brandEXPANSION Hot Press

Franchisors and Franchisees Need to Grow at the Right Pace

Joseph — Tue, 22 Jul 2008 15:48:37 +0000

Growth is very important in the franchise industry whether you are a franchisor or a franchisee. Both of them know that and hence, try their best to develop their business. But many times they misjudge the pace of growth. Maintaining a balanced pace is essential in any industry. If you grow slowly, whether as a franchisor or as a franchisee, you will miss out on a good scope of expansion. On the other hand, if the pace is too fast, then you can end up with a situation where your resources are inadequate to maintain the chain.

For someone offering franchise business for sale, a steady pace ensures a number of things. It will help him to attract franchisees, if numbers of open units regularly open. The people looking forward to buy a franchise will interpret it as a symbol of profitability of the concept. Moreover, you will get great discounts from suppliers and manufactures, if you have a large number of units open. But take only that many new franchisees that you can train and provide adequate support. If you take too many new franchisees and then fail to keep your part of the deal, then that pace will be a disaster rather than a blessing!

Similarly, franchisees will also want to expand their operations when they find success with one. Today, the thrust of the franchise world is towards multi-unit franchisees. So, when you are starting a franchise, you will be offered lowered franchise fee, if you take up additional units that you have to open within a certain time-period. It may look tempting, but go for it only when you have enough resources. Running a franchise business till it starts paying for itself needs a good amount of money. So, if you spend the money in opening a new unit when your first unit is facing economic crunch, then it’s not a real progress. Hence, keep such a pace, which is easy on your pocket and other resources.

AmeriCare Alliance Continues to Expand With Two New Franchises; Prime Markets Still Available

Joseph — Thu, 17 Jul 2008 02:23:01 +0000

AmeriCare Alliance, a national home-based caregiving company, announced the opening of its latest franchises located in Nashville, TN and Teaneck, NJ. AmeriCare provides caregiving services to families with a choice of licensed, pre-screened, personally selected caregivers who work with individuals to create a unique customized care plan, free of limitations or restrictions. With the additions, the five-year-old company has expanded to nearly a dozen states by concentrating its rapid growth on franchisees that understand the unique nature of caregiving while achieving a profitable business.
In welcoming the franchises, Debra Reis, president of AmeriCare, said “We’re committed to bringing in franchisees that appreciate the difference between caretaking and caregiving. Building a caregiving company involves more than just building a flexible, supportive work environment; it includes creating an unparalleled commitment to quality caregiving service. That’s what differentiates AmeriCare in an industry that’s experiencing explosive growth.”
The two franchisees are both located in states with significant aging populations. With more than 1.1 million people in Tennessee and more than 1.5 million in New Jersey are over the age of 65, there is an acute need for personalized caregiving services. The aging of one of the largest generations – the Baby Boomers – is expected to further increase that demand. Nationwide, more than 34 million Americans personally care for a family member in need and, with the population aging, the number of families in need of quality, flexible caregiving services is expected to rapidly rise. AmeriCare provides families the option to keep loved ones in the comfort of their home while providing quality caregiving to seniors, new parents and those recovering from surgery. Families can create customized care plans and choose from a selection of quality, licensed, pre-screened caregivers to create the best match to meet their needs.

AmeriCare is a master franchise company that provides top quality non-medical caregiving services to families in need. It provides families with a choice of licensed, pre-screened, personally selected caregivers who work with individuals to create a unique customized care plan, free of limitations or restrictions. Caregiving services are currently available in California, Florida, Georgia, Iowa, Maryland, New Jersey, North Carolina, South Carolina, Tennessee, Texas, and Virginia.

To learn more, contact AmeriCare.

