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Tag: Franchise 500

  • Crafting a Brand Story: The Secret Ingredient That Will Set You Apart From Competitors | Entrepreneur

    Crafting a Brand Story: The Secret Ingredient That Will Set You Apart From Competitors | Entrepreneur

    The following excerpt is from franchise expert Mark Siebert’s book The Multiplier Model. Buy it now.

    Take a moment to think about this question: What is it about your brand that would make a customer want to do business with you instead of your competitors?

    A big part of success is that the customer picks you because of your story.

    If you’re looking to duplicate your business, you need to have a compelling story to tell, you need to tell it in a memorable way and you must embrace it as the crux of your success. Here’s how to get started.

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    Let your slogan tell your story

    One way successful brands tell their story is through their brand slogan. Let’s look at one of our nation’s most iconic brands—Dunkin’ Donuts—which has recently been rebranded to Dunkin’.

    The “America Runs on Dunkin”” slogan, adopted in 2006, speaks to fast-moving consumers. The story this conjures up is a mixture of the following:

    • Compelling: We’re here for busy people.
    • Logical: You need coffee and fuel—and we’ll get it to you quickly.
    • Emotional: We’re Americans, and we’re in this together.

    Note that the slogan does not even mention coffee or doughnuts, and I suspect that’s because it would change the underlying brand story too much. As Dunkin’ has evolved into a beverage-first, on-the-go brand, their core story is the same—fast, accessible and reasonably priced bakery items and beverages for busy people.

    In their own words, it’s “part of our guests’ everyday routine.” Their story and how they communicate it is why they are consistently a leader in the quick-service restaurant space.

    Your slogan should be emotionally moving

    While this is not a how-to article about writing your company slogan or tagline, consider the emotions of some of the best-known slogans. The Walmart story has consistently revolved around selling more for less—and its slogans have reflected this, from “Always Low Prices, Always” to the current “Save Money. Live Better.”

    Consider some of the examples below and what they tell you about the brand’s unique story, its emotional appeal to customers and its implied call to action:

    • Papa John’s: “Better Ingredients, Better Pizza” invokes a feeling of a high-quality eating experience.
    • Planet Fitness: “Judgement Free Zone” relieves the anxiety of working out in a gym, especially if you are new to a fitness journey.
    • Jimmy John’s: “Freaky Fast” assures its consumers of rapid service.
    • Southwest Airlines: “You’re Now Free to Move About the Country” and, more recently, “Low Fares, Nothing to Hide” gives its customers a sense of trust when traveling.
    • Big Blue Swim School: “Life’s Big Moments Start Here” invokes happiness and pride when learning how to swim and taking that with you for the rest of your life.

    Related: How to Finance Your Franchise

    Position your franchise as the best option

    The goal when telling your story is to convey that consumers should choose you because in some way you are the best option. Taco Bell has succeeded at that with its “Think Outside the Bun” campaign.

    I expect many of you have never heard of McDonald’s early competitors: Burger Chef, Dee’s Drive-In, Sandy’s, Red Barn and Druther’s (which began its life as Burger Queen). How about Geri’s Hamburgers or Wetson’s?

    But I’ll bet you all know about Burger King and Wendy’s. Why is it that Burger King and Wendy’s have thrived while the others didn’t?

    One reason is that Burger King positioned itself as the “Have It Your Way” burger. When introduced in the early 1970s, this message was compelling (“Fast-food ordering doesn’t have to be so strict.”), logical (“Why would I buy something that wasn’t exactly what I wanted?”) and emotional (“You deserve this.”).

    Instead of following a copycat strategy (which almost never works in business expansion), Burger King’s message told consumers they had a choice. As a practical matter, McDonald’s could not compete with this at the time because it would have required a reworking of its kitchen operations.

    Wendy’s, meanwhile, survived by appealing to an older audience through its Clara Peller ads, which told its story through the voice of an octogenarian with an emphasis on good old-fashioned hamburgers.

    Whatever route you take, own it

    Using your slogan is a quick and straightforward option to market your franchise and tell your story about why you are the right choice in a world of competition. As seen with the plethora of success stories of other franchises, it’s perfectly attainable to be concise in your words while leaving a prospective consumer empowered, relieved, thankful, trustful, eager or any other emotional verb.

    If your marketing strategy is strong, consumers will automatically think of you whenever they conjure up that specific feeling—and hopefully, sign up, purchase or eat with your franchise.

    Get started with The Multiplier Model

    Going from small business to successful startup to scalable growth takes more than good luck. It takes a system. Over the last 34 years, franchising consultant and growth expert Mark Siebert has been sought out by more than 70,000 executives looking to expand their companies. Out of those 70,000, only 5,000 had the right systems in place to go from successful to scalable. In The Multiplier Model, Siebert discusses the factors that determine if an entrepreneur is ready to scale their venture — and the best ways to get started. Read more.

    Related: Find Out Which Brands Have Ranked on the Franchise 500 for Longest, Earning a Spot In our New ‘Hall of Fame’

    Entrepreneur Staff

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  • How to Measure Success With Comparative Testing | Entrepreneur

    How to Measure Success With Comparative Testing | Entrepreneur

    The following excerpt is from franchise expert Mark Siebert’s book The Multiplier Model. Buy it now.

    When it comes to franchise success, continually striving for improvement is key. In the marketing world, we call these A/B tests.

    In an A/B test, the goal is to isolate two variables to determine which one works better. This is imperative for decision-making and business growth.

    Here’s a quick example

    Let’s assume you’re running a pay-per-click (PPC) ad for a home-service business, and you want to know whether an ad that touts same-day service is more effective than one offering a money-back guarantee.

    By running both ads and measuring the results against similar audiences, you could see which message resonates better.

    Related: Find Out Which Brands Have Ranked on the Franchise 500 for Longest, Earning a Spot In our New ‘Hall of Fame’

    Now take that example and tweak it

    Then you could try two more ads with two completely different messages and measure their results against the winner of the first test or go head-to-head in a real-time matchup.

    Doing this can significantly improve how well your message resonates with your customers.

    Do this again and again, and ultimately you will have statistical evidence as to which message (or messages) work best to attract your targeted buyer.

    Refine your A/B tests even more

    There are all kinds of variants and refinements you can try. Perhaps B won your first A/B test, and now you need to decide between B and C (this process of incrementally improving your messaging can — and should — go on virtually forever).

    If you’re testing PPC ads, you could send the respondents to different landing pages, creating two sets of A/B tests with your messaging — one that measures the drawing power of the initial message and one that measures the power of the message on the landing page. Now your testing process begins to look like a decision tree.

    Related: These Are the Top 200 Global Franchise Brands in 2023

    Test across different media types

    What we are talking about here is creating a system that you have tested, measured and refined until each element of the system works.

    Now imagine that the system you’ve built for your advertising message can be extended beyond just the message to the media that carries it. Each form of media can produce different leads for you, at a different cost per lead. And each of those leads will have a different value to you in terms of cost per sale. So you need to measure these variables during your testing process as well.

    If you can do that across the entire marketing spectrum, you can refine your media mix and your advertising budget along with your message. This will allow you to optimize your marketing and create a true system for the entire marketing process.

    Keep in mind, though, that when you measure this system against your financial performance, you should only keep it if it generates revenue for you at a rate that allows you to provide your service (or your product) profitably.

    If your marketing costs are so high that it becomes impossible for you to turn a profit, you need to go back to the drawing board and find something (different marketing, hopefully, but perhaps different products or services) that will allow you to make money.

    Go beyond the marketing example

    The example above is how successful marketing systems are created.

    But these systems are not just limited to marketing: In the best businesses, they are incorporated in almost every repetitive function of business operations — from site selection and build-out to hiring and training to purchasing and pricing to production and delivery.

    Related: The 9 Provisions Every Franchise Agreement Needs to Have — and What They Mean

    Get started with The Multiplier Model

    Going from small business to successful startup to scalable growth takes more than just good luck. It takes a system. Over the last 34 years, franchising consultant and growth expert Mark Siebert has been sought out by more than 70,000 executives looking to expand their companies. Out of those 70,000, only 5,000 had the right systems in place to go from successful to scalable. In The Multiplier Model, Siebert discusses the factors that determine if an entrepreneur is ready to scale their venture — and the best ways to get started. Read more.

    Entrepreneur Staff

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  • How to Determine Your KPIs and Achieve Profitability | Entrepreneur

    How to Determine Your KPIs and Achieve Profitability | Entrepreneur

    The following excerpt is from franchise expert Mark Siebert’s book The Multiplier Model. Buy it now.

    One of the most important things you can do to help ensure the success of your business is to determine your key performance indicators (KPIs).

    KPIs are the inputs into your business system. Each KPI has a target range that, if achieved and combined successfully with other KPIs, will allow you to manufacture the output of your business profitability.

    Read on for what you should know about KPIs and how you can apply these practices to your own business.

    Related: Busting Franchising Myths and Choosing the Right Opportunity

    KPIs can be industry-specific

    KPIs vary substantially depending on the industry. For restaurants, a few of the many important KPI measurements include the sales-to-investment ratio, food costs, labor costs, average ticket, table turns and occupancy costs.

    If you’re in the hotel business, some important KPIs include overall occupancy rate and average revenue per occupied room.

    If you’re a manufacturer, you’ll certainly want to look at things like the product return rate and net promoter score.

    If you’re in the business of selling advertising, you may want to focus on sustaining your customer base — so KPIs like customer retention rate, customer churn and repeat purchase ratio might make your list.

    And if you are in a membership-based, fee-for-service business, like a massage or fitness operation, you may want to monitor metrics like revenue growth per customer and time between purchases.

    KPI targets can differ within the same industry

    KPI targets can be different within the same industry, too. For example, in the restaurant industry, a steakhouse might aim for food costs in the range of 35%, while for a pizza restaurant, that number might be closer to 30%. But shoot for those numbers at a pretzel shop, where 20% would be considered high, and you could have a disaster on your hands.

    Different types of businesses in the same broad category (restaurants, in this example) can have very different target KPIs because of other changes in the business model.

    A pretzel shop generally has significantly lower sales than a typical steakhouse. They also may rely on impulse purchases in a high-traffic location, so they don’t need to spend the same amount on advertising as a steakhouse would. In addition, because its footprint is much smaller, a pretzel shop can pay less in rent (although it’s often higher when calculated on a per-square-foot basis).

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    Be aware of KPI repercussions

    When determining your KPIs and target ranges, you should also consider that any changes you make may have implications in other areas of your business.

    Going back to our restaurant example, the logical assumption is that we want to keep our food costs down. After all, each percentage point saved on food costs, all else being equal, will translate to a significant increase in profitability. But everything is not always equal.

    If you can reduce your food costs by eliminating waste, improving portion and inventory controls or establishing better systems for pricing or purchasing, then you could improve your Money Machine.

    On the other hand, if you had to sacrifice quality, raise prices unreasonably high or make your portions so small that your customers left dissatisfied, your reduced food costs KPI could have a severe negative impact on your overall profitability.

    In other words, anyone can decrease food costs down to 2% if they charge $50 for a burger. But how many will they sell?

    Likewise, you could reduce your labor costs in your restaurant by simply hiring fewer people. But if that results in poor service and unhappy customers, you may have missed the point of the exercise. So as you start identifying the KPIs and target numbers that will ultimately drive your business, bear in mind that changes to your KPIs may have unintended consequences.

    Categorize your KPIs

    Generally speaking, the KPIs for a small business can be grouped into several major categories: marketing metrics, sales metrics, production and financial metrics, and client satisfaction metrics. And these KPIs generally occur in that approximate order.

    Marketing drives sales. Sales drive production. Production drives client satisfaction. And client satisfaction (and the word-of-mouth it can deliver) drives repeat and new business. Effectively categorizing your KPIs, determining your target ranges and developing the right strategies to hit them will put you in a good position to achieve and maintain profitability.

    Related: Is Franchising Right For You? Ask Yourself These 9 Questions to Find Out.

    Get started with The Multiplier Model

    Going from small business to successful startup to scalable growth takes more than just good luck. It takes a system. Over the last 34 years, franchising consultant and growth expert Mark Siebert has been sought out by more than 70,000 executives looking to expand their companies. Out of those 70,000, only 5,000 had the right systems in place to go from successful to scalable. In The Multiplier Model, Siebert discusses the factors that determine if an entrepreneur is ready to scale their venture — and the best ways to get started. Read more.

    Entrepreneur Staff

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  • 4 Things to Know About Private Equity Investors in Franchises | Entrepreneur

    4 Things to Know About Private Equity Investors in Franchises | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Do you hope to someday bring on a private equity (PE) partner to accelerate your franchise business? If you’re a franchisor, this simple list should be at the root of every decision you make going forward as you build your enterprise, from now until you’re ready to sell or bring on a PE partner:

    1. Private equity buyers want proof of franchise model quality, specifically strong unit-level economics and positive franchisee validation

    This means to get top dollar, it’s not enough to have a strong franchise value proposition for franchisees. You must track system metrics and show positive trends over time. Collect franchisee profit and loss statements from the beginning. Standardized point-of-sales systems can help collect unit-level performance information that buyers will want to see. Franchisee satisfaction surveys should be implemented. If franchisee feedback isn’t strong, move quickly to address issues and communication gaps.

