TESTIMONIAL

On Friday, February 25th from 7:30am - 10:00am we will be hosting a franchise breakfast at Maggiano's Willow Bend in Plano (Dallas North Tollway & Park Blvd.)

Breakfast attendees will learn about 2011 trends in franchising, how to find the right fit in business ownership, franchise research and selection strategies, financing options and setting up corporate structures and tax entities.

Attendees will discover new and unique franchise opportunities, have the opportunity to talk individually with each franchise representative and meet with a franchise attorney.

No cost to attend.  Registration is required.

For details and to register - visit www.FranchiseSeminarInfo.com

I came across an interesting post by Tim Berry on the Small Business Trends Website about email etiquette.  We are so used to texting and emailing - sometimes we forget the basics of communication etiquette!  Click here to read this very interesting post!

10 Old New Rules for Business Emails

The franchise industry has been hit hard by the credit crunch and serious lack of traditional funding for small businesses and in particular franchise startups.

The downsized corporate executives are finding fewer job opportunities and practically none in their area of expertise and / or their former level of pay.  Many are now turning to business / franchise ownership to close the gap between where they are now and retirement.  Often retirees are turning to franchise ownership because their net worth has been dramatically affected by the economy.

Of the thousands of franchises in today's market, several are poised for great growth in 2011 and beyond.  Business coaching franchises, such as Action International, are greatly needed to assist business owners with better management, growth solutions and customer service innovations.  Stress relievers (now more than ever) such as Massage Envy and others are experiencing record growth.  Children education franchises are producing steady growth and "niche" franchises that offer a different or unusual service such as Senior Magazine and Cybertary provide a great opportunity at a reasonable total investment for the right candidate.

Franchise opportunities are numerous and the turnkey investments are all over the board.  Just remember the cost of the franchise has no correlation to the money it can earn!

Here are the final four changes in the franchise industry in 2010:

7.  Non-Traditional Locations - the newest expansion strategy
Multi-unit franchisees are exploring the viability of sites such as airports, hotels, colleges, senior centers, highway rest stops, hospitals, military bases, and more.  Costs are higher, staffing difficult, sometimes there are security issues, and other challenges, but you have a captive audience and can operate in a smaller space.

8.  Previously Owned Equipment
Previously owned equipment saves costs and boosts profits, especially in the restaurant sector.  Multi-unit owners are saving money.

9.  Transfers or Franchise Re-sales
Transfers or Franchise Re-sales will become more the norm than new franchise sales in the next couple years.  Many franchised business owners are looking to retirement and will be selling their businesses.

10.  The Good, The Bad, and The Ugly
The Good:  Tax incentives can pay big returns.  Several retroactive tax credit programs cover the open tax year and the three prior years.  Both franchisors and franchisees stand to gain.  Anyone employing people can benefit from these credits, whether for the corporate headquarters, company owned locations, or franchisees nationwide.

The Bad:  Closings, bankruptcies, non-lending market.  The tight credit market wreaks havoc with business closings, company bankruptcies and the unavailability of capital...money is tight and the requirements to get any kind of financing are unbelievably difficult and stringent.

The Ugly:  New health care law affects almost all taxpayers and employers.  Beginning after 2013, employers wtih at least 50 full-time employees must offer certain minimum health coverage to its employees or pay a penalty if certain employees are required to purchase health insurance through an insurance exchange.  We won't even list the tax law changes.

Here are two more important changes during 2010 in the franchise industry:

Real Estate - Conversions
Franchisees are saving money by tackling conversion projects from restaurants to beauty salons.  Many of these now empty spaces are already partially ready for new tenants.  Typically, the electrical and plumbing is in place and often with much less cash outlay required for remodeling, the space becomes a new business at much less than the original build-out costs for a new space.

What Potential Franchisees Really Want To Know When Exploring A Franchise Opportunity

• Easy to navigate Franchise website
• Most important factor is satisfaction by current franchisees
• Actual Pro Formas of existing Franchisees
• How long does it take to become profitable?
• Sales numbers by Region, not national numbers
• Most appealing incentive would be reduced royalties for first year

Taking a look at 2010 - here are two more of the significant changes in how we do business in the franchise industry.

Lunch Catering
Sandwich chains are finding catering office lunches is an efficient way to bring up their bottom lines.

NASCAR Sponsorships as a marketing tool
Many franchisors and businesses are spending a good amount of their marketing dollars in NASCAR sponsorships.  Of course, sponsoring a car on the NASCAR circuit can be very expensive.  Today, auto racing is a second only to football as the most watched sport on TV.  Races are televised in 150 countries around the world each week - in approximately 20 languages.  Nearly half of NASCAR fans earn more than $50,000/year and 40% are female.  It's all about reaching the consumer with your message and getting the customer involved.  According to a recent IPSOS research firm study, NASCAR is the #1 sport in fan brand loyalty.  "Three out of four NASCAR fans will consciously choose products of NASCAR sponsors...even if the price is higher"*
*Jeff Cheatham - Director of Communications, Wave Energy Drink

As we begin the new year, I think its appropriate to look at some of the changes in the franchise world in 2010.  Over the next few days I will post 10 of the top changes.  Here's our first two:

1.  Social Media

In using this tool to reach your customers, there are several things to remember:

a.  Decide WHY you want a Facebook page
b.  There's value in connecting with customers and prospective customers online
c.  Give reason to "like" your page on a Welcome Tab
d.  Be sure to tell what you can do for them

2.  Attorneys and Flat Fee Rates for Franchisors

Some large attorney firms are now offering a flat fee rate or alternative billing arrangements for Franchisors.  Clients want to know "What do I get for my money?"  Current economic conditions have caused clients to be even more sensitive to costs.  Many clients have learned not to pay attorneys to research business, cultural or marketing information when expanding internationally for example.  This can be done less expensively through other sources.  For foreign expansion one definitely needs an attorney or attorneys to understand the tax law, competition law and labor laws in the country you are targeting for expansion.