Blog | Franchise Grade Team (12) | FranchiseGrade.com, Inc.

Technology Should Complement Not Replace Franchise Communications

June 6, 2016

There is no denying that technology has enhanced the ability of people to communicate in mere seconds in a variety of ways. However, despite the advantages of enhanced communication, it does raise certain issues, especially as regards the franchise industry.

Franchisors Must Carefully Manage Change

April 25, 2016

Change is a normal part of operating any company whether the company is small or large, franchised or not. Change can come in many forms, whether procedural, which is implemented per the operations manual or marketing changes such as introducing an advertising program or new product. Change can be of a major category such as a franchisor acquisition, a merger or a sale. If the franchisor is publicly owned, this type of information must be disclosed in compliance with SEC regulations.

Vital Franchise Statistics

April 18, 2016

From time to time we’ll publish some important Statistics from Franchisegrade.com that we feel are pertinent to franchisors, franchisees and other participants in the franchise industry.

Establishing and Maintaining Positive Franchise Relations

April 15, 2016

One of the most important byproducts of the franchisor-franchisee relationship is the state of franchise relations, which can range from positive to negative. The most common and immediate measure of franchise relations is derived from a combination of franchisee surveys, franchisor-franchisee litigation and feedback from a franchisee advisory committee or franchisee association.

Franchisor Franchisee Litigation: Perception versus Reality

April 4, 2016

When considering a franchise opportunity, one of the most important items, a prospective franchisee should review is the disclosed litigation between a franchisor and its franchisees. Presented in Item 3 of the Franchise Disclosure Document, this component of the due diligence process has been recommended by franchise attorneys and franchise industry professionals for countless years. There is little doubt that the amount and type of litigation a franchisor disclosed in their FDD can provide insight into the state and quality of franchise relations in a franchise system. However, what it doesn’t reveal is the amount of litigation that’s avoided due to a franchisor and franchisee amicably resolving their differences.

Prospective Franchisees Need to Know Why Some Franchisees Fail

March 24, 2016

There can be a number of reasons why a franchisee can fail and before investing in a franchise opportunity, it’s important for franchise candidates to know the reasons why.

Some Franchisors Neglect the Importance of Market Research

March 21, 2016

There are two primary objectives franchisors seek to achieve! First, the recruitment of qualified franchise candidates and second, growing their franchise network with successful franchisees. However, a number of franchisors neglect another important objective that’s related to the two. This requires having an effective franchise recruitment and development strategy that targets the right markets.

It’s Time to Know Just How Marketable Your FDD Is

March 11, 2016

Using the term marketable to describe a Franchise Disclosure Document might appear to be a misnomer, however, when one considers the relevance of an FDD it may be acceptable to use the term. This is because the FDD not only fulfills a franchise regulatory requirement but also presents a profile and performance summary of a franchise as well as a comparison to other franchise categories and systems.

Franchisors Need to Control Their Franchisee Development Strategy

February 26, 2016

A number of years ago, Subway founder Fred DeLuca was asked to explain his development strategy for Subway. His response was simple: “I want to be where every McDonalds is and to locate as close as possible to them because they have the best site location strategy.” Whether Fred’s comment was serious or not, one cannot question Subways success.

5-Year FTR Comparison of Healthy & Unhealthy Franchise Investments

February 17, 2016

The Top 10%, or Healthiest, franchise systems in the industry had a 5-year average Franchisee Turnover Rate (FTR) of 8.4% while the Bottom 10%, Unhealthiest, almost doubled that FTR with 16.1%.