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Tag: Franchise

  • 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

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    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’

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    Entrepreneur Staff

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  • 7 Lead Generation Factors to Consider for Your Franchise | Entrepreneur

    7 Lead Generation Factors to Consider for Your Franchise | Entrepreneur

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    The following excerpt is from franchise expert Mark Siebert’s book Franchise Your Business. Buy it now.

    While having a strong message is important, it is meaningless unless you have an audience to whom you can deliver the message. Franchise sales rarely happen by accident. And while an occasional serious prospect may just wander in your door, most franchises are sold because a franchisor executes a marketing plan designed to attract that prospect.

    Our affiliate, Franchise Dynamics, sells literally hundreds of franchises a year, year after year, for concepts that have included restaurants (Newk’s Eatery), weight loss (Medifast), shelving retrofits (ShelfGenie), home renovation (101 Mobility) and even indoor trampoline parks (Sky Zone).

    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.

    In each case, the success of their sales efforts was directly related to their marketing plans. In selling some 1,500 franchises over the past few years, Franchise Dynamics had to process more than 100,000 franchise leads—and those leads did not just happen by accident.

    In order to give you a baseline for the best chance of success, keep these seven factors in lead generation in mind.

    1. Budget

    The first step in creating your franchise marketing plan involves setting a budget. Defining an appropriate budget is almost always a balancing act between goals and available resources.

    When I ask my clients about goals, however, I find that many business owners simply haven’t given the subject much thought. They often respond with vague platitudes about “aggressive growth without sacrificing quality” or suggest they would like to open a stated number of units without having considered all the factors that go into making that decision.

    The best way to develop your growth strategy is to set a long-term goal (exit, business value, cash flow, etc.) and time frame (five years), translate that goal into a hypothetical business that can achieve it (100 franchises paying $30,000 a year in royalties, for example) and work backward to a more specific short-term objective (selling 12 franchises in the first year).

    After creating growth goals using these kinds of measures, the franchise marketing budget can be developed based on industry averages. The annual franchise marketing budget can be arrived at simply by multiplying the desired number of franchises to be sold by the assumed marketing cost per franchise.

    2. Geographic markets for expansion

    One mistake we see again and again involves new franchisors starting their process with a national franchise rollout. Often, their initial expansion is serendipitous: they get a hot lead from Timbuktu and decide they should pursue it. Frankly, it is easy to spot a franchisor that has not benefited from professional advice just by looking at their location strategy. If they have locations all over the map, chances are they are being opportunistic and unfocused in their marketing efforts.

    Many of these franchisors suffer from the misconception that there are a limited number of franchisees in any given market and if they do not take advantage of every opportunity, it will never happen again. Unfortunately, that strategy is very likely to come back to haunt them.

    The truth is that franchisee prospects are not in short supply. When you are ready to go into a new market, they will be there — as long as you know how to find them. If a franchisor adopts a reactive approach to isolated candidate leads in remote markets, it’s also unlikely that they’re pursuing the best candidates in that market. Focused lead generation within targeted markets will generate more leads that the franchisor can qualify to determine the candidates who will best represent its brand.

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

    3. Mix and distribution of corporate locations

    Another factor you must consider will be your mix of franchise to corporate locations. For many new franchisors, the best course of action is to put the further development of corporate locations on hold as they get established as a franchisor. This approach allows you to learn the business of franchising and concentrate all your resources and efforts on this new business. Of course, if your short-term plans involve both franchise and corporate expansion, you should account for that in your marketing planning—especially when it comes to your location strategy.

    There are several location strategies you can employ if you go this route:

    • The Home-Sweet-Home Strategy. One would be to reserve markets that are “close to home” for corporate locations while franchising in more distant markets.
    • The Spiking Strategy. A spiking strategy involves opening locations in distant markets that will serve as a showcase for future franchise efforts and a hub for support.
    • The “Cherry-Picking” Strategy. If you were to opt for a cherry-picking strategy, you would reserve either the prime markets or the prime locations within those markets for yourself.
    • The “Reverse Cherry-Picking” Strategy. While we have not seen this often, the reverse cherry-picking strategy is employed when a franchisor is asked to take subprime locations as part of a package that includes prime locations.

    4. Narrowing your market

    One of the most effective ways to improve your franchise marketing is to narrow your prospect profile. If your target franchise audience comprises the entire universe of franchise buyers, you will be forced to use a very general message to attract them. More importantly, you will likely need to advertise in general business or franchise publications, where you will be competing with many additional franchise opportunities. The franchisor should actively work to narrow the buyer profile as much as possible. While intuition alone can provide you with a starting point, the best marketers supplement their intuition with primary research.

    Related: How to Determine Your Franchise’s KPIs and Achieve Profitability

    5. It’s a numbers game

    While it is almost a cliché, it is worth restating here. Sales, and in this case, franchise sales, is a numbers game. The more money you spend on franchise marketing, the more franchises you will sell. Franchise marketing dollars generate leads. A percentage of those leads fill out applications. A percentage of those will come in for meetings. And a percentage of those meetings will turn into franchise sales.

    6. Timing

    In developing your franchise marketing plan, you should be aware that timing will play a major role. For franchisors that do not have major issues with seasonality, the franchise marketing budget can be optimized by spending advertising dollars more aggressively at certain times of the year.

    Generally speaking, franchise buyers go into hibernation in November and December. At that time of year, most of us are preoccupied with the holidays and are less concerned with making life-altering decisions. Likewise, there is a period of doldrums in the heart of summer, when prospective franchisees are more focused on family time and vacations than they are on buying a business.

    The more complicated situation, of course, occurs when you are selling a franchise that is highly seasonal. Some businesses (lawn care, tax preparation, mall-based retail, Christmas lighting, driveway refinishing and mosquito abatement, to name just a few) have their own busy seasons. The seasonal franchisor is advised to account for this timing when developing its franchise marketing plan.

    Related: Why Marketing Your Franchise Matters

    7. The best plans are a mix of strategies and metrics

    Marketing planning is, more than anything, the art of allocating scarce resources effectively across unlimited uses for those resources. And as you begin your efforts at franchise lead generation, chances are you will be confronted with a lot of conflicting information.

    Public relations professionals will tout public relations. Print salespeople will tout their publications. Internet professionals will talk about the sheer volume of leads they can drive. Brokers will rightly tell you about how well-qualified their leads will be. As the saying goes, “When your only tool is a hammer, every problem looks like a nail.”

    What’s more, all of these folks will be right. And, to the extent that they peddle the exclusive use of their particular lead-generation vehicle, all of them will be wrong.

    The best marketing plans take into account several factors when allocating media dollars, including:

    • Historical performance of similar franchise concepts
    • Historical performance of franchises of a similar investment size
    • Historical performance of your franchise marketing efforts
    • The profile of the franchisee
    • The message
    • The size of the investment
    • The value proposition of the franchise
    • The complexity of the franchise (e.g., the need for more of a story)
    • The franchisor’s desired speed of growth
    • The franchisor’s budget
    • Seasonality
    • Franchisor growth goals

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

    Franchise Your Business

    Ready to grow your business? Franchising may be for you.

    Expert franchise consultant Mark Siebert delivers the ultimate how-to guide to employing the greatest growth strategy in franchising. Siebert tells you what to expect, how to move forward and avoid costly mistakes as he imparts decades of experience, insights and practical advice to help grow your business exponentially through franchising.

    Learn how to:

    • Evaluate your existing businesses for franchisability.
    • Identify the advantages and disadvantages of franchising.
    • Develop a business plan for growth on steroids.
    • Evaluate legal risk, obtain necessary documents and protect intellectual property.
    • Create marketing plans, build lead generation and branding for a new franchise.
    • Cultivate the franchisee-franchisor relationship.

    Evaluate if this is the right move for you and discover how to get started with the help of Franchise Your Business.

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    Entrepreneur Staff

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  • Why Your Favorite Hobby Shouldn’t Be Your Next Business Idea | Entrepreneur

    Why Your Favorite Hobby Shouldn’t Be Your Next Business Idea | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    If you’re interested in franchise or business ownership and you’re in the beginning stages of researching what kind of business matches your entrepreneurial goals, the options available can be overwhelming. After all, 20% of new businesses fail in the first two years of being open, 45% during the first five years and 65% during the first 10 years, according to the U.S. Bureau of Labor Statistics. Additionally, franchises exist in nearly every service industry, and there are more than 3,000 registered franchise brands across the United States.

