Wednesday, April 22, 2009
Earnings Claims
As a franchisor, you are required by law to provide your franchisees with all the information about the earnings claimed. This includes all assumptions involved in the preparation and presentation of the franchise. These assumptions are based on the results from existing outlets and a percentage of the outlets which exceed or meet the predicted results. This information is prepared by the franchisor well in advance of any contract or agreement being signed. The earnings claims documents should tell you where to find substantiating evidence and additional information should you so desire. Franchisees have a right to this information for their own investigation and inspection.
Wednesday, April 15, 2009
The Importance of Location
Never underestimate the importance of the location of your business. It is as important as your product or advertising offers. It literally makes or breaks your business, especially in retail. Not only is a good location important, but you must ensure that your targeted demographic matches the people that live or work in the area.
If your franchise is in manufacturing or distribution, you may be less dependent on your location and instead need larger premises at a lower rental cost to maximize profit. If your business is a motel, donut shops, gas station or small family restaurant, your best location may be off a major highway.
Stay tuned for more specific information on locations and how to get the best location for maximum profit!
If your franchise is in manufacturing or distribution, you may be less dependent on your location and instead need larger premises at a lower rental cost to maximize profit. If your business is a motel, donut shops, gas station or small family restaurant, your best location may be off a major highway.
Stay tuned for more specific information on locations and how to get the best location for maximum profit!
Monday, March 16, 2009
Why Franchise?
Here are some great reasons why you should consider franchising:
Reduced Risk
Although entering into a franchise may not guarantee success 100%, the very nature of franchising (and how it differs from licensing) greatly reduces the chance of failure.
A Proven System
The franchisor has a proven-to-be-successful method of operation well before you even get involved with him. You lose the obstacles and gains only opportunities. Make sure when entering a franchise, that you receive a completely proven system that includes essential components such as initial training, opening assistance, accounting systems, established suppliers, manuals and use of the trademarks. Make sure that the franchise has already gone through a significant "learning curve" This helps prevent you from repeating previous mistakes made by the franchise and gives you extra information and the value of others experience in inventory levels, store design, competition, pricing structure and operational data drawn from the entire system of the franchise itself.
Reduced Risk
Although entering into a franchise may not guarantee success 100%, the very nature of franchising (and how it differs from licensing) greatly reduces the chance of failure.
A Proven System
The franchisor has a proven-to-be-successful method of operation well before you even get involved with him. You lose the obstacles and gains only opportunities. Make sure when entering a franchise, that you receive a completely proven system that includes essential components such as initial training, opening assistance, accounting systems, established suppliers, manuals and use of the trademarks. Make sure that the franchise has already gone through a significant "learning curve" This helps prevent you from repeating previous mistakes made by the franchise and gives you extra information and the value of others experience in inventory levels, store design, competition, pricing structure and operational data drawn from the entire system of the franchise itself.
Sunday, March 8, 2009
Reduced Risk of Franchising
Although entering into a franchise may not guarantee success 100%, the very nature of franchising (and how it differs from licensing) greatly reduces the chance of failure.
Well before you, the franchisee, enter the picture, the franchisor has a proven-to-be-successful method of operation. Because of this, the franchisor loses the obstacles and gains only opportunities. Make sure when entering a franchise, that you receive a completely proven system that includes essential components such as initial training, opening assistance, accounting systems, established suppliers, manuals and use of the trademarks. Make sure that the franchise has already gone through a significant "learning curve" This helps prevent you from repeating previous mistakes made by the franchise and gives you extra information and the value of others experience in inventory levels, store design, competition, pricing structure and operational data drawn from the entire system of the franchise itself.
Well before you, the franchisee, enter the picture, the franchisor has a proven-to-be-successful method of operation. Because of this, the franchisor loses the obstacles and gains only opportunities. Make sure when entering a franchise, that you receive a completely proven system that includes essential components such as initial training, opening assistance, accounting systems, established suppliers, manuals and use of the trademarks. Make sure that the franchise has already gone through a significant "learning curve" This helps prevent you from repeating previous mistakes made by the franchise and gives you extra information and the value of others experience in inventory levels, store design, competition, pricing structure and operational data drawn from the entire system of the franchise itself.
Tuesday, February 3, 2009
Seattle's Best Coffee offers Franchising Opportunities
There is exciting news for all you prospective franchisees: Seattle’s Best Coffee has announced that they will be expanding the franchising options that the company offers to include the entire USA. The strategy behind this move is to allow the company’s parent company, Starbucks, to offer greater variety and choice in the marketplace, thereby capturing more of the public’s attention.
Seattle’s Best Coffee has been developing quietly over the past four years. The company has seen some significant success, with over 550 cafes across America. The company is designed to be a friendly, accessible way for coffee lovers to explore specialty coffee, offering many milder blends and flavoured coffees.
Seattle’s Best Coffee has been developing quietly over the past four years. The company has seen some significant success, with over 550 cafes across America. The company is designed to be a friendly, accessible way for coffee lovers to explore specialty coffee, offering many milder blends and flavoured coffees.
Sunday, January 25, 2009
Why Franchising?
Companies generally decide to become franchises for one of three reasons. They are:
· Time
· People
· Money
Franchising allows companies to expand without having to worry about risking capital or debt. This is because the franchisee is responsible for the initial investment at the unit level, thereby allowing expansion to be possible with very little capital. Franchisees are often responsible for signing leases and service contracts. Because of this, franchising is able to allow a business to grow without the company having to deal with contingent liability issues.
Franchising allows solve the all-too-common business problem of not being able to expand because of a lack of good unit managers. This is because the franchisee replaces the unit manager. He or she has both an investment in the unit and a stake in the profits.
· Time
· People
· Money
Franchising allows companies to expand without having to worry about risking capital or debt. This is because the franchisee is responsible for the initial investment at the unit level, thereby allowing expansion to be possible with very little capital. Franchisees are often responsible for signing leases and service contracts. Because of this, franchising is able to allow a business to grow without the company having to deal with contingent liability issues.
Franchising allows solve the all-too-common business problem of not being able to expand because of a lack of good unit managers. This is because the franchisee replaces the unit manager. He or she has both an investment in the unit and a stake in the profits.
Sunday, January 18, 2009
Building a Franchise in Quebec
Here are three big reasons why franchising in Quebec is very different from running a franchise in the rest of Canada:
• All business contracts must be drafted in French
• Anyone doing business in Quebec must have a French name
• All advertising must be predominantly in French
These points are dictated by very strict laws the government of Quebec works really hard to maintain. Their guide is the Charter of the French Language, which outlines these laws. In the charter it is written that all business contracts of any kind must be printed and signed in French. It is the same charter that places restrictions on the type of advertising this is permissible in the province. Most of the advertisements must be in the language of the province, that is French, with only a fraction of it allowed to be in English.
• All business contracts must be drafted in French
• Anyone doing business in Quebec must have a French name
• All advertising must be predominantly in French
These points are dictated by very strict laws the government of Quebec works really hard to maintain. Their guide is the Charter of the French Language, which outlines these laws. In the charter it is written that all business contracts of any kind must be printed and signed in French. It is the same charter that places restrictions on the type of advertising this is permissible in the province. Most of the advertisements must be in the language of the province, that is French, with only a fraction of it allowed to be in English.
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