Franchise 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 historical consolidation of franchise finance sources (local and regional banks, and other institutions) has led to only a handful of major players financing franchised companies over the last several years. These institutions, all well-known household names, have dramatically decreased leverage multiples while increasing interest rates and, most importantly, are tightly preserving capital until general economic conditions show signs of stability. As these lenders limit the flow of debt capital to franchising (or shut off lending completely), there are some trends all franchise owners should consider to ensure their financing needs are met during this recession.
- Dean Zuccarello
- 4,319 Reads 60 Shares
Sam and Louie had been in business for about ten years, operating a chain of retail clothing stores. They were 50/50 owners in the corporation. When Sam approached us he had already been working for about 9 months to try to come up with a proposal which Louie would accept for dividing up their operations.
- Nicholas K. Niemann and Andrew Horowitz, CPhD
- 6,017 Reads
Gaining access to and securing capital is more important for franchisees today than ever. Every week we talk with multi-unit franchisees about how they are growing and the kind of financing it takes for them to achieve their goals and objectives. It's an important topic and sometimes we get some very candid responses.
- Multi-Unit Franchisee
- 6,377 Reads
2008 was a big year for restaurant franchises to refranchise many of their corporate-owned units, according to a recent report from food service consultants Technomic. Top brands such as Applebee's, Pizza Hut, and KFC converted stores to franchisee operations.
- Multi-Unit Franchisee
- 3,797 Reads 60 Shares
I know few people who had money-making investments in 2008. On the flip side, I know many whose portfolios technically beat their respective benchmarks. In a rising market (like that experienced in 1999), beating the benchmark would have been considered a badge of honor--providing ample bragging rights on the golf course and around the dinner table. However, having relatively "less loss" in a down market isn't exactly considered a wonderful experience for most of today's investors.
- Carol Clark
- 3,864 Reads 16 Shares
What if there were a web-based tool that could help you create and organize your restaurants' menu quickly and accurately--while also collecting important data and ensuring consistent brand delivery? There is, and companies including Applebee's, California Pizza Kitchen, O'Charley's, Max & Erma's, and Papa Murphy's are now using the technology to create, design and order printed copies of their menus. The tool, MenuNet, is from Trabon Companies, which provides web-to-print restaurant technology and printing solutions.
- Kerry Pipes
- 4,946 Reads 126 Shares
Tony Lutfi came to California when he was 16, a Palestinian-Jordanian immigrant looking for a better life. He dreamed of growing up, getting an education, and becoming a doctor. To earn some money, he took a job working the graveyard shift at a Jack in the Box. Then fate stepped in. "The manager had a heart attack, and they promoted me. I helped the management team in the summer after I graduated from high school," says Lutfi. "It became my passion. I never went back to school, and I was promoted at Jack in the Box."
- John Carroll
- 8,079 Reads 675 Shares
You've done your research, you've assessed your own strengths and weaknesses, you've thoroughly evaluated the franchise companies that were a potential match for you, you've got your financing lined up, you've even jumped through a few hoops along the way, now comes the moment of decision. When it's time to commit and move forward with a franchise, you will be required to officially sign on. It's a big day and is often - but not always - marked by a Discovery Day held by the franchisor.
Discovery Days are often meant to serve as final meetings that are typically held at the franchisor's headquarters or other corporate facility. Often, the franchisor will cover some or all of the costs of the incoming franchisee. After all, at this point, you've both been in regular contact and things look pretty serious. These events are usually fun, informal, and characterized by high energy and positive words. It's a final chance to talk one-on-one and, if both sides are in agreement, sign on with the franchise. But keep in mind that you are not obligated to "come aboard" at this time, and the franchisor also reserves the right to not extend an invitation at the end of the day. As a matter of fact, you may even consider attending two or three different Discovery Days to help you make your final determination of a franchise concept. That being said, here are some things you should know and do to prepare for attending a Discovery Day signing.
- Kerry Pipes
- 21,235 Reads 2 Shares
Craig Horn is such a perfectionist that he'll probably never give himself a grade of "A" for performance as president and CFO of Fresno, Calif.-based JEM Management Corp. After almost a year-and-a-half at the helm of JEM, which owns 22 Wendy's and 15 KFCs, he gives himself a "B."
- Debbie Selinsky
- 5,992 Reads 1 Shares
Thomas "Tab" Broome got an early start in the franchise business, going to work for a restaurant group in Raleigh, N.C., about 30 years ago. At the time, the company ran a string of Darryl's restaurants (which looked a lot like Applebee's, only with a little more variety and flair), a group of 11 Pizza Inns, and The Angus Barn steakhouses. General Mills swooped in and bought the pizza places and family restaurant business, and Broome got a chance to work for a large restaurant corporation.
- John Carroll
- 4,505 Reads 1 Shares
Business owners often get trapped because they don't heed the messages their business sends and they don't pay attention to basic principles. The following checklist represents a clear set of danger signals - situations and issues - that have a clear and negative effect on cash flow.Take a few minutes under the harsh, cold light of reality to ask yourself how many of the following danger signals exist in your business and then evaluate carefully their implications:
- Steve LeFever and Dave Ashcraft
- 3,360 Reads 14 Shares
Craig had a sales organization which he had built but had just recently suffered a serious setback when he came to us to talk about his Transition Growth Planning. He had helped develop three key employees whom he felt were primed and ready to eventually take over and purchase the business from him. Unfortunately, he had not yet communicated his vision for these employees to the employees themselves. Shortly before he met with us, these three key employees decided that their best future would be to develop a new business on their own. So they left Craig and took their book of business with them. Much of this business had been initially developed by Craig, who had been transitioning his contacts over to these three individuals.
- Andrew D. Horowitz, CPhD, and Nicholas K. Niemann, Esq.
- 5,244 Reads 1,021 Shares
Gaining access to and securing capital is more important for franchisees today than ever. Every week we talk with multi-unit franchisees about how they are growing and the kind of financing it takes for them to achieve their goals. It's an important topic and sometimes we get some very candid responses.
- Multi-Unit Franchisee
- 5,982 Reads
Looking for a franchise opportunity in a "booming" industry? You might want to check out home health care for seniors. That baby boom blip that first appeared following World War II is now dipping into the golden years. As a result, the need for elderly care in America is on the rise and will remain in high demand for years to come.
- Multi-Unit Franchisee
- 2,910 Reads 1 Shares
Getting to know a little more about you as a prospect is one of the first things franchises are interested in. The initial franchise application process is a screening mechanism by which franchisors begin to determine your interest and qualifications.
Today, it is common to find initial franchise application forms on franchisors' websites - but most will be happy to send you one as well. This is a good stepping off point for beginning the communication process. You should not only take this very seriously, but also expect to spend some time gathering the information and completing the application.
- Kerry Pipes
- 92,371 Reads 37 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
- 3,513 Reads 3 Shares
Franchising is a great business model and with so many concepts and brands out there to choose from, research and due diligence are a big part of your assignment.
Of course you'll receive a wealth of information from the franchisor detailing and outlining almost every facet of the system and operations, but there is one other area of research that you owe it to yourself to uncover (many franchises even require that you do this).
Once you've narrowed your franchise brand choice, you'll want to talk to some existing - and even former - franchisees about what it's really like out there in the trenches every day running the business. This is part of your due diligence and it's imperatively important.
- Kerry Pipes
- 36,376 Reads 9 Shares
These are adverse times for franchise industry executives and operators. Everywhere they turn it seems they are faced with weakening markets. The "get big" strategy of the last decade, which was driven by low interest rates and growing markets, is collapsing under the pressure of shrinking consumer demand.
- Jack Mackey
- 5,815 Reads 1,014 Shares
In the late 1990s, Jeff Reetz was a head coach at Pizza Hut, helping to inspire a group of regional coaches to winning records at dozens of restaurants in eight Southwestern markets. "I helped them make their operations as successful as possible," recalls Reetz. However, like many working in a corporate environment, he dreamed of the day when he could manage his own business.
- John Carroll
- 6,400 Reads 1 Shares
Life has not been easy--personally or professionally--for Chris Haque (pronounced Hawk), who was born in Dinajpur, Bangladesh. He was only 15 when his sister came to the U.S. for medical treatment for leukemia. Thanks to his gift of his bone marrow donation, she lived three more years before the disease took her.
- Debbie Selinsky
- 7,555 Reads 2 Shares
Everybody loves lists. Whether it's a year-end "best of" list in the entertainment world or a list of business-performance rankings, we see them everywhere. Lists give us insight and a benchmark for all kinds of comparisons. Readers continue to tell us that the lists found in the pages of Multi-Unit Franchisee magazine each issue are informative--and sometimes provocative--and provide a perspective that often allows for self-assessment and operational adjustments.
- Kerry Pipes
- 10,917 Reads 1,023 Shares
Joe Drury's personal history reads like a rags-to-riches movie script. Born in Canton, Ohio, he was on his own at 14 and "chose to survive," he says. "Everything I did, I attacked it like it was my last meal." He started out working in a Wendy's. He excelled and worked his way into the corporate office, where his mentor and "best friend," Wendy's founder Dave Thomas, taught him everything he knew about running a franchise and being a successful franchisee. He rose to vice president of operations at Wendy's, but left the company in the early 1990s to form the Carolina Restaurant Group, which bought 26 distressed Wendy's restaurants. By 2000, that number was up to 100 and sales had risen significantly.
