Posted by Christopher James Conner on Thu, Feb 02, 2012 @ 02:56
Over the past thirty days, Franchise Marketing Systems have passed some significant milestones. Double digit units, International franchise sales, product development agreements overseas, first time franchise tradeshow exhibitions and more. But the most significant of acheivements in the franchise development business is to have a franchise system sell their first franchise of the concept. In January, the following FMS clients acheived this goal:
Pet's Healthy Choice Franchise - a pet food delivery company based in Colorado.
Never Paint Again License - a painting and outdoor coatings specialist in Michigan.
REDRHINO: The Epoxy Flooring Franchise - an epoxy flooring specialist organization based in Los Angeles, California.
Generate My Ads License - an automotive marketing firm.
Chopple License - a web marketing concept offering discount marketing initiatives through the Internet
Vital Restoration Franchise - a restoration services firm based in San Francisco, California
Each of these businesses has a very unique and different business model and franchise opportunity than one another. It shows the extent to which the franchise marketplace has extended from an industry standpoint, there can be literally a franchise designed for anyone's skill set and investment level.
Why is this such a big deal to sell only ONE franchise?
1. It validates the franchise concept. Until a franchise system has proof that it can be replicated through an independent franchise partner, it is much more difficult to convince the next buyer that they are joining a suitable franchisor. This proves it can be done in a new market and with a new franchise partner, greatly reducing their risk. If handled correctly, the first franchisee can many times become the best referral partner for a growing franchise model.
2. The first franchise sale many times teaches the franchisor as much as it teaches the franchisee how to work with one another. This relationship is based on the delivery of services and support to the franchisee....many times there is a learning curve for the franchisor on how to become a great franchise company.
3. The first franchise is a mental hurdle for most franchisors. If you can get over this obstacle and establish the FIRST franchise, the Second becomes much easier to deliver. The process of building a franchise organization begins with the first partner, once this has been established, the entire process and continuity of growth gets much easier to understand and beleive in.
For more information on how to franchise your business or how to sell your first franchise, contact us: www.FranchiseMarketingSystems.com/FranchiseYourBusiness
Posted by Christopher James Conner on Fri, Jan 20, 2012 @ 10:05 PM
Franchising is a broad-based definition used to describe an independent distribution channel. It is a market that has become an industry by which business models are replicated through entrepreneurial relationships which share proven business models to energetic and enthusiastic entrepreneurs looking for an opportunity. Franchising a business allows a business owner to acheive the following benefits:
1. Growth with less capital. When you franchise your business, the franchisee makes an investment in the business. They will build a location if required, fund the local marketing program and spend the capital needed to get the business off the ground in their market.
2. Infusion of energy and entrepreneurial mindsets into a growing business. Many of the best ideas in franchised businesses came from the franchisees who had bought into the system. Whether it was new technology, marketing, logistics management or the egg mcmuffin, franchisees have helped franchisors build more efficient and profitable businesses for years.
3. Benefit of gaining local "feet on the street". Franchising works effectively because the franchisee, if chosen correctly, will be someone who has influence, experience and a network already established in the market they are opening their business within. An ideal franchisee brings an established network from which to build a customer base and an understanding for how the local market works in order to get the franchised business off the ground in as short of a time period as possible.
4. Speed of Growth - Franchising typically allows for a business to open 3-10 new units per year on average during the initial phases of growth. In later years, as a franchise system matures, larger networks can open and add as many as 300 or more units in a single year through franchise distribution systems. Franchising allows for fast growth over long distances in far away markets.
5. Operational Efficiency - Why is it so difficult to manage employees in locations that are farther away from home base? It's simple, when there is no one with an ownership stake in the business operating the location, the business will never operate as efficiently. Franchised units have consistently outperformed company-owned units in many franchise systems including Dunkin Donuts, McDonald's and others. Franchisees have put their own capital into the business and want to see as much profit as possible come back to them for their investment.
Not all businesses can or should enter the world of franchising. For an initial consultation and discussion regarding whether your business is ready for franchised distribution, contact us:
info@franchisemarketingsystems.com
(800) 610-0292
Posted by Christopher James Conner on Mon, Jan 02, 2012 @ 09:34
Franchise Development - When is the Right Time?
