Tag: franchise

Investing in the COVID-19 Recession Era

Posted on by Franchise Strategist

Investing in the COVID-19 Recession Era
By Patrick Findaro, Co-Founder and Business Development Director of Vetted Biz

An analysis on the industries with the strongest likelihood of a rapid recovery from the recent lockdown-induced recession

Introduction

The recent COVID-19 induced lockdown led to a rise in a nationwide recession of which the country is only now beginning to recover from. Nevertheless, after researching and analyzing more than 2,900 businesses at Vetted Biz, we have found a select few industries that were able to remain stable despite social distancing restrictions. Additionally, there are also other industries expected to thrive once restrictions finish being lifted and the worst of the pandemic has passed.
The criteria used for this article when evaluating these industries addressed several factors. First, it looked at how successful each industry’s businesses were in adapting to these new restrictions. Then, it studied what opportunities these industries offered for its businesses to diversify during difficult times; and also speculated on what curve model best suited each industry’s recovery process once lockdown restrictions finish being lifted. Finally, in cases where this was possible, this study also cross-referenced industries’ performance predictions with the historical data on their SBA loans, which can be found here.

Main Findings: 3 Characteristics, One Outcome

The findings from this initial research concluded that COVID-resilient industries normally contain the following three characteristics: 1. Secure payments, which refers to having recurring revenue ensured by having either periodic contracts or offering services deemed “essential”; 2. Market leverage, which concerns having a strong brand and industry performance prior to lockdown restrictions being imposed so that businesses do not have to disburse additional costs in marketing during this time; and 3. An efficient budget, which encompasses factors such as high margins, strong liquidity and overall profitability. The article below will address in-depth, industries that are deemed either “COVID-resilient” or that will likely bounce back in the short-term once local restrictions finish being lifted. It will provide pertinent examples on how each industry is adapting accordingly, and will conclude by showing how the industries selected all have the three characteristics previously deemed necessary by this article.

COVID-Resilient Industries

Ghost Kitchen Restaurants

Ghost Kitchen restaurants – which are professional food preparation and cooking facilities set up for the preparation of delivery-only meals – have not only remained open during the recent lockdown, but also saw an increase in sales throughout this period. Amongst the numerous benefits that come with investing in a Ghost Kitchen concept, two specific ones particularly created optimal conditions for them to continue to thrive during the current situation: their efficient budget, and market leverage. Because Ghost Kitchens focus solely on servicing delivery and takeout orders, not only is the kitchen’s site required by the restaurant smaller, but also, the location of the kitchen is not as important seeing the business is not as dependent on foot traffic – both of which allow for lower costs associated with real estate.
Additionally, Ghost Kitchens can be run by as little as 2 to 3 employees, a fact that given the current situation not only further reduces costs associated with payroll, but also mitigates any contamination risks which remain a predominant concern during COVID-19. In terms of this sector’s market leverage, it is important to consider recent studies showing that 31% of consumers use delivery services at least once a week, and that 59% of millennial orders every week are either for takeout or delivery.
Beyond that, a recent study on SBA Loans found that between 1991 and 2019, 61% of food and beverage franchise loans were paid-in-full – a relatively high value when compared to other industries such as fitness centers or home services. The characteristics outlined above shows that Ghost Kitchen models are a sector of the restaurant industry that should only be expected to continue to strengthen as social distancing growingly becomes a greater part of the population’s reality.

Landscaping

The landscaping industry, which includes installing, cleaning and maintaining any territory’s green area, is another industry that has remained stable throughout the recent lockdown restrictions. Because the landscaping industry was not shut down during the recent lockdown, it was able to keep servicing its clients and generating revenue. The fact that state and municipal laws require businesses to maintain the landscaping orderliness of the territory they are operating in, means businesses offering landscaping services are treated as a priority by its commercial clients.
Additionally, as commercial businesses open, landscaping businesses are once again able to leverage their presence and ensure they can hold existing clients while adding on new ones as well. Another important factor to consider is that most services contracts within this industry are signed on a long-term basis, meaning recurring revenues is a strong characteristic of this industry. Finally, because the services provided by this industry are at the client’s specific location, the business can be operated from a small office space and is consequently able to optimize its budget by not having to allocate a great percentage of it towards real estate costs, which normally make up a large sum of a business’ expenses.

Property Management

The Property Management industry, which offers services that manage commercial and residential properties on a large scale on behalf of homeowners, is an additional industry that has proven to be COVID-resilient. Property management businesses manage owners’ commercial or residential real estate properties on their behalf through long-term contracts. These businesses deemed essential by homeowners and their long-term contracts allow for greater stability and makes it harder for clients to go back on their service contracting decisions. This allows for a strong inflow of recurring revenue.
Additionally, property management businesses can be run from a home office and by 1 or 2 employees only. SBA studies show SBA loans disbursed to businesses within the Real Estate industry also had a relatively high paid-in-full rate of 60.1% – thus further corroborating the industry’s strength despite recent circumstances.

Bookkeeping & Tax Preparation

Finally, the bookkeeping and tax preparation industry has thrived during this most recent recession. With most of the population rushing to have tax returns filed to receive government stimulus packages, this industry has recently seen an increased demand that has allowed for its businesses to leverage their market presence.
Secure payments have also been a feature of the industry due to monthly payments and renewals from businesses in need of bookkeeping services as they adapted to recent conditions and prepared to apply for stimulus packages as well. Finally, these businesses can also be run from a home office and with as little as 2 to 3 employees. Once again, bookkeeping and tax preparation businesses have shown that with an efficient budget, secure payments and strong market leverage, an industry is able to remain afloat even throughout a COVID-induced recession.

Cleaning & Maintenance

While cleaning and maintenance services might have been suspended or diminished as lockdown restrictions were put in place, this industry is likely to see the strongest and fastest recovery curve as these same restrictions begin being lifted. ¬With one of the most important conditions for reopening being ascertained cleanliness at all times, it is likely the cleaning and maintenance industry will experience the strongest market leverage, as their services are considered the utmost priority of any business looking to reopen.
Additionally, cleaning services do not require an extensive employee count or entirely sophisticated equipment. When cross referencing this industry’s performance prediction with its historical data on SBA Loans disbursed between 1991 and 2019, the cleaning and maintenance franchise industry had the highest SBA paid-in-full rate at 67.8%, once again reiterating the industry’s strength and likelihood of recovery once lockdown restrictions have been lifted.

Barber Shops & Beauty Salons

Although beauty salons and barber shops were not deemed an “essential service” during the recent lockdown and consequently had to shut down their services throughout most of the quarantine, they are likely to see a strong recovery curve as restrictions are lifted and people begin to resume their normal lives.
Grooming services especially for men, will likely peak as they return to work in need of a haircut. Additionally, women will likely seek beauty salons to address services in need such as waxing, haircut, and eyebrow design. By leveraging its market presence as people begin leaving their homes and resuming their regular self-care routines, the barber shop and beauty salon industry will likely see a strong recovery.

