Blog | Franchise Grade Team (5) | FranchiseGrade.com, Inc.

Franchisors Should Avoid the Danger Signs of SBNO

March 9, 2017

In the franchise industry, the sale of new franchises is often used to measure the strength of a franchise program. Fast growth franchise programs may be considered a predicator of success and some franchises have grown to thousands of locations. However, they represent a small percent of all franchises. This type of fast growth can lead a franchise program into trouble. An indicator of this can be found in the Item 20 category of the FDD, under Sold but not Opened (SBNO).

Don’t Mix the Consumer and Franchisee Candidate Message Together

March 6, 2017

The challenges of two marketing messages as a franchisor (one to consumer, one to franchise investor). How most franchisors try to replicate the consumer messages to attract investors (and fail).

10 Components of Franchise Excellence

March 1, 2017

Throughout the years, storied franchise programs have shared common attributes that separate these systems from the rest of the franchise universe. These top performing franchisors adhere to specific operating principles and follow best practices that are an integral part of their franchise program. These components are exclusive of size and should be a part of every franchise both large and small.

Answer These 5 Questions Before Buying a Franchise

February 24, 2017

Anyone that’s considering buying a franchise and investing their money should answer five important questions before making, what for some, is a life altering decision. When people invest in a franchise it has to be for the right reasons. If they fail to do this, they can end up being the owner of a failed franchise business, which can cost them their investment and more.

5 Tips That Should Be a Part of Any Franchise Evaluation

February 23, 2017

Here are 5 tips that should be a part of any franchise evaluation. An important activity when purchasing a franchise is evaluating the franchise opportunity. This key step in the franchise process starts as soon as you choose franchises that match your profile and generates your interest. Evaluations continue right up to the execution of a franchise agreement. During the evaluation process there will be countless conversations with franchisor staff where you’ll have the opportunity to ask numerous questions. Here are five items that should be included in any franchise evaluation. If you’re considering a start-up franchise a number of these items will not apply.

5 Benefits Home Care Franchises Provide

February 23, 2017

There are several reasons why home care franchises have enjoyed success over the past several years. Home care franchise systems continue to grow with new franchisors entering the scene.

Developing Positive Franchise Relations

February 15, 2017

Franchise relations is a term used to define the state of the relationship between a franchisor and its franchisees. In addition to growing the franchise network and increasing sales and profits, building positive franchise relations is one of the more important activities that franchisors deal with.

Financial Disclosure is More Than an Item 19

February 5, 2017

Providing franchise candidates as much financial disclosure as possible can enhance the franchise selection process and prevent future franchisee problems. It can enable franchise candidates to more accurately construct a pro-forma financial statement and cash flow projection.

Franchisors and Franchisees Should Manage Change

February 5, 2017

Change is an important component of all business relationships and this is particularly true in franchising. When significant change is considered or takes place it’s important that the franchisor and franchisees are capable of conducting their business without disrupting their relationship. In addition, change should consider the needs and objectives of both parties.

Franchisee Training Resources

February 3, 2017

Nearly every business in the franchising industry has its own vaunted pool of industry-specific “training resources”. For example: The restaurant industry has the National Restaurant Association (www.restaurant.org). Their training programs cover everything from training for the general manager to the people who actually prepare and serve the food. But there are also training resources for those who may not have decided on an industry to jump into; resources that can give you a bit more insight into what it takes to become a franchisee; to help with your decision-making. A couple of favorites: