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!
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.
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!
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!!
I speak from experience. Even if you want to sell forget it. Not the market. So your best bet is to spend a little dough fixing up the home. That's why from where I sit I think home service franchises will have one of their biggest years ever. I have to spruce up my whole house this spring--it was built in 1989--I do a lot of upkeep and the fabulous people from Floor Coverings International really jazzed it up last year putting in new kitchen, carpeting up the stairs and gorgeous tiling around the fireplace. Now it's time for the heavy hitter sister companies Pillar To Post and CertaPro Painters to come in and do the rest of the place.
Even though Pillar To Post is a home inspection team and I am not selling-I am counting on them to give me the tips on what the place needs--let's pretend I am selling!! They can give you the score on what needs to get done and they won't be biased because they have no stake in it. Here is some sound advice from them.
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.
I sure wish I wasn't old enough to remember this company in its earliest days, but alas, I AM!!! This company was founded 35 years ago today by a wonderful man named Rick Gretz. Like all of us in franchising he struggled to build a substantial business. In 1987 Tom Hofer, a successful franchisee in the system came aboard as CEO. The characters of Rick and Tom permeate the whole company and its culture to this day. Good people helping other good people run great franchises. With the help of wonderful execs like Barry Matthews, James Young and Brad Rusin, not to mention the new leadership of Ted Hofer, Tom's son, this company has turned into one of the most quietly successful stories in franchising....Happy Birthday/Anniversary you guys!
After a slow 2 weeks during the holidays we watched as many franchisors declared 2012 is starting off for them so much better than last year at the same time. Great news. Franchising and this blogger have weathered many recessions in the past 30 years but none quite as decimating as this one. Once the housing market is hurting we all are! Just returned from Pillar To Post convention and CertaPro Painters 2 weeks ago and there was lots of joy all around. Awesome, hard working, middle class franchisees all and they seem to have a much more down to earth and less stressful attitude and existence.
Just when I was afraid to go back in the kitchen ala Jaws, I see this fabulous post: http://www.thegoodstuffguide.com/organizing-2011-meet-shelfgenie/ and say, 'hey maybe I can redo this kitchen' AND actually find a place for everything once it’s done. I had vowed to knock out a wall but then, where to put all the excess stuff that was in the cabinets on THAT WALL?
Well, if you are this organized it’s no worry. Also a great franchise opportunity - Shelf-Genie is rocking it all over the country. They currently have more than 100 locations and expect to grow to 150 to 175 franchises by the end of 2011.
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.
Businesses all over the country are opting to install LED lighting in their establishments in an effort to "go green." As a result, Wellington, Fla. based-LED Source, a national and international supplier of LED lighting that specializes in full-scale evaluations and retrofits, is at the top of its game! Bedonna Flesher, owner of Nature’s Table also in Wellington, consulted with LED Source after her employees were complaining about the excessive heat from the halogen bulbs in her café. Ultimately, she decided to replace 60 percent of the halogen bulbs in her business with LED lights.
According to AMEX OPEN Forum, LED lights are 300 percent more efficient than compact fluorescent bulbs and 1,000 percent more efficient than incandescent bulbs. LEDs also last an average of 60,000 hours and use 90 percent less energy. This means business is booming in the LED industry.
LED Source has opened three franchises and has over 20 in various stages of development. President and CEO Marcel Fairbairn explains, “LEDs are one of the very few things that you can buy that makes a huge difference and makes you money. If the entire world would convert to LED, the number of power plants and nuclear plants needed would be substantially reduced.”
According to AMEX OPEN Forum, LED lights are 300 percent more efficient than compact fluorescent bulbs and 1,000 percent more efficient than incandescent bulbs. LEDs also last an average of 60,000 hours and use 90 percent less energy. This means business is booming in the LED industry.
LED Source has opened three franchises and has over 20 in various stages of development. President and CEO Marcel Fairbairn explains, “LEDs are one of the very few things that you can buy that makes a huge difference and makes you money. If the entire world would convert to LED, the number of power plants and nuclear plants needed would be substantially reduced.”
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.