Category: Entrepreneurs

6 WAYS TO FINANCE A START-UP SMALL BUSINESS

Posted on by Franchise Strategist

They expect to be paid back with interest and generally require collateral (such as property) in case your business defaults on the loan. If you can find someone willing to do this type of lending, and if all else fails, then this may be worth considering. However, small business owners need to exhaust other options first before seeking out private loans as they tend not only to be expensive but difficult for borrowers because they lack flexibility compared with other forms of financing, such as SBA loans which offer more favorable terms including lower rates and more extended repayment periods.

6 WAYS TO FINANCE A START-UP SMALL BUSINESS

Introduction
There are many ways to get funding for your small business or franchise. Here are jut a few suggestions to get you started.

Friends And Family
Friends and family are usually the first ones to help you when needed. If they’re willing to provide financing, ensure they understand what they’re getting into: don’t ask them for a gift; instead, offer them an investment opportunity. Then, ask them for a loan and use promissory notes (a written promise from one person to another) or other legal documents to prove your commitment. The important thing is that you have a good relationship with the people lending you money–and vice versa! Make sure that everyone knows precisely how much money is being lent and when it should be paid back by; this way, there can be no confusion about whether or not payments have been made on time or if interest rates apply in certain situations (like if someone takes out an additional loan).

Your Credit Cards
You can use your credit cards to finance a business if you pay off the balance every month. However, there are two reasons why this isn’t a good idea:

• Credit card interest rates are high. Putting $1,000 on a credit card with an 18% APR will cost $180 in interest over one year–even if you don’t charge any! If you have no other financing options and need $10,000 to start your business, this method would cost $20 per month (assuming a 20% interest rate).
• The second reason is that it’s easy to get carried away when using credit cards for personal expenses and then forget about them as soon as they’re paid off, leaving plenty of room for overspending in future months when unexpected expenses pop up.

Venture Capital (VC)
Venture capital (VC) is a riskier and longer-term investment. It’s only for some businesses or investors, but it can be the right choice if your company has a high growth potential and you have an experienced team behind it. VC investors look to partner with entrepreneurs who are passionate about what they do and dedicated to building their companies into market leaders over time. They expect that the companies they invest in will take more than one round of funding before reaching profitability–and sometimes even after becoming profitable! As a result, VCs typically provide capital infusions in increments instead of larger sums all at once. This allows them to monitor how well each growth stage is going before deciding whether or not additional funds should be provided (and how much).

Private Equity
Private equity is a form of financing where an investor buys a portion of your business. It’s similar to taking out a loan from the bank, except instead of paying it back over time, you pay your private equity investor every year with interest (the same way you would with any other type of loan). Private equity can be used to buy any company or franchise–including yours! If someone wants to invest in your franchise, they might want 50% or even 75% ownership to have complete control over all decisions made within the company.

Small Business Loans
A small business loan is another way to get funding for your startup. The interest rate on these loans is lower than personal loans, but you may need to put up collateral and provide financial statements and tax returns. You can get a small business loan from your bank, credit union, or online lender. Companies such as Guidant Financial and FranFund are reliable sources for assistance with small business loans under various SBA programs

Private Lenders
Private lenders are a good option if you’re looking for funding but want to avoid applying for a bank loan or grant. Private lenders are individuals or companies that lend money to businesses. They expect to be paid back with interest and generally require collateral (such as property) in case your business defaults on the loan. If you can find someone willing to do this type of lending, and if all else fails, then this may be worth considering. However, small business owners need to exhaust other options first before seeking out private loans as they tend not only to be expensive but difficult for borrowers because they lack flexibility compared with other forms of financing, such as SBA loans which offer more favorable terms including lower rates and more extended repayment periods.

Conclusion
There are many ways to get funding for your small business or franchise. The best method depends on what you seek, but all have benefits and drawbacks. It’s essential to consider which option is right for you and your business before making any decisions. We hope this article has provided helpful information on how to fund your small business or franchise. However, if you still need clarification, we recommend contacting Franchise Growth Solutions www.frangrow.com or a financial advisor who can help you make the right decision.

IS BUYING A FRANCHISE RIGHT FOR YOU?

Posted on by Franchise Strategist

Ideal candidates for franchising are those who are excited about operating their own business, have no experience in the field, and are willing to accept the duties and obligations of being their boss. Purchasing a franchise could be an effective means of launching a new business. Consider franchising if you have yet to gain experience in the industry and are passionate about running your own business, and are willing to accept the responsibility and accountability that come with being in charge.

Is Buying A Franchise Right For You?
By: Gary Occhiogrosso – Founder & Managing Partner – Franchise Growth Solutions

Introduction
While franchising is an excellent way to enter the business world, it is not the best option for everyone. Consider the answers to the following nine questions before deciding whether or not your business might benefit from becoming a franchisee.

Do You Intend To Pursue Franchising In The Future?
If you want to start your own business, franchising may be an excellent option. However, franchising is also suitable for you if you want to be your own boss and run the show, but lack the competence or skills
required to do it independently. But franchising is not for everyone; if these reasons make sense to you, especially if they inspire and excite you, you should consider franchising as the right decision.

Do You Have A Proper Financial Plan And Ability?
As you begin the process of purchasing a franchise, you must have a sound financial strategy in place.  You will need sufficient funds to cover the franchise fees and any other expenses that may emerge during the first phases of establishing your firm. Even though a particular franchise may be a solid investment, it may still need time and patience before it starts to pay off; you will also need to ensure that your cash flow can sustain your business moving forward.

Do You Have Previous Experience Leading Others?
The terms "management" and "leadership" are not synonymous. Leadership inspires people to come together and move forward with a single goal, while management is about efficiently doing tasks. Leaders take control of a situation, define a crystal-clear vision for it, and motivate others to strive toward achieving that vision with inexhaustible fervor and enthusiasm.  Because most successful franchises require strong leadership skills from the owner or manager at all levels of the organization, beginning with sales representatives and extending to upper management, franchising may not be the best business model for you if you do not feel comfortable in a leadership role.

