Franchisor Articles

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

If you could connect better with potential franchisees, speed up the recruiting process, and save a ton of money doing it, wouldn't you?

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.

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.

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.

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.

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.

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.

When interacting with Singaporeans, it is vital to know their network of stakeholders. Imagine a chessboard and the strategy involved in maneuvering through multiple players in shifting positions: Which player has the most power? What influence might another have? How might other players perceive my move? Almost like calculating chess players, Singaporeans continually mentally assess the total formula in their surroundings; this assessment drives communication and other required protocol that facilitate their aims and interactions.

The draft Franchise Regulations ("Draft Regulations") anticipated to replace the 1997 Measures concerning administrative of commercial franchising (the "1997 version") were expected to be out by end of this year. However, reliable sources at the China Chain Store Franchise Association reveal that the draft is pending further amendment at the Ministry of Commerce. To-date, no one knows when the new law will be promulgated.