Archive for the ‘On Franchising’ Category

Despite our lackluster economic situation, we should never blame the recession for our franchise failure.

In franchising, we have witnessed some established franchises made it, while some others don’t – both franchisees and franchisors share their own mistakes; in franchising, “it takes two to tango” couldn’t be more relevant.

Here are some reasons why established franchises fail, looking from both sides – franchisors and franchisees:

1. Franchisors compromise too much, franchisees demand too much

In order to win franchisees’ business, some franchisors are compromising on what’s important, such as product sourcing, pricing policies, staffing policies, etc. Franchisors must not compromise on such important things!

In the other hand, franchisees demand things, often ridiculous ones, to franchisors – if your store’s window is broken, should you call the Support Team?…

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When you are pitched by a franchise company that franchises can’t fail, just stay away from that franchise: Franchises – just like any other businesses – can fail. What to do next if your franchise is failing?

I was pitched that franchises has a better sustainability due to their inherited ability to succeed. I was also pitched that franchises can’t fail because when you buy a franchise, you buy a proven system.

Wrong – my two franchise units were going out of business for one reason or another.

I’m not going to point a finger to my franchisor because pointing fingers won’t solve anything. In fact, I believe in the saying that if you point one finger to other person, the other four fingers are pointing at yourself – meaning, I am the one who is responsible for my big failures in franchising.…

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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 industry. Not only one, I decided to open in another location for the same franchise.…

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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 nice upfront cash to benefit the franchise company and its founders, while leaving you to run the franchise unit on your own.…

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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.…

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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 are possible.…

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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, worldwide – no matter how some people hate McDonald’s unhealthy food products.…

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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.

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, know that web presence is important and the right design and content transmitting the right message can attract and convert better and more.…

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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?

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, you need to take on competitors, whether you like it or not (if you don’t like competition, don’t start a business or buy a franchise!)

The question of the hour: Is it wise to take on your fellow franchisees with the same brand name?…

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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.

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 the way the franchise units work, thinking that they can do better than the franchisors.…

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