Children Programs

Children education and after school programs is another industry that will likely experience a strong bounce back once lockdown restrictions are lifted. Because most businesses have remained open and transitioned to online platforms, they have been able to maintain their market presence and secure a steady inflow of revenue as their help in keeping their children entertained or providing additional reinforcement to online schooling efforts became an unprecedented priority to parents also working from home.
Additionally, it is likely their market leverage will be even further elevated once families resume their daily life and parents begin to push their children towards reestablishing their regular routines. Finally, as children return to school in the Fall and parents see the education gaps left from online schooling during the spring semester, education programs in particular should experience an even greater growth rate.
Children education and after school programs have a strong leverage to secure a steady growth once restriction lockdowns are lifted, a fact that is corroborated by its relatively low SBA default loan rate, which was at only 4.2%.

Conclusion

As lockdown restrictions are lifted, a business’ ability to adapt and grow under current circumstances will likely become a strong factor in any investment process being pursued. By outlining some of the industries we have seen thrive during these difficult times, we hope to have clarified and mitigated any uncertainty that may have risen during your entrepreneurial pursuits amidst COVID-19. In sum, businesses and their respective industries that have been able to secure payments, optimize their budgets, and leverage their market presence should be considered the strongest candidates for investment as the country begins to recover from this COVID-induced recession.

Learn more here: https://www.vettedbiz.com/

An Interview With Tropical Smoothie Cafe’s CEO, Charles Watson

Posted on by Franchise Strategist

An Interview With Tropical Smoothie Cafe’s CEO, Charles Watson

By Gary Occhiogrosso
PHOTO COURTESY OF TROPICAL SMOOTHIE CAFE

CEO Shares His Story & Insights On Taking The Reins.
Amid all the pandemic news and stories of how the foodservice business is coping with the crisis, I thought I’d attempt to redirect our attention today, even if only for a short while. As a 35 year veteran of the restaurant and franchise industry, I have always been fascinated by the challenges, risks, rewards, and day to day “work” a CEO faces when first taking the helm of an ongoing franchise organization. Today’s post focus’ on that topic in an interview with Charles Watson, the CEO of Tropical Smoothie Café.

Mr. Watson was appointed the CEO position of Tropical Smoothie Cafe in December 2018. Since that time, he has led the company on its quest towards $1billion in sales by 2023. He’s no stranger to franchise development, nor is Charles Watson an outsider, having served four years as the company’s Chief Development Officer in addition to his prior role as VP of Franchise Development. He is directly responsible for selling more than 800 franchises.

As their franchise website states: “Tropical Smoothie Cafe’s menu boasts bold, flavorful smoothies with a healthy appeal, all made-to-order with quality ingredients. We find that real fruits, veggies, and juices just taste better.” The offerings have evolved over the years to include a menu of breakfast and lunch items beyond smoothies. From wraps to flatbreads to salads, Mr. Watson continues to solidly position Tropical Smoothie Cafe as a leader in the fast-casual, healthier lifestyle food category.

Gary Occhiogrosso: Tell us a little about your background before joining Tropical Smoothie?

Charles Watson: “Prior to joining Tropical Smoothie Cafe, I worked for several hotel and hospitality-centric companies, including Wyndham Hotels & Resorts, Intercontinental Hotels Group, US Franchise Systems, Inc. and Hospitality Real Estate Counselors. I joined Tropical Smoothie Cafe in 2010 as the Vice President of Franchise Development and, in 2016, became the Chief Development Officer, where I was responsible for all aspects of the development of the brand. In July 2018, I was named interim CEO, and then permanent in December 2018.”

Occhiogrosso: Please give our readers the “Elevator Pitch” for Tropical Smoothie Cafe?

Watson: “Tropical Smoothie Cafe is a national fast-casual cafe concept inspiring healthier lifestyles with more than 850 locations in 44 states. Beyond just smoothies, we serve better-for-you wraps, sandwiches, and flatbreads, and pride ourselves on living at the “intersection of taste, convenience, and hospitality.” In a highly competitive segment, we’re one of the fastest-growing quick-casual brands, opening 124 new locations in 2019 alone and singing 213 development agreements to open hundreds of businesses over the next few years.”

Occhiogrosso: What was the condition of the company before you were named CEO?

Watson: “We were in a good place! In 2018, when I was named CEO, we had more than 720 locations open nationwide. By year-end 2018 we opened 110 cafes and signed 191 new franchise agreements. Building off this momentum, in 2019, we celebrated the openings of our 750th and 800th locations, but taking over during such a monumental time for our brand certainly brought opportunities to improve. Each year, franchisees complete the Franchise Business Review to essentially grade us here at the Support Center on how we’re serving them. We gathered that feedback and used it to set goals and action plans for the company. Areas we wanted to attack immediately with our rapid growth were direct franchisee support as well as technology support and menu innovation. We set company-wide strategic imperatives around these issues immediately.”

Occhiogrosso: What were the one or two unique challenges that you faced upon taking over as CEO?

Watson: “As a first time CEO, learning to view the business from a thinking vs. a doing mentality was a challenge I faced. The success of our brand is about the talent and drive of our talented executives and Support Center team. It was not possible for me to get involved in every project – so I had to learn to let go and delegate. I would say that understanding the viewpoints and drivers of the different stakeholders I was serving was important. A presentation for a board is focused on very different things than a franchisee roadshow. Really trying to understand how to see the world through a different stakeholders’ eyes is something I still work on.”

Occhiogrosso: What was your plan for the first 90 days?

Watson: “I wanted to further instill a franchisee-first mentality. When our franchisees are successful, the brand is successful. When I became CEO, I launched a formal franchisee advisory council, known in our organization as the Tropical Franchisee Council (TFC). While we had always involved franchisees, I felt it needed to be formalized and more visible to our franchise system. In short, franchisees needed to know that there was a formal mechanism of their peers that was constantly feeding back to us at the Support Center. From there, we set up committees, reporting into our TFC, around the major parts of our business, and included more franchisees to provide feedback and work with us on further improving IT, Marketing, Design, and Construction, etc. It was important to me that we have franchisees themselves share their feedback and align on system initiatives and goals. In a franchise system, without broad franchisee buy-in, you cannot move as efficiently and effectively as is required in today’s business environment.”

Occhiogrosso: How is taking the reins of an existing company different than being part of a startup or a founder?

