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Feature Story:

Freedom Of Associations: Is 2016 The Year Of Franchisee Activism? »

By Eddy Goldberg

The usual reason for forming an independent franchisee association is to address problems with the franchisor or other conflicts within the system. While the goal of the franchisees who banded together was to improve the system as they saw it, the relationship often was adversarial--at least initially, until the two sides discovered they had overriding common interests. These internal "family feuds" were the norm for decades, especially in systems where the franchisees were not making the return on their investment they'd expected, for whatever cause.
In recent years, however, the focus of franchisee associations has expanded to include external threats--from competition and the battle for market share, to what many currently perceive as a threat from governmental and regulatory bodies to the franchise business model itself...

Feature Story:

Indiana Fights Federal Government Overreach »

Multi-Unit Franchisee

Indiana Governor Mike Pence is the latest to sign a state bill clarifying that a franchisor is not the employer of a franchisee or of a franchisee's employees under Indiana's employment laws. He signed House Bill 1218 in late March.
Specifically, the legislation establishes that an employee of a franchisee is not an employee of the franchisor. Furthermore, the measure outlines that it is the franchisee that is responsible for the employment relationship including hiring, firing, discipline, supervision and direction of the employee. The franchisee and franchisor are considered separate entities and therefore not joint employers.
Indiana joins nearly a dozen other states that have already passed similar legislation or are considering actions to protect local franchises against federal government overreach...

Feature Story:

Survey Says Restaurant Brand Growth Increases »

Multi-Unit Franchisee

The 500 largest restaurant chains in the United States accelerated their cumulative sales growth in 2015 to a 4.9 percent increase, totaling an estimated $288 billion. While four of the top five chains in the ranking improved their performance from the prior year, the fast casual segment continued to lead the pack with 11.4 percent sales growth, almost doubling the growth rate of any other dining segment.
According to data just released by Technomic Inc. in an advance brief of its annual report on the largest U.S. restaurant companies, the 4.9 percent sales growth seen by the Top 500 in 2015 beat out 2014's mark of 4.2 percent. Diving deeper into the improved sales growth observed in 2015, limited service chains grew their cumulative sales 5...

Feature Story:

Call To Reverse NLRB Ruling »

Danny Farrar, CEO and founder of SoldierFit Fitness Company, testified last week on behalf of the Coalition to Save Local Businesses before the U.S. House Small Business Subcommittee on Investigations, Oversight and Regulations. He asked the committee to take action to reverse the NLRB's decision to alter the "joint employer" standard for all small businesses.
In his testimony, Farrar--who served eight years in the military, including a combat tour in Iraq, 700 missions, and tasked with leading the first Army team into the Pentagon on Sept. 11, 2001, stated that small business owners around the country are being forced to try to grow under great uncertainty because of this new standard.
"When the National Labor Relations Board decided to change the joint employer liability standard last fall, it was a scary moment for local business owners like me," said Farrar...

Feature Story:

Letting Go Without Giving Up Control »

By Dan Schneider

What happens to your blood pressure when someone asks you about your "exit strategy"? Oftentimes, the term "exit strategy" stirs up emotions and fears tied to giving up control and "what's next." As a result, the question and necessary discussion are often ignored, leaving you as the business owner in the exact place you are hoping to avoid - vulnerable. As uncomfortable and overwhelming as it may seem to be, strategically discussing an exit strategy along with business vision and growth goals actually puts you in the driver's seat. Sort of like athletes retiring at the top of their game - you are now in control by choice rather than by chance. Just as the building of your multi-unit franchise business happened over many years, the most effective exit strategy is deployed over time and is unique to your personal and business interests such as:

Feature Story:

Never And Always: Creating A Customer-First Organization »

By John DiJulius

You want customer loyalty? Be brilliant at the basics.
World-class service companies have what I like to call a "customer bill of rights" that every person in that organization clearly knows and follows 100 percent of the time. Would you ever expect to see a Disney cast member on break, in full uniform, chewing tobacco and spitting on the ground near the front entrance where guests are walking? Doubtful. Would you ever think a Ritz-Carlton employee, when asked for directions to the ballroom, would respond, "I don't know. I work in housekeeping."? Highly unlikely! One of the most effective ways to elevate your company's customer service level is by instituting your own customer bill of rights.
If anyone is going to wear your uniform or name tag or represent your brand, you need only a small set (6 to 10 actions or standards) for your employees to live by...

Feature Story:

Utah Takes On NLRB Ruling »

Multi-Unit Franchisee

Utah is joining the growing statewide bandwagon to create a bill that defines and separates franchisors from franchisees and their employees. House Bill 116 clearly establishes franchisees as the sole employer of their workers. The bill now awaits the governor's signature, which is expected soon.
State legislatures across the country have been taking up the mantle of franchise business owners and their rights. Utah's HB 116 comes in the wake of a decision by the National Labor Relations Board (NLRB) to change 50 years of federal labor law and legal precedent. The law clarifies that neither a franchisee nor a franchisee's employee shall be deemed to be an employee of the franchisor for any purpose.
"It has become clear that bipartisan agreement in states all over this country have coalesced around the issue that franchisors and franchisee s are separate entities," said IFA President & CEO Robert Cresanti...

