Month: October 2020

Tips on How a Franchise Brand Can Become a Top-Performer in the Franchising Industry

Posted on by Franchise Strategist

How a Franchise Brand Can Become a Top-Performer

By Ed Teixeira.
VP Franchise Development FranchiseGrade.com , Author, Franchise Expert, MA Economics, Industry Partner of Stony Brook University Center of Entrepreneurial Finance, Pace University Lubin School of Business Advisory Board

For a franchise brand to become a top performer, franchisors must adhere to certain operating principles. One of the most important ones is to grow the number of franchise locations to promote the franchise brand. In the case of certain well-known franchise brands, system size alone doesn’t always convert to a top performing franchise brand.

Franchisors that want their franchise to be recognized as a top brand need to follow a set of building blocks that can serve as the foundation for a successful franchise system. Utilizing these building blocks will strengthen the franchise program, provide its franchisees the best opportunity for financial success and help establish the franchise brand as a top performer.

1. Equitable franchisee ROI must be a priority

The foundation of the franchise program operationally and financially must provide franchisees an opportunity for success that does not require extraordinary performance. If franchisees follow the franchise program and do not earn an ROI commensurate with their original investment, then the franchise may be flawed.

2. If the franchise program is flawed, then it must be fixed

Franchisors should adjust a franchise program that isn’t “working.” There is no reason why a royalty or advertising fund contribution can’t be changed. If certain products or services aren’t successful, then find alternatives. Conduct franchisee surveys to measure franchisee satisfaction levels.

3. The franchisor must control the franchise sales process and adhere to its ideal franchisee profile

Establish a franchisee profile and if franchise candidates don’t fit this profile say no! If the franchisor utilizes brokers, the franchisor must maintain control over the franchise sales process.

4. Be transparent with prospective franchisees

Provide prospective franchisees full disclosure about the franchise opportunity and what’s needed to be successful. The franchisor sales staff should act as more consultant and less salesperson.

5. Franchisor leadership must be engaged in the franchise operation

Franchisor leadership should be accessible and involved in the franchise operation, so they are aware of franchise system performance. There shouldn’t be surprises when it comes to franchisee performance.

6. Franchisee input should be solicited for important operational and marketing strategies

Significant changes or alterations to franchise operations and marketing, should involve the franchisees. This can be done using the FAC, advertising committee or other representative body.

7. New products and services should be evaluated and measured by franchisees before introduction

The franchisor should test new products, services or equipment in representative franchisee locations before introducing them. This process leads to objective and credible results that will earn the franchisees buy-in.

8. Obtain financial results from franchisees on a regular basis

Use franchisee financial statements to identify individual and collective franchisee performance. A lack of important financial information prevents a franchisor from knowing which franchisees are profitable and which are not.

9. Uphold and protect the integrity and standards of the franchise program

It’s critical that the franchisor uphold the standards of the franchise. The franchisees that follow the program deserve it and the customers that use the product or services provided by the franchisees are entitled to consistency. Franchisors that don’t protect the brand are not respected by their franchisees.

10. Invest in franchisee training and support

Top notch franchisors have viable and effective training programs. Training and support don’t end with start-up franchisee training but should be a continuing activity. When franchisor staff identifies weaknesses in the execution of franchisee operational practices the Training Department should implement programs to address these problems.

To build a top- performing franchise program franchisors can use these 10 building blocks, which requires implementing policies, practices and procedures to improve franchisee performance and success.
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Learn more about the author and Franchise Grade:
Ed Teixeira. VP Franchise Development FranchiseGrade.com , Author, Franchise Expert, MA Economics, Industry Partner of Stony Brook University Center of Entrepreneurial Finance, Pace University Lubin School of Business Advisory Board

How Do You Write A Good Brand Story

Posted on by Franchise Strategist

How Do You Write A Good Brand Story
By Jon Allo  

Your brand story differentiates you from everyone else. Otherwise, you’re just one more solution for the same old problem that customers can choose from, and usually without a standout differentiator they’ll base their choice on price. Most of the time, you do not want customers to choose you based on price alone. You want them to choose you because you’re you.
Telling your unique story starts with these questions:

When, Why and How Did You Start?
The best way to show authenticity is to be able to tell your audience when, why and you started doing what it is that you do. If you can tell your story in a way that your audience relates to you, and even roots for your success – even better.

