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Best Practices

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:

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:

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:

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:

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:

Building Success Through Culture »

Multi-Unit Franchisee

Culture is something that can't be measured by Google analytics. But it has inherent value and it makes a tangible difference. Creating, implementing, and maintaining a strong culture that reflects your values and beliefs can pay off in employee and customer satisfaction - not to mention the bottom line at your franchise locations. Creating a culture is just what Brent Collier has done.
He operates 14 restaurants from 6 different franchise brands along a 25-mile stretch in the tourist mecca of Pigeon Forge, Tenn., and faces a nice kind of problem: his restaurants compete for the same customers. But that's not really a problem, since the area draws more than 11 million tourists a year.
The way he figures it, most visit for an average of three days, which he translates into "nine meal opportunities...

Feature Story:

Selling An Experience »

By John DiJulius

What business are you really in?

Was I wrong when I said you should offer a price match guarantee?
This question was inspired by reading Jeff Shore's article on, "Don't Wage a Price War. Win Sales by Eliminating Your Competition." A paradigm shift is needed from selling a commodity someone can get anywhere to selling an experience customers can enjoy only with your company.
Everyone in your organization needs to have this mindset: We are the ultimate experience provider. We will not be oversold. In fact, if you can find it more expensive somewhere else, we will raise our prices and match it.

Feature Story:

Hwy 55 COO Shares His 7 Keys To Successful, Scalable Growth »

By Neal Dennis

Creating a great business and successful franchise is art and science, timing and luck. While luck and timing are largely out of your control, at Hwy 55 Burgers, Shakes & Fries we’ve learned a lot about the art and science of successful growth. Here are seven key elements and tools that have supported our expansion.

1) Build a great leadership team
A great leadership team is crucial to a franchise’s success. It is impossible for one or two people to do all the work themselves, so create leaders across the organization. Kenney Moore, the CEO and founder of Hwy 55, started the franchise with one location and $500 in his pocket, and went around re-opening closed restaurants. By the time he had opened four locations, he realized he was working himself to death and not making a lot of forward progress...

Feature Story:

Failed Units: Not Just A Franchisee Issue »

By Darrell Johnson

Throughout my career I have observed that a strong alignment of interests between two business parties usually leads to good outcomes for both. All franchisors with any marketing savvy will say they are strongly aligned with their franchisees. What is the evidence that a brand walks the talk?
There are many ways a franchisor can help its franchisees, starting with a full and high-quality support program, and including a disciplined prospect screening program, training that measures results, site selection and opening assistance based on proven criteria, and field operations and compliance that are effective.
Then there's transparency. Brands that have a meaningful Item 19, that have system dashboards that compare unit performance in real time, that support capital access through SBA eligibility and Bank Credit Reports (BCRs), and that seek system feedback through independent third parties are further examples...

Feature Story:

Franchisees Rally For Their Cause On Capitol Hill »

Multi-Unit Franchisee

Franchisees from across the country gathered this week in Washington D.C. to rally around the franchise business model and meet with members of Congress to emphasize the industry's importance. It's the 2015 International Franchise Association's (IFA) Franchise Action Network Annual Meeting, an event that helps get attendees excited and ready for meeting with elected officials on Capitol Hill.
"Not everyone understands the franchise business model and how legislative and regulatory decisions can greatly impact small franchised businesses," said Catherine Monson, CEO of Fastsings and a speaker during the event. "It is critical for all of us in the franchising industry to proactively develop relationships with our Congressional Representatives and Senators in order to preserve and protect the future of our businesses...

Feature Story:

6 Principles Of Customer Service »

Multi-Unit Franchisee

John Tschohl is a best-selling author, an internationally recognized service strategist, and president of Service Quality Institute - a leading customer service organization. He offers a concise and practical list of six essential customer service principles.
These "Personal Steps of Excellence" would go well in a frame on your office wall and those of your general managers.

1. Feel Good About Yourself. Employees do not go to work dreaming about how they can work exceptionally hard to make the company and the owner more money. Be realistic. Many employees have personal problems. The more we can uplift the self worth and self-image of employees, they become more productive and feel like there is a win-win relationship. In return they will deliver a higher level of excellence...

Feature Story:

Outstanding In The Field: Getting What You Need, When You Need It »

By Debbie Selinsky

What franchisees want from corporate field support is pretty straightforward. Basic expectations include great products, marketing and brand support, ongoing training, site selection, purchasing power for goods and services, and participation in product and program testing. While those are the table stakes, what makes systems really successful and builds strong relationships between franchisor and franchisees is communication, consistency, and listening,
"For our organization, what's most important is for our field consultants to communicate the same message," says Spencer Smith, CEO of the Smith Group in Cortez, Colo., which operates nearly 50 Aaron's stores and 3 Rent A Wheel units across 8 western states. "We have 46 Aaron's locations, so we have 5 different field consultants from Canada to Mexico...

Feature Story:

Captain D's Joins A Good Cause »

Captain D's is showing its philanthropic side by joining the Share Our Strength's Dine Out for No Kid Hungry campaign. The program connects kids in need with nutritious food and teaches their families how to eat healthy and affordable meals, while raising national awareness of the childhood hunger epidemic that affects one in five children.
Captain D's, the 512-unit restaurant chain in 26 states, said in a statement that its commitment to its customers goes beyond just the food they serve to families at an affordable price. "We fully support No Kid Hungry's mission to raise awareness about childhood hunger and look forward to uniting with other restaurants across the nation to make a difference in the communities we serve and the lives of families in need," said Phil Greifeld, Captain D's chief executive officer...

