Maturity: Start-up
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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 moreUnchecked Ego Can Lead to Problems for the Franchise Leader
Posted by Franchise Grade Team May 3, 2017
Ego can be used to describe a person's sense of self-esteem or self-importance. Synonyms for ego include pride, self-esteem, self-regard and self-respect. Although ego can be used to denote a negative personal trait it’s a necessary attribute for those who strive to inspire and lead. Ego is usually found in abundance among numerous entrepreneurs. Problems can arise when a leader’s ego dominates issues or actions. Jeff Haden writes: “Ego is necessary and important because it does the work to assemble your personality. It manages your fragile identity while you figure out who you are. It protects you from the onslaught of societal expectations and motivates you to work hard and achieve great things.”
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 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.
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