Francorp to Exhibit at The Franchise Middle East Show

Franchising Middle East expo opens
Dubai: Mon, 2 Mar 2009

Franchising Middle East (FME), the region’s leading exhibition for the franchise sector, opened at the Dubai International Exhibition Centre, with 72 exhibitors from 22 countries.

The exhibition, now in its sixth year, aims to provide an injection of business ideas to the Middle East market as international brands come to Dubai with a view to expanding across the Middle East with local partners, said organisrs.

'Never has the franchise concept been more vital to business growth than in today’s economic environment,' stated Abdul Rehman Falaknaz, president of International Expo Consults (IEC), organisers of FME.

'Franchising offers local entrepreneurs access to established brands and business models, while international players are provided with a chance to tap into new markets at relatively low set-up costs.'

Big names from Europe, Asia and the Middle East are exhibiting at the show this week, including participation from Cremeria Vienna, Subway, London Dairy Café and Tom Tailor.

Master Franchisers from Jebel Ali Free Zone is leading a delegation of international brands, many of whom are debuting at the show. These include Zerga, Bed + Bath, Padini Authentics, Trio and New Zealand Naturals.

Franchise consultants such as FranExcel and FranCorp will be on hand to offer would-be entrepreneurs advice on how to set up franchise operations in the region.

FME is the region’s only exhibition that offers a world of exciting opportunities to international franchisers to access the thriving Middle East and North Africa (Mena) market and launch their franchise concepts.

The exhibition facilitates direct communication between entrepreneurs and potential franchise buyers from the region and beyond.

The show has earned a name for providing an ideal networking opportunity for the franchising industry in the Middle East, which industry analysts have estimated is worth $30 billion.

'With the franchise industry already growing at 25 per cent per annum, the UAE and the rest of the GCC region is a fertile market for franchise companies to expand into,' Falaknaz added.

'With approximately 85 per cent of the UAE population comprising expatriates, this is the market that needs to be catered for.'

FME 2009 takes place from March 2 to 4.-TradeArabia News Service

Francorp To Present at the New York Restaurant Show on How to Franchise a Business

Francorp International Consulting firm to present on franchising and how to franchise at the New York International Foodservice Show. Francorp works closely with the New York Foodservice show to educate and assist restaurant owners and business owners in the evaluation of franchising as an expansion option.

Several Francorp clients and former clients will also be taking part in the show including Uno Chicago Grill, Buffalo Wild Wings and McDonald's . Francorp Executive Vice President Thomas DuFore will be handling the workshops and presentations during the week in New York.

Francorp is headquartered in Chicago, IL but operates out of 22 offices globally and does work for franchise companies in over 40 countries around the world.

Below are the details and featured events during the show. For more information on Francorp and Francorp's development work visit the corporate site, www.francorp.com.

Intl. Foodservice Show of NY opens today
01 Mar 2009
The International Restaurant & Foodservice Show of New York starts today at the Jacob K. Javits Convention Center in New York City. The show runs March 1-3 and features National Restaurant Association chairman Michael Kaufman as the keynote speaker. Kaufman's address, America's Restaurants - Serving our Nation, will be held at 1 p.m.

Educational sessions for the day include:
"Menu Targeting Trends: See what Generation Y and the Millenials are Eating Before they Hit Your Market," presented by Rob Harison, a chef with Princeton University Dining Services - 11:30 a.m. - 12:30 p.m.
"Fast Casual - Changing the Way America Eats," a panel discussion hosted by Linda Duke, CEO of Duke Marketing. Panelists include Paul Barron, publisher of Fast Casual magazine; Ed Frechette, senior vice president of Au Bon Pain; Louis Basille, CEO of Wildflower Bread Company; and James Strobino, SVP, new concept development, Uno Chicago Grill - 2:30 p.m. - 4 p.m.
"6 Reasons Why You Should Franchise Your Restaurant," presented by Tom Dufore, executive vice president, Francorp - 3:30 p.m. - 4:30 p.m.
Co-located with this year's event is the New York Pizza Showcase. The showcase features performances by the U.S. Pizza Team and the Hall of Fame Award presentation. Dom DeMarco of Di Fara's Pizza and chef Santo Bruno of Marsal & Sons are recipients of this year's awards.

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How to Effectively Work a Franchise Tradeshow

How to Effectively Work a Franchise Tradeshow
By: Christopher James Conner

Franchising is a fantastic way to grow a business. Many companies have utilized franchising as a way to grow their businesses across the United States and around the world. Hundreds and in some cases thousands of units have been opened in very short time periods by many different franchise brands. The basic premise, is that one company who has a good business model and understanding of how to run their type of business can teach other business owners how to be successful doing the same thing. In return the ones who learn from the credible business owners pay a franchise fee and royalty for that knowledge and training. It really can be an amazing thing when franchising successfully builds “win-win” relationships between so many different parties.
When a company decides to offer franchises of its business model, they begin to look for potential franchisees who will then open locations of their concept. It is with that principal that companies use tradeshows as a potential avenue for meeting new franchise buyers.
A Franchise sale is unique and different from most other sales. It is the formation of a long term relationship between two business parties. Unlike in the sale of a good or a short-term service, this transaction has a lasting relationship that in many franchise contracts extends to twenty years or longer. When a franchise company exhibits at a franchise tradeshow to meet new buyers they are in the first stages of forming a long partnership with those people. With that in mind the tradeshow takes on a new light. This decision has enormous consequences for both sides of the transaction. The buyers at a franchise tradeshow analyze everything about the franchisors and are carefully evaluating everything about the company. This is a very big decision for most franchise investors and they will be extremely cautious about who they get into business with. The Franchisors exhibiting at franchise shows must have their best presentation ready to go and be totally on top of their game in order to impress potential buyers.
This starts first with the booth. At any tradeshow the booth is an extension of a company’s office and home. It represents to the people at that tradeshow what and who that company is. Every piece of the booth and messaging displayed needs to be carefully and appropriately structured. There are many companies that do nothing but booth design and set up, I would recommend exploring their services. Because of the brevity inherent in a decision to invest in a franchise, the booth must look and be set up properly, it should represent a company extremely well. The best companies in the world at doing this are the commercial real estate organizations at the ICSC in Las Vegas each year. Their booths literally look like permanent office buildings they have constructed on the trade show floor. Booths to this extent can run in the hundreds of thousands of dollars and are not practical for most purposes, but it is critical to have a professional and well organized booth at a franchise tradeshow. It is also extremely important to understand how your booth and the materials will actually get TO and FROM the show. If pieces are missing when you go to set up your booth, it can ruin the structure and overall presentation.
The most critical aspect to a successful tradeshow is the Staffing. There is an old saying that describes the uselessness of an extremely expensive booth with all the bells and whistles and no one to staff the booth that cares enough to engage the prospects. Franchise buyers are wary, this is a big decision for them and they are very careful in their evaluation. That being said, most buyers do not know what they want to invest in. They come to franchise shows with the understanding that they could investigate the options and look around to meet potential franchisors. Very rarely does a buyer come to a show with an express intent to buy or meet with one particular franchise company. Keeping that in mind, it is absolutely essential that a franchise tradeshow booth be manned by aggressive and positive staff. The booth very quickly becomes an afterthought once a prospect is engaged. Then the attention is shifted to the person. Everyone at the booth should look professional, well dressed, clean shaven, positive and excited about what they have to offer. If the people at the booth are not excited about the franchise offering, why should the buyers be?
The key to a successful tradeshow for a franchise company is to leave with LEADS. Very rarely does a tradeshow attendee come to a show and buy a franchise there at the exhibition. In most cases they meet the franchisor and begin the information gathering process from that point, the franchise agreement and relationship begins in several weeks or months after continued follow up and interaction. As a result, the focus of a franchise tradeshow for the team and staff must be to generate leads. Once a prospect has been engaged and their information has been gathered, it is time to move on! Find the next potential buyer, the tradeshow floor is not a place for long conversations. It is short introductions where enough value is built to set up the next call. Good franchise tradeshow staffs will not get caught talking with vendors or unqualified prospects. They will be on their feet the entire show and will not eat or drink in the booth. You just never know when that next good buyer will walk around the corner, and if your booth staff is drinking smoothies or eating ice cream at the time, you just might miss out on a great opportunity.
After the smoke clears and the tradeshow activities come to an end, it is not time to rest. It is time for follow up. An amazing percentage of tradeshow meetings at franchise exhibitions are never followed up on. It is a travesty to spend money on a tradeshow, put in the hard hours, walk away with sore backs and knees and not give the follow up the attention and commitment it deserves. The leads that you meet at a franchise tradeshow should be followed up with the night after the meetings have happened. This may seem aggressive to some, but you are not the only company or person that the attendee met for the first time that day. It will be a very short time before they forget you even exist. The follow up should be continued until there is a substantive conversation. Ideally, a franchise company will arrange a follow up meeting, either at the location or in the form of a seminar or workshop about their franchise. These meetings are a great way to continue the franchisee’s buying process and information gathering.
Overall, franchise tradeshows are wonderful ways for buyers to learn more about franchises and meet firsthand with the owners and leaders of franchise companies. They are also extremely effective ways for franchisors to market their franchise offering and meet quality potential buyers for their franchise. If the show is managed correctly and the preceding points are taken into account, tradeshows can be the beginning of many wonderful franchise relationships!

