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Tag: Franchises

  • These Are the Top Global Franchises of 2025 | Entrepreneur

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    Want to buy a franchise outside the United States? You’re in luck, because franchising is increasingly a global affair. Consider this statistic: Every year, we rank the top 500 franchises in our Franchise 500 list — and this year, nearly 45% of those brands’ locations were outside the U.S.!

    That’s not to say global expansion is easy. It comes with plenty of challenges — from adapting products, services, and marketing to various locales and cultures, to dealing with different laws and regulations, to overcoming language barriers. But more and more franchisors see value in it, which is why we recognize the strongest global brands in this annual ranking.

    See the full list here.

    To compile this list, we begin with our Franchise 500 ranking formula, which assesses and scores franchise opportunities based on more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability. We adjust this formula to give extra weight to system size and growth outside of the U.S., and the resulting top-scoring companies become our 200 top global franchises.

    This list can offer a great place to start your search if you’re interested in buying a franchise outside of the U.S., or if you just want to get in business with a globally minded brand. But it is not intended as a recommendation of any particular company. You should always do your own thorough research before investing in any franchise opportunity, to find out if it’s right for you and your corner of the world. So make sure you read the company’s legal documents, consult with an attorney and an accountant, and talk to current and former franchisees.

    Related: Buying or Selling a Business? This Top-Ranked Franchise Makes the Intimidating Process Straightforward.

    Want to buy a franchise outside the United States? You’re in luck, because franchising is increasingly a global affair. Consider this statistic: Every year, we rank the top 500 franchises in our Franchise 500 list — and this year, nearly 45% of those brands’ locations were outside the U.S.!

    That’s not to say global expansion is easy. It comes with plenty of challenges — from adapting products, services, and marketing to various locales and cultures, to dealing with different laws and regulations, to overcoming language barriers. But more and more franchisors see value in it, which is why we recognize the strongest global brands in this annual ranking.

    See the full list here.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

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    Tracy Stapp Herold

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  • He Started Delivering Pizza In 1991 and Now Owns 270 Shops | Entrepreneur

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    In a little over three decades, Nadeem Bajwa went from being a college student struggling to pay the bills to the owner of a fast food empire, owning 270 Papa John’s locations in North America.

    The 58-year-old told CNBC that he immigrated to the U.S. in 1991 from Pakistan. He attended a college in Fort Wayne, Indiana, and worked side hustles to make ends meet. One of his side jobs was delivering pizza for a local Papa John’s chain, making $4.25 an hour. His first summer in the U.S., he would wash dishes during breakfast time, deliver pizzas for Papa John’s in the afternoon, and then work at Taco Bell at night.

    “I just started delivering for Papa John’s when they came in town, and from there, just started loving it, and tips were good, so that helped,” Bajwa told CNBC.

    Related: Want to Start a Business? This Franchise Will Give You Up to $100,000 to Do It.

    When Bajwa graduated from college in 1996, he had already worked his way up the ranks at Papa John’s, going from delivery driver to area manager. He submitted applications to corporate roles at other companies, but found that he couldn’t get a job that would pay more than what he was making at Papa John’s. He decided to stick with the pizza shop for that reason.

    Bajwa’s experience running a Papa John’s store helped when he eventually decided to become a franchisee and open his own location. In 2002, he opened his own Papa John’s restaurant in East Liverpool, Ohio, saving money on startup expenses by doing most of the labor himself.

    The store took $150,000 to build out and was an instant success, with more customers showing up than expected. However, the crew was undertrained and overwhelmed, and half of them walked out that first day alone.

    “[At first] it was chaos,” Bajwa told CNBC. “I learned how important it is to be ready before [opening].”

    Related: This Entrepreneur Turned a Weekend Side Hustle Into a Business That Doubled Margins — And Is on Track for $7 Million

    That one restaurant led to another, then another. Bajwa’s goal now is to open 500 Papa John’s locations in the coming years.

    Papa John’s, which was founded in 1985, has over 3,000 locations in the U.S. It usually takes an initial investment of at least $272,915 to get a Papa John’s restaurant off the ground.

    In a little over three decades, Nadeem Bajwa went from being a college student struggling to pay the bills to the owner of a fast food empire, owning 270 Papa John’s locations in North America.

    The 58-year-old told CNBC that he immigrated to the U.S. in 1991 from Pakistan. He attended a college in Fort Wayne, Indiana, and worked side hustles to make ends meet. One of his side jobs was delivering pizza for a local Papa John’s chain, making $4.25 an hour. His first summer in the U.S., he would wash dishes during breakfast time, deliver pizzas for Papa John’s in the afternoon, and then work at Taco Bell at night.

    “I just started delivering for Papa John’s when they came in town, and from there, just started loving it, and tips were good, so that helped,” Bajwa told CNBC.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

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    Sherin Shibu

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  • How to Create a Brand Philosophy Your Whole Team Believes In | Entrepreneur

    How to Create a Brand Philosophy Your Whole Team Believes In | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The day after we finished training our staff for the new Ford’s Garage in Gainesville, Florida, a family appeared at the door. They thought we were open because they saw the team in the dining room. We could have told them to come back when the restaurant opened to the public, but instead, we invited them in, and they had a fantastic dining experience. That was in 2022, and they still come in as frequent guests.

