Tag Archives: franchise for sale

Franchise Trends: Know How to Maximize Success

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Unlike having your own business, choosing to purchase an existing business franchise provides entrepreneurs a strong foundation to start their careers. If you are thinking of choosing this option, you have to have an idea on the franchise trends for your franchise to become successful.

1. Milennials

According to Franchising.com, the millennials are outdoing the Baby Boomers to become prominent players of consumerism. As millenials begin to join the workforce and build their own families, it has become necessary for franchise operators and independent business owners to target this group. Learning more about this market’s growing demands and needs can provide you a head start when you purchase a franchise for sale.

2. Baby Boomers

Baby Boomers may be nearing retirement now however according to Franchising.com this group can still be targeted in a new way. An aging generation, new demands and needs are starting to grow such as healthcare franchises. These franchises are becoming even more popular as the group starts looking for additional support and assistance. If you’re in need of a market keep the Baby Boomers in mind.

3. Multi-tier Models

One of the methods you can do to make your franchise business successful is by making use of multi-tier models according to Fox Business. This means that you do not only operate a storefront but also make use of the mobile and internet world to expand your market and maximize your profits. With this method, prospective franchisees are now able to welcome the opportunity to gain more profit through several means.

4. Veteran entrepreneurs

For the returning veterans who are in search of business opportunities, a career in entrepreneurship is the ideal choice to have as reported by the SmallBizTrends.com. The increasing number of soldiers returning home left many individuals looking for employment after serving in the military. To help these people, VetFran organization introduces veterans to promising franchise opportunities. If you are able to meet the qualifications and are interested in owning a small business, then you will find plenty of help available. Over 2,000 veterans have already benefited from the program.

Whether you want to run your own business franchise sooner or later in life, being attentive to the franchise trends now and then can increase your chances of having a successful business. Being equipped with enough knowledge on the various changes in the franchising industry can provide you the edge among your competitors in the market.

How Important is Your Franchise’s Location?

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The state of Arizona is among the fastest growing locations in the US when it comes to starting business franchises such as retailing businesses. This is the reason why the Togo’s Eateries sandwich franchise in actively recruiting a number of franchisees in the Arizona area and other key states in the Western region.

The goal of Togo’s Eateries is to increase their number from the 250-unit franchise to 400 restaurants in the year 2015. The franchise is taking the first step to realize this goal by developing its three locations in the Maricopa County in Arizona.

According to Togo’s CEO and chairman Tony Gioia, the franchise company is ready to introduce their large made-to-order sandwiches to the areas of Tucson and Phoenix after the company’s fantastic growth in 2012 and its six quarters of fantastic store sales. Gioia stated that the company is searching for passionate and dedicated entrepreneurs who want to join the enterprise team and help the company grow regionally.

US Franchise Soon

Big Smoke Burger, a gourmet burger chain based in Toronto eyes an even larger expansion. The franchise company aims to establish their presence in the US. The chain is aiming to set up a total of 50 restaurants in the areas of Chicago and New York City. Franchisee Anthony Fauci has recently signed a deal to open and operate the first New York City franchise location.

The Ideal Location

Securing a franchise funding and establishing an excellent business plan are as important as choosing the right location. Locations can greatly affect the success of the franchise operation. According to the Franchise Help, careful analysis of a potential business franchise location should include the following: identifying the major franchise trends and calculating the expenses and costs of the location rent and utilities. Aside from these things, a franchisee should also consider several aspects of the business operation such as the zoning restrictions, opportunities for advertisements like billboards and off-premise signs, availability of parking spaces within or near the franchise store, and the proximity of the store to other franchisees or competitors.

Entrepreneurs and business franchisee owners should remember that strong competitions do not necessarily equate to an unsuccessful business operation. This is especially true if the brand of the franchise for sale is one that is popular and widely recognized.

Spending more time researching on the business franchise is important before any franchise expansion can be done, whether the region targeted is within a city, a state, or even outside the country.

Blaze Pizza Fires Up Franchising

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Blaze Pizza, established just last August 2012, debuts this year into selling franchise opportunities for its fast-fired, custom-built “artisanal” pizzas. The first Blaze Pizza franchisees will be developed in theLos Angelesarea under an agreement with Sajha LLC, and one of these outlets is scheduled to open this spring of 2013.

