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Tag: Franchise

  • The Best Video Marketing Advice for Franchise Brands | Entrepreneur

    The Best Video Marketing Advice for Franchise Brands | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The ever-increasing competition among franchisors to get an edge on one another has led to some innovative marketing campaigns and initiatives. Amidst this backdrop, video marketing has become a vital component for many brands precisely because it can be utilized in so many ways. But it’s also created a complication of sorts — where to deploy video that best serves a wide variety of brand-related challenges.

    If you’re a franchisor who hasn’t yet developed a comprehensive video marketing strategy, there are three primary areas where you should concentrate your efforts: franchise development and sales, recruiting and training. Below is some advice on video usage for each of these important categories.

    Related: 5 Reasons Why You Need Video in Your Marketing Strategy (With the Stats to Prove It)

    Videos that increase franchise development and sales

    The last of the three areas of brand marketing with the highest value for video is sales development. And one of the best ways to communicate the social proof of your brand involves testimonial-style videos. Done right, what you’re actually selling is the full vision that the brand has to offer. Not just the “who,” “what” and “where” of your business model, but also the “why.” If you need to boost your sales outreach efforts, use testimonials that feature successful franchise owners who were once uncertain entrepreneurs — just like the target market you’re hoping to reach.

    To boost franchise development efforts, use testimonials that get real. Feature real people sharing real experiences that include the real ways in which their lives have changed for the better. Be specific! Communicate actual experiences that demonstrate the freedom and flexibility that comes with franchise ownership — especially your ownership prospects. Testimonials that feature the CEO in his office, sharing the details of your brand’s opportunity are great. That’s what most people expect to see.

    But you also need a second kind of testimonial — one that’s set amidst an on-location filming site. Imagine a first-person testimonial video that features a successful franchisee in their own backyard with their happy kids playing in the background. Now that could be anyone, including the viewer, who’s likely imagining themselves as a franchisee in your system while they watch.

    Videos that benefit recruiting

    Franchisors, whether an emerging brand or those who have already hit the magic 50-unit milestone, have a continuous need to fill their sales pipeline with high-quality prospects. New franchisees are the lifeblood of the brand, and each new unit awarded strengthens the system as a whole. And video can also be instrumental in helping franchisors recruit these prospects. If you’re going to deploy video for internal and external recruiting, the key is to feature content that showcases your company culture. Make your key differentiators the star of the show by featuring the aspects of your business model worth investigating.

    Shoot videos that demonstrate how existing franchise owners feel about working with the brand, highlighting the types of things that keep them excited about getting up each and every day. Video that provides social proof becomes believable in the viewer’s eyes. They’ll soon understand why the brand has changed other people’s lives for the better. And naturally, they’ll want that for themselves as well.

    Related: Connecting With Your Target Audience Through Video

    Videos that benefit training

    A great deal of franchisors take their comprehensive training programs seriously. This is the period in which you’re communicating how to own and operate your franchise opportunity to a captive audience. So, captivate them! Use engaging and entertaining (read: not boring) videos to introduce your business model to new owners.

    Studies have long since determined that we learn best through visual mediums, but newer information reveals that we also retain much more of the material we’re presented than with written guides and manuals. Instructional videos — especially those related to job safety — are vital aspects of the business model to communicate with new franchisees. And nothing gets the point across about workplace hazards and best practices for safety on the job than training videos.

    Related: Why Video May Be the Most Effective Format When It Comes to Training New Franchisees

    Hopefully, this information has been a helpful guide for deploying video that will enhance your overall brand marketing efforts. If you’re unsure where to begin, simply think about the three areas where video can have the biggest impact: franchise development and sales, recruiting and training. When it comes to your brand’s value proposition, the “who,” “what” and “where” are certainly important features. But visual storytelling is what best demonstrates that all-important “why” that you’re trying to communicate to your desired target market.

    After all, there’s no reason to keep that answer all to yourself — it’s an aspect of your business model that you should be sharing with the rest of the world!

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    Trevor Rappleye

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  • Scenthound is a Top New & Emerging Franchise | Entrepreneur

    Scenthound is a Top New & Emerging Franchise | Entrepreneur

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    Scenthound CEO Tim Vogel talked to us about how his business evolved from a typical grooming salon
    into a membership-based wellness studio for dogs—and then into a quickly-expanding franchise, hitting
    No. 127 on our Top New & Emerging Franchises list.

    How did Scenthound get started?

    In 2005, my wife Jessica and I started a mobile grooming business, and later transitioned to retail
    locations. After learning what dogs’ and dog parents’ needs were, we pivoted into a wellness model. If
    you look at the top 10 breeds in the U.S., only one of those 10 needs a haircut—but all dogs need care. It
    was around 2015 that we launched what is today called Scenthound—”scent” being an acronym for
    “skin, coat, ears, nails, teeth,” the five core areas that all dogs need routine care for.

    Why did you decide to franchise?

    There were a handful of reasons. First, we wanted to amplify our impact, to help people care for their
    dogs in a proactive way to help them live happier, healthier, longer lives. Second, I’ve always been
    involved in the entrepreneurial community, and I loved the idea of helping other people take the
    entrepreneurial journey. Third, we had created this entirely new category, and we wanted to be the
    leaders in that category, and franchising offered a way to scale rapidly. Finally, part of our value
    proposition is that we collect each dog’s health profile, and the more data we collect, the better
    recommendations we can make on what dog parents can do to keep their pets happy and healthy. So
    the more locations we have, the more data we have to personalize and curate solutions.

    How do you get pet parents to understand the need for your services?

    Many dog parents come to us initially just because they don’t want to wash their dog or clip its nails
    themselves. But every time they come in we give them what we call a Scent Check—a report card where
    we review their dog’s health and tell them where there are opportunities for improvement and how
    they can solve or prevent problems. So customer by customer, we’re educating them about dog health,
    and then suddenly they’re a wellness customer, not a grooming customer.

    Like a lot of human wellness franchises, you’ve adopted a monthly membership model, right?
    Yeah, and that’s one of the really powerful things on both sides of the fence. The number one reason
    our customers say they love us is because the routine maintenance and accountability is set up for
    them. And on the other side, it’s really good for the business owner, because you’ve stabilized revenue.
    You also have a dog that’s in good shape because they’re coming in regularly, and you have a
    relationship with that dog so they have a great experience and are easier to work on.

    What types of franchisees are you looking for?

    One of the fundamental benefits of our system is that we’re a multi-unit franchise. We have an internal
    system to train trimmers, and after a year of operating one center, you’re going to have too many trimmers, so you have to open your second center to give them a continued career path into
    management. So we’re really looking for looking for multi-unit operators, and operators who have been
    there and done that and have experience in the service industry—someone who knows how to build a
    high-performing team.

    What are your goals for the year ahead?

    The pet industry is forecasted to be a $277 billion industry by 2030, so the tailwinds we have right now
    are tremendous and the opportunity for growth is really unlimited. We’re basically opening one location
    a week for the rest of the year, so we’ll be at 100 by the end of year, which is really exciting, because as
    we scale, we’re changing the psychology of the overall population about dog care and helping people be
    the best dog parents they can be. We’re also creating our own private-label product line. So that’s another big part of our mission, to build this multi-channel ecosystem to not only to bring dogs in and give them routine care, but to give dog parents solutions at home to help them make sure their dog stays on the path to wellness.

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    Tracy Stapp Herold

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  • Getting Out of Your Franchise Agreement | Entrepreneur

    Getting Out of Your Franchise Agreement | Entrepreneur

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    Are you a franchisee who’s feeling stuck? Do you want to find a way out of your franchisee agreement? Perhaps the terms and conditions are too restrictive, or maybe the franchise is not performing as well as you had hoped. It’s natural to feel frustrated and unsure of how to move forward, whatever the reason may be.

    If you find yourself in a franchise agreement that is no longer meeting your needs, it may be time to explore your options for getting out. Here, we’re outlining five steps you can take to navigate the process of ending your franchise agreement and moving on to new opportunities.

    Whether you’re looking to sell your franchise or terminate your agreement early, these steps will help you understand your rights and responsibilities and make informed decisions about your next move.