Franchising Set for a Successful 2009

What will the new year bring for franchise growth?
Talk about getting started on the wrong foot! Could everyone in the United States be in a more cautious and precarious situation then right now in the days soon after New Years 2009? Most people are still asking, "What just hit us?" as they try to collect themselves both financially and emotionally from a devastating 2008 where over 3 trillion dollars of wealth was lost throughout the year. My guess would be that my Holiday was similar to a lot of other professionals in the United States, less presents under the tree and much less extravagant all around.
Francorp works closely with virtually every major franchise system in the U.S. and around the world. The consulting firm continually analyzes the health and future of the franchise market to better serve and implement new franchise companies.
So what does 2009 bode for franchising? How will franchising respond to the inclimate financial times and what is sure to be an interesting road to recovery for the U.S. economy this coming year?
In my opinion, 2009 will be a good year for franchising and for many entrepreneurs getting started in their own franchised businesses. Here are the reasons.
1. There are no corporate jobs out there right now. Almost all of the large corporations in America save a few niche industries have made enormous cutbacks in their labor forces. When college educated professionals were coming out of school into the job market 3 years ago, those $100k jobs were plentiful and offered a very nice alternative for new workers. In the 2009 market finding a good job anywhere will be like winning a car from the monopoly game at McDonald's, not that likely. Franchises offer a valid alternative for those either newly out of school or looking for new opportunities. The absence of work opportunities will make franchise offers that much more attractive.
2. Real Estate Opportunities. Commercial Real Estate prices are at all time lows per square foot in most U.S. markets. When times are good and the Starbucks of the world are dishing out rents at $100 per square foot in Dekalb, Illinois, its impossible for the "little guys" to keep up. Today, if you have been living in a cave and haven't heard, Starbucks is closing 700 locations as well as many other major corporate chains. This leaves ample opportunities for smaller, emerging chains in many different business categories.
3. The Flock Mentality. Most people are pretty depressed right now. People tend to base their decisions on what others around them are doing or saying. Because of this mentality many of the "pretenders" in any given industry will not be participating in 2009 to the extent they would be when the economy is booming. Looking at the investment community, the really successful investors make opposite moves of the general public. During this massive sell-off in stocks during the second half of 2009, Warren Buffett invested over $20 Billion. The franchise companies that make aggressive expansion moves in 2009 will take market share from their competitors and be in extremely good positions when the economy comes out of this slump.
With the increasing numbers of unemployed workers in the United States franchisors have a growing audience and number of potential franchisees. As more and more creative finance tools are uncovered and the federal reserve does everything in its power to loosten the financial markets, the access to capital will begin to come easier. This combination stands to fuel franchise growth at unprecendented levels in 2009 and beyond.
Francorp is the world leader in franchise consulting and development. For more information and analysis on whether a business is suited for franchising, please visit our corporate site where a multitude of free information on franchising and franchise development is available.
Francorp was founded in 1976 and has worked with over 2,000 successful franchise systems from the ground up. Francorp has four separate companies, Francorp Consulting, Francorp Capital, Francorp International and Francorp Connect. The company was founded by Don Boroian who runs and operates Francorp's four companies to this day.
www.francorp.com

Small Firms Get Local Loans

By ANJALI CORDEIRO
When Amy Loera was looking for a loan to expand her family's Mexican-restaurant business earlier this year, she applied at nine different banks. They all turned her down.
Many of the banks accepted her initial application but simply didn't take things any further, she says. Some raised concerns about the nationwide downturn in the restaurant industry in refusing her request. And some told her that if she had applied a year ago, she would have had no problem.
So Ms. Loera turned to a local lender, Arrowhead Credit Union in San Bernardino, Calif., after a business acquaintance told her the credit union had given loans to other businesses in the community. She was approved for a $643,000 loan this summer.
Ms. Loera, who runs the restaurant chain, Tio's Mexican, with her husband and brother-in-law, believes that since Arrowhead was based in the region, it was easier for her to make a stronger case about the health of her business.
Getty Images
"They were local," she says. So "they were able to see that because we are a family-owned restaurant and because we had a very good formula to keep our overhead [costs] low and prices reasonable, we are picking up the slack from [fancier restaurants] around us and are not feeling a big hit from the current economic situation."
Small businesses have been having increasing trouble getting loans as the credit markets have seized up. But some, such as Tio's Mexican, are finding that smaller community banks and credit unions are more open to offering financing. For one thing, many smaller lenders are in relatively strong financial shape because they didn't make the types of investments that got many of their larger brethren in trouble.
In addition, private local lenders may be more familiar with a region's business climate, so they are better able to look beyond national trends to base their decisions on the more immediate factors affecting an individual business.
"Often times," says Sandy Baruah, acting administrator of the Small Business Administration, "the larger institutions will rely more heavily on the credit score, whereas sometimes community banks will take a much closer look at the business plan. And especially if they are based in the region or the community, they will make a decision based on their overall comfort with the business plan and presentation."
" But still, credit ratings matter," Mr. Baruah says.
All About Cash Flow
When applying for loans, Ms. Loera says she highlighted the fact that her restaurants are based in so-called bedroom communities like Rancho Cucamonga, Calif. -- where people commute some distance to work, are strapped for time, and look for a place where they can eat an affordable family meal at the end of the day.
She presented a three-inch-thick binder filled with financial statements showing the historical results of the company's existing restaurants as well as the fact that they were debt-free. The Loeras had credit ratings in the 750 range, she says.
She also gave a projection of how much money the new restaurant would bring in over the first 12 months, and a business plan that included details such as the number of employees the new location would have and the intended menu.
Ms. Loera says all that data didn't affect the decision of the banks -- but it did Arrowhead's.
Jon Parks, a vice president at Arrowhead, says the credit union approved Ms. Loera's application because the family showed they already had experience managing restaurants and were able to prove that their existing locations were financially successful.
The fact that the new eating place is being planned as an affordable family restaurant makes it more likely to succeed in the current economic environment, he says.
'Behind the Scenes'
"We are not score-driven in the business-lending side, and choose to look behind the scenes," Mr. Parks says.
He says a strong credit score -- one above 700 -- can be helpful. But the one metric that often trumps all others is cash flow. Since it indicates the amount of cash generated and used by a business over a certain time frame, it can be a key indicator of a borrower's ability to pay back the loan.
Lenders also try to gauge how a small business will do going forward. Heath Chapman, vice president, commercial banking at Morrill & Janes Bank in Merriam, Kan., which is still lending to small businesses, says companies increase their chances of getting a loan if they give financial forecasts that look realistic.
He suggests that owners include a best- and worst-case scenario for their revenue projects and for forecasts on how they will repay the loan.
For a banker, "having all those questions already answered helps," he says.
Case by Case
Certain industries that have been particularly hard hit by the weakening economy may face added pressure to prove that their earnings are strong enough to withstand the downturn. But institutions that are still lending to small businesses tend to take each application on a case by case basis.
"Those industries that have been hit the worst -- construction, auto dealerships -- we are going to look at with a logical eye and understand what we are up against the next 12 to 18 months," in terms of the outlook for the overall industry, says Mr. Parks.
"It doesn't mean we are not going to lend to them if the numbers dictate and everything makes sense," Mr. Parks says.
He believes there could be pockets or individual businesses that continue to do well even within such sectors because they have some kind of a niche offering.
Some community lenders aren't completely dismissing even those businesses that face some financial hiccups. Mr. Chapman says he is asking small-business clients to come to him as soon as possible with financial problems or difficulty funding losses.
He says he is willing to consider lending to small businesses that face some difficulties if they have a history of overcoming problems in the past.
Write to Anjali Cordeiro at anjali.cordeiro@dowjones.com

Franchising in a Down Economy

By Jeff McKinney • jmckinney@enquirer.com • December 19, 2008
Downsized by the mortgage meltdown, Al Cooper suddenly was forced to find a new job.
Cooper, formerly vice president and director of operations at Fidelity Mortgage for five years, lost his job in November 2007 after the subprime debacle led to liquidation of the company. Cooper, a divorced dad with three boys, needed work and to stay here.
He used about $25,000 in savings last month to launch Caring Transitions, a home-based franchise that offers estate sales and other services for senior citizens and their families.
Cooper, 50, said he liked Caring Transitions because its business model was less risky than other companies and offered more potential growth with baby boomers aging.
"I also was concerned I would not be able to find another job in the corporate world due to my age and experience," Cooper said.
Welcome to the franchising world in a sour economy. Cooper joins other former executives from around the country who have decided to become franchisees.
When you buy into a franchise business, you get marketing, advertising and training support you typically do not get with an independent business, said Alisa Harrison, spokeswoman at the International Franchise Association in Washington.
She said a franchised business allows an entrepreneur to take advantage of a proven business model and a proven brand.
"In good times and bad, a franchise allows you to go into business for yourself but not by yourself," Harrison said.
And with a recession-like economy, entrepreneurs say franchises allow you to be your own boss and control your destiny.
In a weak economy, Harrison said, you have a workforce that's been laid off, and many of these people are taking their severance to start up franchises.
But potential franchisees also should be cautious before jumping into business.
Chuck Matthews, executive director of the University of Cincinnati's Center for Entrepreneurship, said one of the cons of buying into a franchise are the initial costs, including the franchise fee, investment cost and royalty payments.
But on the other hand, he said, a franchisor often will provide financial assistance to a qualified franchisee to start the business.
He said potential franchisees also should be careful with such things as restrictions on their sales territory, what items they actually can sell and shared costs tied to marketing support.
"It's critical that you do your homework before starting a franchise, particularly in a weak economy." Matthews said.
Jody Wallace, formerly a stay-at-home mother, and her husband, DeWight, opened a Pump It Up franchise 3½ years ago in West Chester Township.
The business offers a giant, indoor, inflatable playground that offers private parties for children.
The couple invested about $400,000, including franchising rights, equipment and build-out for the business. DeWight still works for a large local company.
Jody said the business allows her to do her part in generating income for the family, while using her event-planning skills to help make kids happy.
She said the franchise allows her to offer services she could not provide with her own business, including an art camp for kids and corporate team building for adults.
"A franchise offers you the support you need in one package."
Also wanting more financial security, Becky Gabbard turned her love for animals into a business. She invested $10,500 to launch a Fetch! Pet Care franchise in October.
The business provides professional at-home pet-sitting, dog-walking and other services.
"It's a very lucrative business and it provides a service people need regardless of the economy," she said.
Harrison said her group represents franchisees ranging in age from 25 to 85, and franchises that range from pet-sitting services to automotive stores like Jiffy Lube.
She said individuals can open a franchise for as low as $20,000 and high as $2 million. Harrison said the figures include upfront costs.
Harrison said the biggest challenge facing potential franchisees now is getting credit and affordable financing.
Author Jim Coen, who has been in the franchising business for 25 years, agreed.
He said the recession could be limiting the number of franchisees because of the credit crunch.
"It's not as easy today to get a deal financed as it was a year or two ago," he said.