Choose Potential Franchisees Cautiously

Joseph — Mon, 14 Jul 2008 14:20:24 +0000

When you are starting a franchise as a franchisor, your success will squarely depend on your choice of franchisees. If you don’t use caution in awarding your franchise business for sale offers, you will end up offering them to the unworthy candidates. Remember, a single franchisee can affect the whole franchise system, thus making people distrust your brand name, which has probably taken years to develop. Also, each failure will have to be reported in the FDD, so it will always cast a shadow of doubt in the mind of the people who wish to buy a franchise from you. So, in order to avoid that, here are some tips on how you can evaluate the strength of a franchisee:

• First of all, look at their experience. It’s not necessary that they have experience in your field of work (unless it is a very technical work), but they are required to have general business skills. You can pick a person who have the skills and expertise you require. For example, if you are a franchise from the employment sector, you can look for people who have previously worked in the HR field.
• Then look at the personalities of the people. Are they too much of independent spirits? Then they may not make good franchisees. A franchisee should be ready to learn the ways of the franchisor even if he/she has previous experience in the line. But that doesn’t mean that he or she should just follow the rules of the franchisor; he or she must possess the ability to adapt the business format to the local conditions effectively.
• Examine the financial capability of the candidates willing to start a franchise with you. Many franchise opportunities make it the main criterion, which many times backfires on them. So, you should always consider other qualities and then look into the financial condition of the candidates. While choosing candidates, also take a look at their credit score. A good credit score ensures that the candidates can raise money from lenders easily than candidates with low or bad credit score.

brandEXPANSION’s development team can assist in all phases of franchise enhancement, including setting factors for qualifying franchisees. Contact us to learn more.

Franchisors Must Excel at Dual-Purpose Marketing

Joseph — Tue, 08 Jul 2008 16:04:32 +0000

Marketing one’s ware is as old as our human society. Nowadays, it has taken up a new dimension of its own. Every business is looking for ways to market itself better in front of its customer. If you are in the franchising business, your need for marketing becomes twofold – first for the products/services you provide and second for your franchise business for sale offers. Both marketing is different and should be treated separately. For example, in an ad for the product/service, the intended people are your customers who are going to buy the product/service. So, the stress of the ads will be on how good your offerings are and why they are different than that of the others in the field. You should also highlight how the customers are going to get benefited out of these products or services.

On the other hand, while marketing your franchise business, the emphasis should be on the business model itself. For people who are looking forward to buy a franchise, the most important thing is how much money they can make from the business. Hence, the focus of your marketing campaign will be on the profitability of your business venture. You are required to show them how others are profiting and how wonderful the future of the business is! You have to highlight your support system and training too. Mentioning what your product does for the customer is not that important as mentioning how much your customers want your product. For a prospective franchisee, it’s more important to know how many people will ultimately use his product/service. There are various modes of advertising your business and your franchise business. But the marketing approach that works for one won’t necessarily work for the other.

For example, direct mailers are good for your business, but won’t attract people looking for buying a franchise. Similarly, trade shows will attract people interested in your franchise business for sale offers and not your customers. Your website can attract both of them; but make an altogether different section for the franchise business. As for print and TV ads, it will depend where you are placing your advertisements. A glossy family magazine can have ads for your product while a business magazine may have ads for your franchise. For marketing campaigns regarding your product, all your franchisees will contribute annually for them. But they will be unwilling to fund the marketing of your franchise business for sale offers. In conclusion, it can be said that the two marketing campaigns should complement each other. You cannot sell your franchise business, until you sell your product and as your franchise opens in a new part of the city, demand for your product grows automatically.

brandEXPANSION can help with all aspects of franchise enhancement. Our lead generation and sponsorship program will help you reach the right franchisees. Our content writing services can help hone your overall marketing message. And our development team can assist with all areas of expanding your brand. Contact brandEXPANSION to learn more.

Some Franchises Are Recession-Proof

Joseph — Thu, 26 Jun 2008 18:18:56 +0000

When the year 2008 started, everyone knew that it was going to be a tough year. Now when you pump $4 gasoline, the situation looks even grimmer than we had anticipated. Still, businesses are opening up and the best way to do that is by starting a franchise. Banks and other conservative lenders are wary of new start-ups by novice entrepreneurs; but when the same people come as franchisees, their doors readily open. This and various other reasons make franchise business a much coveted line of business. There are many franchise opportunities that can cost anything between $10,000 and over a million! But the trick is to choose categories that will do well even in today’s difficult times. Hence, here are some categories that perform well even in recession and so, are perfect choices to buy a franchise from.

Tax-related industries: No matter what the economic condition is, we have to pay taxes (sounds bad but that’s the truth). Hence, tax-related franchises have become popular options for entering the franchise industry. With the tax filing system becoming totally electronic, it’s becoming all the more difficult for common tax payers to file the tax return without mistakes. That is why the demand for services of franchise opportunities like Roni Deutch Tax Center, Tax Centers of America and Liberty Tax Services is increasing day by day. In tandem with it, franchisees looking for franchise business for sale offers from these companies are also increasing in number.

