Tag: Strategy

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.

FLAWED STRATEGIC THINKING THAT DRIVES SERIOUS FRANCHISE LEADS TO DISQUALIFY YOU

Posted on by Franchise Strategist

Flawed Strategic Thinking That Drives Serious Franchise Leads to Disqualify You

By Paul Keiser
I Show Franchise Business Developers and Brokers How to Automatically Find Serious Leads

The leading reason we’ve found causing serious leads to disqualify brands and brokers from consideration is a lack of strategic thought, time and attention given to 21st Century aspects of franchise business development. As an industry, franchise business development methods are mired in tactics over 25-years old. It takes serious reflection and change to adapt to emerging 21st Century franchise buyer behavior and their very different expectations.

Here are five inter-related company cultural and strategic issues that, if ignored, cause serious leads to disqualify you from consideration.

Recognize Franchise Business Development is a Business within a Business
As they begin to scale, franchisors and brokers often struggle with business development. That’s because the knowledge and experience to do it well aren’t part of the operations or customer excellence skill sets of many owners and investors.

Franchise business development is actually a business within the larger franchise business with different needs. Recognizing this, and then properly staffing, funding and executing around a set of realistic goals can put you on a sustainable pathway to success.

Unfortunately, too many try to fix a faltering franchise business development program with band-aids; neglecting the thought needed to find the root causes of problems, not just surface symptoms.

Why…because it’s easy. Tactical solutions make everyone feel good. In fact, re-imagining a 21st Century version of franchise business development requires digging deeper.

To meet the challenge, three strategic areas critical to franchise business development must harmonize:

Storytelling
Finding and Nurturing Serious Leads
Intelligent Pipeline Management
Think of each of these areas as a leg of a stool. If the legs aren’t aligned, then the stool teeters and totters making it useless.

Do nothing and watch as serious leads disqualify you.

Inertia Kills Brands and Brokers
Many brands and brokers become paralyzed by the breadth and depth of change needed to adapt to the changing macro environment of franchise business development. The smaller the brand or broker the more daunting the challenges.

Smaller brands and brokers aren’t often blessed with tens of thousands of dollars laying around to “experiment” or try something new; so, fear stifles decision-making.

But time kills deals. Time also kills brands and brokers unwilling to adapt. It’s time to step up and either hire or develop the skills to upgrade franchise business development methodologies. The market isn’t waiting. Brands and brokers that grab an early mover advantage will prosper; while laggards will fall by the wayside.

Do nothing and watch serious leads disqualify you

Lack of Expertise
The skill sets needed to address both franchise business development technology and people’s evolving behavior doesn’t necessarily reside in most franchisors and brokers, who are often solo practitioners. Many franchisors have consumer marketing pros or agencies supporting franchisees. However, these same highly-talented people are inexperienced in the “black arts” of franchise business development and the psychological journey a serious lead embarks on in the Internet Age. You hired them to drive traffic into your stores and restaurants; not recruit franchisees. And likely they do a very good job for you.

Giving franchise business development insufficient support or forcing business developers to work with meager lead generation budgets or whatever software is around or cheap is commonplace. That’s a lazy approach and speaks to a lack of understanding of how to successfully grow a franchise business development powerhouse.

Ownership and leadership need to step up and either acquire or outsource the knowledge needed to reliably scale the business.

Do nothing and watch serious leads disqualify you.

The Internet Upends Traditional Notions of Franchisee Recruitment
Every generation from 1995 forward has been reshaped by the Internet. Consumers complete almost 75% of brand research for high-end goods and services on the web before making a call or a visit. They expect transparency. Your storytelling needs to meet a higher standard of excellence or these serious leads will just move on. So, ask yourself, do you tease or hide information or do you educate on your franchise business development website?

Text messaging has rapidly changed the franchise business development communication landscape. Today’s serious leads comfortably text back and forth with your business developer before engaging. What does that do to old-fashioned “dialing for dollars” models? Which leads are more engaged and serious?

