February 2019 – Franchising POC

Franchising Your Business

Posted on February 25, 2019 by blogger

Answering the phone, paying the bills, waiting on customers, ordering, attracting new customers, training staff, adding product, handling complaints. They’re all part of your day. All are part of working ‘in’ your business. It’s time for you to start working ‘on’ your business. What are we talking about?

You sell products and/or a service and you readily recognize these as the merchandise of your trade. But did you ever consider that your business itself is a product too! When you ultimately decide to sell for retirement, or to pursue other interests, such as converting your hobby into a money making venture, your business is the ‘product’ you sell to the new owner. Is this product ready?

Consider the vast world of Franchising. Whenever a franchise is sold, the item purchased is a business; a specific way of doing business that perhaps includes a logo, color scheme, jingle or slogan, and maybe a recognized mascot. When we think of franchises we logically recognize the concept of a ‘business as a product.’ It’s time to think about your business in the same light. What can we learn from this fresh perspective? And how might this work ‘on’ your business, help you working daily ‘in’ your business?

I’d be willing to bet dollars to doughnuts that if you consider this franchise model, comparing it to your current operations for just 15 minutes, you will think of multiple ways to make your business more productive and therefore more attractive to any potential buyer.

The franchise’s most distinguishing feature, the one thing that sets it apart from all other businesses is its turn-key nature. It is ready to go, ready to be replicated over and over again. How is this possible? It has all been documented. Because of this scripting, results are predictable. The franchisor can say, “I have a product (a business) to sell you. Let me show you how it works.” Can you do this with your business? Could you step away today and have another be equally effective with your business? And just how would they do that?

It is directly because of this recorded channeling effort, their uniquely singular focus on operations of the franchise model that the consumer gets the very same product in Pittsburgh as Paris, Chicago as Cairo. Geographic multiplication is the natural notion we harbor when thinking of the franchise. But this replication applies just as effectively to the single location experience. Are your customers receiving the very same experience one after another, day after day? What value would it be for your business to have this level of control over results?

Documenting informs all on staff what is expected of them, who they report to, and how things are done in your business. It is the who, what, when, where, why, and how that makes your business unique. Why does a customer choose you over the competition? Do you know? Can you commit to writing the reasons why with certainty?

Written text informs suppliers of what is expected as well. A famous hamburger purveyor learned that French fries sometimes ended up soggy even though they were cooked exactly the same way, time after time. Since the oil and cooking temps were constant, it just had to be something about the potatoes. The moisture content of the soggy fry spuds was tested. Potatoes with moisture content in excess of 23% yielded a soggy fry.

This experience allowed them to provide suppliers with notice they would accept no spuds with such high moisture content. Simply stated, “You want to do business with me? This is how you keep me as a customer. This is what I want.” The supplier is genuinely pleased to know how to keep this customer happy.

This scripting idea may conjure up feelings of a company manual the size of the U.S. Internal Revenue Code. You may also shelter thoughts of you having to record it all this week. If so your imagination has the better of you. However, you can prove the value of the franchise model to your business knowledge now, particularly if you never seem to have enough time.

Over the next week keep a list of all the chores, the tasks, you personally find yourself committed to as a business owner. Add a check mark for each additional time you are called to perform that task. Merely making a mental note won’t work. At week’s end you’ll benefit greatly from the visual confrontation a physical record provides. The more detail you supply, the more valuable your list.

At the conclusion of your experiment, review the evidence of where you spent your time. With a critical eye, ask yourself what assignments should be occupying your time? As opposed to those which actually did occupy your time. Think about the specific tasks and functions that lend themselves to delegation? As you pose questions regarding this experience, be aware of what you are doing. Considering tasks that can be delegated and choosing the assignments you need to concern yourself with; these are the process of defining your position, contracting the focus to the critical path that really matters in your line of business.

Congratulations! You are now working ‘on’ your business. You are shaping, forming, and creating the product that is your business. The sharpened focus the process develops obviously makes you more effective working ‘in’ your business as well.