    Because franchise and business ownership can run the gamut in terms of products and services sold, it isn’t uncommon for candidates to consider hobbies that already interest them when producing ideas for a future company. However, it’s important to understand that sometimes, hobbies and businesses don’t mix well.

    For example, let’s consider a hypothetical business owner candidate. Let’s call him “Phil.” One of Phil’s favorite pastimes is to hit the green for a round of golf. Since golf is already a longstanding interest, Phil is inclined to consider a franchise that sells a variety of golfing products: clubs, balls, tees, clothing, etc. However, before long, Phil’s working hours are consumed with all things golf, and his work days are filled with balance sheets, sales reports and expenses for golf products. Suddenly, escaping to play a few holes on the weekend isn’t the break away from work it once was.

    When a favorite hobby becomes synonymous with work, you find yourself in a lose-lose situation. To avoid this overlap, examine the following three tips below for considering possible options.

    Related: Mark Cuban Says “Follow Your Passion” Is the Worst Career Advice You Can Get. Here’s Why.

    1. Separate your personal hobbies from your business

    Rarely can a person spend their leisure time and work time focused on the same thing. It’s basic Business 101 to diversify your investments, and a business is a large investment of your time, energy and money — so why would you keep all your eggs in one basket? Best practice: Separate your personal hobbies from your business.

    Like Phil, you probably have a hobby or interest that helps you unwind after a long week. However, for a business to maintain longevity, sustainability is the name of the game. So take a moment to consider your hobbies, and rather than focusing on the hobby itself, take a look at the services that support that hobby.

    If we take our friend Phil, rather than a golf store, maybe he selects a franchise of dry cleaning stores, hair salons or group fitness studios that service a community with fellow golf lovers. Another option might be a B2B franchise in which Phil doesn’t perform the services himself but is client-facing and responsible for relationship-building by taking prospective clients out to the green for an afternoon. Either of these options supports his entrepreneurial goals while maintaining his favorite pastime.

    2. Be passionate about owning your business, not passionate about the widget

    Being a business owner means having more control over your life in so many ways. The top motivators for an individual to become a business owner are autonomy, more flexibility, more purpose/meaning and financial security.

    These benefits of business ownership and their ability to support yourself, your family or other financial and non-financial obligations outweigh the appeal of selling a specific product or service.

    Building on the previous tip, a way to avoid misalignment between the product or service you are selling and the overall vision of the business is to focus on bird’s eye metrics of success. For example, owning a chain of cleaning stores might not be your dinner party small talk highlight that “golfing” might be, but who’s hosting the dinner?

    Prioritize long-term goals over what sounds cool to sell — a.k.a. be passionate about owning a business and all the benefits that come from that, rather than being passionate about a specific widget you sell.

    Related: Why You Should Stop Trying to ‘Find Your Passion’

    3. Your business should match a lasting market

    A common misconception about franchises in particular is that they are all centered around the fast-food industry. This makes sense: Everyone eats multiple times per day, hence a stable and recurring consumer base. However, any company that can benefit from proper branding, repeatable processes and continuing product or service evolvement is a candidate to be franchised. While it’s true that there are a number of successful restaurant-style franchises, there are so many other options that fall into the “service-based” franchise bucket.

    In today’s business world, particularly with a younger generation of consumers, experiences are valued over material items. To support these experiences, a number of non-flashy but necessary service industry tasks are essential. What is a service that you use on a recurring basis that is not centered around food? Clean clothes perhaps? Monthly haircuts? Consistent trips to the gym? Phil would agree.

    If there is a recurring customer need, then there is likely a franchise that is seeking to capitalize on that customer need.

    At the end of the day, hobbies are a great place to start for brainstorming purposes, but think outside the box and ask yourself: What tangential services support your hobby or other hobbies that are similar in nature? Before long, you’ll have a list of services, and, to bury the lead, I guarantee there will be multiple franchises for you to consider associated with those services.

    So remember these three key takeaways when considering business ownership: First, hobbies and business are best kept separate. Second, owning a successful business is the goal (not selling a specific product/service). Third, set yourself up for success by selecting a business that has a strong base of perpetually recurring customers.

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    David Busker

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  • Who Bought Subway? Chain Sells for Billions to Roark Capital | Entrepreneur

    Who Bought Subway? Chain Sells for Billions to Roark Capital | Entrepreneur

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    After nearly six decades as a family-owned business, Subway has been sold to private equity firm Roark Capital in a groundbreaking deal – but it’s not the only sandwich joint in the firm’s portfolio.

    The sale puts Subway under the same umbrella as rival Jimmy John’s, which is controlled by Inspire Brands also owned by Roark Capital.

    The sandwich giant announced the news in a press release on Thursday, and although terms of the deal weren’t disclosed, the Wall Street Journal previously reported that Roark offered Subway $9.6 billion after it was listed for sale in February for $10 billion.

    RELATED: Nearly 10,000 People Agree to Make a Legally Binding, Lifetime Commitment for Free Subway Sandwiches

    Photo by Xavi Lopez/SOPA Images/LightRocket via Getty Images | Pedestrians walking past a Subway store.

    The deal with Roark is one of the biggest acquisitions in the fast food industry, per CNN. The company has $37 billion in assets and a massive food portfolio with investments in Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carvel, Sonic, and more.

    The largest was Inspire Brands’ $11.3 billion deal to purchase Dunkin’ in October 2020.

    Subway’s sale comes as the brand tries to revamp with store renovations and freshly sliced meats.

    RELATED: This Is Where Subway’s Co-Founder Left Half of His Fortune

    The acquisition is a new beginning for the sandwich shop, which has been owned by the DeLuca and Buck families since Fred DeLuca and Dr. Peter Buck opened the first Subway in Bridgeport, Connecticut, in 1965, according to the company’s website.

    Today, Subway is one of the world’s largest restaurant brands, with 37,000 locations across more than 100 countries.

    With hopes of continuing to expand, “this transaction reflects Subway’s long-term growth potential and the substantial value of our brand and our franchisees around the world,” Subway CEO John Chidsey explained in the press release.

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    Sam Silverman

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  • Boost Your Franchise With This Innovative Marketing Solution | Entrepreneur

    Boost Your Franchise With This Innovative Marketing Solution | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Franchising has become increasingly popular in 2023. There are a number of positive predictions, according to the 2023 Franchising Outlook Study, and forecasts show it will continue to grow. In fact, it will add more than a quarter-million jobs and another 15,000 new independent businesses this year. Franchising is an amazing business model, regardless of the product or service, from The Lube Center (for cars) to Diaper Services to Diamond Brokers, that can be reliably exercised by trained staff while minimizing the need for innovation.

    Ultimately, it creates a template for a successful business model, delivering a replicated product that consumers understand and rely on for a known quality, a known experience and a known price — without concern for the location, time of day or staff.

    But the success of a franchise lies in attracting the “best of the best” franchise owners and operators who represent the most compelling characteristics of our American spirit: motivated entrepreneurs willing to invest and commit to creating their own American dream as a business owner. A franchise must compete for these valuable franchisees by demonstrating their franchise provides a clear path to success with support and tools, making it an ideal investment choice.

    This article will explore a new franchise value that is obtainable, demonstrable and turnkey, that will not only influence the potential operator but will catapult existing franchise operations to new levels of success. This value is applicable to all forms of franchises in any industry — literally, any franchise that needs or would benefit from building loyal customers — but for the sake of providing examples, this will focus on the food service industry.

    Related: 5 Ways to Freshen Up Your Franchise Marketing in 2023

    Gain a competitive edge with a successful marketing solution

    Franchisees desire success just like you do, and beyond furniture and fittings, or supply chain operational challenges, it’s important to support all locations with critical marketing and sales support that sets them up for profitability from the start.

    However, the work doesn’t end once the franchisee has a successful launch. Across the entire franchise, from locations in operation for years to the newly opened store, consistent, reliable and valuable guest engagement and direct marketing are as important as the decision to standardize fries delivered directly from Idaho.

    Embracing a new, innovative approach to engaging the guest and leveraging the success of the individual locations for the success of the franchise will position both the franchisee as well as the franchisor to new levels of growth.

    So, to gain a competitive edge and to attract not only potential franchisees, but investors, integrating an ongoing and successful marketing solution into your franchise operations is a “must.”