    Related: Thinking of Selling Your Franchise to a Private Equity Firm? Here Are 9 Ways to Build a Valuable Reputation

    2. There must be additional evidence of brand momentum through new unit openings, same-store sales growth, significant open whitespace and other growth opportunities yet available

    The operating model must be replicable, and there must be proof. For example, can you demonstrate that you open 100% of the units you sell? Are franchisees ramping to profitability within 18 months or fewer? That is much more valuable and important than selling a bunch of multi-unit licenses that never open. Do franchisees experience a solid cash-on-cash return? Buyers especially get excited when they see existing franchisees returning to buy new expansion units.

    Private equity sponsors want to see strong growth potential within their own planned hold period. But they also want a terrific growth story for the next sponsor as well to command a good exit price. Franchise businesses can trade between private equity (PE) sponsors multiple times. Technically, this is called a “secondary buyout” (whether it’s the second PE-to-PE transaction or the tenth). I prefer to think of it as the PE Profit Ladder. At each step, new sponsors need to see a compelling long-term growth story for the business to command premium enterprise value.

    3. If No. 1 and No. 2 are missing or weak and if the evidence doesn’t match the hype, PE quickly moves on

    While you may be selling franchise licenses, that in and of itself doesn’t make your business attractive. It validates that you’re good at selling franchises, not that PE will find your company attractive. You may have even received (or paid for) flattering press coverage. Are you starting to believe your own press? Buyers may be calling you with effusive, “We’d love to talk about your business,” messages. After basking in the warmth of some positive market attention and getting these phone calls, the transition to engaging seriously with a seasoned PE buyer who assesses your business with a swift, clinical eye can feel like suddenly walking into a freezer. Where did the love go?

    Related: Is This the Right Time to Sell your Franchise to a Private Equity Firm?

    4. This is where your franchisee-franchisor relationship karma will finally catch up to you

    Your franchisees have tremendous power over your sale outcome. If that idea strikes fear into your heart, you know where your work begins. Call it “turnabout is fair play,” “revenge of the franchisees” or whatever you like.

    If you’re a franchisor, your ability to sell your company to private equity at a high price with great terms depends on the quality of your relationship with your franchisees, strong return on investment for franchisees and the quality of operators you attract to your system. I’ve seen this collapse of the hype-machine dawn on sellers far too late. PE’s brutally cool, fact-based assessment and the importance PE attaches to franchisee satisfaction, profitability and positive references about their franchise experiences can be jarring to some sellers. If you’re used to acting independently as a founder, it can feel like turning in your high school math test and getting it back with a bunch of red pen mark-ups. Whatever attention you are, or are not, currently investing to ensure strong franchisee profitability, the market will one day hold you accountable.

    Most PE sponsors want growth stories, not turnaround projects ripe with risk and headaches. Turnaround projects in franchising carry significant extra risks and uncertainties because of franchising’s distributed ownership model. For many private equity investors, franchise turnarounds just aren’t worth the effort within the available time or will only be considered at a steeply discounted price by specialist firms.

    If you or your banker diligently advertise that your business is for sale and months pass with no deal, this well-meaning effort effectively spreads the word to the buyer community that you tried to sell the business but have no takers. This creates a negative impression that you will have to walk back if you decide to wait and go to market again later. It’s like that house that didn’t sell and is finally taken off the market. Two years later, prospective buyers watching the neighborhood see it listed again and remember that it didn’t sell the first time around. They wonder, “What’s wrong with that house? What’s changed since the last time it was on the market?” If you land here, you need to hear the market feedback and make meaningful changes to improve the value proposition for franchisees.

    You are much better off fixing your franchise model first and only going to market when you have something truly valuable to sell. Franchising is a brilliant wealth creation model that performs optimally when franchisees can create a rock-solid return on their investment. If you remain focused on promoting and growing unit-level profitability, you will build a truly valuable system that will stand up to PE buyer scrutiny.

    Related: A Beginner’s Guide to Private Equity

    Alicia Miller

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  • Why Laid-Off Tech Employees Make the Best Franchise Candidates | Entrepreneur

    Why Laid-Off Tech Employees Make the Best Franchise Candidates | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Layoffs are making headlines in 2023, with the tech industry feeling the biggest effects of this national trend. According to TechCrunch, layoffs in this sector, year to date, exceed the total number of tech layoffs in 2022. Other industries are streamlining employee payrolls as they look to a future of job automation through artificial intelligence. Even though getting laid off is a tough situation, there can be a bright side — a chance to embark on a meaningful path to entrepreneurship.

    This endeavor may seem daunting at first, especially if you don’t have a unique business idea, but that makes franchise ownership a particularly attractive option. With a proven, successful business model, a built-in support system and brand recognition, a franchise offers a much easier way to jumpstart an investor’s business ownership dreams.

    In order to attract this pool of potential franchisees, business concepts should highlight how their franchise, in particular, is a financially viable option and how it will continue to benefit the professional development of a prospective franchise owner. Former tech executives and aspiring entrepreneurs, in turn, should widen their lens when looking for their next career opportunity.

    Related: Aspiring Entrepreneur? Consider Perfecting Something That’s Already Built

    Franchising is a good fit for an opportunity-seeking entrepreneur

    The unique advantage franchising offers is an established business model with a blueprint that has been refined over many business units and many years of successful operation. With that comes a brand identity that is already recognizable to consumers. Building a brand-loyal customer base is one of the most difficult aspects of starting a business from scratch. With an established franchising concept, you get brand interest, excitement and trust already built in.

    The franchising business model comes with a corporate team equipped to help franchisees with support services relating to marketing, operations and business analysis, training and more. At Kiddie Academy Educational Child Care, we help our franchisees with all these aspects plus financing, real estate and construction, just to name a few. High-quality tools and technology systems afford franchisees access without the hassle of setting it all up on the front end. Finding a franchise organization that helps facilitate setup through pre-existing relationships with entities like lenders or real estate developers is key to success.

    Because of all the resources available to franchisees, they often find they have more freedom as business owners than they did in the 9-to-5 (or 24/7) job they just left. Different franchise concepts have different time requirements. Potential franchisees can choose what best suits them.

    Flexibility is always an added benefit in the workplace, and transitioning to franchise ownership offers many new options. Franchisees can build their business closer to home or start a new leaf in a place with a growing market. When you own your own business, you’re in control of your destiny — you don’t have to worry about the insecurity of working for someone else.

    Newly laid-off professionals make the best franchise candidates

    A laid-off tech professional can make a very strong franchise candidate. Franchisors who show potential franchisees how their skills can be transferred into a new career path can help grow their organization while providing an opportunity for qualified candidates who are looking to excel. It’s a mutually beneficial relationship.

    Regardless of their background, successful business professionals who have had the unfortunate experience of being laid off usually have a strong work ethic and a desire for continuous learning and development, making them a perfect fit for a franchise organization. Job-seeking entrepreneurs should consider the growth opportunities — both personal and professional — that come with opening a franchise location.

    Most franchise organizations are “no-prior-experience-necessary” opportunities because of the infrastructure and support systems in place to help their owners excel. Even if you don’t have a background in a field like educational child care, for example, with the right amount of passion and franchisor support, you can still become a successful business owner. Franchise ownership opens the door to experiencing an entirely new industry using the business expertise a potential franchisee has already developed in a previous career.

    Related: 6 Tips to Consider When Searching for a Franchise for the First Time

    Franchise ownership allows professionals to live a life they love. Entrepreneurs can seek out opportunities in unique markets where they’ve always wanted to live and consider franchising as a means to relocate. There are also significant work-life balance benefits with franchising. Maybe franchise ownership for a particular organization means only working in the mornings or afternoons — or maybe not even showing up to an office at all. These benefits differentiate the franchising experience in a positive way.

    Business professionals experiencing a layoff and franchisors can both benefit from taking a close look at how they can work together. Franchising isn’t for everyone, just like business ownership isn’t for everyone, but for those who are looking for career advancement, it’s a solid model to consider.

    Jeff Brazier

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  • How Making This Critical Hire Will Improve Your Franchise | Entrepreneur

    How Making This Critical Hire Will Improve Your Franchise | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Many franchise founders (and even multi-unit franchisees) hope to one day sell their businesses to private equity. PE’s significant interest in the franchise sector is undeniable. Sellers have benefitted from the activity of these well-capitalized buyers through added deal competition and increasing prices. Even in our current market where valuations have cooled from the heady prices of late 2021 and early 2022, multiples for great franchise businesses are still strong and often exceed middle-market averages for similar-sized companies.

    No matter what your long-term objectives are, it is important to maintain a sale-ready stance as much as possible. This doesn’t just mean keeping your documentation up to date and refreshing an online data room with updated financials and franchise documentation — that’s a given. More important is having the right finance leader in place to be a strategic thought partner both to you as the founder and to your franchisees.

    This makes your Chief Financial Officer one of the most important roles in your business. It’s also a role that, especially for emerging brands, can be one of the weakest in the organization. Bootstrapped companies may not be able to afford top financial management. When private equity later comes calling, immaturity in that role specifically decreases buyers’ willingness to pay because of all the downstream impacts a vacuum in that key position creates in how the business itself is managed.

    Today’s franchise marketplace is extremely competitive for new brands. It is more expensive than ever to launch and create enough visibility to recruit top franchisee candidates. Emerging brands end up stuck in an expensive competition that often leads them to make heavy investments in franchise marketing and recruiting, including high-cost external sales channels. Little may be left over for support infrastructure, including the finance department.

    It is difficult to recruit top finance talent as a small franchisor. Small franchisors may not even have the capacity to collect and meaningfully analyze franchisee P&Ls. Without this visibility, the franchisor can’t properly track or support system health. How will your operations team know what they should be focused on during franchisee coaching conversations? How can your team create and share reports with franchisees demonstrating key metrics and the impact on profitability?

    Related: 4 Key Functions of a Chief Financial Officer

    How a strong CFO can improve your franchise

    Key areas where a strong CFO can improve your business value and exit options include:

    • Strategic thought partner for the entire management team

    • Maintain focus on corporate and unit-level profitability and growth

    • Guide the creation of training materials to help franchisees improve their financial acumen and manage a more profitable business

    • Financial modeling and scenario planning that ensures resources are invested in the highest pay-back initiatives

    • Ensure data reliability and create a cadence for collecting and analyzing business financials

    • Drive supply chain improvements and better vendor pricing

    • Evaluate debt options to fund growth and delay taking on a private equity partner

    • Establish lending programs to support franchisee expansion

    • Team leadership; build financial acumen across the business

    • Support for operations team; track operational KPIs back to financial impact at both the franchisor- and franchisee-level

    • Work with the operations team to establish a common chart of accounts for franchisees and support mechanism for ongoing profitability coaching

    Sometimes emerging franchisors try to “save money” by under-hiring for this key position. Don’t make this mistake! I recognize that for smaller brands, this is an expensive hire. Find the very best talent you can afford, and consider the ultimate payback. One strategy is to hire a fractional CFO and complement that talent with in-house administrative support until the business is large enough to comfortably afford a full-time hire.

    If you are positioning your business for an eventual sale to private equity, the CFO role is ironically most at risk. PE firms typically either have financial resources in-house or outside executives they know and are comfortable with. In the case of a platform, financial planning and reporting functions may already be consolidated. Either way, while the CFO is a key enabling role to help create a sale-ready stance and drive higher enterprise value, ironically, it may be the first position to be replaced or eliminated post-acquisition. You may need to get creative with compensation, such as creating a bonus structure in the event of a successful transaction, in order to recruit the best talent.

    Related: 3 Signs It’s Time to Hire a CFO

    Key attributes in emerging franchise CFO hire

    • Previous senior finance leadership experience — minimum 5 years

    • Strong references, especially as a strategic thought partner for the founder, senior team and franchisees

    • Experience working with private equity, preferably as CFO or VP of Finance for a brand that was sold to private equity or owned by private equity

    • Experience working in a startup environment

    • Franchise or multi-unit experience is a plus

    • Accounting background preferred over finance background

    • Good financial modeling skills

    • Experience at one of the large accounting firms is a plus

    • Ability to build a strong, profit-focused team

    If your franchise system is primarily first-time business owners, make financial acumen at the operating level a priority for your finance lead in partnership with your operations lead. A strong CFO can assist operations to develop tools and coaching that help franchisees understand the major financial levers in their business and key activities that improve profitability.