- Debbie Selinsky
- 12,033 Reads 11 Shares
What do these questions have in common? Each relates to how changes in costs, volume, and pricing affect your bottom line. By the end of this article, we'll have given you a single analysis model to help you answer these questions more accurately than ever before.
- Steve LeFever and Dave Ashcraft
- 15,622 Reads 6 Shares
Sam had developed and owned a successful retail operation during his business career. He also tried to be diligent by having what he thought was a sound estate plan executed before he died. He and his wife Sally felt they had everything taken care of. So when Sam died unexpectedly, Sally was dismayed to see the vehement dispute that developed between her two sons as to who would operate the company going forward. Apparently Sam had spoken to both of them about running the company if something happened to him, but he had failed to make this decision. Sally ultimately found her only choice to resolve the dispute was to just sell the business.
- Andrew D. Horowitz, CPhD, and Nicholas K. Niemann, Esq.
- 3,511 Reads 66 Shares
John Hotchkiss was born in Pontiac, Mich., and grew up in San Antonio, Texas. But he likes to say he "was born" into franchising.
"I started working in our stores when I was 9 years old and really enjoyed it. I learned in high school that it was a good business to own when I came home exhausted from a crazy, busy night at one of our stores and my dad was relaxing and reading a book on the back porch," he recalls. "He had 700-plus employees working hard that night making him money.
- Debbie Selinsky
- 11,376 Reads 1 Shares
Iced coffee seems to be gaining tremendous popularity as the summer months bring on the heat. And according to data from NPD Group's Consumer Reports on Eating Share Trends (CREST), servings of iced and frozen coffee drinks have shown a 20 percent increase during the first months of 2009 over the same time period last year. The company's research also found young adults between the ages 18 and 34 make up 39 percent of the iced beverage's consumption. Even the National Coffee Association has data procaliming coffee consumption among 18 to 34-year-olds has recently hit record highs.
- Multi-Unit Franchisee
- 5,323 Reads 436 Shares
Jett Mehta knew early in his life that franchising would be a good fit for him. "I grew up in the business," says Mehta. "My dad is a Ponderosa franchisee and was the largest franchisee in the country at one point. He was investing in multi-family real estate and got into the restaurant business in the '80s. When I finished school I hooked up with him." It wasn't long before Mehta drew up some ambitious plans of his own. First came a motel deal, and then the food industry beckoned.
- John Carroll
- 12,011 Reads
Gurvinder Singh is, in many ways, a "normal" 24-year-old guy. A former wrestler, he's into martial arts and spends an inordinate amount of time training in the gym. Despite his high energy level, he can go "couch potato" with the best of them, and he loves TV (his favorite show is "Lost"). He also loves cars, and jokes that the health of his business can be measured by the impressiveness of his ride.
- Debbie Selinsky
- 3,463 Reads 13 Shares
It all began with a single Golden Corral restaurant in 1997. In just over a dozen years, Guillermo Perales has grown to operate 142 franchise locations, spread across 5 brands throughout Texas and Florida. It's quite an accomplishment for this native of Mexico, and he's not even close to finished. "I'd like to double the size of my business over the next decade," says Perales. Based on his track record, it's a good bet he'll succeed. He just inked a deal with T-Mobile for some new units, and he's negotiating with a yogurt and seafood franchisor--and that doesn't even include his planned hotel project in Dallas.
- Kerry Pipes
- 10,534 Reads 1,015 Shares
Long before they met and married, Donna and Jim Wade grew up working in their respective family businesses--Donna in Southeast Texas, and Jim in a small town in West Tennessee. Both families owned restaurants and grocery stores. Their paths crossed when Jim, a University of Memphis graduate who went to work in accounting for Binswanger Glass, was transferred to Houston as a controller. She was selling copiers for Xerox, and he called one day for a quote. "Not long after he completed the purchase, we started dating," recalls Donna. "We realized instantly that we shared a passion for business."
- Debbie Selinsky
- 3,877 Reads 5 Shares
Page 148 of 162 | ^ Return to Top | Previous 146 147 148 149 150 Next |
ADVERTISE | SPONSORED CONTENT |
FRANCHISE TOPICS
- Multi-Unit Franchising
- Get Started in Franchising
- Franchise Growth
- Franchise Operations
- Open New Units
- Franchise Leadership
- Franchise Marketing
- Technology
- Franchise Law
- Franchise Awards
- Franchise Rankings
- Franchise Trends
- Franchise Development
- Featured Franchise Stories
Subscribe
ADVERTISE | SPONSORED CONTENT |