How Do You Want Customers to View You?
As you write your story, it’s important to convey your values and ideals in a no-nonsense way. While you may be frightened of turning off some people, you really don’t need to worry about that. Those people aren’t your audience. Your audience consists of the people who can relate to your story, share your values, and want to be part of it.

Where Do You See Your Business Down the Line?
This is where you’ll try to dream big, and let your audience know where you see your business in the future. It also gives you the opportunity to refine consumer expectations toward what you offer rather than what the competition offers.

How you answer these questions is important.
You’re going to have many opportunities to do so via every communication you have with your audience – be it your blog, social media or even through the types of products you offer.

With the answers to these questions you can start to form your story and weave it throughout everything you do.

Share through Story Telling
Using an honest, no-holds-barred communication style to tell your story, your customers’ stories, and the story of your products is a good start. Use case studies, interviews, and in-depth relatable blog posts to accomplish this.

Share through Doing Good
Get involved with your community to give back something that is noticeable. You don’t want to do this just to get noticed, but you do want to pick something that helps people understand who you are as a business owner and what your business stands for.

Share through Experiences
You and your audience likely share common experiences that should be discussed. The more ways you can relate to them, the more ways they’ll see your offerings as unique and different.

Share with the Truth
Don’t hype, and don’t “blow smoke”. Consumers are smart today. They want the black and white truth of the matter. If it takes 20 hours a week to do what you do, and you’re teaching them, tell them the truth. If you’ve had to stay up overnight to work around children’s schedules, say so.

Share Everywhere
Don’t just “tell” your story on your blog in the “about” section. Tell your story everyplace. Use infographics, memes, blog posts, guest blog posts, articles, testimonials, good deeds and every possible way to spread your story. Be your story by your actions.

Branding is important for small business owners as well as large ones. If you have a limited budget, smart branding is perhaps the most inexpensive business tool you can create. To learn more about how to make you and your business stand out, download my free checklist, Branding For Small Businesses at https://jonallo.com/branding

Article Source: https://EzineArticles.com/expert/Jon_Allo/1079948

Small-business retirement accounts 101

Posted on by Franchise Strategist

Small-business retirement accounts 101

By Brandpoint

(BPT) – If you’re a small-business owner — whether your business consists of just you and your spouse or a handful of employees — and you’re emerging from the pandemic into your new normal, it may be time for you to think about setting up retirement accounts, not just for your employees, but for yourself, too. That may be a surprising statement, considering many small-business owners do not currently offer retirement benefits to their employees, let alone take the time to set up an account for themselves.

There are myriad reasons why small-business owners put off saving for retirement, including investing every last dollar back into the business so funds for things like retirement weren’t available, anticipating selling your business when you retire so there’s no need to save now, and, a reason every business owner can relate to, there are just not enough hours in the day to think about it.

But the reality is, it’s easier than you think. A good financial advisor can explain the ins and outs of retirement accounts to you in an afternoon and help you decide on the plan that makes the most sense for you, your business, and your employees. Your retirement-age self will thank you, and offering those benefits will make it easier for you to hire and retain employees now, too.

Until you make that appointment with your advisor, here’s a primer in Small Business Retirement Account Options, 101.

SEP (Simplified Employee Pension)

A SEP is designed for self-employed individuals or small businesses, ideally with fewer than 25 employees. If you earn a self-employment income, you are allowed to save more for retirement using a SEP plan than a traditional IRA or Roth allows. A SEP is less complex and costly than a 401(k), allows employers to contribute larger amounts than a traditional or Roth IRA, and may qualify for larger tax deductions.