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

    Review your franchise agreement

    Your franchise agreement is a legally binding contract between you and the franchisor that governs the terms and conditions of your franchise relationship. While franchise agreements can provide many benefits to franchisees — including access to a recognized brand and established business model — they can also be limiting and restrictive with their fees, metrics and operational standards. This can make it difficult for you, as a franchisee, to operate your business as you see fit.

    There may be termination clauses in your franchise agreement, but pay attention to the circumstances under which you can exit. If your agreement includes a buyout or termination fee, be sure to take note of the amount.

    Communicate with your franchisor

    If you’re considering terminating your franchise agreement, it’s important to communicate that to your franchisor early and often. Ideally, you may have regularly scheduled meetings with your franchisor to discuss the business.

    If not, schedule a meeting with your franchisor to discuss your concerns and explore your options. To present your case, you should provide specific examples of how the franchise agreement is impacting your business negatively.

    Some franchisors may be willing to work with you to find a solution that meets both of your needs, as that may save all parties time, money and stress.

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

    Negotiate an exit agreement

    If you and your franchisor agree that terminating your franchise agreement is the best option, you’ll need to negotiate an exit agreement.

    This agreement will outline the terms for how the agreement will conclude, including your financial or non-compete obligations. It’s a good idea to consult with an attorney who has franchise law experience to negotiate a fair and reasonable exit.

    Consider a breach of contract claim

    Did your franchisor violate any terms of your agreement? You may have grounds for a breach of contract claim.

    You will likely need to discuss this with an attorney because this type of claim can be complex and time-consuming — but it may be an option if your franchisor has engaged in fraudulent or deceptive practices or if they failed to fulfill their contractual obligations.

    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.

    Explore alternative dispute resolution options

    If negotiations with your franchisor are not progressing or are breaking down, you can explore alternative dispute resolution options.

    These could include mediation or arbitration, which can be less expensive and tedious than traditional litigation.

    Again, it’s important to consult with an attorney with franchise law experience to determine whether these options are viable for your situation.

    Explore selling your franchise

    Selling a franchise can be difficult, as you’ll need to find a buyer who is willing to take on the franchise and its associated obligations.

    Here are some factors to consider if you’re looking to sell your franchise and exit your franchise agreement:

    • Does the agreement allow it? Some franchise agreements may have specific requirements around selling the franchise, including approval from the franchisor and transfer fees.

    • Determine the value of your franchise. To determine the value of your franchise, you’ll need to consider factors such as the profitability of the business, the value of the brand, and any assets included in the sale. You can work with a business valuation expert to help you determine a fair price for your franchise.

    • Find a buyer. There are several ways to find potential buyers for your franchise, including advertising the franchise for sale online, reaching out to local business brokers, and leveraging your personal network. You’ll want to ensure that any potential buyer is financially qualified to take on the franchise and has the necessary experience and skills to run the business successfully.

    • Negotiate the terms of the sale. Once you’ve found a potential buyer, you’ll need to negotiate the terms of the sale, including the purchase price, transfer fees, and any other terms outlined in your franchise agreement.

    • Transfer ownership. Once you’ve reached an agreement with the buyer, you’ll need to work with your franchisor to transfer ownership of the franchise. This may involve completing paperwork, paying transfer fees, and attending training sessions with the new owner to ensure a smooth transition.

    Move forward in your journey

    Exiting a franchise agreement is not something to take lightly. Before making a decision, you should carefully consider the financial impact of terminating your franchise agreement and weigh all your options.

    By reviewing your agreement carefully, having open lines of communication with your franchisor and consulting with an attorney, you can exit your agreement and look forward to other ventures.

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

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    Clarissa Buch Zilberman

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  • 7 Essential Questions to Ask Yourself Before Starting a Franchise | Entrepreneur

    7 Essential Questions to Ask Yourself Before Starting a Franchise | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    More people than ever are curious about starting a franchise business. The potential rewards seem obvious, but the risks also seem high. Even more than risk and reward, starting a franchise requires a hard look in the mirror to decide if you really have the makeup to become an entrepreneur.

    Here are seven questions you should ask yourself before starting a franchise business.

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

    1. Do I have a future vision?

    To take action and start a franchise, you need to understand your why, not necessarily the widget. Do you have a future vision of your life you’re trying to achieve? Think of that as the destination and the franchise as the car — the vehicle to help you get to the destination.

    A clear future vision should include your involvement in the business, your career and the lifestyle you visualize for yourself. This will help you select the right franchise model that fits this vision.

    2. Do I have confidence, grit, determination and resilience?

    Every business owner in America had to deal with the impact of Covid-19. There will be unknown future obstacles when you start a franchise.

    To move forward, you must bridge uncertainty with an emotional commitment and confidence to overcome obstacles. You must also have the grit and resilience to see through difficult periods. A franchise can help you launch more quickly than starting a business from scratch and will help you navigate any difficulties through best practices from a network of fellow franchise owners.

    3. Should I go it alone or engage a franchise consultant?

    Like shopping for a house, you can certainly find franchise opportunities on the internet. However, it’s a noisy environment with thousands of brands — and like everything else, some are good and some are bad. And no franchise brand shows its business model on its website, so you’re drawing conclusions purely from a consumer viewpoint.

    You cannot easily find newer emerging brands on the internet and can waste tons of time investigating brands only to find out they’re not a fit. A franchise consultant, like a good financial advisor, will reverse this process and start with you and your goals, help you set your criteria and only then match you with franchise brands that fit. They then will guide you through the investigation with education and resources.

    Related: How to Narrow Down Thousands of Franchises to Find the One That’s Right for You

    4. Do I have the capital to start a franchise?

    You should carefully consider your financial ability when starting a franchise. To understand the specific capital requirements for any particular franchise, you can consult Item 7 of the Franchise Disclosure Document, which details the Estimated Initial Investment. These are based on actual franchises and tend to be very accurate. However, make sure to build your own estimates, as these line items can vary significantly between franchisees.

    While there are always exceptions, investment ranges can commonly be broken down into three categories. These include self-employment or work-from-home models; scalable executive service models; and semi-absentee or semi-passive models:

    • Self-employment or work-from-home models with few or no employees that do not require customer-facing real estate generally range from $75,000 to $150,000 in total investment per territory or unit.
    • More scalable, equipment-intensive service brands that do not require customer-facing real estate tend to range from $100,000 to $350,000 per territory or unit.
    • Brick-and-mortar location-based franchises require more real estate investment but tend to be more semi-absentee and can range from $250,000 to $1 million or more per unit.

    5. How will I finance the franchise?

    There are many options to help you finance your new franchise. If you have a former 401(k) or IRA, you can roll over a portion of your retirement account balances in your new business’ stock tax-free. Candidates also use personal loans, such as a home equity line of credit (HELOC) or a securities-backed portfolio loan, which have the lowest debt costs and easiest access to capital.

    You can also obtain an SBA-guaranteed bank loan, which is a popular option. Many franchisors will have prearranged financing with preferred vendors. Regardless of your financing choice, it is important to consider it ahead of time to make sure your business and personal needs are covered during your business launch.

    6. What franchise industry is right for me?

    Many of my candidates are looking for a business they’re passionate about. Of course, you need to believe in your product or service, but it doesn’t need to be your hobby. It is the business model that needs to fit. For example, I owned a fitness franchise. While I’m not a fitness junkie, the business model fit and seeing the joy in our clients transforming their health was very gratifying.

    Going through a deliberate process of investigating business models that fit your criteria and comparing them with the help of an experienced consultant is often the best way to find the right industry. By focusing on the business model and your role as a franchise owner, you will find the industry can be a secondary criterion.

    Related: Check Out the Fastest-Growing Franchises In 2023

    7. Do I believe in continuous improvement or “if it isn’t broken, don’t fix it?”

    If you have a more reactive style, franchise ownership is likely not for you. Owning a franchise requires you to constantly look at the business with an eye toward continuous improvement — making each process, such as sales, marketing, operations or customer service, continuously better for your customers. Having a proactive approach versus a reactive approach is critical to success.