Your franchise website is now expected to tell your whole story. It’s not just a brochure anymore or a landing page to get a form filled out. You’re forced to dig deeper to articulate your competitive differentiation. A test: if you can put your name on a competitor’s website, then something’s wrong with your story.

All brands are coming to grips with ever rising lead generation costs. Can we harness the vast potential of social media and online advertising to create affordable serious leads prospect? Can these newer channels become a game changer or are they just one more money drain? How do these leads convert into your pipeline compared to other channels?

Do nothing and watch serious leads disqualify you.

Leads Now Have the Power

Leads now control the research process. In fact, 75% of their research is already done before first contact. Serious leads expect complete and transparent information about brands. So, a solid story and a dedicated franchise business development online presence are now table stakes with serious leads. These serious leads engage when they’re ready; not before. So encourage them to do that by delivering a brand education experience that gets them emotionally and rationally invested in your franchise opportunity.

Do nothing and watch serious leads disqualify you.

Franchise Pipeline Solutions (FPS) helps new and emerging franchise brands find their most serious leads using an integrated pipeline management system. It combines enterprise-class CRM with multi-channel Marketing Automation, 1:1 and bulk text messaging, behavioral scoring and auto call scheduling. Our proven approach has been in worldwide use for over eight years.

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About the Author:
Paul Keiser has over 40 years of experience franchise development, social media and online lead generation, email nurture, marketing automation and brand storytelling. Today he makes his living giving precious time back to franchise brand business developers and franchise brokers by helping them find serious leads so they focus on more of the right people and do more deals.

FRANCHISORS AND FRANCHISEES MUST LEARN TO DEAL WITH CHANGE

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Franchisors and Franchisees Must Learn to Deal with Change

By Ed Teixeira

FRANCHISING,
Ed Teixeira is Chief Operating Officer of Franchise Grade and was the founder and President of FranchiseKnowHow, L.L.C. a franchise consulting firm.

If there is one thing that the Pandemic taught us, especially those in the franchise industry, is that certain events both large and small require change. It is a given that the recent Pandemic represents extraordinary change having last occurred 100 years ago. Franchise brands face frequent challenges requiring change including, a formidable new competitor, franchisee resistance to certain promotional programs, declining franchise system growth or a public relations problem like when the Subway Foot Long Sub, was found by a customer to be less than a foot long. When these situations arise, franchisors and franchisees must be equipped to implement change to meet the challenge.

Expect that franchisors will be required to implement changes to their franchise program from time to time some minor and some major. When a franchisor wants to make a change, based upon the magnitude of the change, it should be communicated to the franchisees before the change is implemented providing advance notice.

* Using the franchise advisory council as a sounding board

* Giving franchisees the courtesy of knowing about the change

* Providing the franchisee community an opportunity to respond

* Enlist select franchisees to help mold the change and avoid a confrontation

Some changes are routine in nature and can be implemented as per an existing policy. For example, a revision or clarification to a procedure in the franchise operations manual. Major changes that may have a direct impact on franchisees demand special attention. In certain cases, the change may not be that significant, but rather the perception by franchisees is that the change is the beginning of “more to come.”

Examples of Important Changes Include:

1.Changes to franchise agreements that significantly revamp contract terms, including renewal terms, royalty fees and default conditions. These changes may cause particular concern among franchisees that will be looking to renew their franchise agreement.

2. Changes in marketing or advertising programs which would represent a major departure from the current program.

3. Changes in the direction of the franchise strategy that involve applying resources to a new venture or business.

One of the most effective methods to establish and implement a major change is to involve the Franchise Advisory Council or marketing committee which includes franchisee and company representatives. These committees allow for a dialogue between the franchisor and representative franchisees which can help to foster positive franchise relations and establish a buy-in from existing franchisees.

When franchisors implement a major change that lacks franchisee involvement or advance notice it can be a recipe for trouble. To maintain positive franchise relations before implementing an important change the franchisor should gauge how the change could affect franchisees by obtaining feedback from franchisor field staff and select franchisees.

