Archive for the ‘On Franchising’ Category

What is my reason in buying a franchise?

Choosing and buying a franchise is easy. The tough part is finding the right reason why you want to buy one. Learn from my mistakes.

I remember all the excitement that comes with the process of finding the right franchise to buy. Visiting franchise expos, talking with franchise owners, visiting franchisees’ stores, getting pitched by franchises’ marketing team… and so on.

All seem wonderful. All seem promising. All seem sure-fire.

I decided to pick one of the many. A business service center, the national leader and among the top in the franchising…

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Franchise fee

Most, if not all, franchise opportunities require franchisees to commit to a certain amount of franchise fee. Many seem discouraged by the amount of franchise fees asked by the franchises (and some do charge a bit too much!), but you must view it as a necessary to keep your franchise unit and the whole franchise company afloat and maintain the quality level of products and/or services.

Now, the problem is, some franchises just don’t have a strong reason to charge franchise fee – a few is even making excuses, in which the real reason is to get a…

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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

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…

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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.

Social franchising

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?…

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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.

Leased property

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…

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Today, web presence is more important than ever – Franchises know this fact, too. Here is our very own 10 best franchise company websites, design-wise.

Sonic Drive In

Franchise companies know that if they want to reach out more to customers and franchisee candidates, they need to go online.

They need to transmit the right message to the site visitors so that their online marketing campaigns will not go in vain.

I have visited franchise companies website a lot, and to tell you the truth, many of them are sub-par and poorly design. Fortunately, most top franchises, especially global franchises,…

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Entrepreneurs and business owners are fierce competitors. Franchisees, too, are great competitors. As a franchisee, should you take on your fellow franchisees?

Franchise competition

I have said numerous times that franchising is about relationship. Along with your franchisor and fellow franchisees, you build the same brand, in such a way that if one franchisee sucks, the others will feel the impact, too. On the other hands, if you have a great team work with the other franchisees, your franchise prospers.

However, each and every franchisee has his/her own vision of what his/her franchise units will become. To achieve this vision,…

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In an effort to better the franchise units, some franchisees are trying to do things differently, even changing the way the franchise units should run. Don’t.

Following the path

Many franchisees are great entrepreneurs – They are business owners of their own brands while investing in franchise units in an effort to diversify. Many have also tried to put the best practices, from their own experiences, to work on their franchise units. Unfortunately, not many people realise that franchising is a totally different world.

Not only seasoned entrepreneurs, professionals and new entrepreneurs investing in franchise units are trying to change…

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Franchises aiming for global expansion could mean two things: It is either they are booming or they are looking for overseas market, due to stagnant or declining local market.

Krispy Kreme irony

Let us start with McDonald’s as an example.

We all know that McDonald’s franchise units are present in many parts of the world (#1 in 2009 top 100 global franchise lists.) They have achieved what Subway and 7-Eleven can’t. Despite challenges McDonald’s face in the countries they existed, such as a victim of terrorist attack (for being an ‘American’ business) and protests from many parts of the…

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Paul Segreto, one of the authoritative voices in franchising, tipped me with his experience as a franchisee, teaching us how to deal with our struggling financial units.

We are business owners, not ostriches

Paul commented on Franchise Note’s Do You Think Franchising is Easy? Think Again sharing his story as a franchisee.

Paul’s story is evolving around his mistakes dealing with his struggling franchise units. At that time, he did what many of us did (and do) – Sticking our head in the sand, running away from problems by deeming our franchise units as failures too early;…

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