    While there are many considerations in starting a new business, fundamentally it is an emotional decision that starts with you doing some self-reflection. Asking yourself the hard questions will let you know if you’re emotionally ready to take the next step.

    If you’re not ready, consider what changes or milestones in your life need to be achieved so you’re ready when the time comes. If you find you are excited and ready to move forward, seek out the resources needed to explore franchising and commit to follow through the process. This will bring you the confidence you need to find success.

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    David Busker

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

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

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

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

    Franchising is a good fit for an opportunity-seeking entrepreneur

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

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

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

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

    Newly laid-off professionals make the best franchise candidates

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

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

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

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

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

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

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    Jeff Brazier

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  • How to Protect Your Business From Internet Brownouts | Entrepreneur

    How to Protect Your Business From Internet Brownouts | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In today’s digital age, businesses rely heavily on the internet for various aspects of their operations. A smooth and uninterrupted internet connection is essential for productivity, communication and customer satisfaction. However, internet brownouts — temporary reductions in network quality — pose a significant threat to businesses. It’s crucial to explore the causes of internet brownouts, their impact on businesses and strategies to mitigate their effects.

    What are internet brownouts?

    Internet brownouts are periods of suboptimal network performance, also known as “unusable uptime,” that can result in slow browsing, poor video quality and dropped connections. Unlike internet blackouts, where the connection is entirely lost, brownouts are characterized by a temporary decrease in the quality and speed of the internet connection. These disruptions can last for a few seconds to several hours, causing various inconveniences and potential losses for businesses. Without access to strong internet connections, your company might struggle to meet the demands of users and employees alike, leading to lost production and revenue.

    Related: How to Bulletproof the Internet Connectivity in Your Office

    Why do internet brownouts happen?

    It can be frustrating to encounter an internet brownout, and there are a variety of reasons why it might happen. Internet brownouts can occur due to several factors, including:

    1. Network congestion: The internet relies on a vast network of interconnected devices and servers to facilitate data transmission. As more users and devices connect to the internet, bandwidth demand increases, leading to congestion and reduced network performance.

    2. Infrastructure limitations: Aging network infrastructure and outdated equipment can struggle to handle modern internet traffic and demands, leading to bottlenecks and brownouts.

    3. Cyber attacks: Distributed Denial of Service (DDoS) attacks aim to overwhelm targeted servers or networks with an influx of traffic, causing performance degradation or complete outages.

    4. Natural disasters and human error: Events such as earthquakes, floods or accidents can damage network infrastructure, causing temporary internet disruptions.

    5. Maintenance and upgrades: Routine maintenance and upgrades to the internet infrastructure can sometimes result in temporary outages or reduced performance.

    Regardless of the cause of the internet brownout, it can have a significant impact on your business, so it is crucial to plan accordingly.

    How internet brownouts impact your business

    Internet brownouts can have severe consequences for businesses. The nature of the consequences will depend on the severity of the internet brownout and the specific demands of your business, but some of the most significant consequences could include:

    1. Lost productivity: Slow internet connections can hinder employees’ ability to access cloud-based services, collaborate or perform their tasks efficiently. Lost productivity can result in missed deadlines, frustration and increased costs.

    2. Decreased customer satisfaction: In a world where customers expect instant access to information and services, internet brownouts can lead to slow response times, dropped connections and unsatisfactory experiences, causing customers to lose trust in your business.

    3. Lost revenue: Online sales can be severely impacted by internet brownouts, as customers may abandon their shopping carts or experience transaction failures. Additionally, businesses that rely on real-time data or remote services may face significant operational challenges during brownouts.

    4. Reputation damage: Repeated instances of internet brownouts can damage a company’s reputation, as customers and partners may perceive the business as unreliable or unprofessional.

    To mitigate the consequences of an internet brownout, it is crucial to develop a comprehensive strategy. By being proactive, it is possible to prepare for such a brownout and keep your business on track.

    Related: 4 Tips to Optimize Your Office’s Network Infrastructure

    How to stop internet brownouts from impacting your business

    To minimize the impact of internet brownouts on your business, there are a variety of strategies that could prove helpful. Some of the top examples include:

    1. Invest in robust network infrastructure: Upgrading your network infrastructure, including routers, switches and cabling can improve the stability and performance of your internet connection. Investing in high-quality equipment and working with a reliable internet service provider (ISP) can help prevent brownouts.

    2. Implement network redundancy: Diversify your internet connections by using multiple ISPs or alternate connection types, such as wired and wireless options. This redundancy can ensure that if one connection is affected by a brownout, your business can continue operating with minimal disruption.

    3. Upgrade your hardware: Invest in higher-grade hardware to ensure reliability and avoid costly network failures. In addition, enterprise-grade internet connections have become more affordable with the drop in fiber optic cable prices, making them a viable option for small businesses.

    4. Optimize bandwidth usage: Implement Quality of Service (QService) policies to prioritize critical business applications and limit non-essential traffic. For example, encourage employees to avoid bandwidth-heavy activities, such as video streaming or large file downloads, during peak business hours.

    5. Develop a disaster recovery plan: A comprehensive disaster recovery plan can help your business respond quickly and effectively to internet disruptions. This plan should include guidelines for employees, alternate communication methods and backup systems for critical data and applications.

    6. Consider using a Content Delivery Network (CDN): CDNs distribute your website’s content across multiple servers located in different geographic locations. By serving content from a server closest to the user, CDNs can help mitigate the impact of network congestion and improve your website’s performance during internet brownouts.

    7. Employ a backup power connection: An Uninterruptible Power Supply (UPS) provides backup battery power to your IT systems, ensuring a seamless transfer to the battery supply in case of a power outage. For longer-lasting power failures, consider investing in backup generators.

    8. Switch to cloud or colocation services: Protect your business from data loss due to natural disasters or power surges by moving essential documents to cloud servers or colocation centers. These facilities offer enhanced security, data backup in diverse geological regions and technical support to manage potential problems.

    Internet brownouts are an unfortunate reality of today’s digital landscape. While it may be impossible to eliminate them entirely, businesses can take steps to minimize their impact by investing in robust network infrastructure, implementing redundancy and adopting best practices for bandwidth management. By being proactive and prepared, your business can continue to thrive even in the face of temporary internet disruptions.

    Related: 12 Surprising Office Wi-Fi Killers

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    Greg Davis

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

    How Making This Critical Hire Will Improve Your Franchise | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

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

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

    Related: 4 Key Functions of a Chief Financial Officer

    How a strong CFO can improve your franchise

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

    • Strategic thought partner for the entire management team

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

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

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

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

    • Drive supply chain improvements and better vendor pricing

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

    • Establish lending programs to support franchisee expansion

    • Team leadership; build financial acumen across the business

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

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

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

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

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

    Key attributes in emerging franchise CFO hire

    • Previous senior finance leadership experience — minimum 5 years

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

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

    • Experience working in a startup environment

    • Franchise or multi-unit experience is a plus

    • Accounting background preferred over finance background

    • Good financial modeling skills

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

    • Ability to build a strong, profit-focused team

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

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

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

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    Alicia Miller

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  • The Lowcountry Has the Solution to Deer Damage With New Deer Solution Franchisees

    The Lowcountry Has the Solution to Deer Damage With New Deer Solution Franchisees

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    Press Release
    •

    May 17, 2023 09:00 EDT

    Longtime Residents are Providing Homeowners the Protection They Need


    CHARLESTON, S.C., May 17, 2023 (Newswire.com)
    –
    Local residents Keith and Regan Farfone are tackling the deer damage issue in the Lowcountry one property at a time. The Farfones recently launched their new business Deer Solution, a deer repellent service franchise that helps shield landscapes.

    The Farfones explained the reason behind their choice. “So many things about Deer Solution appealed to us, but the most important one is we know that damage to shrubs from deer is a huge issue in our territory. The only known solution is installing plants that deer are not attracted to, which limits options when landscaping. We know firsthand from friends and family that maintaining a beautiful yard is next to impossible while combating the deer population. We are thrilled to be able to offer an affordable, all-natural solution to the problem.”