Do You Have Sufficient Time To Manage Both The Workforce And The Business?
If you already have a full schedule, franchising may not be your ideal choice. Running a franchise requires a substantial expenditure of time and effort.  You must be able to devote a large percentage of your focus and energy to the organization.  Initially, there may be little room for vacations or even weekends off, and you may be obliged to work multiple days a week due to the long hours. There may be little room for either! Things might be challenging for both parties if you are already committed to another job or have family duties. In addition, managing employees might be challenging since each person has unique personality features. Also, suppose a corporate employee is terminated unexpectedly or quits due to a conflict with upper management or ownership within the parent company. In that case, this can cause problems within the franchise system due to a lack of consistency in the practices and policies established by the franchisor.

Is The Industry Category Stable?
You may ask yourself, "How stable is the franchisor and industry; The answer to this inquiry will help determine if acquiring a franchise would benefit you. If the franchise company you desire to join has a high failure rate and does not seem to be growing in the near future, it may not be worth your time and effort to become a franchisee of that company.  For example, if you've always wanted to open an ice cream shop, but there are already twenty comparable businesses in the neighborhood that are thriving, what gives you cause to assume that yours will be more successful?  Also, consider whether other franchisors are entering or leaving the market. That might negatively influence business; the present time may not be the best choice! If, on the other hand, the industry you have chosen appears stable and has ample room for growth and expansion over time (especially when macroeconomic trends are considered), that brand may be a good option for you, provided that other factors, such as the cost structure and overhead expenses, aren't too high when compared to revenue projections from previous years' earnings statements.

Are You The Only Franchisee In The Market?
Although franchising is an excellent business technique, it can also be helpful if other franchised units of the franchisor are already operating in the area. No one else may be familiar with the brand if you are the only franchisee in your area. If other franchisees are in the region, you will find it simpler to build your business. They can help with some legal difficulties and the  Last but not least, these multiple locations assist with advertising strategies and marketing techniques, which are the two most influential factors in determining whether clients would buy from your firm.

Are You & The Business Capable Of Paying The Fees And Royalties?
There are costs involved with franchise ownership, ranging from $10,000. to $1,000,000. You must additionally pay a monthly royalty fee that is computed based on your sales and other company information. The royalty is the fee the franchisor collects; it is usually a percentage of each week's total sales. Royalties are calculated as a percentage of your business's total revenue. 

How Much Support And Training Will You Receive?
You should anticipate a certain level of assistance from the franchisor throughout training and after that, but whether or not they give it primarily relies on the cost of their services and the nature of your connection with them after acquiring their brand name. 

* Training: If you are new to operating a business or need help getting started, you should examine if the franchise you are considering offers any training options.

* Advertising Costs: The costs associated with advertising can vary widely based on the advertising medium used (for instance, TV ads may cost more than flyers or social media ads), but in general, these expenses will likely be higher than those of non-franchised businesses.

How much input do you need and want in determining prices?
It would help if you understood how much influence you will have on the pricing.  While some franchisors allow franchisees to set their prices, others require franchisees to adhere to the same pricing structure as the company's flagship location. 

It would be best to consider whether the franchisor will allow you to alter your product or service, add new items, and make any other required adjustments. Profit is directly proportionate to the degree of operational and marketing control a franchisor offers franchisees. Ideal candidates for franchising are those who are excited about operating their own business, have no experience in the field, and are willing to accept the duties and obligations of being their boss. Purchasing a franchise could be an effective means of launching a new business. Consider franchising if you have yet to gain experience in the industry and are passionate about running your own business, and are willing to accept the responsibility and accountability that come with being in charge. Franchising is a tried-and-true business model that allows business owners to profit from the knowledge and experience of the franchisor while also gaining from their successes. The required investment requires substantial time, money, and effort, but if executed well, it can be rewarding.

Conclusion
Some individuals may find franchising an excellent entry point into the corporate sector.  Yet, not all individuals would profit from doing so.  Before making a final choice, evaluate if acquiring a franchise matches your long-term goals and lifestyle.

BEST TIME TO OPEN A PIZZA FRANCHISE: 7 THINGS PROSPECTIVE FRANCHISEES LOOK FOR

Posted on by Franchise Strategist

Franchise ownership gives you the financial freedom you’re looking for – but ONLY if you choose the right franchise. When you’re running your own Smokin’ Oak Pizza & Taproom location, you call the shots. Put the right team in place and you can have a flexible schedule that lets you work at your own pace

Best Time To Open a Pizza Franchise: 7 Things Prospective Franchisees Look For
Article supplied by Smokin’Oak Wood-Fired Pizza & Taproom

Your restaurant is the talk of the town. Business is steady and growing. The word-of-mouth brings in locals, business travelers, and vacationers. The goal you had of working for yourself has come true.

That’s the dream. And you’re ready to make it happen. But you’re wondering if now is the right time to open a franchise. It’s true that many business owners are hesitant during uncertain economic times. But research shows intrepid entrepreneurs can not only survive uncertain economic times but thrive.

But don’t just take our word for it… Hear from two of our successful franchises who opened during the 2020 pandemic and are continuing to serve authentic, artisan wood-fired pizza to their supportive communities today – with plans to expand!

With that in mind, no one knows exactly what the economy is going to do and how that will affect business. Evaluating the opportunity alongside the potential risk is imperative. That’s why we’re sharing seven things you should look for in a franchise before investing your savings.

Financial Security
Fast-casual restaurants are highly popular today. The ones that are franchises – a step up in quality and ambiance from the typical fast-food chain — have been opening new locations faster than any other dining category.

Their popularity could be due to profit margins, which are the highest among food franchises. Fast-casual restaurants enjoy a 6% profit margin, which is the same as full-service restaurants and nearly three times better than the typical fast-food eatery.

