Like things aren't bad enough with 100 degree heat all over the country, crappy stock market performance and an election coming up where neither candidate is, say, unscary. Gilbert Poon, a Middlebury, CT. of Tempe, AZ. based franchisor GameTruck had a car accident that totalled his truck and damaged his GameTruck vehicle as well. Poor Gilbert had enough on his plate with that--he spoke to the franchisor and said he would have to cancel all his scheduled upcoming parties. ""NOT SO FAST" said Scott Novis, the company CEO. Between corporate and a great Indianapolis franchisee, equipment was loaned and sent immediately to allow Gil to fulfill all his party commitments. I have been in franchising for 30 years--and the best systems do this! Help their zees and rally other zees to help each other. No wonder franchising's slogan is "you are in business for yourself but not by yourself".
ShelfGenie Helps Their Zees Connect at Annual Conference!
ShelfGenie's 4th annual conference in Pine Mountain Georgia at the beginning of June was a smashing success according to most who attended. Sure it was June, and sure it was Georgia, so what are we saying? Yes even in the photo at left with everyone smiling you just know it was 102 degrees! But the important thing is this hard working group got to hear keynote speakers, win awards, and pow-wow together which is what franchising is all about. Their founder Allan Young spoke to Fortune.com and CNN.com about why it pays to grow slow if you are a franchisor and tend to each franchisee one at a time rather than "speed sell" franchises and then not be able to keep up on support. Read it here!
Facebook IPO Really Shed a Light
What can one say? I was one of those caught in the "bubble" of 2000. My Dad, may he rest in peace, told me in no uncertain terms to dump everything I had because it was hugely overvalued. What did he know? All he had been through was the Depression, when his parents lost 6 apartment buildings, and WWII where he won 3 medals. Why listen to him? Oh yeah that. Happy Father's Day and appreciate your Dads because they are likely a lot smarter than you. I lost a bundle by not listening to mine.
And now my friend Les Walgreen (yes that Walgreen) remarks that Facebook has already lost the equivalent of two whole Walgreen companies!! What is going on people? As a franchise expert I look and listen to franchisors every day struggling to keep their brands going and thriving. More importantly I look at their franchisees who struggle at the street level. What company that "might have future big revenues" can be worth $19 billion? Go buy a sandwich or a cookie from a nice franchisee and come back down to earth!
Bagger Dave's Proves Everyone Still Loves a Great Burger!
Just when you thought that you couldn't find one more burger chain out there, here comes another-and a really good one too! The secret? If the meat is awesome, and the buns and bread fresh, one can make a very creative and outstanding burger. Especially if one understands what the consumer and the franchisee want. The franchisee wants to partner up with a franchisor who "gets it"--and the best way to do that is find someone like Michael Ansley who is not only the CEO, founder and franchisor of Bagger Dave's Legendary Burger Tavern but is also a multi-unit franchisee of Buffalo Wild Wings. Who would know more the challenges facing franchisees? And the customer? They just want that delicious food-hot and fresh in a nice environment at a decent price point. Do that and you got yourself a winner! Nice work Michael and team.
Ohio Thinks Franchising is the Coolest!
ONN--yes that's a TV station in Ohio--does it remind you of CNN? Well, that's right. And this past week the producers were smart enough to see the merits of 3 franchise stars--WelcomeMat, Penn Station Subs and FirstLight Homecare.
Please enjoy the roundup of this segment here
SEO is the Way to GO! Or is There More to it?
Enjoyed helping to host a luncheon Wednesday for a group of very sharp franchise suppliers so they could show off their wares to franchisors. The seminar is called Over the Top, and the lunch, held at Benny's Chophouse of Chicago, was delish--but the info was even more so. 19 franchisors got quite an education on where things are today in terms of lead generation and knowledge of who your franchisee candidates are and how to speak to them. These lessons came from FranConnect, Greenbaum Marketing and Management 2000--all speaking about different disciplines in the sales process. One thing is for sure....if you can't get potential candidates to your website you are doomed. AND, they need to click all the way through--or there is no point. That's where SEO and all that good stuff comes in. We see here that SEO can be utilized in our press releases, hopefully sending eager beavers right to the website of our client--however, after that, then what? If you can't close the deal, and if the zee can't get the financing, all is for naught. Yes getting those SEO terms down etc. is all good and well, but in the end, can your model hold up? Can you sell it? And can your franchisee make money? Those are the real first steps! This seminar is happening in Phoenix and Atlanta as well.
FoxNews.com says Franchisors are Seeking Latinos to Join Their Systems
And why not? Hard working, family oriented, the Latin community, huge in the U.S. is poised to be the next big small business owner segment. Franchising is a great avenue for them even though currently Latinos own only 5.2 percent of franchise businesses. Franchising gives one a jumpstart to owning a small business with lots of "back of office" help involved.
Canadian based franchisor, WSI, a digital provider of marketing services to small and medium sized businesses, started its push into Latin America in 1997. The company has 25 Latino franchisees in the U.S.,154 in Mexico and 85 in the rest of Latin America. Franchise fees start at $29,700 in Latin America, with a total initial investment between $5,000 and $10,000.
There are also many opportunities for those wanting to spend more family time--or for those who want to work with their family in a business together. Stay at home Mom? There are options in franchising there too. Whatever the scenario, as my friend Jim Amos recently said on the radio, "if every franchisee had the money to hire just one employee there would be NO unemployment in the U.S." Chew over that!!
Nothing Like a Great Franchisee to Tell Your Truth!!
My good friend and terrific franchise attorney Lane Fisher
found this lovely signage on a McDonald's. We don't know
which or where or who owns it. But we do know that
franchisees can be the success or the downfall of every
system!! This one sure has class we'll say that :-). Not
much else to say here. The pic says it all!
A Crisis is the Time You Really Need Your PR Firm
Uh-oh if you are a franchisor or a franchisee the one thing you are in fear of is the thing you can't control. You can screen franchisees and employees as best you can but at any time the worst could happen. The sad news is, at least for the franchisor, it's out of your control. An elder care company had one of their caregivers caught stealing the client's jewelry. One took the 90 year old client's car while drinking (and while client was in the passenger seat) and crashed it into a tree.
But nothing quite smacks of distaste like the story here . Moreover, it states that "this is a good business for child molestors" according to the cops. Not helpful to other franchisors in the same industry who might run a much tighter ship, right? Well I asked one of them. Scott Novis is founder and CEO of GameTruck, the original and longest running video game theater. In fact in 2011 GameTruck was awarded a patent by the United States Patent and Trademark Office, identifying GameTruck’s unique process of entertaining people in its Mobile Video Game Theater. So they started it all!
When I asked Novis how this affected others in this industry he replied "This is terribly unfortunate. At GameTruck we do maximum background checks, not only on our franchisees, but they are required to do the same with their employees. And not just run-of-the-mill background checks, but very deep, thorough ones. After all we are an industry that caters to children. Having said that you can never control every person and every circumstance so we sympathize."
Classy answer. I heard the company involved here fired their PR firm a year ago or so--I bet they regret that now!
From the "Now We've Heard it All" Department
Spilt hot coffee, nuggets shaped like a chicken's head, and now this! What and who will we blame next for our woes? McDonald's employees applied there for a reason. It's a job, yes minimum wage but it's a start. In these times kids and even older adults should be happy to be employed anywhere. Check out last weekend's NY Times Magazine feature called Hello Cruel World about the class of 2011 college grads who cannot find a job anywhere--even as a barrista.
Someone, somewhere will always play the victim and of course a very successful franchisor makes a great target. I have some advice for this hooker who blames McDonald's for her career. Don't forget to get their low-cal meals from now on--you are going to need to stay in shape :-)
This blogger is off to NYC for birthday celebration so won't be posting tomorrow--have a great weekend all.
Good Prospects do Their Due Diligence
Franchises cost money--there I have said it. You pay a franchise fee, and usually a royalty of about 5% and an ad fund fee of 2%. There is a reason this--you are "buying" a name, a brand, or the opportunity to get in on the ground floor of a coming brand--if, and only if, you help the system grow. The training, the tools. the outsourced vendors like ad agencies, PR firms, the baker! This is what you are buying. If you are a new franchisee still struggling go to your franchisor for help and guidance.
Too often about 1/3 of the franchisees in a system (we don't know why but it seems this number is pretty consistent) complain and blame their franchisor for all their problems. Sometimes it was just a case of poor due diligence on the part of the franchisee. They didn't get enough info before they bought--they didn't really see and "feel" the company and the concept--was it something they knew they could do for many years to come? Sometimes not.
A good franchise prospect does their due diligence on the company and with the zees--and now I suggest they should do this on themselves too!! See the lifestyle that might lie before you for 10-20 years. Is this the real you? Your family on board with it? Just because the pretzels look and smell delish doesn't mean you should be selling them after smelling them!! Think things over carefully. Like a marriage, you and your franchisor are in for the long haul--hopefully.