    Keith has lived in Charleston the majority of his life and has spent many years in the marine industry. Regan has worked as an event planner, and is currently a middle school English teacher. Both are excited to serve their community with exceptional service. 

    The co-founders of Deer Solution, Jaime and Kris Goodrich, are delighted to have awarded their fourth franchise to the Farfones. Regan’s attention to detail and Keith’s experience in sales make them a great pair, according to Kris Goodrich. “These two will undoubtedly be able to create a successful business when you consider the quantity of deer damage that exists throughout South Carolina.”

    Deer Solution of the Lowcountry services customers in and around Charleston, South Carolina. Homeowners interested in service can call 888-503-8313 for a free estimate or visit the company website: www.deersolution.com.

    About Deer Solution

    Deer Solution is a locally owned and operated deer damage control business. Deer Solution’s all-natural proprietary repellent is family, pet and environmentally friendly. Its pleasant-smelling repellent dries virtually clear and odor-free, and won’t harm the plants or deer. For more information on Deer Solution repellent services for your home or workplace, visit www.deersolution.com. To find out more about the franchise opportunity, visit www.deersolutionfranchising.com.

    Source: Deer Solution

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  • Go From Entrepreneur to Franchisee in 9 Steps | Entrepreneur

    Go From Entrepreneur to Franchisee in 9 Steps | Entrepreneur

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    Starting a business is no easy feat. It’s probably why so many aspiring entrepreneurs look for opportunities to own a franchise.

    Purchasing a franchise means you’re buying into a proven business model. In other words, you become immediately associated with a recognized brand name, an established customer base and ongoing support and mentorship from the franchisor.

    Here’s the problem: Becoming a franchise owner isn’t as simple as walking into a branch of your favorite franchise and simply signing up. There are a few important actions you need to take to go from aspiring entrepreneur to successful franchisee.

    Not sure where to begin? We outlined nine steps below to get you 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.

    1. What’s your budget?

    Franchises don’t come cheap, especially when you factor in the necessary franchisee fees and ongoing expenses.

    Franchise fees can range from a few thousand to several hundred thousand dollars, depending on the brand and industry. Other expenses — such as rent, inventory, marketing and employee salaries — contribute to the initial and ongoing costs, so be sure to set your budget accordingly.

    So how much money are you comfortably willing to spend? Consider your personal finances and any loans or investments you may need to make before you get a franchise up and running.

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

    2. What industry suits you best?

    Once you’ve determined your budget range, it’s time to start thinking about what type of franchise you’d like to own and operate.

    Franchises are available in nearly every industry, from fast food to fitness to tutoring services. What are your interests? Do you have experience or skills in a specific industry?

    You’ll want to choose an industry that both aligns with your passions and strengths and has a successful track record.

    3. Research potential franchisors

    You started broad — maybe you chose one or two industries to explore. Now it’s time to narrow your list to a few franchise options.

    Look for established, reputable brands and consider factors such as the franchisor’s financial stability, the number of franchisees in the system and the level of ongoing support and training offered.

    A good place to start your research is online. Look at company websites, review sites and recent news articles to get a better feel for the franchise you’re hoping to buy.

    Related: Busting Franchising Myths and Choosing the Right Opportunity

    4. Use Discovery Day to your advantage

    Many franchisors host in-person events to give potential franchisees a deeper look at their business model, operations and support structure.

    Also known as “Discovery Day,” you’ll typically meet with franchisor representatives as well as tour locations and learn more about the day-to-day operations of the business.

    Be sure to ask plenty of questions and take detailed notes to see if you and the franchisor are a good fit for each other.

    5. Don’t be shy to speak with current franchisees

    Don’t be intimidated by other franchisees. In reality, other franchisees are an integral resource when deciding if a certain franchise is right for you.

    Most franchisors will provide a reference list of current franchisees for you to speak with — or you can take it upon yourself to talk to other franchisees independently via online directories or local branches.

    When speaking with current franchisees, be sure to ask about their experiences with the franchisor, the level of support they’ve received and any challenges they’ve faced.

    You should also inquire about their financial performance and whether they believe they’ve received a good return on their investment.

    Related: Everything You Need to Know About Franchise Law.

    6. Review the Franchise Disclosure Document (FDD)

    Another useful resource for researching franchisors is the Franchise Disclosure Document (FDD).

    The FDD is a legal document that franchisors are required to provide to potential franchisees. It includes detailed information about the franchisor’s history, financial performance, franchise fees and royalties and any additional information you may need to know about the franchise opportunity.

    The franchise must share the FDD with you at least 14 days before any contracts are signed, giving you enough time to review it with professional and legal guidance.

    7. Evaluate and analyze the franchise agreement

    The franchhise agreement is a legal contract between you and the franchisor that outlines the terms and conditions of the franchise relationship. It’s helpful to review this with a legal professional.

    Pay close attention to key provisions, such as fees and royalties, territorial rights and obligations for ongoing support and training. Should you have any questions or concerns about the agreement, hold off on signing and address them with the franchisor.

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

    8. Secure funding

    Remember the budget you set? It’s time to finalize your funding. Depending on your budget and the franchise you’ve chosen, you may need to secure financing through a traditional loan, with investors or directly with the franchisor.

    9. Launch your franchise

    Besides requiring money, franchising demands a significant amount of time, especially in the early stages. You’ll need to hire and train employees, establish processes and procedures and manage day-to-day operations.

    But if you’ve chosen a franchise concept you believe in, you’ll likely want to spend as much time as needed ensuring it becomes an all-out success.

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

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    Clarissa Buch Zilberman

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  • Why HteaO is a top 10 New & Emerging Franchise | Entrepreneur

    Why HteaO is a top 10 New & Emerging Franchise | Entrepreneur

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    How does a drive-thru iced tea franchise sell more than 400 franchises in five years, and earn the No. 9 spot on our Top New & Emerging Franchises list? We spoke with HTeaO’s chief development officer Andrew Hawes to learn why franchisees see the brand as a sweet opportunity.

    How did HTeaO get started?

    Our founder, Gary Hutchins, has owned a hamburger restaurant in Amarillo, Texas, called Buns Over Texas, since the 80’s. He started selling iced tea there in the mid-2000’s. And around the time of the last recession in 2008, he started noticing people were coming in and instead of spending 10 bucks on a hamburger, they were just spending two or three bucks on an iced tea. So in 2009 he added on 1,200 square feet to his hamburger restaurant and launched Texas Tea, offering eight flavors of iced tea from a drive-thru.

    His son Justin, who is now our CEO, joined him and his mom in 2012, and that’s when they launched the first prototype of a freestanding Texas Tea. And once we opened that, we realized we might have something special that we might be able to franchise. So we spent five or six years building the franchise model and the support system and the infrastructure, and then launched the franchise opportunity in 2018, at the same time that we rebranded Texas Tea to HTeaO.

    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.

    Do you think this is a concept that can go nationwide?

    I think at some point it will, and we’ve even had some interest, crazily enough, from places like North Dakota and Idaho. But right now our focus is the southeastern United States, what I would call “tea drinking country.” The barrier to entry is much less because you don’t have to explain what iced tea is someone in Georgia. So our growth strategy, still being an emerging young brand, is to build our brand and our awareness in the southern U.S., and then once we have that exposure and have a thousand locations open, we can get into some of the more northern states that aren’t as familiar with iced tea yet. And one of the main reasons we brought on what we call our brewhouse offerings, which is our hot tea and coffee offerings, along with increasing our morning traffic, was to eventually go into those markets where hot drinks are more popular.

    What are your goals for the brand for 2023 and beyond?

    We have 68 locations open and operational today, and 93 under construction, so that should bring our total to about 160 stores open in the next 12 months. Beyond that, we’ve already awarded 430 franchises in total, and we’re looking at awarding 175 more this year. The plan is to have 500 locations open by the end of 2026.

    To what do you attribute that growth?