Francorp Expands Into India

PRESS RELEASE

FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(800) 372-6244

Francorp Expanding Into India


(Olympia Fields, IL) – Francorp Chairman Don Boroian announced today that Francorp has awarded Franchise India Holdings Limited the Francorp India franchise.

The contract was signed between Don Boroian, Francorp India U.S.A. Representative Atul Bhatara, and President of Franchise India Holdings Limited Guarav Marya.

“Franchise India Holdings Limited has already paved the way with franchise expos, franchise and business publications, and franchise consulting in India,” shares Boroian. “We are honored to have them as part of our team.”

Franchise India Holdings Limited has been Asia’s leading integrated franchise consulting company since 1999, with an authority on franchising, licensing, retailing, real estate, and marketing. With its strategically formed divisions, Franchise India Holdings Limited has created its own niche as the pioneers of the franchise industry and a small business authority in India.

According to Marya, “Francorp India will help boost investor confidence by providing professionally managed franchise consulting and development support, all under a common one-step gateway to facilitate entry into India and vice-versa.”

India is home to over a billion people, with a flourishing class of urban consumers possessing considerable amount of disposable income. With the continued growth of the economy, India has strengthened its claim to be a viable and beneficial destination for a foreign franchisor.

Since its beginning in the early 90s, the franchise industry has grown in leaps and bounds in the Indian sub-continent, and there is still much to explore. Based on the successful growth of many franchise brands in India, the future of franchising in India is highly promising.[1]

This promising future of the Indian franchising industry is backed up by an equally powerful market report that shows statistics of this thriving sector.
According to reports, for the past five years the Indian franchise market has recorded a steady growth of 30 to 35% per annum. Also, the annual turnover of the Indian franchise industry soared to 3.3 billion USD and is projected to soar higher in the coming years.[2] “We are very excited about the opportunity to enter the Indian market at a time when the concept of franchising is experiencing tremendous growth and acceptance,” noted Boroian.

For over 30 years, Francorp has been the leader in the franchise consulting industry. They have assembled a team of experts whose talents are coordinated seamlessly to create customized materials that fit the specific needs of their clients. As an international company, Francorp has the global reach to help clients expand their business, with a local presence to adjust their business to fit each country’s unique culture and laws. Headquartered in Chicago, IL, Francorp has assisted more than 10,000 companies for expansion, and has developed more than 2,000 franchise programs throughout the U.S., Japan, South Africa, Middle East, Central America, Malaysia, Philippines, Argentina, Chile, and Mexico.

For more information, visit www.francorp.com or call (800) 372-6244.

# # #
[1] Franchiseek, Indian Franchise Statistics and Information. November 17, 2008, available at www.franchiseek.com.
[2] Franchiseek, Indian Franchise Statistics and Information. November 17, 2008, available at www.franchiseek.com.

Franchise Financing: Keys to Success in the Current Economic Climate

http://www.franchisewire.com/article.php?id=3223

October 23, 2008 - New England Franchise Association (NEFA) will present " Franchise Financing: Keys to Success in the Current Economic Climate" on Tuesday, November 18, 5:30 p.m. at the Marriot Hotel, 1000 Marriott Drive, Quincy.
The panel discussion will outline how successful franchise development requires franchisors to stay up to date on all financing options available. Expert panelists include Anne Rice Hunt, Finance Chief, U.S Small Business Administration; Barbara Arena, CIT Small Business Lending, Senior Regional Account Manager; Bill Rowland, Equity America Mortgage Services; Itamar Chalif, Atlantic Capital Solutions; and Tom McDonald, IRA Rollover Solutions. The discussion will be moderated by Constantine (Dean) Fournaris, Partner, Wiggin and Dana.
In today’s economy one of the biggest concerns of a franchise system is how and where to get capital for franchisees to start their business or ways for franchisees to keep it running or to finance their growth. This panel discussion is valuable for each member of your franchise development team as well as for existing franchisees, or prospective franchisees interested in expansion. You will learn how banks and other lending organizations evaluate franchisee loan applications, and the types of funding that is available, even in these unsettled financial times.
The evening includes a cocktail and networking session beginning at 5:30 PM, dinner at 7:00 PM, and then the presentation. The entire business community is urged to attend. Membership in the NEFA is NOT required. Reservations are required. Registration Fee is $60 per person and includes dinner. All NEFA Members get $10.00 off.
For information regarding NEFA membership visit www.nefranchise.org.
About NEFA:
New England Franchise Association (NEFA) is the trade organization for franchisors and franchisees in the region, with over 150 members. The mission of NEFA is to bring franchise executives, franchisees and vendors together to share ideas for success.
Franchising more than ever before, has an unprecedented opportunity to make a major positive impact on the future New England economy. In a 2001-05 study conducted by PriceWaterhouseCoppers on behalf of the International Franchise Association (IFA) found that in New England over 875,000 jobs area result of franchising, the total output is over 100 Billion dollars a year, and there are over 35,000 franchise establishments in the six New England States.
To reserve your seats, please contact New England Franchise Association via the organization's website www.NEFranchise.org, email: info@NEFranchise.org, or by calling NEFA Executive Director Jim Coen, (617) 469-3002.

A Buffet of Franchise Growth: Stevi B’s Serves Up Huge Helpings of U.S. Territories

http://atlanta.dbusinessnews.com/shownews.php?newsid=169176&type_news=latest

Atlanta - Marietta, Georgia (October 21, 2008) – A proven restaurant executive who helped drive strategic growth for worldwide icons McDonalds and Arby’s, has taken the reigns at Stevi B’s to put the emerging family pizza buffet concept on the national map. Jordan Krolick, president and CEO of Stevi B’s, America’s leading value oriented family pizza buffet franchise concept, has designed a growth strategy that aims to more then triple the chain’s size over the next five years, moving outward from its core of restaurants in Atlanta. With a strong mix of both franchise and corporate owned restaurant locations, the strategic expansion calls for the system to exceed 100 units by 2013. “Now more than ever, families are looking for ways to get out and have a good time without breaking the bank at mealtimes,” said Krolick, who, before getting into the restaurant industry, spent 10 years as an attorney, CPA and eventually partner in a Chicago-based investment banking firm. “Stevi B’s is growing with carefully selected franchisees at a pace that allows us to best serve our franchisees and maintain the distinct restaurant environment that defines our franchise concept.” The planned growth of Stevi B’s builds upon the chain’s momentum established in 2008. Since the beginning of the year, Stevi B’s has signed development agreements to add 18 new locations to the franchise system. Included in the agreements is a pair of multiunit deals with experienced restaurant operators which will add a total of 13 new restaurants along Florida’s eastern and southern coasts during the next three years. Already in 2008, new Stevi B’s franchise locations have opened in Gadsden, Alabama, Cleveland, Tennessee and Chesterfield Township, Michigan. Before the end of the year franchised units are slated to open in Cartersville, Georgia and Southaven, Michigan, and in early-2009 in Winder, Georgia, Gainesville, Georgia and West Palm Beach, Florida. A new corporate-owned restaurant in Columbia, South Carolina is also slated to open before the end of this year. “We are attracting experienced restaurant operators with proven success in franchising,” said Krolick. “Stevi B’s has built a great reputation with consumers and as word spreads we are experiencing tremendous growth.” With original menu items such as Loaded Baked Potato pizza and a warm décor featuring stonework and granite countertops in an open kitchen environment, Stevi B’s breaks through the blasé of buffets with an exciting fast casual concept. Creative pizzas include the Cheeseburger Deluxe, Chicken Fajita, Macaroni and Cheese and more, and are complemented with a fresh and full salad bar and enticing dessert selections. Buffet prices for adults typically vary from $5 to $5.79 and from $2.99 to $3.29 for children. “Stevi B’s lets mom be the mealtime hero. When the decision is made to go to Stevi B’s, the whole family is high-fiving mom,” added Krolick. “Our value-driven offerings provided in a welcoming environment for adults and children keep customers coming back, often for multiple meals a week.” Stevi B’s prototype store design reflects the chain’s commitment to fast casual dining, blending quick service with a casual dining atmosphere complete with multiple flat screen televisions. For adults, each Stevi B’s offers a laid back environment ideal for lunch and dinnertime discussions, and for children, the experience includes a retreat from the norm with a fun game zone. Each store’s unwavering commitment to the community it serves further defines the Stevi B’s brand. On a nightly basis, all Stevi B’s locations offer to donate a percentage of sales to local school groups, community and religious organizations, local athletic teams and others. Plus, Stevi B’s provides Peel-A-Deal cards to youth groups at steep discounts which are resold as a fundraiser. About Stevi B’sStevi B’s, a national pizza buffet restaurant franchise, was founded in 1996 in Atlanta. Recently purchased by Argonne Capital, an Atlanta private equity firm focused on growing restaurant and retail companies that are market leaders with strong growth potential, Stevi B’s currently has 25 franchised and five company-owned locations in six states throughout the United States. With distinctive pizzas such as Loaded Baked Potato, Chicken Fajita, Cheeseburger Deluxe and Spinach Alfredo served fresh and at a great value in an atmosphere that is fun for adults and children, Stevi B’s is primed for growth throughout the United States. For more information, please visit www.SteviBs.com or contact Stevi B’s by e-mail at info@SteviBs.com.