If feedback indicates a strong resistance to the change, the franchisor should consider the situation, and avoid unnecessary confrontations by being flexible. Change is an important aspect of all relationships especially in the world of franchising. It is important that the franchisor and franchisees conduct business within a climate of change that is positive and considers the needs and objectives of both parties.
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About the Author: Ed Teixeira
Ed Teixeira is a recognized franchise expert with over 35 years experience in the franchise industry. He has served as a corporate executive for franchise firms in the retail, manufacturing, healthcare and technology industries and was a franchisee of a multi-million dollar home healthcare franchise. Ed is the author of Franchising From the Inside Out and The Franchise Buyers Manual. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country and spoke at a number of venues including the International Franchise Expo and the Chinese Franchise Association in Shanghai, China. Over the course of his career, Ed has been involved with over 1,000 franchise locations and launched franchise concepts from existing business models. Ed can be contacted at 631-246-5782 or [email protected]
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News From Burger Village – Franchise Goes International

Posted on by Franchise Strategist

Burger Village Is Going International!
24 Sep, 2019

We’ve been waiting for the right time to announce this, but we just simply can’t contain our excitement any longer. Burger Village is OFFICIALLY GOING INTERNATIONAL. That’s right, our new Canadian location will be opening soon, and our northern neighbours seem to be just as excited as we are. Our food is organic, all-natural, and provided by local farmer families that give our customers the quality & great tasting food that they’ve come to expect. There is a lot for Canadians to be happy about. From the Toronto Raptors winning the NBA Championship, having a thriving national infrastructure, to having some of the most beautiful and natural landscapes in the world. Now we are proud to say you can add Burger Village to that list!

Why Is Organic Such A Great Choice To Make?
If not just for yourself, choosing to eat organic foods is also a great way to help protect our environment. Our farmer families treat their animals with love and dignity. Those farmer families then provide those animal products to our locations and give our customers some of the freshest tasting food they’ve ever had. Burger Village is slowly but surely continuing to grow our brand and provide our customers with more of the great food they’ve come to expect from us.

Our customers love our food because they know what they’re eating is REALLY GOOD and made with REAL & CLEAN INGREDIENTS. Everything we make is:

Organic & All Natural
Antibiotics & Hormones Free
rBGH Free (Growth Hormone)
Pesticides Free
GMOs Free (Genetic Modification)
Sustainable Environmentally Friendly
Healthful & Nutritious
Herbicide Free
Preservatives Free
Gluten-Free
Peanut-Free
Humanely & Pasture Raised Livestock
Supports Our Local Farmers & Their Families

We take pride in the fact that every animal product we use is obtained in a natural & humane way. This ultimately results in our customers enjoying food that is much more delectable, nutritious, and ecological than most other restaurants. This practice also helps to promote & support our farmer families who are ultimately the backbone behind our success.

What Separates Us From The Rest? We Just Care More!
Our newest Burger Village location here in Canada will be an eco-friendly establishment. It will also be constructed using reclaimed wood and biodegradable materials. Did we also mention that our beer selection will come from LOCAL BREWERIES? We also pride ourselves on having gluten-free options and being a peanut-free establishment that is inclusive to all of our customers. Burger Village is a healthier alternative to most similar restaurants because we care more about our customers and the quality of the food that we sell those customers.

Burger Village is rapidly growing and constantly looking to spread the word about organic food and all of the benefits that come along with it. We’re going to spread that message one customer and one burger at a time. Slowly but surely we are hoping to branch out to even more locations near you (including more in Canada after our new location officially opens). Are you as excited as we are? We sure hope so; and if you are excited, let us know on social media! You can follow us on Twitter @burgervillageny or on Facebook @burgervillageny.