Based inIrvine,California, Blaze Pizza is the brainchild of the couple Elise and Rick Wetzel, the same minds behind the Wetzel’s Pretzels franchise. Members of the restaurant chain’s executive team were also part of the development of the Buffalo Wild Wings and Chipotle franchises for sale.

The concept of their pizza venture revolves around pizzas baked in two minutes with the customers choosing the ingredients they want. An assembly-line approach enables patrons to customize a signature pizza or to create an original of their own. The customers can choose from an assortment of fresh, artisanal toppings, most of which can be picked at no extra charge. Then, each of the customer’s orders is “fast-fired” in an open-hearth, blazing-hot oven that can bake a standard eleven-inch, personalized pizza in less than two minutes.

Special dough recipe

An executive chef, BradfordKent, developed a special recipe for the dough exclusively used in Blaze Pizza. Customers with specific dietary needs are likewise offered choices of gluten-free dough and vegan cheese. The restaurant’s menu also includes signature salads, beer and wine, lemonades, and homemade pies for dessert. There’s also an option for customers to prepare their own salad, choosing the greens, homemade dressings and toppings that they want.

Company-owned outlets in Irvine and Pasadena served as the springboard for the Blaze Pizza franchise. Its Irvine location operates as a subway-style pizzeria near the University of California campus. Registered in thirty-four states for franchising, the restaurant chain plans to grow its franchise footprint this year to a total of fifteen locations. Its priority target markets for expansion include not only San Francisco and Los Angeles but also New York,Chicago,Denver,Miami, and Boston.

The Sajha LLC which is developing the three Blaze Pizza franchise stores in Southern Californiais headed by Sandeep Bhakta and Kamal Patel. Their team has over twelve years of experience in operating nationwide franchises; among these are Which Wich Sandwiches and Cold Stone Creamery. Bhakta, chief executive officer of Sajha, said that they were impressed by the quality of the Blaze Pizza concept’s execution and by the depth of experience of its corporate team.

Looking Back at the 2012 Franchise Year

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The franchise industry has its ups and downs in 2012. While there were major hurdles during they year, franchise opportunities remained rewarding for those who successfully navigated tight credit, high unemployment rates, calamitous weather, legal and regulatory challenges, and political uncertainties. Some of the events that helped shape the year for those whose fortunes are tied to franchises for sale include the following:

The debt restructuring for Quiznos: This financially distressed sandwich chain relinquished over 70 percent of its ownership stake to one of its major lenders, Avenue Capital Group. All creditors of Quiznos approved the debt-for-equity deal, thus enabling the company to avoid a Chapter 11 bankruptcy filing and to reduce by about $170 million its total $870 million debt obligations.

Snap-on Tools tops Forbes list: The “Top 20 Franchises for the Buck” ranking of Forbes magazine installed Snap-on Tools as its No. 1 pick. The criteria for the choice are average initial investment, total outlets, closure rate, U.S. outlet growth in the last three years, and training hours spent in relation to start-up costs. The magazine evaluated data from 110 established franchise brands. Others in the honor roll from second to fifth, respectively, are 7-Eleven, Aaron’s, Panera Bread, and ServPro. Dunkin’ Donuts, previously No. 1 in the list, slid to 13th place.

Coverall slapped $3-million in damages: A Massachusetts federal district court ruled that the franchisees of Coverall, a Florida-based commercial cleaning services franchisor, are classified as employees not independent contractors. Under the court ruling, the misclassified franchisees could collect treble in damages representing workers’ compensation, franchise fees, other work-related insurance premiums, and attorney’s fees dating back to 2006. Another Massachusetts federal judge later used the Coverall decision as a precedent in imposing liability on another janitorial franchise, Jani-King, for the misclassification of employees as franchisees.

JOBS law signed: President Obama signed the Jumpstart Our Business Startups (JOBS) Act. Existing and prospective franchisees are expected to benefit from this new law through enhanced credit access. Among other things, JOBS allows crowd-funding and lifts the advertising ban on private securities offerings to wealthy prospective investors.

