Franchise Note » On Franchising

5 Reasons Why Established Franchises Fail

Franchise Note — Sun, 22 Aug 2010 14:58:08 +0000

Stop listening will fail your franchise

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…

Failing Franchise: What to Do Next

Franchise Note — Mon, 16 Aug 2010 10:36:33 +0000

Failing franchise

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…

Why do You Want to Buy a Franchise?

Franchise Note — Mon, 03 May 2010 03:45:31 +0000

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…

How Franchise Fee Works

Franchise Note — Wed, 07 Apr 2010 03:24:52 +0000

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,…

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Refranchising: A Win-Win Deal?

Franchise Note — Fri, 13 Nov 2009 04:39:47 +0000

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

…

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Non-profit Franchise: Social Franchises are Emerging Worldwide

Franchise Note — Sun, 08 Nov 2009 15:14:27 +0000

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…

Franchise Unit Location: Buy or Lease?

Franchise Note — Mon, 02 Nov 2009 06:22:03 +0000

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…

Top 10 Franchise Company Website Designs

Franchise Note — Mon, 26 Oct 2009 15:07:01 +0000

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…

Effective Business Blogging for Franchise Unit Owners

Is it Right to Compete with Your Fellow Franchisee?

Franchise Note — Thu, 22 Oct 2009 13:25:06 +0000

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…

Growing Your Franchise Unit: Why Bother Reinventing the Wheel?

Franchise Note — Wed, 21 Oct 2009 16:31:05 +0000

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…