Franchising Opportunities Are Still Available!
Burger Village has teamed with franchise industry expert, Gary Occhiogrosso, the founder of Franchise Growth Solutions, LLC, to expand the turnkey Burger Village fast casual QSR (quick service restaurant) business model from eleven (11) in 2019 to twenty-five (25) locations by 2022. Burger Village franchises are currently available in most territories nationwide.

Mr. Occhiogrosso has over 30 years’ experience in franchise development and sales and was integral to the success of nationally recognized brands including Ranch *1, Desert Moon Fresh Mexican Grille, and brands found under the multi-brand franchisor, TRUFOODS, LLC.

For information on owning your own Burger Village franchise, please contact Gary Occhiogrosso at 917.991.2465 or via email at [email protected] or log on to our franchising opportunities website at: http://www.burgervillagefranchise.com

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ABOUT BURGER VILLAGE
Burger Village is an all-natural, hormone-free burger concept that uses fresh and organic ingredients to create nutrition-rich meals for active consumers who want to eat well when dining out. From six locations in New York and five in California, Burger Village has grown into a recognized lifestyle brand that combines the growing trend toward clean and healthy dining with a socially responsible business model.

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 more information on the Burger Village fast-casual restaurant concept, please visit burgervillage.com.

For information on owning your own Burger Village franchise, please contact Gary Occhiogrosso at 917.991.2465 or via email at [email protected] or log on to our franchising opportunities website at: http://www.burgervillagefranchise.com

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Franchisors – Why You Should Use Mediation before Litigation

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Our guest contributor, James A. Meaney shares his insights on why franchisors should seek mediation when settling disputes with franchisees. saving costly legal fees not only benefits both parties but often times leads to a better outcome.

Why I Love Mediation and You Should Too!
By James A. Meaney – Franchise Attorney
The majority of franchise agreements that I come across or create these days have a mediation clause. For those of you who have no clue what I’m talking about, when a dispute arises, the disagreeing parties have only a few options: do nothing, file a lawsuit, go to arbitration, or sit down and try to work it out a/k/a MEDIATION.

Avoid spending a fortune
This is not the first time I have addressed this important topic and you can find earlier posts here. And, full disclosure: I serve as a mediator when selected by the parties or their counsel. But, here is why I love mediation and you should too! To help your clients or your company resolve disputes before spending a fortune.

Litigation and arbitration can burn up a very large sum of money. Remember it is a battle. The courtroom or the arbitration room is the battleground and counsel are the warriors. Let’s not get too carried away here but some of these disputes run from tens of thousands of dollars to over hundreds of thousands of dollars.

WORK TOGETHER
Mediation is a process that allows parties to work together, usually with the help of a trained and experienced mediator (often a lawyer but not universally), to settle a dispute before an action is filed and sometimes after. Mediators come in all types (ex. commercial law, domestic disputes) and styles (ex. objective neutrals, aggressive, evaluative). But the hallmark of an effective mediator is keeping the parties engaged, keeping them talking and negotiating. Also, an astute mediator may offer “creative” solutions that the parties did not consider.

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So counsel, if you have a long-standing client, wouldn’t you want to save them time and money? Wouldn’t it be the best advice you can provide under the circumstance? Besides, litigation or arbitration is always on the table but why not think of it as a last resort? Company officials or franchisees, not only could you save those precious funds, but you may find a solution that preserves the relationship. The earlier you seek resolution, the more latitude you have.

Of course some disputes cannot be resolved through mediation but, even when there is a small chance of resolution, it seems like a wise investment. And, as any commercial lawyer knows, whether a litigator or transactional lawyer, serving our clients’ needs is our top priority.

About The Author:
James A. Meaney is an Attorney on the Zaino Law Team. Zaino Law Group, LPA, in Dublin, Ohio, serves clients in Columbus, Dayton, Springfield and communities throughout Central Ohio. Our lawyers offer a unique blend of practical advice and a thorough understanding of legal issues. We recognize the importance of being part of a total planning team. Our attorneys consult and work closely with your accountant, your financial planner, your insurance professional and other attorneys in order to provide comprehensive legal counsel.

