Franchise Update Media
Franchise Update Media Digital
Publications
Conferences Education Videos Subscribe
Advertise

RSS Subscribe
Finance

Access to capital is the lifeblood of franchise growth. Restricted lending policies of the past few years continue to be a challenge for franchisees, who need access to capital, whether to survive or expand. Lenders today are searching for solid franchisee organizations to do business with, but what exactly are they looking for? Learn what bankers, franchise lenders, private equity firms, and other capital sources want to see in a borrower - and make sure you are managing your organization in ways that make you attractive to lenders.

Learn more about the franchise finance and capital marketplace, and what factors are affecting your chances to borrow the capital you need to grow.

Feature Story:

Integrity And Rewards: Former Partner Shares Life Lessons From The Rise And Fall Of Arthur Andersen »

Multi-Unit Franchisee

Larry Katzen made partner at Arthur Andersen by the time he was 30. The "Big 8" accounting firm had a long reputation for innovation and integrity. The firm continued to soar, with an emphasis on continuing education for employees and meticulous attention to detail, it was one of the most trusted accounting firms in the industry.
Katzen enjoyed a fast-paced rise through the ranks, all the while learning, traveling, and parenting quadruplets with his wife and college sweetheart, Susan. It all came crashing down in 2002 when the company was indicted based on false accusations having to do with the scandals at Enron. With the firm's survival in question, Katzen moved quickly to encourage employees to carefully complete all remaining assignments...

Feature Story:

Can Money Buy Happiness?: 3 Tips For Changing Your Attitude Towards Wealth  »

By Doug Vermeeren

Although we live in the richest and most advanced society the world has ever known, many of us say we need more money in order to be happy, notes best-selling author Doug Vermeeren.
"Even some of those in the top percentile of earners often feel like they don't have enough money," says Vermeeren, an international speaker who consults with celebrities, business executives, and professional athletes.
"The math is simple: More money does not equal more happiness. It's our attitude toward money, not the amount, that influences our happiness the most."
Happiness researchers Elizabeth Dunn and Michael Norton, professors at the Harvard Business School, recently published research indicating that it's not money that makes people happy, nor the things people buy with it...

Feature Story:

Get It In Writing: Do You Have A Written Income Plan For Retirement? »

Multi-Unit Franchisee

"Age 85 is a bad time to go broke," says retirement planner Jeff Gorton. Personal savings, various investments and, yes, Social Security may prove to be short of what you'd expected.
"Budgeting how you spend money before retirement can often be a misleading measurement of how you'll actually spend it during retirement," says Gorton, a veteran Certified Public Accountant and Certified Financial Planner, and head of Gorton Financial Group (www.gortonfinancialgroup.com).
"Spending 40 hours a week at work not only earns you a paycheck, it also keeps you from spending money on more vacations, matinee screenings at the movie theater, extra trips to the mall, or shopping online. You need to be exceedingly realistic in your planning, and the five years before retirement are actually the most crucial in solidifying post-employment stability...

Feature Story:

Don't Loosen That Grip: Resist The Urge To Relax Financial Controls »

By John Tschohl

The economy is improving, bringing with it a sense of optimism. That optimism, however, can be dangerous. All too often, it brings a tendency to breathe a sigh of relief and loosen your grip on the financial reins.
While it might be human nature to relax when things get better, it is not good business practice. The measures you put into place to control costs and reduce waste during the past few years helped you to survive; it would be foolish to discontinue them now.
While you certainly deserve to celebrate your survival of the recent economic downturn, if you want to continue that celebration into the future, it's imperative that you maintain control of your finances. Competition at every level--from price to product to service--continues to be stiff, bringing with it the necessity to keep a watchful eye on spending...

Feature Story:

Are You Building For Success Or Failure? »

By Steve Lefever

90 percent of SMBs fail from poor financial management

You say you want to own a business and make your own decisions? You say that owning a business is one of the few remaining ways to build net worth today? You say that building a business is one of the greatest personal challenges you can face? That success makes the clearest possible statement about your perseverance, ingenuity, and skill?
Well, ladies and gentlemen, you're right. And you're right no matter how you became an independent business owner. You probably didn't volunteer for the job. Perhaps you married into it, or inherited it, or got fired from another job and just fell into it. No matter. There it was, and you did it.
It wasn't easy, either. I know...