Hair Salon: People have to cut their hair and men have to go for a shave no matter how bad the market is. Hence, hair salon franchises are enjoying a great boost in the number of people starting a franchise with them. Besides being an industry that is totally recession-proof, many hair salons are very affordable to start with and allow passive ownership. People too patronize them because they get guaranteed quality services from franchised hair salons. So, inquire about the various franchise opportunities.

IT-related: Computers are a part and parcel of today’s life no matter what the economic situation is. But computers need to be regularly maintained and updated. Hence, franchise concepts from IT-related industries like 1 800 905 Geek or WSI are witnessing a great demand for their franchise business for sale offers in the market. One misconception people have about the industry is that they have to be geeks to own a computer technology franchise. But that is farthest from truth; you just need good leadership skills to maintain a team of dedicated IT professionals, if you want to buy a franchise from this category. .

Temporary hiring services: With companies tightening their expenditure, they are focusing more on hiring part-time workers than full-time employees. They are outsourcing even that to employment agencies in order to save time and money. People referred by these agencies are always screened and verified; hence security concerns are laid to rest when employees are hired from franchises like Snelling Staffing Services. So, if you are planning to buy a franchise, look into this category. Besides being recession proof, most of them are low cost franchises or small business franchises.

6 Ways to Maximize Business Profit

Joseph — Tue, 24 Jun 2008 01:56:07 +0000

Starting a franchise is not enough. You have to have a plan to keep your business running properly. Yes, your franchisor will be there to guide you, but you need to take initiative in this area, too. Here are 6 ways to increase your business profit:
1. Choose the right location: Before choosing a location, there are many things you should look into. Make sure the customers can come easily to your location and whether they can park their car if needed. Also, checking out the competition is necessary as is the proximity of an anchor store if you are a restaurant or retail location going into a shopping center.
2. Advertise effectively: Each business has its own way of doing this. Your franchisor will have an effective marketing and advertisement plan, but you are always free to advertise on your own. It can be as small as handing out flyers to sponsoring the local sports program. If your franchise opportunity is new in the place, it will help to increase the business, if you advertise locally in your area.
3. Don’t let seasonal slumps hit you: There are some businesses, which are highly seasonal such as putting up decorative Christmas lights or lawn care. If you are starting a franchise of such a concept, keep the off-periods in mind. You can either use that period in networking among your peers or planning for the coming season. Whatever you do, don’t forget to send regular customers seasonal greetings. That way, they will come back to you time and again whenever they will need your services.
4. Use a home office in the beginning if possible: There are many franchise opportunities that can be operated from home in the beginning. If you are running such a franchise, make use of it during the initial stages. The amount you save this way can be used in other departments. If you are planning to open an office and there is no strict guideline from your franchisor on how the interiors should look like, then you can use furniture from your home or second-hand office equipments. There are many stores that specialize in selling these kinds of equipments.
5. Listen to your customers: No matter which franchise business for sale you have bought, the customer is the king. So, taking regular feedbacks from them will help you to identify your sore points. If some changes are needed in what you are offering from the location, talk to your franchisor about it. If the change you are seeking is in tandem with the company policy, there is no reason for the franchisor to oppose you.
6. Network: Networking is vital, especially if you are in the service sectors. So, join the local chamber of commerce and other business organizations. You will not only get good leads, but advices from established players as well. A big part of networking will be attending the annual seminars and meetings of your franchisor. Never miss any of them, if you want to learn ways to increase your profit margin.

AlphaGraphics Helps Franchisees Gain Efficiencies During Tight Economic Times

Joseph — Thu, 19 Jun 2008 01:45:24 +0000

One can not turn on the news or open a newspaper without hearing gloom and doom in the economy. However, franchising continues to be a bright spot in the world of business. And some franchisors, like print industry leader AlphaGraphics, are poised to thrive.