Obamacare upheld: Salient provisions of the Affordable Care Act (Obamacare) was upheld by the U.S. Supreme Court. The International Franchising Association (IFA) immediately decried this decision as analogous to the Mayan calendar doomsday scenario as far as the fate U.S. franchising industry is concerned.

Burger King’s backdoor listing: The fast food franchise, taken private in 2010, became a publicly traded firm but shied away from Wall Street’s traditional initial public offering. Instead, Burger King entered a special merger with an affiliate of an investment company based in U.K. which is already listed in the London Stock Exchange.

The Perks and Quirks of a Franchise Resale

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One of the appeals of getting a franchise for sale is that it presents lesser risk compared to putting up a new business or a new franchise.  Franchise resales are the more popular choice when it comes to franchise businesses with 7 out 10 acquired in the past two years.

Things to Consider When Looking into a Franchise for sale

  • Look at the history of the franchise and the franchisor
  • Find out the reason why the franchise is being sold
  • Get an accountant to study the digits inside its books to get a bigger picture of what you might be getting into
  • Find out what’s included in the asking price

Advantages of a Franchise Resale

  • A franchise resale already has its own existing customers.  Its brand name already exists and has its own reputation that means less marketing effort to get noticed.
  • An established business will have a history of records that can be used to track and project profitability.  It will be easier to get funding for a business that already has a good track record.

Disadvantages of a Franchise Resale

  • Expect that an established business will have a higher cost than starting a business of your own.  You are not only paying for the stocks, equipment, and location but you will also be paying for its trade secrets and the loyalty of its customers.
  • If you got on to a business franchise that has garnered a bad reputation then it may take some time, effort, and money to turn things around and improve the situation.  You may have to bring out more money before you make money from this business.  This is why a thorough investigation of the franchise is recommended. Although a franchise is an easier way to make money it’s not fullproof plan.

Despite the disadvantages of a franchise resale this is still the common route taken in acquiring a low-risk and readily-established business the fast way.

When Should You Consider a Franchise?

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Turning a business into franchises for sale is one short cut to expansion. This is because it is the franchisees who will put up the substantial amounts of capital investment in setting up new business branches or outlets. With retailing businesses, it is possible to open multiple branches one after another.

Besides its being less capital-intensive, selling of franchise opportunities is much less cumbersome to handle in terms of human resources management. All that a franchisor would need is a small staff in an equally small head office to maintain a network of franchisees. These head office employees will be responsible in organizing and training the crew or manpower of branches of outlets, the hiring and management of which will be handled by the franchisees.

More commitment too can be expected from a franchisee than an outlet or branch manager. Franchisees are not only committed financially to the business. They also have an emotional stake, as most often, it will be a test case for them on how to start a business. Franchisees will put that extra push for the business to succeed.

Branch or outlet managers, on the other hand, may not be as well-motivated. As salaried employees, their only concern may be achieving mediocre success for as long as they have job security and perhaps some marginal pay increases along the way.

A franchise for sale, however, isn’t a solution for a floundering business. The franchise, to start with, has to be based on a business model that has proven itself to be successful and can be replicated. In effect, it’s garbage in, garbage out if a bad business model is the basis for the franchise opportunities offered in the market. A failing business that is franchised will only breed a whole bunch of branches or outlets whose bottom lines wallow in the red.

It is therefore a given that mere business ideas cannot be successfully franchised. These may be copyrighted, but there’s all there is to it. A business concept, first and foremost, has to have a proven track record of success, which should be the platform for franchising that concept. There’s no chicken-and-egg quandary when it comes franchises for sale. A star performer of a business endeavor has to exist first.

It is also vitally important to conduct a SWOT (strength, weaknesses, opportunities, threats) on a successful business that is being considered for franchising. If a business concept’s success relies solely on a particular market site or location or to the inimitable talent or expertise of its owner, then it is unlikely to achieve much success as a franchise for sale.

Holiday Shopping for Franchises

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The new year automatically equates to a promise. It is the best time to re-organize and well, start new things. For entrepreneurs like you, it’s the perfect season to look for franchise opportunities.