    The role of integrated WiFi marketing in a franchise

    Effective marketing for a franchise requires the right technology to maximize return on investment. Studies show that 96% of customers prefer a business that offers free on-site WiFi (Cisco), and an overwhelming majority of customers are happy receiving promotions and messaging while connected to the WiFi. However, only a small percentage of franchises have turned their WiFi presence into a successful marketing solution, which can be accomplished through integrated WiFi marketing technology.

    This technology is actually a set of technologies that include WiFi, text, social media and digital displays integrated to execute a marketing campaign. And it provides a single operational point to oversee franchise-wide marketing campaigns, while also empowering operators to leverage those same technologies for localized campaigns.

    With integrated WiFi marketing, customers can access the free WiFi by providing their phone number or by logging in with Facebook, Google or email, and this builds a simple, consistent and reliable communication link directly to the device in the customer’s hand. This link allows the franchise to recognize the device and record their visits and general behaviors, such as the days they come in, times of day, duration of the visit, typical frequency and more. With this new data, the franchise is now able to hyper-target customers with messaging that resonates uniquely with their interests.

    With the customer data, personalized SMS messages with specific offers can be sent, and the franchise can track when a customer enters a new location and send them a message such as, “We’d love to hear of what you think of our Fresno location (link to survey), and for your time, we’ll upgrade your choice of combo meals.” Or it could even be something more fun like a link to the social presence of that specific store’s events page and asking for a “check-in.”

    Related: Is Your Customer Communication Actually Effective? Here’s How to Avoid the Limitations of Common Tactics

    Tying It all together for optimal success

    Since the goal of this article is to demonstrate a way a franchisor can provide value to attract top-performing franchisees, let’s look at a fully integrated example of WiFi marketing that ties in a WiFi greeting with social media, digital displays, text messaging and use of a QR code — all while customer data is being filtered and the messaging targeted — for revenue-generating results:

    1. A customer who has visited before and provided their information to access the free WiFi walks into the restaurant location and the device is recognized. The customer immediately receives a greeting via text message: “Thanks for visiting us again. How do $5 margaritas and $2 tacos sound with prizes and entertainment? We’re having a 4th of July fiesta. Learn more here (link to event on Facebook).”

    2. The customer goes to the Facebook event with a single click and (hopefully) “likes” the post and RSVPs to the event. While there, the customer learns that those who join the loyalty program get a free pint glass at the event and can reserve EXCLUSIVE VIP seating in advance — an offer only made to WiFi loyalty customers.

    3. The event and loyalty program benefits are further promoted on the digital display signage that has the following message: Get VIP status at our annual 4th of July fiesta. Sign up for our loyalty program by texting FIESTA to XXXX.” The digital display signage also has a QR code that can be scanned for more information on the 4th of July fiesta and a call-to-action to RSVP.

    4. The customer has now received messaging that accomplishes several important steps. First, the customer has been enticed to attend the 4th of July event. Second, the customer has been driven to the restaurant’s social media posts where they can engage, which in turn, ensures Facebook’s algorithm shows the posts more prominently. Third, the customer has been “encouraged” to join the loyalty program which, in turn, motivates the customer to become not just a repeat customer, but a loyal customer. And fourth, the digital display messaging and QR code further reinforce event attendance, loyalty program participation and social media engagement.

    Combined, this integrated approach to marketing the restaurant’s event and loyalty program translates to the customer attending and spending money at an event they may otherwise have not paid attention to or known about, and most importantly, the customer has transitioned from being a one-time customer to a loyal, revenue-generating customer.

    For the franchise, this is valuable because the solution is centralized, and all the marketing elements can be uniform, distributed in a timely manner and not be reliant on the individual franchise locations for compliance with the program. Additionally, since it can be automated, replicated and distributed across the entire franchise with the click of a button, the underlying marketing campaigns are synchronized and executed for maximum results.

    While for the franchisee, the campaigns are no longer a burden and allow the franchisee to focus on their operations, staffing and profitability driven by powerful marketing that drives repeat business and event attendance. Also, the franchise and franchisee both are able to see the tangible, black-and-white results of the effectiveness of the complete marketing campaign in real time.

    Related: How Franchises Can Utilize Technology to Change Consumer Behavior

    Effective marketing is essential to growing a franchise business, and the incorporation of integrated WiFi marketing technology can maximize ROI and help achieve business goals — while providing the franchise with a unique and revolutionary discriminator in the competition for the most desirable franchise operators.

    By offering Integrated WiFi marketing technology as part of franchise operations, franchisees can capture customer data, send targeted SMS messages, leverage social media, utilize digital displays and access real-time reports across the entire franchise. Overall, providing this technology can increase the franchise’s overall brand image, boost franchise success and contribute to overall brand growth.

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    Stephen Gould

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  • How Franchises Thrive in Diverse Markets | Entrepreneur

    How Franchises Thrive in Diverse Markets | Entrepreneur

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

    I have been fortunate enough to be able to travel the world extensively. I have been to every state in the U.S., almost every province in Canada and dozens of other countries.

    When I travel abroad, one way to judge how “Western” an economy is involves looking at how many international franchises you see on the street. When I tell people I am a franchise consultant, they often lament how these companies rob some countries of their culture. And while I love to immerse myself in the local culture of any country I visit, I never feel any regret at the global success of franchising because successful franchises can adapt and deliver their products and services across a wide range of customers.

    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.

    International franchises can (and should) adapt to their local customers

    The reason franchises thrive in these cultures is that they do a better job of meeting their customers’ needs than the businesses they supplanted. They bought their products more efficiently and passed those savings along. They experimented with different products to find out which ones the consumer liked best. And, most of all, they provided the customer with a consistent brand experience from one market to the next. They delivered on their brand’s promise. The systems they developed and adapted to the local market led to their success.

    McDonald’s is an international example of adaptability

    One of the things I enjoy when traveling abroad is visiting McDonald’s to see how they have adapted to the market. When visiting McDonald’s in other countries, the ingredients used in their products may be slightly different from market to market. Beef, for example, will be locally sourced, and the diet of the cows (grass vs. grain-fed) influences things like marbling and flavor. The same can be said for McDonald’s potatoes, where different local growing conditions will produce a slightly different potato (or may even require a different type of potato altogether)—just like growing conditions can affect the grapes that are used for making wine.

    Related: Why Marketing Your Franchise Matters

    Some of the things you may find at McDonald’s around the world that you likely will not find in the States include:

    • Australia—Gourmet Angus Truffle & Cheese
    • Brazil—Pão de Queijo (cheese bread)
    • Canada—Poutine; McLobster (lobster roll)
    • Chile—Guacamole 2 Carnes (double beef with guacamole); Empanadas Con Queso (empanadas with cheese)
    • China—Taro Pie; Mashed Potato Burger (burger topped with bacon and mashed potatoes); Bacon, Macaroni, and Cheese Toastie; Black and White Burgers (twin burgers with white and black buns)
    • Costa Rica—McPinto Deluxe (breakfast meal with gallo pinto, a traditional beans and rice dish)
    • Egypt—McFalafel (vegan falafel wrap)
    • Finland—Chili Cheese Tops (fried dough stuffed with chilies and cheese)
    • France—Macarons
    • Germany—McNürnburger (made with bratwurst); Beer
    • Greece—Greek Mac (burger in pita bread)
    • Hong Kong—Rice Fantastic (burger with rice patties instead of buns)
    • India—McCurry Pan; BigSpicy Paneer Wrap; Maharaja Mac (chicken burger); McAloo Tikki (veggie burger)
    • Italy—Spinach and Parmesan Nuggets; Sweety Con Nutella
    • Japan—Ebi Filet-O Shrimp Burger; Melon McFloat; McChoco Potato (fries with chocolate sauce); Shaka Shaka Chicken (fried chicken patty with a spice packet); Idaho Burger (burger with bacon and a hash brown patty); Gracoro Burger (macaroni patty, shrimp, and white sauce)
    • Korea—Shrimp Beef Burger (beef patty plus shrimp patty)
    • Lithuania—Aštrus surio gabaleliai (fried spicy cheese with Chapala hot peppers in a crispy crust)
    • Malaysia—Prosperity Burger (long beef or chicken patty with a black pepper sauce); Bubur Ayam McD (a local rice por- ridge)
    • Mexico—McMolletes (local version of the McMuffin, with refried beans and pico de gallo)
    • Middle East—McArabia (grilled chicken in pita bread)
    • Netherlands—McKroket (fried beef and cheese burger)
    • Norway—McLaks (salmon burger)
    • Philippines—Chicken McDo With McSpaghetti (fried chicken leg with spaghetti and meat sauce)
    • Poland—Cordon Bleu Burger (beef patty, chicken patty, and bacon)
    • Singapore—Chicken SingaPorridge (congee with fried chicken strips)
    • Spain—Gazpacho
    • Sweden—McPlant Burger (McDonald’s is testing its first plant-based burger here)
    • Turkey—McTurco (kebab meat in a pita)
    • United Kingdom—Bacon Roll; Mozzarella Dippers
    • Uruguay—Pancake Helado (pancake stuffed with dulce de leche and topped with vanilla ice cream)
    • Venezuela—Empanadas
    • And the list goes on.