In an interview with brandEXPANSION’s Hot Press, Art Coley, CFE, AlphaGraphics Senior Director of Franchise Development, tells why:

Why is now the right time to buy your franchise concept?
There has never been a better to join AlphaGraphics, the #1 marketing and visual communications brand worldwide. AlphaGraphics business centers average more than *$1,100,000 in annual revenues while the industry average is approximately $600,000, and a gross margin of over **70% while the competition struggles to keep their doors open.
* During calendar year 2007, 75 (or 34.4%) of the AlphaGraphics’ Business Centers that had been open and operating for at least 1 year achieved gross sales of $1,125,703 or higher.
**During calendar year 2007, 36 (or 50%) of AlphaGraphics’ Business Centers that reported gross margin results for the full year achieved a gross margin of 71.83% or higher. Please see our Franchise Disclosure Document for more details. YOUR FINANCIAL RESULTS MAY DIFFER

How has the economy affected your expansion plans in terms of new franchises opened this year?
Despite the tough economy, AlphaGraphics sales have grown slightly in the past few months. In addition, the issues with the economy often encourage people to take control of their own destinies by starting their own businesses. It’s also a great time for independent printers and mail/ship businesses to consider joining a franchise network, where they can benefit from the technologies, systems and support we provide.

How are you helping franchisees be more efficient in this economic climate?
New and innovative sales and business development systems are key to the continuing health of all businesses today, and AlphaGraphics continues to lead our industry by introducing state-of-the-art marketing strategies and tactics. In addition, our business centers offer cost-effective marketing communications solutions, and during times of economic downturn, small and medium-sized businesses are often committing more resources to marketing to help stimulate lead generation and sales.

In addition to business development, AlphaGraphics franchisees are provided with extensive operations training, all aimed at ensuring that their businesses run at maximum efficiency. Our franchisees are required to obtain ISO certification, which requires adherence to stringent quality requirements. The company is initiating training in lean manufacturing as well as Forest Stewardship Council certification, all aimed at increasing efficiency.

Have your franchisees seen a decline in their businesses?

Again, there has never been a better to join AlphaGraphics, the #1 marketing and visual communications brand worldwide. AlphaGraphics business centers average more than *$1,100,000 in annual revenues while the industry average is approximately $600,000, and a gross margin of over **70% while the competition struggles to keep their doors open.

* During calendar year 2007, 75 (or 34.4%) of the AlphaGraphics’ Business Centers that had been open and operating for at least 1 year achieved gross sales of $1,125,703 or higher.

**During calendar year 2007, 36 (or 50%) of AlphaGraphics’ Business Centers that reported gross margin results for the full year achieved a gross margin of 71.83% or higher. Please see our Franchise Disclosure Document for more details. YOUR FINANCIAL RESULTS MAY DIFFER

Money is a huge issue for most folks these days. What are you doing to help potential franchisees find financing?
We have lenders who have approved AlphaGraphics for SBA loans. We help our new franchisees get financed.

What are your big goals for the year?
Our goals here at AlphaGraphics are to continue driving revenues at each business center to record levels. Expand the system with 10% growth in new locations. And, to launch initiatives that continue to separate us from the competition.

Contact AlphaGraphics to learn more about this business venture.

RSVP Publications Still Has Key Franchise Markets Available

Joseph — Fri, 13 Jun 2008 16:03:36 +0000

No matter what the market condition is, there’s a certain section in our society that has disposable income in hand. We are not talking about the uber-rich, but those who fall between being wealthy and being middle-class. This section comprises of double-income-no-kid couples or small families having one or two children. They can also be empty-nesters and retired senior couples who have a tidy nest egg. This section of consumers is the best for any business, whether it is retail or home refurbishment. As customers, these upper-middle class families patronize and demand exclusive services and are willing to pay a little extra for that. And most of them check their mail boxes themselves to see what’s in there!

This is the section that RSVP Publications, a niche direct market franchise concept, has targeted and succeeded. The format of the direct mailers of RSVP is not something flimsy or a run-of-the-mill brochure that you get from ordinary direct mailers. They are glossy, full-colored postcards that are attractive to look at and full of tantalizing offers for the affluent home-owners. Businesses that want to be labeled as niche and exclusive advertise through RSVP Publications. The subscribers of the mailer (11 million and counting) are most likely to visit the stores or take the offers that come through RSVP Publications.

Hence, it’s no wonder that franchise offers from the company is highly sought. The fact that the franchise is affordable and has a great training and support system adds fuel to the fire.

