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Learn the ABC’s of Franchising

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When we were young we all learned our ABCs; each letter became a building block. If you’re just starting out, here are 26 different ways to learn your franchising ABCs.

 

 

A is for Automotive— There are over 250 million registered passenger vehicles in the U.S. As such, it’s no wonder that automotive franchises are such lucrative opportunities. From car washes franchises to mobile detailing businesses, the list of available automotive franchise concepts is long and diverse.

B is for Blue Mau Mau — If you’re looking for the best original and curated content, press releases and articles on franchising, business opportunities and small businesses, Blue Mau Mau is the place to go.

 

C is for Crowdfunding — Funding remains a challenge for all entrepreneurs, not just those who are hoping to open a franchise. New legislation is sure to help crowdfunding’s popularity as a way to raise capital.

 

D is for Discovery Day — One of the most important days for a potential franchisee is discovery day. While each concept’s discovery day is a bit different, it normally includes a visit to the franchise’s headquarters, a sit down with the development team and often a meeting with the franchisor. Often, the franchise discovery day is the last stop before you sign on the dotted line and become a franchisee.

E is for Entrepreneur — Entrepreneur magazine has long celebrated franchising with its “Franchise 500”, their annual ranking of the industry’s top franchise concepts. The magazine also features a franchising section and often covers topics pertaining to the industry on its website.

 

F is for FDD — The franchise disclosure document (FDD) sounds just like what it is: a legal document that discloses the major facts and figures that make up each particular franchise concept to a prospective buyer. The FDD is intended to provide potential franchisees with enough detailed information to make educated decisions about a possible franchise investment.

G is for Growth — Growth despite economic challenges and uncertainty has become a hallmark of the franchise industry. Despite the woes experienced by many during the Great Recession, the franchise industry recovered well. The IFA expects the number of franchise establishments to grow by 1.4 percent in 2013.

 

H is for Healthcare — As the Affordable Care Act became law in 2012, the franchise industry took to the podium to speak out against the potential damages of the healthcare overhaul on small businesses. Many franchisors, including Papa John’s CEO, John Schnatter and Catherine Monson of FASTSIGNS have spoken out against President Obama’s healthcare reforms.

 

I is for IFA — The International Franchise Association (IFA) is the world’s largest and oldest organization representing franchising worldwide. It acts in the best interest of the franchising industry to promote, protect and enhance the franchise industry through policy, PR, and education.

 

J is for Jobs— No, not Steve Jobs, although we’re sure he’d appreciate the economic fortitude that is the franchising industry. According to the IFA, The franchising community provides nearly 18 million jobs!

K is for King — Joel Libava, aka “The Franchise King”, writes a phenomenal blog on all aspects of the franchising industry. His posts range from evaluations of franchising concepts, helping potential franchisees and issues the industry faces.

 

L is for Las Vegas — This year, the annual IFA Convention will be held in Las Vegas. The IFA’s annual convention allows for all members of the franchising community to congregate and connect. This year, Franchise Buy’s CEO David Schwarz will attend with his key managers as an “Entrepreneur of the Year” award nominee.

 

M is for Military — Military veterans have been welcomed profusely to franchising by franchisors and the IFA alike. The push to hire military veterans has been facilitated by websites like Veterans Franchise.com, VetFran and crowd funding platforms like Boost a Hero.

N is for Nation’s Restaurant News — This magazine delivers breaking news about the $600 billion food industry, including franchises. Since 1967, NRN has been covering trends, operators, suppliers and major figures in all areas of the food service industry.

 

O is for Operations — As a franchisee, a large part of your day deals with the day-to-day operations that make a franchise unit run smoothly. Luckily, those with varying degrees of business experience can count on their franchisor counterparts to lead the way. After all, one of the best parts about franchising is the proven track record and support provided to each franchisee by its franchisor.

 

P is for Portal — As the franchise industry picks up speed, leaving the Great Recession behind, portals have become an invaluable source of leads. Some, like Franchise Clique, Franchise Buy and Veterans Franchise, have begun call-verifying leads as franchise sales and development teams field an increasing number of inquiries.

 

Q is for Quick-Casual — If you didn’t catch our recent post on food costs and the franchising industry, you missed out on a short and sweet explanation of how food franchises continue to grow despite rising food, oil and transportation costs. The real winner in the food franchise category? Quick-casual restaurants, which are predicted to grow 1.7 percent in 2013, the third largest growth percentage according to the IFA. Also, quick-casual restaurant franchises make up two-thirds of all food related franchise establishments.

