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Construction

Completing the construction and build-out of a new franchise location requires careful advance planning and dealing with landlords, local regulations, contractors and more, as does reimaging an existing location. Franchisors have specifications for each type of venue and footprint, from end-cap to malls to nontraditional sites such as airports or colleges. The permitting process can be lengthy but using a local expert can help.

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You have several units--maybe even several brands--and you do a pretty good job of controlling your area. In fact, other franchisees in the chain often look to you for answers. And when the franchisor introduces a new product or advertising campaign your voice mail and e-mail overflow with peer requests for advice. You're a hot property for the suppliers, the franchisor, and your franchisee association or advisory council. Your franchisor spends more time with other franchisees because they see you don't need their help. You have dozens, even hundreds of employees and your share of G&A expenses. Your banker and the institutional lenders love you (for the time being), and you have more opportunities than you can evaluate.
  • Bill Hall
  • 2,621 Reads
Seventy-year-old Kelly White waited a long time before exploring the world of franchising. In fact, he came out of retirement at age 66 to open his HoneyBaked Ham store in Silverdale, Wash. "Retirement was just too boring for us," says White, referring to himself and his wife Sue. Together they manage the store and a staff of eight part-time and full-time employees. White's hands-on style and love of running the business have served him well. That's probably because he founded and operated his own construction company for 25 years, much of that while concurrently running an apple orchard.
  • Kerry Pipes
  • 2,814 Reads 11 Shares
Too often, franchise owners lack the cash flow needed to act fast enough to capitalize on an opportunity. As a result, franchisees are forced to sit back and watch others take advantage of the situation.
  • Thomas Epstein
  • 3,337 Reads 5 Shares
Florida-based businessman Peter Economys and New York entrepreneur Rob Tobias have a very special talent important to area developers: they're champion multi-taskers. But the concentration and mental agility necessary for the success of any area developer is doubly important for them--because each oversees multiple concepts.
  • Debbie Selinsky
  • 4,468 Reads 129 Shares
When the economy is sagging it forces many people to tighten their financial belts. It's often a time when buying and selling a home becomes much less of an option - consider the recent housing market debacle - and as a result, more people choose to stay where they are and simply do a little minor home improvement or remodeling.
  • Kerry Pipes
  • 3,806 Reads 1,019 Shares
In June 2008, heavy rains caused flooding that filled the basement and rose two feet high on the first floor of Columbus Regional Hospital in Columbus, Indiana. The flooding closed the hospital, forcing the evacuation of 157 patients and causing an estimated $125 million in damages. Paul Davis National (PDN) was soon on the scene, part of the team brought in to mitigate the damage and allow the regional health care facility to reopen as quickly as possible.
  • Eddy Goldberg
  • 2,760 Reads 1,021 Shares
Think of it as hoses-to-go. A broken hose can spell disaster for many businesses. A machine breakdown at a job site or factory can cause work to grind to a halt. And sometimes it can take days or weeks until the proper replacement hose can be obtained and the machines repaired. In purely economic terms, a $20 broken hose can bring a $3 million crane to a standstill - not to mention the paid employees who are idly standing by.
  • Kerry Pipes
  • 4,879 Reads 1,014 Shares
Mike Ghaida lives in a million-dollar house in a quiet suburb in New Jersey with his wife and three sons, and $300,000 worth of cars in his driveway. It wasn't always this way for the 41-year-old Ghaida, who came to the U.S. from Lebanon at 17 to study English and architecture at LSU.
  • Eddy Goldberg
  • 21,623 Reads 355 Shares
Most people would trade their day job anytime for Bob Stucker's problem a few years back: "I retired too young."
  • Kerry Pipes & Eddy Goldberg
  • 3,937 Reads 11 Shares
What was once a humble grassroots movement to "Save the Planet" has now become big business, with consumers a major part of the push. Seems everywhere you look these days, more and more companies are touting their "green" initiatives as they scramble to implement various ways to recycle, reuse, and renew. Green is in.
  • Kerry Pipes
  • 4,311 Reads 7 Shares
Conventional wisdom would say the best franchise operators are individuals with past business experience - or even better, previous franchising experience. But that may not be the case any longer. A youth movement is under way in the world of multiunit franchising.
  • Kerry Pipes
  • 4,953 Reads 98 Shares
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Last Saturday, mom and dad packed the kids into the minivan and headed out to the fitness center (Curves for her and Athletic Republic for him). First they dropped the kids off (one at Huntington Learning Centers, the other at Abrakadoodle). Before they left, they'd made sure the woman from Bathfitters knew exactly what they wanted done with their new shower, and reminded the man from Spring-Green to cut the back lawn extra short this week.
  • Eddy Goldberg
  • 3,804 Reads 1 Shares
In the chronicles of franchising history, some names come immediately to mind - Ray Kroc, S. Truett Cathy, Dave Thomas. The names conjure up images of independent-minded entrepreneurs with the savvy, know-how, and vision to create successful business models replicable anywhere. As part of the celebration of Franchise UPDATE's 20th anniversary, we look back at some of these colorful, inspiring, and sometimes controversial characters.
  • Kerry Pipes
  • 4,009 Reads
Despite all of the attention recently focused on income taxes, it is the property tax that is the biggest expense in most businesses - and the most difficult to manage. According to the Council on State Taxation, a Washington, DC, think tank, American businesses shell out more on property taxes than for any other type of state or local taxes.
