Boost Profits »

By Rod Bristol

Do you know the seven drivers of gross margin? More important, do you know how to actually manage them in your business? Let’s look at each one in turn—and they are remarkably similar in virtually any kind of operation.

Feature Story:

PRofessional Help: Choosing The Best PR Firm For Your Brand »

By Kerry Pipes

Public relations is witnessing something of a tactical evolution these days, but at its core it's still all about communication and relationships. No two elements are more fundamental--or effective--in designing and executing a franchise PR strategy. Whether looking to enhance consumer marketing efforts or to inject new energy into a lead generation program, the right PR tools, well-crafted content, and savvy PR people can help brands succeed in getting their messages across effectively.
Today's public relations is strategic storytelling, says All Points Public Relations President Jamie Izaks. "It's about developing a comprehensive strategy that integrates or blends several tactics used to tell the best stories possible about your brand," he says...

Feature Story:

Managing Uncertainty: Trends To Watch In 2016 »

By Carol Schleif

After an extended period of complacency, markets have whipsawed in 2016. Will this level of heightened volatility continue? Does it signal an impending recession? We think the answers may well be "probably" and "we think not." Let's look at what could go right, what to watch, and what might be different in 2016.

What could go right?

Feature Story:

Using An SMS Loyalty Program »

Multi-Unit Franchisee

Customer loyalty programs are a smart way to cater to your most important customers - the ones who consistently spend their money at your business. Such programs, when used effectively, can also take a customer who didn't used to be loyal to your brand and make it so they shop exclusively with you in order to reap the benefits of savings, promotions, and discounts. SMS (short message service) is the perfect tool for promoting loyalty programs for your brand.
With the world "going mobile" and desktop activities migrating increasingly towards mobile phones, all aspects of marketing have had to adapt. According to research that says 91% of smartphone owners have their device within arm's reach 24/7, you will need to reach your customers on their mobiles...

Feature Story:

Words Of Wisdom: Community Involvement »

Multi-Unit Franchisee

Adam Saxton
Brands: 67 McAlister's Deli locations
Explain the role of community involvement for you and your company: I believe the success or failure of a business depends on the community's support of that business and you can't ask for support if you aren't also willing to give it. I also believe that for anyone interested in community involvement or philanthropy that the first dollar you give should always be local, start at home before looking elsewhere. There are great needs in every town. Two recent examples: Our McAlister Deli's locations sold pink sugar cookies last October, as part of Cookies for a Cause, with a portion of the proceeds split among 13 local Susan G. Komen affiliates. In 31 days, 63 stores sold 36,105 treats, resulting in a donation of $18,052...

Feature Story:

6 Digital Marketing Tactics Franchisors Need For Franchisee Success (Part 2) »

By Paul Elliott

In April, we covered the first three of six digital marketing priorities for franchisors. Now, in part 2, we pick up at tactical tip #4, highlighting how franchisors can increase consumer awareness and drive local sales through smarter digital franchisee marketing.

4) Paid search: be creative to overcome competition

Even with Google's recent change, which caused increased competition in paid search by eliminating a large portion of the paid search real estate, bidding on buyer-ready keywords remains one of the quickest and most effective ways to engage consumers ready to purchase. However, we continue to see daily evidence that the friction between the wants and needs of franchisor marketing managers and the local franchisees is alive and well...

Feature Story:

Social Media Roundup: July 12, 2016 »

By Daniel Lieberman

Facebook Live Gets Results for Small Business Marketers
Facebook Live, Facebook's new video platform, lets users share live video with your followers and friends on their Pages and Profiles. This article on Social Media Examiner by Mari Smith, co-author of Facebook Marketing: An Hour a Day, shows three examples of Facebook Live that produced great results for the marketers who made them. Planning, preparation, and attention to building buzz were key factors in the success of the Results Fitness nine-minute Live flash mob. They built on their success with a three-minute highlight reel. Read about how Results and two other innovative businesses have been successful with Facebook Live.

Google Places for Local Marketers
This blog on SociablWeb lists 5 things you're missing out on if you don't use Google Places...

Feature Story:

Texas-Sized: Michael Knobelock Is Well On His Way To 100 Units »

By Kerry Pipes

They say everything's bigger in Texas. It's definitely bigger for Texan Michael Knobelock, whose Houston-based MSK Enterprises operates nearly 70 franchise locations spread across 4 different brands and 7 states. Since we profiled him 5 years ago, Knobelock has added Captain D's and Sears Appliance & Hardware stores to his Church's Chicken and Little Caesars stores. He also has his own restaurant, Dekker's Mesquite Grill, located in an affluent suburb of his hometown, along with plans to start building his own Italian restaurant this year.
He's come a long way since the 1980s, when he borrowed $10,000 from his parents to re-open a shuttered convenience store in Houston. He succeeded in that early business venture, which he eventually sold, and in 1992 used the proceeds to open his first Church's in Houston--becoming the first Church's franchisee in the city...

Feature Story:

The Emotional Toll Of The DOL Ruling »

By Dan Schneider

Well, there they go again. Those folks at the Department of Labor (DOL) just can't leave well enough alone. This time they've changed the overtime rules creating administrative/legal headaches for HR departments, and essentially reclassified a lot of people from salaried back to hourly positions. As a result, many franchisee owners are convinced that the impact will be complete demotivation of those who have been 'demoted' by the DOL. Long-term, it probably won't have a negative impact on your franchise business because your high-value employees will be promoted back into an exempt higher-salary position.
Reason says that this change isn't the end of the world, but individual motivation is based more on emotion than on reason. So if you have some disgruntled employees come to you concerned about their take home pay, their ability to grow in the organization, and feeling demotivated because the bureaucrats in Washington, D...

Feature Story:

Words Of Wisdom: Team Leadership Qualities »

Todd Mulvahill
Brands:  6 Papa Murphy's Pizza locations
What are the important leadership qualities to you and to your team? How do others see you? What kind of party do you want? If you were to be transferred to one of my other restaurants tomorrow, what kind of party would your crew throw for you? Would it be a party of sadness, because they don't want you to leave them? Or would it be a party of joy because they can't stand working for you and they are elated that you are leaving? If any of our managers possess leadership qualities that would land them at the second party, they most likely should go find their happiness somewhere else.

Learn More

2016 MVPs: Celebrating This Year's Outstanding Operators    

Multi-Unit Franchisee Magazine

Issue III, 2016

Multi-Unit Buyers Guide    

2016 Multi-Unit Buyers Guide

Special Edition

A Franchise Update Media Group Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2016. All Rights Reserved. Site Hosting Provided By: wishVPS on FUMG3

In Loving Memory Of Timothy Gardner (1987-2014)