 

R is for Restaurants — When you think of franchising the golden arches and drive-thrus probably spring to mind first. It’s no wonder, considering food franchise establishments comprise 33 percent of all franchise establishments.

S is for Steve Caldeira — Stephen J. Caldeira is the President & CEO of the International Franchise Association. As the President and CEO, Caldeira works with the IFA’s board to set the course for the organization’s strategic priorities: policy, research, education, PR, and various development programs. Mr. Caldeira has 30 years of government relations, political communications, fundraising and professional development experience. Prior to his current position, Caldeira served as the Executive Vice President of Global Communications & Chief Public Affairs Officer for Dunkin’ Brands, Inc.

 

T is for Trillion — Yes, that’s trillion with a “T”! The franchise community represents $2.1 trillion of economic output just for the U.S. economy.

 

U is for Understanding — Let’s talk it out. No, really. When you’re deciding which franchise to buy, it’s important to do your research, ask questions and find out all you can about the concepts that interest you before taking the next steps. A franchise is a long-term business investment

 

V is for Vision — If the franchising industry were a word it would be “expansion.” Beyond the U.S. and Canada lies opportunity– and the franchise industry knows it. More and more brands are expanding their vision to Africa, Asia, Australia, South America, Europe and the Middle East.

 

W is for Work — Despite the autonomy inherent in becoming a franchisee, there’s also a lot of hard work. Ask any small business owner and they’ll tell you how much they wish there were more than 24 hours in a day.

 

X is for Xenophile — Now that’s an SAT word! As far as we’re concerned, one of the very best things about the franchise industry is its acceptance of other cultures. Whether it’s a franchisee expanding outside of the U.S. or the birth of a new food franchise celebrating a cuisine that’s not quite mainstream yet, the franchise industry makes a point to bring “new” and “different” to the masses.

 

Y is for Yogurt — How many frozen yogurt businesses can you count driving through your city or town? The frozen yogurt craze, which hasn’t cooled yet, has been going strong for years. Though it’s not the oldest type of franchise concept in the industry, it’s certainly one that’s made other consider franchising as a viable means of making a living.

 

Z is for Zany— As of late,new franchise concepts have gotten creative and outright zany! Nail art vending machines, make your own sushi franchises and dog walkers have become incredibly popular. What could be next?

Franchises That Are Making a Difference

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The franchise industry has a bad reputation as an industry that force feeds processed foods to the masses and cons its franchisees into paying high franchise fees.

 

But, there’s more to franchising than just French fries and lawsuits.

 

Concepts do exist that make a difference in the lives of customers, communities and franchisees. Some concepts help people change their lives for the better, others offer healthy alternatives to junk food and then there are those that are encouraging positive social change in the business world. Here is our list of favorite franchises that are making a difference:

 

[highlight]Healthy Vending Machine Concepts[/highlight]

Usually, it’s not our three main meals of the day that are our unhealthiest, it’s our snacks. Healthy vending machines remind me of the saying, “Don’t hate the player, hate the game.” By stocking conveniently located vending machines with better, more nutritious options, these vending machine franchises are reinventing our definition of convenience foods.

  • Naturals 2 Go
  • Health You Vending
  • Fresh Healthy Vending

 

[highlight]Personal Fitness Franchises[/highlight]

Just watch one episode of “The Biggest Loser” and you’ll understand America’s fascination–and need– for businesses that empower others to get in shape, lose weight and be healthy. These fitness franchises give their customers and franchisees the power to change lives for the better.

 

[highlight]Socially and Environmentally Conscious[/highlight]

Almost 70 percent of adults are more likely to visit a restaurant that offers food grown or raised in an organic or environmentally-friendly way.  Over 40 percent of Americans say they’ve purchased an item solely because of its association with a social or environmental cause. If you think being a socially and/or environmentally conscientious business isn’t important, think again. These franchises have their minds set right.

 

[highlight] Charitable Giving[/highlight]

A full 83 percent of consumers want more products, services and retailers to benefit worthy causes. Some make financial donations while others give their time. Even still, some are known to provide meals for those in need.

 

 

@Work Staffing: The New Way to Hire

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The Paradigm Shift to Temporary Staffing

 

In the two years since the Great Recession ended in 2009, staffing firms have created more jobs than any other industry. As Jason Deverant, vice president of sales for @Work Personnel Services says, “Private sector temporary staffing is a leader in job creation.”