    It’s a model built around the most profitable part of a restaurant. Any restaurants owner will tell you beverages are where the money is made. We eliminated all of the frustration and equipment that goes with food preparation. And it doesn’t take a rocket scientist to realize that water, tea, and ice are not too terribly expensive, so the margins can be very lucrative. I think people can visualize, Hey, this is something I can do. I don’t need culinary experience or a background in restaurant management.

    Related: How to Choose the Best Structure for Your Franchise Company

    What types of franchisees has HTeaO attracted?

    In the beginning, it was a lot of second career type people — people who said, “I’d love to build a business for myself, but I need that support mechanism of a franchise.” So for the first few years, our growth was heavily weighted toward single-unit operators, and they’ve been fantastic. Now that we’ve built some brand awareness, we’re starting to attract multi-unit, multi-brand franchise partners, which is extremely humbling. I still view us as a very young, unknown brand, so to have someone with 20 or 30 years of experience in the franchise space take a leap of faith means a lot to our team. We’re still going to welcome single-unit franchisees, but bringing on multi-unit partners who can do five to 20 stores over a shorter period because they have the infrastructure already in place is really going to be key to our growth going forward.

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    Tracy Stapp Herold

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  • New Pepp Rally Pizza Offers Enhanced Taste, Texture, and Overall Appeal of Conventional Pepperoni Pizza

    New Pepp Rally Pizza Offers Enhanced Taste, Texture, and Overall Appeal of Conventional Pepperoni Pizza

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    Pizza Inn’s New Specialty Pizza Features a Sweet-Heat Sauce and Three Kinds of Pepperoni on a Thin and Crispy Crust


    DALLAS, May 15, 2023 (Newswire.com)
    –
    Pizza Inn, America’s Hometown Pizza Buffet, today introduced The Pepp Rally Pizza at all U.S. locations, as well as those in Oman, Saudi Arabia, and New Zealand. Created with considerable consumer input, the new specialty pizza features a thin, crispy crust glazed with a sweet-heat sauce made of Mike’s Hot Honey, Yellowbird Sriracha, and Pizza Inn’s own signature pizza sauce, then topped with 100% whole milk mozzarella and three different cuts of pepperoni, including classic slices, cup-shaped pepperoni with edges that curl to receive a slight sear, and Pizza Inn’s first-ever julienned pepperoni that bakes quickly to provide a flavorful crunch.

    “The best just got better,” states Pizza Inn’s Chef, Patty Scheibmeir. “64% of pizza lovers prefer pepperoni pizza over any other, so we turned to the public to help us transform the ever-popular and ubiquitous pepperoni pizza into a high-quality, premium pizza with an improved flavor profile, a more interesting texture combination, and undeniable craveability. They helped us create this slightly sweet and mildly spicy pizza with a cracker-like crust, and pepperoni that provides three completely different textures.”

    The company conducted consumer taste panels with different variations of dough, sauce, and toppings, resulting in the new Pepp Rally specialty pizza. Seventy percent of the test sample declared that the honey-sriracha sauce provided just the right amount of savoriness, spiciness, and tang without being too hot or spicy. In fact, many of the research participants said they would be “very likely” to visit or order from Pizza Inn specifically for the new pizza, alone. 

    “The launch of our Pepp Rally Pizza is part of the next wave in our brand renovation plan,” said CEO of Pizza Inn’s parent company, RAVE Restaurant Group, Brandon Solano. “We have updated our imagery, streamlined our operations, and launched the next era of growth for our company. By listening to our customers, we are now offering the precise product improvements they desire, not just those created in and recommended by test kitchens. I think it will be the best pepperoni pizza our customers have ever had and will further endear us to past and future fans of the Pizza Inn brand.”

    A large, thin crust Pepp Rally pizza, available for carryout or delivery, has launched with a promotional price of $12 at U.S. locations. The introductory price is valid through July 15, 2023. To promote the new pie, Pizza Inn has invited local schools, sports teams, and community groups to partner with them for festivals, sporting events, and pep rallies. Many of these events will feature new 20-foot inflatables of the brand’s pizza-making mascot, JoJo.

    Pepp Rally pizzas will be available through third party food delivery platforms, where available, including DoorDash, UberEats, and Grub Hub, with applicable additional fees. The new pepperoni toppings and honey-sriracha sauce are also now available to order on all of Pizza Inn’s build-your-own pizzas.

    For the restaurant nearest you, and more information in the entire menu, visit pizzainn.com. Franchising information can be found at pizza.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.

    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.

    Source: Pizza Inn

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  • How to Write a Business Plan for Your Franchise | Entrepreneur

    How to Write a Business Plan for Your Franchise | Entrepreneur

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    You’re set on becoming a franchisee. You may think it’s time to call a franchisor, tell them you’re interested, and get funding from your local bank, right? Wrong.

    If you’re considering buying a franchise, you’ll need to write a thorough business plan before moving forward.

    A business plan is a detailed document that describes how your business will achieve its goals. Consider it an essential tool for any business owner — including franchisees!

    Sound daunting? It can be. But it’s a crucial and necessary step in starting your own business. Plus, becoming a franchisee means that the franchisor will provide some of the strategies, plans and overall business information, with some minor tweaks for your specific market.

    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.

    Start with comprehensive research

    Before you can begin writing your franchise business plan, you need to gather information about your franchise business. Research the industry, market trends and competitors in the area. You should utilize a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the business, as well.

    Next, research the franchisor’s history, vision, mission and values. This will help you understand the franchisor’s expectations and see if your goals align with the brand. You may have already done a lot of this research when narrowing down your franchise choices.

    Related: The 4 Biggest Myths About Franchising

    Define your business concept and target market

    Your business concept should include details about your product or service, pricing strategy, location, unique selling proposition and market advantages.

    Much of this information will be supplied by your franchisor. However, make sure to tweak it correctly for your specific location and audience.

    Develop a financial plan

    A financial outline is a critical component of your franchise business plan. It should include details about your startup costs, ongoing expenses, revenue projections and profitability.

    You should also share cash flow, balance sheets and income statements here. With these documents, you can readily identify any gaps in your business and develop strategies to address them.

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

    Outline your marketing and sales strategy

    You may get a headstart from your franchisor on the marketing and sales strategy. This is where you’ll want to include more information about your target audience, marketing channels and tactics to promote your business.

    From a sales strategy perspective, include your pricing strategy, sales team structure and sales targets that are tailored to your area.

    Develop an operations plan

    Your operations plan should include details about your day-to-day work, staffing requirements and supplier relationships. You should also outline any technology and equipment needs, inventory management and quality control procedures, some of which your franchisor may dictate.

    Create a management team and personnel plan

    Your management team and personnel plan should detail the leadership structure of your business, each team member’s role and responsibility and the qualifications and experience needed for each position.

    You should also outline a staffing plan, which will include your recruitment strategy, employee benefits and training and development programs.

    Related: The 4 Biggest Myths About Franchising

    Create an executive summary

    An executive summary is literally a summary of your business plan that will provide all the necessary information to someone who only has a few moments to review your business plan. It should summarize the key points of your franchise business plan and research.

    Get started by outlining your business plan

    A franchise business plan, at the minimum, should include the following sections:

    • Executive Summary: This section provides a brief overview of your business, your mission statement, goals and target market.
    • Company Description: This section includes more information about your business, such as what you do or sell, your company history and your management team.
    • Market Analysis: This section analyzes the market for your products or services, including your target market, competition and competitive advantage.
    • Operations Plan: This section describes how your business will operate, including your location, your marketing and sales strategies and management and staffing plan.
    • Financial Plan: This section projects your business’s financial performance, meaning your revenue, expenses and profit.
    • Appendix: This section includes supporting documents, such as financial statements, marketing materials and legal documents.

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

    A business plan will help you succeed

    Writing a franchise business plan is a critical step in becoming a successful franchisee. It requires comprehensive research, a well-defined business concept, a solid financial plan, a strong marketing and sales strategy, a detailed operations plan and a competent management team.

    Remember: It’s a living document, so be sure to update it regularly as your business grows and changes. This will ensure that your plan always reflects the current state of your business.

    Tackle a business plan logically and seek help from an expert or your franchisor, as necessary. Then you’re off to get your loan, finish your applications and open your doors!