More than 750,000 franchised business locations are spread across the American business landscape. All together, franchised businesses generate more than $1 trillion in sales. A new franchise business opens somewhere in the U.S. every 8 minutes each business day. Franchising is arguably the most efficient and leveraged way to expand a company in today’s marketplace.
When a business owner is considered whether to franchise a business, the question often arises , “should I franchise after having only one location in operation or is there a need to open additional company owned locations prior to offering franchises?”
This is a question with no “right answer”. There are as many business decisions have, two ways to approach the question. One from a more conservative standpoint and the other from a more aggressive standpoint.
As you may have guessed, the aggressive business owner franchises before opening additional location for the following reasons:
1. Opening additional company owned stores pulls the owner further into the “operating” side of the business. You have a tendency to work more as a manager and less as a business owner.
2. The cost of opening additional company owned stores slows the growth and development of the business. Many times, an additional company owned store will take several years to break even from a cash flow standpoint and requires too much capital to justify the investment.
3. Stores where the owner is not present on a regular basis often produce less operating cash flow because of increased management expenses and decreased operating efficiency.
4. In the same amount of time that it takes someone to open a company owned store, several franchised locations could have been opened successfully.
5. They see a limited window of opportunity to capture a market and build the brand on a regional or naitonal scale.
The more conservative business owner looks at whether to franchise a business differently. They prefer to have additional company owned stores open prior to launching a franchise program for the following reasons:
1. They want to confirm that the concept works in other markets and it isn’t successful only because of where the store or business is located.
2. A business owner would prefer to prove that the concept can be replicated successfully with the same standards of operation and quality service when they are not present at the location overseeing the day to day operations.
3. More company owned locations proves to a franchisee that the concept has been proven and is more stable.
The fact is that a good business system and operating model is either in place or it is not. Whether it has been replicated 1, 2, 3 or 30 times over is irrelevant if the system works and has been proven. How many franchise systems have been launched with only one operating location in place?
1. Wetzel’s Pretzel’s – The California pretzel chain was founded in California using an oversized pretzel sold through a retail location. The concept was quickly successful and sold the first franchise to a family member. Today, the chain has over 175 locations.
2. Auntie Anne’s Soft Pretzels – Not to get too “over-pretzeled”, but here is another example of a franchise success story that started with one location. Anne Beiler sold her delicious pretzels from a cart location going from festival to fair around Pennsylvania. Upon starting a successful trend in pretzel’s throughout the area, her next locations were all license partners – seven of them – until she converted to a franchise system.
3. McDonald’s – The biggest franchise of the all started with one location prior to launching the franchise model. The McDonald’s brother famously founded the concept in San Bernandino, California and sold the franchise rights to Ray Kroc. Mr. Kroc then proceeded to sell franchises to the balance of the State of Illinois and then the rest of the world.
4. H&R Block – The tax franchise was born in Kansas City, Missouri out of an idea to offer discounted tax services. When the brothers decided to move to New York, they sold the original location as the first franchise of H&R Block. Today, the tax service company has a network of over 12,500 locations consisting of both franchised and company owned stores.
There is no right or wrong way to approach the franchise industry, it all comes down to how fast a business owner wants to move in growing a business and a brand. For more information on how to franchise your business, contact us: (800) 610-0292.
Posted by Christopher James Conner on Sun, Dec 25, 2011 @ 09:38
The Holidays are coming to a close for 2011 and many of us will wonder what hit us as Christmas and the last of the celebrations come to completion. The question now is what happens in 2012? How do we as a business owner change our pace of growth and add that thing extra ingredient that was missing in 2011 to acheive the next level of growth and expansion?
In my ten years working in the franchise development field as a franchise consultant, franchisor and franchise manager, it has become clear that the first quarter of each year is consistently the busiest in franchising. There is more activity, franchise sales, new businesses franchising and overall business throughout the franchise industry than during other times of the year.