Despite the economy’s sluggish recovery, if you own a staffing franchise business has been good. According to the U.S. Bureau of Statistics, the temporary help services industry put nearly half a million Americans back to work and accounted for 91 percent of non-farm job growth from June 2009 – June 2011. For @Work, this has meant a 30 percent increase in profits over just last year.

 

“We’re looking for similar growth numbers this year,” Deverant adds.

 

As an industry, temporary staffing and recruiting are hyper-cyclical, fluctuating with the contraction and expansion of the economy. A study from the American Staffing Association suggests that temporary staffing firms lose jobs first during an economic contraction and create jobs first during an economic recovery. In essence, the temporary staffing and recruiting industry is a litmus test for the rest of the economy.

For a variety of reasons, there hasn’t been a significant shift back to permanent hiring since the recovery began. Firms are, according to Deverant “a little gun shy” about returning to the old business model of hiring employees permanently.

 

“Awareness of staffing companies has increased and attitudes have changed,” explains Deverant. The Great Recession has issued a new staffing paradigm: temporary might just be the new permanent.

 

For the employer, staffing provides an obvious value. Shielded from workers compensation litigations, unemployment, and the need to offer benefits, firms are able to mitigate the inherent risks of hiring a permanent employee while still getting a project done on time. Staffing takes into account the seasonality of certain industries, too. In addition, using a staffing agency is an enormous time saver for the employer.

 

“Very often we hear, ‘It’s hard for us to find a new candidate, I don’t have the time.’,” says Deverant.

 

But what about the employee? Is staffing good for the temp, too? According to Jason Deverant, it is. Instead of being tied down to one particular job every day, a temporary hire can pick and choose which projects he or she wishes to be a part of. There’s an increase in modality that’s coveted many full-time employees. In addition, work is often accomplished in a more project-oriented manner. The temporary staffer is treated more like a contractor than just a “filler” employee.

 

How staffing benefits the employee and the employer.

The need for staffing reaches into multiple industries extending beyond the traditional administrative work, which is why @Work’s franchising model includes four distinct staffing lines: personnel, medical services, search group, and helping hands.

“Our model is more cost effective,” says Deverant, “There’s about a 30 percent savings to comparable business models.”

 

In addition to providing staffing for multiple industries, @Work prides itself on its screening process. Finding quality temporary staffers is a huge part of what has made @Work a major competitor in the world of staffing. When a firm approaches you to fill a position, they’re trusting you to do the same kind of thorough recruitment and background check they’d do– if they had the time.

Of course, @Work’s dedication to finding franchisees is equally strong.

 

“An ideal @Work franchisee candidate is, of course, someone with staffing experience,” jokes Deverant, “But most of all we’re looking for someone with relationship development skills.”

 

Many of @Works’ franchisees are former human resources professionals who have made the switch to staffing. Those who aren’t skilled in sales (or might be a little rusty) need not worry. As part of the franchise’s standard fees, @Work dedicates a substantial amount of time preparing new franchisees for their new business ownership role.

 

“Our model is fairly inexpensive when you break the costs down,” says Deverant. Of course, a lot depends on the market in which a franchisee chooses to establish his or her location, but an @Work franchise usually costs between $77,000 and $120,000. According to Deverant, this includes the franchise fee, training fees, estimation of start-up costs, equipment purchases, client development cash, and additional overhead. As Deverant notes, franchisees can make frugal choices and bring this cost down even more.

 

For more information on @Work or how to become an @Work franchisee, please visit http://www.franchisebuy.com/franchise/@-Work-HelpingHands-Services.

 

 

What the Olympics Can Teach Us About Franchising

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The world’s best, strongest, fastest, and most talented athletes are competing for personal glory on the world’s most public stage: the Olympic Games. Behind the fanfare, sponsorships, and medals lie years of hard work, sacrifice, and standing on the shoulders of your supporters.

 

As a franchisee, your business is your Olympics. While you may not find yourself on a podium decorated with a bronze, silver, or gold medal at the end of each day, your customers, employees and franchisors are judging your performance.

 

The Importance of Passion

Take a page out of an Olympic athlete’s book: passion is paramount. How else could you dedicate 20 years of your life, as Michael Phelps has, to hours and hours of training? To not watching your favorite television show? To not ordering dessert? The only time that sacrifice doesn’t feel sacrificial is when what you stand to gain is greater than what you are forgoing. That, and when what you’re doing still feels like fun.

