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Top Franchises Know Their Competitors
Posted by Franchise Grade Team May 9, 2017
Having good competitor intelligence is important for selling new franchises and growing existing franchisee revenues. One major difference between the top franchises and the rest of the franchise industry is that the top franchises have an in-depth understanding of their competitors. Knowing which franchises are a threat to your franchise network development requires diligence and acquiring the right information. This means knowing who your competitors are - their strengths and weaknesses. I often hear comments from franchise executives that their franchise system is unique and impervious to competition. As my marketing professor told our class many years ago: “No one owns the market.”
Read moreHow Data Will Help Sell More Franchises
Posted by Franchise Grade Team May 1, 2017
When selling a franchise, franchisors need to provide the prospective franchisee with the right information needed to make an informed decision and a carefully drafted Franchise Disclosure Document (FDD) is a key component of the process. To be a top franchise, prospects need to be convinced that the franchise you’re presenting offers the best opportunity for success.
Read moreEmerging Franchise Systems Have Potential for Growth
Posted by Franchise Grade Team April 28, 2017
To develop a top franchise, a franchisor needs to offer a financial opportunity for prospective franchisees with a minimum of risk. To fulfill this objective requires the following:
Read moreHow Small Franchises Can Grow Without Getting Big
Posted by Franchise Grade Team April 13, 2017
Although it can be challenging for a small franchise (those with less than 50 units) to achieve the size and scale of the larger systems, it doesn’t mean that a smaller system can’t be successful. In some cases, a smaller system has certain advantages over large systems. For example: more available territory, the appeal of a new, undiscovered franchise opportunity, the chance to begin on the ground floor.
Read moreSix Major Mistakes of Emerging Franchisors
Posted by Franchise Grade Team March 27, 2017
There are over 500 start-up and emerging franchisors competing for only 3.6% of all new franchise sales. This situation makes it challenging for you to build your franchise system to sustainable levels. Many franchise founders start their franchise with a great deal of optimism and have invested significant money to build their franchise system only to find themselves with less than five outlets, three years later.
Read moreFranchisors Should Avoid the Danger Signs of SBNO
Posted by Franchise Grade Team 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).
Read more5 Tips That Should Be a Part of Any Franchise Evaluation
Posted by Franchise Grade Team 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.
Read moreFinancial Disclosure is More Than an Item 19
Posted by Franchise Grade Team 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.
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