    That’s just a great story of hospitality. It’s one of the “seven commitments” from our brand philosophy that our Gainesville team beautifully brought to life. By living our vision, they created guests for life, which shows the importance of getting your team on board with your brand philosophy.

    A company’s brand philosophy is often called the North Star, after an old-age technique used by early navigators traveling at sea. Like the ancient mariners who first steered their ships by it, you can help your team find their way with a well-thought-out vision that’s communicated to everyone and reinforced every day. It has to be something real, not just a poster on the wall in the break room, and it has to come to life through sharing stories like the Gainesville example.

    Related: If You Want Customers to Be Passionate About Your Brand, Follow These 10 Commandments

    By the numbers

    Our brand’s concept has always been about hospitality and fun. The restaurant was created to evoke a classic American service station, from the Ford Motor Company-inspired logo to the décor and menu; what’s NOT fun about that?

    Our goal was to personalize it for our unique vision, so we updated our brand philosophy to what we call “1-4-7”: one vision to “drive a unique dining experience,” four principles (people, products, performance and package, meaning the vibe and spirit), and seven commitments (integrity, quality, hospitality, excellence, teamwork, community and fun).

    It took a team of 16 from all company levels to develop our new philosophy. After senior leadership gave them the broad strokes of our overall vision, we hired an outside moderator to lead the effort. Every company I’ve worked at has turned to an outside expert for projects like this. You have to because your people will be so close to the brand that they may struggle to see what you’re trying to accomplish.

    The moderator led us through exercises to identify the principles and commitments, starting with a list of 57 and finally narrowing it down to seven. We talked about our identity as a hospitality business as opposed to a service business — and we probably spent three hours just on that.

    Now, in every decision we make, whether regarding building design or marketing imagery, we pull out the guide and ask if the new project measures up. Everything we do is put through the brand philosophy funnel.

    Related: This Is Why It’s So Important to Articulate Your Brand Values

    Taking it to the team

    Coming up with a brand philosophy doesn’t end when you’ve hammered it out and put it in writing. You have to coach your team so they put the ideas to work every day. It’s a constant process. You have to talk about it all the time, work it into team-building exercises, and measure new initiatives against it to make sure you stay aligned.

    No matter what industry you work in, a great way to start each morning is to gather your team together as a group. I’ve seen these occurring while walking into different retailers when the store opens for the day. At our company, we have a daily meeting called the “alley rally,” where we talk about what’s important that day: food specials, tasting menu items, and whatever’s new and notable. We like to tell stories about how someone on the team made one of our principles come to life the day before in their interaction with a guest.

    You should incorporate your brand philosophy into the hiring process, too. Within 30 seconds of talking to a candidate, you should know whether they “get you” and can bring your company vision to life. You look for eye contact and a friendly demeanor in a hospitality business. Do they smile? Do they talk about their family and friends? (We want people willing to share a little of themselves.) If they’re the guest, how do they want the staff to care for them, and can they provide the same caring approach?

    A brand philosophy must be something the whole team can support. It isn’t directed at guests, but if your team is living it, your guests will feel it in the way they’re treated when they walk through your door. You’ll feel it when they come back to get that positive experience again and again.

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    Dave Ragosa

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  • 3 Recession-Proof Lessons We Can Learn From the Medspa Industry | Entrepreneur

    3 Recession-Proof Lessons We Can Learn From the Medspa Industry | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Estée Lauder chairman Leonard Lauder called it the “lipstick effect” — the growth in demand for small luxuries during times of economic uncertainty. The assumption behind this phenomenon is that when people are under more stress, beauty and self-care rituals offer a form of psychological comfort.

    McKinsey even reported a surge in demand for skincare and wellness products during the pandemic. So, with fears of an economic downturn never far from the surface, might the same apply to the more affordable alternatives to surgical procedures like tummy tucks?

    One of the most recognizable dermatology brands in the U.S., LaserAway, has now expanded to over 120 locations and reports the industry has been growing at over 20% annually in America. CEO Scott Heckmann says that LaserAway experienced “strong years” in 2008 and 2020 despite the recessions. He put it down, in part, to patients moving away from higher-cost providers like plastic surgeons and dermatologists.

    As CMO of Vagaro, a software provider to the wellness industry, I have witnessed it myself: So many people are abandoning surgical procedures for non-invasive methods such as body contouring that advancements in beauty technology are now allowing. They are simply more accessible and less overwhelming. I want to dive deeper into LaserAway’s growth as a barometer of the industry because it has drawn out three lessons that can help other beauty brands recession-proof themselves in an unpredictable economic climate.

    Related: 7 Strategies to Recession Proof Your Business in 2024 and Beyond

    1. A changing market is a good market

    When customers trust a clinic’s practitioners with something as sensitive as their bodies and faces, being very transparent about what’s involved in a procedure is critical to credibility. LaserAway’s social media features videos with real people, real nurses, actual treatments and basic plotlines — at their heart, these procedures are about helping people find their self-confidence.

    Providing people with a realistic picture of likely outcomes also ensures they are more likely to end up satisfied with the treatment. Internal data from our marketplace shows increasing demand for these non-invasive aesthetic treatments. Over the last five years, we have seen an average annual growth of new medspa businesses on our platform of 24%.