Why is this the case? People start the new year looking for change. They see the coming year as a time of opportunity for them, their family, their lives and their businesses. Professionals who have been working in a career for decades with boring or unfulfilling day to day responsibilities make the decision to do something about it and begin looking into starting their own business and taking control of their financial future. People look for tax returns to help fund their investment in a new business, time off work and with the family reignites a sense of desire for being able to spend time with family and start to manage your own schedule. The Holidays are a time of dreaming, vision and creative thought. People have a chance to get out of their day to day "rat race" and start to think about big picture ideas. One of these in many cases involves starting a new business.
This is where the world of franchising comes to play in many people's lives who have not operated or started a business of their own in the past. They are in some cases overwhelmed by the idea of what it takes to start a new business and see franchising as the key to their successfully doing this. With a franchisor's guidance, a proven business model and a brand that carries some value, they have the necessary assistance to be successful on their own.
Franchisors can benefit from this increase in entrepreneurial activity by having the right concept, packaging and offers that fit the current demand come spring time. The average franchise lead generation site increases in traffic by more than 30% during the January-March time frame. If a franchisor is putting a franchise concept in front of buyers during this time, they will inevitably receive more traffic and views than during other times of the year and as a result sell more franchises.
Businesses owners that are considering franchising and whether to franchise your business many times take this opportunity at the start of a new year and launch franchise programs, searching for new franchise partners to expand a proven business model into new markets and build market share. By taking the opportunity of increased interest in entrepreneurialism during the start of the year, the increase in sales during a new franchise's launch can greatly increase the likelihood of widespread success for a franchisor.
Maybe this year is the year for you and your first step to building your future. Franchising is merely a vehicle for growth; As both the franchisee and the franchisor look to make 2012 a better year, possibly franchising is the key.
For more information on how to franchise your business or how to buy a franchise, contact us: (800) 610-0292 / info@franchisemarketingsystems.com
Posted by Christopher James Conner on Wed, Dec 21, 2011 @ 08:28 PM
Pet Franchise Growth - Reasons Why
Over the Past Ten years, the pet franchise industry has exploded with numerous large, successful and strategically focused pet franchised businesses. Dog walking franchises, Pet Boarding franchises, Pet Grooming franchises, Pet Food Delivery franchises and even Pet Poop franchises have developed thousands of units across the entire United States which have each brought branding, structure and profitability to the business segments.
The Pet Franchise Business is Big - why? Because lots of Household own pets and lots of Americans spend a great deal of money on their pets.
Number of U.S. Households that Own a Pet (millions)
Bird 5.7
Cat 38.9
Dog 46.3
Equine 2.4
Freshwater Fish 11.9
Saltwater Fish 0.7
Reptile 4.6
Small Animal 5.0
Pet Franchises have grown in numbers because of the dollars being put into the industry. With the growing numbers of dollars being spent on people's pets, more and more pet franchises have successfully grown in numbers and units.
In 2010, $48.35 billion was spent on our pets in the U.S. Breakdown:
Food $18.76 billion
Supplies/OTC Medicine $10.94 billion
Vet Care $13.01 billion
Live animal purchases $2.13 billion
Pet Services: grooming & boarding $3.51 billion
With this surge in spending on pets have come an amazing array of Pet Franchises that have successfully branded the industry.
Aussie Pet Mobile - Mobile Pet Grooming franchise
Camp Bow Wow - Dog Day Care franchise
Fetch! - Dog Walking franchise
Pet Butler - Pet Waste Removal franchise
The Pet Franchise industry is big...and getting bigger. Not only is the Pet Franchise business a lucrative one, but people also enjoy the idea of spending their time working with pets, the things they love and something they are truly passionate about. There are so many opportunities throughout the Pet industry and so many different Pet Franchises, for more information on Pet Franchises and which ones may be a good fit for you, contact us:
info@franchisemarketingsystems.com
(800) 610-0292
Posted by Christopher James Conner on Fri, Dec 16, 2011 @ 05:11 PM
The hair care business is a big business. In the U.S., the hair service and product industry produces over $19 Billion a Year in annual revenues. This is shared between over 65,000 beauty salons and just over 5,000 barber shops. About 45% of these are franchise hair salons and represent the enormous hair industry segment of franchising. Why is the hair care business such a big industry even when times are tough and it would seem that most people wouldn't have the funds or disposable income to spend on having their hair done?