Before you exert all energy for all your celebrations and shopping, ensure that you include franchise for sale in your must-have list. It’s practical to start spending on an investment. Remember, a successful business venture enables you to have an opportunity to have bigger shopping funds next year. How fun would your next new year be!

Start to have your own business with a franchise. What’s the advantage of having one? Well, for starters, a franchise for sale already has an established brand. The formula for its service or product offerings have been perfected already. All that you need to do is implement that system. Unlike when you start a new brand, franchises enable you to already have brand awareness and visibility. In short, you won’t start the business from scratch.

So now you know all the advantages, the next question would be how to select the best ones.

The first thing you should consider is your passion and interest. No matter how winning or successful a brand franchise is, it won’t work if you are not even into it. The rule of thumb is to choose a franchise that you love, and will love. Simply put, go for ones that you are deeply passionate about.

Another thing to look for in all franchise opportunities  you are considering is the requirement of the business. Do you want one that has set hours like the typical 9 t0 5 job? Or do you prefer working on particular timeframes? This also boils comes up when you’re considering the franchise to be a full time venture. If it’s for part-time purposes, different considerations would apply.

Also, you should know the direction you want to take. There are franchises that wouldn’t require you to have employees. Others though have a different setup. Take a look at where you are most comfortable.

How much you are willing to invest both in time and money is a major consideration. Your investment threshold already dictates and limites franchise choices. Consider though that different franchises have varying timeframes for ROI even if they have varying levels of investments required. You might want to go for ones with smaller investments so you wouldn’t have too much risk even if it takes longer to get profits. While it’s enticing to look at the possibility of getting bigger profits, examine also if there are more risks and bigger investments involved.

In the event that you feel trapped with the choices, do a comparative analysis. You can always rely on franchisegator.com to give you good insights. Our range of available franchises would surely give you a few ones that could spart your interest. Cross-check your considerations before making a decision. It would surely enable you to have a clearer understanding of your franchise venture. Only then can you make a decision that will leave you that assured and rewarding feeling.

Cinnabon: The First US Franchise For Sale To Open In Libya

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With Libya recovering from the civil war which erupted back in 2011, several investment groups are now eyeing this Middle Eastern country as a possible location to do business. Earlier this year, the first US franchise for sale, Cinnabon, was successfully put up in downtown Tripoli.

Compared to other Cinnabon franchises for sale, this branch is fairly large with a surface area of 7,500 square feet. The bakery-café is situated in one of the busiest streets within Tripoli’s business district, and has attracted truckloads of customers during its opening earlier in July 2. During the store’s first week of operation, the company says it was able to generate $45,000 in sales.

Focus Brands International, the parent company of the Atlanta-based bakery, has already amassed over 900 locations in 51 countries. Moreover, it plans to open four more Cinnabon branches in Libya within a span of ten years.

“Ultimately, we think there’s an even larger opportunity in the country for us,” says Mike Shattuck, president of Focus Brands International.

According to Shattuck, his company has received numerous inquiries from Libyans pertaining to different franchises for sale. Out of the numerous brands offered by the firm, the Cinnabon franchise for sale received the most inquiries.

“They were already familiar with the brand and wanted to bring it to Libya,” said Shattuck. “We were in every major market in the Middle East. Expanding into Libya made sense as part of our emerging market strategy.”

Original plans of the Cinnabon push were actually scheduled as early as the first quarter of 2011 – franchise partners were already selected, as well as a suitable location.

However, the civil revolt erupted without warning as the first shipment of products was on its way, thereby causing a delay with the establishment’s opening date. “We quickly halted everything because the revolution happened,” said Shattuck. “Fortunately we were able to secure the location and it made it without serious damage.”

Aside from Focus Brands International, there are other firms looking to bring their franchises for sale to Libya. Chuck Dittrich, executive director of US-Libya Business Association, says that American business interest in growing within this country.

“In the new Libya, people are seeing franchising as an opportunity to become entrepreneurs,” said Dittrich. He went on to explain how acquiring a franchise for sale could give any individual a better shot at operating a commercial establishment successfully for years to come.

