Maturity: Developing
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Franchisors Check Your Franchise Disclosure Document Math
Posted by Franchise Grade Team July 4, 2017
Among all the Items in the FDD, the tables and related content in Item 20 often receives a cursory review compared to the other Items. Despite this fact, 3 areas in Item 20 garner the most attention: the number of franchisee terminations, new franchise units and the difference between outlets opened and number of outlets at the end of the year.
Read moreDoes Franchise Maturity Make a Difference in Investment Risk?
Posted by Franchise Grade Team June 19, 2017
When someone thinks of franchising, typically they think of national brands like McDonalds or Chick-Fil-A. In reality, over 70% of franchise systems have less than 100 outlets and 45% have less than 25 outlets.
Read moreTop 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 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 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 more10 Components of Franchise Excellence
Posted by Franchise Grade Team 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.
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