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Making a Case for Mandatory Item 19 Disclosure
Posted by Franchise Grade Team July 13, 2016
The US Securities Act of 1933 (the Securities Act) requires that the disclosure filing of a registration statement with the Security and Exchange Commission and the distribution of a prospectus in connection with the Initial Public Offering for investors must contain certain financial statements and other financial information regarding the issuer’s financial condition and results of operations.
Read moreStartup Franchisors Need to Preserve Capital
Posted by Franchise Grade Team June 20, 2016
After having recently attended the 2016 International Franchise Expo, I was struck by the number of startup franchisors exhibiting and extolling the benefits of their franchise opportunity and was impressed with a number of the franchise concepts. If some of these franchisors have the proper leadership and necessary capital (emphasis on capital) I believe they can develop successful franchise programs. A number of these startups are built upon a foundation of multiple corporate locations, which is an important predictor of future franchise success. However, an important requirement for a successful startup franchise system is having enough capital to fund the growth of the franchise.
Read moreTechnology Should Complement Not Replace Franchise Communications
Posted by Franchise Grade Team June 6, 2016
There is no denying that technology has enhanced the ability of people to communicate in mere seconds in a variety of ways. However, despite the advantages of enhanced communication, it does raise certain issues, especially as regards the franchise industry.
Read moreProspective Franchisees Need to Know Why Some Franchisees Fail
Posted by Franchise Grade Team March 24, 2016
There can be a number of reasons why a franchisee can fail and before investing in a franchise opportunity, it’s important for franchise candidates to know the reasons why.
Read moreFranchisee Candidates Need to Evaluate the Franchisors Corporate Culture
Posted by Franchise Grade Team January 21, 2016
There are numerous activities that relate to the process of evaluating a franchise opportunity. These activities include; reviewing the FDD and especially the franchise agreement, gaining feedback from franchisees and analyzing the performance of the franchise system. However, one area that doesn't get the attention it deserves pertains to the culture of the franchisor. Corporate culture begins with franchise leadership and works its way throughout the organization. The importance of corporate culture applies to all companies, with the exception that franchisees rely upon the franchisor to provide the vision, guidance and support necessary to operate a healthy franchise system.
Read moreWhat’s the Right Royalty Rate?
Posted by Franchise Grade Team December 15, 2014
Most franchisees pay franchisors a royalty, typically set as a fraction of the franchisee’s gross sales, in return for using the franchisor’s brand name and business format in the operation of their businesses. This royalty rate varies substantially, even across franchisors in the same industry. So how do franchisors decide what royalty rate to charge?
Read moreHow to Inspire Loyalty and Boost Your Staff Retention (Part 1)
Posted by Franchise Grade Team December 12, 2014
A business succeeds or fails because of the people involved.
Read moreWhat Drives Your Desire?
Posted by Franchise Grade Team December 5, 2014
When was the last time you were obsessed with something?
Read moreThe Power of First Impressions
Posted by Franchise Grade Team December 3, 2014
First impressions are lasting. Frontline hourly employees are not. Before they’ve been on the job just six months, over 50 percent are gone. Some were probably not a good fit for the job in the first place, but some productive, dependable, hard-to-replace employees bolt too.
Read moreKnowing Your Break-even Point
Posted by Franchise Grade Team November 24, 2014
One of the biggest mistakes entrepreneurs make is not knowing the amount of sales required to break-even. This is especially true with start-up business. So very often start-ups and in a lot of cases, established businesses, take on too much overhead too soon in anticipation of future sales. Before taking on more overhead costs, you must determine your sales break-even point.
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