Watson: “I think when taking over any brand where you worked alongside your predecessor, there’s a certain level of pressure to continue carrying the torch, but also to make necessary changes to the brand to evolve with the changing economy and consumer trends. I was lucky enough to work with the founders of the business (and still do as they are board members) as well as work under our first CEO, who did an amazing job. Because 99% of Tropical Smoothie Cafe’s system is franchisee-owned and operated, it was my goal to maintain consistency for them and move the company forward in the right direction, with a lot of reverence and respect for the past. In my case, because I already had nearly a decade with Tropical Smoothie Cafe on the franchise development side, I had the unique advantage of personal relationships with our franchise community. We had a high level of mutual trust and respect for each other that existed before I assumed the role of CEO. I may have been, in fact, the person responsible for awarding them a franchise! My experience with the brand up to that point was beneficial because I was already very immersed in the operations and processes that had contributed to its success at that time. That created a kind of blueprint that served as the foundation for me to take the reins and lead the company the way I felt was best. Yes, I am putting my mark on the brand and culture, but I have been around long enough not to stray too far from the DNA of the brand.”

Occhiogrosso: What challenges, if any, did you face in getting “buy-in” from the existing franchise community once you became CEO? Were any of the franchisees reluctant to follow the system or embrace a new direction?

Watson: “Like I said, I was very fortunate to have had already developed relationships with our franchise community prior to becoming CEO. My predecessor did a great job, so most of the hesitancy candidly was, “will this guy be as good, will we have the same amount of success?” Luckily in my first two years as CEO, we continued to expand the footprint of the brand, and increase brand awareness, drive profitability for our franchisees and drive our comp sales…. So that was helpful! The impact of the more formalized committees we have set up, and the close connection I have with TFC has gotten the system more comfortable with my style and thinking, and I believe, since trust is earned, I still have a long way to go, but am off to a good start. Without our franchisees, committees, and council, I simply could not do this job. Those franchisees are serving our guests on the front lines – I can’t run this business without their candid feedback.”

Occhiogrosso: How do you feel about franchise advisory councils? And was one in place already?

Watson: “I’m a huge advocate for franchise advisory councils, specifically when nearly 60% of all franchise agreements at Tropical Smoothie Cafe come from existing franchisees. The Tropical Franchisee Council (TFC) was established in 2018 and has been invaluable for our growth. “Relationships Rule” is one of our core values, and because of that, people are at the heart of our company. Our relationships are founded on trust and respect for the unique talents of our teams, franchisees, and vendors alike. We strive to continue to harness these relationships in this way and feel that this approach will continue to fuel our success. The TFC works hand-in-hand with Tropical Smoothie on all facets of the business from operations, IT, marketing, construction, and beyond, and their genuine feedback continues to establish the open communication we strive for, helping us to enhance our business model on an ongoing basis. This process only helps our individual franchisees and their bottom line, respectively.”

Occhiogrosso: What is the mission and goal of the company over the next few years?

Watson: “At Tropical Smoothie Cafe, it’s our mission to inspire a healthier lifestyle by serving amazing food and smoothies, with a bit of tropical fun. We want to be an escape for our consumers in this hectic world we live, and an incredible business model for our franchise partners It’s an exciting time to be a fast-casual concept within this segment, specifically as the market size of the juice and smoothie bars industry is expected to increase by 2.3% in 2020, reaching nearly $3 billion in revenue across the globe. We consider ourselves to be an approachable, healthier option for the average American, and our customer loyalty system-wide continues to climb. Our company sells about 200 franchises, opens over 120 cafes a year, and has more than 500 locations in the pipeline. As a brand, we strive for excellence in service and creating a culture of hospitality for our business no matter which location you visit, and this year we’re prioritizing them even further by enhancing pillars of our hospitality-centric culture and the technology we use to create convenience for our guests in order to reinforce our position as the leader in our segment. Over the next five years, our goals are to reach 1,500 cafes open across the U.S., with over 18% profitability for our franchisees on average volumes in excess of $1M, all with very high operational satisfaction for our guests. Our annual tactics are focused around delivering those results.”


Although I did not want to focus on COVID-19 in this interview, it is difficult to ignore its impact on the restaurant community as well as franchisees in general. So I was compelled to ask Mr. Watson his thoughts on the pandemic and the company’s response.

Occhiogrosso: During the current COVID-19 crisis, what steps have you taken to ensure that Tropical Smoothie Cafe supports the local community?

Watson: “When COVID-19 struck the restaurant landscape in mid-March, we closed all dining rooms and shifted our focus to drive-thru, curbside pickup, and delivery where available. Then we determined two focus areas, giving back to the community and prioritizing support for our franchisees. Some of our franchisees had the idea to donate smoothies to first responders and hospital workers in Atlanta. We loved the idea so much we launched a nationwide campaign to donate 100,000 smoothies across the country and the response has been incredible. Within the first day, several local franchisees jumped on board and donated more than 600 smoothies each, and the donations just kept growing from there. On April 16 we met our goal of 100,000 smoothies, but our franchisees haven’t stopped there, and the new challenge is to donate a total of one million smoothies by the end of May. Knowing that those essential workers are not only in the healthcare fields, we’ve also extended our giving to grocery store, warehouse and post office employees. We’re proud to report that as of today, we’ve donated more than 200,000 smoothies to these hometown heroes, and we’re not done yet! In support of National Nurses Appreciation Month in May, we have also pledged to donate $100,000 to the American Nurses Foundation’s COVID-19 Response Fund upon reaching our goal of giving away 1,000,000 smoothies.”Our franchisees are the heart of our brand, so we wanted to make sure we were doing everything we could to help them stay afloat through the crisis. We decreased royalties and deployed hyper-local marketing strategies to drive business within a 1–to 2-mile radius of cafes. While our projected 2020 growth might take a step back due to the coronavirus, I believe our approach to navigating through this will help us emerge quickly once it passes.”

Occhiogrosso: What are some of the additional support initiatives you put in place for your franchise community during the pandemic?

Watson: “Our franchisees are the heart of our brand, so we wanted to make sure we were doing everything we could to help them stay afloat through the crisis. We’ve implemented various franchisee support initiatives, including decreased royalties by 50%, ongoing support with PPP loans and real estate deferrals and abatements, rolling out curbside delivery systemwide, deployed hyper-local marketing strategies to drive business within a 1–2-mile radius of cafes, among many others. While our projected 2020 growth might take a step back due to the coronavirus, I believe our approach to navigating through this will help us emerge quickly once it passes.

Occhiogrosso: How do you see the company moving forward?

Watson: “As you know, the restaurant industry has taken a huge hit. Although COVID-19 has directly impacted our business, some days being down more than 50 percent, we consider ourselves lucky to have a business model that allowed us to easily transition to grab-and-go, curbside, and delivery only. I think the biggest shift will take place for those restaurants that can’t be open right now. The guests who support local businesses in and around their communities are the ones we give the credit to because their loyalty to our cafes is what has ultimately maintained our ability to serve. Because of our amazing guests, our franchisees, and the communities they serve, including those on the front lines of this pandemic, we will get through this. As reopening guidelines are being determined, we plan to move forward with an abundance of caution.”