Feature Story:

Hidden Fees In Your 401(k)? »

Multi-Unit Franchisee

Financial advisor explains 3 fees?to look for under new rule

You wouldn't authorize a company to dive into your checking account at will to withdraw money for undisclosed "services rendered"? That would be crazy.
"But that's what many people are unwittingly doing with the retirement plans," says financial advisor Philip Rousseaux, a member of the Million Dollar Round Table association's Top of the Table forum for the world's most successful financial services professionals.
"While a new law now requires disclosure of previously hidden fees applied to 401(k) plans, it's up to you, or your financial advisor, to find and review that information and determine whether the fees are reasonable," says Rousseaux, founder and president of Everest Wealth Management, Inc...

Feature Story:

There's A New Environment Dawning: Time To Be Nimble As Markets Continue To Change »

By Carol Schleif

There's an old adage on Wall Street: When someone says, "It's different this time," run as far and as fast as you can.
After surveying today's overarching trends, however, an important tipping point seems close at hand; one that tees up an investing environment vastly different than the one we've known for decades. Survival and success will require different thought processes, strategies, and investment tactics than those we've relied on before.
When I started my investment career in the 1980s, the marginal income tax rates for top earners had fallen from 70 percent to 50 percent, and a mere 5 percent of the population owned equities. Bond yields stood in the upper teens/low 20s, and scores of wizened industry veterans declared they'd wait to invest until dividend yields exceeded bond yields...

Feature Story:

A Clean Transfer: Key Considerations For Succession Planning »

By Gerald Marks

A franchise is not an ordinary business asset. You don't really "own" a franchise outright as you do a traditional business. What you own is a right or license from the franchisor to operate the business under the franchisor's name for a period of time (the franchise term). More important, when retirement, disability, or death requires a sale of the franchise, you cannot change ownership unless you meet the franchisor's requirements.
This difference becomes even more complicated when it involves multi-unit franchisees, who may be area developers or subfranchisors and who may have more than one unit in two or more unaffiliated brands or sectors (think donut or burger franchisees who are also hotel and convenience store franchisees). Not only are there different franchise terms for each of the franchises, there may be different franchisor requirements in the franchise and area development agreements controlling transfer upon retirement, disability, or death of the managing member or members of the multi-unit franchisee...

Feature Story:

Know Thy Bookkeeper: 14 Red Flags For Preventing Fraud »

By Steve LeFever

I've often heard this comment by franchisees: "I keep my own books to save money, but I really hate the process!" Just as often, I've made the following response: "Business owners/managers should do what they do best; focus on making it and selling it."
If you really do hate bookkeeping (and I know I do), there's a predictable outcome: at 10 p.m. on the last day of the month, you'll still have 3 or 4 items you're not sure where to put--so you'll just "shove them in somewhere."
After a few months, your books and records will be riddled with inaccuracies. Since all of my previous articles have focused on using the powerful tools of Profit Mastery to make better, more strategic financial decisions, the lack of accurate financial information will render these financial tools useless because the data you're using is not accurate...

Feature Story:

Are You Financially Literate? »

By Steve Lefever

Review financial statements like a real pro--even if you're not

In our line of work, we see a lot of ugly financial statements. Not ugly in the sense that the business is performing poorly (well, we see some of those too!), but ugly in the sense that they contain glaring bookkeeping errors. We suspect there are several reasons for this. One is the proliferation of software that makes "doing the books yourself" attainable for almost anyone with basic computer skills. Answer a few interactive questions, choose from the drop-down list of industry choices, and you're off and running with your very own profit-and-loss statement. Press a few more buttons, and voilà, instant balance sheet!
The other reason is that many business owners consult accounting professionals only at year-end to figure out how to reduce taxes...