Yum discusses brands' product plans

http://www.nrn.com/breakingNews.aspx?id=359216&menu_id=1368

LOUISVILLE, Ky. (Oct. 9, 2008) Officials at Yum! Brands Inc. said the company is looking to expand on successful product introductions at its brands, including new varieties of Taco Bell's Frutista Freeze and more choices in Pizza Hut's Tuscani pasta line.
Yum executives spoke to investors in a conference call Wednesday after reporting a 4.4-percent increase in net income for the company's Sept. 6-ended third quarter.
David C. Novak, Yum's chairman and chief executive, described the Frutista introduction at Taco Bell as "an unqualified success" and hinted that the frozen beverage platform would help the Mexican chain snag more afternoon snack traffic and break into the dessert category. Taco Bell in May debuted the Frutista Freeze in two flavors, strawberry and strawberry-mango, and is already promoting a creamier version on its website. The new versions are called Triple Berries 'n Crème, Strawberries 'n Crème and Mango 'n Crème.
At Pizza Hut, Novak said the Tuscani pasta line has fetched $500 million in sales, and he said the company "has a whole line of different kinds of pastas" that it will introduce over the next two years. He did not disclose specifics. The current line includes Meaty Marinara, Creamy Chicken Alfredo and Premium Bacon Mac 'N Cheese.
For its third quarter, Yum said a 4-percent increase in corporate same-store sales at domestic locations was led by strong performances by Taco Bell and Pizza Hut, but dragged down by negative results at KFC. Novak said he believes the national rollout next year of the Kentucky Grilled Chicken line would improve sales at that chain.
Yum officials also disclosed plans for new menu items at its overseas restaurants. In China, KFC is trying out fish and beef products, including a Szechwan beef wrap, and Pizza Hut units, which are positioned as casual dining, are starting to serve afternoon tea and desserts. Elsewhere overseas, KFC is expanding its Australian test of Crushers, a frozen beverage in mango, coffee and cookies-and-cream flavors.
The world’s largest restaurant company, Yum oversees more than 35,000 restaurants in more than 100 countries and territories. Its other brands include Long John Silver's and A&W All American Food.

Francorp Client - American Prosperity Group

American Prosperity Group, the First Retirement and Estate Planning Franchisor, Exceeds First-Year Franchise Goal
Last update: 11:19 p.m. EDT Oct. 9, 2008

WAYNE, N.J., Oct 09, 2008 (BUSINESS WIRE) -- American Prosperity Group (APG), headquartered in Wayne, NJ, is the first and only retirement and estate planning organization to be franchised. Nine APG franchises are now operating in cities in the eastern United States, two more than the company's 18-month objective. More are planned.
APG is the creation of Mark E. Charnet, a Certified Annuity Specialist. For over 26 years, he has been helping people solve their individual problems of successful retirement and estate planning. APG does this by implementing those parts of a total retirement and estate planning system needed to meet each client's needs.
The APG system has been so successful for over a decade that Mr. Charnet has turned his precepts and product offerings into the first-ever retirement and estate planning franchise. The current franchises are operated by:
-- Bill Romeo, Matthews, NC
-- Dawn Sarnoski, Closter, NJ
-- Shane Couturie, Bryn Mawr, PA
-- Peter Murphy, Santa Fe, NM*
-- Mark Timmick, Ellicott City, MD
-- Mike Linker, Totowa, NJ*
-- Kevin Lynch, Belle Mead, NJ
-- Ari Cohen, Bergenfield, NJ*
-- Holly Sikora, Sicklerville, NJ*
"Now, we are offering additional franchises," Mr. Charnet said. "The franchisees we seek are ideally situated in metro or suburban areas with average or higher senior populations. APG is a relatively low-overhead franchise, with an investment under $100,000. Our present franchisees are well on the way to paying off their franchise investment--and some have already done so within their first few months of operation.
"What we look for in a franchisee is entrepreneurial spirit. Financial know-how is not as important as the ability to be a good presenter, speaking to small and medium-sized groups. Empathy--the talent for caring about peoples' needs--is a must, as is a good sense of organization. This is an excellent opportunity for those with sales experience, but that experience need not include finance."
For franchisees, Mr. Charnet has fine-tuned APG's systems, products and operating procedures developed over his years of experience. Now, others can present his proven system to good effect. "It's all worked-out, step-by-step," he said. "Also, every franchisee receives complete coaching, supervision and assistance from me and my staff. The APG precepts are teachable, portable and repeatable--the keys to any successful franchise."
As for success, Mr. Charnet is a sterling example. During and after college, he built one very successful career in insurance sales, only to lose everything due to the insurance company's dramatic management change. Beginning again with virtually nothing, he developed the proven retirement & estate planning methods taught exclusively by APG. In aiding others in building and retaining income, he has built lasting success for himself.
Those interested in an APG franchise should contact APG at 1-973-831-4424. On the Web: www.apgfranchise.com
*(offices scheduled to open within 90 days)
SOURCE: American Prosperity Group Serpente & Co. Inc.
Joe Serpente, 856-275-6931

Francorp Client - Plains and Prints

Plains & Prints sets sights on Asian market
Plains & Prints was established in November 1994 by Roxanne and Erickson Farillas. Then known as Prints & Plaids, the first boutique opened in Shoppesville, Greenhills. The company’s first products were lace-edged towels and basic polo shirts.
Later on, the brand ventured into women’s apparel, carrying the concept of classic and stylish, which became a hit with teenagers and young professionals.
In 2002, Plains & Prints took on Gretchen Barretto as endorser and this move brought the brand to the national consumer’s consciousness.
Plains & Prints has strengthened its position as a major player in women’s apparel by providing stylish and classic apparel. The present product line includes shoes, handcrafted bags, belts, Bread and Butter (basic tees), Down Under (underwear), Eve (eau d toilette), and Intuitions (body spray).
In terms of brand recall and market share, Plains & Prints ranks among the top 5 local women’s apparel brands. The brand has become synonymous with quality clothing for women with style.
Plains & Prints offers franchise opportunities to entrepreneurs who wish to own and operate their own Plains & Prints boutique. Plains & Prints has been franchising since November 2002 and has franchised outlets in Cebu City, Bacolod, Iloilo, Davao City, Cagayan de Oro, Baguio, Dagupan, Cabanatuan, Marilao and Valenzuela.
Plains & Prints was awarded the Most Promising Filipino Franchise (retail category) in the 2004 Franchise Excellence Awards. The company’s franchise program was developed by Francorp, a leading international franchise consultancy firm with offices in the Philippines, Malaysia, Japan, United States and South America.
The brand now embarks on a bold expansion move that, hopefully, will introduce the Plains & Prints concept to the Asian market.
Leading the expansion plan is the introduction of new collections that highlight the creativity and ingenuity of local fashion designers. Plains & Prints has collaborated with designer Rajo Laurel for its high-end R.A.F. (Rich and Famous) line.
Roxanne explains that the new collection highlights Laurel’s avant-garde approach to fashion, featuring designs that incorporate architecture, romance and luxury.
Another major leap for Plains & Prints is its choice of Thai-British model Paula Taylor as its image model.
“With Paula as the model of our new campaign, we are confident that Plains & Prints will be given more exposure globally and hopefully, discovered as a brand that provides a new twist on classic fashion,” says Roxanne.
Next on the brand’s agenda is opening stores in key cities in Asia, starting with Thailand and Malaysia. The brand has 49 stores in the Philippines, including the newly opened branch at the fifth level of the Shangri-La Plaza Mall. Aside from its Asian expansion, Plains & Prints also wants to open more branches in prime locations in the country.
“Despite stiff competition from international brands, Plains & Prints still emerged as a top local brand which Filipino women prefer,” says Roxanne. “The next step is really to move forward and introduce Filipino fashion to the world. Now that we’ve been given an opportunity to do so, we have big plans to make our mark in the international fashion community.” Dinna Chan Vasquez

www.francorp.com

www.francorpconnect.com

What's Up Dog! to Expand Through Franchising

What’s Up Dog to Expand Through Franchising
San Francisco, CA, October 01, 2008

What’s Up Dog has announced they will be launching an aggressive expansion program through franchising.For over five years, What’s Up Dog has offered the hot dog enthusiast a variety of gourmet hot dogs and sausages within the San Francisco area. Their tantalizing menu consists of old carnival favorites like the corn dog, chili cheese nachos and garlic fries. But the eclectic selection of frankfurters and sausages (“Lemon Chicken”, Veggie Tofurky”, “Kielbasa”) has reinvented an American favorite.Americans eat an estimated 20 billion hot dogs a year, with 150 million consumed on Independence Day alone. We love hot dogs so much that the U.S. Chamber of Commerce actually dubbed July as National Hot Dog Month over 50 years ago.It was this shared love for hot dogs that inspired What’s Up Dog owner King Lei to open his own hot dog shop. To ensure that he only offered the best, he visited hundreds of hot dog stores from Los Angeles to New York. And his research resulted in rave reviews. “People love our name and products,” remarks King.This response has led What’s Up Dog to Francorp, the world’s leader in franchise consulting, to assist them in the development of their franchise program.