In conclusion, I believe the growth of Tropical Smoothie Cafe over the last two years demonstrates Mr. Watson’s steady leadership and a clear understanding of building on the momentum that has made the brand a leader in its category. In my experience, making franchisee success and profitability the priority is the key to the longevity of any franchised brand. The fact that nearly 60% of all new Tropical Smoothie Cafe units are opened by existing franchisees underscores the franchise owner’s satisfaction with the concept, the company, and it’s leadership. It’s almost all you need to know about the results of Mr. Watson’s work and commitment to the franchisees. Successfully taking the reins on an existing franchise company can be a daunting task, but in the case of Charles Watson, he continues, as their franchise website claims, to create waves for a brand that started on the beach.

About Charles Watson:

Charles Watson was named CEO in December 2018. In this role, he is responsible for the brand’s strategic vision and overall franchise performance. He was previously Tropical Smoothie Cafe’s Chief Development Officer since 2016, after serving as VP of Franchise Development since 2010. In these roles, Charles was responsible for all development of the Tropical Smoothie Cafe brand. A veteran hospitality professional, Charles has worked for several hospitality-related companies, including Wyndham Hotels & Resorts, Intercontinental Hotels Group, US Franchise Systems, Inc., and Hospitality Real Estate Counselors. Charles is a graduate of The Hotel School at Cornell University and also holds a Masters of Business Administration from The Terry School of Business at The University of Georgia.

6 Key Points To Keep Your Restaurant Profitable In A Slow Down

Posted on by Franchise Strategist

Look for trends in your sales—for example, busy days and hours versus slower times and days. For instance, if Tuesday afternoons are consistently slow, then consider cutting back on your hourly staff for that period…

6 Key Points To Keep Your Restaurant Profitable In A Slow Down
by Gary Occhiogrosso – Managing Partner, Franchise Growth Solutions, LLC.
Photo by Gor Davtyan on Unsplash

In good times and not so good times, operating a profitable restaurant can be a daunting task. The high cost of rent, labor, and raw ingredients, often overlooked by guests seeking a fine dining experience at fast-food prices can make value perception and profitability difficult. Nonetheless, there are a few things every operator should be aware of, especially during tough economic times. Below I have listed six tips that when put into everyday practice, not only help save money and increase sales when times are lean but serve to maximize profits in better economic times.

Be Mindful Of Your Payroll
Payroll is the one thing in your operation that you have total control over. You determine it, and no one or anything else has a hand in the result. Knowing how to manage payroll is an essential element to success in the restaurant business.
Controlling labor during a slow business period can be tricky. If your businesses’ survival is dependent upon the need to terminate personnel, then managing the schedule of your hourly employees as well as your key people in a compassionate way must be your top priority. You’ll need to delicately balance the limiting of hours among your best employees. Whenever possible, spread the cutbacks out amongst as many team members as possible. That way you can lessen the impact to any one team member.
Be mindful that if you schedule less labor than you need, your restaurant may end up giving poor guest service. That will negatively impact the guest experience as well as your Social Media reviews. On the other hand, if you over-schedule your labor as a percentage of sales, then you’ll be out of line with acceptable budgets and typically lose money.
Look for trends in your sales—for example, busy days and hours versus slower times and days. For instance, if Tuesday afternoons are consistently slow, then consider cutting back on your hourly staff for that period. If you employ a salaried manager, have that person substitute in a station position. Labor is the most critical line item on your P&L. Oversee it, adjust it each day based on projected sales. Remember, unlike food inventory, which allows you to store it (in many cases) for another day, labor, once spent, is gone forever.

Engineer Your Menu To Reflect Current Goals
Sometimes bigger isn’t better. A smaller, more focused menu is often more profitable than the “be everything to everyone approach.” During a recession or slow season, use your menu to attract new customers as well as enticing your regular customers to visit more often. Adjust your menu by offering items that have more appeal in a budget-conscious climate. Understanding what guests want, what they can afford, and what you wish to sell them is a critical piece to menu engineering.
Also, position your lower food cost items in a prominent spot on your menu. That way, you can offer your guests lower-cost menu items and still make a profit.
And although it goes without saying, don’t forget to conduct a weekly inventory. Monitoring your food cost will help you manage cash flow most efficiently and accurately.

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MATTO FRANCHISE
A Revolution is Brewing
LEARN MORE HERE:
 https://www.mattofranchise.com/

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Stay In Front Of Your Customers
The saying “out of sight, out of mind” is never is more accurate than in a recession or slow period. You may not want to run your full Radio/TV or Print campaign. However, now is not the time to cut advertising to zero. Instead, increase your paid social media and your paid Google ads. Post photographs of guests in your restaurant, delicious-looking food items, and creative, fun graphics to entice and remind your guests how much they enjoy your restaurant and what you have to offer.
In addition, utilize the database you’ve collected of customer’s email addresses and mobile telephone numbers. You can use this data to send your customers special offers via email blasts and text messaging. Be proactive!

Promote Value, Not Price
During a recession or other tough times, offer your guests real value, not discounts. It is my opinion that you should never attach the price of the menu item to the item itself, for example, selling a hamburger for $1.00. Discounting your products creates a considerable problem for future sales of those items when you move them back to full price. Lowering the price of a menu item creates a product/price value perception, which may negatively impact the customer’s perception of value at a later date. Guests will connect the cost of the menu item to its overall value, now and in the future. Cutting prices for the sake of attracting customers or keeping up with a competitor is never the answer.
Instead, create reasons and additional “occasions to use” your restaurant in your guest’s mind. Then the guest will associate a discounted price with a particular promotion or event. For example, ladies’ night, or seniors day, or it could be the anniversary of the restaurant, and you’re rolling back prices, or National “whatever” Day. Whichever the case, offer real value by promoting events and Limited Time Offers (LTO’s) as a reason to create the “frequency of visit.” This method is also useful for attracting new guests or guests that haven’t visited your restaurant in a while.

Paying Attention To The Details Saves Money
Pennies add up! Keep a watchful eye on expenses. Monitor electricity and water usage, napkins, paper towels, cleaning supplies, and other items that often go unnoticed until you see the cost on your P&L. Be mindful and control those costs each day. Make your staff aware of things like shutting off lights, turning off water faucets, and how many paper towels they may be used to clean a counter. Get your team members “woke” to the idea and actual cost of everything in the restaurant.

One Final Note
Good times follow bad times, and bad times follow good times. Nothing is forever, so learn how to manage a restaurant through a rough patch you’ll be in a better position to maximize your profits when times are good.

