Category Archives: Franchise Business News

Articles, blog entries and other tidbits you need to know to keep yourself up to date on the industry.

A Growing Market Battles for Pad Sites

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With a market that continued to expand through the recession, fast casual dining restaurants are now battling over limited pad sites. What is a “pad site” you may ask? Pad sites are those outlots that sit in front of shopping centers and grocery stores. The appeal of these sites comes from them being centrally located in highly trafficked parking lots, such as shopping malls, strip malls, and large stores with massive parking lots like Lowes and Home Depot.

While these pad sites are especially appealing to restaurant franchises such as Checkers and Rally’s, more recently non-traditional retailers, including clinics, dentists, and chiropractors are now pursuing these retail sites. Medical facilities are trying to provide more convenient locations for their customers, and what is more convenient than a place situated smack dab in the middle of a busy parking lot?

Due to a peak in interest surrounding purchasing pad sites, prices for these small plots of land have gone way, way up. Small sites in certain areas can be upwards of $1 million just for the property itself. Companies like Checkers and Rally’s prefer sites that are prices closer to $500,000. The high demand but low quantity of these sites in many areas is leading to many battles over prime pad sites, where multiple offers are made and one franchise must be another one out for the space.

The IFA Convention

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We are only two days away from this year’s IFA Convention! The 2014 IFA Annual Convention, this year in New Orleans, has a series of exciting keynote speakers as well as exciting topics that are relevant to all in the franchising industry.

Overarching topics to be discussed at this year’s convention include “issues of our time,” which will delve into how franchising will fare on Capitol Hill over the next year, as well as educational opportunities to learn about other hot topics in the franchising world.

Most people come back to the IFA convention year after year for the incredible networking experience it offers. The IFA Convention is a place to meet people with whom you can share ideas, hear others, learn, and grow. With over 3,000 people attending this year, it is sure to say that all of the franchise industry’s movers and shakers will be present.

Do you plan on heading down to the Big Easy for the event? This Saturday, February 22 through the 25th at the New Orleans Convention Center/ Hilton Riverside & Towers. For more information, check out the official webpage.

Maui Wowi Hawaiian Acknowledged on Entreprenuer’s 35th Annual Franchise 500

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Maui Wowi Hawaiian, a dual concept specializing in fresh fruit smoothies and premium specialty coffee beverages, has been recognized in the 35th Annual Franchise 500 by Entrepreneur Magazine, a national business publication and industry leader. Maintaining a continued presence on the highly esteemed list, Maui Wowi Hawaiian met the objective and quantifiable criteria required for selection.

“Having the pleasure of being recognized by such a prestigious listing is a testament to the growth of our brand and stability of our proven system,” said Mike Weinberger, CEO of Maui Wowi Hawaiian. “It’s a cumulative effort from each one of our outstanding franchisees, who represent the true values of our company. They are committed to bringing the Aloha Spirit into everything they do in order to provide our customers with the best experience possible.”

Entrepreneur’s Franchise 500 is a compilation of some of the top companies who represent a wide range of franchise segments and opportunities. The list is based on a comprehensive vetting process of financial and statistical data and is intended to be used as a research tool to compare franchise operations, according to Entrepreneur.

With over 30 years of industry experience, Maui Wowi Hawaiian has earned an impressive reputation. The company has been selected in recent years as a Low-Cost Franchise, Military Friendly Franchise, and Top Global Franchise. Differentiating itself from others by offering several different business models, Maui Wowi Hawaiian aims to make it possible for entrepreneurs to fulfill a lifelong dream of business ownership. The company capped off 2013 with two new fixed store locations on the East Coast and is preparing for even more expansion in 2014.

Do you have a Maui Wowi in your area? Leave comments below!

Power to the People?

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Lawmakers in Maine, California, Pennsylvania and Massachusetts have introduced bills that would give franchise owners a lot more leverage. These new rights and options would offer new opportunities to franchisees, including allowing them to join and support franchisee associations, as well as make renew agreements with their franchiser under the current terms much easier. While there are mixed opinions on the legislation, it seems many are in favor of the new bill giving franchisees more power in their businesses. Others have issues with the bills, feeling that giving franchises more freedom could potentially “tarnish the brand.”