This little exercise can be repeated in most areas of your business. It will help isolate problems as well as recognize opportunities. A recorded outline form is sufficient. No doubt you will make modifications as time goes on.

The process helps you create a turn-key operation: one that gives you time away from the grind stone. If you’re with me, you realize the greater opportunity created is that now, documented your method of operation, your unique product – your business – can be replicated. You could be the franchisor, selling your business model to others. As long as you can demonstrate convincingly, “I have a product (a business) to sell you. Let me show you how it works.”

Franchising OM Templates for the Expansion of your Business

Posted on February 22, 2019 by blogger

Need to franchise operations manual templates for a change of your business career?

Well, when thinking for the Franchising OM Templates, you are reading now the right article. The templates are designed to take the trouble out of the franchising your business as well as to provide you with a simple solution to the often more complicated and the long process in business, not to mention its high-priced costs. Here’s what Franzomm.com does: They have more years of experience in the franchise industry and they interpret completely the needs and resources to grow your business.

Consequently, we can assess that franchising is really one of the popular ways of expansion for business in the world today. It already existed for a very long time but just now that it made its debut in the world market. Franchising as a business system in the US is very effective because although it accounts for only 8% of the total in retail business, it garners over 40% of the total retail sales.

There is several factors in the success of franchising a business. Firstly, is the brand name particularly if you are Franchising OM Templates. In nowadays’ consumer market, the brand name worth a lot. Every year, billions of dollars are spend on advertising and marketing the brand name of companies. This is because good brand names mean consistency, quality and having consumer trust. With the almost unlimited of the choices in products as well as services of globalization has brought into the world market, the brand names has given the consumers the privilege of dependable, the quality and the consistent of products and the services.

The second and perhaps the most important is the proven business system a franchise can offer you. Statistically, it demonstrates 90% of all start up business fails within the firstt five years of the operations. This happens because new business owners must fight against time, they should study so much and do much in order to get business off the ground before they run out their capital.

Of course, the franchise chains bear much greater buying power over the single businesses. This means that you will be able to utilize of raw materials and equipments for a much lower price than if you were not in a franchise. Add this to the available support system that you will profit when you enter in a franchise and you will have an idea of an amazing corporating power in a franchise system. That’s why, when you are in a franchise system, it’s like that you’re in a family where in the competition’s end, it’s not only a competition against yourself but likewise against in a nationwide of powerful organization.

Finally, why not try Franchising OM Templates now so you can spread out your business career. Because of this expansion, you will obtain the chance to gain more profits.

Franchising Mistakes To Avoid

Posted on February 16, 2019 by blogger

A franchisee must be a sound business person. Even if its about food or cosmetics for a franchise to be a success it is important for the franchisee to have sound business sense and keep the franchise on track.

There are many aspects to running a franchise and the success of a franchise can be assured if mistakes are avoided.

According to people in the industry the most common causes of failure of a franchise business are:

1. Signing a contract without legal counsel or understanding the fine print. It is important to comprehend clearly what clauses 1-23 of the Uniform Franchise Offering Circular or UFOC mean. Be smart read the document and make a list of questions you want answers to. Ensure you are in agreement with everything before you sign and use any negotiation skills you have to your advantage. A franchise business must benefit both franchisor and franchisee.

2. Not doing the foot work to determine whether the franchise has any chance of success or not. Find out all about successes and failures. Ask about litigations and more. Make the effort to contact other running franchisees and ask about problems encountered. Get a clear picture.

3. Miscalculating finances. New franchises need capital to set up things and get the business moving. These include finding allocation, refurbishment, equipment costs, salaries, training, promos and more. When planning finances its important to think of the impossible and include costs of insurance and more.

4. Taking an unviable business loan. Very often its not a good idea to take the first loan offered. There is a need to think of returns, interest, pay back tenure and more. Use expert help to get the best support at the lowest costs. Often paying for a good consultant will save thousands of dollars later.