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ARTIFICIAL INTELLIGENCE WILL HELP FRANCHISORS SPEED UP FRANCHISE DEVELOPMENT

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In a report by Data IKU, Korn Ferry stated that 55 percent of staff believed AI had already changed the way their organization recruits. IBM receives about 8,000 resumes a day and is the most searched employer on Glassdoor, an employment site that includes employee ratings for their company. IBM uses an AI algorithm that can predict with 95% accuracy whether a worker is planning to leave his/her job.

For those of you who have followed Ed Teixeira’s articles on FranchiseMoneyMaker.com it is with deep sadness that we report he passed away last week. We will miss Ed’s insights, willingness to help and the kindness he brought not only to our publication but the franchise community and the everyone he touched.

Artificial Intelligence Will Help Franchisors Speed up Franchise Development
By Ed Teixeira

Franchise Consultant, Blogger and Freelance Writer. Co- Author of New Textbook Franchising Strategies The Entrepreneurs Guide to Success. Franchise Executive with 40 years of Franchise Industry Experience.

During the past several years, you have probably read or heard about the increased use of Artificial Intelligence (AI) and its applications. AI has already had a significant impact on Human Resource departments, especially recruiting job applicants. In a report by Data IKU, Korn Ferry stated that 55 percent of staff believed AI had already changed the way their organization recruits. IBM receives about 8,000 resumes a day and is the most searched employer on Glassdoor, an employment site that includes employee ratings for their company. IBM uses an AI algorithm that can predict with 95% accuracy whether a worker is planning to leave his/her job.

Related to AI is natural language processing (NLP) which enables computers to read text, hear and interpret speech and determine which parts are important, like Alexa. A report from Tractica predicts that NLP software solutions capitalizing on AI will grow from $136 million in 2016 to $5.4 billion by 2025.

AI and Franchise System Development
If AI resume software automates resume screening, then AI applications should offer franchisors a major opportunity to improve their franchise system development. Using AI to automate the screening of franchise prospect information could help spot qualified candidates much faster. Also, using phone call speech-to-text and NLP can provide more opportunities to gain information from candidate conversations. Service Score’s Qualifier Call Optimization (QCO) platform uses recorded prospect calls with an analysis engine powered by the latest AI tools to deliver opportunities for converting more calls to applications. A number of franchisors currently use the Service Score application.

Franchise Departments Should List Its Telephone Number
A number of franchisors fail to list their telephone number on their franchise page and require prospects to submit a form. This has become somewhat of the norm rather than offering two ways to contact the franchise department. Hiya’s annual State of the Call report found that more than 12,000 consumers and 2,000 businesses ranked the phone call No. 1 for remote interactions, beating out text, email, video calls, and chatbots.

 During my career I built three franchise systems in different business categories. In each case our phone number for the franchise department was available. I considered every franchise lead valuable and wanted our staff to be able to engage with potential franchise prospects as soon as possible. It was my experience, that individuals who called the franchise department before submitting a contact form, were eager to learn about our franchise opportunity and had important questions. In many cases it resulted in the person submitting a franchise application.

Top franchisors like Service Master Restore, BrightStar Franchising and Neighborly follow this process. Here is BrightStar’s Message: “Our friendly and experienced team is happy to help you get started. Call us at 872-xxx-xxxx or request a call from our team by filling out the form below.”

Franchisor’s Should Prepare for AI
Its time franchisors prepare for the increased use of AI applications in various franchise operations. This should include franchise development. Here are steps franchisors can take to begin the process:

* Compile data to construct a franchisee profile of top performing franchisees or the ideal franchise candidate.
* Incorporate franchisee profile data into contact form and franchisee application.
* Include franchise department contact telephone number.
* Franchisors should speak with several AI software companies to learn about the process and cost of using AI applications for franchise development. Mike Bidwell, president and CEO of Neighborly stated: “We believe employing AI will be key to gaining or even maintaining a competitive advantage in an increasingly informed and sophisticated marketplace.

About the Author:
Ed Teixeira
Franchise Consultant, Blogger and Freelance Writer. Co- Author of New
Textbook Franchising Strategies The Entrepreneurs Guide to Success.
Franchise Executive with 40 years of Franchise Industry Experience.

TIP TO INCREASE FRANCHISE RECRUITMENT

Posted on by Franchise Strategist

It has been my experience that the franchisee territory does not receive enough analysis by some franchisors. While the type of territory, whether open, protected, or exclusive, is an important consideration for a prospective franchisee, the market potential is equally important.

A Strategy to Enhance Franchisee Recruitment
By Ed Teixeira
Franchise Consultant, Author, Franchise Executive and Former Franchisee with 40 years of Franchise Industry Experience.

To grow a franchise system a franchisor must have qualified franchise leads that can turn into viable franchise candidates. Whether a franchisor generates their own leads, uses Lead Gen portals, or receives franchisee prospects from other sources, acquiring franchise leads is only the start of the franchise development process. The franchisee prospect needs to be motivated by a franchise opportunity before proceeding to the next step in the process.
To achieve this objective the strategy employed by most franchisors is to cite the demand for the franchise’s products or services, in addition to franchisor training, support and a financial performance representation. However, these benefits exclude one of the most critical requirements of any franchise, the quality of the territory the franchisee will acquire as part of their franchise investment.

Not enough emerging and mid-sized franchisors emphasize in detail, how it analyzes, identifies, and determines the territory a franchisee will be granted. Although this subject is typically covered at the early stages of discussions between the franchisor and a franchisee prospect, it has been my experience that the franchisee territory does not receive enough analysis by some franchisors. While the type of territory whether open, protected, or exclusive is an important consideration for a prospective franchisee the market potential is equally important.

1. Franchisors should devote more resources and place more attention on how they identify and define a franchisee market and present this information at the earliest stages of the franchise process. This strategy may require a franchisor to invest additional resources into identifying and defining franchisee territories.

