McDonald’s is finally faltering from the rising competition and US poor unemployment rapport. Is it representing the big picture of franchising today?

For McDonald’s, it’s always been me against the world – Competitors are doing their best to secure and grow their market shares in the industry. Like it or not, competition always drag the competing entities to price war – and we all do know that price war is where we DON’T want our franchises involved in.

Unfortunately, the recent news of McDonald’s US sales decline indicates that, like it or not, McDonald’s has to play the price war game. As the pressure of unemployment mounting, McDonald’s is finally (and officially) hit by the recession.

It is reported that on Tuesday, McDonald’s November sales at their US restaurants open at least a year fell 0.6 percent – the second consecutive monthly decline (in November, McDonald’s performance were even worse than October’s figure of 0.1 percent.)

How about McDonald’s international sales figures? It was better – 0.7 percent rise in November – but the figure could be affected by the declining dollar (meaning, foreign sales appear to be higher than it supposed to be.)

The poor performance, although better than other franchises in the industry, is also affected by the increased competition from rivals, namely: Taco Bell’s value menu starting from 79 cents, Wendy’s $2.99 combos, Burger King’s $1 double cheeseburger (to directly compete with McDonald’s very own $1 McDouble.)

Another, overlooked, culprit of McDonald’s could-be-better international sales figure is their dispute with franchisees overseas. One example: In Indonesia, McDonald’s has ended a dispute with a franchisee, which results in the contract breakup involving 13 McDonald’s restaurants (those restaurants are not going out of business, but they have been relaunched under a new brand name.)

The economy is, indeed, uncertain these days – We can’t generalise that what happened to McDonald’s will happen to the entire franchising world. Some franchises went out of business, some thrives – only the best survives… and McDonald’s – no matter how we love or hate them – is still one of the best in global franchising.

Ivan Widjaya
Recession hits McDonald’s
Image by LancerE.

Franchisors and franchisees – should you join the Black Friday 2009 sales? Based on the stats, you should.

The day businesses, especially retailers, have been waiting for is finally approaching: The Black Friday on November 27, 2009.

The Black Friday (and the whole Christmas shopping season starting from that day) is the Day for customers to lavishly spend their money and for businesses to attract and serve as many customers as they can. Franchises are definitely on the bandwagon right now and I don’t think you should miss this out.

Papa John’s, for example, has already launched a Black Friday weekend specials:…

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Cash flow is the life energy of every business, including franchise. Lack of it will drain the life out of your franchise unit – and this is just the beginning.

In the midst of economic turmoil today, we heard this advice all the time: In order for your business to survive, you should increase sales, cut expenses.

With all due respect – I don’t think the above is entirely applicable for the rest of us.

Increasing sales and cutting expense in today’s difficult economy is very challenging, if not very difficult for the rest of us. I do agree that the logic behind it…

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The Internet has propelled franchises to conquer new market and recruit more franchisees. How to wisely use the Internet to benefit your franchise business?

Inspired by Mark Siebert’s article, here are 10 ways to grow your franchise using the Internet as a medium, tool and strategy to ace the competition:

1. Use the Internet to lower your budget in franchise marketing
   The Internet allows franchises to grow and expand on a shoestring budget. For less than $500, you can get a decent website that can easily look and function better than Subway’s website (Subway, in my opinion, has a sub-par website design considering the big name.)…

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Refranchising has always been a hot trend of the decade in franchising. The all-important question: Is refranchising beneficial franchisors, franchisees, or both?

Refranchising is basically about selling the franchisors’ own units to franchisees. So, yes, franchisees are buying established franchise business with well-run operation and positive cash flow.

To me, refranchising is a blessing – I am tired of starting up, and with franchising I expect more than just a start up business. For you who share my vision, you might be interested in refranchising, as well.

Why do franchisors refranchise?

Firstly, you need to know that own units are not always started up by the franchise company. Instead, franchisors…

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Frozen yogurt – or popularly dubbed as froyo – are gaining in popularity today. One issue: Is froyo franchise just a fad or a legitimate franchise opportunity?

I never ate frozen yogurt in the past decade as much as I did in the past 3 months. To be honest with you, froyo – a popular term abbreviation of frozen yogurt – is kind of addictive to me.

However, I can’t help the feeling that froyo won’t last long as a popular, healthy version of ice cream. And today is not the first time that froyo-craze hit people worldwide.

According to Forbes, the last frozen yogurt craze is…

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It seems that there is nothing in this world involving money that cannot be franchised – this includes non-profit sector, and it is emerging and attracting social entrepreneurs and investors.

About five or six years ago, I thought that not all businesses can be franchised. But today, every organisation involving with people and money CAN be franchised – and succeed.

EBay drop-off franchises, science franchises, and some other innovative ideas are popping on daily basis, worldwide. But those share a common characteristic: All of them are for-profit organisation. Any chances for non-profits to be developed in franchising framework? I thought it wouldn’t be possible.

But all things…

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Do you want to receive free franchising advice from top franchising experts but too tired to read any franchising articles? Try listening to live podcasts.

The Internet offers wealth of knowledge if you want to learn as much as you can about franchising. You only need to look for the online resources.

One of the resources I would like to recommend is franchising podcasts.

What is podcast anyway?

Podcasts are series of digital media files (most commonly audio) that can be shared and listened to, either live or recorded. Podcasts are commonly come into life in the of online talk shows or online interviews.

I enjoy listening to podcasts…

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Here is the question that your answer can make or break your entrepreneurial career: To buy or to lease business premise.

Many people misunderstood McDonald’s business model. Many thought that McDonald’s is successful because it makes the best burgers.

Not entirely true (to me, Burger King’s burgers are the best of all – LOL. McDonald’s? Theirs are simply… um… bland.)

Many people can claim that they make better burgers than McDonald’s. They can be successful with their superior burger recipes. Unfortunately, most of them are missing one major key ‘ingredient’ – An ‘ingredient’ that makes McDonald’s not only successful as a franchise, but as a business empire,…

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Many people deciding to buy a franchise because it is closely related to their hobbies. My opinion: Hobby-based franchises are great, but let your hobby be your hobby.

I have talked with some franchisees in the past who are buying a franchise because it is their hobbies-turned-into-businesses.

One of their most common comments is: Let your hobby be your hobby.

To clarify: Not that hobby-based businesses (in this case, franchises) are bad. In fact, for the right people, hobby-based franchises can be extremely successful, considering the nature of hobby/entertainment community and industry.

Unfortunately, using your hobby as the main reason to decide on buying a franchise is not…

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