    Don’t wait until you’re selling the business for prospective buyers to point out all the low-hanging fruit that you could have captured and monetized yourself by helping franchisees improve their businesses. Strong attention to unit-level profitability also signals to franchisees that their profitability is a priority for your management team. This should attract better franchisees in the first place and validate well.

    Related: The CFO Of The Future (No, They Are Not Just The “Finance Guy”)

    Alicia Miller

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  • Want Your Boss’s Job? Here’s How 8 Employees Became Franchisees. | Entrepreneur

    Want Your Boss’s Job? Here’s How 8 Employees Became Franchisees. | Entrepreneur

    Image Credit: Zohar Lazar

    At some point in their career, every worker has probably thought: I wish I were the boss.

    In franchising, people often achieve that dream. They might start as a cashier, manager, or in some role at the corporate office, and then rise up to buy a unit of a brand themselves.

    This is no accident. Franchises are always looking for qualified franchisee candidates who appreciate their brand and are dedicated to its success, and many of them encourage their best employees to pursue that path. It’s part of the DNA of franchising. Some brands even have apprenticeship or financing programs to help their team members achieve the dream of business ownership.

    So, what’s it like to go from employee to boss? And what’s required to make the leap? On the following pages, eight people share the biggest lesson they learned — and what enabled them to finally say what so many others want to say: “I’m the boss!”

    Related: 10 Tips to Go From Employee to Boss, From Franchisees Who Did It

    Lesson 1: Ask for more.

    Sam Cleavenger’s first job, at age 16, was with Jeremiah’s Italian Ice. He worked his way up from prep boy to general manager and then marketing manager for the brand. When he turned 24, he partnered with his dad and opened a store of his own. Today, he’s working on opening more stores and has 12 partners underneath him opening stores, too.

    “Something that separated me from my peers would be always asking what you can do to excel,” he says. “I would always ask my manager what I could do to have more responsibility. Before I became a general manager, I said I felt like I was doing great, and I wanted something more. I said I wanted to take on more leadership. I think it’s the simple fact of asking. A lot of people sit back and wait and think people are going to ask them. I think you have to vocalize that you want to grow.”

    Lesson 2: Be creative, within boundaries.

    “Everybody has their own creative style,” says Bonnie Alcid. But as she’s learned, creativity alone won’t drive success. It must be focused and harnessed.

    For example, she started her career in design and printing, but really started flourishing once she became the aquatics director for British Swim School. In that role, she says, she was able to think creatively, but toward a very focused goal — helping craft lesson plans for new franchise owners and their aquatics directors. Then she became the school’s first franchisee, and creativity took on a whole new meaning.

    She learned to hire people who can have fun, and then teach them how to be instructors within the school’s boundaries. “I can teach a child how to swim, and I can teach an adult how to deliver a swim lesson,” she says, “but it’s their personality that’s going to be able to come out and connect with kids and make them successful.”

    Related: Are You Ready to be the Boss of Your Own Restaurant Franchise?

    Lesson 3: Grow alongside everyone else.

    Tracy Welsh has grown a lot since the pandemic. But she’s also realized: If she’s the only one growing, she’s failing.

    Her journey began at Massage Heights, where she was the director of two locations. Both had to shut down at the beginning of the pandemic, and she worried about losing her job. Then, to her great surprise, her boss presented her with a different opportunity: Would Welsh want to buy the franchises where she worked? “I thought, My gosh, there’s no way that this could ever happen,” Welsh says. She was worried about financing, but after meeting with a bank, she realized she could do it.

    “It made me grow in a way that I never thought was possible,” she says. Then, as she built her team, she realized she was now in a position to help others grow too. “You can’t just grow yourself,” she says. “You have to have the mindset that you want to grow other people at the same time, growing employees, growing guests, growing members. Doing the same old thing and never changing it up is not the way to go as an entrepreneur. You have to grow and evolve.”

    Lesson 4: Make smart lease deals.

    Ivette Escobar was assistant to the founder of Sweet Paris Crêperie & Café in 2012, and ultimately became the brand’s chief development officer. When she and her husband opened their own location, she knew the lease terms were a key — because if she couldn’t control the environment her business was in, she couldn’t ensure its success.

    “We will not take a location that will not let us do our facade,” she says. “If they just want us to put up a sign, we say no.” If you’re looking for a space yourself, she has advice: Ask for tenant-improvement money to upgrade the space. “If it’s a second-generation space, they give you less money, but that’s where you have to have a really good broker to negotiate and advocate for you, to show them what you’ll be doing for them and the traffic you’ll be bringing, so their investment will pay off. If it’s a first-generation space where it’s brand-new construction, or a shell with four walls and you’re going to be doing absolutely everything inside the space, that’s where you can negotiate more.”

    Image Credit: Zohar Lazar

    Lesson 5: Be the start of a virtuous cycle.

    Joe Jaros started delivering for a Marco’s Pizza in high school, became a shift manager at 18, and told the owner he wanted to become a franchisee at 21. Eventually, they became partners — and Jaros now owns five stores. Now he wants to keep the cycle going, by being the boss that helps the next generation of franchise owners thrive.

    “I decided that I was going to have my own apprenticeship program where I take great operators and turn them into franchisees,” he says. But he does it in a very particular way: He selects some of his best employees and helps them buy a piece of his own stores. To him, it’s just good business. “If it’s going to take me seven years to pay off a store, and the average general manager lasts about a year, I’m taking a lot of chances,” he says. “If I know I have a great operator to last the whole seven years, my risk factor is much lower. I figured, if I just make a little less on each store, but I mitigate my risk, I’m going to come out ahead in the end.”

    Related: Is Business Ownership Right for Me? 4 Questions to Consider Before Taking the Plunge.

    Lesson 6: Take smart risks.

    Kelli Amrein had spent years in childcare, including director positions where her job was to manage teachers and schedules. After she joined the staff of Celebree School in 2011, she eventually got to see the business side. “They gave us full access to payroll and budgeting and all the financial reports that we could analyze to see where the business was growing,” she says. “I really liked that challenge.”

    When Celebree started franchising, she was 41 with three kids — but she took a chance and became the brand’s fourth franchisee. “I really would not have taken this leap if it was in an industry that I didn’t know enough about,” she says. “I knew all of the risks that happen inside the building, outside the building, the marketing, how many hours a day it would take to do things. I knew I’d have to be available to answer questions after-hours — I knew the risks, I knew the industry.”

    Lesson 7: Ask for help when others won’t.

    Matt Peters was 16 when a friend got him a job knocking on doors, offering homeowners a free estimate for Weed Man’s fertilizer and weed control. At first, it was a bust — he was too socially awkward and didn’t know how to sell. “I had to fall flat on my face a number of times,” he says.

    Instead of giving up, he started asking others for help. That included talking a lot to the supervisor who drove him and his fellow salespeople around. By taking their advice, Peters blossomed into a winning salesman — and at 24, he bought his first franchise. Today he’s 32 and owns two locations. “I still see other people that I think are much more talented than I am,” he says, “but I learned from good people who were patient enough to teach me and cared enough to give me advice and feedback and coaching. They either saw potential in me or encouraged me to do it and supported me.”

    Lesson 8: Make data-driven decisions.

    Austin Clark was playing college football and had just finished his kinesiology degree when he had a career-ending wrist injury. So he changed paths: He got an MBA, became general manager at D1 Training’s headquarters, and then eventually went on to become a D1 multi-unit franchisee.

    How does he grow his business? By constantly tracking key performance indicators: “Say, marketing: I know what my cost per lead is, my cost per 1,000 impressions, my funnel converts, the percentage of my customers that come through the marketing funnel and end up scheduling with us. By tracking those KPIs in the data, and being in a franchise system with other people tracking those same things, I can see the areas where we’re struggling. I can lean into the franchise and see who has figured those marketing pieces out. Who’s done a really good job generating more leads for less dollars on Facebook and Instagram? I can then go and look for people who are great at that.”

    Related: Find Out Which Brands Have Ranked on the Franchise 500 for Longest, Earning a Spot In our New ‘Hall of Fame’

    Kim Kavin

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  • 8 Rules to Live By in Franchise Marketing, According to Top CMOs | Entrepreneur

    8 Rules to Live By in Franchise Marketing, According to Top CMOs | Entrepreneur

    When it comes to franchise marketing, the best CMOs find ways to strike a balance between protecting, growing and enhancing the brand at the national and global levels while still allowing for customization at the local level.

    “It’s our responsibility as a franchisor to provide tools, resources and support for our franchisees that allow them to stay within our overarching strategy but also exercise freedom in their local marketing, understanding what resonates best in their market (using the tools and guidelines set),” says Ashley Mitchell, senior vice president of marketing at Streamline Brands.

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    If you’re an aspiring franchise CMO or looking for new strategies to elevate your franchise’s marketing and branding, this one’s for you. We spoke with franchise marketing executives across industries to explore what it takes to succeed.

    Step one? Recognize that franchise marketing is unlike any other type of marketing. From there, it’s all about taking a hybrid approach, adapting to market conditions and creating strong personal connections.

    “Working in franchising, you also have to check your ego at the door and realize that some of the best ideas are going to come from your community — lean into that and truly partner with your franchisees to ensure you are able to hear those great ideas, polish and elevate them to the next level and share widely,” Mitchell adds.

    Related: Want to Become a Franchisee? Run Through This Checklist First.

    1. Don’t compare franchise marketing to other types of marketing

    “Your stakeholders, strategies, objectives, KPIs — they all are highly dependent on your business model, the markets you’re working in and the goals of both the franchisor and franchisee. A lot of franchise marketers learn quickly that what might have been successful in a previous, non-franchise role won’t work or will need to be heavily modified. This is what excites most of us, but also, at times, can be physically, mentally and emotionally exhausting!” — Will Fraker, vice president of marketing at FranNet

    2. Take a hybrid approach

    “Your franchisees didn’t get into business to be full-time marketers. You need to be their strength wherever their weakness lies, and for many of your franchisees, it is likely to be in marketing. At MassageLuXe, we ask ourselves ‘Does this need to be localized to their market?’ If the answer is no, we do the marketing for them. If it does need localization, we provide easy-to-use guides and templates so that they can activate easily. Take a hybrid approach to brand and local marketing in the franchisees’ favor to ensure you are taking into account the unique needs and characteristics of each local market while maintaining a consistent brand image and messaging.” — Kristen Pechacek, chief growth officer at Massage Luxe International

    Related: Everything You Need to Know About Franchise Law.

    3. Adapt to unique market conditions

    “To succeed in franchise marketing, it’s essential to navigate the tension between centralized brand control and adapting to the unique market conditions of each franchise location. Juggling these competing priorities requires a deep understanding of both franchisor objectives and franchisee requirements, as well as the ability to effectively leverage a range of marketing channels to reach and engage customers. That balance requires a combination of art and science to pull it off effectively.” — Mike Millett, vice president of marketing at Stratus Building Solutions

    4. Create a strong personal connection with customers

    “Franchise marketing is about creating a strong emotional bond between your brand and the people within your local communities — and that relationship is most effectively established at the local level, with support from national brand marketing. The franchisor should have proven local marketing programs in place for the franchisee, making it easy for them to execute (or executing it on their behalf where possible), but allowing the franchisee to customize the program so that messaging is authentic and targeting is optimized. If the franchisee is not a ‘people person,’ they should hire someone to be the face of their business in the community. The closest thing to the mythical silver bullet in marketing is having a strong personal connection with customers and prospective customers.” — Angela Z. Paules, chief marketing officer at Buzz Franchise Brands

    Related: 6 Questions to Ask Before You Begin Your Franchise Search.

    5. When in doubt, embrace simplicity

    “Focus on establishing a strong national foundation where you as the franchisor can ensure there is a consistency of message and augment with a keen insight driven by localization of elements and tactics. In essence, you use local to showcase your media expertise and connection to the community while using national to drive overall system-wide performance.” — Doug Zarkin, vice president and chief marketing officer at Pearle Vision

    Related: Busting Franchising Myths and Choosing the Right Opportunity

    6. Anticipate your customers’ needs.

    “For successful franchise marketing, it’s crucial to conduct both primary and secondary research on your customers. By becoming an expert on their preferences, you can anticipate their needs and tailor your strategy and messaging accordingly. This approach builds trust and loyalty, as customers feel heard and understood. I learned early in my career, ‘If you ask the customer, they will tell you what to do.’” — Brooke Janousek, Fractional CMO

    7. Protect and grow the brand

    “Franchise marketing is all about protecting and growing a brand at the same time. This is done most successfully by providing franchisees with an easy-to-follow system (plan or program) that they understand and believe will help them grow their business, provide a return on their investment and deliver the brand experience. Franchisees are not inherently marketers, so they need to believe in the brand promise and the marketing behind the brand so they can execute their local marketing effectively. Happy and profitable franchisees sell franchises, and ultimately, marketing programs for both growing the brand and the franchise rely on this every day.” — Marci Kleinsasser, vice president of marketing at Home Franchise Concepts

    8. Lean into the community

    “Franchising is the only industry I’ve worked in that has such open and genuine people who truly want to help each other. I have an amazing network of franchise friends that I know I can reach out to at any time with any question or challenge I’m having and they will be happy to share and provide guidance. It’s truly an amazing support system to have.” — Ashley Mitchell, senior vice president of marketing at Streamline Brands

    Related: Is Franchising Right For You? Ask Yourself These 9 Questions to Find Out.