2. Franchisors should avoid utilizing surface metrics to define a market. For example, a home care franchisor may use the number of residents over 65 to define a market, yet that alone won’t indicate how many in this market segment can afford to pay for home care services? The same rationale relates to home restoration services. In addition to identifying the number of single family homes in a territory, the age, size and proximity of homes to potential environmental threats should be considered.

3. Invest in using an experienced market research firm to identify an ideal market profile to serve as the basis for identifying and defining franchisee territories. This approach will benefit the franchisor and its franchisees by maximizing opportunities for brand growth.

4. Some franchisees will request a territory based upon proximity to their residence and certain demographics. Franchisors should avoid accepting a franchisees choice of territory out of hand, without a detailed analysis of the territory. Otherwise, a franchisee that experiences poor sales may attribute the problem to their territory and place the responsibility on the franchisor.

In order to attract qualified franchise candidates franchisors should devote the necessary resources to defining franchisee territories and its market potential and present the franchisee territory as a major feature of the franchise opportunity. This feature of the franchise opportunity should be introduced at the beginning of the franchise presentation process.
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About the author:

Ed Teixeira has 40 years experience in the franchise industry as a franchise executive and franchisee. He is the co-author of the new textbook; Franchising Strategies The Entrepreneurs Guide to Success published by Rutledge. Ed’s franchise experience includes the retail, manufacturing, home health care, medical staffing and technology industries. Mr.Teixeira has franchised brands in Asia, Europe, and South America. He have lectures at Stony Brook University Business School on the subject of Franchising and been interviewed by the Wall Street Journal, Forbes, Bloomberg, Franchise Times, Franchise Update, New York Newsday and Long Island Business Review. Am available for Expert Witness testimony.

He has written and published The Franchise Buyers Manual a comprehensive guide for people considering buying a franchise. Ed is an Industry Partner of Stony Brook University and member of the Advisory Board Pace University Lubin School of Business and was qualified by the International Center for Dispute Resolution and The Business Broker Press as a franchise expert.

What To Consider When Purchasing A Franchise

Posted on by Franchise Strategist

Photo by Estée Janssens on Unsplash

Summary: To select the ideal franchise company to join, you should first find a company with a proven track record of success. A good franchisor will have been in business for at least two or three years and be able to demonstrate the growth potential of its products and services. The best way to do this is by looking at how many franchises they currently have in operation and are they profitable. A robust and growing network often indicates a successful brand.

10 Key Points To Consider When Purchasing A Franchise
Originally published in Forbes.
By Gary Occhiogrosso, Managing Partner Franchise Growth Solutions

If your goal is to purchase a franchise, choosing the right franchise brand to invest in is one of the most important decisions you’ll make as a business owner. It’s not just about finding a company with a proven track record but also finding one that fits your personality and lifestyle. Your first step, is knowing what to look for when you’re evaluating potential franchises. Here are some key areas to consider:

Franchise Fees
Franchise fees are one-time payments made when purchasing a franchise. These fees can range from $10,000 to $100,000 and are used to pay for the rights to use the name, the procedures and any systems developed by the franchisor. It is also used to cover costs for training and opening support by the franchisor to assist the franchisee with the opening of their franchise. Franchisors usually charge their franchisees up-front fee when the franchise is granted. In addition, post Covid initial “turnkey” investments may be higher than in the past due to supply chain issues, inflation, and increased cost of equipment and leasehold improvements between brands.

Royalty Fees
Royalty fees are the amount of ongoing money (usually a percentage of gross sales) you pay to the franchisor for using their brand name and ongoing support such as marketing and developing new products or services for the franchisee. As a franchisee, you are required to pay royalties based on a portion of your sales. This percentage may be fixed or fluctuate on a sliding scale based on sales.

Term Length
Franchise term length can be a good indicator of how much the Franchisor invests in their franchisees.
On average, depending on the type of franchise, home based vs a retail location, franchise brands have terms that last ten years or less. This means there’s plenty of time for the franchisee and franchisor to work together and develop a solid relationship. Still, it also means that the franchisee may not be allowed to retain the business if something doesn’t work out. If a franchisee is underperforming, the franchisor may not renew the franchise agreement once it expires, or may seek to terminate the franchise prior to the full term. In such a case, the franchisee must exit the business. In many instances, there will be a contractual obligation that the franchisee cannot open a similar business for a period of time within a certain distance from their original location. This is called a non-compete clause.

Consider Your Lifestyle.
* Consider the lifestyle you will have while running the business.
* Look at the hours of operation. You don’t want to buy an 80 work week.
* Review flexibility of franchisor with respect to new products, relocation and other variables.
* See if the location makes sense for you. You will need to manage the location or develop a team to manage the day-to-day operation for you.
* Check out the type of work needed to run the franchisee. Make sure it fits your skill set and interests, including whether it’s something you’d enjoy doing as a full-time job.
Seeking the advice of a professional franchise consultant can be an extremely useful method when evaluating if a franchise is the right business model for you. Scott Milas, a Certified Franchise Executive (CFC) and Certified Franchise Consultant (CFC) with The International Franchise Professionals Group recommends you consider these questions: “What is your “Know” and “Why?” Understanding “why” you are interested in owning your own business, and “knowing” who you are, are critical steps in choosing the right opportunity. A self evaluation and clear picture of your skill sets and eventual end game- exit strategy, will help ensure that you invest in the right opportunity. Better to “know” now then after you made the wrong decision. “Why” now?
An experienced franchise consultant can assist you in answering those questions and choosing a brand that’s a good lifestyle fit as well as one that offers opportunities to meet your business goals

Look For An Experienced Franchisor
To select the ideal franchise company to join, you should first find a company with a proven track record of success. A good franchisor will have been in business for at least two or three years and be able to demonstrate the growth potential of its products and services. The best way to do this is by looking at how many franchises they currently have in operation and are they profitable. A robust and growing network often indicates a successful brand. In addition, it demonstrates that customers value its products or services enough to pay for them again through multiple businesses.
The second thing you should look for when choosing a franchise is reputation—how well does your chosen brand stand up against its competitors? While there may be other similar businesses out there with similar business models, does you selected band have points of difference to separate itself from the competition. It’s essential that you choose one that utilizes high-quality materials, produces consistent results, and provides excellent customer service while maintaining competitive prices at all times.”

