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It is no secret that many CEOs are challenged by how to best motivate and get results from their franchise development departments. Over the many years I've been involved in franchising, I have seen the powerful role CEOs can play to support their franchise development teams.
  • Linda Burzynski
  • 4,050 Reads 3 Shares
Dennis Hitzeman has had some legendary mentors in his life. First there was McDonald's founder Ray Kroc, who hired the 16-year-old Hitzeman as a crew member for his third location. Later, as a West Point Cadet, he played football for assistant coach Bill Parcells and studied under Gen. Norman Schwarzkopf, Jr.
  • John Carroll
  • 7,148 Reads 4 Shares
The current recession and credit crunch are putting the hurt on franchise businesses, says a new report by the International Franchise Association (IFA). There's no question that the franchising's economic growth and ability to create jobs has been hamstrung by the lack of available credit.
  • Multi-Unit Franchisee
  • 3,309 Reads 5 Shares
Gross sales? Target revenue? Break even? No, this figure is more important than all those. These days, as we're all looking at ways to cut costs, figuring out where and how to cut is extremely important. Using break-even analysis allows you to go in with a scalpel instead of a hatchet.
  • Steve LeFever and Dave Ashcraft
  • 8,915 Reads 775 Shares
John had come to us with high expectations for the price he thought his company would sell for. He was certain of this because he had seen other companies sell for a similar multiple of gross revenue. However, what John had failed to understand was that buyers are only partly interested in top line revenue. More important to negotiating the selling price of most companies is the net cash flow the company produces. John's bottom line failed to live up to industry standards, which meant he wasn't likely to achieve the exit he had envisioned.
  • Andrew D. Horowitz, CPhD, and Nicholas K. Niemann, Esq.
  • 3,900 Reads 118 Shares
Franchise Update Media Group (FUMG), the leading industry resource for franchise development, reports that for the first time, multi-unit franchises are the new industry majority, providing growth opportunities in these times of economic uncertainty.
  • Press Release
  • 4,061 Reads 1 Shares
Charles Loflin started climbing the ladder of success from the bottom rung, and he hasn't stopped yet. "I've been in food and beverage all my life, starting when I was washing dishes at the age of 15," says the 40-year-old multi-brand franchisee.
  • John Carroll
  • 4,197 Reads 7 Shares
Retail franchising is the kind of business operation that most people are familiar with today. After all, everybody knows McDonald's and Taco Bell, but there's much more to know about retail franchising. Like its counterpart, service franchising, retail franchising offers its own set of pros and cons. There are advantages and disadvantages that make it unique. In the right circumstances, retail franchising can make a very good career choice and provide a healthy income for many people. But you'll want to do your homework and make careful considerations.
  • Kerry Pipes
  • 32,893 Reads 4 Shares
After years of building his company by acquiring distressed franchise units and real estate, John Metz bought a distressed franchisor. That's right, a franchisor. On December 17, 2008, Metz took over Hurricane Grill & Wings. And he's from Buffalo.
  • Eddy Goldberg
  • 5,569 Reads 1 Shares
Anyone seriously considering the purchase of a franchise will ultimately have to decide if a "service" franchise or a "retail" franchise is a better fit. It's an important distinction in terms of both entry requirements and operational realities, and it's a decision that can determine your ultimate effectiveness as a franchise operator. First, a basic summary of some typical service franchise opportunities available today, here are just a few: trade and handyman (electricians, plumbers), lawn maintenance, landscape services, childcare, tutoring, education, business coaches accounting, bookkeeping real estate agents, travel agents, commercial, domestic cleaning, automotive-related services, computer-related services, and interior design/decorating.
  • Kerry Pipes
  • 38,508 Reads 9 Shares
Just to let you know where I'm coming from when I talk about the five biggest mistakes I see franchisors making in today's tough economic times, I've been plying my trade for more than 20 years now, and well over 50 percent of my clients have been among the nation's foremost franchise organizations. I've been in the trenches with them during all kinds of economic scenarios--inflation, recession, expansion, steady-as-she-goes, and a couple of booms and busts.
  • Mel Kleiman
  • 8,267 Reads 286 Shares
Dine Brands Global, Inc.
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We weren't surprised by our meeting with Art. We had seen it many times before. Art and his son had founded and built a very successful retail business. They had operations across the country which were consistently producing significant year-to-year net cash flow. Art had decided recently that he was ready to sell the company and that he wanted to get this done right away.
  • Andrew D. Horowitz, CPhD, and Nicholas K. Niemann, Esq.
  • 3,209 Reads 12 Shares
For a man in the hospitality business who's traveled widely, Ted Torres didn't fall far from the tree, nor did he want to. "My father, a first-generation hotelier, was my mentor, teacher, coach, and partner," says Torres, who at 43 has been in the business for 20 years. His most far-flung project, building hotels for Hilton across Russia, never came to fruition--through no lack of willingness on his part--but it was a fabulous month-long adventure just the same.
  • Eddy Goldberg
  • 4,791 Reads 49 Shares
At some level, there's a growing realization that the current economic "decline" is not just a speed bump. The assumption that a return to the "status quo" is sure to come--that it's merely a matter of time--also appears to be quickly fading. The emerging conclusion: Things typically don't come this unhinged only to revert to what existed before.
  • Carol Clark
  • 3,663 Reads 3 Shares
What if there were a way to hire great, energetic franchisees who not only were excited about the brand, but also already knew it inside and out? Your next great franchise operators might be sitting right beside you at your next internal meeting.
  • Kerry Pipes
  • 5,788 Reads 109 Shares
Franchise development teams are trying to defy the seemingly insurmountable odds of today's economy by creatively ramping up their sales efforts. Tactics such as discounted franchise fees, reduced royalties, buy-back guarantees, and other incentives have been pouring onto the franchise marketplace in recent months. The innovative techniques seem to be getting results.