For more information about What’s Up Dog, call (415) 864-3707or visit www.whatsupdogs.com

###

Franchising - The #1 Way to Expand Your Business - Francorp Partner

Business Insight
FRANCHISING – The #1 Way To Expand Your Business
by Kent Boxberger
I was talking with a client of mine the other day, who has 2 company owned locations in the home services business, and he asked me how to grow his business without borrowing lots of money from his bank and hiring more employees. I told him that most businesses who want to grow successfully, have to find extra money and then fund themselves into their growth, to make enough profit to service the debt, which on average takes 2-3 years to turn a profit on the expansion. His next question was, “How can we do it quicker than 2 or 3 years?” The answer is Franchising.
In today’s business climate, companies are looking for more ways to expand their sales and operations. It takes more money and more people. Franchising your business, solves both of those challenges. By franchising your business, you solve the problem of borrowing or using your own money, by partnering with others who invest their money in your business model. Secondly, you solve the personnel problem, because your partner (franchisee) hires and manages the staff to run the business. Picture for a moment, your business having 50 or more locations. Can you fund those locations and employ all those people? In addition, how long do you think it will take to establish those 50 locations? Even if you can, still there’s the risk, red tape and time involved in running the operations successfully. Franchising makes having those 50 locations a much easier task. You don’t fund those locations yourself, nor do you manage and hire the employees, plus the time establishing those 50 locations, is greatly reduced and accomplished with much more ease.
What types of businesses are candidates for Franchising? There are literally thousands of businesses that are franchised and growing. Historically, we think of fast food businesses like McDonald’s, Burger King etc., however, restaurants is only a small percentage of the types of businesses that franchise. Companies such as H&R Block, Ace Hardware, John Deere, Payless Car Rentals, as well as services businesses in the healthcare, medical, advertising, education, high tech, automotive, data processing, financing, real estate, business services and home services arena’s, have also franchised successfully.
To Franchise your business, there are typically only a few requirements to get started. The concept of franchising, is about taking a proven business model that is profitable and duplicating that model successfully. Start-up businesses are not candidates for franchising, due to the fact that there is no financial concept that is proven, nor any history of success. People who buy businesses are looking for a proven system of success that they may invest in, thereby eliminating most of the flaws, risks, mistakes and learning curve that comes with starting a business from scratch. This becomes increasingly important when you consider that according to government statistics, 95% of all start-up businesses in this country fail. This pales in comparison to franchises, which have a 70% record of success.
From an investment standpoint, you have a 70% chance of business success when buying any type of franchise, as opposed to a 5% chance of success, when starting a business on your own from scratch, regardless of how good your idea is, how much money you have or what experience you may bring to the table. Franchises are regulated and have strict requirements by the FTC (Federal Trade Commission). They’re also regulated by most states, which helps protect the Franchisor and Franchisee to bring about the likelihood of more success. Businesses also consider Licensing their business model, as a way of expansion, but in many cases these licensed companies are operating illegally as a franchise. There are specific differences between Licensing and Franchising, that even many good attorneys misinterpret. As with any franchise, still there are risks that accompany any business, no matter what factors are in place – there are failures, as well as great success stories.
The franchise industry concept has been especially strong and growing rapidly, since the 1970’s. The reason, is that it affords people the opportunity to be in business for themselves, run their own ship…………..and have a partnered foundation of associates to work with, who’ve claimed the experience to be successful. If you want to expand your business in the quickest and most economical way possible, then maybe it’s time to consider Franchising. There are hundreds of topics to consider before you do, so be diligent in getting the professional advice required, from franchise experts who have years of experience and success under their belt. Your long term success depends on it.

MarketCorp International, Inc. “The Franchise Experts” ww.MarketCorp.net 678.462.8646 Atlanta, GA USA

Entrepreneurs in Today's Economy

Inside Entrepreneurship: Turmoil likely to make angels cautious
By SUSAN SCHRETERSPECIAL TO THE P-I
Q: Getting investors for my startup is essential to moving forward. In your opinion, will the recent roller-coastering of the stock market and the economy in general make finding independent investors more difficult? Or are potential investors looking for alternatives to the stock market?
-- M.P., Seattle
A: Entrepreneurs usually are a highly optimistic and confident breed. But judging from the letters I've received this week, their mood has become more cautious.
Prospective entrepreneurs are questioning the timing of their startups. They ask, "Should I bother to start up in this economy?" or, "If I work at my startup on weekends, can my employer make any claims on my technology?"
I like this wry commentary best: "Susan, since banks and investors have turned me down, can you give me the government bailout address to rescue my failing business?"
While it's clearly too early to make many useful forecasts, I do believe that recent financial market turmoil will affect the psyche of independent angel investors for some time to come.
Unlike venture capital fund managers, angel investors are not paid a salary to invest in entrepreneurial companies. It is a discretionary hobby to them. Further, they invest their own money rather than act on behalf of other institutional investors. This means that the amount of money they budget for new venture deal investments is directly related to the value of their retirement accounts, real estate and security portfolios. If their liquid net worth has plunged dramatically, then expect angels to write fewer checks to young companies.
This is not good news for most startup entrepreneurs, who usually are not far enough along in business development to qualify for venture capital or more traditional asset-based financing offered by commercial lenders.
During the past few days, I've spoken to angel investors from around the country. The most common sentiment expressed by them was a need to get a better handle on the stock market, the overall economy, the fiscal demands on the U.S. government and the value of their portfolios. More active angels suspected that they would have to allocate more money to existing investments that might struggle during a slow economy rather than invest in new opportunities.
Here are some likely responses from venture investors.
Expect angels and venture capitalists to use the current market conditions as an excuse to bring down company valuations. Investors will want to build in "more room" to make money by starting with the lowest valuation possible.
Expect investors to demand more onerous liquidation multiples and preferences like they did in the aftermath of the dot-com meltdown.
Expect investors to favor startup companies that can reasonably reach cash flow break-even sooner rather than later. First-round technology development investors will worry that entrepreneurs may never secure second-round investors needed to finance product introductions. Entrepreneurs will have to look further down the road in developing their financing strategies.
Expect investors to favor entrepreneurs who have a really practical answer about how investors will ultimately get their money back. IPOs will get tougher. Corporations will become more selective in their buyout activities.
To your last question, will angel investors eventually view privately held, high potential companies like yours as a better deal than the seemingly more volatile public markets? Certainly it's a good talking point.
You can strengthen your appeal by looking for every possible way to reduce the perceived risk associated with investing in your company. This means pursuing operating partners to speed progress. It also means lowering your cost structure and checking the credit-worthiness of customers. Like investors, you, too, have to protect every penny you have.
Susan Schreter writes about startup planning and small-business financing for the Seattle P-I. She has an investment banking and buyout background and serves as a coach to entrepreneurs and consultant to corporations. Find more Inside Entrepreneurship columns at seattlepi.com/venture. Send questions about small-business management or raising money for your business to susan@insideentrepreneurship.com or by mail to Inside Entrepreneurship, c/o Seattle P-I Business Section, 101 Elliott Ave. W., Seattle, WA 98119.

Blockbuster to Stick to the Bricks

Blockbuster sticks to the bricks
06:29 PM PT, Sep 23 2008
The instant gratification of video-on-demand and the novelty of movies by snail mail may get many a consumer more excited than an old-fashioned trip to the corner store, but for Blockbuster Inc., the store is still the thing.
The Dallas-based video rental and retail chain, which closed hundreds of stores over the last year, plans to revamp many of its remaining outlets, expand its movie and game offerings, and add more rental and download kiosks.
But it’s still keeping an eye toward increasing Internet-based downloads through Movielink, the digital movie site it acquired last year, and attracting more movie-thru-mail subscribers. Critics say stores are passé, but Blockbuster notes that its mail customers also have the convenience of returning or trading-in their mail-ordered movie at stores — something which Netflix can't do because it doesn't have brick-and-morter outlets (just in case an Ingmar Bergman flick showed up in the mail when you were more in the mood for "Sex and the City").
“Most people read a lot of interesting headlines, and we enjoy the headlines, about Netflix, Amazon, Apple, so forth,” says Tom Casey, Blockbuster’s chief financial officer, during a presentation at Thomas Weisel Partners’ Annual Consumer Conference on Tuesday. “But what you need to understand is we really have a market that we address that’s nearly $36 billion in size. Video-on-demand is actually pretty small.”
That $36-billion figure is the total market for DVD's and game sales — where Blockbuster has been expanding — and movie rentals. Blockbuster has a 40% share of the $9.6 billion movie rental business, of which in-store rentals account for more than half the total revenue, followed by mail subscription and video-on-demand, according to the company.
Blockbuster reported a loss of $44.7 million, or 23 cents a share, in the second quarter, ended June 30, compared to a $34.2 million loss in the same period last year. But same-store revenue rose 9%, and the company reaffirmed that it expects a profit for the year.
“Traffic tends to transfer to a nearby Blockbuster whenever they close a store,” says Arvind Bhatia, an analyst at Sterne Agee & Leach, Inc., adding that he estimates a “normal attrition” of about 150 store closures in the U.s. this year and next. Blockbuster now has about 8,000 stores worldwide.
"Financially, they're doing well," he adds.
Blockbuster plans to increase its stock of rental and retail movies and games at each store as well as pay for store refurbishing, from paint and carpeting to adding Blu-ray kiosks. Some stores have already undergone a broader remodeling, complete with gaming stations and cafes.
“Too many of the stores still look like the old blue-and-yellow 90s VHS stores,” Casey says.
And analysts think Blockbuster still has life left in its stores — particularly on the retail market — before the Internet or video-on-demand becomes the dominant delivery system.
“We all have the idiot friends who have collections of hundreds of DVDs. Nobody is going to collect 100s of DVDs on their hard drives,” said Wedbush analyst Michael Pachter. “And the movie studios don’t make as much" on rentals or on-demand services, where the profit margins are smaller.
Pachter notes that as long as Blockbuster gets customers in stores and studios release movies on DVD before they allow video-on-demand and streaming online, the company will thrive.
“Blockbuster says, why not buy a movie while you’re in here? What else can they sell? Popcorn, video games, maybe a TV or an iPod,” Pachter said. “They’re merchandising better, and that’s absolutely working.”
— Swati Pandey