    Clarissa Buch Zilberman

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  • What Should a Franchise Agreement Contain? | Entrepreneur

    What Should a Franchise Agreement Contain? | Entrepreneur

    If you’re in the process of becoming a franchisee or curious about what it entails, then you should familiarize yourself with the ins and outs of a franchise agreement — and that starts with what it contains.

    First, let’s review some basics: A franchise agreement is a legal contract between the franchisor and the franchisee. It outlines all the terms and conditions of the franchise relationship before it officially starts. Both parties must understand the terms of the agreement before signing — or else either side runs the risk of some serious consequences.

    Read on for everything that should be included in a franchise agreement, so you’re prepared before it’s too late.

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    Franchise fees and ongoing royalties

    The franchise agreement should specify the initial franchise fee, which is the upfront payment to the franchisor for the right to use its trademark and business system. Think of it as the price you pay for not having to build a business system from scratch.

    This fee might be paid in a lump sum or installments, and it typically covers the initial training and support the franchisor will provide.

    The franchise agreement should also include the ongoing royalties that the franchisee is required to pay to the franchisor. Royalty fees are typically a percentage of revenue, and they can be flat or on a sliding scale. The royalty fees can be paid weekly, monthly or quarterly and cover the franchisor’s continued support, marketing and advertising.

    Related: Is Franchising Right For You? Ask Yourself These 9 Questions to Find Out.

    Territory and exclusivity

    One of the benefits of franchising is the ability to expand into different areas, cities and even countries. To avoid conflicts between franchisees in the same area, the franchise agreement defines the territory in which the franchisee is authorized to operate the franchised business.

    This could include a specific geographic area, a particular city or a specific address or location. It should also specify whether or not:

    • The franchisee has the exclusive rights to operate the business within a territory
    • Other franchisees can operate in the same area or nearby
    • The franchisor can open additional franchises in the same territory

    Operating standards and training

    An important aspect of franchising is a uniform training and operating model. This can include product quality, customer service, advertising, training and more. The franchise agreement should specify the operating standards the franchisee must abide by to align the individual franchise with the integrity of the larger brand.

    The franchise agreement should also specify what the franchisor will provide in terms of the type and amount of training and operating support. That said, franchisors must provide appropriate training to ensure the franchisee understands and effectively implements the franchise standards.

    Related: 10 Tips to Go From Employee to Boss, From Franchisees Who Did It

    Intellectual property rights

    It might go without saying, but one of the reasons a franchisee embarks on a franchising journey is to use the franchisor’s trademarks, logos and other intellectual property. The franchisor grants the franchisee a license to use this intellectual property exclusively for the franchised business.

    These stipulations should all be in the franchise agreement. The franchise agreement should also outline the restrictions on the franchisee’s use of intellectual property to protect the franchisor’s brand.

    Term and renewal

    The franchise agreement should specify the term of the franchise relationship. The term is the length of time that the franchisee is legally allowed to operate the business. Terms can range from several years to several decades, and they can vary from location to location. The franchisor has the right to offer a renewal option that allows the franchisee to renew the franchise agreement for another term.

    The franchise agreement should contain the renewal conditions, such as meeting key performance metrics, paying all necessary fees or meeting other goals. The franchisor also has the right not to renew the agreement if the franchisee fails to meet the conditions for renewal.

    Related: The 4 Biggest Myths About Franchising

    Termination and default

    The franchise agreement should specify the conditions under which either party can terminate the franchise agreement to avoid having to wait until a term ends. Terminations can be due to contract breaches, insolvency, failure to meet performance standards or just by mutual agreement and should be defined in the franchise agreement.

    The franchisor should also include a default clause in the franchise agreement to protect itself. Default clauses outline the remedies available to the franchisor in the event of contract breaches or early terminations.

    Related: Never Buy a Franchise Without Researching These 5 Sources

    Financial disclosures and obligations

    A breakdown of financial disclosures and obligations should be listed in the franchise agreement, such as initial investment costs, ongoing expenses and financial reporting requirements. The franchisee should have a clear understanding of the costs and financial obligations associated with the ongoing operations of a franchised business.

    Advertising and marketing

    Franchises typically run national advertising campaigns, so individual franchisees are not responsible for television commercials or other marketing strategies. But to pay for this, the franchisee is required to pay ongoing advertising and marketing fees to the brand’s national advertising fund, outlined in the franchise agreement.

    There may be opportunities for franchisees to conduct their own advertising in their local territories, which can also be outlined in the agreement.

    Key takeaways and what to do next

    Franchisees should have a clear understanding of what a franchise agreement entails before signing the dotted line — and they should be wary if the contract is vague. To better understand the terms and conditions, franchisees should seek the advice of a franchise legal professional before moving forward.

    Related: Busting Franchising Myths and Choosing the Right Opportunity

    Clarissa Buch Zilberman

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  • The 19 Covenants of a Standard Franchise Agreement | Entrepreneur

    The 19 Covenants of a Standard Franchise Agreement | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    The following excerpt is from Rick Grossman’s book Franchise Bible. Buy it now from Amazon | Barnes & Noble | iTunes | IndieBound

    The franchise agreement is the contract between the franchisor and franchisee, but it’s not a “standard” or “form” agreement. The format of the contract differs from one franchise system to another.

    While each franchise agreement will differ in style, language and content, all franchise agreements have covenants, each of which describes a promise, right or duty that the franchisee or franchisor owes to the other or that benefits the franchisor or franchisee. The following is a list of those covenants that one most often sees in a typical franchise agreement. (The franchise agreement on our companion website will have the specific language that addresses each covenant.)

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    1. Grant of franchise

    The “Grant” section lets franchisees know that the franchisor is granting them the limited, non-transferable, non-exclusive right to use the franchisor’s trademarks, logos, services marks (called generally the Marks) and the franchisor’s system of operation (often called the System) for the period of time defined by the franchise agreement. The franchisee receives no ownership rights to the Marks or the System, and the franchisor always retains the right to terminate the franchisee’s grant-of-license because of a breach of the franchise agreement.

    2. Opening date, territory limitations, build-out and similar rights

    This covenant describes the franchisee’s territory (be it exclusive or not) and sets up a time schedule by which the franchisee must find a brick-and-mortar location, must have the plans for the unit approved and must be built-out and opened. This section may also disclose other matters such as the computer equipment needed to operate the business and the like.

    Related: The 23 Items That Make Up the Heart and Soul of the Franchise Disclosure Document

    3. Fees and required purchases

    This section will disclose the fees more specifically described elsewhere in the agreement. The fees include the initial franchise fee, any fees paid to the franchisor prior to opening, any fees paid to the franchisor during the term of the franchise, all advertising fee obligations and the like.

    4. Advertising

    In this section, the franchisor should repeat the franchisee’s advertising obligations as they’re stated in Item 11 of the franchise agreement (and the fees for which are identified in Items 5, 6, 7, 8 and 11 — as applicable).

    5. Term and renewal

    This covenant spells out the term (length of time) of the franchise agreement measured from the date the franchise agreement is signed to the date that the franchise agreement expires. If renewal rights are granted, this section will also spell out the prerequisites of this arrangement.

    6. Services offered by franchisor

    Though not all franchisors will repeat the pre-opening and post-opening services that they offer the franchisee in the franchise disclosure documents, sound drafting principals will require that these matters be repeated in the franchise agreement. Including them in the franchise agreement, however, removes the specter of litigation as a way to insert rights into the contract that aren’t otherwise stated.

    7. Protection of proprietary information, marks and other intellectual property

    As discussed in the “Grant of Franchise” section earlier, the franchisor is granting only a temporary license to the franchisee. Most franchisors will enforce this understanding by adding specific language that identifies each item that makes up its proprietary, confidential and trade-secret information and by then stating the limitations that are placed on the franchisee’s right to use such information. It is important protection for the franchisor and is not usually a covenant missing from the franchise agreement.

    Related: When Evaluating a Franchise, Ask These Questions

    8. Training

    This section should disclose any training offered by the franchisor, including any additional training, seminars, meetings or the like that the franchisor will either require or urge the franchisee to attend.

    9. Quality control

    As the name suggests, franchisors will address the franchisee’s specific quality-control requirements. This is sound franchising and is necessary to insure that the goods and services offered throughout the system meet the franchisor’s minimum requirements.

    10. Transfers

    Virtually all franchise agreements control the franchisee’s right to transfer their interest in the franchise relationship. This section will list the prerequisites to a transfer.

    Related: The Anatomy Of A Franchise Disclosure Document

    11. Defaults, damages and complaint limitations

    All franchise agreements will contain some recitation of the violations of the franchise agreement that will be treated as a breach. These violations may be divided into those breaches that result in the immediate termination of the franchise agreement, for which no cure is given, and those violations for which cure is provided.

    12. Obligations upon expiration or termination

    Once the franchise relationship has ended — either because the term has naturally concluded and no renewal has occurred, or because the franchise agreement was terminated — it is typical for the contract to list a series of steps that the franchisee must take to “de-identify” the business and the franchisee’s association with the franchise system.

    13. Franchisor’s right of first refusal

    Most franchise agreements give the franchisor the option, but not the obligation, to exercise a first right refusal to purchase the franchisee’s business — in the case where the franchisee seeks to transfer the business, or the first right to purchase the franchisee’s assets at the time that the franchise agreement expires or is terminated.

    14. Relationship between the parties

    Franchisees are always treated as independent contractors of the franchisor. This has several important implications. An independent contractor is not an employee or agent of the principal. Instead, the independent contractor is in business for themselves. The parties to this relationship pay their own taxes, hire on their own, are responsible for their own employees and generally operate independently of the other in carrying out the contract between them.

    Related: How Franchisees and Franchisors Can Master Their Relationship

    15. Indemnification

    All franchisee agreements will contain an indemnification covenant, which means that the franchisee will reimburse the franchisor for any losses it suffers as a result of some negligent act or wrongdoing of the franchisee. These covenants are almost always one-sided in favor of the franchisor — which is fair, given that the franchisee and not the franchisor is responsible for the day-to-day operation and maintenance of the business.

    16. Non-Competition covenant and similar restrictions

    A non-competition covenant is one that seeks to prevent the franchisee from opening a business that would compete with the franchised business. Virtually all franchise agreements will have non-competition covenants. The covenant is often broken into two parts: the “in-term” covenant; and the “post-term” covenant.

    As the name suggests, the in-term covenant prevents the franchisee from competing against the franchisor and any other franchisees while the franchise agreement is in force. Typically, this covenant covers a geographic area around each franchised, company-owned and affiliate-owned business. The post-term covenant covers the former franchisee after the franchise agreement expires or is earlier terminated because of an uncured breach.

    Related: The 5 Items in Your Franchise Disclosure Document That Can Make or Break a Real Estate Deal

    17. Dispute resolution

    This covenant spells out the methods the franchisor uses to resolve disputes with franchisees.

    Most often one will see at least a nonbinding-mediation requirement followed by a binding-arbitration requirement. In other cases, these two methods of resolution will be preceded by the requirement that the parties first meet face-to-face.

    18. Insurance

    All franchise agreements will require the franchisee to obtain insurance to cover its business operations. In all cases, each of the franchisee’s insurance policies will require that the franchisor be named as an “additional insured,” meaning that the franchisor enjoys the same coverage as does the franchisee, even though the franchisor is not paying for the coverage.

    19. Additional or “miscellaneous” provisions

    This is kind of the catch-all section of the franchise agreement that contains what some call “boilerplate” language, meaning that it is “usual” that such language be included in any contract. In virtually all franchise agreements, you’ll see covenants that cover mergers, modifications or amendments, non-waiver provisions, state-specific addenda and more.

    Related: 8 Steps to Finding the Right Franchise

    Rick Grossmann

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  • The 23 Items That Make Up a Franchise Disclosure Document | Entrepreneur

    The 23 Items That Make Up a Franchise Disclosure Document | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    The following excerpt is from Rick Grossman’s book Franchise Bible. Buy it now from Amazon | Barnes & Noble | iTunes | IndieBound

    The heart and soul of the disclosure portion of the Franchise Disclosure Document (FDD) — and indeed its very purpose — is set forth in the Items. Each Item is given a specific title (which cannot be altered), and within each Item, the franchisor is required to provide the answers to a myriad of FTC-mandated questions. For a complete list of the questions in each Item, take a look at the NASAA Guidelines on our companion website.