SIMPLE IRA (Savings Incentive Match Plan for Employees)

A SIMPLE IRA is ideally suited as a start-up retirement savings plan for small employers who have 100 or fewer employees, and who are not sponsoring a retirement plan. Contributions are tax-deductible, and earnings within the account are tax-free until withdrawn.

Solo 401(k)

A Solo 401(k) is for those who are self-employed and offers the same benefits of a regular 401(k), but it is designated for a business in which only the owner (and their spouse) is an employee. You can choose to make after-tax salary deferrals (adding a Roth component), with the tax advantages of withdrawals being tax-free when the time comes.

The power of self-directed accounts

What’s the difference between a traditional and self-directed 401(k) or IRA? Where you’re allowed to put those investment dollars. Especially in uncertain economic times like the ones we’re living through right now, that choice couldn’t be more important. With a self-directed 401(k), you can invest beyond the stock market.

So, if not the stock market, where do you put those dollars? With a self-directed 401(k), you can choose from many different areas, including:

  • Real estate

  • Private debt like corporate debt offerings, notes secured by deeds of trust or mortgages

  • Private equity like stock of C-corporations, limited partnerships, LLCs, and REITs

  • Precious metals, including gold, silver, platinum, and palladium

  • Cryptocurrency like Bitcoin

Why self-directed accounts are so attractive to investors

The beauty of this type of retirement investing isn’t just about having options other than the stock market. It’s about following your passions and using your own expertise to guide your investments. Let’s say you’re a real estate agent. You know the market extremely well. With a self-directed account, you can put your knowledge and your dollars together in a tax-advantaged way.

It’s also about paving the way for what you want to do after retirement. For that same real estate agent, it means retiring from selling properties and living on the income from the ones he or she owns via these investments. Equity Trust Company has seen investors use their knowledge of medical technology sales to fund their retirements and people involved in home restoration tie their retirement to the activity of their business.

Whatever retirement account option is right for you, investing now means peace of mind later for yourself and for your employees. Equity Trust specializes in helping people make decisions about their retirement accounts. To find out more, visit https://www.trustetc.com/contact-us/.

Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.

What Are Common Area Maintenance Charges In A Commercial Lease?

Posted on by Franchise Strategist

What Are Common Area Maintenance Charges In A Commercial Lease?
Posted with Permission from Spadea Lignana Franchise Attorneys


What Are Common Area Maintenance Charges In A Commercial Lease?
Most commercial retail leases are triple net leases. The “triple” stands for (i) taxes (ii) insurance and (iii) maintenance.

Taxes: This is pretty straightforward, as the landlord will simply pass on to the tenant the real estate taxes proportionately based on the size of the overall property and the size of the tenant’s location.
Insurance: This is calculated in a similar manner based on the landlord’s insurance cost for the overall property, not the tenant’s specific insurance.

Maintenance: This is the big variable and is also called CAM or “common area maintenance.”
Basically, under a triple net lease, the landlord will pass through all of the expenses to maintain the property including landscaping, cleanup, snow removal and minor repairs to each tenant on a pro-rata basis. The CAM charges in a commercial lease are typically added on to base rent as additional rent (in addition to the taxes and insurance cost). This is an area fraught with danger for the unwary tenant. A landlord typically will try to pass through as much of their expenses as possible through CAM charges, and if not negotiated upfront, these expenses can grow and grow over the life of the lease.

CAM charges to be wary of are:

Administrative & Maintenance Fees
Roof Repair & Replacement
Capital Improvements
Lighting
Plumbing
Electrical Wiring
HVAC

Many of these charges should be considered capital expenses or general overhead of the landlord and should be excluded from CAM.

READ THE ENTIRE ARTICLE HERE:https://www.spadealaw.com/blog/what-are-common-area-maintenance-charges-commercial-lease