Sonic Franchise Operations outperform Company Owned Stores

Sonic slips on same-store sales outlook
Associated Press 09.24.08, 5:37 PM ET
NEW YORK -
Several analysts trimmed their fourth-quarter profit estimates for Sonic Corp. on Wednesday, after the drive-through restaurant chain said preliminary fourth-quarter same-store sales were "slightly negative."
Shares of Sonic fell 53 cents, or 3.3 percent, to $15.41.
After Tuesday's closing bell, Sonic said same-store sales were positive nationwide for the fiscal year ended Aug. 31, but partner drive-in sales declined for the fiscal year and in the fourth quarter. Same-store sales measure sales at stores open at least a year and are considered a good gauge of ongoing retail health.
In the fourth quarter, Sonic said same-store sales were positive at franchised drive-in locations, but same-store sales for partner drive-ins were "significantly negative," causing slightly negative same-store sales systemwide. Partner drive-ins are locations where the company owns a majority interest.
Oklahoma City-based Sonic is set to report fourth-quarter results Oct. 16, and analysts polled by Thomson Reuters expect 35 cents per share in earnings for the fourth quarter.
Stifel Nicolaus & Co. analyst Steve West trimmed his quarterly profit forecast by a penny to 34 cents, and expects Hurricane Ike and input costs to weigh on fiscal 2009 results. West said the impact from Hurricane Ike is much worse than previously expected because of massive power outages.
West, however, kept a "Buy" rating on the stock, expecting new products to drive sales and boost margins.
Meanwhile, KeyBanc Capital Markets analyst Lynne Collier, who rates the stock "Hold," also trimmed her fourth-quarter estimate and noted higher commodity costs and softening consumer spending. The company has significant exposure to rising beef and dairy costs, Collier said.
Collier also said a happy hour promotion increased customer traffic, but ended up hurting the average check.

Francorp - Franchise Sales Strategies

Franchise Sales Strategies:
Christopher James Conner
Vice President
Francorp Consulting

As the Franchise World continues to move towards technology like all other industries, more and more sales processes become automated, it becomes easier and easier to forget and lose the most critical ingredient of what has made salespeople successful for centuries, "Building Relationships."

People still buy from people they like and that they can relate to. Technology can't create this, it can only enhance what we as salespeople do during the process. To most potential customers, all the "fluff" becomes white noise and people don't read or listen to mass emails and bombardment of marketing materials.

It is up to the franchise sales professional to create a feeling of caring for the potential franchisees future. The sales process should evoke a sense of "mutual exploration" for both the candidate and the sales person.

Initial contact for a franchise sales person needs to be through the phone. I have never awarded a franchise solely through email contact. This is an enormous decision for most franchise buyers, a cold email and information requests don't convey very much sincerity to a prospective franchisee. Most franchise buyers are refinancing homes or closing out 401k's to make this possible, they must feel very confident in the franchise sales person to pull the trigger on a decision as big as this.

It is important for the franchise sales person to combine emails with phone calls, the prospect should know your voice as well as personal background about the franchise sales person....after all, isn't that what "building a relationship" is all about!?! The franchise sales person should think of themselves as a consultant, work with the franchisee by taking a personal interest in their success.

The initial phone call should be to set an appointment, don't jump into the sale! A franchise sale sis very different from most sales where you are providing a traditional good or service. This is a partnership we are selling now. The first call should be an explanation as to what the next call will cover.

The first phone appointment is about the customer! Remember you should be doing no more than 25% of the talking! If you find that you are doing most of the talking during the call....it probably isn't going very well. Key points to cover during this appointment, timing, why should they be looking at franchising now? Background, what is your level of interest in franchising and why? Goals, what would you like to achieve through franchising? Where, what locations would you like to consider opening the franchise? When it comes down to it, people really don't care about how smart you are until you show concern for their well being and interests.

Here is an acronym we use at Francorp when describing franchise sales. The franchise sales person should strive to be a "Star".

S - Support - Family, Friends and Peers
T - Timing - Now is the right time for Franchising
A - Assets - Building wealth through owning your own business.
R - Recreation - It's fun and exciting!

Building a relationship with a potential franchisee unlocks unbiased information from a franchise candidate, this allows the franchise sales person to make legitimate recommendations. Typically the most guarded area of information will be in regards to financial well being - franchise buyers will not be up front about financial facts until they fell comfortable with a franchise sales person. It is impossible for you as the sales person to provide valuable assistance for them without accurate information! Build the relationship first, then the information will be unbiased and your recommendations will be authentic.

Franchise buyers, much like any other buyer want to feel that they are getting involved with people who are like them. A big part of the franchise sale is drawing connections with the buyer and making examples of existing franchisees who are similar to the prospective buyer. Throughout the sales process, it is important for franchise sales people to remember that the franchise opportunity they are selling is just that....an opportunity. People who are awarded the right to operate as a franchisee will unlock their financial future, this should be about helping people!