Franchise Opportunities: Protecting The Business’s Trade Secrets

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When it comes to running businesses within certain industries, the environment can quickly move from hard to real tough upon the arrival of other commercial establishments. While looking at the various franchise opportunities, and selecting a particular franchise for sale a businessman should try to buy a franchise in something they know really well. A person can surely gain a strategic advantage over rivals by knowing about a franchise’s trade secrets.

A trade secret is generally defined as any type of information that gives the owner the “upper hand” over its competitors. Moreover, the info is unknown by everyone else, and isn’t easily ascertainable by other groups or individuals. For clearer understanding, a great example of a trade secret would be the formula used in the creation of Coca Cola products – nobody except the giant corporation knows the formulation of these beverages, and it gives them a significant advantage over their rivals.

However, if the secret recipe were to be disclosed to other groups, they could just as easily reproduce Coca Cola beverages and sell it to the target market. In addition to this, getting a patent on the formula would be out of the question, since the information a patent protects must become public knowledge after a patent expires in twenty years.

So before buying any franchise for sale, it’s best to closely examine the measures taken by franchisors of various franchise opportunities to protect their trade secrets.

With that said, before sealing the deal with any franchisor, see to it that the trade secrets are itemized in the franchise agreement. This may include things such as recipes, formulas, programs, techniques, processes, etc.

The agreement should also state that the items classified as trade secrets are being licensed to the franchisee, instead of being sold. Additionally, for the security of all franchisees, the agreement should state that the franchise owner is prohibited from “reverse engineering” all items categorized as a trade secret.

Having the contract include arguments which stress the importance of keeping the secrecy of trade secrets would definitely be helpful. It should also include statements, which reflect the significant value of every trade secret, and how it provides every franchisee with a competitive advantage over competitors in the industry.

The inclusion of statements similar to the ones above in the franchise agreement can help safeguard the franchise’s trade secrets. There are of course, additional details that should be stated within the contracts when screening potential franchise opportunities and ultimately acquiring a franchise for sale.

Franchisees Should Help Promote Positive Franchise Relations

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Most franchisees are placed under the impression that the responsibility of fostering healthy relationships amongst the franchisees and the franchisor are solely dependent on the latter. Many individuals like to examine the different franchise opportunities, select a franchise for sale, and work on running it themselves without exerting personal initiative to promote positive franchise relations.

The usual programs that a franchisor sets up to develop stronger relationships with and amongst its franchise owners includes meetings, publicizing individual franchisee accomplishments and a bunch of other activities which further improve the relationship status.

Not taking similar measures can lead to a wide array of issues, including the magnification of problems or disagreements within the company, negative impacts on systematic growth, hinder new franchise sales, plus more.

Since all franchisees and their franchisor have a financial stake in the relationship, it goes without saying that the former should exert some effort of their own to further improve franchise relations. The potential for larger and more stable income associated with a franchise for sale (and all franchise opportunities in general) can grow if the interested buyers are willing to work with one another in a positive manner.

With that being said, one way to foster better relations is done by setting up a franchise advisory council (FAC) with the help of the franchisor. In the event the franchisor refuses, franchisees have every right to form a FAC independently.

The main purpose of this organization is to meet with the franchisor on a periodic basis, and discuss any issues, system problems, overall company operations plus other concerns they may have pertaining to their business.

By pointing out any of these perceived flaws, effective solutions may be brought about, thereby further improving the overall efficiency of the franchise company as a whole.  Ideally, the franchisor should be in-charge of appointing the officials of the FAC and play an active role as well. Nevertheless, the council should be formed with or without the franchisor.

The second thing franchise owners can do to help is relay any important suggestions they may have to the franchisor staff. If the suggestion is plausible, practical, and beneficial for everyone’s well-being, then there’s no reason for them not to listen.

Third and last course of action franchisees should take is to call for a meeting in the instance that a dispute between the franchisees and franchisors take place. Letting such issues spin out of control will eventually lead to legal action, which can be a problem for everyone.

When it comes to checking out the different franchise opportunities, and ultimately purchasing a franchise for sale, it’d be extremely helpful if all franchisees play roles in fostering better relationships amongst themselves and the franchisor.