    Even within the United States, there are differences in regional offerings:

    • Alaska features the McKinley Mac, an even Bigger Mac with two quarter-pound beef patties.
    • In some southern states, you can get biscuits and gravy.
    • The McLobster, mentioned above, is available in New England in the summer.
    • Hawaii features the Peach Mango Pie and also offers Spam for those who want to partake at breakfast.
    • And bratwurst has been offered in some locations in Wisconsin.

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

    The brand is not the product

    And while the McDonald’s case study holds some valuable lessons for those looking to adapt their concepts to foreign markets, there is perhaps a much more profound lesson underlying these product offerings: The brand is not the product.

    No one ever questions the consistency of the brand because McDonald’s takes such care in selecting suppliers and preparing their products. But more important, McDonald’s knows that its brand is more than its food. McDonald’s, which is known for its hamburgers, does not sell beef (or pork, for that matter) in its 350 locations in India (even though some Indian states allow it), where about 50 percent of the menu is vegetarian. Yet the McDonald’s brand remains one of the strongest in the world (and in India) despite these product line differences.

    What exactly is the brand and the brand promise?

    Over the years, I have heard stories of Ray Kroc’s visits to his franchisees. He would often start by patrolling the parking lot, picking up each piece of litter and unceremoniously piling it on the counter while he waited for the franchisee to appear for his inevitable rebuke. His message: McDonald’s core values. were quality, service, cleanliness and value. And no franchisee had better forget it.

    Ultimately, it’s not the product, the design, or the name. The brand is the promise of a consistent experience from one Money Machine to the next. And you need to deliver on that promise if you want the continued business that will allow your machine to grow.

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

    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.

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    Entrepreneur Staff

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  • McDonald’s to Launch Spinoff Restaurant Chain Called CosMc’s | Entrepreneur

    McDonald’s to Launch Spinoff Restaurant Chain Called CosMc’s | Entrepreneur

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    McDonald’s Grimace Birthday Meal released in June went viral on social media and drove sales, and now the restaurant chain wants to capitalize on another beloved mascot from the past.

    McDonald’s executives said the company plans to launch a spinoff restaurant chain called CosMc’s; it will be based on the mascot called “CosMc,” an alien from outer space that was featured in advertisements in the late 1980s and early 1990s, CNBC reported.

    Related: McDonald’s Grimace Shake TikTok Taking Over Boosts Sales

    “CosMc’s is a small format concept with all the DNA of McDonald’s, but with its own unique personality,” McDonald’s CEO Chris Kempczinski said, per the outlet.

    CosMc’s will launch at a small number of sites in “a limited geography” in early 2024. Few details were shared on the second-quarter earnings call, but investors can expect to hear more in December.

    McDonald’s plans to invest up to $2.4 billion in capital expenditures this year, roughly half of which will go toward building 1,900 new restaurants around the world. The move will put pressure on its profits, Reuters reported in January.

    But Kempczinski said this quarter’s “theme was Grimace,” per CNBC — and it looks like the company hopes to ride that wave of mascot nostalgia into an even bigger success with CosMc.

    Related: 22 McDonald’s Facts That May Surprise You | Entrepreneur

    McDonald’s Corp is up nearly 12% year over year.

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    Amanda Breen

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  • From Goals to Growth: Exploring Expansion Strategies for Success | Entrepreneur

    From Goals to Growth: Exploring Expansion Strategies for Success | Entrepreneur

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

    Once you are ready to grow your business, your next decision will be to choose a format for that growth. You could add some corporate locations, add franchises or partner with a third party in some kind of equity arrangement.

    Whatever you decide, your business should be a vehicle through which you can meet your personal and financial goals—it does not have goals of its own. Therefore, in order to choose your growth strategy, you need to look back to your goals.

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

    It’s okay to be conflicted

    Your business may already provide you with the standard of living you have always aspired to. So if your goals are now to spend more time with your family, ask yourself if the time you will spend away from your family, coupled with the financial risk you will incur in expansion, are worth the effort of additional growth. It could, in fact, not be. If that is the case, you may want to focus on your existing business model so you can maintain and harvest its profits.

    A destination will help with your expansion

    If you do want to expand, determine your destination at some point in the future. If you have partners in the venture, have a heart-to-heart with them. Don’t focus on issues like valuation or what you think you can achieve.

    Instead, set a goal that reflects what you would like to get out of the business. Perhaps you would like to sell the business for X amount by Y date, or you would like to earn Z amount every year by working only ten months per year. Whatever the goal, be specific regarding the financial reward you are looking for and the time frame in which you hope to achieve it.

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

    Time to model it out

    The destination is set, but how will you get there? Now you need to develop a financial model to determine if you can achieve your goals through organic growth. To help with feasibility, consider the amount of capital you have to invest, the amount of risk you are willing to take on (in terms of debt financing or leases executed) and a conservative case for revenue and profitability.

    You might want to do some sensitivity analysis to see if you will still be able to meet those goals in a worst-case scenario. Assuming that you can meet your goals through corporate expansion, you could choose to end your analysis right here.

    Corporate expansion might not work in all scenarios

    While there are other reasons you might opt for franchising, joint venturing or a third-party infusion of capital (largely questions of risk reduction), most people will choose the corporate growth strategy. But if you do not have enough capital, you must look at other options—or alter your underlying assumptions. For example, you could:

    • Stretch out the timeline to have a longer runway to achieve your goal.
    • Alter your assumptions about risk—perhaps you could invest more of your own money or take on more leverage in the form of debt.
    • Reduce the scope of your goal to something that is more attainable, given your risk tolerance and your capital position.
    • Alter your assumptions about the underpinnings of your business model, although counting on best-case scenarios is risky.
    • Look at alternative sources of equity financing, like an outside partner—although you will then have to alter the scope of your goal to offset dilution.
    • Look at third-party distribution channels (such as franchising) to fund your growth with other people’s money.

    If corporate growth does not achieve your goal, do a second round of financial modeling from the standpoint of some of your other expansion strategies. Those might include bringing in equity, doing joint ventures at the unit level, licensing the intellectual property, manufacturing and selling products or (my personal preference) franchising.

    Related: Tips and Strategies for Using the Balance Sheet as Your Franchise Scorecard

    Franchising with a third-party

    You should never “decide to franchise.” The reason I tell people not to decide to franchise is because franchising is an emotionally charged word for many. Whether they are deciding to franchise or to avoid franchising, it is often because the word has certain specific connotations for them. So in making a decision on a third-party channel, start by asking three questions about the nature of your contractual relationship with your third party.

    • Will they use your name?
    • Will they use your systems?
    • Will you be compensated for the use of your name and systems?

    Be confident in your decision

    Once you have made your decisions, hold them up to the light of day, show them to an attorney (or a consultant) and determine what you have created. If it is a franchise, that’s great. If the ideal structure for your business is something else, then that’s great, too. Make the best decision for your business, and then let the lawyers and consultants sort out the paperwork.

    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.

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    Entrepreneur Staff

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  • Struggling in Franchising? You Need to Think Bigger. | Entrepreneur

    Struggling in Franchising? You Need to Think Bigger. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    A few years ago, I was speaking to some friends and colleagues about a vision I had for a new franchise restaurant. I told them the brand had a unique concept and could quickly be on track to 1,000 worldwide locations. The responses were fairly consistent: incredulity and laughter. And these people were supposed to be my friends!

    The brand we talked about was The Halal Guys, a company I work with. After an extremely successful 2022, one in which the company opened its 100th location — and with 300-plus more in development — it was tempting to then ask them, “Who’s laughing now?”

