Blog | Franchise Grade Team (13) | FranchiseGrade.com, Inc.

How to Become a Successful Franchisee

February 8, 2016

Whether you’re a franchisee or franchisor, we need to recognize that when a franchisee fails, it impacts the specific franchise system and to a lesser degree the franchise industry.

The Most Critical Time in the Life of a New Franchisee

January 31, 2016

In my experiences I’ve had the opportunity to observe a number of franchisee startups in several different franchise systems. One conclusion I drew from this experience was how important the first ninety days are to a franchisee startup. An important factor to this time period is the amount of support the franchisor provides to a new franchisee. When evaluating a franchise opportunity, a prospective franchisee needs to include the amount of services and support they can expect to receive during their grand opening and startup phase, on their checklist. This includes sample press releases, marketing materials, advertising support and on-site assistance.

Top 5 things a Franchisee Association should be doing today to be successful!

January 22, 2016

It's no secret that Independent Franchisee Associations are extremely helpful in providing education, performing research and advocating for Franchisee interests. However, Franchisee Associations are typically ran by Franchisees themselves, who shy away from operating it as a business.

Franchisee Candidates Need to Evaluate the Franchisors Corporate Culture

January 21, 2016

There are numerous activities that relate to the process of evaluating a franchise opportunity. These activities include; reviewing the FDD and especially the franchise agreement, gaining feedback from franchisees and analyzing the performance of the franchise system. However, one area that doesn't get the attention it deserves pertains to the culture of the franchisor. Corporate culture begins with franchise leadership and works its way throughout the organization. The importance of corporate culture applies to all companies, with the exception that franchisees rely upon the franchisor to provide the vision, guidance and support necessary to operate a healthy franchise system.

Planning your Future: A Prospective Franchisee's Exit Guide

July 16, 2015

A new franchisee must necessarily create a very detailed business plan for getting the new business from a great idea to a functioning, operating, profitable, and successful franchise. A critical but sometimes overlooked component of that plan is an “exit strategy”, which addresses two basic scenarios: Best Case and Worst Case.

Records Retention: What To Do As A Franchisee

July 13, 2015

As a new franchisee, one of the first things you’ll be doing is amassing a physical and virtual mountain of paperwork – documents which comprise the vital records required for your new business. In fact, creating these records begins as early as the Franchise Disclosure Document (FDD) you receive from the franchisor, and the resulting Franchise Agreement (FA) that seals the deal between you and the franchisor. These two are but a small component of the franchise records you will be required to maintain during the entire lifetime of the franchise and beyond.

Working Capital Requirements

June 10, 2015

A critical but often misunderstood category in the Franchise Disclosure Document is Additional Funds or working capital which is the last category in Item 7 – Estimated Initial Investment. Most franchisors provide an Additional Funds or working capital amount of three months. These funds are estimated to cover expenses to operate the franchise during the initial period of operations.

Does Franchising Need Reform?

May 30, 2015

Does the franchise system need to be reformed? Before answering that question how much do you know about franchising? Listen in as Josh Brown discusses very interesting statistics from FranchiseGrade.com.

Does an FAC or IndFA Add Value In A Franchise System?

May 28, 2015

A franchisee advisory council or an Independent Franchisee Association may provide value in other ways such as engagement with the franchisor, preventing costly litigation, a forum for dispute resolution, sounding board for the introduction of new products or services by the franchisor and a vehicle for assessing the attitude of the franchise network.

Annualized Costs Of Initial Franchise Investments

May 12, 2015

One of the leading causes of franchisee failures is undercapitalized franchisees. Being able to more accurately predict the financial requirements of a franchise investment and compare the results to available investment capital can lower the risk of being undercapitalized.