Number 1: We care about what we look like. Since the beginning of time, humanity has been obsessed with looks and vanity has no limits to what people will spend to look their best. Even in difficult times, people will spend to look good, including having their hair done.
Number 2: More and more hair salon franchises and hair care businesses are changing the service offering to one that offers a strong value to the customer. Whether it be the franchised hair care chains like Great Clips or Fantastic Sams which offer $14 hair cuts, or newer chains that focus on the ethnic hair care segment like The Weave Shop, people appreciate value and want a good bargain in services.
Number 3: The Hair care business is a good, strong, profitable business model in most cases. A typical 1,100 square-foot salon with about 10 or 11 styling stations typically takes about an $80,000 investment to set up, and once established, will average about $270,000 in annual revenues. After 18 months, the salon will return 17 percent to the bottom line. Regis management projects that the hypothetical average salon will have $20,000 in receivables and returning 76.5 percent on a cash-to-cash investment basis.
Number 4: The growth in Franchise hair care businesses has exploded over the past ten years which has brought big time branding, advertising and business development to the industry segment. With companies such as Supercuts, Great Clips and Fantastic Sam's, the national franchise chains have grown to 1,000's of units. In addition, more specialized niches in the hair care franchise segment have developed such as Sport Clips, The Board Room and American Male. Each of these growing franchise hair care brands have developed the market further for hair care services to expand.
The hair care business will continue to grow, this is a service that can never be outsource to another country, people will always want to look good and the business continues to prove profitability and strength as an operating model.
For more information on hair care franchises or how to franchise your hair care business, contact us for a free consultation: (800) 610-0292 / info@franchisemarketingsystems.com
Posted by Christopher James Conner on Wed, Nov 30, 2011 @ 06:29
Franchise development is a unique and exciting way to build an organization. International businesses have been developed over short periods of time using the power of franchising. When an organization is going through this process of locating, qualifying and developing franchise partners, there are many nuances involved in effectively adding to a franchise network in addition to efficiently managing the support and back-end system delivery. Franchising is a business about relationships, when marketing and developing a franchise system, a good franchisor develops branding, marketing models and good qualification models to create relationships with potential franchise partners. Great franchise systems select only the most qualified franchisees and keep the network of partners full of the most talented and committed professionals available.
Once the franchise partner has been selected and joined the system, it is then time for the onboarding process to begin. A good franchise system has great training models and a process that has been defined down to the minute as it pertains to how the franchisee will get from signing the franchise agreement to "opening their doors" and launching the new business. Training should include both a substantial amount of corporate training at the franchisor's operating headquarters where franchisees are able to spend time in both a classroom setting and in the field working with experienced trainers. A good franchisor will always visit the franchisee at their place of business as part of the training program. Typically this will be done during the first week or two weeks of business so that during the most stressful and difficult time for a new business owner, they have someone to ask questions and lean on. Franchising in many cases is as much about inspiring and lending confidence as it is delivering business processes.
After a franchisee has opened the business and started to operate, the support and "back-end" systems should be in place to deliver an ongoing relationship and value proposition to the franchise partners. A franchise system's ability to generate and consistently collect franchise royalty revenue is a direct correlation to the support and management ability of the franchisor. Good franchise systems will have great cash flow and consistent royalty collections from each of the franchisees. In today's market, a franchisor must be using technology in virtually every facet of their franchise business operations. Cloud based franchise technology solutions are available for managing the entire franchise process and allowing for efficient, scalable connectivity with franchise partners.
For more information on how to franchise your business, contact Franchise Marketing Systems: info@franchisemarketingsystems.com
Posted by Christopher James Conner on Fri, Nov 18, 2011 @ 06:26
Every few years in the franchise industry, a new trend develops that creates and defines the marketplace for small business and franchising. Over the past seven years, the Frozen Yogurt Franchise has defined and excited the entire franchise community.