    The plan was aggressive from the jump: We’d target the 50 largest markets in North America, then go international. Most of those major metro areas are covered now, and international expansion has begun with the UK and South Korea. Pulling this all off as quickly as we’d envisioned seemed impossible to a great many, but that ambitious mindset worked.

    Here are some essential strategies I’ve applied in the course of taking more than 10 such brands worldwide.

    Related: 5 Strategies You Need to Build Your Brand

    Think positively

    There’s nothing a failing person likes to see more than someone else fail. So, it’s okay if someone doesn’t see your vision: It wasn’t their vision anyway, it’s yours.

    My story about The Halal Guys isn’t an outlier. When you’re building, many people are going to root for you to tank simply because they aren’t winning, which often means that they’ll give you bad advice, encourage you to back off and/or withhold a helping hand. That’s why it’s so important to think positively about your brand’s potential and growth plan. Because challenges arise for young franchises daily, and panic doesn’t put money in the bank.

    When I was helping PayMore through its initial franchise launch, it seemed that we couldn’t sell to anyone. Despite great unit economics and a scalable business plan, many thought its buy-sell-trade model seemed too much like a pawn shop, and in truth, we weren’t doing the company any favors by presenting it like one.

    Still, there was no panic. We stayed positive and altered our presentation. It’s been a little more than a year now since we launched franchising, and over the last two months have completed more than a dozen deals encompassing 60-plus units. Put simply, positivity paid off.

    Think aggressively

    It’s important to have brand standards, but it’s also important to know when to bend them. You may be dead-set on only allowing multi-unit deals, for example, but the right single-unit deal can get the ball rolling for a stagnant brand, including attracting good press, which could lead to a multi-unit franchisee down the road.

    Also, think about how you can incentivize franchisees to expand their territories because encouraging them to embrace affordable conversions could lead to quicker growth (keep in mind that this requires having the right design and brand standards in place). Thinking aggressively means being prepared to act fast when opportunities arise, so plan accordingly when building your business strategy.

    Part of thinking aggressively is thinking big: Don’t be content with small, steady growth if your concept can handle rapid expansion. Don’t be afraid to go for it.

    Related: As a Leader, You Need to Be Both Positive and Aggressive

    Think beyond yourself

    Building a brand that aims to be a household name is a lot easier with a solid team in place. I’ve always enjoyed getting my hands dirty, and I’ve never worked harder than I did for real mentors and with other people who have taught me about the industry.

    Case in point: I’m working with a new brand out of Chicago called Cilantro Taco Grill. Their story is inspiring — run by a family of first-generation immigrants from Jalisco, Mexico, who built the restaurant as a tribute to their father and as a celebration of the authentic flavors they grew up with. They’ve dominated the quick-service Mexican scene in Chicago, in part because their business plan was born out of familial love. The company’s story and standards are authentic, and its food tastes better because of that.

    This is just part of why it’s so vital to share your goals, and even more so to share your success. Team members should also be in line with the business plan and where the brand is headed — should be thinking positively and aggressively right alongside you. Of course, that requires the right workplace dynamic: People naturally invest themselves in people who take care of them, so incentivize success, offer quality benefits and provide a comfortable workplace.

    Related: Why Are Companies Still Holding Back on Investing in Employees’ Development?

    Think about the future

    The goal for any franchisee should be to get wealthy, certainly, which involves building towards an exit. This business, like virtually all others, is about growing an asset that has the potential to sell at peak value. That’s why you need to be positive, prioritize aggression and focus on building a team — with the very possible goal of attracting a buyer. A profitable five-unit franchise chain that sells at eight times its yearly income could potentially set you up for life — a return most other industries can’t offer in a comparable timeframe.

    You shouldn’t be looking to create a job — heck, you can go find a job. Your future in franchising should be building generational wealth — for your family, your kids and yourself.

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    Dan Rowe

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  • What You Need to Know About Drone Franchises | Entrepreneur

    What You Need to Know About Drone Franchises | Entrepreneur

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    From surveying agriculture to filmmaking to social media, drones have proved to be an invaluable tool in various sectors. As the market grows, enterprising individuals are seeking ways to be a part of this booming industry, and drone franchises present an ideal opportunity. We delve into the realm of drone franchises in the United States, exploring what they offer and how they can be the launchpad for a lucrative business venture.

    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.

    The expanding horizons of drone usage

    Drones, once exotic, expensive gadgets, have evolved into a multifaceted utility. The agriculture sector benefits from drone technology in monitoring crops and analyzing soil. Logistics companies are eyeing drones for small parcel deliveries. Ecologists utilize drones to monitor and count wildlife and livestock. Geographical mapping, search and rescue operations, pipeline monitoring and road patrols are also harnessing the power of drones.

    Drones have become an essential tool for photography and motion picture filmmaking. With such diverse applications, it is obvious that drones are more than just a flying machine.

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

    The appeal of drone franchises

    Entering the drone business via a franchise has its perks. Franchisees benefit from an established brand, access to tried-and-tested business models and continuous support. Moreover, as a franchisee, you have the autonomy of being your own boss while still having the safety net of a larger organization.

    Though the franchisor provides the groundwork, it’s crucial to understand that, as a franchisee, you play a significant role in making the business work. Your entrepreneurship skills and dedication are vital to the success of your franchise.

    According to industry forecasts, the drone services market is set to experience substantial growth in the coming years. The market reached $29.8 billion in 2022, indicating a significant expansion in its overall value.

    In the United States, the sales of consumer drones to dealers in 2020 exceeded $1.25 billion, according to Statista. This highlights the strong demand for consumer drones within the country. Furthermore, Goldman Sachs forecast that the total drone market will reach a value of $100 billion, primarily driven by the increasing demand from commercial and government sectors.

    These statistics indicate the growing significance of drones and their expanding market presence, suggesting a promising future for the drone industry as a whole — and franchises in particular.

    Potential pitfalls

    The U.S. drone industry is buzzing with commercial potential but is not without its risks. Like navigating through a no-fly zone, prospective franchise owners must tread carefully, fully aware of the potential pitfalls.

    The drone industry is under the watchful eye of the Federal Aviation Administration (FAA), which has set a complex network of regulations that franchise owners must skillfully navigate. Keeping pace with the constant changes can be a full-time job in itself. Any lapses could lead to severe penalties and potential legal battles, making this regulatory landscape a potential minefield for new franchisees.

    Drones, despite their many benefits, can be seen as intrusive, raising major privacy concerns. As these unmanned aerial vehicles become more ubiquitous, the risk of legal disputes and potential damage to a brand’s reputation grows. In the eye of the public, perception is reality, and in this case, perception could lead to reputation nosedives.

    The potential for property damage or personal injury makes insuring a drone franchise a potentially expensive affair. Balancing risk with cost is another tricky area for those venturing into the drone franchising industry. What’s more, operating a drone requires specific training and a certain skill level. Ensuring that all franchisees and their employees receive adequate training and adhere strictly to safety protocols is a challenge.

    Despite their increasing popularity, drones are often negatively perceived due to their associations with surveillance and warfare. This could impact a franchise’s marketability, creating an unexpected headwind that could slow the growth of the business. Moreover, the drone market has seen a surge of startups in recent years, making the skies a lot more crowded. With increased competition, standing out from the rest of the flock can be an uphill task for any drone franchise.

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

    U.S. drone franchises

    As the drone industry thrives, various franchises have sprouted across the United States. Here are some notable drone franchises:

    Blue Nose Aerial Imaging

    Blue Nose specializes in aerial imaging and data collection. This franchise is ideal for those looking to get involved in surveying, mapping and agricultural monitoring. Blue Nose caters to a wide range of industries, including construction, real estate and agriculture.

    Drone Nerds

    As one of the largest drone dealers and drone service providers, Drone Nerds offers franchise opportunities for retail and drone services. This includes sales of drones and accessories and offering maintenance and repair services.

    Drones Plus

    Drones Plus is one of the largest drone retailers in North America. It offers drones for various purposes including photography, videography and industrial applications. As a franchisee, you would be selling to and offering training for drone enthusiasts and professionals.

    PrecisionHawk

    North Carolina-based PrecisionHawk focuses on data collection and analysis and caters to industries like agriculture, energy and telecom. As a franchisee, you can be at the forefront of high-end drone technology deployment.

    Interested in becoming a drone franchisee?

    Embarking on a drone franchise journey offers a unique blend of independence and support. With the drone industry poised for exponential growth, now is an opportune time to venture into this field. It’s essential to thoroughly research and evaluate the available drone franchises and align your interests and skills with the right brand.