    Technology has been a key factor. While cosmetic surgeons have a very limited audience at a high price point, medspa clinics offer myriad services that open the door to a large market — including an increasing number of men. In fact, skincare makes up 45.6% of the global men’s grooming market (worth $85.2 billion in 2023) as old masculine stereotypes give way to self-care among younger generations.

    Related: 5 Recession-Proof Businesses to Start in a Turbulent Economy

    2. Diversification builds resilience

    In many industries, brands must be niche with their products or services. But medspa chains like LaserAway, Sculpt MD and Sono Bello can on-sell a range of services while still maintaining expertise in each area. That diversification is really important because it drives repeat customers and more revenue. When people get body contouring once, they are likely to come back. It’s the same with Botox.

    On our platform, we’ve found that medspa businesses offer an average of 47 services. Having a balance of higher and lower-value offerings like this is a great strategy to maintain steady income through economic fluctuations as people regard treatments as an ongoing investment in their well-being.

    Technology with embedded payments is also a key feature in helping people afford all types of treatments. A lot of consumers are choosing non-invasive procedures because they get the same results as surgery but don’t have to deal with the long recovery time.

    However, the pay-later option can make these treatments financially viable. Getting people through the door, however, does not require the hard sell because consumers are savvier than ever about what they want and expect.

    3. The power of referrals

    All beauty businesses need to be aware that the traditional sales model has evolved after first engaging customers through their different digital and marketing channels. The pandemic was the big impetus for digital influence, but people now want to be impacted through the use of real-life case studies instead of feeling like they are being “sold to.” Hence, the role of influencers.

    We can now assume that once people have sought out a product or service online and done their own research, they are already warm. For me, it is only once I have satisfied myself that a company has authority and integrity that I am ready to talk to a salesperson. The demand for more authenticity only reinforces the idea that the biggest point of sale in the beauty and wellness space should be referrals.

    It will be interesting to watch companies shift to this new expectation of how consumers want to be influenced through sales. This is especially the case since they are already doing so much right, such as their onboarding process that leads patients to choose their treatment, their body target areas, number of treatments already received, and their age. This kind of data can inform the appropriate regime and be leveraged to anticipate consumer trends and continue to build credibility.

    Related: How Small Businesses Can Survive and Thrive in a Recession

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    Charity Hudnall

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  • For Franchisees to Succeed, They Need This Critical Support From Franchise Owners | Entrepreneur

    For Franchisees to Succeed, They Need This Critical Support From Franchise Owners | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When sales are down in a franchise network, the franchisor tend to be the party chiefly held responsible. It’s a diverse and challenging job — one that includes marketing on two levels: recruiting the right franchisees and then the unit-level marketing for which they will be paying a fee (typically a percentage of their sales), often expecting the moon in return.

    Attracting and retaining prospects or customers is everyone’s job in a business, but marketing with a consistent and compelling message really does start at the top. One of the benefits of joining a franchise system, after all, is to be privy to existing and successful branding and outreach, including trade dress, professional signage, website design and advertising templates.

    But before we look at what you as a franchisor need to provide to franchisees for local marketing efforts, let’s start with what characterizes a winning recruitment program.

    Related: The 8 Rules to Live By in Franchise Marketing, According to Top Franchise CMOs

    Marketing to potential franchise owners

    First and foremost, sales materials need to be both compelling and meet compliance rules. Different states have different requirements, so hire a franchise marketing expert as well as legal counsel to ensure you’re both hitting the right notes as well as acting in accordance with both state and federal law.

    And even if you’ve been franchising for years, it’s never a bad idea to revisit sales materials to update messaging, check for unified look and feel, re-ensure compliance and take advantage of any new channels. How many franchisors dreamed they’d be considering making TikTok videos even five years ago?

    Start with a website that will capture your intended audience’s imagination — one that reflects and burnishes the brand, tells a good story and spells out the specific and unique benefits your franchise offering provides.

    It’s also important to leverage a variety of media, including electronic collateral materials, search engine and social media ad campaigns, direct marketing tactics and trade shows and publications. And know your audience so that you’re putting time and effort in the right places.

    Since prospects have become used to getting immediate responses, technology will play a big part in ongoing communications with potential buyers, particularly once they become leads. Whether via AI chatbots, texts, email or phone call, find out how candidates like to receive information and interact.

    Additionally, have both a plan and a budget. If you don’t have the in-house staff to develop and execute a franchise marketing plan, hire a firm with expertise (and success) in creating and implementing plans for other franchises. This is not the time to just throw ideas at the wall and see what sticks.

    Related: The Real Cost of Franchising Your Business

    Marketing at the unit level

    Once you have franchisees who have joined your system, it’s your responsibility to support them in promoting and marketing. Word of mouth has traditionally been considered the best form here, but with the takeover of social media, words are coming out of a great many mouths now — and not just your fans’. To ensure you and your franchisees are sending the same message, provide them with sample content, and at least monitor (better yet, directly manage) their online (including social media) presence, as well as overall marketing messaging.

    Keeping an eye on all franchisees’ marketing activities may sound daunting, but it’s vital to not leave things to chance. At minimum, approve all content posted on their individual social media accounts or websites/webpages. A better approach, I’ve found, is to provide templates and messaging so that the look and feel of all posts, announcements, promotions and videos are always on-brand. These can be generated using your own staff and/or an outside agency.