Feature Story:

Branching Out: Non-Traditional Franchisees Deliver The Goods »

By Helen Bond

Ross Harried has found that a "small" strategy can serve up big business success. His Maui Wowi Ka'anapali Carts (Tiki huts on wheels) are 8 feet wide, 3 feet deep, 8 feet high and can squeeze in most anywhere, which allows him to provide a memorable presence at events ranging from youth and professional sports to concerts, graduations, dance competitions, corporate gatherings, and wherever he's asked to serve up his smoothies.
The mobile units are a signature of Maui Wowi Hawaiian Coffee & Smoothies, which also offers storefront, kiosk, food truck, and enclosed concession trailer options to franchisees. The lower start-up costs of the mobile carts appealed to Harried, who became a Maui Wowi franchisee in February 2013. Since then, he has built a book of repeat customers and lucrative venue contracts in the Minneapolis area and catapulted himself into the fourth largest franchisee in a system with more than 450 units in 7 countries...

Feature Story:

Wisconsin Passes Pro Franchisee Bill »

Multi-Unit Franchisee

Wisconsin is the latest state to push back against the overreaching National Labor Relations Board (NLRB) by passing a new law that affirms franchisor and franchisee employees are separate entities. Senate Bill 422 was just signed last week by Governor Scott Walker and applies to state enforcement agencies.
SB 422, which excludes a franchisor as the employer of a franchisee or of an employee of a franchisee for purposes of certain laws relating to employment, was signed in the wake of a decision by the NLRB to change 50 years of federal labor law and legal precedent.
Wisconsin is the latest state to enact legislation that provides clarity to the small business community. Nearly a dozen states have passed or are considering actions to protect local franchises against federal government overreach...

Feature Story:

Multi-Unit Franchisees Appointed To IFA Board »

Multi-Unit Franchisee

Aziz Hashim, managing partner of NRD Capital Management, LLC, became chairman of the International Franchise Association (IFA) during the group's 56th Annual Convention last week in San Antonio. David Barr, chairman of PMTD Restaurants, which operates multiple KFC and Taco Bell locations, is now secretary. Other board members appointed include multi-unit franchisees Jeffrey Tews, who operates BrightStar Care and Mr. Handyman locations, John Draper, CEO, Viridian Group LLC, which operates Burger King, Pizza Hut, and Auntie Anne's among others, and Charles Stempler, who operates AlphaGraphics locations.
Hashim has been a long-standing IFA member and an advocate and mentor to the franchise industry at large. He has held numerous leadership positions in the association throughout his career...

Feature Story:

Cultural Due Diligence Essential In M&A's »

By Dan Schneider

Growth opportunities wear many disguises. Sometimes it looks organic; sometimes it looks like a merger or acquisition; and sometimes it looks like a combination of all three. With each disguise comes a different set of challenges.
Specifically, with mergers and acquisitions, the biggest challenge is that the core values and cultures of the two organizations differ. Owners go through an in-depth financial due diligence process during a buy/sell in order to determine the market value of the franchise. However, it is rare, if ever, that any cultural due diligence is completed to determine the cultural compatibility. Without cultural compatibility, the integration of the new location can be very challenging. The cultural differences have much more emotional impact than rational on how they impact the mingling of the cultures...

Feature Story:

New Texas Law To Protect Franchising »

franchise, franchising, multi unit franchising, franchise update, mult-unit franchisee

The state of Texas continues to be a magnet for growth in the franchising industry, thanks in part to a new law the legislature enacted last year to protect the viability of franchise businesses. Nationwide, the franchise industry is expected to add 278,000 direct jobs to the economy for a total of 9.1 million and the number of establishments will grow by 13,358 to 795,932 in 2016.
"Texas recognized the importance of defining the difference between franchisors and franchisees, and enacted legislation clarifying an employee of a franchisee is not an employee of the franchisor," said IFA State Director Jeff Hanscom. "This legislation provided clarity to the small business community in Texas and allowed the franchise business model to continue to thrive...

Feature Story:

Baskin-Robbins Grows And Offers  »

Baskin-Robbins, has signed development agreements with two franchise groups to develop three new ice cream shops in Banning and Temecula, Calif., over the next few years. But the brand has also just launched a unique new development strategy by creating a "ready-to-operate shop" for potential franchisees.
New franchise group M DB Enterprises, LLC, led by husband-and-wife team Hemant and Hemlatta Bhakta, plans to develop one new shop in Banning. Hemant previously held several positions with Baskin-Robbins before deciding to open his own shop. The new Banning location is planned to open at the end of this year.
Gary and Maria Yarbrough have been Baskin-Robbins franchisees since 2011 and plan to develop two new shops in Temecula. They currently own and operate a Baskin-Robbins in Chula Vista and are developing a second location in the area, which is slated to open in April...