For franchisors who have a lot of these 30%--look into Franchise Rescue Team. Started by attorney Anthony Calamunci, this is a group comprised of several long time franchise experts that will come in for a flat fee and get these franchisees moving up or moving out!
OVER THE TOP seminars are all about franchise leads!
Wow everyone's favorite subject in franchising. Where is the next lead coming from? Can't say it's not on target. In the 80's your biggest problem was getting the right people to qualify the tons of leads coming in. Ah the good old days.
Reality check-there has been a climate shift in franchising for a variety of reasons--not the least of which is 20-30 years later all those people that bought a franchise way back then did NOT succeed and they are the vocal ones. Yes it is not a perfect business model and many who have become franchisees maybe shoudn't have. However it sure beats sitting around in a corporation or on an assembly line waiting for the axe to fall.
Now a very experienced group of experts are putting on one day seminars in fab cities (with food!) on how to put together a terrific lead generating program built for these times. The 3 key players work in 3 different areas but when worked at together could definitely improve your lead stream.
Details of their 3 upcoming events can be found here and you can also go in and register for the event in the city nearest you for a ridiculous $249. I am sponsoring this because frankly it is so reasonable a price for a seminar with 3 people I think have lots of answers. So there ya go!! Hope to see you at Chicago event--where I will also be but the other cities are good too. Do the date and location most convenient for you clearly!!
Above-Chicago at night!
Another Great IFA Convention
Hats still off to Debbie Moss and her amazing team that make the IFA annual convention so cool--I can only guesstimate that there were upwards of 2500 people at this event in Orlando Feb. 11-14 but they make it look easy. An APP that we could download this year and last is BEYOND convenient. You can see at a glance where and when everything is going to be happening then just click on what you want to attend and it makes a little calendar for you. Wish they had that the year I slept through the First-Timers Reception which I was an Ambassador to!! Jim Amos, CEO of Tasti D-Lite, pictured to the left, received the Hall of Fame award, the highest honor one can receive in franchising. Although he left me out of his thank you speech :-) I still adore him and it seems most everyone else does too. No dry eyes in the house as a fantastic video of his young years was viewed along with his military accomplishments and then business. A terrific gala topped the program off with The Franchise All-Star Band (franchise people with REAL talent) and a song dedicated to ME-Unchained Melody sung by the incredible Ron Taylor of Sandler Sales Institute.
First Watch restaurant chain plans expansion
First Watch is growing far beyond its Florida roots. Last week Nation’s Restaurant News reported on the chain’s nationwide expansion plans including recently inked deals for Nashville and Milwaukee.
The country’s largest and fastest-growing, privately owned, daytime-only restaurant company in the United States plans to grow to 115 restaurants, with about a dozen franchised locations open and more than 30 in various stages of development by the end of 2012.
The chain of casual eateries, known best for inspiring menu items such as carrot cake pancakes and the signature, Crepeggs, has enjoyed positive same-store sales growth for 25 consecutive years. Total sales were $83 million in 2009 and $89 million in 2010. Average unit volume is approximately $1.2 million per year.
While annual sales for First Watch have continued to grow despite the recession, other concepts have been hit hard by a decline in the lunch daypart. Packaged Facts said that after a 4% decline in 2009 and another 3% decline in 2010, lunch daypart sales are set to pick up in 2011 which bodes well for the continued success of First Watch.
Money Mizer Franchisees Find Success In Auburn
Brothers-in-law team Hank Richards and Rick Snell decided to go into business for themselves after being affected by downsizing in their respective companies. Snell heard that Northside Pawn owner Robbie Whitten in Phe0nix City, Ala. was looking to expand his business and the idea took off from there.
The Money Mizer Pawn Shop opened in March 2010 at 1027 B-Opelika Road in Auburn, Ala. and has experienced great growth in spite of the recession according the The Corner News. Richards says the best selling items are electronics and firearms and there are some more unique items that pass through the shop including war memorabilia, football rings and even a book of old currency. Future plans may include expanding to an additional location in Alabama. Richards adds, “We don’t yet have one year under our belt, and we are real pleased with the progress.”
Money Mizer currently has three corporate-owned locations in Columbus, Ga. and Phenix City and Dothan, Ala., in addition to the franchised location in Auburn, Ala. The chain expects to sell 10 to 15 franchises in 2011, with 150 locations open by the end of 2015. Prime territories include cities with populations of at least 50,000, as well as college towns and military bases.