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

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    Clarissa Buch Zilberman

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  • RAVE Restaurant Group, Inc. Reports Third Quarter Results

    RAVE Restaurant Group, Inc. Reports Third Quarter Results

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    DALLAS, May 4, 2023 (Newswire.com)
    –
    RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the third quarter of fiscal 2023 ended March 26, 2023.

    Third Quarter Highlights:

    • Total revenue increased by $0.4 million to $3.0 million for the third quarter of fiscal 2023 compared to the same period of the prior year.
    • Adjusted EBITDA remained stable at $0.6 million for the third quarters of both fiscal 2023 and fiscal 2022.
    • Pizza Inn domestic comparable store retail sales increased 15.6% in the third quarter of fiscal 2023 compared to the same period of the prior year.
    • Pie Five domestic comparable store retail sales increased 8.1% in the third quarter of fiscal 2023 compared to the same period of the prior year.
    • The Company recorded net income of $0.3 million for the third quarter of fiscal 2023 compared to net income of $0.5 million for the same period of the prior year.
    • Income before taxes decreased by $0.1 million to $0.4 million for the third quarter of fiscal 2023 compared to the same period of the prior year.
    • On a fully diluted basis, net income decreased by $0.01 to $0.02 per share for the third quarter of fiscal 2023 compared to the same period of the prior year.
    • Cash and cash equivalents were $3.9 million at March 26, 2023. 
    • Pizza Inn domestic unit count finished at 122.
    • Pizza Inn international unit count finished at 33.
    • Pie Five domestic unit count finished at 30.

    “Our third quarter results mark 12 consecutive quarters of profitability for RAVE driven by strong top line, strategic investing in the future of our business, and strong cost controls,” said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc. “Our third quarter showed continued strong same store sales growth at both Pizza Inn and Pie Five, EBITDA stability as well as strong operating cash performance.

    “We continue to make investment decisions with a goal of driving long-term performance and competitiveness,” Solano said. “We continue to innovate and invest in key initiatives we believe will provide returns long after our initial investments. While our Q3 same store and total sales were remarkably strong, Q3 pre-tax profit was below year ago as we invested in our new image prototype including preparation for our first reimages of existing franchise buffets, construction of new Pizza Inn Buffets, technology and the install of Revel point-of-sale, and in strategic positions and travel to support these initiatives.

    “In fiscal 2022, we delivered the first Pizza Inn buffet unit count growth in 24 years. In Q3, we did not open any buffets but closed zero buffets, leaving us net positive in buffet store count year to date. We continue to focus on building our strong pipeline of new buffet stores, including our first new-image Pizza Inn currently under construction and slated to open in May in Asheboro, North Carolina. We are also poised to begin scale reimage efforts at Pizza Inn buffets in the coming months, providing customers with an enhanced Pizza Inn experience across our footprint.”

    Solano continued, “The restaurant industry continues to abandon dine-in, leaving us an opportunity to win with our differentiated strategy, focusing on the value and variety of Pizza Inn’s buffet while opportunistically capturing delivery and carry-out. We are also targeting geographies where successful Pizza Inn buffets once stood, opening stores to adoring fans who are excited to welcome back Pizza Inn, validating our belief in the strong ‘latent brand equity’ of Pizza Inn.

    “The most significant Pie Five menu and operations changes in our history have been rolled out to all traditional stores and we are seeing strong consumer and franchisee acceptance and an improvement in same store sales consistent with our testing. These menu changes included the elimination of large pizzas, reinforcing our position as an individual pizza brand where everyone gets what they want with no compromises. In February, we rolled out an initiative to capture the family or group occasion lost with the elimination of large pizzas called the Pie Five ‘Free 4th All,’ delivering a fourth pizza free when consumers buy three pizzas. The Free 4th All rollout results have been positive, driving significant ticket and value for consumers, consistent with our testing.

    “I’m proud of our results and the inspired efforts of our team members and franchisees. They are a gritty, resilient bunch and I feel great about our future.”

    Clint Fendley, Chief Financial Officer of RAVE Restaurant Group, Inc., further elaborated, “We are pleased to report our 12th consecutive quarter of profitability and another solid quarter of same store sales for both of our segments. During fiscal 2023 and continuing throughout the third quarter, we have strategically invested in additional team members, critical technologies and an enhanced store experience as we prepare for new Pizza Inn buffet openings, which are expected during our upcoming fourth quarter. 

    “These investments have negatively impacted our third quarter net income, however, it should be noted that the primary driver of our third quarter net income decline was an increase in our income tax expense of $112,000. This increase is the result of the full recognition of our deferred tax asset which occurred during the fourth quarter of 2022 as a result of Rave’s improved long-term growth and earnings prospects. The primary driver of the increase in income tax expense for the third quarter was for federal taxes, which represents a non-cash expense for the Company.

    “As we look forward to the fourth quarter, we are excited to open our new Pizza Inn buffets and share an enhanced dining experience with our customers.”

    Non-GAAP Financial Measures

    The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for its financial statements prepared in accordance with generally accepted accounting principles.

    The Company considers EBITDA and Adjusted EBITDA to be important supplemental measures of operating performance that are commonly used by securities analysts, investors and other parties interested in our industry. The Company believes that EBITDA is helpful to investors in evaluating its results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. The Company believes that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes.

    “EBITDA” represents earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” represents earnings before interest, taxes, depreciation and amortization, stock-based compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs. A reconciliation of these non-GAAP financial measures to net income is included with the accompanying financial statements.

    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, future economic, competitive and market conditions, regulatory framework and future business decisions, 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 and, therefore, 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 the objectives and plans of RAVE Restaurant Group, Inc. will be achieved.

    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-made dough, 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.

    Source: RAVE Restaurant Group, Inc.

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

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

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    Image Credit: Zohar Lazar

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

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

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

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

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

    Lesson 1: Ask for more.

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

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

    Lesson 2: Be creative, within boundaries.

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

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

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

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

    Lesson 3: Grow alongside everyone else.

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

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

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

    Lesson 4: Make smart lease deals.

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

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

    Image Credit: Zohar Lazar

    Lesson 5: Be the start of a virtuous cycle.

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

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

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

    Lesson 6: Take smart risks.

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

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

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

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

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

    Lesson 8: Make data-driven decisions.

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

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

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

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    Kim Kavin

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  • Benton, Arkansas, is Home of New Pizza Inn Buffet

    Benton, Arkansas, is Home of New Pizza Inn Buffet

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    DALLAS, April 27, 2023 (Newswire.com)
    –
    Pizza Inn, America’s Hometown Pizza Buffet, and Franchisee Scott Brake announced the opening of Pizza Inn at 20770 Interstate 30, Suite 250, near the intersection of Alcoa Road and Arkansas Highway 5. The buffet-style restaurant features signature pizzas, traditional pastas, and unique desserts for dine-in, delivery, carryout, and catering. Customers can also enjoy a robust all-you-can-eat fresh salad bar, with a plentiful array of house-cut ingredients, popular toppings, and six different dressings, including house-made ranch. Employing about sixty Benton residents, the restaurant and its full buffet will be open every day from 11:00 am to 9:00 pm. 

    According to the CEO of Pizza Inn’s parent company, RAVE Restaurant Group, Brandon Solano, “Pizza Inn has remained a hometown favorite in markets across the Southern United States for 65 years. Customers love our pizzas with house-made dough we make fresh at every store, every day, 100% whole milk mozzarella shredded in house, and the opportunity to top them with a variety of freshly cut toppings. The fact is, many people fondly remember Pizza Inn as an impactful part of their childhood. That’s why we’re bringing our updated look and beloved business model to markets that were previously part of our geographic footprint, like the Little Rock area. We believe we can recapture fans and leverage our ‘latent brand equity’ in these communities.”

    The introduction of a full-service Pizza Inn buffet in Benton further illustrates the company’s proactive strategy to reclaim a leadership position within the restaurant industry. During the past two years, the brand has introduced a new prototype and imagery, announced positive net growth of buffets, reported consistent sales increases, and garnered the attention of franchisees around the world.     