Feature Story:

Common Terminology: Franchisors Should Speak The Same Language »

By Paul Wilbur

Franchising is full of creative entrepreneurs and marketers. With creativity, however, comes the desire to explain franchising in terminology that differentiates a brand from its peers.
Take for example a model FRANdata has defined for years as the Area Representative Growth Model. This model uses intermediaries (area reps) to sell and support franchisees in a territory, but those intermediaries do not contract directly with franchisees. We've come across at least 10 different names for this model, including regional director, regional developer, regional manager, regional services, master franchisee, master franchisor, area franchisee, area director, area developer, and area representative. This is a terribly confusing situation for prospective franchisees, lenders, suppliers, and the industry overall...

Feature Story:

Trust And Teamwork Build Success »

By Loyd Rawls

Organizational productivity is dependent upon teamwork, which I describe as two or more people working together for a common goal. Team can be expressed or implied, conscious or unconscious, but regardless, organizational productivity depends upon the effectiveness of interdependent, collaborative effort.
Teamwork can be fair, good, or great, but there really is no such thing as bad teamwork. If you think about it, bad-teamwork is actually an oxymoron. To further this point, the English language doesn't have one single word to describe the opposite of teamwork. We generally associate "the opposite of teamwork" with uncooperativeness, inter-organizational competition, backbiting, and under productivity.
Partners or families endeavoring to develop, manage, or grow a multi-unit franchisee organization often struggle with building strong collaborative teams...

Feature Story:

The Most Satisfied Franchisees Are... »

Multi-Unit Franchisee

More than 28,000 franchisees representing 339 franchise brands were recently surveyed- and the results reveal a highly satisfied group.
Franchise Business Review, a franchise market research firm that performs independent surveys of franchisee satisfaction, has released its "2016 Best of the Best: Top 200 Franchises" list, the only ranking of franchises based solely on actual franchisee satisfaction and performance.To identify the franchises that made its list as well as the latest trends in franchisee satisfaction, the company surveyed 28,000 franchisees representing 339 franchise brands. Franchisees who participated in the free survey were asked 33 benchmark questions about their experience and satisfaction regarding critical areas of their franchise systems including training and support, operations, franchisor/franchisee relations, and financial opportunity...

Feature Story:

Restaurants Contribute To Fighting Child Hunger »

Multi-Unit Franchisee

16 million kids in America don't know where their next meal is coming from. That's 1 in 5 children who face hunger in this country. The food service industry, including franchise brands, and research firm Technomic are trying to make a difference in helping to end this societal blight. One way is through participation in the annual Dine Out for No Kid Hungry campaign.
This past September during No Kid Hungry month, consumers helped over 9,700 restaurants across the country raise money simply by dining out at participating restaurants, purchasing select items, or making a small donation.
Technomic put their foodservice knowledge and expertise to use by conducting qualitative and quantitative consumer and operator research to help No Kid Hungry better understand and communicate the benefits of participation...

Feature Story:

Women In Franchising Facts »

Multi-Unit Franchisee

Franchise Business Review routinely collects franchise market research and data covering areas such as franchisee satisfaction and franchise buyer experiences. They have a wide array of data and insight into the world of franchising. We asked them to provide some general research and statistics on women in franchising.

How female franchisees view themselves overall and within specific sectors

Feature Story:

FY2016 Omnibus Bill Misses The Mark »

Multi-Unit Franchisee

The IFA issued a statement applauding Congress last week on its efforts to enact the FY2016 omnibus spending package, which contains many provisions beneficial to small business owners. But the IFA said it excluded a bipartisan provision that would have temporarily halted the National Labor Relations Board's (NLRB) enforcement of its joint employer standard.
"The omnibus bill includes a delay of the Health Insurance Tax (HIT), which would have increased health plan premiums on individuals and employers, and it includes a two- year delay of the 40 percent excise tax on high-value health plans," IFA President & CEO Robert Cresanti stated in a letter to Members of Congress. "This, coupled with the passage of the tax extenders package, will have a salutary effect on small business growth and job creation...

Feature Story:

Building Bench Strength In Your Organization »

By Dan Schneider

Key managers are the bedrock for any size business. They shape the culture and provide the leadership to drive results in line with the vision, mission, and strategic goals of the organization. Due to the operational and leadership weight they carry, if a key manager leaves the business without a plan for a speedy replacement, the organization can be left incapacitated. As a result, the development of leadership and management bench strength is critical to providing for the continued success of the franchise business.
The process of bench building is relatively simple, however, discipline to implementation is where many organizations struggle. Adopting the following philosophies in your process will ensure your program is on the right path...


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Multi-Brand 50    

Multi-Unit Franchisee Magazine

Issue II, 2016

Multi-Unit Buyers Guide    

2016 Multi-Unit Buyers Guide

Special Edition

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