MATTO FRANCHISE
A Revolution is Brewing
LEARN MORE HERE:
 https://www.mattofranchise.com/

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High-Quality Bubble Tea Concept – Magic Cup Cafe to Franchise Five New Locations

Posted on by Franchise Strategist

High-Quality Bubble Tea Concept – Magic Cup Cafe to Franchise Five New Locations

PRESS RELEASE – MAGIC CUP FRANCHISING
‍
Dallas Magic Cup Cafe, a bubble tea, smoothie, and coffee cafe concept will be franchising five cafes to select franchise partners in Houston and Dallas within the next few years.

The Magic Cup team, led by owner My Lynn Nguyen, is working with industry expert Gary Occhiogrosso, founder of Franchise Growth Solutions, to expand the turnkey Magic Cup Cafe business model. Mr. Occhiogrosso was instrumental in the successful launches of nationally recognized brands such as Ranch *1, Desert Moon Fresh Mexican Grille, and brands found under the multi-brand franchisor, TRUFOODS, LLC.

A Complete Franchise Program
Ms. Nguyen stated, “We are excited to be offering the Magic Cup opportunity to passionate entrepreneurs in the Dallas and Houston Markets. We spent the last several years perfecting our menu, systems, and marketing. We truly feel confident that we are ready to put our franchise partners in the best position to achieve success.”

As part of the program developed with Occhiogrosso and operational consultants, franchise partners will receive a total of four weeks of one-on-one training both at Magic Cup headquarters and at the partner’s cafe. Then, they will receive continual corporate support inclusive of streamlined business development, ongoing product development, and multimedia marketing as their location grows.

READ THE ENTIRE ARTICLE HERE:https://www.franchisegrowthsolutions.com/post/high-quality-bubble-tea-concept-magic-cup-cafe-to-franchise-five-new-location

It’s Harvest Time – Tips On Selling Your Franchised Business

Posted on by Franchise Strategist

You have used the franchise system, brand, and people to build your business. Don’t be afraid to use them to exit.
They have a critical interest in a successful transition. Use them to help you close the deal.

In today’s post, Tom Spadea, Founder and Partner in Spadea-Lignana Franchise Law shares his thoughts on the best way to sell your existing franchise business. As you might imagine there are steps that you need to be aware of while moving through this process. Working with your franchisor is just one way to expedite and ensure a smooth transition. Selling your business is a big decision. If you’ve worked with the end in mind then it should be a payoff, not an act of desperation. The payoff after years of smart work should be reflected in the multiple paid on EBITDA from an eager buyer who sees value. One thing I’ll remind you; Buyers want “potential” but they don’t often actually pay for it. Smart buyers will pay based on a specific set of guidelines to determine “valuation” or “enterprise value” which directly equate to selling price and price paid. This article explores best practices and tips when selling your franchise.

Franchise Attorney

Where Do I Start if I Want to Sell My Franchise or Buy an Existing Franchise?
By Tom Spadea – Spadea Lignana Franchise Law

If you have made the decision that now is the time to exit a franchise, you need to accomplish three critical things before placing your business on the market. If you are interested in buying an existing franchise, it’s also important to understand these three factors because it can affect how you move forward.

1. Discuss Future Plans
First, you should discuss with your franchisor what your plans are. All franchise relationships eventually come to an end. You are probably not the first and won’t be the last franchisee to exit the system. You have used the franchise system, brand, and people to build your business. Don’t be afraid to use them to exit. They have a critical interest in a successful transition. Use them to help you close the deal. If you have a specific reason why you think telling the franchisor will compromise your exit, then you should discuss that with your franchise attorney. If you don’t have an attorney that you are comfortable working with, please give us a call for a free initial consultation at 215-544-2452.

2. Gather Documentation
Second, you need to gather documentation and clean up any inconsistencies, errors or omissions in your paperwork. The list is extensive and you can never have too much documentation. Buyers will take lack of documentation or documentation they have to fight to get as a sign of trouble and it will break down the trust between you. Not only will it potentially affect your value, it will cause unnecessary delays.

In a small business transaction, the trust between the buyer and seller is critical. Without trust, the deal will not happen. The way you can build trust is by having all the documents readily available for any buyer who is serious about making an offer. You need to tell a story to the buyer, and that story has to be validated by documentation.

Read the entire article here: https://www.spadealaw.com/franchise-law/buying-or-selling-an-existing-franchise

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About Tom Spadea
Tom Spadea spent more than 15 years in corporate and entrepreneurial positions before completing law school at Temple University’s Beasley School of Law. His undergraduate degree is in finance from Marquette University, where he graduated Cum Laude. Tom is a Certified Franchise Executive (CFE), a non-legal designation earned from the International Franchise Association. He has also been named a “Legal Eagle” by Franchise Times, a distinguished award recognizing Tom as a leader among his peers in franchising.

Tom is the founding member of the Philadelphia Franchise Association and is the current President and Chairman. The Philadelphia Franchise Association holds quarterly networking and educational meetings, bringing together franchisors, franchisees, and suppliers.
Read more about Tom here: https://www.spadealaw.com/attorney-profiles/tom-spadea
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If you’re considering selling your business or buying a business contact Franchise Growth Solutions.
We can help you sell you business quickly and at the highest possible price.
Contact: [email protected] and visit: www.franchisegrowthsolutions.com. We can help!

This Week’s Top Picks – Emerging Franchise Brands

Posted on by Franchise Strategist

If you’re considering entering the world of “Self Employment” one of the best way to reduce risk is to purchase a franchise. A franchise affords you the opportunity to join a company with a proven business model and a track record of success. It’s better than “going it alone” …When you consider the number of “moving parts” connected with starting your own business, franchising makes all the sense in the world. You’ll get a business system along with the guidance and experience of the franchisor. Here are just three brands in our portfolio that are featured as our Top Picks this week.

By Gary Occhiogrosso – Franchise Growth Solutions
Photo by Sharon McCutcheon on Unsplash
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Skinny Pizza franchise

GET THE UPDATED SKINNY ON THIS FRANCHISE OPPORTUNITY
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SKINNYPIZZA
* New Territories available
* Smaller retail footprint
* Lower cost of entry
* Great co-band opportunities

America has a real passion for pizza. Since the first pizzeria opened here in New York City in 1903, pizza has grown to the most popular food in America. An incredible 93% OF AMERICANS gladly admit they eat pizza at least once a month.

Our passion for pizza is staggering. The National Restaurant Association (NRA) indicates that pizza sales represent almost $38 BILLION IN AMERICA — over $100 BILLION worldwide. Where is our love for pizza heading? The trending is actually very clear.

The research firm Technomic® in their most recent “Pizza Consumer Trend Report” found that 41% OF AMERICANS say they would be happy to pay for healthier ingredients including ORGANIC TOPPINGS AND CRUSTS, as well as all-natural LOCALLY SOURCED ingredients.
What makes it SKINNYPIZZA®? We have spent years creating a thin pizza crust that has great taste and complements any topping. At the same time, we have carefully crafted our entire menu for those that are health- and environmentally conscious, as well as those that simply love great tasting pizza, salads and soups.