    Yet another idea is to take a hybrid approach, in which the franchisor manages the overall campaigns, but allows franchisees to do posts for territory-specific events, as long as they get content approved beforehand.

    To be sure, this direct-manage approach requires dedication and planning, and may seem to not leave much room for spontaneity. So, make an effort to be responsive when a franchisee wants to advertise or post about something going on in their market.

    Another important consideration: When establishing a brand development (or system marketing) fund, do the math to ensure that fees collected from franchisees will be adequate to cover the expenses of creating marketing materials, including staff time. Make plain to them that such fees benefit each local franchise, certainly, but are also used to help fund regional or national campaigns from which the entire system benefits. Lastly, consider having any parent-company-owned stores contribute the same percentage for system marketing as franchisees so there is a sense of equitable participation across the entire network.

    Related: Your Franchise Marketing Needs This Secret Weapon to Captivate and Convert

    There will always be pressure (on new and emerging franchisors in particular) to come up with fresh marketing materials to justify marketing fund contributions. Historically, one of the most common complaints from franchisees is that they expected to receive more support in this area. And some franchisors further require a specific spend by franchisees for their own in-territory marketing, which can be a source of additional consternation. One additional solution may be to blend both of these fees into a combined percentage, especially if an outside agency is being used to manage campaigns.

    But no matter how you architect your marketing funds and programs, transparency is key. Provide regular accounting/reporting on how funds are being used, including efforts towards social media growth and ad reach, and have proof ready as to how campaigns are working.

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    Emiliano Jöcker

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  • Is Franchising a Good Side Hustle? It Depends on These Things | Entrepreneur

    Is Franchising a Good Side Hustle? It Depends on These Things | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In a professional landscape that places increasing value on gig work and side hustles, it’s important to make sure that we are evaluating new ventures carefully before diving in. After all, there are only so many hours in a day, and entrepreneurs in particular must ensure their time is allocated efficiently.

    From a business model perspective, franchising offers a middle ground between the stability of a corporate job and the uncertainty of a true startup business. Franchises provide a blueprint to new franchisees that detail proof of concept and profitability. It’s no wonder many professionals looking to transition out of a corporate role and into business ownership consider franchising as a viable option.

    As a franchise consultant, I’ve observed first-hand the value a corporate background can have when applied to franchise ownership. These aspiring entrepreneurs are hard-working, motivated, decisive and have strong leadership skills (among many other traits). The trick is knowing when to make the jump.

    I am often asked whether franchising is something that can be done on the side while continuing to work at a full-time corporate position. The answer? Ultimately, it depends on your circumstances.

    Related: These 7 Side Hustle Franchise Types Can Earn You Full-Time Cash

    Why franchising might not be a good side hustle

    1. Your level of flexibility

    The largest issue that places franchising at odds with maintaining a traditional 9 to 5 is the lack of flexibility. There’s no way around it — owning a business requires attention during the business day. Even if you have a manager running it for you, oversight and the ability to be present at a moment’s notice are vital. This means time and focus that is entirely separate from your day job. Only you truly know how time is spent daily in your current position.

    Imagine a typical workday. You’re in the middle of a task and you get a notification that a pipe has burst in your franchise storefront. Are you able to get up immediately and attend to this urgent matter? If not, you may need to reconsider whether you truly have the flexibility to maintain both a franchise and your corporate job.

    2. How much upfront capital investment you can make

    Typically, side hustles may not require upfront capital (or may require minimal start-up costs). However, they do often require a great deal of time and work upfront (hence side “hustle”) before they create a semi-passive income. Consider internet businesses or affiliate websites that are entirely conducted online and do not require real estate, overhead costs or additional employees. This is not realistic for franchise ownership.

    Because being awarded a franchise means that you have access to business materials, marketing plans, hiring assistance and many other resources that bypass common headaches and wasted time and money on the traditional startup path, you have a leg up from day one. And while this is a major selling point for many who are motivated to own a business, it does add to the initial investment cost.

    There are many different franchise concepts and, subsequently, vastly different investment costs. However, as a rule of thumb, even the minimum capital investment for a franchise is going to be approaching $100,000 (the franchise fee alone is often between $50,000 to $60,000).

    *Note: According to the U.S. Small Business Administration website, the franchise fee is described as “the cost of entry. Paying the upfront franchise fee unlocks the door to the franchisors’ proprietary business systems and more. You get the complete setup. The franchise fee is literally a license to own and operate the franchise business.”

    3. How much oversight you can provide

    Working hand-in-hand with flexibility, it’s important to understand that franchising — or owning any business — is never truly absentee. Even if you hire a manager to run day-to-day operations, you are responsible for oversight. Furthermore, you must be able to step in at a moment’s notice if your general manager leaves or is unable to perform their role.

    Since most franchises are local and regional brands that fall under the category of everyday essential services, they require local representatives and will therefore have employees. Due to the nature of managing employees, it’s difficult to maneuver employee management into a side hustle.

    Related: The Pros and Cons of Franchising Your Business

    When can franchising work as a side hustle?

    At the end of the day, much of this question comes down to the control you have over your daily schedule. If your current job allows for flexibility in the middle of a workday (possibly if you work in real estate, sales or perform remote work and have flexible deadlines), then franchising can often work as a side hustle.