Feature Story:

Scaling The "Wall Of Worry": Taking Stock Of 2013 To Strengthen Your Portfolio »

By Carol Schleif

October marked an infamous anniversary on Wall Street. Twenty-five years ago, the unthinkable happened when the Dow Jones Industrial Average dropped a record 106 points to end the trading week at just under 2500. The following Monday, now known as "Black Monday," the index shed an additional 508 points in one session. While the day's decline was widely blamed on a newfangled process called "portfolio insurance," it didn't help investor psyches that U.S warships started shelling an Iranian oil platform in the Persian Gulf that very same day.
At the time, given the multitude of concerning events, many high-profile economists, strategists, and media outlets immediately began predicting a global recession and bear market. Interestingly, neither happened...

Feature Story:

2013: Year Of "Crisitunity": Opportunities Abound Amidst Ongoing Change »

By Carol Schleif

In an episode of "The Simpsons," Lisa tells her dad that the Chinese use the same word for both "crisis" and "opportunity"--to which Homer replies, "Yes! Crisitunity!" While many Chinese language experts dispute those prime-time linguistics, I think Homer is onto something.
From a macro standpoint, we're in the midst of massive change everywhere. Laws are being rewritten, regimes are being upended, new technologies are displacing the old, and societal norms reworked at a dizzying pace--much like the systemic shocks induced by such events as the invention of the printing press around 1440, or the driving of the Golden Spike in 1869 that connected West to East through the Transcontinental Railroad.
But in those changes as well as those we face today, opportunities abound...

Feature Story:

Capital Access: Charlie And Judy Divita Have A Second Career In Franchising »

Multi-Unit Franchisee

Charlie and Judy Divita operate six Firehouse Subs in the greater Columbia, S.C., area, including one nestled in the heart of the USC campus.
The couple is now knee-deep into their second career and is making the most of it. Charlie, 69, is a former university full professor and consultant, and Judy, 65, boasts a corporate background of organizational development, training, and human relations. Instead of relaxing into the world of retirement, the couple launched Divita Concepts Group in 2003, eager to put their skills to work as business owners in a way that would offer them more control of their future.
With projected 2012 revenue of $4.5 million, Judy and Charlie always look for novel ways to build business. “The franchise gives you the basic things to put you in business pretty quickly,” says Charlie...

Feature Story:

Whose Gift Card Is It, Anyway?: Navigating The Tricky Waters Of Escheat Law For Franchises »

By Ronald Tramazzo

Gift cards! Often viewed as giveaways or as marketing ploys. You may want to think twice before you throw them into your offerings mix -- there are potential obstacles you may not have considered. Franchisors sometimes offer gift cards for their franchisees to sell, usually through programs funded by the franchise system's ad fund. The big question to consider is, once the franchise system collects the funds, what happens with the unused portion (the "breakage") of these gift cards? Are these funds kept by the franchisor? Are they turned over to the franchisee?
Many states have "escheat" statutes (the process of re-assigning legal title of unclaimed or abandoned assets to a state authority) that require these funds be turned over to the state after the passage of a prescribed period of time...

Feature Story:

Capital Access: Ed Doherty Is The 12th Largest Franchisee In The U.S. »

Multi-Unit Franchisee

Ed Doherty has a passion for his business and growth.
His roots in the restaurant business trace back to his youth when he worked after school and college to help his mother run a deli. "She worked so hard to provide for me and to put me through college. I got my work ethic and my determination from her," he says.
After college, he went to work for Marriott Corp. where he eventually became vice president and general manager of the Big Boy division. He took a big step himself in 1985, leaving that job to become a Roy Rogers franchisee, buying 19 Connecticut restaurants for $1 million. He turned the losing restaurants around in five years and grew the company to 28 stores.
Doherty and other Roy Rogers franchisees had a rude awakening in 1990 when Hardee's bought the concept from Marriott, he says...

Feature Story:

Estate Planning--Do It Now! »

By Steve LeFever

Putting Your Affairs In Order Starts Today

Ask yourself this question: If I died today, have I taken the appropriate steps to provide for the smooth and effective transition of my business, and to protect my family? If you talk to bank officers in the trust departments of major commercial banks, they will tell you horror stories of business owners who died without an effective--or current--estate plan and left the business in shambles and the family with loose ends.
No matter what your perspective, estate planning is a vital business function that involves a series of steps. Furthermore, these steps need to be repeated periodically depending on changes in the laws, your family situation, and the evolution of your business...