    Adds Solano, “This is the second new Pizza Inn buffet to open in as many weeks. Our healthy pipeline of new stores indicates our strategy is working. We’ve always focused on really good food, value, and convenience. However, I believe the warmth, authenticity, and emotional appeal of our Pizza Inn brand is what our customers most appreciate. Our restaurants have been called ‘America’s Hometown Pizza’ for more than sixty years because we provide an amazing, family-focused pizza experience that makes us the place for people of all ages to meet, relax, and celebrate.”

    The Benton Pizza Inn spans 2,780 square feet and can seat 119 guests. It will offer its specialty pizzas including Chicken Fajita, Loaded Baked Potato, Buffalo Chicken, and Taco pizza, as well as one-of-a-kind desserts, called “Pizzerts”, and video games.

    Regular specials include a Monday Night Seniors Buffet and Tuesday Night Kids Buffet with the purchase of an adult buffet. All customers are invited to join Pizza Inn’s Loyalty Punch Card Program to earn a free buffet.

    For the restaurant nearest you, and more information on the entire menu, visit pizzainn.com. Franchising information can be found at pizzainn.com/franchise.

    Source: Pizza Inn

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

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

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

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

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

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

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

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

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

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

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

    2. Take a hybrid approach

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

    Related: Everything You Need to Know About Franchise Law.

    3. Adapt to unique market conditions

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

    4. Create a strong personal connection with customers

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

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

    5. When in doubt, embrace simplicity

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

    Related: Busting Franchising Myths and Choosing the Right Opportunity

    6. Anticipate your customers’ needs.

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

    7. Protect and grow the brand

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

    8. Lean into the community

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

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

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    Clarissa Buch Zilberman

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  • How to Maximize Each Stage of Your Franchise Sales Funnel Using Video | Entrepreneur

    How to Maximize Each Stage of Your Franchise Sales Funnel Using Video | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Over the past decade, selling franchises has become an extremely competitive business, and any advantage that one brand can develop, cultivate and deploy can make or break annual sales goals. Now more than ever, video marketing and production is beginning to fill that void. According to an internal survey from Franchise IQ, 87% of its customers indicated that the use of video — especially testimonials — was an important factor in their decision to purchase a franchise opportunity. Why is that? Because videos create lasting impressions in the minds of current and future customers.

    For franchisors, the full version of the sales funnel is an important aspect of the brand’s marketing program and initiatives. From a comprehensive standpoint, it’s important to deploy resources that have a profound effect during every stage, including the top, middle and bottom of the funnel. Visuals — whether in print or video — are an incredibly powerful tool for conveying information and creating a connection with potential customers and franchisees —which isn’t surprising considering people spend a third of their time online watching videos.

    Here, we’ll look at the specific type of video content that can help franchisors maximize their sales funnel potential at each stage of the buyer’s journey. As you’ll see, video just happens to be one aspect of the marketing mix that can be initialized in all three sectors. Here’s how:

    Related: Connecting With Your Target Audience Through Video

    Top of the funnel videos

    At the top end of your franchise sales funnel, the most valuable type of video simply introduces customers and prospects to your brand. Videos featuring the brand’s CEO or founder are great for this purpose because they give viewers an understanding of who is behind the company while creating a personal connection. But the C-suite is by no means the only recommended option for spokespersons. It can also be effective to feature current franchisees that have developed and maintained a successful operation under the brand’s watchful eye.

    Additionally, this stage is also an opportunity to create videos that respond to the most common objections prospects may have about a particular franchise opportunity. Lastly, for the top end of the funnel, it’s recommended that brands develop videos that cover the many different candidate personas, for the purpose of establishing a personal connection with prospective franchisees. Ultimately, the top of the funnel is where brands should showcase their story, explained in simple terms that are easy to comprehend and evaluate.

    Middle of the funnel Videos

    As for the middle of your sales funnel, this is a great opportunity to focus on building trust between the franchisors and potential candidates. This is precisely where franchisee testimonial videos come into play. How so? Because this is the moment to demonstrate how real entrepreneurs have benefitted from becoming part of your growing franchise family.

    The middle of the funnel can also be a suitable time to feature videos that reveal the actual level of support candidates can expect from the brand. These videos can be extremely convincing because they show exactly whom the prospective owners will be working with on a day-to-day basis once they themselves become owners.

    Another effective middle of the funnel video includes the popular “day-in-the-life” montages, featuring typical routines at the office — or home office if it’s a remote-based concept. This is an opportunity for candidates to get a sense of what their own lives might be like as owners of the brand.

    One caveat here: Don’t skimp on the storytelling aspect of this stage. You don’t exactly want a movie-length segment, but it’s important for people to see something that truly reflects franchise ownership with the brand. Done right, this video can really paint a picture, convincing a candidate that they, too, can succeed as a franchise owner and enjoy a better life and future.

    Related: Why Franchise Brands Need to Start Utilizing Video Marketing

    Bottom of the funnel videos

    When it comes to the bottom of your sales funnel, this is the time to create hype about the impending discovery day. Why is this important? Because it’s the literal crossroads where potential candidates make their final decision on whether or not to join your growing franchise family!

    What might a good hype video look like? A great way to approach this stage is a video that demonstrates all there is to learn about being a part of the franchise family — especially the nitty gritty details like systems and operations. Quick jump cuts of interrelated scenes can not only be effective but entertaining as well!

    To close out examples of good bottom of the funnel videos, it’s important to round out the whole experience. Make sure your potential customers know they’ll soon be welcomed into the franchise family. A great example is a quick “sizzle-style” highlight reel highlighting all of the corporate employees working as a team. A “welcome to the family” montage might just be the emotional closer you need to get that candidate to sign on the dotted line.

    More and more, video content is proving its worth as an effective tool for engaging customers and increasing conversions. It can be a vital part of any marketing strategy, but it’s proven exceptionally effective for franchisors. By taking a comprehensive approach that breaks down the type of videos you should be creating at each of the three sales funnel stages, you can be sure that your strategy is well thought out and well planned. Video is indeed a powerful medium. It’s quite an effective way to demonstrate to prospects that they aren’t just buying into a concept — they’re buying into a family that cares about their success as an entrepreneurial small business owner.

    Related: How to Create a Digital Marketing Funnel

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    Trevor Rappleye

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  • What Should a Franchise Agreement Contain? | Entrepreneur

    What Should a Franchise Agreement Contain? | Entrepreneur

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

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

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

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

    Franchise fees and ongoing royalties

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

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

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

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

    Territory and exclusivity

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

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

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

    Operating standards and training

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

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

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

    Intellectual property rights

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

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

    Term and renewal

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

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

    Related: The 4 Biggest Myths About Franchising

    Termination and default

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

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

    Related: Never Buy a Franchise Without Researching These 5 Sources

    Financial disclosures and obligations

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

    Advertising and marketing

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

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

    Key takeaways and what to do next

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

    Related: Busting Franchising Myths and Choosing the Right Opportunity

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    Clarissa Buch Zilberman

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  • How Marketing Automation Can Boost Your Franchise | Entrepreneur

    How Marketing Automation Can Boost Your Franchise | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When running a multi-location restaurant or franchise, owners and operators don’t have an excess amount of time to think about marketing. And not all franchise marketing solutions are created equal. Many “canned” marketing programs save time but are built on brand recognition only and will do little to drive revenue and increase loyalty to a specific location. It can feel challenging to implement marketing unique to one location over another when there are many surface-level similarities. Luckily, times have changed.

    Marketing through the use of integrated technologies such as WiFi, texting and digital displays provides the option for full automation while providing the delivery of highly targeted marketing messages that result in greater guest traffic and drive higher revenue at each franchise location. No, this isn’t a science-fiction hypothetical — it’s a reality with the use of innovative, integrated marketing technology.

    By gathering valuable customer data through onsite WiFi, franchises can build a fully automated and personalized experience for each customer while understanding what works and what doesn’t for a business’s marketing strategy. This article will discuss what integrated WiFi marketing automation is, how it works for multi-location restaurants or franchises and how to implement highly targeted marketing campaigns that generate more revenue.