    Additionally, if you have a large amount of financial capital to work with, then you will be able to hire employees and managers who can offset the workload. Enough capital can solve almost any time-related problem. However, as noted above, this is not a catch-all solution. You will likely have to invest more time to get the franchise up and rolling. Over time, developing a hierarchy of employees and managers can minimize your time commitment.

    We all know that when making any major career change, it’s important to perform due diligence and ensure that you are making the most well-informed decision possible. If you are considering franchise ownership as a side hustle, I encourage you to carefully consider your lifestyle and decide if you can realistically operate a franchise on the side, or whether you fall into the larger category of owners who must commit more time to this endeavor.

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    David Busker

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  • Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business. | Entrepreneur

    Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Not every business can be franchised, nor should it. As the founder and operator of an exciting, new concept, it’s hard not to envision opening a unit on every corner and becoming the next franchise millionaire. It’s a common dream. At one time, numerous concepts were claiming to be the next “McDonald’s” of their industry.

    And while franchising can be the right growth vehicle for someone with an established brand and proven concept that’s ripe for growth, there are other options available for business owners who want to expand their concept into prime locations before their competition does but who don’t want to go it alone for a number of reasons. For instance, they may not have the resources or cash reserves to finance a franchise program (it is important to note that while franchising a business does leverage the time and capital of others to open additional units, establishing a franchise system is certainly not a no-cost endeavor). Or they don’t want the responsibilities and relationship of being a franchisor and would rather concentrate on running their core business, not a franchise system.

    Related: The Pros and Cons of Franchising Your Business

    But when you have eager customers asking to open a branded location just like yours in their neighborhood, it’s hard to resist. You might think: What if I don’t jump on the deal, and I miss out on an opportunity that might not come around again?

    Licensing your intellectual property, such as your name, trademarks and trade dress, in exchange for a set fee or percentage of sales is one way to accomplish this without having to go the somewhat more laborious and legally controlled franchise route. Types of licensing agreements range from granting a license to allow another entity to manufacture or make your products to allowing someone to use your logo and name for their own business. Unlike in a franchise, your partner in a licensing situation will only be allowed certain predetermined rights to sell your products and services, not an all-in agreement to give them a turnkey business, accompanied by training and support, in exchange for set fees. A licensing agreement spells out each party’s rights, responsibilities, and what they can and cannot do under the terms of the agreement. Having a lawyer draw up the paperwork is vital, as well as consulting with a trusted business advisor who has helped others along this path and can shorten your learning curve while protecting your rights. License agreements are governed by contract law as opposed to franchise laws. However, care must be taken: To ensure that you’re staying in your lane and not crossing over into franchisor territory, you’ll want your advisers to detail what you can and can’t do as a licensor.

    For instance, a license agreement excludes you from being involved in the day-to-day operations of the licensee’s business. While having no oversight may sound like a relief, it can be a double-edged sword, especially for people who are used to controlling all aspects of their products or services. You won’t have to provide licensees with ongoing services, such as marketing materials and continuous training, but it also means you have no control over how they run their business, their product mix or even how they decorate their space. If you’re a type-A, this may be hard for you.

    Most people are more familiar with trademark licensing with a third party because these agreements are big in the sports and entertainment industries, where a celebrity lends their name to endorse a product, whether it’s branded athletic wear or trendy foodservice menu items such as pizza, chicken, or even gelato.

    Using a celebrity’s cache garners media attention you might otherwise never get. But not everyone who comes up with a great concept or product has the recognition that would allow them to attract famous business partners or endorsements, and rabid fans that follow.

    There are other methods of getting your products in front of more consumers. Some coffee concepts, including Caribou for example, have created market saturation by both franchising traditional stores and granting licenses for nontraditional locations, such as airports, big-box stores, and college campuses. Others, on the other hand, like Starbucks, employ a combination of company-owned stores and licensees in high-traffic locations where a small kiosk can service a high-density population of shoppers. And, of course, bags and pods of these brands’ coffee blends are also sold in retail locations such as grocery stores.

    Related: Startups Must Protect Their Trademark. Here’s How and Why

    But again, here’s that cautionary note: If you go the licensing route for your products or services, be careful not to cross over into trying to direct the way that licensees do their business, from selecting locations to training employees.

    While licensing or franchising may be valid business growth vehicles for many brands, additional business structures that can be considered include:

    1. Company-owned stores: Opening corporate locations using bank loans and/or the profits from already opened units.
    2. Dealerships or distributorships: In a distributor relationship, products are purchased from a manufacturer and then sold through local dealers.
    3. Agency relationships: These are similar to the relationships you’d have with dealers, but in this case, an agent or representative of your company sells your services to a third party. The important distinction to remember so that the relationship doesn’t cross over into franchise territory is that you, as the provider of the services, pay the agent (as an independent sales rep) rather than the agent collecting the money and paying you.
    4. Joint ventures: In this case, you, as the concept owner, would take on an operating partner who also invests his own funds in the business. The two of you would then share in the equity and profits at the percentage rate of your investment.

    The appropriate method to grow your business depends on several factors, including your type of concept, service, or products; your risk aversion factor; your access to capital; where you’re located; and current market conditions. So, if you choose another option to franchising, be cognizant of not slipping into becoming a franchise. The Federal Trade Commission’s regulations define a franchise as meeting at least three standards: a shared name, fees and royalty payments paid to the company by the franchisee, and ongoing support and control of the day-to-day operations by the franchisor.