Our PIZZA CRUST is made with NO PRESERVATIVES or ADDITIVES. That alone is something that is incredibly rare, actually reserved to the top 1% of pizzerias. Our PIZZA SAUCE is made with 100% USDA CERTIFIED ORGANIC tomatoes.

But the SKINNYPIZZA® concept does not end there. Along with the best tasting pizza you will ever eat, we have carefully developed our menu to complement our healthy approach to great Italian fast-casual dining.

To Learn More About SkinnyPizza Click Here https://www.skinnypizza.com/franchise.html

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Ice Cream Franchise
It’s always a good day to…GOFER Ice Cream

IT’S ALWAYS A GOOD DAY TO …
GOFER ICE CREAM
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Our Brand is based on the simple premise of selling high quality American Style ice cream in clean and inviting retail environments, without the use of gimmicks or catering to the latest ice cream fad.We focus equally on hard hand-dipped and premium soft serve ice cream products. Our menu also includes fat free treats like “Gofer Lite” and new innovations like Plant Based ice creams and “Gofer Bites”. We also feature ice cream cakes, party boxes, online ordering and catering options for multiple income streams.Our shops are bright and family oriented.

Warm welcomes by our staff are often accompanied by the smell of fresh made waffle cones, which are created several times a day.The concept, from a franchisee’s point of view, is to be a quick service and efficient operation. The system allows for a typical shop to function with minimal staff led by a motivated owner operator.

We support our franchisee partners through the entire process.
* Site selection
* Design and Construction
* Comprehensive training
* Grand opening
* Marketing Programs
* Benchmarking with industry experts

We teach you everything you need to know to open and operate your own Gofer Ice Cream shop.

To Learn more About This Sweet Brand Click Here: https://goferfranchise.com/
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Acai , franchise, profit

Acai Express
Be in the Business of Better…
* Better for You
* Better for the Planet
* Better for Franchisees.
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Our Beginnings

Not long ago, I was just like you. Smart, savvy, and tired of working hard for someone else’s benefit. I spent 10 years in the traditional restaurant business and knew the hard work I was doing could be made simpler with a system, made more enjoyable and less complicated, and better fit my lifestyle. My dream was to be able to put my experience to work in an easy and fun restaurant concept and support my family doing something I love. Acai Express is that.

When Passion Turned to Profit

I’ve always been an active guy who loved surfing and perfecting Brazilian Jiu Jitsu in my native Puerto Rico, but finding healthy and delicious food on the go and at the beach was a challenge. So, I started selling my own homemade organic super food bowls and smoothies. I used only the freshest ingredients and the centerpiece of all my creations was the 100% organic Grade A acai berry, a rich anti-oxidant stone fruit that grows on trees in the Amazon river basin. I just knew then that it was packed with flavor and goodness, but today the acai berry is considered a benefit to all kinds of health and well-being: cognition, heart health, aging, and weight loss. My acai-based menu got so popular, I started adding to the menu and selling out of my own food truck. When the number of my trucks went from one to thirteen and were located throughout Puerto Rico, I knew I had a business concept that small business owners anywhere could use. And, one that could marry an active lifestyle and career with an appreciation of honest, organic and nutrient rich foods. That’s the best part of Acai Express for me. I was able to be successful on my terms without sacrificing my intrinsic values.

Join the Family
When you become a member of the Acai Express family, even though our system is simple and easy to follow, you’ll work one-on-one with me and my team of franchisees and employees to ensure your success. We’re not some faceless corporate giant, we are the guys who get it done, and like you, are committed to success. Because your success is our success. You’ll also benefit from our hard won knowledge of what works, how to market and what consumers want. And, you’ll be part of a healthy lifestyle movement that has quickly gone from trend to established consumer demand.

To Learn More About this LifeStyle Brand Click Here: https://acaiexpressfranchise.com/
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TO SEE ALL THE BRANDS IN THE FRANCHISE GROWTH SOLUTIONS PORTFOLIO CLICK HERE: https://www.franchisegrowthsolutions.com/clients

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Franchise Disclaimer
None of the communications on this website should be construed as an offer to sell a franchise. We will not offer any franchise for sale: (1) until your state has duly registered our franchise offering or duly exempted our franchise offering from registration, if your state requires registration or exemption; and (2) until we have duly delivered our franchise disclosure document to you in compliance with applicable law.

Key Points To Consider When Securing The Right Location For Your New Restaurant

Posted on by Franchise Strategist

Gather data on the type of people living in the area. For example, if you’re planning to open a hip hamburger joint, you want a younger demographic, which might be present near a college campus. Do the people in the area like the type of cuisine you’re going to serve?

By Gary Occhiogrosso Managing Partner, FranGrow & Forbes Contributor
Photo by Louis Hansel @shotsoflouis on Unsplash

How many times have you seen new restaurants open their doors only to close them six months later? Ever wondered why? Among the top 3 reasons is improper location selection. The most successful restaurants are not only those with a great concept, outstanding food, legendary service but also the perfect location.

I spoke with David Simmonds the Founder & President of RESOLUT RE. He shares his insights on some key factors to consider when looking for the perfect restaurant location.

Here are some critical points to evaluate when selecting a restaurant location.

Conduct a Thorough Location Analysis
To be a successful food service establishment, the restaurant must fit the demographics; the restaurant needs to be accessible to the type of guests that live and work in the market it serves. Location analysis is an in-depth look at the general area you’re considering for your establishment. Gather data on the type of people living in the area. For example, if you’re planning to open a hip hamburger joint, you want a younger demographic, which might be present near a college campus. Do the people in the area like the type of cuisine you’re going to serve? Going back to the same example, an upscale seafood restaurant is probably not going to be a popular choice for most broke college students. Examine what types of businesses have been in the location you’re seeking in the past. It’s essential to understand why those previous restaurants failed to ensure you don’t repeat their mistakes.

David Simmonds, recommends “Know who your customer is- what he/she looks like from a demographic and psychographic perspective. One can accomplish this from the analysis of customer data from existing locations, or one can make as educated of a guess as possible. We recommend hiring a qualified professional who has access to different platforms of data that identifies the many characteristics and behaviors of people in defined areas.”

Also, the size of the local population is essential. You need to assess the number of customers you’ll need for your restaurant to remain profitable. Can the area sustain those numbers? The individual restaurateur can find many of these demographic data points, but Simmonds states: “While there are databases of comps available to people within and outside of the commercial real estate industry, nothing beats a CRE professional who is very active in the subject market and has relationships to obtain comps that are recent and pertinent.