Know Your Competition
One of the steps to building a successful franchise business is to know your competition. What brands already exist in the market, and how do they compare? What is their customer base, and what can you learn from them? How do your offerings differ from theirs, and how do these differences help or hinder you as a company?
Tom Scarda a former franchisee and now a franchise coach and consultant offering advice to franchise buyers regarding evaluating the competition and what it may mean to their success as a franchisee “It’s smart to think about a product or service that is needed in your area and consider bringing that sort of business to the town. However, just because there are no batting cages in your town and you think it would do great because there are kids everywhere, you may be right. However, will it make money? Is there some reason why there is no batting cages in the area? When starting a business, you must, must do a comprehensive business plan before anything else. Learn about competition in the area. Understand the local county laws and regulations around the business you’re considering. Be real about the cost to start and run the operation. These are just a few items to consider in a business plan.”

Once you’ve got a handle on who’s out there, it will be easier for you to see where there are gaps in the market—and then fill those gaps with your unique brand identity.

Carefully Review The Franchise Disclosure Document.
Read the current franchise disclosure document (check the issuance date) and have it reviewed by a competent franchise attorney. Harold Kestenbaum, a noted franchise attorney with Spadea Law advises: “When considering the purchase of a franchise, I highly recommend retaining the services of an experienced franchisee attorney. Never contemplate purchasing a franchise without seeking the advice of an attorney who has reviewed FDD;s before. I also recommend that you do your due diligence. By that I mean that you should review Item 20 of the FDD and call all of the existing franchisees who are in your general area.”

There are additional factors to consider when reviewing the franchisor’s FDD. According to Richard Bayer, a Partner in the law firm Einbinder & Dunn LLP: “Purchasing a franchise for many first-time business owners will often be one of the top three expensive transactions the franchisee will ever go through in his/her lifetime. Given the severity of the investment, a franchisee must commit to doing due diligence. It starts with speaking with existing franchisees as well as those who left the system. Their contact information can be found in the FDD. The goals from these calls include gaining a better understanding of the economics of the franchise – is it profitable, when is break even reached, do costs (labor or otherwise) or revenues fluctuate significantly making it difficult to predict performance. Equally important is getting a sense of the franchisor’s temperament – is the franchisor supportive, does the franchisor go above and beyond legal obligations (imposed in the franchise agreement) to deliver for its franchisees, is the franchisor forward thinking and/or technology driven. The FDD is a great source of information about a system, but it is has gaps that can be filled in quite nicely by franchisees in the system and by those who left. Purchasing a franchise without speaking to as many franchisees as possible is a lost opportunity.”


Investigate The Franchisor’s Tenure And Track Record of Success
In addition to analyzing the franchisors’ financials, it’s also vital to examine their overall track record. While a strong balance sheet is an essential indicator of a business’s health and stability, it doesn’t tell you much about how they’ve fared over time. So, for example, if you’re looking at two franchises with similar books and financials, but one of them has been around for four years while the other has been operating since say, 1899, it would make sense to choose the latter in this case—even if everything else on paper looks the same.
This information can be gleaned from third-party sources such as Dun & Bradstreet or franchise trade magazines or by visiting the website of the International Franchise Association. Always go directly through your Franchisor before getting this data yourself so that they can confirm that everything is correct and up-to-date. In addition, it is vital that you speak with or meet as many existing franchisees as possible before you make your final decision.

What Are The Brand’s Training Programs And Support?
When you buy a franchise, you’re not just buying the rights to use its brand name. You also get access to training programs, mentoring, and support from the Franchisor. These must be proven and effective; otherwise, it can be challenging for your business to grow or stay profitable.
You want to ensure that your franchisor is committed to your success as a franchisee. That means offering in-person training (the better option) and or using phone or video calls if necessary. It also means regular advice on running your business and what strategies might help you reach more customers or increase revenue.

Review The Franchisor’s Marketing Plans.
A good franchisor will have a written marketing plan in place. The marketing plan should include a social media strategy and details about how the franchisor plans to use the funds provided through your advertising fees. If you ask for this document, they should be willing to share it with you.

Choosing The Right Franchise Brand Can Significantly Impact Your Success.
We’ve talked about screening potential franchise brands above. Still, there are some other factors that you should also consider when choosing where to invest your time and resources.
Tom Scarda goes on to say “We always hear the phrase, “If you love what you do you never work a day in your life.” That is true if you’re working a job. But a franchise is not a job. It’s a business that allows you to build a lifestyle. In the end, the service or product the business provides doesn’t matter. Of course, it must make sense for the community where you will operate and the concept must be something that you understand. However, you can be a vegetarian and own a burger joint. As the owner you are acting as the CEO and CFO, you’re not flippin’ burgers…well you shouldn’t be. If you are doing the tasks that the business requires then you bought yourself a job and your business will plateau and not be scalable. Scarda adds “Don’t buy a business because it has to do with your hobby. If you do, you will no longer have a hobby and you will probably resent the hobby if you’re trying to pay your mortgage with it. Instead, invest in a business that will give you the time and money to enjoy your hobby until your heart’s content.

Conclusion
It is important to consider all these factors when looking for a franchise brand. Some of them, like the fees and term length, are more straightforward than others. But, if you want to be successful in your franchise opportunity, it’s worth taking the time to research what makes each Franchisor unique thoroughly. A good franchisor will have invested in training programs and support systems that will help you understand how their business works.

Tips For Employers & Employees – Effective Job Interviews

Posted on by Franchise Strategist

Photo by Clem Onojeghuo on Unsplash

Suppose you have not decided what to offer someone or are still negotiating with the candidate. In that case, it’s best to provide a range rather than an exact number. This gives candidates an idea of what they could make if hired and shows that you are flexible and willing to negotiate.