5. Failing to build a rapport with the franchisor and his /her key personnel. For a franchise to work you need a good relationship with everyone; the sales people, the field representative, the district supervisor, the marketing people and others who hold a franchise of the same franchisor as you. If your instinct tells you there is not much substance below the surface, avoid the business.

6. Analyzing business potential and entering an already saturated market. Study the lay of the land and also find out whether there is a need for your kind of business in the location specified by you. Success needs potential and uniqueness. Being one of many in a small area waters down possibilities of profit.

7. Taking into consideration personal aspects like health and family responsibilities. It is important to know you can burn the candle at both ends until the franchise runs well. You have people you can depend on and are in good health. Thinking the unthinkable makes sound business sense.

8. Ignoring clauses in the contract that refer to breaking the contract etc. pay attention to each and every aspect; consider what will happen to the franchisee if you are hospitalized or die.

9. Taking up a business on an impulse without requisite skills. It is crucial to know whether franchising is for you. A business needs long term commitment and cannot be abandoned on a whim.

10. Not creating a sound business plan. To avoid losses its important to monitor the business from day 1.MIS systems will help nip problems in the bud. Close monitoring and staying ahead of competition are required 24/7.

Use resources provided by the World Wide Web to educate yourself on the franchising business secrets and work models. Be determined to be a pro franchisee.

Five Alerts To Franchise Fraud

Posted on February 13, 2019 by blogger

For the new investor, not having to start a new business from scratch offers significant advantage, both in time taken to earn a return and in initial investment cost. Marketing costs are expected to be reduced. Of course its in the interest of the franchisor that quality franchisees succeed and the franchisor support offered is a quantifiable attraction. How does that investor reduce the risk of fraud in the due diligence process?

The relationship of the investor franchisee with the franchisor will and must be ongoing. As with any contractual arrangements it should go without saying that both parties to the contract must honor it. Disputes arise in the best of relationships and some may give rise to litigation initiated by either party on the basis of fraud Here are five key areas where possibilities for fraud may exist to destroy the plans of the franchisee from the commencement of contract. Some will be familiar to the first time investor as a risk for an entrepreneur; but all warrant that second take.

Make sure to look only at quality franchise offerings. The new to franchising investor should forget the passion for a particular business and try to be more objective. Just as too popular franchises will be more expensive, may be subject to passing fads, or have fierce competition alongside the sales territory defined in the proposed contract, there are the few franchisors that are known to someone as sharp operators. Every franchise offering could have a number of unhappy, unsuccessful franchisees who may claim to be subject to fraud A strong internet search should be done and, if done on behalf, not stop at page one Google. . Speak to Franchisees. Is there a pattern to the complaints? If the complaints make the investor uncomfortable this is an alert to move on to another option. The relationship with the franchisor must be built on trust and respect.

There should be a check whether the franchise principals have any history of litigation. Disputes over failure to perform can arise from either partys perspective. Franchising is a very litigious business and most franchise companies will have some history of legal actions but its important to separate fact from fiction (as the internet is filled with both). Was the franchisor looking to enforce their agreement to protect the brand and the system, or were they taking advantage of the franchisees? It is important to the franchisee to understand the competition. The investor`s lawyer may alert the investor to signs of undue competition. But what if the competition represented in various initial discussions about marketing does not in fact exist? Are there other flags of fraudulent practise of which the investor should be aware?

Franchisees must go in with eyes wide open. Use of detached, competent and professional help to draft the franchisee`s own business plan and research on earnings forecasts is an essential step as a protection against fraud on the part of the franchisor especially internationally where FTC type protections are non-existent. Breakeven analysis and less optimistic scenarios must be included and the investor should not place o reliance solely on the information provided by the franchisor, no matter how well known that particular franchise may be. In lower cost and lesser known franchise offerings, earnings performance may relate to the strengths and skills of the buyer; then again an optimistic earnings scenario provided to the potential investor may also be a flag of fraud. The investor should prepare a detailed assessment of initial investment costs and compare that with the data which must be requested from the franchisor.