The concept of Frozen Yogurt originally appeared on the franchise marketplace in the 1980's with large chains such as TCBY and Heidi's. Frozen Yogurt franchises opened on every corner across the United States in markets from Los Angeles to New York. During the 1990's, the number of Frozen Yogurt franchises diminished as quickly as they appeared and virtually everyone left the market. In 2005, the concept re-emerged through the founding of Pinkberry Frozen Yogurt.
Shelly Hwang and Young Lee founded Pinkberry in Los Angeles, CA. Hwang's first business venture was to open a formal English teahouse on a tiny residential street called Huntley Drive in West Hollywood, California. However, after the city refused to approve a permit for Hwang and her business partner, architect Young Lee, they decided to go with their second plan, which was a frozen yogurt franchise concept. People were soon driving across town and standing in line for hours in some cases to get their fix of the frozen yogurt craze. The second Pinkberry store opened in September 2006. Pinkberry has since launched a successful franchise expansion program allowing the organization to expand to metropolitan markets throughout the United States and abroad. On October 16, 2007, Pinkberry accepted a $27.5 Million investment from Maveron, the venture fund founded by Starbucks founder Howard Shultz, to expand the firm's concept even further.
With Pinkberry's success came a myriad of competitive Frozen Yogurt franchise concepts. Yogurt Land, Menchie's, Red Mango and others followed into the Frozen Yogurt boom. The market continues to expand at break-neck speeds today seven years after Pinkberry was born. For an initial investment of between $250k - $500k, many of these stores represent strong financial returns if placed in the right locations.
For more information on Frozen Yogurt franchises and how to buy a franchise, contact us:
(800) 610-0292 / info@franchisemarketingsystems.com
Posted by Christopher James Conner on Wed, Nov 09, 2011 @ 04:21
Franchise Marketing Systems Clients Continue to Set the Bar for System Growth in 2011.
As the trend away from big business, corporate America continues across the country, more and more individuals are choosing the freedom of entrepreneurial routes that allow for them to build their own future in a business where they call the shots. Franchising allows for this transition from an employee to a business owner with the support and guidance from a proven mentor and team of professionals in the franchisor. Franchise Marketing Systems clients have seen this growth directly during the past year.
The Weave Shop – The fastest growing African American Hair Care business in the Country continues to expand into new States. This time it’s North Carolina with two locations in Charlotte, NC. Two strong franchise partners have just joined the franchise system to take the brand into the Charlotte Market. The Atlanta stores have just recently formed the Atlanta franchise Co-op which will allow them to advertise as a group and the new candidates continue to come to the franchise system on a daily basis looking to join the growing brand.
Ink Ur Body Tattoo Salons have gotten off to a quick start. One month into franchising and the franchisor has signed two franchise partners to open locations in the New Jersey market. Ink Ur Body has developed a unique and systemized business model to deliver clean, professional and high end tattoo services to customers.
Caring Matters Home Care continues to grow at an enormous pace. The In-Home care provider has been offering franchises for nine months and has added eight franchise partners to the organization in that time. Caring Matters is unique in the In-Home Care business in that they focus on government funded home care services that focus specifically on people who are underserved. New franchise partners are located in key markets in the Northeastern and Midwestern U.S. This past week, the company held the first franchise meeting with all franchisees in attendance in Baltimore, MD.
Flower Tent recently held its third annual franchise convention in Wyoming, PA during October. In attendance, there were over 60 franchisees, strategic partners and other team members. Flower Tent had 57 tents in operation in 2011 and has already signed on an additional 10 tents this year. The organization is aiming to have between 75 and 100 tents in operation in 2012.
Rollin To Go Italian Deli has recently opened the third licensed store in Bergen County, New Jersey. The store is owned and operated by a team of professional investors who saw the opportunity in the growing fast casual field for high end sandwiches and fast casual dining. The license partner in New Jersey is aiming to open ten stores in the New Jersey market.