Tips For Employers & Employees – Effective Job Interviews
By Johnny Day

Introduction
As a business, you want to hire the best employees you can. You want people with the right skills who can help the company reach its goals and grow. But only some people will be a good fit for your organization. In fact, according to one study, about 25% of new hires fail within their first 18 months on the job. At that rate, hiring five employees who fail in their first 18 months at work with your company is like hiring only three people who succeed in that time!
Offer salary range, not a specific number.

Offer a salary range, not a specific number.
Suppose you have not decided what to offer someone or are still negotiating with the candidate. In that case, it’s best to provide a range rather than an exact number. This gives candidates an idea of what they could make if hired and shows that you are flexible and willing to negotiate.

Have a plan for the interview before you go in.
Before you go into an interview, you should plan what you want to ask and what kinds of questions the employer will ask you. You should also have your resume and a copy of the job description. Bring a list of references who are willing to be contacted.

When it comes time for your interview, follow these tips:

* Know what you want to ask. The employer may only tell you about some aspects of the job. Instead, they’ll give out one piece at a time during different parts of the interview process to see if candidates are interested in both the work itself and all other aspects related to working there (e.g., pay).

* Have your questions ready so that if something comes up during or after their presentation or tour—like whether there’s room for advancement—then feel free to ask these things without feeling like an outsider who doesn’t belong!
Explain the company culture to candidates.

* Recruiters, managers, and executives should explain the company culture to candidates. Because culture is a set of values, it’s essential to define them early in the process. The goal is to give candidates an understanding of how your organization approaches its work and what being part of that organization means. It may be helpful for recruiters and hiring managers to refer back to this definition when conducting interviews with prospective employees because it can provide a common understanding among team members if they all use the same language when describing their roles within the organization.

Make sure they know what their duties will be.
Clearly outlining the duties of a job is a must. As a manager, it’s your responsibility to ensure that employees know their position and how a manager will evaluate them. If you’re hiring someone who has been doing this type of work for years, you’ll want to take them through orientation so that they know what you expect. If someone just graduated from school with little or no experience in your field, then I recommend taking some time out of their first week on the job to explain things like:
What is expected of them in terms of output and output quality? (This is usually tracked in metrics.)
How do we measure performance? (These measurements may include customer satisfaction surveys.)

Don’t be afraid to ask them to elaborate on their experience and qualifications.
Asking candidates to elaborate on their experience and qualifications is part of the interview process. Still, it’s also an excellent opportunity to learn more about someone’s personality and character. For example, if a candidate has said they have experience in social media marketing, then ask them to describe the last project they worked on from start to finish. On the other hand, if their resume lists specific projects, ask them what kind of work they’ve done in that area before.
If someone has little professional experience (e.g., a high school student looking for a summer internship), then ask them how they’ve approached learning new skills or subjects outside of school-related activities. For example: “Tell me about a time when you had to teach someone else something.”

Give them time to think about it.
Before hiring, ensure the candidate has time to consider it. Suppose they’re ready to sign on right away. In that case, it might mean that they’ve already taken a job elsewhere and are just trying to be polite by pretending otherwise. It’s also crucial that you give them plenty of time so they can ask questions. They probably have some concerns or reservations about joining your company—perhaps even some reservations about working with you—and those issues need to be addressed before anything goes any further. Finally, once someone is hired, their start date must be pretty close to the future. You want them to feel secure and comfortable enough with their decision that they don’t leave for another position before their first day at work; this would lead directly to lousy employee retention rates later down the line!

Tell them about the benefits package.
Benefits are a big part of the job. Make sure you have a good benefits package and your employees know about it. That way, they’ll feel valued by the company and be more likely to stay with you for extended periods.
What kind of benefits do you offer? Do you offer a 401K? Paid time off? Health insurance? These things all play into how willing someone will be to commit their life to your company—so make sure you’re offering them everything they need!

Ask if they have any questions for you.
If you haven’t already, ask your new employee if they have any questions.
Asking what’s on their mind will ensure you can address any concerns they may have about the position.
This is also an excellent time to make sure they are comfortable with the role and explain more about what it entails so that you can determine if this is a good fit for them.

Use these tips to conduct a more effective job interview that will help your company find and retain the best employees it can find When interviewing candidates, it’s important to be prepared with a plan. An effective interview will help your company find and retain its best employees. It’s also important to explain the company culture to candidates during this preparation process. You should also make sure they know their duties for an effective job interview that will help your company find and retain the best employees it can find.

Conclusion
This is a recap of the tips we’ve given above. If you need to decide which ones to use, mix and match them as needed.

BUNDLES OF TUMBLES NOW AVAILABLE AS A FRANCHISE

Posted on by Franchise Strategist

Since 2012, Bundles of Tumbles has grown, providing mobile dance and gymnastics to numerous preschools and after-school programs. Bundles of Tumbles is a completely mobile company, bringing classes directly to the customer’s location. Everything from the professional staff to the equipment is supplied on site for their 30-minute classes at preschools and daycare centers.

BUNDLES OF TUMBLES NOW AVAILABLE AS A FRANCHISE
NEWS PROVIDED BY
Franchise Growth Solution, LLC
October 24, 2022, 12:45 GMT

QUOTE: In addition to making physical fitness safe, fun & a part of life from an early age, Bundles of Tumbles programs also help children play together, begin to understand teamwork & develop confidence.”— Founder- Marianne Ecanosti

Bundles of Tumbles, a New Jersey-based mobile children’s fitness concept that brings dance and gymnastics to preschools, daycare centers and after school programs, will begin franchising effective immediately it was announced today by Bundles of Tumbles founder, Marianne Ecanosti. “We couldn’t be more thrilled to bring fun and fitness to even more kids aged 18 months-12 years old. Says Ecanosti. “Franchising will allow entrepreneurs and moms like me to take advantage of a turnkey and successful business model, knowing they are making an impact in young lives.”