There is a greater risk inherent in considering a start up franchise. It is in the interest of the inexperienced would be franchisee to choose a business for due diligence with a track record over a minimum of 4 to 5 years, with a minimum number of currently operating franchise units. Should the support and expert advice of a franchise consultant not be sought out at an early stage, there will be a need for basic legwork such as visiting the head office of the franchisor and viewing the training material for oneself.

To quote an old adage, the devil is in the detail, even before a study of the draft contract is the next step. Researching important detail early in the due diligence process will make the intended franchisee less concerned about the possibility of fraud. They should be comfortable with the quality of training and support provided, where it will be provided and for how long. A promise to send on the material later should be regarded as just that, a promise, and should be made good promptly. Delays in the provision of any paperwork agreed to be provided should alert the would be investor and their advisors and the franchisor challenged at an early stage in the process.

MatchPoint Franchise Consulting Network was founded in 2006 with a mission of helping companies expand their franchise networks and improve their system profitability. Its mission included improving the quality of new Franchisees coming into a system. From its inception it was clear that complimentary advice offered to franchise buyers on the web site and by MatchPoint consultants is vital to the would be franchisee to enable a better, prudent, buying decision. The advice offered by our consultants does not make us lawyers, rather it is there to help bring all advice offered to the potential franchisee in the due diligence process to a high level of quality.

MatchPoint consultants trained by Nigel Mayne know the red flags of fraud in the industry. It takes the very few franchisors that practice franchise fraud to taint the dream of the franchisee. That`s where seeking the independent advice of an expert franchising consultant is prudent and invaluable.

Used Gold Franchising, Business Opportunities In The Financial Crisis

Posted on February 8, 2019 by blogger

A difficult economic period like the one we are going through right now leads inevitably to a general decrease in revenue within many industries and sectors, although it also leads to the growth of certain types of businesses that benefit from the newly-adopted behaviors of consumers and from the ever changing needs that appear during a moment of crisis.

Among these growing sectors is the used gold franchising. Peoples need of liquidity and also the increasing value of gold in the financial markets as a stable good against the uncertainty of the markets make it so that activities dedicated to buying and selling this valuable good be among the most profitable to launch.

In combination with the franchising formula, the opening of an establishment specialized in the acquisition of old gold is an alternative worth evaluating if you are thinking of setting up your own business. As it happens for every new company, the initial investment is always the hardest step, but for the nature of the sales point and thanks to the know how transferred from the franchisor, a buying and selling gold business has lower than average set up costs and faster return of the investment.

It is precisely in the knowledge the franchisor transfers to the franchisee that lies the true force of this model in the gold and valuable goods industry. The set of techniques, methodologies and processes is given to the affiliate who benefits from a training period that yields not only general business management skills but also specific abilities required in an industry like that of used gold in which precision and deep knowledge of the product are essential.

Moreover, the reputation and brand image of the franchisor act as a guarantee in front of consumers. Especially in an industry as complex as that of used gold in which trust plays a truly important role, starting off ones business backed up by a consolidated brand is a huge competitive advantage.

Franchising is therefore a solid basis on which you can build your gold business, one that cannot but evolve in the current market conditions. With many unreliable alternatives for buying and selling valuable goods now in the market, the physical business with name and surname offers the security the rest cannot provide. Far from the solutions that promise immediate cash in exchange of used gold after unilateral evaluation of its worth even through postal means, the used gold franchised point represents the most reliable option for those who wish to find a serious, honest interlocutor with whom the transaction reflects the true, real market value of this valuable metal.

There are many firms that have traditionally worked in this industry that now see an opportunity for growth in the ever increasing demand of gold through the franchising formula. Consider the biggest and most reliable brands in the market and ask for details about their affiliates plans to find out if used gold can be a source of profit for you too.