Feature Story:

Capital Access: Cathy Amato Has A 20-Year History That Lenders Love »

Multi-Unit Franchisee

Cathy Amato expects to do $30 million in combined sales for 2012. That's a far cry from the less than $250,000 her company did when she first started two decades ago. Amato, and partners Martha Jordan and Rick Riley, collectively owns and operates 55 Subway restaurants in San Antonio and Austin, along with 1 Mooyah Burgers & Fries, and 3 Ruby Tuesday locations.
She has come a long way since her first job at 14 as a busboy and dishwasher (by hand) at the Highway Café in La Vernia, Texas. "I never had any aspiration or skill set that would necessarily help me be successful in the restaurant industry," she says. "I started at the ground floor and through hard work and applying myself I've been able to move up the ranks. But also, I have been able to go out on my own and build a substantial company...

Feature Story:

We're Not Through Yet: Keep A Cool Head As Indicators Rise »

By Carol M. Schleif

In my previous column I made several suggestions for successfully navigating our times to a brighter future. The markets had been historically, mind-numbingly volatile all year, taking the gyrations to record proportions. Frustration with the status quo among investors was high and concern over volatile stock prices, developed country politics, and consumer and government debt levels dominated the media. What a difference a couple of months can make! When the numbers were tallied in early April, we had just finished the best first quarter since 1998.
We need to stay calm because we're not through yet.
True, the markets got off to a roaring start this year. Investors suddenly swung from nervous and uber-conservative to seeking return--and risk--in far-flung places and asset classes...

Feature Story:

Tax Credit Screening: Turning The Hiring Process Into A Profit Center »

By Jason Hamilton

One of the largest uphill battles a franchise owner faces is combating the costs associated with hiring, training, and retaining good people, particularly in businesses with a high turnover rate. Local, state, and federal governments set aside billions of dollars every year meant to incentivize hiring that can offset these costs. Unfortunately, the complex hiring incentive landscape means that businesses are leaving millions on the table.
Three key challenges keep employers from capitalizing on tax credit opportunities.

Feature Story:

The Sponge Technique: Squeeze The Balance Sheet To Improve Cash Flow »

By Steve LeFever

Everyone knows the value of a sponge: it absorbs water. This is a pretty good deal. Well, your company's balance sheet is just like a sponge--except that it soaks up cash instead of water. This is not necessarily a good financial deal. As a sponge nears its capacity to absorb additional water, it becomes increasingly less efficient. The same thing occurs with your balance sheet, a phenomenon that has two basic causes.
Increasing sales--or growth--creates a need for additional money to finance an increased level of assets. As we have noted before, the main source for most companies is from creditors--in other words, debt. Risk (in the form of increased debt) increases accordingly, and increasing interest expense may even put downward pressure on profits...



Hot Opportunities

Pet Supplies Plus Franchise Opportunity

Pet Supplies Plus
With over twenty-five years of successful retail franchise experience and...

Add
Papa Murphy's Take 'N' Bake Pizza Franchise Opportunity

Papa Murphy's Take 'N' Bake Pizza
The world's largest, fastest growing Take 'N' Bake pizza franchise is...

Add
Doc Popcorn Franchise Opportunity

Doc Popcorn
Doc Popcorn is revolutionizing the way people snack in high-traffic...

Add
Oxi Fresh Franchise Opportunity

Oxi Fresh
OXI FRESH is a GREEN Carpet Cleaning Franchise and one of Entrepreneur's...

Add
Archadeck Franchise Opportunity

Archadeck
Archadeck is proud to be North America's leading designer and builder of...

Request Information
Jimmy John's Gourmet Sandwich Shops Franchise Opportunity

Jimmy John's Gourmet Sandwich Shops
Jimmy John's franchise success is built upon an unyielding commitment to...

Add
Bricks 4 Kidz Franchise Opportunity

Bricks 4 Kidz
Bricks 4 Kidz provides project-based programs designed to teach principles...

Add
Minuteman Press International Franchise Opportunity

Minuteman Press International
Minuteman Press has been the leader in the printing & graphics...

Add

The Franchise Buzz:


A Franchise Update Media Group Production Franchise Update Media Group | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2014. All Rights Reserved. Site Hosting Provided By: wishVPS on FUMG3
0
Your Request List:
No Opportunities Saved