    Keep in mind that if you start with one expansion method, you can consider changing that structure with legal and professional guidance should your business needs merit a shift in strategy. Case in point: some licensors will eventually convert licensees to franchises under a newly crafted agreement and program if they see the need to change the fee structure and maintain additional control over operations.

    Slow growth can be detrimental to a business, but not picking the right vehicle for that growth can be worse than standing still. That’s why doing your homework — consulting with professionals, such as attorneys, accounting and franchising advisors, and talking to others in the same boat as you will save you from drifting too far from shore.

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    Emiliano Jöcker

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  • There Is No Such Thing as the “Hottest” Franchise | Entrepreneur

    There Is No Such Thing as the “Hottest” Franchise | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    After a decade-plus of advising people about getting started in the franchise industry, my colleagues and I at FranCoach have seen and heard just about everything. One of the questions that we hear a lot from our clients is, “What is the best franchise?” Or sometimes people ask “What is the hottest industry out there?”

    Without a doubt, these are the easiest questions we have to answer.

    The Myth of the “Best” Franchise

    So what is the best franchise?

    The answer is incredibly simple: There is not one. There is not one best franchise. There is not one best or hottest industry. It is truly that simple.

    If anybody tells you differently, they are either lying to you or they do not know what the heck they are talking about.

    You might be thinking, how is that possible? There has to be a “best” franchise and a “hottest” industry.

    Well, there is not — and I will explain why. There are a few different bits of information that go into the reasoning here, but first off, franchising is an incredibly individualized and personalized process.

    What is best for you is not what is best for the next person or the person. Here’s the analogy I often use:

    My wife’s friends or family might ask her, “Why in the holy hell did you marry that old bald dude?” It’s probably a valid point, but for whatever reason, I was her person, her match. The same concept applies to franchises. Sometimes, the old bald dude is really the best fit for people. And for the next person, the best fit will be totally different.

    In other words, beauty is in the eye of the beholder.

    Related: How to Franchise a Business in 7 Steps

    How to Find the Right Franchise Match

    When it comes to the franchising industry, there are a few important points to understand.

    If you combine every franchise out there, the industry is valued at over $800 billion – yes, billion, with a B. There are over 800,000 franchise units in the country, and they employ over 9 million people. This is a massive industry.

    Within that, there are many different industries and niches. For example, at FranCoach, we work with over 600 franchises and about 70 industries.

    Related: See the 2024 Franchise 500 Rankings

    Every one of those niche industries is going to throw shiny buzzwords and stats at you. This industry is booming, this one is recession-proof, and that one is essential. That one over there is up-and-coming, this other one is trendy… you get the idea.

    But ultimately, none of that matters. What matters is YOU. What is the best thing for YOU?

    The Get Out of Bed Test

    We talk a lot about the Get Out of Bed Test. What does that mean? It means that you are the one who is going to be the franchise owner. You are the one that has to get your butt out of bed and go run this business every day.

    With the Get Out of Bed Test comes a series of questions you will want to ask yourself:

    • What are you good at?
    • What do you enjoy doing?
    • Who are the people that you want to be around? Think about your staff, if you have one, and the customers in your community.
    • What are the core values of the business?
    • What is it that you want to do every single day?

    Your answers to those questions are what matters. At the end of the day, franchisors are not looking for industry experts. They are looking for people who will run their business. So instead of looking at a certain industry or a certain brand, trying to figure out what is the “hottest” or the “best,” you want to think about what is best for YOU.

    Related: All the Costs to Consider Before Buying a Franchise

    As you think about your answers to the questions above, a whole world of possibilities begins to open. It can be a little bit overwhelming to consider all of the franchise options out there — remember, this is an $800 billion industry. There are over 4,000 franchise brands in the U.S. alone, not even considering brands located internationally.

    In other words, it is a lot to sift through. So what do you do? How do you find the right fit?

    Finding the Right Fit

    That’s where the FranCoach team comes in. What our team does is not hunt for the best or the hottest franchise — instead, we get to know you. Everything revolves around you: What are you good at? What do you want to do?

    Once we understand your answers to those questions, we start to build from scratch what you are looking for, what you are good at, and what you do not want to do. What are the core elements of the right business for YOU?

    We know the differences between all of the 4,000 franchises out there — we have seen behind the curtain. We know what each one is all about, so we can hunt down what is going to be the best thing for you. The hottest thing for you is going to ultimately be your match.

    Success in franchise ownership is really simple. It boils down to two steps:

    1. Follow the plan.
    2. Put forth the required effort.

    Pretty darn simple, right? So what is the trick? The trick is finding the absolute best franchise for YOU.

    Think about it like this: You are terrible at sales, you hate people, and you never want to talk to anybody. Then you start a franchise because somebody tells you how good it is or how hot it is. But it turns out that you have to sell and be the face of the business to succeed.

    Related: Yes, You Can Buy a Franchise In a Bad Economy

    Well, guess what? It is not going to go very well. That is a terrible match. It does not mean that is a bad franchise. It does not mean you should not own a franchise. It means it is a bad match.

    There is no “best.” There is no “hottest” for everybody. What matters is YOU and finding the best franchise for your skills, needs, and goals.