  • Mark E. Battersby
  • 2,747 Reads 4 Shares
Franchising can be a snap… or a click. Photography franchising is getting a lot of, er, exposure, and has developed rapidly in recent years.
  • Kerry Pipes
  • 6,581 Reads
Hank Huth didn't set out to be in franchising. As a matter of fact, he was a banker. But in the mid-1980s, he was introduced to some executives at then-emerging Blockbuster Video and decided to "take a leap of faith" and give franchising a try. He called on his high school buddy Tim Nolan, who had managed some McDonald's franchises, to be his partner.
  • Eddy Goldberg and Kerry Pipes
  • 5,155 Reads 299 Shares
Gary Hoyle thought there might be a good concept for franchising at a Florida restaurant he knew. So he ate there every day for three monthsâ€"soaking in the atmosphere and dining on the delicacies. It was enough to convince him it could work.
  • Kerry Pipes
  • 2,691 Reads 2 Shares
He always meant to quit working at Jack-in-the-Box and pursue his goal of becoming a doctor in the United States. Instead, he found success beyond his wildest dreams...in franchising.
  • Eddy Goldberg
  • 49,975 Reads 15 Shares
The Home Depot is the big fish in retail hardware and home improvement centers. Founded by Bernie Marcus and Arthur Blank, their first store, opened in Atlanta in June 1979. Today, Home Depot has more than 2,100 stores and 350,000 employees with annual revenues approaching $100 billion. When it comes to U.S. retailers, Home Depot's annual sales rank second only to those of Wal-Mart.
  • Eddy Goldberg
  • 59,594 Reads 455 Shares
Edible Arrangements had three stores in 2002. By August 2006, there were 527, with locations in Canada, Puerto Rico, the U.K., and the Middle East. Currently adding stores at the rate of eight or more a week, the company predicts 1,000 units in early 2007. Staffing up for growth this steep requires some serious hiring: HR, meet ASAP.
  • Eddy Goldberg
  • 3,289 Reads 2 Shares
When Doug Castino decided it was time to get out of his hugely successful restaurant design and supply business, he'd never thought of franchising and didn't know what an area developer was.
  • Ripley Hotch
  • 3,764 Reads
The Human Bean
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National marketing efforts on behalf of franchisees have always been one of the benefits of operating within a franchise system. Generally, you sign on, open a store, and you get brand support and marketing from the franchise system. That’s a great advantage, but some multi-unit operators like to take matters a step further... or even several steps further by taking local marketing into their own hands. There are many unique and creative ways for multi-unit operators to approach local marketing. Done right, it’s much more creative and involved than direct mail or coupons, and the results can be taken to the bank. Here are a few twists and tips we uncovered.
  • Kerry Pipes
  • 2,724 Reads 12 Shares
One-third of the nation's population is "minority" (U.S. Census), but only about 10 percent of franchises are minority-owned (National Minority Franchise Initiative). Or, to look at it another way, 90 percent of franchises are not minority-owned.
  • Eddy Goldberg
  • 4,791 Reads 25 Shares
Chew on the numbers presented in this article and consider the implications for you and your organization from the perspective of your customers and employees--the people you hire and the people you sell to. You will see great numbers to keep in mind when positioning your company, looking for your next location, and developing your next marketing push.
  • Mauricio Velasquez
  • 3,609 Reads 3 Shares
With well over 100 company-owned units in operation mostly on the west coast, El Pollo Loco decided that its franchise program needed to change if the company was going to handle the growth it was anticipating from 190+ franchised units. The product, flame-grilled chicken with a Mexican flair, was right for a market more interested in healthier eating.
  • Ripley Hotch
  • 2,784 Reads 3 Shares
What's the outlook for franchise finance in 2006? [i]Area Developer[/i] asked several industry veterans for their take on who's financing area developers and multi-unit operators today.
  • Eddy Goldberg
  • 2,993 Reads 7 Shares
It's every multi-unit operator's nightmare: You have a solid group of healthy performing units until you notice one beginning to decline - lower sales numbers, declining traffic, increased customer complaints, unusually high employee turnover. Or maybe you decide to take on a new unit that has been a low performer. It can be a difficult situation, but it can also provide an opportunity filled with high returns if handled properly. Here are some approaches, tips and insight to what some area developers have done to turn around poor performing units.
  • Kerry Pipes
  • 2,593 Reads 47 Shares
Junior high sweethearts and now 17 years married, Jan and Mark Mansfield have pooled their skills to achieve great success with 39 Sport Clips salons in the Dallas-Ft. Worth area.
  • Debbie Selinsky
  • 4,682 Reads 95 Shares
I have read many "How To" articles on real estate. Often, they were written by attorneys, estate agents, or learned Ivy League professors in need of publishing. They quote facts, point to figures, refer to charts, and on occasion come up with something of value to the reader. The problem, in all fairness to these authors, is that it is difficult to write about real estate without a clear and specific idea of what their readers need or are looking for.
  • Lewis Gelmon
  • 2,827 Reads 20 Shares
Capital fuels growth, and multi-unit operators know how important growth is to their success. One finance company making growth happen for many area developers is GE Commercial Finance, Franchise Finance (GEFF). With more than $12 billion in served assets, GEFF has more than 6,000 customers and 21,000 property locations, mainly in the restaurant, hospitality, branded beverage, storage, and automotive industries.
  • Joan Szabo
  • 3,151 Reads 1 Shares
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