TOP 10 REASONS TO INVEST IN RIKO’S NOW!

Posted on by Contributing Writer

RIKO’S THIN CRUST PIZZA…Franchise opportunities abound in every business category, but entrepreneurs interested in the fast-casual space, and pizza, in particular, should have Riko’s Pizza on their radar as a brand poised for growth and success with ground floor opportunities for franchisees.

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1. Pizza is a $50.7 billion dollar*1 American passion
The pizza industry was designated as the fastest-growing segment of fast-casual restaurants in 2017.*2 A Riko’s franchisee buys into a growth business with high consumer demand and a track record of solid growth year-after-year. The opportunity to bring America’s favorite comfort food to a franchisee’s local market ranks high among Riko’s attributes as a new franchisor in this extremely, profitable business category.

2. A proven business concept
The Riko’s business model has been refined over a 7-year period prior to expanding into franchise offerings. Riko’s founders have continually tried and revised products, systems, and operations as they evolved into a turnkey operation. Those hard-earned systems are passed to franchisees as easy-to-follow, foolproof guidelines for consistent results. The simplicity and ease of operations hold opportunity for owners with or without previous restaurant business experience.

3. Flexibility for Franchisees
Franchisees can choose from a flexible footprint that suits urban or suburban venues. The flexible business model is designed to work and succeed in any space. Riko’s fast-casual operation features take-out, dine in and delivery. Riko’s full-service casual restaurant features a family dining experience with a full bar and table service. Owners can purchase single units or multi-unit options that are commensurate with their experience and finances.

4. Multiple revenue streams
Diverse revenue streams including lunch, dinner, and late-night business with takeout, delivery, and fast casual dine in and full-service restaurant and bar options, gift cards and rewards programs offer multiple growth opportunities within a franchise.

5. Quality, quality, quality
Attention to details has made quality a hallmark of Riko’s brand. High-quality ingredients — nothing artificial — proven recipes, simplified menu, first-rate equipment, comfortable, contemporary venue design, staff training ensure business growth and a consistent brand image. Entrepreneurs are buying into a brand associated with quality at every level.

6. Streamlined, state-of-the-art business operating model
Riko’s has set standards and developed systems that are easy to follow and easy to replicate over and over. Pizza franchisees can produce consistent, great results. Both franchisees and their future customers are assured of the quality food and service that launched Riko ’s original success in three Connecticut locations. Pizza franchisees are armed with the tools and knowledge to produce consistent, great results. Riko’s is a turn-key business model that works across all processes. The goal: keep things simple and do them the best they can be done.

7. Traditional family values that resonate with consumers
Riko’s core philosophy: respecting family, serving great simple food with a family-friendly ambiance, offers an appealing alternative in an ultra-fast food world. The Riko’s guest experience is warm and casual, fast without being harried. It’s a comforting experience that engenders customer loyalty and on-going, multi-generational business.

8. Comprehensive training & support
A good franchise offering includes support and training . That’s why Riko’s consulted and hired industry experts to develop a first-class training program. A five to six-week long training program — with modules at the company modern training center and owner’s location — takes franchise owners through all phases of the business; covering all the components necessary to effectively and efficiently manage a Riko’s Franchise business. A full suite of manuals provides on-going reference and instruction for owners.

9. Owners with passion
As a franchisor with a passion for growth and quality, Riko’s future is guided by passionate, involved owners with a hands-on approach to day-to-day business as well as an eye on long-term growth strategies. The active 360º business outlook ensures Riko’s is prepared to adapt, adjust, and seize new opportunities as they arise. The formula is set, but it’s constantly fine-tuned for success.

10. Community-centric focus
The success of the Riko’s original locations is grounded in community involvement. Riko’s mission in all franchise venues is to be part of local family life. Franchisees are trained to be local in their location and engage in sponsoring local youth sports teams, supporting school events, donating pizza to community events and more as a means to building relationships and thanking customers for their loyalty.

For more information please visit: www.rikosfranchise.com