Maturity: Emerging
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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 moreDo You Hug Your Franchisees?
Posted by Franchise Grade Team May 16, 2017
The first franchise I worked for, over 35 years ago, was founded by two brothers who started with one franchise and grew it to a network of Convenience stores with 500 franchise locations. The franchisor grew into a publicly traded company and a top franchise. I often say, that I learned the fundamentals of successful franchising from them.
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 moreThe Best Development Strategy for Emerging Franchisors
Posted by Franchise Grade Team March 24, 2017
One of the striking facts about franchising is that 45% of all franchise systems have less than 25 locations and over the last 6 years these systems account for only 3.6% of all franchised outlets opened. These statistics mean that you face a tough challenge. In order to overcome the challenge, you must develop your franchise strategically and it’s not just about having a competitive advantage.
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.
Read moreDeveloping Positive Franchise Relations
Posted by Franchise Grade Team 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.
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