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.
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
- 3,944 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
- 3,899 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
- 5,969 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
- 3,695 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."
- 2,872 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
- 4,141 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
- 3,650 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
- 6,712 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
- 3,617 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.
- 5,187 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
- 4,148 Reads 9 Shares
When Nikki Gahr Sells decided to forgo her school teaching job of eight years in 1983, a job in which her mother had spent a lifetime, she didn't know a lot about career paths for anyone, much less women, outside of teaching. She went to a staffing agency for help in finding a new job. In an unexpected twist, the staffing agency hired Sells. The agency, Express Personnel Services, was the first franchisee of Express Services Inc.
- Karen Fritscher-Porter
- 4,391 Reads 17 Shares
In taking various licensed concepts to some 70 countries, we have seen numerous approaches to how licensors evaluate new countries. These approaches can be classified into three basic categories: the reactive approach, the shotgun approach and the predictive approach.
- Kevin Ainsworth and Todd Anders
- 3,526 Reads 9 Shares
Whether it's in marriage or in business, the key to a successful relationship is mutual trust. Nowhere is that truer than in the relationship between franchisor and franchisee. Franchisees have trusted franchisors with their life's savings while we have trusted them with our brand name and reputation. Therefore, a strong franchise network, like a strong marriage, is a bond of trust.
- Susan Last
- 11,608 Reads 6 Shares
Jo Kirchner never planned to run a school system. Happily operating her own public relations firm near Atlanta, in 1988 she made a presentation to the Roswell Chamber of Commerce, which was starting a marketing program to attract developers of high quality homes. She got the job, and she started making presentations to area groups about the marketing project.
- 5,279 Reads 205 Shares
Got a qualified prospect interested in opening up a new franchise but who has never seen one of your stores? No problem for Long Beach, Calif.-based It's A Grind Coffee House, which utilizes a web-based program that allows prospects with a password to get behind a computer screen, log on, and view real-time streaming video of the action inside a store. A camera located behind the counter offers online viewers a live feed of what's going on inside an It's A Grind Coffee House. Prospects can see the store's layout, decor, customers and employees engaged in transactions.
- Kerry Pipes
- 2,635 Reads 9 Shares
Home of Merengue and a rich baseball tradition, the Dominican Republic covers 48,730 square kilometers, has a population of approximately 8.8 million people living on the island, and has more than one million nationals living in the United States.
- Larry B. Pascal and Patricia Mastropierro
- 7,148 Reads 5 Shares
Throughout its two millennia of ruthless history, the Romanian people learned to accept that their accomplishments could be destroyed at any time. As a consequence, long-term planning was useless. More recently, the adverse reaction created by the infamous communist lies called "the glorious five-year plans", along with the current chaotic on-going transition toward profit oriented business, naturally has led to a very short-term orientation in private and organizational life.
- Carmen Aida Hutu
- 3,265 Reads 3 Shares
The IMPI is an agency of the Federal government created in 1993 which has its own assets, personality and budget. IMPI has over a 1,000 employees in Mexico, most of them are concentrated in our headquarters in Mexico City, but we also have regional offices in Guadalajara, Mérida, Monterrey and León. In terms of our human resources, around 63% of our employees have a bachelor degree, 25% have technical education, and 2% masters or PHD degrees which allows us to provide high-quality services to users.
- Alberto de la Peña
- 5,630 Reads 16 Shares
Steven Rogers has set his company apart from the crowd with a winning formula on acquiring franchise systems in the residential services field. As president and chief executive officer of the Franchise Company, Rogers has amassed 9 franchise operations that provide services to more than 400,000 customers through a network of more than 2,000 franchisees employing 8,500 workers.