Don’t Forget The Basics
In addition to the location analysis, there are some critical fundamental factors also to consider. Unless you’re going to open your restaurant in an extremely high foot-traffic friendly part of town, you’ll need an easy access parking lot as close to your restaurant as possible. Additionally, the side of the street you’re on relative to the traffic flow matters as well. If people need to make a left turn ten feet from a busy intersection to get into your parking lot, they may go elsewhere. Customers love convenience, so you must build that into your restaurant footprint.

Other things that matter include the overall safety of the area, as well as whether the entrance to your restaurant is openly handicap accessible. Your patrons need to feel safe and secure, and they need to be able to easily access your building, even if they require the use of a walker or wheelchair. You need to diligently go over each one of these factors when examining possible restaurant locations in your area.

Everything is Negotiable
To lease or to buy? This can be a tough but crucial question. You need to seriously weigh the pros and cons of leasing space or buying one outright. It may come down to your budget and how much you plan to spend on the remodeling and to set up your new space, as well as how much you have available to pay as rent or a mortgage. There are pros and cons to both leasing and buying. Leasing is a much more flexible option as far as the future of your business is concerned since it enables you to change locations (depending on your lease, of course) without having to worry about resale values or investing large sums of cash as a down payment. However, leasing requires knowledge in a lease negotiation. When asked about what can be negotiated, David Simmonds points out, “Absolutely, everything is negotiable, in theory. Of course, the extent to which landlords are negotiable depends on the type of business being talked about for the space, the credit and financial history of the person or entity that would be signing onto the lease, local market conditions, and each landlord’s current position in the property and goals for it.”

Another negotiable point is how much free rent time you can secure from the landlord so you can build out your space without paying rent. Simmonds answers it bluntly, “As much as you think you can get away with, without aggravating the landlord enough not to respond at all. Again, this is where a qualified professional with a thumb on the pulse of the market earn their money.”

Exclusivity For Shopping Center Locations
If you’re considering opening your restaurant in a shopping center, you’ll want to negotiate some measure of exclusivity with the landlord. This will prevent another restaurant featuring the same cuisine from opening in the same shopping center. I asked David if this is a realistic expectation from a restaurant tenant. He explains it explains this way: “Typically- yes, but again, this will depend on a myriad of factors: type of restaurant, credit/financials on the lease, local market conditions; meaning how much of a landlord’s market it is, how big the center is and what tenant mix the landlord would like to see in the center.

On the other hand, if you can afford to buy a piece of property or an existing building, you won’t have to deal with any potential landlord issues or rent increases. It’s important to weigh all factors specific to your situation and location before signing a lease or buying space.

Take Your Time to Secure the Perfect Spot
Using a professional commercial broker can accelerate the process, but patience is a necessary component. Though it may be difficult, don’t rush through the process. It’s completely normal to feel pressured into finding a space and jumping right in, but settling for a location that seems to be just “good enough” simply won’t cut it. The perfect space for your restaurant is out there, so if it’s a success you’re seeking, wait to find the right location, then snap it up!

ABOUT: David Simmonds

David Simmonds founded RESOLUT RE in January of 2009 and has since built a massive, international, 3rd-party, brokerage platform. RESOLUT has 6 offices across Texas (Dallas/Fort Worth, Houston, Austin/San Antonio, McAllen, Midland & El Paso), and services the great states of Louisiana out our Lafayette office, and New Mexico out of our offices in Albuquerque and Sante Fe.

RESOLUT RE represents over 40 tenants nationally, in Mexico and in Canada. We have the ability to service our clients’ expansion needs anywhere in the United States and up to 77 countries around the globe.

RESOLUT RE markets over 800 projects and exclusively represents over 250 tenants regionally across Texas, New Mexico and Louisiana.

David is a member of the International Franchise Association (IFA) and the International Council of Shopping Centers (ICSC) and received a Bachelor of Arts degree in Economics from Columbia College/Columbia University in New York City.

George can help you move out of the city and into a spacious home in the suburbs or find the perfect business location. text George at 201-245-3550 for a private consultation.

Can a Company Be Great Simply By Doing Good?

Posted on by Contributing Writer

When we embed corporate social responsibility initiatives into the culture of an organization, we create a culture of caring for employees and greater value and accountability to all business stakeholders.

Can a Company Be Great Simply By Doing Good?
By Bizman
Photo by William White on Unsplash

Today we hear so much about corporate responsibility. Organizations focus on building sustainable products and taking a proactive interest in the communities where they operate. Many budget for initiative programs designed to ensure that the company is connecting and engaging the people they classify as “customers.” This shift to “Corporate Conscience” is due in part to how younger workers think about the world and choose the companies they decide to work for.

Corporate Mission With A Broader Approach
Companies now employ people who have a specific mission; to create and/or seek opportunities in the community whereby the company can connect and participate in outreach aimed at at supporting locally motivated programs.
When we embed corporate social responsibility initiatives into the culture of an organization, we create a culture of caring for employees and greater value and accountability to all business stakeholders.

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franchise, small business, senior citizen
Own the Franchise of your Dreams…Click Here to Learn more
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Stakeholders can include any and all – customers, communities, employees, the environment, investors and shareholders.

It’s this conscientious business philosophy that can help companies not only in their pursuit of profits but also in leading and inspiring their people, customers, vendors and partners to greater responsibility, enrichment and sustainability.

In Conclusion:
* Corporate Conscience is not a fad or publicity narrative, rather it is a focused effort to give back to the community.
* Corporate Social Responsibility has grown into a more “grassroots” approach to creating a better work/life balance in and out
of the company.
*Corporate Conscience initiatives lead to increased customer engagement, employee moress , productivity and eventually ROI.

Comment below if you believe in the idea of  Conscious Capitalism?

 

 

 

Franchising: The Best Investment Older Americans Can Make?

Posted on by Franchise Strategist

Franchising allows the silver economy to invest in themselves, and have an active hand in their own success.” Occhiogrosso adds, “Older Americans are one of the fastest-growing segment of franchise buyers. The percentage of adults 50+ who are franchise owners has grown from 20 percent in 2010 to an estimated 35 percent in 2020.

Photo by Simon Wijers on Unsplash

Franchising: The Best Investment Older Americans Can Make?