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    Carl Stoffers

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  • How to Measure Success With Comparative Testing | Entrepreneur

    How to Measure Success With Comparative Testing | Entrepreneur

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    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 operationsfrom 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.

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  • Retirement Redefined: A Starter Guide to Franchising for Seniors | Entrepreneur

    Retirement Redefined: A Starter Guide to Franchising for Seniors | Entrepreneur

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    For some, retirement may mean sitting on a beach in a faraway place. But for others, retirement doesn’t necessarily equate to stepping away from work. Instead, it may lead to a whole new line of it.

    Enter the world of franchising. Many seniors can embrace the idea of business ownership through franchising, which offers the opportunity to stay engaged, make a meaningful contribution and enjoy financial independence.

    But as with any franchise, choosing the right opportunity requires careful consideration to ensure a successful and enjoyable venture for seniors and non-seniors alike.

    Here are six factors to keep top of mind if you’re a senior diving into the world of franchise ownership as a retiree.

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

    1. Assess personal goals and interests.

    If you’re a senior, consider what you’re passionate about, your skills and experiences and the type of work you would enjoy doing. You should also consider if you want to be a hands-on or hands-off franchisee, pending your retirement goals.

    Whether it’s in-home care, fitness, food services or another popular industry, finding a franchise that aligns with your interests can ensure a more fulfilling and satisfying retirement experience.

    2. Evaluate the market.

    For anyone looking to be a franchisee, you must thoroughly research the market potential of different franchise opportunities before making any decisions. Analyze the demand for specific products or services, the potential competition in the area and who the target customer base would be. Conducting market research helps identify franchises with a proven track record and a higher likelihood of success.

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

    3. Examine a franchise’s reputation.

    A franchise’s reputation is crucial for seniors looking to invest their time and money. Check the franchise’s history, financial stability and growth potential. Look online for customer reviews, speak with existing franchisees and seek professional advice. An established and reputable franchise can provide seniors with the needed support and resources for a successful business venture.

    4. Prepare for the financial commitment.

    You should carefully evaluate the financial commitment required for the franchise you’re considering. Review the franchise’s initial investment costs, ongoing fees and royalties. It’s also important to assess the franchise’s financial performance, including revenue potential, profit margins and return on investment.

    Franchising is a significant monetary commitment that may involve taking out loans, so be sure to understand the full picture before committing prematurely — and of course, seek professional advice when necessary.

    5. Ensure the franchise provides ample support and training.

    For seniors embarking on a new business venture, support and training are essential. Research the franchise’s support structure, including initial training, ongoing assistance and marketing support.

    Some franchises provide mentorship and networking opportunities not only for all their franchisees, but also specifically for seniors. Strong franchise support will help you navigate the challenges of business ownership, ensuring a smoother transition into the role of the franchisee.

    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.

    6. Look for work-life balance.

    Seniors should consider the lifestyle implications of the franchise they choose. Determine if the franchise allows for flexible hours, part-time options or seasonal operations. Additionally, assess the potential for growth and expansion.

    Seniors may want to start small and gradually scale up. Also, keep an eye out for franchise opportunities that require long hours, frequent travel or physical exertion. If that’s not part of the retirement life you see for yourself, then you may need to look at other franchise opportunities.

    Good luck on your journey

    Retirement and business ownership can allow seniors to enjoy the best of both worlds. Franchising empowers seniors to enjoy financial independence, contribute to their communities and maintain an active and engaging retirement.

    With the right franchise opportunity, you can tap into established business models, proven systems and ongoing support to make your retirement years vibrant and rewarding.

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

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    Clarissa Buch Zilberman

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  • Amazon Prime Day Blowout: All Entrepreneur eBooks Just $1.99 | Entrepreneur

    Amazon Prime Day Blowout: All Entrepreneur eBooks Just $1.99 | Entrepreneur

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    Our 48-Hour Flash Sale is happening now! Get any eBook in the Entrepreneur Bookstore for just $1.99 — that’s a savings of up to 80%. You won’t find a better deal anywhere else on Amazon Prime Day.

    Use code LAUNCHSALE at checkout to save big on eBooks that will help you:

    • Launch Your Dream Business
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  • Pizza Inn Delivers on Growth Strategy With Second Consecutive Year of Increased Buffet Unit Count

    Pizza Inn Delivers on Growth Strategy With Second Consecutive Year of Increased Buffet Unit Count

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    RAVE Restaurant Group, owner and franchisor of Pizza Inn and Pie Five restaurants around the world, today announced the second consecutive year of positive net unit growth of Pizza Inn buffets as we continue to reposition and invest in the 65-year-old Pizza Inn brand. 

    Increased unit count is just one indication of Pizza Inn’s transition from a turnaround company to one primed for further expansion. Other indicators include several new product and marketing innovations, updated brand graphics, and a well-received reimagined restaurant design.

    CEO Brandon Solano said, “Last year marked our first unit count growth in 24 years and this year marks the second. In my book, two data points make a trend and that’s good for our franchisees. We’ve also had twelve consecutive quarters of profitability through this third quarter, and an unbelievably positive response to our new store image. I’m excited to see what our franchisees can achieve as we continue to expand our footprint, introduce delicious new products, and roll out this updated look across the company.” 

    The five new buffets are located in geographic markets in which Pizza Inn once had a footprint, and the reintroduction of buffets in those areas contributes to the company’s ongoing plan to reclaim markets it once served. Pizza Inn aims to leverage existing brand familiarity among consumers as well as a pent-up demand for the buffet-style chain’s signature pizzas, salad bars, pastas, and desserts.

    The re-imaging of Pizza Inn was unveiled last month in North Carolina and was designed to appeal to former and new customers alike. The new retail prototype blends: (1) nostalgia, with a movie theater marquee and depictions of the brand’s distinctive mascot, JoJo, as he has evolved through the past six and a half decades, (2) quality, with booth seats that remind customers that pizza dough is made in-house every day, and (3) social media opportunities, with a mural of wings made of cheese, a customizable game room marquee, and mirrors with JoJo’s classic mustache.

    Solano added, “We’re excited about the new design. It keeps our restaurants relevant, while honoring the memories that millions of people have of our buffets. We kept the buffet as the star of the show and added some really cool elements our customers tell us they relate to and enjoy.”  

    Pizza Inn is renowned for making fresh pizza dough, using house-shredded 100% whole milk mozzarella cheese, hand-cutting fresh vegetables and their house-made signature pizza sauce. Their menu also includes more than a dozen signature pizzas, traditional pastas and strombolis, as well as unique desserts, called Pizzerts®. One of the biggest draws, however, is a robust, all-you-can-eat, fresh salad bar, with an abundance of house-cut ingredients, a multitude of popular toppings, and six different dressings, including authentic house-made ranch.

    For more information, please visit https://www.pizzainn.com and to learn more about franchising opportunities visit www.pizzainn.com/franchise.

    About Pizza Inn
    Since 1958, Pizza Inn’s popular pizza buffet and friendly service have solidified the brand as America’s hometown pizza place. Unlike your typical buffet, Pizza Inn built a reputation for using house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce. This, combined with its small-town vibe, are the hallmarks of its restaurants that feature signature pan pizzas, chocolate chip ‘pizzerts,’ pasta dishes, salads and innovative creations that reflect today’s customer cravings. The brand continues to thrive with new menu innovations, including its popular NYXL pizza. Follow Pizza Inn on Instagram @pizzainn and to learn more about franchising opportunities visit www.pizzainn.com/franchise.

    About RAVE Restaurant Group, Inc.
    Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] has inspired restaurant innovation and countless customer smiles with its trailblazing pizza concepts. The Company owns, franchises, licenses and supplies Pie Five and Pizza Inn restaurants operating domestically and internationally. The Pizza Inn experience is unlike your typical buffet. Since 1958, Pizza Inn’s house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce combined with friendly service solidified the brand to become America’s favorite hometown pizza place. This, in addition to its small-town vibe, are the hallmarks of Pizza Inn restaurants. In 2011, RAVE introduced Pie Five Pizza, pioneering a fast-casual pizza brand that transformed the classic pizzeria into a concept offering personalization, sophisticated ingredients and speed. Pie Five’s craft pizzas are baked fresh daily and feature house-made ingredients, creative recipes and craveable crust creations. For more information, visit www.raverg.com, and follow on Instagram @pizzainn and @piefivepizza.