    Following is the list of Items, along with a brief description of the content to be found there.

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    Item 1: The franchisor, any parents, predecessors and affiliates

    Item 1 gives you the franchisor’s background and that of any parent company, predecessors and affiliates. A predecessor is defined as “a person from whom the franchisor acquired directly or indirectly the major portion of its assets.” An affiliate is defined as “a person controlled by, controlling, or under common control with the franchisor.”

    Item 2: Business experience

    This Item gives you the past five years’ worth of the personal business experience of the franchisor’s directors, trustees, general partners, officers and any other individuals who’ll have management responsibility relating to the offered franchises.

    Item 3: Litigation

    In this Item, the franchisor must disclose any material litigation involving the franchisor and predecessor, parent and affiliate, if the litigation involves claims about the franchisor’s sales process, their performance under the franchise documents and claims of antitrust, fraud, unfair or deceptive trade practices, or comparable allegations. The franchisor must also disclose any franchisor-initiated litigation against its franchisees and any other business litigation (even if it’s not franchise-related) if, at the end of the day, the litigation negatively impacts the franchisor’s financial condition or their ability to operate a franchise.

    Related: Why You Should Buy a Franchise Instead of Starting Your Own

    Item 4: Bankruptcy

    This Item must disclose any bankruptcy in the past ten years that involved the franchisor and any parent, predecessor, affiliate, officer or general partner of the franchisor, or any other individual who will have management responsibility relating to the sale or operation of the franchise.

    Item 5: Initial fees

    Here, the franchisor (and any of their affiliates) must disclose all of the initial fees they charge to the franchisee before opening. Such fees include the initial fee paid to purchase the franchise rights (often called the “initial franchise fee” or IFF), computer or point-of-sale equipment that must be purchased only from franchisor or their affiliates, and similar fees.

    Item 6: Other fees

    This section of the FDD advises you of any other fees you’ll have to pay to the franchisor or an affiliate as well as costs that are collected by the franchisor for third parties, or that are otherwise imposed. Line items include a statement of the royalties, advertising fees, service fees, training fees, renewal fees and other similar one-time or ongoing charges.

    Item 7: Estimated initial investment

    In this section, the franchisor must disclose a range of the minimum and maximum of all fees, costs and expenses that the franchisee will incur prior to opening the business, including the initial franchise fee, real property expenses such as rent and construction costs, the cost for computer equipment and similar line items. The expenses must include both pre-opening expenses and those incurred during the “initial phase,” which is at least three months or a reasonable period for the industry.

    Item 8: Restrictions on sources of products and services

    Franchisors require franchisees to buy the goods and services needed only from approved vendors. This section lists the approved vendors and also calls out the franchisor’s specifications for permitting a new vendor into the system. It will identify any revenue the franchisor receives from the required purchases, including rebates received by the franchisor from any supplier.

    Item 9: Franchisee’s obligations

    This Item lists your obligations as a franchisee, with references to the sections of your franchise agreement that contain the obligations. The purpose of this is to identify your principal obligations under the franchise agreement and other agreements.

    Related: Are You a Good Franchise Candidate?

    Item 10: Financing

    If the franchisor sponsors financing for new franchisees, it will be spelled out in this section.

    Item 11: Franchisor’s assistance, advertising, computer systems and training

    This is one of the more lengthy and important disclosure Items. In this Item, the franchisor must disclose:

    • The services they’ll provide to the franchisee before and after opening.
    • All advertising expenditures you’re expected to assume.
    • The average time it takes a franchisee to open.
    • The type of computer and similar electronics necessary to operate the business.
    • A detailed description of the training you can expect to receive.
    • The table of contents of the operations manuals.

    Item 12: Territory

    The franchisor must disclose whether it offers franchisees an “exclusive territory” within which to operate the business. With an exclusive territory, the franchisor promises that it won’t permit another franchisee to locate within the territory and that it will also refrain from putting a company-owned or affiliate-owned business there. This Item must also disclose whether you can relocate, and if so, what the criteria are for your move and whether you have any rights to purchase additional units.

    Related: The Anatomy Of A Franchise Disclosure Document

    One of the more important disclosures in this section is whether you’re required to meet a quota or perform in some other manner as a way of insuring either your right to an exclusive territory, or your right to continue in business at all. This Item will also disclose the franchisor’s reservation to itself of certain marketing and sales rights either within or outside any territory.

    Item 13: Trademarks

    This section must identify each principal “Mark” (trade name, trademark, service mark, service name or logotype) to be licensed to you, and must state whether the franchisee is required to modify or discontinue use of a mark under any circumstances.

    Item 14: Patents, copyrights and proprietary information

    The section spells out the patents and copyrights held by the franchisor.

    Item 15: Obligation to participate in the actual operation of the franchise business

    This section discloses whether the franchisee must personally participate in the operation of the franchise. If there’s no such requirement, this section must state whether the franchisor recommends such participation, whether the person who’s handling day-to-day operations must complete the franchisor’s training program and whether this person must own an equity interest in the franchisee entity.

    Related: 6 Questions to Ask Before You Begin Your Franchise Search

    Item 16: Restrictions on what the franchisee may sell

    In most cases, the franchisor will require the franchisee to sell only the goods and services that are part of the franchised business. This section spells out those restrictions.

    Item 17: Renewal, termination, transfer and dispute resolution

    Item 17 contains a cross-referencing table to the franchise agreement for 23 separate line items. It’s different than Item 9 in that it includes a concise statement of the content of the particular franchise-agreement covenant as well as the location of the covenant in the agreement.

    Related: 8 Steps to Finding the Right Franchise

    Item 18: Public figures

    This section requires the franchisor to disclose whether it uses a famous person to endorse the franchise. If so, it must disclose the compensation paid or promised to the person, the person’s involvement in management or control of the franchisor and the amount of the person’s investment in the franchisor.

    Item 19: Financial performance representations

    In layperson’s terms, a Financial Performance Representation (FPR) is any document, chart, arithmetic calculation, math formula or other representation that would allow a potential franchisee to determine what they could earn. The only way the franchisor or its sales staff or brokers can offer an FPR is if it’s stated in this Item 19. If no such information is found in Item 19, any claims made by the franchisor as to your potential earnings are in violation of the law.

    Related: The 6 Best Financing Options for Franchising a Business

    Item 20: Outlets and franchise information

    This section provides information regarding existing outlets in the franchise system. It covers outlet transfers — and the status of franchised and company-owned outlets — for the past three fiscal years, as well as projected openings for the next fiscal year. It must also provide information regarding any reporting changes, any confidentiality clauses signed by franchisees during the past three fiscal years (“gag clauses”), and information about certain trademark franchisee associations.

    Related: Know Before You Buy: These Are The Costs Associated With Purchasing and Operating a Franchise

    Item 21: Financial statements

    The FDD must contain an exhibit with the franchisor’s audited financial statements for the prior three fiscal years. If the franchisee has been open less than three years, the FTC allows the franchisor to phase in audits. The franchisor is also required to provide a separate, audited financial statement for a company controlling 80 percent or more of the franchisor.

    Item 22: Contracts

    This section requires the franchisor to attach to the FDD a copy of all form contracts the franchisee will sign, including the franchise agreement, leases, options and purchase agreements.

    Item 23: Receipt

    In this final section, the franchisor is required to include as the last page of the FDD a form for the prospective franchisee to sign to acknowledge receipt of the FDD.

    Rick Grossmann

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  • He Started One of the Original Froyo Brands 14 Years Ago. He’s Still Serving Up Fresh Concepts. | Entrepreneur

    He Started One of the Original Froyo Brands 14 Years Ago. He’s Still Serving Up Fresh Concepts. | Entrepreneur

    How can a brand expand?

    Phillip Chang has wrestled with this question many times — like in 2004, when his bubble tea franchise, Boba Loca, hit a wall. “I couldn’t solve the problem by just adding another drink,” he says. “I wanted something more, something bigger.” So he created Yogurtland, a self-serve frozen yogurt brand that sparked an international craze (and many copycats).

    Seventeen years later, Yogurtland is still going strong — no small feat in the ever-changing food world. And Chang is ready to expand again. Over the past two years, he’s introduced two new concepts within the Yogurtland brand: Holsom by Yogurtland — a fast-casual, healthy meal joint — and Egg N Bird, which specializes in a Korean chicken sandwich (and doesn’t use the Yogurtland branding). Here, Chang discusses the art of innovation, diversification, and gaining a competitive edge.

    Related: How to Tackle the 5 Challenges Every Expanding Business Faces

    You approach expansion very carefully. Tell me about that.

    I do not like expansion for no reason. My philosophy is: Why am I doing this business and what’s the end goal? That has to be very formed. Without that, everybody is just chasing money. If you don’t have your own philosophy or a good foundation of who you are, it’s nothing. Identity is so critical. You have to start from there.

    So where did the Holsom and Egg N Bird concepts come from?

    Before we expanded, I wanted to build strong roots with Yogurtland. Doing that gave us lots of great ideas. I thought, How can we make it better?

    We started with quality. That’s how I came up with Holsom. It’s very light and nutritional food. But with Holsom, there is still a connection to yogurt. I wanted to go beyond that — explore a real meal. So for Egg N Bird we did lots of research to ask, What is the demand out there?

    The beef market is huge, but I thought people maybe missed the chicken opportunity, and chicken is a healthier option. I’m Korean, and there are lots of chicken restaurants in Korea. I knew how they served the chicken, and so with our amazing team, we put together the demand for our market and came up with this amazing chicken sandwich.

    Related: 15 Strategies for Quickly Expanding Your Business

    How do you think innovation and continual diversification have contributed to the success of your brands?

    In the restaurant industry, we think of trends in terms of cycles. There’s challenging times, but one thing that never changes is that a top brand can win in any kind of cycle.

    With Yogurtland, frozen yogurt consumption is constantly going up and down, but we have such great quality that we continue to thrive. We are taking over a big portion of the ice cream market.

    The same thing is true with Holsom and Egg N Bird. When we have top quality and provide worth to our customers, we can dominate the market.

    What advice do you have for business owners going through a not-so-great sales cycle? How do you stay motivated in times when it’s not the best?

    All entrepreneurs should have their own philosophy and beliefs — an identity, and a clear idea of who you are. What do you want to achieve out of this?

    Always try to look at the whole picture. When a leader is so into little operations, they miss big trends. You have to understand if a market is turning from a typical beef hamburger to a chicken sandwich — there are lots of signs. If they read them ahead of time, then they can plan. Take a step back. And always make time for meditation — about your life, your family, your goals, the people around you, and what you’re trying to achieve.

    Related: How Franchisees and Franchisors Can Master Their Relationship

    Madeline Garfinkle

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  • From Opening a Gym on a Whim to Partnering With Floyd Mayweather | Entrepreneur

    From Opening a Gym on a Whim to Partnering With Floyd Mayweather | Entrepreneur

    Jessica Yarmey never planned to open a kickboxing gym — let alone a fast-growing franchise that would gain the attention of world champion boxer Floyd Mayweather Jr.

    But today, less than three years after debuting the first-ever KickHouse Fitness, her brand has been acquired by Mayweather Boxing + Fitness and grown to nearly 30 locations across the country — with more on the way.

    The secret? A Warren Buffett quote, says Yarmey: “Be fearful when others are greedy, and be greedy when others are fearful.”

    “Brick-and-mortar fitness was heavily affected in the pandemic, but I thought there was an opportunity to get in,” Yarmey says. “I’m a big believer in changing people’s lives. I knew it was a down time, but I was confident that it wouldn’t be down forever.”

    Related: 3 Common Obstacles of Franchisors

    Leading with branding

    Pre-pandemic, Yarmey was the chief marketing officer at Club Pilates, where she helped the company expand to more than 615 locations. With her background in marketing and branding, she felt comfortable building a memorable, relatable concept that could be replicated anywhere.

    “Every single person had their own journey and fear through Covid-19,” she says. “It’s the same individualized approach we bring to the mat. Every person who comes in brings their own expectations and challenges. And that’s the power of brick-and-mortar fitness.”

    “My goal was to create something that could be put anywhere and would still connect and resonate,” she adds. “What I see many franchisors missing are the elements of a brand that will allow someone to connect immediately [and] emotionally with what you’re doing.”

    Related: Four Factors Influencing a Franchisor’s Success

    Reintroducing the world to kickboxing

    Though it wasn’t in her five-year plan to open a fitness franchise, she says, Yarmey identified a gap in the kickboxing world and felt there was no better time to jump in. That’s when KickHouse was born.

    “I’ve always been athletic,” she says. “I grew up playing soccer, was a personal trainer and even took the Club Pilates teacher training when I was the chief marketing officer. The fact that I am very much a beginner in kickboxing helped me create a format that can be executed by a beginner.”

