Franchisor 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 franchise growth, operations, legal, leadership, marketing, real estate, and technology 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.
This fall, Franchise UPDATE conducted its eighth annual lead generation and sales survey. Once again, the Internet received the lion's share of budgets and generated the most leads. We are noting the continuing strong trend toward broker networks-almost everyone is making some use of these networks.
- 3,624 Reads 10 Shares
We know that the profession of franchise sales is an honorable one and that many sales professionals are great at what they do. But let's face it: For many people, the word "selling" is a mighty nasty word, and the idea of dealing with a "salesperson" is about as pleasant as having a root canal!
- Flo Schell
- 4,296 Reads 5 Shares
I must be becoming a curmudgeon. In recent Viewpoint columns, I have taken potshots at the FTC and my fellow franchise lawyers. So far, the state franchise regulators have for some reason been below my radar screen. Why?
Over the course of my...
- Franchise Update
- 5,114 Reads 7 Shares
I must be becoming a curmudgeon. In recent Viewpoint columns, I have taken potshots at the FTC and my fellow franchise lawyers. So far, the state franchise regulators have for some reason been below my radar screen. Why?
- Rupert M. Barkoff
- 3,799 Reads 9 Shares
Building a franchising empire in the restaurant industry takes a good deal of planning, commitment, and expertise. Fortunately for the industry there still are leaders out there who can bring all those qualities to the table.
- Joan Szabo
- 4,385 Reads 39 Shares
For Don Cape, franchising came as an afterthought-and a good one. Cape, 34, who grew up in a family that developed land in Montana, focused his education and early career almost exclusively in real estate, finance, and development.
- Eddy Goldberg
- 4,872 Reads 15 Shares
Cost savings are integral to the success of any franchisor, and effective purchasing of equipment is a simple way to bolster profits and improve efficiency and quality.
- Mark Krebs
- 3,957 Reads 2 Shares
Time for my annual "just got back from the IFA Convention" column. I saw lots of my lawyer friends while there-also met a lot of suppliers, franchise consultants, academicians, journalists, and franchisees. Occasionally, I even came a cross a franchisor. Didn't see too many psychologists, however. Why not?
- Lawrence Bivins
- 4,193 Reads 9 Shares
For those of you who have been living under a rock for the past 10 years, I have a newsflash: Since 1995, The Federal Trade Commission has been involved in a rule- making process to amend the FTC Rule (the "Rule") to change certain disclosure...
- Franchise Update
- 5,118 Reads 2 Shares
For those of you who have been living under a rock for the past 10 years, I have a newsflash: Since 1995, The Federal Trade Commission has been involved in a rule- making process to amend the FTC Rule (the "Rule") to change certain disclosure requirements and to recognize certain changes to the franchise business sales model and use of technology in the franchise sales process. What we know is the likely substance of the changes; what we don't know is when they'll be implemented.
- Lane Fisher
- 3,626 Reads 2 Shares
In 1991, Jeff Johnson wife Carol were successful multi-unit franchisees for Schlotzky's deli. They had three units of their own in Lincoln, Neb., and area developer rights for a five-state region in the upper Midwest.
- Ripley Hotch
- 3,695 Reads 7 Shares
Franchise organizations cite these conventions as a vitally important part of their success. Traditionally, the meetings have provided an opportunity to bring franchisees together regularly to share system information and offer training. But these "family" get-togethers are continuing to evolve as franchisors look for new and refreshing ways to attract, motivate, and energize their franchise operators and send them back to their stores full of information and inspiration.
- Kerry Pipes
- 4,008 Reads 1,023 Shares
Lending experts say if you haven't provided financing information on non-bank lenders to prospective franchisees, you may be missing an important opportunity. There are a number of advantages to using non-bank lenders for franchise development, and franchisees who need financing help will appreciate the information you provide.
- Joan Szabo
- 7,071 Reads 1,014 Shares
In 1996, a young London inventor asked British franchise veteran Victor Clewes whether he should franchise or sell the innovative machine he'd created for filtering used cooking oil. Clewes had never set foot in a commercial kitchen, but it didn't take him long to see that Jason Sayers was sitting on a franchising goldmine.
- Deb Selinsky
- 5,376 Reads 15 Shares
So, you signed your first international Master Franchise and received your first initial Master Franchisee Fee.
- William (Bill) Edwards
- 4,564 Reads 1 Shares
The franchising industry in Vietnam has been gradually developing over the past few years with the products and services of a number of well-known local and foreign brand names achieving higher market profile. However, this development has taken place in the absence of any regulations directly governing franchising activities. The current franchising industry in Vietnam has relied on regulations on related issues, such as those to do with licensing of intellectual property rights and technology transfer coupled with general contractual obligations.
- Andrew Terry
- 4,082 Reads 14 Shares
Belgium's proposed franchise law (the "Proposed Law") seemed to be headed for final adoption on October 18, 2005; however, the Belgian Senate had other ideas. The Senate took up the bill for reconsideration prior to the October 18th deadline, so the bill is now back in a state of limbo while the Senate debates whether to make changes to the draft that was approved by the Belgian Chamber of Representatives on July 7, 2005. The Belgian Senate has 60 days to decide whether revisions need to be made to the Proposed Law. If the Senate revises the Proposed Law then the bill will be sent back to the Belgian Chamber of Representatives for further consideration.