Feature Story:

Industry Groups Join To Oppose Overtime Regulations »

Multi-Unit Franchisee

A united front of 15 franchisee associations and the International Franchise Association (IFA) are working together to fight the government's proposed changes to overtime regulations. Together, the groups submitted comments last week declaring the Department of Labor's (DOL) proposed changes to overtime regulations are "fundamentally flawed and bad for employers and employees," according to a statement issued. The IFA also accused the DOL of "failing to extend the comment period on the radical changes that will severely hamper job growth in the small business sector."
"The proposed change to the overtime rule is another action by the Obama Administration that dramatically alters how small businesses operate," said IFA President & CEO Steve Caldeira, CFE...

Feature Story:

Newk's Eatery Focuses On Cancer Awareness »

Multi-Unit Franchisee

With one in 70 women facing ovarian cancer, Newk's Eatery is shining a spotlight on this relatively silent killer by turning up the volume on its growing "Newk's Cares" initiative, which includes permanent changes within the brand to further support the cause. Following a tremendous community response last year, the ongoing ovarian cancer awareness campaign will be re-surging across Newk's more than 80 restaurants throughout the months of August and September to spark awareness and raise needed support for cure research, along with a second-annual Ovarian Cycle Jackson fundraising event.
In honor of Ovarian Cancer Awareness Month in September, Newk's is going teal--the color adopted by the global ovarian cancer awareness movement-- switching out Newk's signature black cups for teal ones, as well as permanently replacing the brand's traditional red straws with teal straws...

Feature Story:

Jamba Refranchising Efforts Moving Along »

Multi-Unit Franchisee

Jamba, Inc., the parent company of Jamba Juice, is continuing to make good on its rebranding initiative launched late last year. Just last month the company announced the completion of a refranchising agreement for 73 stores in the San Jose/East Bay and Sacramento markets. A company release said the brand expects to sell the remaining 27 company locations in the San Diego market by the end of the year.
Last December, Jamba announced the refranchising initiative with a stated goal of refranchising "up to 114" stores during 2015. The company has exceeded its initial plans with closed deals so far this year already representing 150 stores. The company expects that deals for 74 additional stores will be refranchised for three California markets by the end of 2015 and the Chicago/Midwest market by the first quarter of 2016...

Feature Story:

Fund-Amental Change?: Is Aziz Hashim's New Fund For Franchisees A Game-Changer? »

By Eddy Goldberg

Tired of paying royalties? How would you like to get in on collecting them? That's one of the reasons--among many--behind an innovative fund created to allow multi-unit franchisees to own or invest in franchise brands.
"If you're in franchising as a multi-unit franchisee and have built your enterprise by paying royalties, it's a very natural hedge to have an investment in an entity that's in the business of collecting royalties," says Aziz Hashim, founder and general partner of the new fund, called NRD Partners.
Hashim, who has made a career operating restaurant franchises, says he has been preparing for this new role all his franchising life. "I've entered and exited 14 brands in my career. So in a way I've been practicing as a little mini-private equity or fund anyway...

Feature Story:

Arizona Says No To Wage Discrimination »

Multi-Unit Franchisee

The state of Arizona stands with the IFA and has filed an amicus brief with the Ninth Circuit Court of Appeals in support of IFA's effort to halt discrimination against franchisees by the city of Seattle. Last year, Seattle approved an increase in the minimum wage that classifies franchisees as large corporations rather than the small, locally owned businesses that they are. The IFA says this artificial distinction that will force franchise businesses to boost their workers' wages faster than other small businesses.
In his brief, Arizona Solicitor General John R. Lopez, IV says that the Seattle ordinance is discriminatory and directly burdens 13 franchisors based in Arizona and their 54 franchise units operating in Seattle. The brief also asserts that the ordinance violates the U...

Feature Story:

IFA Says New Overtime Regulation "Unnecessarily Meddling" »

Multi-Unit Franchisee

The International Franchise Association (IFA) is condemning a proposed overtime regulation rule from the Department of Labor that it says would dramatically increase the threshold for overtime pay and ultimately force thousands of employers to shift the pay status of their workers from salaried to hourly.

"This change is likely to have the opposite of its intended effect and will clearly harm more workers than it helps," said IFA Executive Vice President of Government Relations & Public Policy Robert Cresanti. "Millions of salaried workers will now become hourly and lose out on key benefits such as workplace flexibility and long term advancement opportunities. This is just the latest example of the Obama Administration unnecessarily meddling in the everyday management of small businesses...

Feature Story:

Make It So!: Customer Growth Lessons From Amazon »

By Jack Mackey

Amazon founder Jeff Bezos is a Star Trek junkie. He almost named his company, based on the adventures of the USS Enterprise, when Captain Jean-Luc Picard would confirm his commands with the words, "Make it so!"
"Make it so!" may also be the ultimate personal motto for multi-unit operators trying to grow their businesses. But the practical question is, How exactly do you increase sales and business value continuously over many years?
What is the secret to Amazon's growth? Bezos answers like this: "We know customers like low prices. We know customers like big selection. We know that customers like fast delivery. And we know those things are going to be true 10 years from now. They are going to be true 20 years from now...

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

Top Opportunities »

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