    Together with an investor partner, Yarmey’s first step was to design KickHouse as a place she would want to go. “Despite being an ex-athlete and working in fitness, I’ve still felt intimidated walking into studios,” she says. “I’ve also felt insecure when I couldn’t figure out exactly what I was supposed to be doing during class. I worked closely with my director of programming Gwen Dannenbaum to ensure that the coaches and the workouts would start at the beginner level and progress from there so anyone could do the workout.”

    Representation matters

    Two-and-a-half years in, Yarmey feels an obligation to not only share her appreciation for kickboxing but also shed light on her entrepreneurial pursuits with fellow aspiring franchisors and franchisees.

    “I have felt the benefit of kickboxing to power my tough days,” she says. “To give that toolset to other female entrepreneurs, there is no greater sense of reward.”

    That might explain why 40 percent of all KickHouse franchisees are women, and the entire central support team are women too. Another 10 percent of franchises are Black-owned, and Yarmey hopes to only increase those numbers.

    “Representation matters, and our diversity evolved as the brand evolved,” she says. “I didn’t go into this feeling like I would gain a platform to speak to women entrepreneurs. But the more I share, the ones who are connecting most to my story are other females trying to figure out what they’re going to build themselves.”

    Related: 9 Factors to Consider When Choosing a Franchise Attorney

    Finding good partners

    As Yarmey looked to continue KickHouse’s rapid growth, she began to pursue additional funding and other creative solutions to help scale. In October 2022, MW Fitness Holdings announced it had acquired KickHouse. “At the end of the day, the goal is growth and the reality is you can get to growth in a variety of ways,” she says. “The partnership with Mayweather Boxing is going to accelerate the growth of both brands.”

    By joining Mayweather Boxing, KickHouse has gained support in franchising aspects like development, build-outs and site selection, while Yarmey has stepped in to help Mayweather with marketing and sales. Since the acquisition, Yarmey has signed four new KickHouse agreements. “We are seeing the business accelerate, and we are seeing the economies of scale that we had modeled out on paper,” she says.

    When it comes to franchise success, Yarmey attributes self-awareness as a major player. “Understanding what we do very well and what we are missing or not doing as well — KickHouse leads with marketing and sales, and the Mayweather team leads with development and support functions. The ability to combine strengths is something we both saw as an opportunity.”

    “Both of our goals are to have strong global brands with strong central support structures,” Yarmey says. “It helps our brands take a step forward by combining resources and leveraging each other’s strengths.”

    Looking back, Yarmey knows that starting a business is one of the scariest things a person can do. But if you have that entrepreneurial bug, it might be worth the risk, she says.

    “Say you’re a good people leader, but you’re not strong in operations — that’s where a franchise makes a ton of sense,” she says. “It de-risks entrepreneurship. You go in with built-in partners, people to work with you to make it less daunting.”

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    Clarissa Buch Zilberman

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  • Here’s What You Need to Know About Funding a Franchise | Entrepreneur

    Here’s What You Need to Know About Funding a Franchise | Entrepreneur

    The following excerpt is from franchise expert Mark Siebert’s book The Franchisee Handbook. Buy it now.

    When it comes to funding a franchise, how much is enough? The answer is simple — more than you need.

    Consider this: More startup businesses fail because of undercapitalization than for any other reason. So where do you start? You need to determine how much you can invest and how much you are willing to invest. You might find those two numbers are different.

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    How much can you invest?

    This answer lies in your net worth. To determine that, you should create your own personal balance sheet.

    Start by adding up all your assets to determine how much you own: cash, checking accounts, investments, home value, personal property, retirement accounts, business interests and other assets of value. Next add up everything you owe (called liabilities): credit card debt, mortgage debt and other loans.

    Your net worth figure represents an approximation of the capital available for you to invest in a franchise. You must next decide how much of that you are willing to risk on the franchise.

    The amount of capital you are willing to risk is not necessarily the same as the amount you have to invest. You may choose to invest only a fraction of your net worth in the franchise, or you may choose to invest more using the sometimes dangerous magic of leverage.

    Related: Owning a Franchise Could Be Your Fastest Route to Business Ownership. Here’s What You Need to Know to Succeed.

    Leverage is like wine — wonderful if you know your limit

    In quantifying how much you are willing to risk, you must understand the concept of leverage. Leverage, or your ability to use borrowed money for an investment, is like wine — it’s great in the right quantity, but too much can kill you. While leverage increases your potential return, it also increases your risk.

    To understand the power of leverage, let’s use the everyday example of buying a home. If you were to purchase a $200,000 home today, you might be able to buy it with 10 percent down. With monthly payments of perhaps $900 per month (without taxes and insurance), you figure you can afford it because you and your spouse each take home $2,000 per month.

    Over the next three years, let’s say you increase your paid-in principal by about $9,000. Thus, the average equity you have in that home will be a little over $24,500.

    Related: 23 Questions to Ask a Franchisor When You Meet Face to Face

    If you then decide to sell the home, the selling price is dictated based on the market, regardless of your equity position. Thus, if real estate has been booming, you may be able to sell your property for $230,000. Without factoring in closing costs or commissions for the sake of this analysis, your three-year return on your total investment of $200,000 is around 15 percent. But your three-year return on the $24,500 in average equity you invested will be $30,000/$24,500 — or about 122 percent!

    That’s great news, but things don’t always work out that well. Anything can happen, from unexpected medical bills to natural disasters. What if you or your spouse is laid off? Can you still afford that home on only $2,000 a month?

    Apply this same principle to your investment in a franchise. Perhaps you have a net worth of $500,000. But since a lot of your capital might be tied up in your home and retirement savings, you only have $100,000 to invest in your franchise. You will need to decide whether to leverage yourself into a higher investment with a higher potential return.

    So how much is too much?

    There are two factors influencing the answer to that question. The first is you — how much of an appetite for risk do you have? Remember, your banker is going to take a security interest in your assets.

    So even though you invested $100,000 of your capital out of pocket, if your franchise business fails, they may go after your house or other assets. While your equity investment may only be $100,000, your total investment will include the money lent to you by your bank.

    The second part of this equation is your banker or other lender. Generally speaking, bankers and/or Small Business Administration (SBA) lenders like at least 30 percent of the initial investment to come from your personal equity. So conceivably, you could leverage a $100,000 investment up to $300,000 or so.

    Related: The 4 Biggest Myths About Franchising

    Your ability to leverage your investment will be dictated by a variety of factors:

    • Any collateral you can offer in the business
    • Anticipated cash flows
    • Your credit score
    • Other sources of income (e.g., passive income or spouse’s earnings)
    • Your banker’s opinion of the franchise
    • Your banker’s opinion of you as a franchisee

    Meet with your banker

    One step you can take early in the process is to speak candidly with your banker. While you will certainly need to have a more detailed conversation once you have chosen your franchise, your banker (or several bankers, if you have the time to speak to more than one) can give you a great idea of acceptable risk.

    At this stage, the one thing you cannot show them is your projected earnings or the operating costs of the franchise. Bring what you have to your banker and ask for advice on how much you could reasonably afford to borrow.

    Once you have met with your banker and have a good feel for your available capital, your risk tolerance and your ability to leverage your way into a franchise, you are ready to begin the screening process to help you narrow the field.

    Related: Which Franchise is Right For You? Follow These Steps

    Get started with The Franchisee Handbook

    In The Franchisee Handbook, franchise expert Mark Siebert walks you through the process of vetting and buying a franchise, helps you ask the right questions of franchisors and yourself, and gives you the resources you need to decide if franchising is right for you. Siebert shows you how to do your homework before making what could be the greatest financial decision of your life. You will learn how to:

    • Accurately assess the risks of buying a franchise
    • Determine if a franchise is a good fit for your personal goals
    • Research and vet potential franchise opportunities
    • Create a startup plan that meets your business goals
    • Prepare your franchise for success

    Why dream about owning a franchise when you can take concrete steps to make it happen today? With The Franchisee Handbook as your guide, you have the power in your hands to start your own franchise journey right now.

    Entrepreneur Staff

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  • Top 15 Home-Based and Mobile Franchises 2023

    Top 15 Home-Based and Mobile Franchises 2023

    Franchising doesn’t have to be far from home, with some concepts allowing for completely remote operations. Many home-based and mobile franchises allow for “absentee ownership,” meaning the franchisee is not required to be on-site or involved in the day-to-day operations of the business. For entrepreneurs looking to start a side business or make a career change that allows for flexibility, home-based and mobile franchises might be the ideal route for both success and convenience. From food trucks to at-home travel agencies, these are the top 15 franchises that are mobile or home-based from our 44th Annual Franchise 500 List.

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    Home improvement

    Budget Blinds sells window coverings from shades to wood blinds to shutters and more. The company allows homeowners to remodel their windows at an affordable price. Budget Blinds also offers at-home shopping for other household accessories such as rugs, pillows, bedding and more.

    Initial franchise fee: $19,950

    Initial investment: $140,500 – $211,750

    Number of units: 1,378

    Number of employees required to run: 1-3

    Absentee ownership allowed: Yes

    Retail

    Recognized by Franchise Business Review as a “recession-proof” franchise, Snap-on Tools is the leading tool brand in the world and a top professional tool franchise. The concept manufactures and markets high-end tools and equipment for professionals. Snap-on Tools has more than 58,000 products and operates in more than 130 countries.

    Initial franchise fee: $8,000 – $16,000

    Initial investment: $175,146 – $411,941

    Number of units: 4,771

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Snap-on Tools

    Related: Are You an Ideal Franchisee? Here’s How to Find Out.

    Residential cleaning

    The Maids offers at-home cleaning services for those who want to enjoy a tidy household but cannot find the time to do so themselves. With more than 40 years of experience in the cleaning industry, The Maids has perfected the art of cleaning and sets franchisees up for success.

    Initial franchise fee: $0

    Initial investment: $57,500 – $155,900

    Number of units: 1,589

    Number of employees required to run: 20

    Absentee ownership allowed: Yes

    Explore Ownership with The Maids

    Retail

    Matco Tools manufactures and distributes automotive repair tools, diagnostics and toolboxes with a product line of more than 25,000 items. You might need to lease or purchase a truck to operate the business, but that becomes the hub to run the operation.

    Initial franchise fee: $8,000

    Initial investment: $76,819 – $309,133

    Number of units: 1,919

    Number of employees required to run: N/A

    Absentee ownership allowed: No

    Explore Ownership with Matco Tools

    Commercial cleaning

    Jan-Pro Cleaning and Disinfecting specializes in commercial cleaning in places like daycares, dealerships, offices, schools and healthcare facilities. Jan-Pro Cleaning and Disinfecting has become a leading franchise in the commercial cleaning sector through efficient processes, support systems and excellent customer service.

    Initial franchise fee: $2,520-$44,000

    Initial investment: $4,830 – $58,070

    Number of units: 10,418

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Jan-Pro

    Related: 7 Things You Need to Know Before Becoming a Franchise Owner

    Environmentally friendly commercial cleaning and disinfecting

    Stratus Building Solutions provides commercial cleaning services that are environmentally friendly, relying on the latest janitorial technologies, such as UVC light and HEPA filters. The company only uses green seal-certified cleaning products.

    Initial franchise fee: $3,600-$69,000

    Initial investment: $4,450-$79,750

    Number of units: 2,900

    Number of employees required to run: N/A

    Absentee ownership allowed: No

    Explore Ownership with Stratus

    Commercial cleaning

    Anago Cleaning Systems provides deep cleaning from disinfection to sanitization. Anago Cleaning Systems also offers a selection of three different franchising packages: the master franchisee, unit franchisee and cleaning contract package.

    Initial franchise fee: $5,015-$31,000

    Initial investment: $11,265-$68,250

    Number of units: 1,791

    Number of employees required to run: 1-2

    Absentee ownership allowed: Yes

    Explore Ownership with Anago

    Related: 5 Great Ways to Research Franchise Businesses

    Food

    The beloved shaved-ice truck has ranked #1 in franchisee satisfaction by Franchise Business Review nine years in a row. The company provides delicious shaved ice for any occasion as well as parties, events, fundraisers and more.

    Initial franchise fee: $15,000

    Initial investment: $149,995 – $189,300

    Number of units: 1,480

    Number of employees required to run: N/A

    Absentee ownership allowed: No

    Explore Ownership with Kona Ice

    Food

    This nationwide franchise offers flexibility regarding ownership, allowing franchisees to choose from a variety of options for their Cinnabon location ranging from a co-brand store, kiosk or a co-brand kiosk.

    Initial franchise fee: $5,500 – $30,500

    Initial investment: $112,000 – $546,800

    Number of units: 1,807

    Number of employees required to run: N/A

    Absentee ownership allowed: No

    Explore Ownership with Cinnabon

    Related: Owning a Franchise Could Be Your Fastest Route to Business Ownership. Here’s What You Need to Know to Succeed.