    Work With the FranCoach Team Today

    If you are ready to learn more about franchise ownership, you are in the right place. Here at FranCoach, we work with our clients to help them find the absolute best franchise for them.

    Related: Is Owning a Franchise the Best Move?

    Our number one goal is to properly educate you about franchise ownership. We want to help you determine if franchise ownership is the right path for you — and if so, we will guide and support you through the process of finding your perfect match.

    And the best part? Our services are 100% free, 100% of the time – seriously. Reach out to us today to learn more about becoming a franchise owner. You have read this far… so why not take the first step today toward your better tomorrow?

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    Tim Parmeter

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  • Fight Joint Employer Changes with Congressional Review Act | Entrepreneur

    Fight Joint Employer Changes with Congressional Review Act | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Attention, franchise owners, solopreneurs and independent contractors: It’s time to call your lawmakers and insist on their vote to protect the way you earn a living.

    Why? Because federal agencies are attempting regulatory workarounds to implement policies that Congress refused to enact — policies that threaten the right of franchises and independent contractors to continue operating our businesses as we do today.

    Related: The NLRB’s Joint Employer Rule Faces a Barrage of Challenges, Fueling a High-Stakes Battle Over the Future of Franchising

    Dangerous ‘Protecting the Right to Organize Act’

    The background you need to know starts with a bill that moderate Democrats in the U.S. Senate joined with Republicans to block. That bill was called the Protecting the Right to Organize Act, and it contained language so dangerous for franchise owners and solopreneurs that Entrepreneur published its first-ever series of political advocacy articles in opposition to it.

    I wrote that series, called the Campaign for Our Careers. It was an award-winning look at the two most dangerous provisions of the PRO Act for franchises and independent contractors: the joint-employer standard and the ABC Test.

    Related: The New Joint Employer Rule Will Crush Franchising As We Know It. Here’s What You Can Do to Protect Your Business.

    Congressional Review Act (CRA)

    Since the PRO Act couldn’t get through the legislative branch of government, the Biden administration has been trying to use the executive branch to impose similar policy changes. We need every possible lawmaker to co-sponsor the use of the Congressional Review Act (CRA) to overturn these executive-branch moves.

    On the joint-employer language, the CRA would overturn changes to the joint-employer standard by the National Labor Relations Board. This CRA has already passed the House of Representatives — in a bipartisan 206-177 vote — but it’s still awaiting action in the Senate. The International Franchise Agency urged lawmakers as of late February “to kill joint employer once and for all.” More than 90 organizations have endorsed this CRA.

    On the independent contractor language, the U.S. Department of Labor acknowledges in its new rule that there may be “conceptual overlap” with the ABC Test’s most harmful section to independent contractors. The U.S. Chamber of Commerce says the “DOL’s claim that the regulation does not reflect the ABC Test leaves something to be desired.” The independent contractor CRA was introduced in the House and Senate in early March with more than 70 co-sponsors and needs more in both chambers to advance.

    Federal lawsuits have been filed against both federal agencies, trying to stop these policy changes through the courts. But, given the snail’s pace with which the wheels of justice can turn, it’s important for Congress to act.

    Related: This New Government Rule Threatens to Disrupt the $825 Billion U.S. Franchise System

    Contact your representatives now

    Of course, to get Congress to act, lawmakers need to hear from constituents. Call or email your member of the House of Representatives and your two senators. Ask them to co-sponsor using the Congressional Review Act to stop both the National Labor Relations Board joint-employer standard and the Labor Department’s independent contractor rule.

    To contact your member of the House of Representatives, go here.

    To contact your state’s two senators, go here.

    Act now, without delay. Both these changes are scheduled to go into effect on March 11 unless the courts or Congress step in.

    Kim Kavin is one of a half-dozen freelance writers and editors who have sued the U.S. Department of Labor in two separate lawsuits through Pacific Legal Foundation and The Beacon Center of Tennessee over the independent contractor rule.

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    Kim Kavin

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  • 5 Ways Franchises Can Benefit From Leveraging Offshore Talent | Entrepreneur

    5 Ways Franchises Can Benefit From Leveraging Offshore Talent | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Emerging franchise brands are laser-focused on growth, and rightfully so. However, growth consumes a lot of cash, and many are undercapitalized and unable to staff adequately in the initial stages of the business. A more nuanced approach to talent acquisition can facilitate success.

    Leveraging offshore talent is a lesser-utilized growth strategy for emerging franchise brands. Outsourcing no longer fills just junior or customer service roles — a common misconception in today’s landscape. Now, high-value, skilled workers are available around the globe to support completing higher-level work. Offshoring helps franchisors proactively hire as part of their growth strategy, instead of staying reactive while conserving cash.

    Historically, I have seen very few brands leverage outsourced labor. However, that is beginning to shift as franchise leaders begin to understand the benefits of having an international talent strategy. There are compelling reasons that fast-growing franchisors can benefit from leveraging offshore talent.

    Related: Your Most Pressing Offshoring Questions, Answered

    1. Access to a broader talent pool

    Talent scarcity persists as a substantial issue that won’t soon go away. It’s becoming harder to find, afford and retain top talent. A ManpowerGroup report revealed that 75% of employers say they have difficulty filling roles, and a study by Korn Ferry found that by 2030, there could be a global talent shortfall of 85 million people — to the tune of $8.5T in unrealized annual revenues if the issue is left unaddressed.