- Joan Szabo
- 3,525 Reads 1,021 Shares
Despite recent economic turmoil, franchising in Argentina has rebounded at a surprising rate. In the 1990s, many foreign franchisors (particularly from the U.S.) expanded to Argentina. At the height of the economic turmoil in 2002, the sector shrunk by 4% and the expectations for 2003 were very low. However, contrary to expectations, in 2003, the sector grew by 70%, generating approximately US$1.9 billion in sales in 2003, and adding twenty-nine (29) new franchises. Today, franchising in Argentina represents 20% of the total retailer sector, accounts for more than 13,000 retail stores, and employs more than 100,000 employees. Furthermore, the national franchising association (Asociacion Argentina de Franchising), an organization affiliated with the International Franchise Association, estimates that the sector will continue to enjoy strong growth, projecting sales volume to reach US$2.35 billion in 2005 and for the sector to account for 30% of the retail sector in the next decade.
- Patricia Mastropierro
- 7,177 Reads 4 Shares
When doing business in The Philippines, it is advisable to be aware of the Filipino sense of lifelong obligation. A foreign businessperson frequently becomes involved in giving and receiving favors and, therefore, owes obligations to local people and acquires obligations from them. This process of give and take is a normal part of business in all countries, however, in the Philippines, important personal obligations have a very serious, nearly sacred importance. Keeping this cultural value in mind, successful international businesspeople are cautious and conscious in their personal and professional relationships (which are often mixed) with Filipino government officials, business leaders, partners, employees, clients, suppliers and service providers.
- Gary M. Wederspahn
- 6,309 Reads 1,014 Shares
If you could connect better with potential franchisees, speed up the recruiting process, and save a ton of money doing it, wouldn't you?
- Ripley Hotch
- 2,261 Reads 1 Shares
When a franchisor terminates a defaulting franchisee, the franchisor can sue for past due royalties and prevail, if there are no legitimate defenses by the franchisee. Can the franchisor also recover lost future royalties resulting from the early termination of the franchise relationship? Ten years ago, the answer was probably yes. Today, the answer is much less certain.
- Rupert M. Barkoff
- 5,771 Reads 1,019 Shares
Are you equipped to provide prospective franchisees with information on how to finance a franchise? Even better, are you able to offer them financing assistance? Most financing experts say that the best source of financing information remains the franchisor.
- 3,736 Reads 1,021 Shares
Finding innovative financing strategies can be worthwhile, especially if they lead to multi-unit franchise ownership. One method you may want to look into involves the use of retirement funds to invest in some of the nation's most attractive franchises.
- Joan Szabo
- 3,536 Reads
- Joan Szabo
- 3,465 Reads 1 Shares
Area Developer targets the largest 10,000 multi-unit and multi-brand franchise owners and operators in the U.S. The publication's editorial focus includes real estate, finance, legal, best practices, sales, human resources, technology, growth strategies, exit strategies, incentives and management structure. Each of the magazine's quarterly issues will also provide case studies, CEO profiles, industry statistics and trend pieces written by contributing writers from across the country.
- 4,149 Reads 12 Shares
There is a very positive climate in relation to franchising in New Zealand where over 300 systems exist. Franchising has been growing at about 20% per annum during the past 5 years and although there is no mandatory legislation, there is a Code of Practice which is mandatory for members of the Franchise Association of New Zealand.
- Stewart Germann
- 4,104 Reads 16 Shares
When interacting and working with Swedes, it is important to understand the meaning of the word lagom. It does not have an exact equivalent in English but translates approximately to "just right" or "everything in moderation." It implies an ideal place of moderation and balance. You can see its influence in everything from the decision-making process and the need for consensus, to how much food to put on your plate. The lagom "point" varies from individual to individual, but falls somewhere along the middle of a continuum. It can be difficult for non-Swedes to really understand, however a good rule of thumb is to think in terms being moderate, modest, and to tone things down. It is also important to remember that Lagom does not imply lack of ambition or self-confidence. Swedes are very quality conscious and believe in doing their personal best.
- Christina Johansson Robinowitz
- 4,256 Reads 22 Shares
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