    Maintenance

    Monster Tree Service is a work-from-home franchise that offers tree removal, land clearing, hazardous tree assessment, dead wooding, plant health care and more. The company also provides services for cleaning up after a storm and assists clients with insurance claims. While not required, an ideal franchisee should love being outside.

    Initial franchise fee: $49,500

    Initial investment: $422,166 – $568,358

    Number of units: 253

    Number of employees required to run: N/A

    Absentee ownership allowed: Yes

    Explore Ownership with Monster Tree Service

    Services, Real estate

    HomeVestors of America offers a fast and easy way to sell a house or unwanted property for cash. As America’s no. 1 cash buyer, the company has perfected the art of efficient and smooth sales for selling and buying. Prior real estate experience is not required to be a HomeVestors franchisee, as the franchise provides extensive coaching and training as part of the program.

    Initial franchise fee: $39,000 – $80,000

    Initial investment: $80,000 – $456,250

    Number of units: 1,155

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with HomeVestors

    Travel agencies

    As a Dream Vacations franchisee, you can assist in helping others plan their perfect getaway — all from the comfort of your own home. This franchise allows you to start a home-based travel agency, where you can be an expert in anything from cruises and luxury resorts to weddings and honeymoons. Dream Vacations offers extensive support and training to help franchisees kickstart their business.

    Initial franchise fee: $495-$10,500

    Initial investment: $1,795-$21,000

    Number of units: 1,618

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Dream Vacations

    Related: How I Turned a Side Hustle into a Million-Dollar Travel Business

    Retail

    Founded in 1919, Cornwell Quality Tools is the longest-running mobile tool company in the country. The company manufactures and sells quality tools to professional technicians. As a franchisee, you will become a “tool consultant” to technicians and professionals on products for their business.

    Initial franchise fee: $0

    Initial investment: $59,525 – $277,825

    Number of units: 789

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Cornwell Tools

    Retail

    Mac Tools manufactures and sells quality hand tools. The company offers exclusive products and services such as power tools, tool storage, shop equipment, diagnostics and more. Mac Tools has more than 8,000 different tools in its product line.

    Initial franchise fee: $8,000

    Initial investment: $120,500 – $340,535

    Number of units: 1,131

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Mac Tools

    Related: A Billionaire Who Operates More Than 2,400 Franchises Knows These Types of Franchisees Make the Most Money

    Maintenance

    Lawn Doctor has established itself as a leader in the lawn care industry through excellent customer service and the use of innovative technology. Lawn Doctor specializes in habitual lawn care for commercial and residential customers. Services include weed control, shrub care, lawn mower maintenance, commercial lawn care, lawn pest control and more.

    Initial franchise fee: $40,000

    Initial investment: $116,465 – $141,815

    Number of units: 625

    Number of employees required to run: N/A

    Absentee ownership allowed: Yes

    Explore Ownership with Lawn Doctor

    For more information on the best franchise opportunities of 2023, check out our 44th Annual Franchise 500 List — a comprehensive list of franchise leaders across various industries. If you’re interested in a big-name brand with decades of history or hopping on the next emerging trend, there’s something for every prospective franchisee.

    Entrepreneur Staff

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  • These Are the Hottest Franchises to Watch in 2023

    These Are the Hottest Franchises to Watch in 2023

    Opinions expressed by Entrepreneur contributors are their own.

    Image Credit: Mariaelena Caputi

    What separates the brands in the Franchise 500 from all the rest?

    The numbers tell an interesting story.

    Here’s the thing: Although this issue is mostly devoted to the brands that make our ranking, there are a lot of franchise brands that don’t. A total of 1,321 brands applied this year — that’s 144 more than last year! — and we then painstakingly reviewed, confirmed, and crunched all their data, to identify the 500 strongest. Here’s what we found as a result:

    The 1,321 brands that applied represent a worldwide total of 646,484 units open and operating as of July 31, 2022 (which is the marker of when we measure data). But if you only look at companies that made the Franchise 500 ranking, you’ll see that they represented 590,971 of those units. In other words, although only 38% of all applicants made our ranking, the ones that made it represent 91% of all global units.

    Related: 5 Great Ways to Research Franchise Businesses

    The brands in our Top 500 are also larger and growing faster than the average franchise. If you look at all applicants, the average franchise brand had 489.4 units open and grew by 13.2 units in the previous year. But if you look only at brands who made the ranking, they had an average of 1,181.9 units open and grew by 32.3 units. The top 500 are also more global — 42.5% of their franchise units are located outside the U.S., compared to just 40.5% if you factor in all applicants.

    In short, here’s what we make of this: In franchising, momentum carries. When a brand finds its stride and its franchisees succeed, that brand seems more likely to grow faster, stronger, and wider than its smaller competitors. In fact, nearly 37% of the brands on our Franchise 500 have been franchising for more than 31 years — and only 5% of brands in the ranking have been franchising five years or less. That’s the advantage of experience.

    But of course, longevity alone doesn’t guarantee success — because there are no guarantees in business. In fact, the franchise industry as a whole slowed down a little between 2021 and 2022, with total unit growth just 2.8%, compared to 3.1% two years prior. But that won’t (and shouldn’t!) stop new brands from innovating and franchising. Of the total applicants this year, 7.1% of them started franchising in the year 2022! And 27.8% have been franchising for just five years or less. That’s a lot of fresh ideas — and, in time, future Franchise 500 rankings holders.

    The franchise industry is also constantly shifting in response to changes in our culture, economy, and consumer needs. Those shifts create winners and losers, and you can see that play out in our rankings this year.

    For example, after a bruising few years through the pandemic, quick-service restaurants continue to recover. There are 101 ranked in this year’s Top 500, versus 97 last year. (Not to mention, six of the top 10 — and 29 of the Top 100 — are QSR brands.) While older, larger brands are ranked highly, many newer brands are experiencing strong growth and moving up in the ranking as well, particularly in the subcategories of coffee, sandwiches, smoothies/juices, and teas.

    Related: 2022 Top Franchise Suppliers

    The health and wellness category is also thriving, especially in the subcategories of assisted stretching, chiropractic services, CBD, and eye care. The same is true of the maintenance category — which contains hot subcategories like drywall repair, electrical services, and pest control — where 78 franchises ranked this year, versus 72 last year. Pets also did very well, with 12 franchises ranked this year versus eight last year, with the greatest growth showing up in our dog training and pet stores subcategories.

    So, what comes next? Only time will tell. But we know this: Longstanding franchises have a great head start, but innovative startups have nimbleness on their side. The results will speak for themselves.

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  • Free Webinar | November 9: How Veterans Are Finding Big Success With Franchising

    Free Webinar | November 9: How Veterans Are Finding Big Success With Franchising

    Opinions expressed by Entrepreneur contributors are their own.

    With exceptional leadership skills and a deep understanding of how teams work, veterans are uniquely well-suited to running a successful business within a proven system. That’s why each year, more and more entrepreneurial veterans are getting into the franchise industry when their military service ends — and finding meaningful financial and personal success in the process.

    If you’ve dreamed of starting your own business, this event will put you on the path. We’ve assembled a panel of leaders from brands named on Entrepreneur magazine’s Top Franchises for Veterans list who will explain the ins and outs of finding, buying, and running the perfect franchise for you. Join us for this free webinar on Tuesday, November 9th at 3:00 PM ET.

    Key topics:

    • Transferring your military skills to small business

    • Finding the franchise that matches your goals

    • Financial incentive programs for veterans

    • What you can expect in your first year

    • Road map to success from veteran franchisees

    • Audience Q&A with the experts — ask anything!

    Register Now

    Our Panel:

    Steve White, President and COO of PuroClean

    • Steve White has more than 35 years of leadership experience at every level of the franchising industry including food and B2B franchises, ownership and his current role as the President and COO of PuroClean. His passionate leadership has radically changed failing organizations and helped good organizations become great. Steve is an Army Veteran, a Board Member of the International Franchise Association (IFA), and immediate past Chairman of the IFA’s Education Foundation VetFran Committee.

    Tom Kasbohm, Director of Franchising of Snap-on Tools

    • In his over 32 years with the Snap-on Tools company, Tom Kasbohm has held numerous leadership roles, including that of a franchise owner. Currently, he serves as the Director of Franchising for the 3600+ franchise owners and 165 company stores across all of North America. Tom is charged with leading the #1 Franchise for Veterans and the #1 Tool Franchise, as recognized by Entrepreneur. For the past 10 years, Tom has helped the franchise system reach historic highs and navigate safely through the Covid-19 pandemic. Snap-on was recognized for the past two years as a Recession Proof Franchise by Franchise Business Review. A proud member of the VetFran committee and the IFA, Tom Kasbohm is an accomplished franchise industry leader.

    Drew Daly, GM and SVP of Dream Vacations

    • As a leader in the travel industry, Drew sits on several boards and serves a voice among other industry thought leaders. He is also a member of the American Society of Travel Agents, the Executive Leadership Broward Class of 2017 and is on the events committee for Gilda’s Club of South Florida. In addition to being interviewed by CNN, he is a regular contributor offering travel advice and tips on NBC and FOX affiliate; and is often cited as an industry expert in travel trade publications.

    Register Now

    Entrepreneur Insider

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  • How to Start a Row House Franchise in 2022

    How to Start a Row House Franchise in 2022

    Row House is a network of premium boutique indoor rowing studios, delivering a low-impact, high-energy workout focused on generating team energy. Established in New York City in 2014, Row House was born from the idea that rowing is simply the most efficient, low-impact, high-energy, full-body workout for any fitness level.


    Row House

    The brand’s multiple workout routines are designed to unite, inspire and drive people to dig a little deeper. Though Row House only began franchising its rowing concept in 2017, there are already over 90 studios open across the globe and over 300 licensed locations. Row House is delivering on the increased consumer demand for sustainable, lower-impact workout options that reduce the risk of injury but still deliver an exciting, effective workout with a community-focused approach. With its widespread and devoted national following, Row House is leading the market, as evidenced by the astonishing amount of interest in establishing new units over the past three years.

    Now, you can become a Row House franchise owner and lead an indoor rowing facility in your community. Consumers are seeking more sustainable, lower-impact workout options that reduce the risk of injury but still deliver an effective workout. In an industry traditionally built on competition within a class, Row House is different. The brand isn’t changing the experience, they’re creating a new one — one that brings everyone together, rowing in the same rhythm, the same flow and with the same energy.

    Rowing is one of the best full-body workout options in fitness today.

    • Cardio health: Activating so many major muscle groups raises the heart rate and increases oxygen intake for an effective cardio workout.
    • Weight loss: Row House’s method of interval training boosts fat-burning progress by alternating the rowing intensity between high and low.
    • Strength: The required push and pull is fairly unique to other machines, and the setup means one of the benefits is strength training.
    • Low impact: Rowing is gentle on the joints but still gets the heart rate up, breaks a sweat and builds muscle without breaking the body down.
    • Increased endurance: Build endurance with short bursts on and off the rowing machine. Row House’s classes will help build cardiovascular performance.
    • Community: Row House is more than just a workout, it’s about people, connection, strength and community. This is a brand that doesn’t intimidate or alienate participants.

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    Backed by science and data, the benefits of rowing are unparalleled. Each workout produces maximum results by engaging over 86% of the body’s muscles (legs, core, arms, back), delivering the perfect balance of aerobic endurance and muscular strength all in one workout. Row House offers participants the opportunity to build strength, endurance and confidence with six different class types. Each class has a different focus and programming varies to help individuals progress throughout the week to avoid plateaus.

    Row House’s six different class types include the following.

    • Signature: Improve cardiovascular health, muscle tone, mobility and alignment with a popular blend of rowing and floor exercise.
    • Strength: Grab weights and feel the burn. Build strength through floor exercises to increase power on the rower.
    • Full row: This is cardio endurance at its finest. Keep the heart rate in the aerobic zone by rowing for the majority of the workout.
    • Restore: Work up a sweat in this active recovery workout that combines rowing, stretching and core work.
    • Intervals: Experience quick transitions between rowing and full-body floor exercises to maximize the anaerobic threshold.
    • Foundation: Participants can build the right foundation as they begin their Row House fitness journey with an emphasis on rowing stroke techniques.

    A rowing-based fitness program will burn calories, improve posture and strengthen the body from head to toe. Rowing has many benefits, and at Row House, there is a place for everyone, whether an accomplished athlete or a beginner.

    Row House has been named a Top New Franchise (2021 & 2022) and a Fastest Growing Franchise (2021) by Entrepreneur Magazine, as well as being listed in the prestigious Inc. 5000 rankings. Row House is also part of the Xponential Fitness family of brands, the curator of the best fitness and wellness brands across every vertical of boutique fitness. With more than 25 years of boutique fitness franchising experience within each brand, Xponential Fitness has the resources and network to ensure continued growth and support for its franchise partners.

    How much does a Row House franchise cost?

    To open a Row House franchise, here are the financial requirements, cash required and ongoing franchise fees associated with business ownership.