Promoting Physical Fitness From an Early Age

Bundles of Tumbles programs help children from preschool to Grade 6 develop and hone loco-motor skills, coordination and muscle development. According to founder Ecanosti, “In addition to making physical fitness safe, fun and a part of life from an early age, Bundles of Tumbles programs also help children play together, begin to understand teamwork, and develop confidence.” Each 30-minute class includes fundamentals of gymnastics and dance such as tumbling skills, hopping, skipping, jumping and basic dance techniques and steps along with imaginative creative movement that engages youngsters with props, costumes and music.

Bringing Fun and Fitness to Children Where They Are

Bundles of Tumbles has signed an agreement with industry expert, Gary Occhiogrosso, Founder of Franchise Growth Solutions LLC, to franchise their mobile fitness experience throughout New Jersey and beyond. “The Bundles of Tumbles concept is one that can work anywhere.” Says Occhiogrosso. “Fully mobile, Bundles of Tumbles saves on costly real estate investment by bringing fun and fitness directly to participating sites. Bundles of Tumbles supplies all the personnel and equipment for a turnkey experience that benefits the local community.”

A Successful and Supportive System for Franchisees

30-year veteran of franchise development and sales, Occhiogrosso plans to expand the turnkey Bundles of Tumbles business model throughout New Jersey and expand into other states in 2023. Occhiogrosso assures potential franchisees, “The Bundles of Tumbles was developed by a female business owner who was a dance arts graduate, corporate businesswoman, and mother. It’s an ideal business opportunity for momtrepreneurs, coaches and mother daughter duos like Marianne and her daughter, Alyssa.” He adds. “The franchise model is based on support and education. The Bundles of Tumbles team helps franchisees with expert advice on everything from curriculums, equipment, and marketing strategies to hiring, training, and customer service.”

About Bundle of Tumbles
Bundles of Tumbles began in 2012 when now owner Marianne Ecanosti took over the business from the previous owners. What started as a way for Marianne to use her experience as a dance teacher, became a long-term investment and career. After taking an 8-year break from dancing to enter the corporate world, Marianne realized her passion was working with children and teaching dance, so she went back to school and achieved her degree in Dance Arts

Since 2012, Bundles of Tumbles has grown, providing mobile dance and gymnastics to numerous preschools and after-school programs. Bundles of Tumbles is a completely mobile company, bringing classes directly to the customer’s location. Everything from the professional staff to the equipment is supplied on site for their 30-minute classes at preschools and daycare centers. In addition to their regularly scheduled preschool classes, they also offer a host of classes for children in preschool-6th grade, offered mainly through town recreation programs.

Because of the growing success Marianne and Alyssa have seen in their business, they want to give others the same opportunity to be both financially independent and build a fun fitness program for their own community through a Bundles of Tumbles franchise.

Franchise Growth Solution, LLC
+1 917-991-2465
[email protected]

TIPS TO MARKET YOUR RESTAURANT DURING THE HOLIDAY SEASON

Posted on by Franchise Strategist

Photo by Jed Owen on Unsplash

If you plan ahead and get people excited, they will come.
The holiday season is a busy one. People are going to be traveling, and they’re going to be in a rush. Your restaurant may miss out on potential sales if you don’t plan. You can cash in on the holiday season with careful planning and targeted marketing strategies.

TIPS TO MARKET YOUR RESTAURANT DURING THE HOLIDAY SEASON
By: Dom Hemingway

Introduction
For many of us, the holiday season is a time to reconnect with friends and family. For restaurant owners and chefs, it’s a chance to make extra money. The holiday season brings out the best in people—and it also brings out their appetite. So take advantage of this opportunity by creating ways to get people excited about your offering. Here are my top tips for doing just that:

Offer exclusive menu items.
Offer an exclusive menu item. What do you have that nobody else does? If you’re a vegan restaurant, maybe it’s a killer dish made with cashews and lentils. If you’re a steakhouse, maybe it’s the most amazing prime rib ever. Whatever it is, draw inspiration from the season and create something. Get people talking about your place as they post photos of their meals online—and then offer this special only for a short period (say, one month). This gives them the incentive to visit sooner than later and will make them feel like they just missed out on something extraordinary if they don’t act quickly enough!
Use social media to promote the special: Promote your limited-time offer on Facebook and Twitter as well as through local newspapers in print ads or even billboards along significant highways nearby—whatever works best for your budget! You can also use hashtags like “#holidaymenu” or “#christmasdinnerspecial” so that customers can easily find information about what makes these deals so great by searching for them in search engines like Google or Bing when looking up keywords related precisely to those terms.

Offer coupons:
This is another way of encouraging customers. Those customers who might not have heard about your holiday specials yet (or are still deciding whether it’s worth trying out) without having spent much money upfront, hand out paper copies at check-out counters or mail them directly home with customers who order over the phone lines.
Use loyalty programs: Not only does this incentivize repeat customers, but it also helps build brand loyalty since everyone loves feeling rewarded after returning!

Spice up your social media presence:
Social media can be a powerful tool for your restaurant. You can use social media to create buzz about your restaurant, promote new menu items and events, and give customers insight into the workings of your kitchen.
Post photos of your food and happy customers on Instagram, Facebook, or Twitter! It’s also a good idea to create a unique hashtag for your restaurant so that people who want more information about it can find it (for example, #greatrestaurant).
Get festive with decor and holiday-themed dishes
Decorate your restaurant with festive colors.

Offer holiday-themed dishes and desserts:
Offer a special holiday drink special during December, such as hot chocolate or eggnog milkshakes.
Get customers in the mood to be generous by offering gift card promotions, like buy one get one free, where they can buy one gift card at the total price and get another for half price! This also helps you build your customer retention rate too!
The best way to make money off any promotion is when it’s done right—get people excited about returning because they got something great out of it! That’s why we recommend having some loyalty program in place before starting any promotions so that you know exactly how much each customer has spent over time–and thus how much they’re worth (in terms of dollars) based on their average order size at each visit.”