    Note Regarding Forward Looking Statements

    Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, the effect of our efforts to reinvigorate our brand to reclaim strategic geographic markets, our efforts to improve the dining experience for our customers, as well as our efforts to move forward towards our ultimate turnaround strategies, as well as general competitive and market conditions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of RAVE Restaurant Group, Inc. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate, including, without limitation, the risk that our recent effort do not have a lasting impact on the Company’s operations and financial results. There can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that those or any other objectives and plans of RAVE Restaurant Group, Inc. will achieve the desired results for the Company and its stockholders.

    Source: RAVE Restaurant Group

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  • Naming Your Franchise Business | Entrepreneur

    Naming Your Franchise Business | Entrepreneur

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

    One of the first—and most important—tasks you’ll need to consider when starting a franchise business is choosing your name. The name represents you to your customers, and as such, it’s not a decision that should be made lightly.

    That said, names don’t make businesses. Businesses make names.

    While a good name choice may not be the cause of your success, a bad one can undoubtedly contribute to your demise, so keep the following pointers in mind.

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

    Don’t be too descriptive

    From the standpoint of obtaining a trademark (which will allow you to enforce your intellectual property rights), the more descriptive a name is, the harder it is to trademark.

    The word “hamburgers”—while it appears prominently on many signs—is not subject to trademark protection. Imagine the amount of legal fees you’d collect if you were fighting over the word “hamburgers.”

    A descriptive name could also lock your brand into a market position that you may not want to own at some point in the future. Boston Chicken became Boston Market because the company wanted to promote other menu items like turkey and meatloaf. So choosing a descriptive name can hurt you when it comes time to expand.

    If you absolutely need to use a descriptor to help explain your consumer offering, use it in a tagline, which you may or may not be able to trademark.

    Make sure that the name is easy to spell, pronounce, and remember. Shorter names are easier to use on signage, allowing you to use larger letters and make the name more visible.

    Related: The 4 Biggest Myths About Franchising

    Communicate positive attributes and values

    Even if you avoid a descriptive name, one thing you might do is ask yourself what attributes you want to communicate about your brand. You can then incorporate a word or part of a word that helps convey that attribute.

    FedEx, for example, which was originally Federal Express, was focused on the brand attribute of speed. PayPal focuses on friendliness and ease by adding the “Pal” appendage.

    Logos

    The process of developing a name and logo can be complex. It may include steps like:

    • Name derivation using words or parts of words with specific characteristics
    • Testing names and logos with focus groups
    • Other tools used by consultants on issues such as color and design

    When you first create your logo, don’t worry about spending a lot of money on design. There are a number of online resources that can designnice-looking logosfor a fraction of the cost of a professional design firm.

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

    Make sure you can trademark your name

    Perhaps the most critical aspect of choosing a name is being sure the name you choose can be trademarked before you invest any time or effort in promoting it. Burger King, for example, operates in Australia under the name Hungry Jack’s because of a similar trademark problem.

    In the U.S., a quick search of the Trademark Electronic Search System (TESS) on the U.S. Patent and Trademark Office (USPTO) website can tell you whether or not a name is trademarked.

    Caveats with trademarking

    Even though you can search TESS to see if your name is available, this method is not without its flaws. If, for example, you searched “MacDowell’s” as a possible name for your hamburger restaurant, the TESS search would come up empty—but the USPTO might still reject your trademark if it felt the similarity to McDonald’s might confuse consumers.

    On the flip side, the mere existence of a competing name may not preclude you from getting a trademark either. Trademarks are registered based on various classes in the USPTO’s classification system. There are a total of 45 different classes—34 representing product classes and 11 representing service classes. So the fact that you have the same name as another trademark owner is not necessarily a deal killer if you’re in different classes. No one is likely to confuse an Ace Bandage with Ace Hardware.

    Related: Franchise Ownership Made Easy: Best Practices for Managing and Growing Your Business

    Trademarking is not always worth it

    If you were operating as “Joe’s Pizza,” and you felt you could trademark the name, you should consider whether that name is more trouble than it is worth. If you searched Google and found 10,000 different Joe’s Pizza Parlors (or similar names), all those businesses would have prior rights to the name. So even if you could get the trademark, you would have 10,000 businesses “infringing” on it—and legally, they would have every right to continue to operate under the brand.

    Seek advice from counsel

    Once you have narrowed down your list of potential names, it’s imperative to get the input of trademark counsel on your top choice before you finalize your decision. The cost of obtaining an uncontested trademark, even when using an attorney to file the paperwork, is minimal when compared to the cost of having to rebrand your business at some point in the future.

    Pro tip: When deciding to file your trademark, do so at the federal level (not the state level). That will give you the broadest rights.

    You’ve filed… what next?

    Once you file, the USPTO will assign an examining attorney to review your mark. At that point, your application could be rejected (which you can appeal), or it can move through the process of publication—where your application is listed in the Official Gazette published weekly by the USPTO. If no one objects to your mark within 30 days (and remember, trademark attorneys religiously scan the Official Gazette on behalf of their clients), you go to the next step, and your trademark is registered.

    If your mark is uncontested, the process can take six months to a year or more. But you can go ahead during that time and start your business under your chosen name—as long as your trademark attorney feels comfortable that you’re likely to obtain the mark. Once they’ve given you the go-ahead, you can begin developing your look and feel—which will be communicated to the public through your logo.

    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.

    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.

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  • Subway Is Introducing Deli Meat Slicers, Nixing Pre-Sliced Meats | Entrepreneur

    Subway Is Introducing Deli Meat Slicers, Nixing Pre-Sliced Meats | Entrepreneur

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    Subway is stepping up its sandwich game in a big way.

    The sandwich franchise is set to forgo its signature pre-sliced deli meats for fresh-cut proteins with the addition of meat slicers in all U.S. restaurants. Beginning July 5, about 20,000 US locations will start serving freshly sliced deli meats, including turkey, pepperoni, roast beef, ham and salami, with 80% of stores displaying $6,000 slicers depending on the counter space, according to CNN.

    Subway first announced the change up to Restaurant Business Online in August 2022, and told customers they can expect freshly-sliced meats by summer 2023.

    RELATED: What’s the Deal With Subway’s ‘Fake Tuna’ Lawsuit? A Look Inside the Unusual Case

    The transition is “part of Subway’s ongoing transformation journey,” a Subway spokesperson said in a statement to People, adding that the brand is on a quest to “[elevate] the quality of our protein offerings even further.”

    Restaurant Business Online previously reported that Subway’s new slicers will be automatic and can be operated with the push of a button. The initiative is expected to bring down labor costs as the company will no longer have to outsource to slice its proteins. Additionally, the machinery will be placed at the front of stores so customers can see the process and be assured they are receiving fresh meats.

    Subway’s revamped deli meats come after the brand was sued in 2021 for claiming its tuna was “100% real.” Various DNA testing proved there were “no detectable tuna DNA sequences whatsoever” in 19 out of 20 samples collected from Subway locations in Southern California, with all 20 samples containing “detectable sequences of chicken DNA.”

    While Subway’s defense claimed the DNA results could have been impacted by cross-contamination, a judge ruled in July 2022 that the company can be sued for claiming they offer “100% tuna.”

    All 22,000 Subway restaurants are expected to implement the new meat slicers.

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    Sam Silverman

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  • 4 Reasons You May Not Qualify For a Franchise | Entrepreneur

    4 Reasons You May Not Qualify For a Franchise | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Not everyone can or should become a franchise owner. It may seem like franchisors are overly aggressive in trying to sell franchises to new owners; however, a good franchise company is not looking to award a franchise to any random candidate who can afford the franchise fee.

    Like any good business, a good franchise company knows it can only succeed with great people in the system. And every franchise system has a preferred profile for who will make a strong franchisee — typically based on analyzing successful prior franchisees and creating an ideal avatar for success.

    The value of any good franchise system is a strong, consistent brand. A franchisor looks for franchisees who are a great fit for the services they offer and can provide consistency through business skills and acumen. For example, some franchises require more emphasis on sales leadership, while others succeed more through the execution and delivery of the service through team members.

    As you proceed with the franchise investigation process, you should expect that a franchisor will have as many questions about you as you do about them. It is true that many franchisors desire to grow quickly — after all, many of them are new emerging companies also. Growing units more quickly allows them to invest in the infrastructure, assets and personnel to support a strong franchise network. But a good brand will be very careful to only award franchises to candidates who pass stringent criteria and they expect to be the best representation of the brand.