    Initial franchise fee: $60,000.

    Initial investment: $247,116 to $483,316.

    Net worth requirement: $500,000.

    Cash requirement: $100,000.

    Royalty fee: 7%.

    Ad royalty fee: 2%.

    Term of agreement: 10 years.

    Request Free Info

    Row House franchising doesn’t offer in-house financing for candidates but does maintain relationships with several third-party funding sources which offer financing to cover the franchise fee, startup costs, equipment, inventory, accounts receivable and payroll. Please review Item 7 of the 2022 Row House FDD for explanatory notes and additional details.

    Why should I own a Row House franchise?

    Row House is leading the industry in providing members with a workout that preserves the longevity of the body and achieves fitness goals. There are numerous benefits to consider in becoming a Row House franchise owner, including the following proof points.

    • First mover advantage: With a proven concept in one of the most competitive markets, Row House has extensive market potential. Be the first to bring Row House’s unique workout to your local market.
    • Investment: Prospective franchisees can enjoy a low-cost entry, a recurring revenue model, truly exceptional EBITDA margins and the confidence in a team with decades of experience in fitness franchising.
    • Executive model: Row House’s franchise model provides a completely scalable business opportunity, allowing you to determine your level of success. Thanks to support from the brand, franchisees can leverage development costs and existing national vendor relationships to launch their studio successfully.
    • Extensive support: Row House believes extensive training drives franchisee success. From lease negotiation to build out, recruitment to finance, sales and marketing to sustainable business, new owners are supported every step of the way.

    Comprehensive training and extensive, ongoing support are both pivotal for success as a Row House franchise owner. In addition to over 20 hours of classroom training instruction and additional on-the-job instruction, here are examples of the specific support you can expect from Row House.

    • Real estate: The brand’s expert team will guide you through the entire process, from site selection to lease execution, locating the ideal site for your Row House studio.
    • Finance: Row House’s finance team can assist in loan processing through the SBA and preferred financiers.
    • Site build support: Row House will guide you through the entire build-out process — from corporate-approved layout and general construction to interior design, onsite security and technology.
    • Sales: Franchisees can expect comprehensive and ongoing sales training, monthly calls and expert guidance — from pre-sale through grand opening and on to sustainability. New owners are introduced to the sales process, retail range, app and POS system, making it possible to drive sales right from the start.
    • Marketing: The minute that the lease agreement is signed, the marketing for a location begins — with personalized support to set up social media, marketing materials and all means of generating website traffic and memberships.
    • Recruitment: Row House knows the expertise of the coach is pivotal for the member’s rowing experience. That’s why franchisees receive assistance hiring only the most qualified coaches, general managers and sales associates.
    • Comprehensive training: The brand believes that extensive support and comprehensive training are pivotal for the success of a Row House franchise owner. New franchisees will attend a three-day training course at the brand’s corporate headquarters in Southern California, an invitation to the annual franchise convention and ongoing weekly support. The new owner’s staff will also undergo extensive sales training to ensure the team achieves the studio’s goals.

    Request more information about franchise opportunity with Row House by filling out this form and begin the discovery process for your very own franchise operation.

    Request Free Info

    Related: How Mistakes Helped This Business Leader Build a Successful Company

    Entrepreneur Staff

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  • Why More Women Should Become Franchisees

    Why More Women Should Become Franchisees

    Opinions expressed by Entrepreneur contributors are their own.

    We’ve heard the future is female, and when it comes to franchising we’re seeing that shift. According to Franchise Insights, women, especially Gen Z and millennials, outnumber men in seeking franchising information, and today a third of franchises are owned by women.

    In the 50 years the U.S. Census Bureau has tracked women-owned businesses, they have grown by a staggering 3,150%, with women owning more than 13 million businesses today. When I first got involved in franchising 30 years ago, I can’t remember a woman-owned franchise brand, and there were very few women franchisees. Today there are examples of both, and their success is helping drive more and more women to make franchising a career.

    Related: Here Are the 7 Traits You Need to Get Rich in the Restaurant Industry

    Why franchising appeals to women

    Many of the reasons franchising appeals to women are the same as the reasons it attracts men. Franchising gives women the opportunity to be their own boss while having the support and systems offered by a franchisor.

    For women, franchising is also a way to reduce the gender pay gap that still exists in corporate America. In 2022 working women earn 82 cents for every $1 working men make (the gap is wider for minority women). Women franchisees earn 90 cents for every dollar their male counterparts make.

    Franchising often affords women a better work/life balance than traditional careers offer. Women can select a franchise that has hours that coincide with school hours, for example, or brands that have no weekend hours. With a general manager onsite, owners are also free to set hours that work for them. The franchising model gives women much more flexibility over their schedules than working as an employee for another company.

    “So many women left the workforce during Covid and are looking for something that offers the flexibility of franchising,” Pamela Fazio, a 20-year franchise veteran and current CEO of Duff’s CakeMix, says. “I expect more women to turn to franchising. It lets them be successful while also having the time to focus on themselves and their families.”

    Related: Now Is a Better Time Than Ever to Land This Type of Financing for Your Franchise

    Successful women in franchising

    Today examples of women franchisors and franchisees are everywhere in the industry, and their success is fueling a new generation of women to join the franchise ranks.

    Back in 1997, friends Dena Tripp and Debbie Shwetz started operating Nothing Bundt Cakes out of their Las Vegas kitchens. Today the popular dessert franchise has more than 430 locations in the United States and Canada. Shwetz exited the company when a private equity firm invested in 2016, but Tripp stayed on until this year when the company sold.

    Stacy Brown created a great chicken salad recipe then figured out how to make new versions of the classic recipe, and in 2008 the Chicken Salad Chick was born. Today the franchise has more than 285 locations. Brown is passionate about helping other women achieve their entrepreneurial dreams. She helps mentor and train employees, helps women develop business ideas and created the Chicken Salad Chick Incubator.

    The success of these women and others like them is inspiring a new generation of franchisors. In 2022 Christine Cutlip, founder of Savannah Seafood Shack, started her franchise journey, and she now has one of the strongest unit economics in the restaurant industry. In 2019 Ghazal Quershi began franchising her Idea Lab Kids International, and today it has 93 locations. At just 29 years old Toastique founder Brianna Keefe has four corporate locations and 37 franchises of her health-conscious cafe either open or slated to open by 2023.

    Although many women entrepreneurs are expanding their businesses through franchising, even more are attracted to becoming franchisees. According to a 2020 Women in Franchising report, from 2018 to 2020 women comprised 41% of new franchisees.

    Related: Are You an Ideal Franchisee? Here’s How to Find Out.

    Industry support

    One of the most difficult hurdles for franchisees to cross is finding access to financing. There’s a gender financing gap just like there’s a gender pay gap. Entrepreneurs who are men are 20% more likely than women owners to get approved for a business loan.

    To encourage more women in franchising, several programs like the SBA Loans for Disadvantaged Business Owners and the Office of Women’s Business Ownership can help women obtain capital. There are also national grant and loan programs to help women obtain financing, and more people today are using crowdfunding platforms to help fund their franchises.

    Lauren Fernandez, who was a Chicken Salad Chick franchisee and general counsel for FOCUS Brands, is now helping other women succeed in franchising with Full Course, a company that offers education, counsel and investment for women looking to grow a business.

    Since 1996 The International Franchise Association has helped propel women into franchising with its Women’s Franchising Committee, and in 2002 launched the Women’s Franchise Network, which helps women learn from other women in the industry. With restaurants being a huge part of the franchise industry, the National Restaurant Association helps women through its Multicultural Foodservice & Hospitality Alliance.

    With the resources available to women today, coupled with a path paved by the first generation of successful women franchisors and franchisees, the future for women in franchising is bright.

    Disclosure: I am the CEO of Fransmart, a franchising group partnered with Duff’s CakeMix and Savannah Seafood Shack.

    Dan Rowe

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  • How to Start a Rosati’s Pizza Franchise

    How to Start a Rosati’s Pizza Franchise

    With five generations of experience, Rosati’s Pizza knows its way around the kitchen, as well as the pizza franchising industry. Pizza brings people together because that’s what the brand is all about — the communal bonds formed when dining with one another.


    Rosati’s Pizza

    When franchisees invest and buy into the Rosati’s Pizza franchise, they’re investing in family, the chance to build something better, and most importantly, they’re investing in themselves. Rosati’s knows what it’s like to invest a family’s future in something worthwhile, and the brand doesn’t take that investment lightly. Rosati’s has built its successful franchise opportunity on two things — common sense and doing the right thing. That’s always a smart investment.

    Rosati’s Pizza is a high-margin, high-potential business opportunity. Franchise owners provide the work ethic, Rosati’s provides award-winning pizza and world-class resources. Rosati’s core menu has always been about keeping it simple. The high quality chicago style pizza that customers have come to love and enjoy in Chicago is the same as the tasty pizza that the brand offers in all of its locations.

    Need further convincing that Rosati’s Pizza is a franchise worth your time to consider? Here are just a few of the brand’s value propositionsthat each franchise owner benefits from.

    • Since 1964, the franchise has grown from a single carryout and delivery pizzeria in Mount Prospect, IL into a national franchise system now offering a sports pub concept — that’s over 50 years of experience.
    • Rosati’s has a proven system in place to help franchisees succeed as small business owners, including two-to-four weeks of onsite operations and marketing training.
    • Vendor relationships are established.
    • Resources for financing options are available.
    • Rosati’s provides ongoing support to all of its franchise owners.
    • Rosati’s has been ranked in Entrepreneur Magazine’s Franchise 500 list for the past decade, earning the 163rd overall spot in 2022. The company is also in the Pizza Hall of Fame.
    • Rosati’s is part of the International Franchise Association (IFA), Small Business Association (SBA), the National Restaurant Association (NRA), The Pizza Industry Council, the Social Council for NRA and VetFran.
    • Rosati’s offers 25% off the initial franchise fee for veterans.
    • Rosati’s branded products are created from family recipes that have been handed down through five generations. Rosati’s means quality, with recipes that include nearly 100 proprietary ingredients.
    • Rosati’s knows loyalty. When a brand starts a business in its kitchen and nurtures it into a national franchise, that’s execution with drive — just like the employee who works their way up from delivery driver to store owner. That’s passion. Over 55 years down the road and it’s still run by members of the original Rosati family — that’s dependability.

    Related: Nine Notable Pizza Entrepreneurs

    How much does a Rosati’s Pizza franchise cost?

    To open a Rosati’s Pizza franchise, here are the financial requirements, cash required and ongoing franchise fees associated with business ownership.

    Initial franchise fee: $30,000.

    Initial investment: $142,200 to $1,244,000.

    Net worth requirement: $250,000.

    Cash requirement: $80,000.

    Veteran incentives: 25% off the franchise fee.

    Royalty fee: 5%.

    Ad royalty fee: $350/mo.

    Term of agreement: 20 years.

    Request Free Info

    Rosati’s Pizza does not offer in-house financing, however, the brand does maintain relationships with several third-party funding sources which offer financing to cover the franchise fee, startup costs, equipment, inventory, accounts receivable and payroll.

    Just like pizza, the ingredients for a successful business partnership have to be just right. 50 years of experience has given the brand a pretty good idea for that recipe. Rosati’s Pizza is actively seeking highly qualified individuals to become franchisees. Prior business, sales, management or marketing experience, coupled with personal financial qualifications, motivation and a track record of success, are important factors in Rosati’s evaluation process. This franchisor is looking for independent and tenacious people with a passion for food — especially pizza.

    Why you should consider partnering with Rosati’s Pizza franchising

    Not sure what kind of business opportunity to own and operate? Much like various pizza toppings, Rosati’s offers franchise owners several options. Franchisees can run a dine-in pizza pub, as well as a carry-out and delivery place. When franchisees join the Rosati’s Pizza franchise family, they quickly learn that the brand has a reputation for using quality ingredients and providing unparalleled service.

    The retail pizza market has grown to an incredible $40 billion industry, accounting for nearly 10% of the total food service sales in the United States today. Multiple surveys indicate that 90% of the American population enjoys eating pizza. Why? Because pizza is fresh, convenient, reasonably priced and simply tastes good.

    Statistics reveal that consumers want fresh ingredients, delicious toppings, flavorful cheese, rich wholesome sauce and a crust with great taste and texture. When today’s consumer wants a delicious home-cooked meal, Rosati’s delivers on it. Giving people what they want is the primary reason that there are more than 175 Rosati’s locations throughout the country.

    Interested in owning your own franchise location? With Rosati’s Pizza, franchisees are family. Rosati’s is committed to making sure its family is taken care of, every day. Request more information about franchising with Rosati’s Pizza by filling out this form and begin the discovery process for your very own franchise operation.

    Request Free Info

    Related: Jay-Z Invests Big Money in Robot Pizza Truck Stellar Pizza

    Entrepreneur Staff

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