- Ryan Whitfill
- 4,143 Reads 6 Shares
Ninety days after the effectiveness of China's new franchise regulations, foreign franchisors and their lawyers are trying to sort out whether they can comply with the law, and if so, how. The Measures for the Administration of Commercial Franchising ("Measures") were adopted as a part of China's commitment to the World Trade Organization to open the Chinese economy to foreign investment. Although rumors about the forthcoming regulations had been emanating from Beijing for nearly two years, in late November the world was given 12 days to comment on draft Measures which would apply to "Foreign Invested Enterprise" ("FIE") franchisors. By the end of December, the Ministry of Commerce ("MOC") had promulgated revised franchise regulations which apply to both domestic and foreign invested enterprises, but which failed to address whether foreign companies may franchise directly into China.
- Carl E. Zwisler
- 12,041 Reads 963 Shares
If adopted, the recently published Unfair Contract Terms Bill ("UCTB") will significantly change the way franchise agreements are viewed by English courts and could create headaches for franchisors with franchises in the United Kingdom ("UK"). The UCTB was published by the Law Commission in draft form earlier this year. The bill will not become effective unless it is formally adopted, but the draft reflects the views of the current government so it is likely that the bill will be adopted sometime in 2006.
- Ryan Whitfill
- 4,470 Reads 99 Shares
The Mexican Congress is reviewing a bill ("Bill") intended to amend the Mexican Industrial Property Law ("IPL") to regulate franchise agreements and to add new disclosure procedures. It is still uncertain whether the Congress will approve the Bill. Currently, the IPL franchise regulations are very limited, and do not regulate the content of franchise agreements. The Bill adopts a very different approach in order to protect franchisees from perceived franchisor abuses.
- Alberto de la Peña
- 4,003 Reads 6 Shares
Can an elephant change its spots? Sometimes it feels easier to start a new brand than to change an old one-even if the old one seems ready for the bone yard. But how do franchisors who want to keep a valuable (but tired) nameplate breathe new life into it, attracting new customers while retaining the faithful--and convince its franchisees not only to have faith after years of malaise, but that change is what they need? Franchise UPDATE spoke with three franchisors who knew they had a good thing going-and figured out a way to make it fly once again.
- Eddy Goldburg
- 3,955 Reads 19 Shares
As a college dropout with a highly successful
father (a transplant surgeon), Brian Scudamore
had a mission. He had started 1-800-Got-Junk?
as a way to pay for college and now was
determined to put his business to the test. But
let's not get too far ahead of ourselves.
- Ripley Hotch
- 6,068 Reads 136 Shares
Australian companies looking to expand beyond their borders are casting a hungry eye on the U.S. market. Physically Australia is over ¾ the size of the United States but there are only 19.9 million people in the country compared to a population of over 293 million in the U.S. What's more, high household and disposable incomes and the almost competitive desire to be the first on their block to try something new give American consumers both the means and the propensity to buy Australian products and services.
- Kay Ainsley
- 3,749 Reads
Nikki Sells has just been recognized as the 2005 recipient of the IFA's distinguished Bonnie Levine Award. The annual award honors individuals who further the cause of women in franchising. Sells, who is vice president of franchising for Express Personnel Services, in Oklahoma City, was presented the award during the recent IFA 45th annual franchise convention.
"It's all about the journey," said Sells, a former school teacher, who has been vice president of franchising since January 2004 after being a longtime franchisee in the Express system. "To me, there's no such thing as a destination and this is where my journey has fortunately taken me. I've had a lot of wonderful opportunities and mentors along the way."
- 2,897 Reads 3 Shares
Ron Berger knows the advantage of buying an existing franchise concept and improving on it. That is what he has done with Figaro's Pizza, a Salem, Oregon-based chain that is growing at a rapid pace.
- Joan Szabo
- 4,212 Reads 7 Shares
Despite attempts by the FTC to encourage franchisors to use earnings claims-most notably in the 1995 change to the Rule, which made claims easier to make and defend-most franchisors avoid them. According to a 2003 FRANdata study, only18-20% of all franchisors make earnings claims and that percentage has not increased substantially in the last five years.
- Lane Fisher
- 3,705 Reads 1 Shares
After 10 years in Atlanta, Phil Greifeld hasn't lost much of his New York accent. But after a stint as chief executive officer of the Huddle House chain, he has developed an appreciation for shirt-sleeve weather in winter, and for some of life's simpler pleasures -and smaller places.
- Tom Steadman
- 6,770 Reads
After years-five to be exact-of waiting, it is here: the FTC staff's report regarding proposed changes to its Rule governing the sales of franchises.
- Rupert M. Barkoff
- 3,666 Reads
Franchising is driven by expansion and growth. Creating leads and identifying prospects is an essential part of any corporate franchise operation. Franchise executives understand the importance of effective marketing and recruiting. They spend significant amounts of time, human resources, and financial resources to develop systems that help them optimize their recruiting.
- 5,246 Reads 1,014 Shares
Finding the right type and mix of financing can mean the difference between success and failure for many franchisors. While your main choices are debt, equity, self-funding, and external funding, experts say the best-managed companies often mix their financing sources and choices, at different stages of development, to achieve the best business results.
- Joan Szabo
- 4,205 Reads 9 Shares
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