New Jersey Feature Articles

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.

From handwritten business logs to detailed software programs, the way in which businesses run has changed significantly over the last fifty years. Perhaps one of the most significant changes in the last 10 years has been the shift to multi-state business ownership.

If building a successful brand is all about solid fundamentals, execution, and consistency, why doesn't every franchise do it? "Why doesn't everyone win the Super Bowl?" asks Phil Friedman, president and CEO, who co-led a 1999 buyout of the company.

In 2000, Lou Brown, one of the more successful high-tech entrepreneurs of the 1990's, decided to exchange silicon for a grease gun, and took over struggling Precision Tune.

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.

Bill Welter's name may not be familiar, but one small phrase he created decades ago will place him for you immediately: "Where's the beef?"

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.

Franchised businesses generate jobs for more than 18 million Americans and account for 9.5 percent of the private-sector economic output, a study released today by International Franchise Association Educational Foundation reported.

Last November Captain D's Seafood announced seven new franchise agreements that will add at least 34 new franchise locations to the system. The largest was with Serve Holdings, led by veteran multi-unit operator Clarence A. Mitchell, III, who bought 20 company stores in the Memphis DMA. He will remodel all 20 with the company's new prototype and develop 15 new stores in the next 5 years. The deal grants Serve Holdings exclusive expansion rights in western Tennessee and three surrounding states (MO, KY, and IL).

When it comes to evaluating a potential area developer, don't marry for money, say franchisors. With money as a given, look for that indefinable "fit" and you're golden for the long haul.

Julia Stewart is a very persuasive woman. As president, CEO, COO and director of IHOP Corp., she is, she says, using all her skills as a communicator, persuader, and collaborator, to revitalize one of the oldest and best-known foodservice brands.

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.

That's only one of the secrets to Jim Gendreau's success Don't let his 'aw, shucks' attitude fool you: Jim Gendreau is one heck of a salesman. Here's a guy who cheerfully tells you he graduated second in his class of 98 ('second from the bottom!'), talks about his learning disabilities, and wonders at his great good luck.

Start spreading the news, you may just want to be a part of New York, New York. The Big Apple heads up the list of the top 20 cities in the U.S. for franchising, according to a new study by Franchise Update and FRANdata. This past summer, executives from Franchise Update commissioned researchers at FRANdata, an organization that collects extensive franchise industry information, to tabulate the rankings. FRANdata analysts drew upon more than 250,000 records of franchise locations out of its proprietary database to calculate the results. "We analyzed Direct Market Areas (DMAs) as outlined by Nielsen. We matched zip codes to DMAs and calculated the number of franchises within those DMAs," explained FRANdata data research analyst Brad Morick, who was responsible for the project. The use of the DMAs helped standardize the analysis and interpretation of the rankings. "To my knowledge, no one else has ever done a study like ours," continued Morick. "Since we collect UFOCs from franchises across the country, we know all of their locations and could easily do a cross match. "

Historically, a business plan is mostly a financial plan and analysis, specifically focusing on: "Why I need your money, what I will do with your money, how and when you will get your money back, and what a great guy I am and what a great business this is; or, why you should give me the money." It is usually a highly stylized presentation with numerous spreadsheets and exhibits.

If there is such a thing as perfect training to become a franchisor, Great Wraps Chairman Mark Kaplan got it. And he's applying that training to a franchise he and his partners are building from the ground up.

Mack Wilbourn has a problem: What to do with the cartoon figures of Popeye, Olive Oyl and the rest that decorate his jet black Hummer. That was great when Popeye's Chicken and Biscuits had the license for the characters, but now that the chain is rebranding, the characters have to go.

Franchisors in search of new concepts have discovered a rich market in small businesses that could benefit from the perks that larger companies enjoy, but cannot justify or afford them. Having access to these professional services can have a profound impact on the success of small businesses.

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.

Franchise companies do change hands; sometimes often. New ownership is not always sympathetic to the goals of franchisees, and that can cost a system badly. Some franchisees are taking a more aggressive approach to that situation-or the threat of it. They've become owners themselves. And there are good reasons why that strategy might work.

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.

Multi-unit, multi-brand, co-branding, area development--you've seen these defined, and they are distinct entities. Most multi-unit franchisees start with a few, and quickly grow one brand, then add another, and often enter into an area franchise agreement.

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.

Franchisors in search of new concepts have discovered a rich market in small businesses that could benefit from the perks that larger companies enjoy, but cannot justify or afford them. Having access to these professional services can have a profound impact on the success of small businesses.

Rich Kissane's son was a good athlete, but "kind of clumsy," says the 25-year franchising veteran. The family was living near Atlanta, and friends told him about Velocity Sports Performance, a small company that offered the same kind of sports training that large professional sports organizations provided their players. Kissane enrolled his son, and "The next year, he was defensive player of the year for his football team."