Maine’s new legislation bill is perhaps the most far-reaching. LD 1458, which includes a series of big stipulations, if passed, could do the following:

  1. Allow franchisees to close their stores between 10 p.m. and 6 a.m.
  2. Let franchisees renew their licenses without an increase in royalties or new fees
  3. Give franchisees the power to set their own prices on products and services

The new laws had me question what might be empowering this recent movement. Perhaps, at least in part, the desire for more flexibility for individual franchisees may be fueled by the fairly recent local movement in most communities. Locality is becoming highly valued, in terms of sourcing (ex: food) and workers. People want Joe down the road running his frozen yogurt restaurant, not the frozen yogurt’s corporate headquarters. Secondly, I think that the internet may play an influential role. Today, franchisees are able to communicate more effectively than they were a decade ago because of the rise of social media. Accessibility to one another thoughts and ideas are bringing people closer, and therefore strengthening their case.

How do you feel about the proposed legislation? Leave your comments below!

Technology and Franchising: The Future in Google Glass

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Franchising World, the International Franchise Association’s official magazine, published a really interesting article this month about Google Glass and the role it will play in franchising in the future.

As many know, Glass is the latest in technology innovation: a sleek (albeit slightly dorky looking) pair of glasses that acts like a smart phone. You can take phone calls, read and send emails or text messages, search the internet, translate simple phrases, receive turn-by-turn directions, take pictures, record videos, post updates to social media sites, automatically track your flight status or other events, and even make video calls. When you place the device on your head, a small display hovers just in front of your right eye (not in front of it, so you can still see normally.) There is a small touchpad on the side of the glasses’ frame that allows you to navigate its computing platform.

If all of that isn’t enough, technology analysts are now looking at the way that this device could eventually change hyperlocal marketing as we know it. What are some of the ways that they might change the franchising industry? Here are some of the speculations Ken Colburn has:

1. Training. The device could reduce the cost of creating video training libraries. With the ability to record high-definition videos from the first person perspective, training videos no longer need to be filmed by an expensive videographer. First-person training videos could capture point-of-sale interactions. Just by having seasoned employees wear Glass for a couple of hours, you could have a bunch of great, real footage for new employees. Trainees could also wear the glasses during their first few shifts, with the manual or reminders available literally right in front of their eyes.

 

2. Field Support. Glass makes it easy to gather information, complete with time and date stamps. Field support teams could quite easily document their visits with photographs, videos and verbal notes that can be backed up to Google’s cloud resources. The possibilities are almost endless.

 

3. Marketing.  Here’s where the money is at. Apps on Glass can alert users on local points of interest based on their location. For example, an app called Field Trip currently makes a sound every time you walk past a historical site. This technology could help franchises bring advertisements and coupons closer than ever.

 

While Glass is nowhere near its prime yet, as the technology evolves, I can expect we will see big things. The device’s technology offers a whole new platform for franchises to utilize. What do you think is in its future?

Leave thoughts below!

Franchise Real Estate Trends that You’ve Got to Check Out

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I recently read an article in Franchise Times (“Eight trends top the year’s list of big stories in real estate” by Beth Mattson-Teig) about real estate trends among franchises around the world. Some very interesting trends (including oddball locations such as a Subway store on a German riverboat) make the list and give franchisees a glimpse into the vast possibilities of location, location, location.

The list is as follows:

1. Top Towns
This one isn’t very surprising. Cities on the short list for expansion are those who are ahead of the curve in economic recovery. Interestingly, the article reports that retailers are now looking into “second-tier” markets for development now more than ever, as opposed to large, central cities. Growing cities provide opportunities at lower costs.

2. Think Global
Franchisors are accelerating international growth plans, expanding to emerging markets in Asia and South America. The expansion doesn’t stop there however, as other major franchises are targeting expansion in Russia and sub-Saharan Africa.

 3. Tenants Rule
Due to an excess of vacant space in many cities across the US, many landlords are offering rent discounts and concessions, such as more tenant improvement dollar. While the retail sector is improving, the vacancy rate at neighborhood and community shopping centers is just 60 basis points below the sector’s all time high of 11.1% in 2011, according to Reis Inc.

4. Tech Talk
TV screens are no longer exclusive to sports bars. They are now popping up in a wide array of franchises. Apparently, people report they like the white noise of televisions while they are in a restaurant or bar. Whatever is on television provides a talking point for people socializing with one another as well.

 5. Smaller Footprints
This is a big one. Restaurants and retail groups are now expanding with smaller store footprints. There is currently a drive in America to return to local, mom-and-pop stores. By franchises switching to spaces with smaller square footage, they provide more of a small store feel and less “big box.”