  • Kerry Pipes
  • 6,588 Reads 204 Shares
Unfortunately for many business owners, the economic forecast looks gloomy for this year and perhaps next. At Clix, we have taken an active approach toward understanding the state of the economy and planning our development for the next 12 to 36 months.
  • Franchise Update Magazine
  • 7,998 Reads
At the end of January, following the headlines of optimism and encouragement that came with the presidential inauguration, came the harsh reality of job layoffs and plant closings in one company after another across the country. Home Depot announced 7,000 layoffs, Pfizer trimmed 19,000 jobs, and Caterpillar 20,000. In total, nearly 60,000 wage earners became unemployed, and while many enjoyed reasonable severance packages others were most certainly caught unprepared for the income loss that will follow.
  • Rollie Trayte and Gary Widman
  • 4,117 Reads 50 Shares
Business cycles are the norm and while difficult to predict, peaks and valleys in our economy will always occur. However, the speed and magnitude of deterioration in worldwide business conditions and financial markets make the current recession especially severe. As everyone now knows, this is not a normal trough or business cycle; survival and success during these times will require extraordinary actions.
  • Dean Zuccarello
  • 4,108 Reads 27 Shares
It's hard to ignore the negative press about the economy, and it's almost impossible not to cringe at the mention of credit rates and loans. But (and there's always a but) the glass remains half full--or possibly even overflowing--for those lucky enough to be tenants in today's real estate market.
  • Dan Rowe
  • 4,777 Reads 107 Shares
In the 20th century (some of you might remember that more stable and predictable period), multi-unit franchising was not much of a factor. Sure, there were multi-unit operators, but by and large franchisors didn't really put much emphasis on them. Those that did generally focused on growing their own, not wanting to invite franchisees in from other systems, and certainly not wanting to share their own.
  • Darrell Johnson
  • 3,261 Reads 6 Shares
Doner Shack
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With 324 Subways in Oklahoma and Kansas, Don Rottinghaus knows his brand and his market. Must be time for something new. "I work those areas constantly," he says. He has to. Over the past 20 years, the multi-unit franchisee has built a huge chain of Subway locations in the region. And now he's taking on a new challenge, bringing a taste of Southern California sunshine to the Midwest. Over the next 5 years, Rottinghaus will develop 12 new LA Sunset Tan locations in Oklahoma and 25 in Kansas.
  • John Carroll
  • 8,530 Reads
One of the great things about being an editor at [i]Franchise UPDATE[/i] is the constant stream of press releases we receive. (Okay, I admit, it also can resemble a state of siege). The mailbox always includes some great suggestions on how to improve your business, as well as success stories of franchises continuing to grow, despite the economy. Here are a few items to stimulate your thinking, from top to bottom line.
  • Eddy Goldberg
  • 4,486 Reads 7 Shares
As a student at Florida State University, the entrepreneurial spirit in Sam Osborne led him to own and operate a small personal training business. One of his clients was David Walker, who was soon to be a co-founder of Tropical Smoothie Café. Things have "worked out" well for both.
  • Kerry Pipes
  • 6,402 Reads 212 Shares
Let's play Jeopardy. The answer: "Document!" The question: "What is the most effective way to minimize risk in the franchise sales process?" To be honest, my answer is a form of shorthand, but it succinctly makes my point.
  • Rupert M. Barkoff
  • 6,631 Reads
Once you've examined yourself and considered the broker question, it's time to take the next step. Now you want to look at the various industries and sectors that are attractive and - hopefully - a good match for your skill set. Making a List make a short list of the kinds of industries you're interested in - food service, senior care, home repair, etc. Review the players, the competition, and any regional strengths and weaknesses for the industries you're considering. Older, more established brands may look safe and solid but could be less flexible to deal with. Likewise, newer brands may be big on innovation, but could be short of cash, or worse, struggling financially. Evaluate your risks carefully.
  • Kerry Pipes
  • 15,807 Reads 4 Shares
Looking to expand your multi-unit operation and add some units fast? There's a way you can add locations--and immediate cash flow--quickly, without the long wait and usual headaches associated with building a unit from the ground up. It's called refranchising, and it's hot.
  • Kerry Pipes
  • 7,194 Reads 383 Shares
Franchising can offer a great business opportunity, but there are many different kinds of franchising models and business structures, and so many different brands and concepts. How do you know what's right for you? Begin your research by conducting a thorough and honest internal audit of yourself. Look at how you like to operate. Analyze your strengths and weaknesses. Review the things that make you tick, and the things that tick you off. Do you like to be in charge and calling the shots, or do you like to delegate? Do you like to be behind a counter or desk all day, or do you prefer being out in the field working one on one with customers and potential customers? This is just the tip of the iceberg for the kinds of questions you should be asking yourself. Give this some serious thought. The worst thing you can do is prematurely choose a franchise concept you will be unhappy working in day after day.
  • Kerry Pipes
  • 23,655 Reads 2 Shares
The air conditioner at one of your Phoenix units has failed. The manager calls you and says it's so hot inside the store that customers are turning around and walking out. Your first thought is to call your local A/C repair business for what will most likely be a costly service call.
  • Kerry Pipes
  • 4,313 Reads 22 Shares
Despite all the buzz about "rich media," the simple text ad is still one of the most effective ways of bringing prospective franchisees to your website, according to a report from market research firm iPerceptions. The study is especially intriguing, given its substantial number of participants: 14,000 people were surveyed about their ad preferences after they visited leading media websites.
  • Joe Dysart
  • 6,094 Reads 307 Shares
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