www.francorp.com

www.francorpconnect.com

Is Franchising For Me? SBA Workshop

WORKSHOP INTRODUCTION
IS FRANCHISING FOR ME?
WORKBOOK

Training Module - 1
Workshop Objectives
By the end of this workshop, you should be able to:
* Define franchising.
* Determine whether franchising is the best business option for you
- evaluate your skills and experience
- identify your reasons for purchasing a franchise
- personal characteristics
- personal conditions
- experience.
* List
- advantages of franchising for both the franchisor and franchisee
- disadvantages of franchising for both the franchisor and franchisee
* Identify franchisor's responsibilities.
* Determine what is contained in a franchise package.
* Understand the franchise contract
- legal implications
- your rights and obligations as a franchisee
- financial statements, contracts and receipts
- trademarks and copyrights
- restrictions on goods and services to be offered by franchisees
- renewal, termination and sale of the franchise
____________________________________________________________________________________________
_
BUSINESS FORMATTING - WHAT IS FRANCHISING?
Deciding whether or not to go into business is a very important step in the business start-up process for new and
potential small business owners. Each year, thousands of entrepreneurs and potential entrepreneurs are faced with
this difficult decision. Because of the risk and the amount of work involved in starting a new business, many new
and potential small business owners choose franchising as an alternative to starting a new, independent business.
Although the success rate for franchise-owned businesses is significantly better than the success rate for many
independent businesses, there is no formula to guarantee success. One of the biggest mistakes you can make is to
be in a hurry to get into business. That's why it's important to understand your reasons
for going into business, and to determine if owning a business is right for you.
If you are concerned about the risk involved in a new, independent business venture, then franchising may be the
best business option for you. Remember, however, that hard work, dedication and sacrifice are key elements in the
success of any business venture, including franchising.
WHAT IS FRANCHISING?
A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or
advertising symbol and an individual or group seeking the right to use that identification in a business. The
franchise governs the method of conducting business between the two parties. Generally, a franchisee sells goods
or services supplied by the franchisor or sells goods or services that meet the franchisor's quality standards.
Franchising is based on mutual trust between the franchisor and franchisee. The franchisor provides the business
expertise (i.e., marketing plans, management guidance, financing assistance, site location, training, etc.) that
otherwise would
not be available to the franchisee. The franchisee brings to the franchise operation the entrepreneurial spirit and
drive necessary to make the franchise a success.
While forms of franchising have been in use since the Civil War, enormous growth has occurred in franchising
only recently. By the end of 1985, 500,000 establishments in 50 industries achieved gross sales of over half a
trillion dollars and employed 5.6 million full and part-time employees. Franchising created 18,500 new businesses
in 1991 and approximately 108,000 new jobs to the economy. Business format franchises experienced sales growth
of 8.9 percent from $213.2 billion in 1990 to 232.2 billion in 1991. Industries that rely on franchised businesses to
distribute their products and services touch every aspect of life from automobile sales and real estate to fast foods
and tax preparation. Thus, we can see that franchising can be is a viable, lucrative business alternative.
There are primarily two forms of franchising:
* product/trade name franchising and
* business format franchising.
In the simplest form, a franchisor owns the right to the name or trademark and sells that right to a franchisee. This
is known as "product/trade name franchising." In the more complex form, "business format franchising," a broader
and ongoing relationship exists between the two parties. Business format franchises often provide a full range of
services, including site selection, training, product supply, marketing plans and even assistance in obtaining
financing.
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* List at least three reasons for going into business.
* Identify the type of business you are interested or may be interested in operating.
____________________________________________________________________________________________
_
IS FRANCHISING FOR YOU?
As with any business, the first step in determining whether or not to enter into the venture is to assess your reasons
for going into business. If you feel you need a change, or you're tired of having other people tell you what to do,
then you should reassess your decision before investing your time, money and energy because operating a business
requires more than a need for a change, or the desire to do as you please. Purchasing a franchise like any other
business requires a total commitment of your time, energy and financial resources. If you are not prepared to invest
these qualities and resources into your franchise, then you
should stop at this point.
EVALUATING YOUR SKILLS AND EXPERIENCE
Identify Your Reasons
As a first and often overlooked step, ask yourself why you want to purchase a franchise. This question, although
basic, is an excellent way of evaluating your reasons for going into business. List every reason you identify, no
matter how farfetched it may seem. Divide your list into two separate components. Separate the viable reasons from
the trivial reasons and categorize them accordingly. It isn't unusual for reasons to range from the desire to be your
own boss to the desire to be a billionaire. Whatever your reasons, remember that your future is at stake so try to be
objective. Your checklist should include reasons such as these (check each that applies to you):
YES
* Freedom from the 9-5 daily work routine ______
* Being your own boss ______
* Doing what you want when you want to do it ______
* Improving your standard of living ______
* Bored with your present job ______
* Have a product or service for which there is a demand ______
Some reasons are better than others, none are wrong; however, be aware of tradeoffs. For example, you can escape
the 9-5 daily routine, but you may replace it with a 6 a.m. to 10 p.m. routine.
After assessing your reasons for going into business, next conduct a self analysis to determine if you possess the
personal characteristics needed to be a successful franchise owner. Consider questions such as:
Personal Characteristics
YES NO
1. Are you a leader? _____ _____
2. Do you like to make your own decisions? _____ _____
3. Do others turn to you for help in making
decisions? _____ _____
4. Are you willing to accept managerial assistance
from the franchisor? _____ _____
5. Are you willing to comply with the provisions
outlined in the franchise contract? _____ _____
6. Do you enjoy competition? _____ _____
7. Do you have will power and self discipline? _____ _____
8. Do you plan ahead? _____ _____
9. Do you like people? _____ _____
10. Do you get along well with others? _____ _____
Personal Conditions
These questions cover the physical, emotional and financial strains you will encounter operating a franchise.
YES NO
1. Are you aware that running your own franchise
will require working 12-16 hours a day, six days
a week, and maybe even on Sundays and
holidays? _____ _____
2. Do you have the physical stamina to handle the
work load and schedule? _____ _____
3. Do you have the emotional strength to
withstand the strain? _____ _____
4. Are you prepared, if needed, to temporarily
lower your standard of living until your
franchise is firmly established? _____ _____
5. Is your family willing to go along with the
strains they, too, must bear? _____ _____
6. Are your prepared to invest, and possibly lose,
your savings? _____ _____
Answering "yes" to any of these questions means that you have some of the skills needed to operate a successful
franchise; a negative answer means that you may have to acquire these skills or hire personnel to supply them.
Experience
Certain skills and experience are critical to the success of a business. Since it is unlikely that you possess all the
skills and experience needed, you'll need to hire personnel to supply those you lack. There are some basic and
special skills you will need for the particular franchise you purchase. By answering the following questions, you
can identify the skills you possess and those you lack (i.e., your strengths and weaknesses).
YES NO
1. Do you know what basic skills you will need to
operate a successful franchise? _____ _____
2. Do you possess those skills? _____ _____
3. When hiring personnel, will you be able to
determine if the applicants' skills meet the
requirements for the positions you are filling? _____ _____
4. Have you ever worked in a managerial or
supervisory capacity? _____ _____
5. Have you ever worked in a business similar to
the franchise you want to purchase? _____ _____
6. Have you had any business training in school? _____ _____
7. If you discover that you don't have the basic
skills needed for your franchise will you be
willing to delay your plans until you've
acquired the necessary skills? _____ _____
When you complete your self-analysis, discuss your results with your family and financial advisor. Their feedback
can help you make the right decision. If you all agree that you have most of the skills needed to operate a successful
franchise, then you should feel comfortable proceeding with your plans. If, however, they feel you lack most of
these skills, then you may need to consider delaying your plans until you are better prepared. Above all, be honest
and objective with yourself; after all, it is your future.
A more detailed self-analysis, the "Small Business Entrepreneur's Checklist," is located in Appendix I. This
checklist is designed to assist you in determining what you actually know about operating a business, and the skills
you will need to do so. Review it carefully before deciding whether or not to purchase a franchise or to go into
business. If you discover that you lack many of the skills needed to operate a successful franchise, you may need to
take some training courses or hire personnel to compensate for these deficiencies.
Once you are certain that your reasons for going into business and the franchise you've selected are viable, gather
the information that you will need to make an informed decision from sources, such as: 1) a directory of franchises,
e.g., the Franchise Opportunities Handbook (published by the U.S. Department of Commerce), 2) the disclosure
document, 3) current franchisees, 4) other references, such as U.S. Small Business Administration (SBA), Federal
Trade Commission (FTC), Better Business Bureau, local chambers of commerce and 5) professional advisors.
Many new small business owners choose franchising over starting a new business because it provides easy access to
an established product, reduces many of the risks involved in opening a new business, provides access to proven
marketing methods and in some instances provides assistance in obtaining start-up capital from financing sources.
Franchising can be advantageous as well as disadvantageous to both the franchisee and franchisor. A few of the
advantages and disadvantages are listed below. Study these factors carefully before choosing the franchise option.
FRANCHISEE
Advantages Disadvantages
- established product or service - failed expectations
- technical & managerial assistance - service costs
- quality control standards - overdependence
- less operating capital - restrictions on freedom of ownership
- opportunities for growth - termination of agreement
- territorial franchisee
- right of subfranchisees
- operating franchisee no rights - performance of other franchisees
FRANCHISOR
Advantages Disadvantages
- expansion - company-owned vs franchised units
- limited risk
- limited capital
- equity investment
- motivation - problems with recruitment
franchisee highly motivated
- operation of non-union business - communication
- bulk purchasing - freedom
- cooperative advertising
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* Determine if franchising is for you by listing at least five reasons why you should choose franchising over
starting a new, independent business.
* List sources where you can gather information to help you make an informed decision on choosing
franchising as an alternative to starting a new business.
* Determine if you have the skills needed to own and operate a successful franchise.
____________________________________________________________________________________________
_
IDENTIFYING THE FRANCHISOR'S RESPONSIBILITIES
An important step in making an informed decision about purchasing a franchise is to know the responsibilities the
franchisor is legally obligated to fulfill. One of the toughest decisions any entrepreneur faces is whether or not to
purchase a franchise. And while buying a franchise means obtaining a complete system of
doing business, there is no guarantee for success.
Being aware of the franchisor's responsibilities takes some of the guess work out of the decision making process.
Learn as much as you can about the franchise and the franchisor's obligations before entering a purchase
agreement, or even before meeting with the franchisor or his or her representative to discuss the possibility of
purchasing a franchise.
Fourteen states have franchise disclosure or registration laws that require the franchisor to prepare documents for
submission to state authorities. The FTC requires in all states that a lengthy disclosure document, as well as
financial statements, be given to franchisees before purchasing the franchise. In addition to state filing fees,
printing and accounting and legal expenses, the franchisor must develop internal controls and policies to ensure
ongoing compliance with regulations.
Franchisors are obligated to:
1. Give you a copy of the Uniform Franchise Offering Circular (UFCO) at least 10 days before you sign the
agreement. If you meet face to face with the franchisor's representative and have serious discussions
concerning the purchase of the franchise, the UFCO also must be given to you at this time.
2. Give you a copy of the franchise agreement, other contracts and the franchisor's financial statements. The
franchisor, however, cannot, under federal law, make claims concerning the amount of money you will
make. The UFCO will disclose estimates of all initial start-up costs.
3. Provide one week of training to you, the franchisee, and your manager in one of the parent stores, the
operational manual and ongoing support and assistance to you and other franchisees.
4. Provide guidelines on audits and assignment procedures and any extra franchisor criteria for approving an
assignment (e.g., ownership rights - franchisee rights to sell the franchise if it becomes successful).
5. Provide information on franchisee's initial fees and other costs (e.g., royalties, promotional fees).
Franchisors should:
6. Provide a marketing plan, promotional materials and area site selection assistance to franchisees.
7. Provide adequate insurance coverage for franchises.
Insurance coverage generally includes:
- fire insurance
- inventory insurance
- burglary insurance
- workmen's compensation
- accident and health insurance
- use and occupancy insurance
- general liability insurance
- automobile insurance (may be optional depending on franchise type)
8. Provide a trademark or service mark that is known, or will be known through advertising in the
geographic area of use.
9. Provide guidelines on the purchase of inventory and equipment, requirements on restrictions on goods
sold and the terms of agreement and renewal.
Most of these responsibilities are or should be included in the UFOC document, but since there are no uniform
regulations governing the operation of franchises in any given state, make sure the UFOC document complies with
the FTC's regulations, and the regulations of the state in which you plan to purchase the franchise. Review the
UFOC document carefully with your attorney before signing the purchase agreement.
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* Identify issues you need to be aware of as a franchisee.
____________________________________________________________________________________________
_
DETERMINING WHAT THE FRANCHISE PACKAGE CONTAINS
After gathering all the information you will need to make an informed purchase decision, carefully examine this
information with your attorney, accountant or business advisor ensuring that it is addressed in the franchise
contract. Think carefully about the level of independence you will maintain as a franchisee and how comprehensive
the operating controls will be. Be very clear about the cost of purchasing the franchise and the documents that
make up the franchise package.
You can obtain information on franchising from: 1) a directory of franchises, 2) the disclosure document, 3)
current franchisees, 4) other references, such as SBA, FTC, Better Business Bureau, local chambers of commerce,
5) professional advisors and 6) reference materials on franchises from the local library.
Your franchise package should contain the following information:
* The full initial costs and what they cover.
* Licensing fees.
* Land purchase or lease.
* Building construction or renovation.
* Equipment.
* Training.
* Starting inventory.
* Promotional fees.
* Use of operations manuals.
* Continuing costs related to the franchisor.
* Royalties.
* Ongoing training.
* Cooperative advertising fees.
* Insurance.
* Interest on financing.
* Requirements regarding purchasing supplies from the franchisor, and if the prices are
competitive with other suppliers.
* Restrictions as they apply to competition with other franchisees.
* Terms covering renewal rights and resale of the franchise.
In reviewing the franchise contract with your attorney, familiarize yourself with the language. Be aware of terms
such as hold harmless clauses, integration clauses and choice of venue or choice of law provisions. These terms
may favor the franchisor over you if improprieties arise during or after the settlement process.
Hold harmless clauses - may require that you release the franchisor from specific acts or
violations of state laws.
Integration clauses - may prevent you from successfully suing for any deceptions preceding the
signing of the contract.
Choice of venue or choice by law provisions - are especially important if the franchisor has
headquarters in another state. These clauses may dictate that you settle all disputes in your
franchisor's state of residence and settle your claim under laws favorable to the franchisor.
Other important clauses to consider deal with severance, renewal and transfer of the franchise.
Again, use professional help when examining the franchise contract. And, remember some of the contract terms
may be negotiable. Find out which terms are negotiable before you sign; otherwise, it will be too late.
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* List some of the information that should be contained in the franchise package.
* Identify sources where you can obtain information on what the franchise package should contain.
____________________________________________________________________________________________
_
UNDERSTANDING THE FRANCHISE CONTRACT
The franchise contract, like the UFOC, is a very important document. The contract is probably the most important
document in the transaction process. It is a legal commitment which is binding on both the franchisor and
franchisee. In the franchise contract, the franchisor's promises must be presented to the franchisee in writing and
subjected to careful scrutiny. During this stage of the buy/sell process, the franchisee must have competent legal
advice regarding the meaning and effect of the contract.
When reviewing the contract, you and your attorney will need to determine if it confirms what you have been told.
If you find improprieties in the contract at this point, you may decide to withdraw from the transaction before
committing your time, energy and money to an agreement that may not be beneficial for you. If, however, you
choose to continue with the process, you may be able to negotiate favorable terms, but remember by signing the
contract, you are legally bound by the provisions of the agreement.
The franchise contract consists of two main parts: 1) the purchase agreement and 2) the franchise or license
agreement. For convenience, occasionally the franchise transaction is split into two stages. When this happens,
some franchise companies have two contracts, one for each stage, rather than a single contract. While it isn't
necessary to have two contracts, it can be the better method where there is a comprehensive equipment and initial
services package.
The purchase agreement of the contract covers:
* the franchise package
* the price
* the services to be provided.
The franchise or license agreement covers:
* the rights granted to the franchisee
* the obligations undertaken by the franchisor
* the obligations imposed upon the franchisee
* trade restrictions imposed upon the franchisee
* assignment/death of franchisee
* termination provisions.
A brief explanation of each agreement follows.
PURCHASE AGREEMENT
1. The franchise package. Consists of an equipment or inventory list. This list must contain all the items the
franchisee has been told to expect. Some franchise companies regard this list as being confidential and
stipulate in the contract that it must be so treated.
2. The price. The price and the manner of payment will be specified. This may be cash on signature,
although rare. More often a deposit is required on signature with payment of the balance to follow on
delivery of the equipment or at other stages of the transaction.
3. The services to be provided. This section outlines or lists the franchisor's responsibilities to the franchisee.
Those services the franchisor is required to provide the franchisee before he or she is ready to open for
business are called the initial services. Those services the franchisor provides periodically are called
continuous services. A more detailed explanation of the services provided by the franchisor are included in
the next section on the license agreement.
FRANCHISE OR LICENSE AGREEMENT
1. The rights granted to the franchisee. The franchisee will be given the right as it applies to particular
circumstances. As a franchisee there are certain rights that are extended to you.
Your rights include:
* use of trademarks, trade names and patents of the franchisor.
* use of the brand image and the design and decor of the premises developed by the franchisor.
* use of the franchisor's secret methods.
* use of the franchisor's copyright materials.
* use of recipes, formulae, specifications and processes and methods of manufacture developed by
the franchisor.
* conducting the franchised business upon or from the agreed premises strictly in accordance with
the franchisor's methods and subject to the franchisor's directions.
* guidelines established by the franchisor regarding exclusive territorial rights.
* rights to obtain suppliers from nominated suppliers at special prices.
2. The obligation undertaken by the franchisor. This item in the contract tells prospective franchisees what
the franchisor will do for them both before and after start-up. That is why this item frequently refers to
specific contractual obligations detailed in the franchise agreement, which is attached to the UFOC.
3. The obligations imposed upon the franchisee. Certain obligations are required of you by the franchisor.
These obligations include:
* to carry on the business franchised and no other business upon the approved and nominated
premises.
* to observe certain minimum operating hours.
* to pay a franchise fee.
* to follow the accounting system laid down by the franchisor.
* not to advertise without prior approval of the advertisements by the franchisor.
* to use and display such point of sale advertising materials as the franchisor stipulates.
* to maintain the premises in good, clean and sanitary condition and to redecorate when required
to do so by the franchisor.
* to maintain the widest possible insurance coverage.
* to permit the franchisor's staff to enter the premises to inspect and see if the franchisor's
standards are being maintained.
* to purchase goods or products from the franchisor or his designated suppliers.
* to train your staff in the franchisor's methods to ensure that they are neatly and appropriately
clothed.
* not to assign the franchise contract without the franchisor's consent.
4. Trade restrictions. The restrictions imposed upon a franchisee may prohibit him or her from carrying on a
similar business except under franchise from the franchisor, taking staff away from other franchisees,
carrying on a similar business in close proximity to other franchised businesses within that chain, and
continuing, after termination of the franchise contract, to use any of the franchisor's trade names, secrets,
and so forth.
5. Assignment/death of the franchisee. The franchisee should ensure that in the event of death his/her
personal representative or dependent will be able to keep the business going until one of them can qualify
as a franchisee, and that arrangements can be made to keep the business going until a suitable assignee
can be found at a proper price.
6. Termination provisions. The termination of a franchise is an event heavily regulated by the franchise laws
of 17 states. Franchise relationship laws in many states specify the conditions under which a franchisor
may terminate or refuse to renew the franchise, imposing a standard of "good cause," "reasonable cause"
or "just cause" as defined by those laws. Minimum advance notice usually has an opportunity to cure the
default and avoid termination; notice ranges from five days to 90 days. Many states also specify
circumstances under which the standard notice and cure requirements need not be met.
In view of the close working relationship that must exist between the franchisee and franchisor all provisions must
be stated clearly in the contract. In this transaction, no small print should exist. Make sure, if possible, the
franchise contract contains provisions that are favorable for both you and the franchisor.
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* List at least four rights and four obligations you as the franchisee are entitled to and required to fulfill.
____________________________________________________________________________________________
_
APPENDIX 1
SMALL BUSINESS ENTREPRENEUR'S CHECKLIST
A. Business Planning and Management Limitations
B. Market Analysis
C. Marketing Strategy
D. Financial Controls
E. Personnel Function
F. Operation, Organization and Special Areas
____________________________________________________________________________________________
_
SMALL BUSINESS ENTREPRENEUR'S
CHECKLIST
A. Business Planning and Management Limitations
1. Do you know your own personal management assets and liabilities?
_____ yes _____ partially _____
no
2. Do you have a written small business plan covering 1 to 5 years?
_____ yes _____ partially _____
no
3. Can you concretely define what product or service franchise you are in?
_____ yes _____ partially _____
no
4. Can you describe in writing what business franchise you are in?
_____ yes _____ partially _____
no
B. Market Analysis
5. Do you know in detail what factual market conditions and government requirements impact on
your franchise?
_____ yes _____ partially _____
no
6. Do you know your specific geographic and demographic market areas?
_____ yes _____ partially _____
no
7. Do you know your market area business and franchise competitor by name, organization, size
and gross sales?
_____ yes _____ partially _____
no
8. Can you describe in writing the strengths and weaknesses of competitors in your defined market
areas?
_____ yes _____ partially _____
no
C. Marketing Strategy
9. Can you identify in a written business plan what advantages your franchise's products or services
have over specific competitors?
_____ yes _____ partially _____
no
10. Based on the guidelines from the franchisor, can you describe in writing how your products and
services are distributed or sold?
_____ yes _____ partially _____
no
11. Based on the guidelines from the franchisor, do you know what sources of supplies and costs are
required to operate your franchise?
_____ yes _____ partially _____
no
D. Financial Controls
12. Can you detail the specific monthly cash and credit requirements of your franchise?
_____ yes _____ partially _____
no
13. Do you maintain a file of and stay aware of the advantages of small business computer planning,
accounting, financial management and marketing controls?
_____ yes _____ partially _____
no
14. Do you use Standard Financial Industry Ratios as a guide to measure your franchise's annual
performance?
_____ yes _____ partially _____
no
15. Do you maintain written costs of sales, breakeven analyses, profit and loss statements and
appropriate accounting journals?
_____ yes _____ partially _____
no
E. Personnel Function
16. Do you know how much personnel money your franchise spends on human resource development
as compared to competitors?
_____ yes _____ partially _____
no
17. Do you know exactly what employee benefits cost your franchise?
_____ yes _____ partially _____
no
Do you know the impact when compared with industry standards?
_____ yes _____ partially _____
no
18. Based on guidelines from the franchisor, do you have a detailed personnel plan for the
management staff, clerical and specific labor (i.e., part-time, union) required to operate your
franchise?
_____ yes _____ partially _____
no
F. Operation, Organization and Special Areas
19. Based on guidelines from the franchisor, do you have a detailed building or facility plan which
documents the space required to operate the business?
_____ yes _____ partially _____
no
20. Do you know why your business is a franchise and the legal limitations or advantages of this
business form?
_____ yes _____ partially _____
no
21. Do you use specialized consultants on a pre-planned basis for accounting, legal, tax, insurance,
employee benefits and other critical business operational areas?
_____ yes _____ partially _____
no

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