If you plan ahead and get people excited, they will come.
The holiday season is a busy one. People are going to be traveling, and they’re going to be in a rush. Your restaurant may miss out on potential sales if you don’t plan. You can cash in on the holiday season with careful planning and targeted marketing strategies.

Planning Ahead Can Turn a Holiday Season into Profits
Planning for an event like the holidays isn’t just about organizing parties or buying new decorations for your restaurant—it’s about thinking about how these activities will affect your business and how customers will react to them on social media sites like Facebook and Twitter. For example: If you have decided to host an open house party at your restaurant during Thanksgiving weekend (or any other weekend), consider what type of food will be served; whether or not it’s appropriate for children; whether there should be seating available outside; what kind of beverages should be served (alcoholic drinks are subject to varying regulations); how much time people need between eating their meal and driving home safely; etcetera!

Conclusion
A successful holiday season is all about two things: planning and being creative. If you’re looking for additional inspiration, take a look at some of the things we’ve done here at www.frangrow.com We’d love to hear your ideas in the comments below!

Featured Franchise – HEALTH BENEFITS OF DANCE AND GYMNASTICS FOR YOUNG CHILDREN

Posted on by Franchise Strategist

A Bundles of Tumbles class in action in New Jersey

Summary: Dance and gymnastics are both excellent activities for children to participate in. Both dance and gymnastics help to increase muscular strength, flexibility, and coordination. In addition, dance involves a great deal of physical activity that improves the cardiovascular system of your child by increasing their heart rate and strengthening their muscles.

HEALTH BENEFITS OF DANCE AND GYMNASTICS FOR YOUNG CHILDREN
By: Marianne Ecanosti, Founder and President – Bundles of Tumbles

Introduction

We know that children need to be active and healthy to grow up well. But how do you get your kids off the couch and moving? Dance lessons are an excellent way for young children to get physically active. A study in the journal Pediatrics found that after only one week of dance lessons, children showed increased activity levels and improved their abilities at playing with others.

Research shows that children who participate in physical activity regularly are less likely to be obese and more likely to be healthier, fit, active, and self-confident.

Research shows that children who participate in physical activity regularly are less likely to be obese and more likely to be healthier, fit, active, and self-confident. Regular physical activity also helps reduce stress, promote good mental health and improve sleep quality.
And it’s not just about your child becoming healthy — it’s also great for you! Being active together can help you strengthen your bond with your child while staying fit at the same time.

The benefits of dance and gymnastics include increased muscular strength, flexibility, and coordination.

Dance and gymnastics are both excellent activities for children to participate in. Both dance and gymnastics help to increase muscular strength, flexibility, and coordination. In addition, dance involves a great deal of physical activity that improves the cardiovascular system of your child by increasing their heart rate and strengthening their muscles. In addition to these benefits, dance can also help with self-confidence as well as social skills development because it is an activity that encourages participation from others who may be performing alongside them.
Gymnastics teaches children how to control their bodies in motion, improving balance and coordination and overall health benefits such as increased bone density and muscle tone. In addition, gymnasts tend to have lower body fat levels than non-gymnasts due to the amount of exercise they do each week, which contributes towards an overall healthier lifestyle when combined with a balanced diet.

Learning rhythmic gymnastics movements can help children develop large muscle groups and learn spatial concepts.

Rhythmic gymnastics is a sport that combines dance, tumbling, and trampoline. This activity is excellent for improving your child’s balance, coordination and flexibility. It can also help improve their spatial awareness, control, and balance. These are all essential skills needed to perform well in school and sports like soccer or basketball.

Children enrolled in dance classes improve their spatial awareness, control and balance.

Dance and gymnastics classes are the most effective ways to improve your child’s spatial awareness, balance, and control. As a parent, you may be concerned that dance or gymnastics will make your child too hyperactive. However, research shows that children enrolled in a structured program of dance or gymnastics can lead to better self-esteem and lowered anxiety levels.
In addition to improving motor skills, these classes also help kids develop their sense of rhythm and timing. Many times when kids are dancing, they are also listening to music, so this helps them think about how the music makes them feel and how it affects their body movements and other people around them who might be dancing at the same time as well!

Children enrolled in dance lessons also have increased self-confidence, social skills, and awareness of their bodies.
This is very important in a child’s development.

• Increased self-confidence and self-esteem are significant benefits of dance lessons for young children. Dancing helps them grow into their bodies, learn about the world around them, and understand how to interact with others. By participating in classes that teach proper safety techniques (such as how to fall), they also learn about their physical limitations and boundaries for fearlessness.
A child’s confidence level can significantly affect their school experiences or extracurricular activities like dance classes. For example, the more confident a child feels about themselves, the more likely they are to try new things or speak up when they have an opinion on something important (like going out for recess!).

At Bundles of Tumbles, our mobile at-school program offers various classes that help with your child’s development through movement and music. Bundles Of Tumbles is here to help you achieve your goals with your children. Our training style is one on one, where we will work closely with you to create an individualized program for each child. We know that every child learns differently and will cater to each individual’s needs.
We offer classes for children as young as three years old, which include ballet, tap, jazz, hip-hop dance, and gymnastics classes. Courses help children develop physically, emotionally, and socially in a fun environment while building self-esteem!

Conclusion

As you can see, dance and gymnastics classes are a great way to help your child develop physical skills and self-confidence. At Bundles of Tumbles, we offer a variety of classes that help with your child’s development through movement and music.

ABOUT THE AUTHOR:
Marianne Ecanosti is the Founder and President of Bundle of Tumbles, Franchising Group, LLC.. She has teaching dance and tumbling for more than 25 years. My areas of expertise include ballet, jazz, tap and tumbling. I have taught all age groups throughout my career from toddlers through adult, but prefer to focus on pre-school through grade 5. I truly have a passion for what I do! My company, Bundles of Tumbles, is an on-site preschool gymnastics and/or dance enrichment program. We also offer online classes. Franchise opportunities now available! Find out more at https://www.bundlesoftumbles.com/