    I always tell my candidates to treat the investigation process like a job interview. Once you get the offer, you have choices, but you need to put your best foot forward to get awarded a franchise. These companies are not selling used cars. Because they have to talk to sometimes dozens or even hundreds of candidates to sign a qualified franchisee, it may feel like you’re going through a slick sales process — and you are, for efficiency’s sake. But it is still selective. I have had multiple candidates rejected at Discovery Day when they don’t present well after meeting the founders and management team.

    Here are some common reasons you might not qualify or get awarded a franchise.

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

    1. Lack of capital

    Every franchise has a minimum liquidity and net worth requirement. There are many avenues to finance your business, and franchise companies will often put in place special financing programs — especially if they have unique equipment needs, fleet vehicles, etc. But at the same time, the franchisor wants to confirm you have adequate reserves for working capital, achieving positive cash flow and covering your living expenses while you ramp up. If you are undercapitalized, they want to avoid setting you up for failure.

    2. Lack of business acumen

    Harvard Business Review researchers found that the average age of entrepreneurs at the time of their company’s founding is 42. Franchisees likely skew even a little older, with many coming from corporate management backgrounds. As a franchisee, you don’t need industry experience, but you should have a strong foundation of leadership and management experience. Knowing you can lead a team, work with others and be a good partner are traits every good franchisor wants to see in a candidate.

    3. Lack of availability

    Many franchises have full-time requirements, which is not usually a problem if that matches the candidate’s needs. But I’ve had many franchise candidates who want to keep their corporate jobs and start a franchise on the side. There are a large and growing number of franchise companies that allow that and are structured to be run by a manager. However, there is no such thing as a truly passive franchise. If you are looking only for investment and have no interest in running a business, you won’t be a strong candidate for a franchise. Even for semi-absentee models, you need to have enough flexibility to be available to your general manager and handle the occasional business issue during regular work hours.

    Related: Go Beyond the Interview: How to Get a True Feel for a Franchise

    4. Poor attitude

    I’ve never told a franchise candidate that starting a business is easy. It’s not. So, it’s even more important that candidates have an abundance mindset and the mental fortitude to overcome obstacles. If a franchise candidate is negative and pessimistic before even getting started, how are they going to hold up emotionally when the inevitable challenges come up when starting a business? A franchisor wants to see a true entrepreneurial spirit in candidates before awarding them a franchise.

    If you investigate a franchise company that is simply looking to add franchisees without any standards or qualifications, watch out for that brand. It’s not common, but like anything else, there are good franchise companies and bad franchise companies. If you have a hard time filtering all of the brands out there, you may want to engage a franchise consultant to help you focus on strong brands that will be invested in a long-term partnership to help you achieve your goals.

    Nearly every franchisor wants to grow and add more franchisees. But the good brands are focused only on adding highly qualified and value-added franchisees. Having the right mindset as you go into the process will help you avoid seeing it as a one-way street. Yes, they are selling you the franchise opportunity, but you also need to sell yourself as a valuable and productive partner in their system. Make sure your capital, skills, time and attitude all line up with the prospective franchise system and put your best foot forward to be awarded a franchise.

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  • How to Determine Your KPIs and Achieve Profitability | Entrepreneur

    How to Determine Your KPIs and Achieve Profitability | Entrepreneur

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    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.

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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

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    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

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    Alicia Miller

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  • Why a Franchise Is the Best Long-Term Investment Strategy | Entrepreneur

    Why a Franchise Is the Best Long-Term Investment Strategy | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    While today’s economic landscape is uncertain, making the right choices to build wealth isn’t something to take lightly. Choosing the right investment is not something that comes naturally to most people. In many cases, people save money or invest in a 401(k) plan provided by their employer. Others take on more risk by investing in individual stocks or practicing classic principles like the 60/40 rule of portfolio diversification.

    No matter the expertise, there is always a level of risk involved when investing and there are other strategies to diversify your overall investment portfolio.

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

    Investments in franchising are an alternative

    Franchising can be a worthwhile option for those who want to expand their investment portfolio in the long term. It offers advantages with numerous benefits as a long-term investment strategy. The long-term growth prospects are exciting, and there are plenty of franchises (and their respective industries) to choose from.

    Many examples of franchise investments in the food and beverage or health and wellness industries exist. Subway, Dairy Queen and Anytime Fitness, to name a few. With these particular brands, franchisees benefit from substantial brand equity and it helps that they’re built on proven business models, training and ongoing marketing and back-office support, including financial management tools and access to capital.

    Several industries have recently been recognized for strength and viability even during turbulent or uncertain economic times, including the Great Recession of 2007-08 and the Covid-19 pandemic. These franchises have been referred to as recession-proof franchises, as many of them were called to the frontline to help provide baseline human and business services.

    For example, one industry that continues to prove itself during strained economic times is commercial cleaning. Franchising opportunities in commercial cleaning are plentiful and many brands have survived and thrived during past recessions and global pandemics.

    During the Covid-19 pandemic, commercial cleaning companies were relied upon to keep businesses (including hospitals, medical testing centers, doctor offices, grocery stores, etc.) clean and disinfected. Commercial cleaning suddenly became a topline business operation process as a redefined customer expectation, and the definition of cleanliness materialized. According to industry analysts, the commercial cleaning industry is expected to hit more than $468 billion in revenue by 2027. That’s a 51.67% increase over the market’s $308.7 billion value in 2020.

    Building on an existing model

    Master franchising is an investment many are discovering due to recent economic uncertainties. Master franchising involves taking control of a region or territory to expand unit franchises under the same brand umbrella.

    As an investor looking to increase returns, the master franchisor aims to invest in an established brand through territory ownership and selling unit franchise models to local entrepreneurs looking to go into business themselves. As the regional franchisor, the investor controls high-level business decisions, such as marketing and sales, while the party franchisee staffs, manages and executes at their independent location.

    The benefits of franchising go beyond just expanding your business reach. Engaged franchise brands help their franchisees in many ways, including financial management tools, marketing technologies and cash flow. By using your established brand, you can attract potential franchisees who may not have considered starting their own business otherwise.

    In addition, the benefits of franchising as a long-term investment strategy are immense. One key advantage is that franchisees make decisions and are their own boss, allowing them to run the franchised business according to their preferences. When a franchisor welcomes a new franchisee into its system, they ensure the franchisee is well-equipped to take on this new venture. This includes extensive training, support, assistance and guidance in every aspect of the business. This allows for greater flexibility and control over one’s career path.

    One significant benefit of franchising is that it allows investors to acquire a franchise and develop their own franchise company. This approach pays off as the franchise program provides access to a proven business model, which has been tried and tested in various locations. Additionally, franchising enables investors to open more locations under the brand, increasing the business they can generate. Buying into a franchise also means lower risk, as the brand network offers ongoing expert support while operating within an established business model.

    Another significant advantage is the opportunity to invest in an established franchise business product already developed and modified for market success while operating under a recognized brand. Additionally, franchisors often modify their franchise agreements to suit individual franchisees’ markets.

    Related: The Pros and Cons of Franchising Your Business

    Is franchising safer than a savings account or stocks?

    Recent events in the banking and financial sectors are concerning for many people looking to build a portfolio that can sustain their lifestyle through retirement. With bank failures like Silicon Valley Bank and others, investors are nervous about cash sitting in savings accounts (not to mention the next-to-nothing returns) while the banks ineffectively raise investment rates against inflation. Investors are looking for other vehicles to utilize their cash where they can earn a more substantial return with lower risk. This is where franchising starts to look safe, attractive and viable, especially given the scrutiny of the franchise purchase process.

    Franchise disclosure is a critical component of the process, offering prospective franchisees the opportunity to read about the rules, laws, and requirements before investing. The Franchise Disclosure Document contains a wealth of essential information, such as crucial operating details and locations of other franchise operators. This allows entrepreneurs, both experienced business owners and first-time investors, to make informed decisions about owning their business. The franchise rule requires franchisors to offer support to keep franchise operators’ employees and provides growth opportunities for owner-established investors.

    Franchising might be an exciting option for investors looking for new and creative ways to protect their savings while putting their money to work. As with any decision, due diligence, research and learning are always recommended. Additionally, franchise investment is a topic of conversation that investors can engage with their fiduciary, wealth or financial advisor.

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    Adam Povlitz

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