Over 10,000 Americans turn 65 every day (*1) and by 2030, it is estimated (*2) that the entirety of the Baby Boomer generation will be over the age of 65. For corporations, this older workforce presents challenges. An estimated 41% workers over the age of 60 choose to work well past age 65 for social or financial reasons (*3). Many companies would prefer to clear the way for younger, less costly employees, and as a result, more than half of older U.S. workers are being pushed out involuntarily, or are being asked to take a voluntary early retirement. (*4)

For these still active workers, and especially those with a large buy out in the bank, franchising may be a viable Act II. “Many adults by age 60-65 have an investment or retirement portfolio of stocks and bonds,” says Gary Occhiogrosso, Founder and CEO of Franchise Growth Solutions LLC, a New York-based strategic planning, franchise development and sales organization. “That means that for years mature adults have basically invested in other businesses, passively counting on the success of those businesses for their own financial success. Franchising allows the silver economy to invest in themselves, and have an active hand in their own success.” Occhiogrosso adds, “Older Americans are one of the fastest growing segment of franchise buyers. The percentage of adults 50+ who are franchise owners has grown from 20 percent in 2010 to and estimated 35 percent in 2020.”
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franchise, fast food, Japan
www.gogocurryfranchise.com

WELCOME TO Go! Go! CURRY USA Franchising. Since 2007 we have been serving our Japanese Curry to our hungry customers, and are proud to be at the forefront of the growing Japanese Curry craze. Over the last decade, Go Go Curry has established itself as the industry leader in this emerging culinary market which brings a unique style and flavor to the fast casual industry. Click Here For Franchise Information
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The appeal of a franchise for an older American looking to take an active role in their own business, includes:

Benefit from the success of an established business
– Almost like a business in a box, when you align with a successful brand you are buying the benefit of their established brand, and their marketing, distribution and supply chain.

Choose a franchise concept and size that works for you
– Today, there are franchises of every size and budget. Most important is to find a concept you can get behind and champion.

Take advantage of a franchisors image, marketing, and location services
– In addition to speed to market, when you invest in a franchise, you are buying into a proven concept and a proprietary operating system. Rather than DIY, a franchise means in-depth training and hands-on support in every aspect of the business: from financing and location to store design and local marketing.

Franchising lessens the obstacles of financing through a bank
Many franchisors are registered with the SBA (Small Business Administration) thus reducing SBA obstacles to getting financing. Lenders take into account the franchisor’s experience and reputation when deciding whether or not to lend money.

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MATTO FRANCHISE
A Revolution is Brewing
LEARN MORE HERE:
 https://www.mattofranchise.com/

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Work the system to make it work for you
– Many older workers have been successful by following a system or way of doing business. Adapting to a proven formula helps you avoid costly small business mistakes. Once you are up and running you are no longer working the system, the system will be working for you.

Long term growth
– Franchising can offer a shortened timeline to profitability. The structure a franchise offers lessens the learning curve, allowing you to get up to speed faster. Once you have the brands system working for you, you can think about expanding to become a multi-unit franchisee.

Fulfill a lifelong dream
– Nearly two-thirds of Americans would rather have their own business than to work for someone else. The idea of starting a business from scratch can be intimidating, but a franchise provides a proven model of success and unmatched support.

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franchise, small business, senior citizen
Own the Franchise of your Dreams…Click Here to Learn more

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Create a legacy
– In addition to creating an asset, successful franchisees create a legacy for their families. Older franchisees can pass on their business to their children as a growth opportunity and enjoy continued income during retirement. If you do decide to sell, most franchisors will help you locate a new buyer and assist with the arrangements.

Occhiogrosso, who has over 30 years experience in selling and marketing brand name franchises, states, “As the saying goes; If you want to go into business for yourself but not by yourself, then franchising is a great option. This is especially true for experienced older people looking for an exciting and rewarding Act II.”

For more information on franchising over fifty, visit the Franchise Growth Solutions website at www.franchisegrowthsolutions.com or call 917.991.2465

ABOUT FRANCHISE GROWTH SOLUTIONS, LLC
Franchise Growth Solutions, LLC is a strategic planning, franchise development and sales organization offering franchise sales, brand concept and development, strategic planning, real estate and architectural development, vendor management, lead generation, and advertising, marketing and PR including social media. Franchise Growth Solutions’ proven “Coach, Mentor & Grow®” system puts both franchisors and potential franchisees on the fast track to growth. Membership in Franchise Growth Solutions’ client portfolio is by recommendation only.

For information on Franchise Growth Solutions or any of its franchise opportunities, please contact Marisa Rae at 917.991.2465 or via email at [email protected]

Sources: (*1) Yahoo Finance 2018 (*2)AARP (*3) Gallup Poll 2018 (*4) ProPublica

Financing a Business? – What You Need to Know About SBA Loans

Posted on by Franchise Strategist

Photo by Vladimir Solomyani on Unsplash

Many people are often misled to believe the money from an SBA loan is essentially “free.” That the funds are provided with the help of government grants and no-interest offerings; however, that is not the case.

Financing a Business?
What You Need to Know About SBA Loans
By Gary Occhiogrosso – Managing Partner, Franchise Growth Solutions, LLC

Whether you’re taking the plunge and starting a small business, or you’re interested in purchasing an existing one, or buying a franchise, you may benefit from utilizing an SBA loan program.

What Is an SBA Loan Program?
The Small Business Association (SBA) 504 Loan, also known as the Certified Development Company (CDC) program, was created to assist small businesses with the financing of their startup or growth. SBA loans are used to purchase everything from franchises to equipment to inventory. The SBA loan program was also created to help eliminate the “risk” banks take.
Through an SBA loan program, applicants can take out loans at below average market rates, which makes it an affordable option for small business owners.
Because of the complexities, it’s crucial to speak with a lending officer at a local bank. They may offer many options. Often, SBA loan benefits go untapped because many people are unaware of the program. In some cases, the information is not generally provided upfront.

Who’s Eligible
Only small business owners are eligible for an SBA loan. Specifically, their business’s net worth must not surpass $7 million, and their income cannot be more than $2.5 million in the preceding years.
Applicants must be able to provide records from the past two years that show stability and income, and they must have a credit score of at least 650. However, it also helps if the applicant has a background in the field of business they wish to start.

Setting the Record Straight
Many people are often misled to believe the money from an SBA loan is essentially “free.” That the funds are provided with the help of government grants and no-interest offerings; however, that is not the case.
Like any loan, SBA loans are offered through banks, but only SBA-approved banks can offer the program. You do not pay the SBA back; you pay the bank back directly.

Undoubtedly, taking advantage of an SBA loan can be a game-changer in the world of small business. If your interested learning about funding your new business please contact us at [email protected] – We can schedule a call.

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Sources:
https://www.smartbizloans.com/requirements-eligibility
https://en.wikipedia.org/wiki/SBA_504_Loan
https://www.entrepreneur.com/article/79254
https://www.sba7a.loans/sba-7a-loans-small-business-blog/2017/12/1/sba-7a-loan-for-a-restaurant

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About the Author:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with it’s founders. He is the former President of TRUFOODS, LLC a multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast in New York City.
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franchise, fast food, Japan
www.gogocurryfranchise.com

WELCOME TO Go! Go! CURRY USA Franchising. Since 2007 we have been serving our Japanese Curry to our hungry customers, and are proud to be at the forefront of the growing Japanese Curry craze. Over the last decade, Go Go Curry has established itself as the industry leader in this emerging culinary market which brings a unique style and flavor to the fast casual industry. Click Here For Franchise Information