    Related: Evaluating a Franchise’s Marketing Program

    What is marketing automation, exactly?

    Centralized multi-location restaurant or franchise marketing automation is accomplished by synching a location’s WiFi to a customer’s device (through free WiFi access) and then collecting the customer’s valuable data. From there, customers are then filtered, organized and analyzed individually by artificial intelligence (AI) to identify the behaviors of a customer and what message would most likely appeal to them.

    The data gathered and retained over this process also continues to grow as much as the business desires and as much as the customer is willing to participate — as customers can also partake in surveys or other key touchpoints for gathering qualitative information. Even if a customer decides they don’t want to participate in something such as a survey, their schedule behaviors for frequency, time of day, day of week or month, duration of their visits and other data remain to help provide them an experience tailored to their wants and needs.

    Should a customer go to several locations of the same multi-location restaurant or franchise over the course of their weekly or monthly routine, that information will also be retained. This enables the business to see which location is most efficient for that customer and incentivizes their visit to specific locations. By incentivizing their visit with a coupon or offer code for a free drink, sandwich or another item, it can direct a customer to a specific location that needs to increase guest-flow efficiency, ultimately helping the bottom line for that location as well. With marketing automation through integrated WiFi marketing technology, routine marketing tasks can be handled without the need for human supervision or hand-holding.

    To accomplish all this, it of course necessitates a willingness on the business owner’s part to accept the technology and implement it across their multi-location restaurants or franchises. This way, data can be stored and disseminated across locations and ensure a customer going to a location in North Dakota on a Monday can get the same personalized message that day as they would on a Tuesday in California. While the idea of machine learning and other buzzwords can sound intimidating, intelligent AI in automated marketing means a closer and more personal relationship with customers.

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

    How will I see it enhance my business?

    If a franchise or multi-location restaurant owner wants to take the next step and provide an immersive, personalized experience for their customers, integrated WiFi marketing and automation are the best option. According to a report from PWC, 82% of consumers would share some of their personal information to receive a more personalized customer experience. A personalized experience was also noted by 87% of respondents to PWC’s survey as one of the most important elements of the buying experience to them — meaning, people want to have an experience that only they can have, not the same cookie-cutter, one-size-fits-all approach many businesses take in messaging their customers.

    Using SMS messaging, email, social media and digital online displays, a business can send personalized messages that let their customers know individually that their wants and needs are seen and heard.

    For example, if a customer regularly purchases breakfast sandwiches and coffee in the mornings from a location, that franchise or multi-location restaurant can send an SMS message along the lines of, “Thanks for choosing us to start your day! Here’s a free coffee on us [link to post on social media for social gravity boost!]” Additionally, the AI in integrated WiFi marketing and automation recognizes that customer retention and re-acquisition are pivotal and will provide each customer type — including new, returning, regular and lost customers — an experience that best speaks to them.

    With lost customers vs. new customers, it’s important to remember there is a 60-70% chance of making a sale to a former customer — which, according to the book Marketing Metrics: The Definitive Guide to Measuring Marketing Performance, is much higher than the 5-20% chance a business has of converting a sale with a prospective new customer.

    Related: The Basics of Multi-Location and Franchise Marketing

    Marketing automation through integrated WiFi technology may sound and seem futuristic, but surprisingly, 76% of businesses have already adopted basic WiFi technology. However, most are missing out on the value of the integration of texting and digital displays for a comprehensive messaging solution. Inefficient spending of funds for marketing becomes a thing of the past with intuitive AI used in integrated WiFi marketing.

    In the digital age, businesses have an opportunity unlike any other time in history to make deep, lasting connections with their customers. Integrated and automated solutions allow WiFi and SMS messaging to engage the customer instantly and display on their social media and other online platforms to further the lines of communication and understanding between customer and business.

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    Stephen Gould

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  • 4 Essentials for Selecting the Perfect Business Real Estate | Entrepreneur

    4 Essentials for Selecting the Perfect Business Real Estate | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    You’ve heard the old saying, “You can’t judge a book by its cover.” Actually, that’s not always true; customers judge a book by its cover all the time. In many cases, your business’s real estate and its curb appeal are the first messages being sent. Do customers notice your establishment? Do they understand the business by looking at it from 500 feet away? Is its image compelling?

    That’s why the right real estate is often the first marketing tactic to consider — certainly for any retail or restaurant enterprise. If you don’t stand out, even on the busiest roads, you’re in trouble. That’s in part why, at Fransmart, we include marketing plans in the real estate approval process, because once a lease is signed on a bad property, it’s too late to fix.

    And here’s a chance to learn from my mistakes. Early in my career, I was opening a restaurant in Silicon Valley and secured a site directly across from Google’s headquarters. I was elated: The property tested off the charts in terms of population density and disposable income. What could go wrong?

    Here’s what we never considered: Google feeds their employees for free — employs world-class chefs to make incredible food throughout the day. We had direct access to one of the largest workforces in the country, and couldn’t break through because none of them were hungry. Dumb mistake.

    A bad site can never be cheap enough, while good sites pay you, so take your time to thoroughly vet locations, including carefully assessing the trade areas and traffic patterns at different parts of the day (and on several different days).

    A few other critical factors to keep in mind before locking your brand into its next location.

    Related: How AI Will Transform the Real Estate Market

    1. Access

    Most first-time business owners don’t realize that there are two sides to every street: a breakfast side and a dinner side. Starbucks, for example, is precise with placement — often sitting on busy roads that lead directly to freeways, and always on the side of the road that leads to the freeway in the morning. If your business isn’t positioned to take advantage of a target demographic while they’re on the road, then you’ve set it up for failure. Also, customers prefer right turns over lefts, and if a site requires a left turn to access, it better be a well-lit one.

    Lastly, with the rise of third-party delivery apps, a site must be convenient for delivery drivers and take-out orders. The wrong property could cause a logjam in the parking lot, causing customers and delivery drivers to avoid it.

    2. Visibility

    My business is located on a busy street in Scottsdale, Arizona named Scottsdale Road, with more than 50,000 cars traveling each way every day. Your business is a free billboard on such busy roads, so make sure the location stands out. Think about the streets you normally drive on, now try to remember which brands on them you recall (likely a small percentage).

    Know the area where you’re opening like the back of your hand. What are the traffic patterns and major landmarks? Placing your business where it can be seen by the most possible people should always be the goal.

    Also, consider orientation. The building should be oriented so that its branding is clear and easily seen. (Being in front of a strip center’s entrance would be a goal, for example).

    Related: 4 Reasons New Franchisees Fail (and How to Succeed)

    3. Co-tenancy

    There’s a potentially fatal incongruity in, say, placing a high-end hipster café in a K-Mart-anchored shopping center. A brand needs to be congruent with nearby businesses. It’s not enough to simply be in a strip center, busy mall or crowded airport.

    Certainly, the evolution of outdoor malls or other shopping centers has opened opportunities for restaurant and retail franchises to find a home, but the downside is that competition has never been higher. So, finding the right spot with the right co-tenancies is a strategy you need to master. Centers with landmark retail anchors like Whole Foods, Home Depot or AMC Theaters are perfect — typically attracting large, diverse crowds of potential customers.

    4. Parking

    Your building can look incredible, but if you don’t have the space to accommodate visiting traffic, you’re doomed. With the rise of delivery and take-out orders, having parking space to manage sudden influxes (such as heavy dinner rushes) is essential, and properties should be planned accordingly.

    Keep in mind, too, that structured parking is a restaurant killer: It’s hard to navigate, often crowded and a hotbed for accidents and car damage. What’s worse — the common perception is that garages are unsafe: dense, dark and out of view of the public. Deliveries are also exponentially more difficult if you rely on them. Surface parking, by contrast, offers quick access and easy visibility.

    Related: 5 Mistakes Franchisees Make When Looking for Business Real Estate

    One last tip: If you’re renting in a shopping center or outdoor mall, finding space near a business with a different rush period can make all the difference. If the bulk of your business is done in the evening, finding a site near a coffee shop or breakfast restaurant can be a boon for parking.

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    Dan Rowe

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