 

Olympic athletes are often quoted pre-and-post event on the importance of, “going out and having fun.” Without some semblance of fun, the hours in the gym, pool, or at your business, would be unbearable. That’s why when choosing a franchise concept it’s important to be truly interested in or passionate about the business you’re about to buy into. Franchise agreements are written in terms of years. Most are between 10 and 25 years. Can you imagine doing something you don’t really like for so long?

 

What It Means to Be a Part of Something Larger Than Yourself

 

There’s something to be said for being a part of something larger than yourself. Recognizing your place as part of the whole (as opposed to the whole) can be humbling and empowering.

 

As a business or franchise owner your importance is obvious. Without you there wouldn’t be jobs for your employees or services and products for your customers. Then again, if it weren’t you it would be somebody.

 

Embracing this reality and mentality can make you a better manager and franchisee. When you accept that your role, while important, exists only thanks to your franchisor, your customers and your employees, it’s easier to be more appreciative of how your business truly works.

 

Furthermore, realizing your place in something bigger serves as a reminder that you are responsible to and accountable for others—an important inspiration for staying true to your endeavors when you lose sight of your goals. Perhaps this is why Olympians become so overwhelmed with emotion; they see they represent more than just themselves.

 

The Importance of Support and Guidance

Regardless of what you may believe, we all stand on the shoulders of those who have come before us—and thank goodness for it! The experience and knowledge of others is invaluable whether you are an Olympic athlete or a franchisee.

 

Can you imagine going to the Olympics without the guidance or tutelage of a coach? Can you imagine becoming a business owner without support from your family or friends? As a franchisee, you not only have the support of your friends and family, you have the support of a network of franchisees and franchise support systems designed to make you and keep you successful! While your personal and financial preparation is your responsibility, you are not without resources or guidance.

 

 

 

The Top 10 Fastest-Growing Industries in the United States and What That Means for Franchising

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The Top 10 Fastest-Growing Industries in the United States:

 

1. Generic pharmaceuticals

2. Solar panel manufacturing

3. For-profit universities

4. Pilates and yoga studios

5. Self-tanning product manufacturing

6. 3-D printer manufacturing

7. Social network game development

8. Hot sauce production

9. Green and sustainable building construction

10. Online eyeglasses sales

 

If the above list, found on Wonkblog, is any indication, the way out of the recession is  hot sauce, green construction and whole lot of downward facing dogs. If that’s the case, then the franchise industry, which predicted a 5% growth margin for 2012, is poised for an even better end of year report.

 

Why Hot Sauce?

It seems as though not some, but most, like it hot. As a nation, our tastes are changing. The growing number of immigrants and morphing demographics of our melting pot country are causing a desire for spicy, ethnic foods.  For the past decade, the hot sauce manufacturing industry has grown at a rate of 9.3 percent per year.

 

While there aren’t any hot sauce franchises (to our knowledge) this taste for spicier food is sure to carry over in ways other than the bottle of Tobasco on your table. Mexican-inspired franchise restaurants are seeing an increase in their popularity across the country, too.

 

Green, Mean Money Machines

Solar manufacturing and sustainable building construction, the two green industries on IBIS World’s list, can attribute part of their growth to various government subsidies. Though these subsidies are beginning to wind down, the growth rate for green industries is predicted to continue in 2012 with Solar Panel Manufacturing and Sustainable Green Building growing at a rate of 8.2 percent and 9.4 percent respectively.

 

For the environmentally conscientious interested in becoming a franchise owners there are quite a few options available:

 

Say Om

Pilates and yoga studios were highly resistant to the recession and have continued to grow as the U.S.’ economy strengthens. From 2002 to 2012, the industry grew an average of 12.1 percent per year. In 2012, yoga and Pilates studios are projected to experience a 5.1 percent growth rate.

 

A number of yoga and/or Pilates franchises are available to those interested in helping others improve their strength, flexibility and fitness levels. Though they’re not mentioned explicitly in IBIS’ report, I would imagine similar health and fitness concepts like gyms and massage franchises have experienced an uptick in their growth rates and are ripe for expansion as well.

 

  • IMX Pilates
  • Wundabar Pilates
  • Sunstone Yoga
  • Open Doors Yoga
  • Innergy Yoga
  • Bikram Yoga