 6. Against the Grain
Non-traditional locations such as college campuses and baseball stadiums are by no means a new trend, but franchises lately have also been finding great success in other high-traffic areas such as inside of convenience stores, as well as at amusement parks, train stations, and hospitals.

 7. Back in Action
While new construction projects were far and few in-between during the recession, the one exception has been outlet malls, which have an estimated 20 million square feet of new projects either proposed or underway, according to Marcus & Millichap.

8. Designs To Go
Lastly, there is a growing demand in our country for home meal replacement. Busy families are driving more business to restaurants that offer quick take-out delivery. Because of this, more focus is being paid to designing for the “to go” service, with marked parking spots for people using the service, and dedicated windows for such orders. Designing buildings with separate entrance and pick-up counters from the rest of the restaurant is on the rise.

 

It’s in the Water: Brooklyn Water Bagels

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What makes a good bagel good? Any New Yorker will tell you it’s the water.

Bagels, first introduced to America by Polish-Jewish immigrants in the 1880s, have become a signature bread in New York City and its surrounding boroughs. When Polish immigrants passed through Ellis Island, they brought with them the delicious recipe, which is said to be made best with New York City tap water.

Many New York bagel enthusiasts claim that when transient populations of New Yorkers first got down to places like South Carolina and Florida and began making bagels, they realized that while their flour and ingredients were the same, their bagels did not taste the same. The missing ingredient was, of course, the tap water. New York City tap water has a pH level of 7.2; whereas a pH of 7.0 is considered pure water. The pH level affects the way in which proteins in the mixture denature, and therefore can cause a change in the way the yeast rises and the dough tastes.  Additionally, New York City water has optimal quantities of calcium and dissolved minerals, strengthening the wheat protein and causing the bagel to taste chewier – a texture many bagel lovers enjoy.

So what is a bagel shop in Florida to do? In steps Brooklyn Water Bagels, a bagel shop franchise originated in Delray Beach, Florida. The CEO, Steven Fassberg, a Brooklynite relocated to the Delray area, began working on recreating New York City’s tap water with his own machinery, adding ingredients like calcium and magnesium to replicate the makeup of the water.  When he perfected the water, bada-bing, he began making bagels that tasted just like a New York authentic bagel.

Today, Brooklyn Water Bagel has locations all over the country. Serving everything from breakfast sandwiches to iced coffee made with frozen coffee cubes, Americans everywhere can enjoy a good ol’ New York bagel.  The proprietary water treatment technology system that the franchise has at each location “Brooklynizes” the water, as they call it, and is designed “to provide limited maintenance operation for the franchisee via satellite monitoring of each store’s water system to ensure consistent quality.”

Is there a Brooklyn Water Bagels near you? Leave comments below!

Funding a Franchise

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If you have decided to become a franchisee, you need funding to get your doors open. Before you proceed, you should know how banks view franchises and what information you will need before approaching the bank for a loan.

 

Banks find loans for those interested in purchasing a franchise more appealing than those looking to start their own business from scratch. Statistically speaking, franchisees are more likely to succeed than the average small business owner: 99% of all franchise operations succeed within a five-year period of time where as 65% of all general businesses succeed in that same five-year time period. Banks view franchisees as having prior history because the entire franchise is already established.

 

If you are going to purchase a franchise and are in need of financial aid, the bank will need as much information as you can possibly provide. In order to grant you the most aid possible, the potential franchisee must provide information about the franchise business you are interested in purchasing, the business plan, his or her financial information, the franchise agreement, and information on the local area.

 

Funding a franchise, while considerably easier than getting a loan for an entirely new business, takes research, time, and planning. Make sure you have all of the proper information before proceeding, and take advantage of any local resources for business owners that are available while you are trying to get your new franchise up and running.

 

To find a franchise that fits your budget, visit a franchise directory such as http://franchisebuy.com.

Why a Down Economy is the Perfect Time to Become an Entrepreneur

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Anyone who recently graduated from college or lost their job through layoff knows how difficult it can be to find a new job. Not only are you competing against other graduates and laid off workers for the few available positions left in this down turned economy, but you have to hope that if you are lucky enough to land a new position you won’t wind up out on the street again in a few months.

 

So naturally the question has to be asked: Why would anyone want to put themselves through all that? And most people will probably say they wouldn’t, but they don’t know what else to do. Well, if you have ever contemplated starting your own business, now is the perfect time.