So, if you are thinking of starting a franchise from this category, hurry up! Available markets are still there for suitable candidates, but there is no guarantee of them being available tomorrow! Some of the areas available are located in major US cities, well known for their affluent Zip Codes. Hence, if you want to be in a franchise business where you don’t have to buy raw materials or stock any product, consider RSVP Publications.

Contact RSVP to learn more.

3 Keys to Franchise Success

Joseph — Fri, 13 Jun 2008 15:52:10 +0000

One of the easiest and safest ways to succeed as a business owner is to buy a franchise. When you join a franchise system, many things come automatically; for instance, the brand-name of the franchisor and the training on how to run the business. Still, certain mistakes can lead to failure. So, here are some keys to find success as a franchisee:

1. Know the market: Knowing the present market trends is very important in finding success as a franchisee. This is such a business field where you should not always go for the current market position of the business. Most franchise agreements are for 10 years, so you must choose franchise opportunities that belong to categories that have promising future. It’s always better to go for the products/services that will be needed in every kind of market. For example, children’s education is a matter of great concern for the parents of today and will be so in future as well. Hence, starting a franchise of Huntington Learning Center can be a great idea.

2. Know the franchisor: The franchise business is nothing, if the franchisor is not good enough. So, you must do all kinds of background research of the franchisor. Going for established brands is always good, if you can afford the price. Opting for an emerging franchise business for sale is also good, provided you have done sufficient research on the category and gone through the FDD of the franchisor thoroughly. Also, check out the training and support system of the franchisor. If they are at par with those from the best franchises, then backing an emerging franchise system ensures better scope of success; because then you can start a second or third unit easily and the market won’t be saturated (a problem that’s very common among people starting a franchise of an established brand).

3. Know yourself: Knowing yourself is very important in finding success in any field and more so in franchising. You have to know your strengths and weaknesses. Also, keep in mind that not all people can become franchisees. A franchisee is often restricted by what’s there in the franchise agreement. So, if you are of independent nature, then franchising can soon become too stifling for you. Also, if you are aware of your strengths, it will help you to choose the right franchise category. For example, if you have strong leadership qualities, then you can select any service sector franchise like maid services and cleaning. But, if you like working alone, then you can go for franchise opportunities like WIN Home Inspection that deals with inspecting homes for real estate buyers and sellers.

Now Is Actually a Good Time to Invest in a Top Franchise

Joseph — Wed, 11 Jun 2008 16:10:51 +0000

Franchising has always been the safety net that ordinary Americans fell back on to realize their American dream. But today, it has become the career choice of even fresh graduates. There are many reasons to start a franchise now:

• The recession that started after 9/11 is still looming. Hence, corporate America is cutting jobs to reduce costs. So, people have started looking at alternatives instead of getting fired or sticking to an unsatisfactory job. Franchising is the most preferred avenue for self-employment for most of them.

• Franchising has many positive aspects. In franchising, you don’t have to risk your hard-earned money (and that too in such a volatile market) in developing a business model. Franchising can be started by anyone who is coachable and has basic marketing, administrative, sales and other business skills. All these things make most of us candidates for starting a franchise.

• Money is a big factor while starting a business. Due to the economic condition, lending institutes are becoming very conservative when it comes to lending money to novices. Their inexperience and poorly-written business plan fail to impress the lenders and as a result, a person’s dream of working for oneself, remains a dream. On the other hand, when you buy a franchise, your franchisor either provides you with third-party loans or is registered as small business franchise. Some franchisors also help by drafting a killer business plan. Whatever it is, when lenders see an experienced franchisor behind a novice franchisee, they become more willing to grant the loan.

• There are so many franchise opportunities out there that finding one that suits your interests is not a difficult job.

• The demand for certain types of service franchise concepts is at an all-time high. Since offices are in a cost-cutting mode, they are outsourcing many of their jobs. Hence, service franchises that offer employment, telecom consultancy or accounting and payroll jobs are witnessing a huge boost in their franchise business for sale offers. So, if you have been working in these lines for quite some time, then now is the time to cash in that experience and skill to start a business of your own.

• Another booming sector is the senior care industry. With 70 million baby boomers set to retire from 2010, they will need full-time non-medical care in the coming years. So, if you have leadership qualities or managed a team of workers as a part of your job, let that work for your benefit now. Moreover, most of these franchise concepts are low cost franchises while many are also home based franchises.