CFO Systems has recently added its second license partner. The Omaha based financial leadership services group has added license partners in the West Texas market and now in the San Francisco markets. By providing premium, high-end outsourced financial leadership services to organizations, the CFO Systems business has grown enormously over the past five years.
DJ’s Couture has recently signed its first licensed partner in the Washington D.C. market opening up a great region to the music entertainment services that the company delivers so effectively. The company is in discussions to open locations in Orlando, FL and Gainesville, FL as well with qualified license partners.
Ducerus College Planning Specialists has recently signed on a new franchise partner in the Orange County, California market.
PHWS signed a new franchise partner in the North Dakota market to take advantage of the booming housing growth taking place with the shale development there.
Midway Tax Service has signed on two new franchise partners for the 2012 season who will open an additional 3-5 stores in the St. Louis and Atlanta markets.
Mosquito Terminators has had three new franchise partners join the organization over the past two months. These partners are based from the Midwest to the Northeastern United States and are slated to open an additional 3 to 5 territories for the 2012 season.
For more information on how to franchise your business or on any of the Franchise Marketing Systems clients, contact us:
www.FranchiseMarketingSystems.com
(800) 610-0292
Posted by Christopher James Conner on Thu, Nov 03, 2011 @ 08:12
Every year, there are countless franchise tradeshows and events that are opportunities to get a new franchise concept in front of interested franchise buyers. The franchise tradeshow calendar is full of opportunities to sell and market a franchise model. In 2012, the franchise tradeshows available cover the country and offer opportunities to market effectively and establish that first relationship with your next franchise partner.
Tradeshows vary in their effectiveness depending on the franchise model and the concept being marketed. Some shows have considerably less traffic than others, but still can be effective when marketing to a specific target marketplace. Here is a brief overview of the franchise tradeshows for the first part of 2012.
Franchise Trade Shows for 2012:
January 14 & 15 /2012
The National Franchise & Business Opportunities Show
Toronto, Ontario
Metro Toronto Convention Centre
The Franchise & Business Opportunities Expo
Boston, Massachusetts
Shriners Auditorium
January 20th – 22nd
Franchise Expo South 2012
Views: 759
01/20/2012 - 01/22/2012
Miami Beach Convention Center
1901 Convention Center Drive
Miami, FL 33139
(305) 673-7311
January 28 & 29 /2012
The National Franchise & Business Opportunities Show
Winnipeg, Manitoba
Victoria Inn Hotel & Conference Centre
The Franchise & Business Opportunities Expo
Oklahoma City, Oklahoma
Cox Convention Center
February 11 & 12 /2012
The National Franchise & Business Opportunities Show
Halifax, Nova Scotia
Exhibition Park
February 18 & 19 /2012
The Franchise & Business Opportunities Expo
Raleigh, North Carolina
North Carolina State Fairgrounds
March 17 & 18 /2012
The National Franchise & Business Opportunities Show
London, Ontario
London Convention Centre
The Franchise & Business Opportunities Expo
Cleveland, Ohio
IX Center
March 31 & April 1 /2012
The National Franchise & Business Opportunities Show
Vancouver, British Columbia
Vancouver Convention Centre
The Franchise & Business Opportunities Expo
Jacksonville, Florida
Prime Osborne Convention Center
April 14 & 15 /2012
The National Franchise & Business Opportunities Show
Montreal, Quebec
Palais des Congres
The Franchise & Business Opportunities Expo
Minneapolis, Minnesota
Minneapolis Convention Center
April 28 & 29 /2012
The Franchise & Business Opportunities Expo
New Orleans, Louisiana
Pontchartrain Center
May 19 & 20 /2012
The Franchise & Business Opportunities Expo
Phoenix, Arizona
Phoenix Convention Center
June 2 & 3 /2012
The Franchise & Business Opportunities Expo
Houston, Texas
Reliant Park
June 15th – 17th
International Franchise Expo
New York, NY / Javits Center
November 2012
West Coast Franchise Expo
November 4th – 6th
Los Angeles, CA
For more information on how to franchise your business and how to market franchises effectively, contact us: 800-610-0292 / info@franchisemarketingsystems.com