 

Resources are Less Expensive in a Down Economy

 

It’s happening at grocery stores and retail outlets, car dealerships and real estate offices. It’s happening in businesses all across the country. Prices are coming down, deals are being struck, and discounts are being offered. That’s why now is the time, when resources are less expensive, to strike out and start a new business.

 

The Small Business Administration (SBA) Office of Advocacy reports that since the mid-1990s, small businesses have generated over 60 percent of new jobs. A small business is defined as one with 500 or less employees. Plus the 2009 Recovery Act eliminates fees to borrowers and allows the SBA to guarantee up to 90 percent of each loan. Naturally having a conservative financial plan can help keep overhead costs low.

 

Talented People are in Abundance in a Down Economy

 

The fact is that there are a lot of people out there looking for the right business opportunity and not all of them have a great idea for starting a new company. But they do have talent and are eager to get onboard with a winning idea. Donnie Deutsch of the television show “The Big Idea” indicated in an interview that now is the time to find people “on the cheap,” whether that means employees or vendors.

 

That means savvy entrepreneurs need to put their networking skills to work and make a connection with people who they can partner with and who can help make the company a success. In fact, 64 percent of entrepreneurs surveyed for the book “Upstarts: How Gen Y Entrepreneurs are Rocking the World of Business” indicated they started their company with a partner.

 

The Larger Companies Cut Back in a Down Economy

 

According to Julie Lenzer Kirk, award winning entrepreneur and author, “As the economy is struggling, so are all those businesses with overhead and large payrolls. They’re busy bailing the water to keep their ships afloat. Starting up now, when you can be flexible and nimble means that you can float right by those sinking ships. After all, customers still need stuff – they’re still spending money, just not enough. The new business can be created to give them what they need – whatever that is – while everyone else is busy bailing.”

 

Plus as larger, established organizations cut their budgets because of decreased revenues, they are in no position to start a new venture. That means now is the perfect time for entrepreneurs to get started before someone else steals their great idea.

 

New Entrepreneur’s Have Less to Lose in a Down Economy

 

It may be scary, but college graduates especially have less to lose right now mainly because most of them don’t have a lot of financial commitments (except perhaps their student loans). They may still be living at home, without a mortgage or family to support, their needs are few and their willingness to sacrifice their own comfort is high.

 

In his article, “How Can Your Small Business Grow in a Down Economy?” small business coach Dave Westfall suggests that entrepreneurs not limit themselves. He illustrates how to expand a company by exploring other options, such as a private personal trainer now offering group training or a real estate property manager offering services to mortgage companies that want to rent out foreclosed homes.

 

It’s all about exploring options and finding those niche markets that others have overlooked or walked away from. And while it’s important that entrepreneurs select an opportunity that matches their interests and take the time to investigate it thoroughly, it is possible to become an entrepreneur in a down economy.

Little Caesars Announces its New Deep Dish Style Pizza, Just in Time

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With the pizza business as competitive as ever, Little Caesars introduces its new Deep! Deep! Dish Pizza, as an answer to their three biggest rivals in the pizza industry arena: Dominos, Papa John’s and Pizza Hut. Little Caesars’ new menu item is fast-becoming the brand’s biggest product launch in its 54-year history, and has customers lining up to try their new line of deep dish options.

Deep Dish Little Caesars Pizza

The new product is a necessity for Detroit-based Little Caesars to remain a contender in the restaurant franchise industry. Holding true to their roots, Little Caesars bakes their new deep dish pizzas “Detroit-Style,” which refers to the caramelized-cheese crust that is signature to each pie. Each pizza is $8 a box, and is available as one of Little Caesars’ Hot-N-Ready offerings, which can be picked up at any time without calling ahead, between the hours of 4 p.m. and 8 p.m. each day.

With its famous $5 Hot-N-Ready Pizza deal, Little Caesars took the industry’s price to a new level, positioning it perfectly underneath the price points of its biggest competitors. The $8 price of its new deep-dish pizza aligns it directly with the promotional $7.99 price for Domino’s medium pan pizza.


Not only is Little Caesars holding its own in the pizza market, it’s also become one of the largest and most valued brands in the entire restaurant franchise industry. The pizza franchise concept offers a tremendous value with their high-quality pizza made with fresh ingredients. Little Caesars makes dough fresh in each store, uses fresh, never-frozen cheese and sauce made with vine-ripened tomatoes. Pair this with a price that can’t be beat, and it becomes understandable why Little Caesars has grown to be an international staple in the food industry and will continue to be a brand synonymous with quality for years to come.