    A shift in the talent procurement process is necessary to address this scarcity. Offshoring provides access to a much broader, global talent pool. Franchises need access to a wide range of skills and expertise that may be limited or fiscally prohibitive in their local markets. Offshoring can be particularly beneficial for more specialized roles within the business.

    2. Cost efficiency and scalability

    A significant outsourcing advantage is cost savings. Offshore talent carries a much lower expense compared to local hiring, with significantly reduced budgets for wages and benefits. With the right offshore talent, work quality won’t be sacrificed. This can be crucial for franchisors that need to maximize their resources during periods of rapid growth.

    It takes a long time for a franchise brand to become royalty-sufficient, which is why growth is especially important for new businesses. As franchises grow, the need for broader skills and additional staff rises. Offshoring provides the flexibility to expand or contract the workforce as needed, without the expense or complexity of hiring locally.

    3. Quality improvement

    Any business in growth mode struggles to hire ahead of the demand curve. Hiring proactively can help franchisors expand their capacity ahead of that curve to maintain high quality, brand value and customer satisfaction. Often, they delay hiring crucial roles or bring on less experienced workers to reduce costs. These are not mutually exclusive.

    Most people think of outsourcing as transactionally delegating low-level tasks that no one wants to do. Instead, franchisors should consider offshoring, hiring skilled workers to fill roles earlier than they could otherwise with domestic workers.

    For example, leveraging offshore talent could mean that domestic employees can take on new roles, such as management responsibilities, expanding capacity and facilitating greater business value.

    4. Round-the-clock operations

    Offshore teams often operate in different time zones. Meaning, they can complete their work outside of the franchise’s local business hours, effectively enabling 24/7 operations.

    Operating with longer hours can significantly increase project turnaround times and improve customer satisfaction.

    5. Leadership focus

    Within growing companies, executives often get mired in operational or administrative details. Through offshoring, franchise executives can affordably find support that relieves operational burdens and allows them to focus on core activities, such as franchise development and strategy and management, which spur growth and expansion. Offshore teams can handle repetitive and time-consuming tasks, which in turn increases organizational efficiency and productivity.

    With this level of support, leaders can expand their bandwidth and add strategic value to the organization.

    Related: Hiring Offshore Talent? Here Are the Top 10 Countries to Recruit From.

    Investing in offshore talent allows room for franchises to grow. Businesses gain access to a wider range of skilled talent, and they can upgrade internal teams and foster leadership capacity and effectiveness. Cost-efficiency and 24/7 service provide much-needed relief to young franchise businesses — and customer service and profitability don’t suffer in the process.

    Offshoring helps growing franchises increase organizational value. The flexibility that engaging today’s offshore talent provides creates a skilled global workforce that fulfills more roles than customer service.

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    David Nilssen

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  • Want to Leave Your Franchise Business Behind? 4 Exit Strategies to Consider | Entrepreneur

    Want to Leave Your Franchise Business Behind? 4 Exit Strategies to Consider | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When considering the exit of a franchise business, it can be easy to assume the reason for exiting is due to one of two possibilities: Either the business was so successful that someone made an offer to purchase it, or it was such a failure that the owner had to “get out.” As with most things, the real answer is often more complicated. There are plenty of other reasons someone might be looking to exit their business.

    In the excitement of starting a franchise business, an exit strategy is frequently overlooked, despite its importance in the planning process. This is understandable since we usually don’t like to think about the end of a journey before it’s begun. However, during my years as a franchise consultant and franchisee, I learned the importance of having an exit strategy in place. The best thing you can do? Plan ahead so you aren’t making critical future decisions under duress.

    Optimize your exit value by planning before a major change forces your hand. Common reasons people exit a franchise include:

    1. Getting a job offer they can’t refuse
    2. Deciding they are ready for retirement
    3. Experiencing a major life change (divorce, family change or illness)
    4. Receiving an unsolicited offer for a successful business
    5. Choosing to acquire or expand in another business
    6. Breaking up with a business partner
    7. Financial struggles in an existing business

    For this last reason, it’s important to remember that just because the business didn’t deliver the outcomes desired by the franchisee, it doesn’t mean there is no value. It’s common for business owners having trouble operating a business to sell it to a new owner who can step in and make it successful. After all, initial efforts by the original owner have likely shortened the launch ramp for a new buyer, including critical and time-intensive startup tasks such as securing a commercial lease, procuring equipment and inventory, recruiting and training employees and building a customer base.

    With all that in mind, here are four ways you can exit your franchise.

    Related: 6 Things to Consider When Getting Out of a Franchise Agreement

    1. Through the franchisor

    This option depends on the maturity of your franchise system. For example, say your franchise brand has been around for 40 years. In this scenario, they may have an entire team dedicated to resales, including special programs in place to work with lower-performing locations to encourage them to cycle out. Alternatively, say the system is a younger franchisor — in this case, the brand may not have a resale team in place, but they could still have relationships with brokers or consultants to assist you in a sale. The main point here? Don’t keep your franchisor in the dark — you and the franchisor have aligned interests (what’s good for you will likely be better for them in the long run).

    That said, keeping open communication with the franchisor does not mean they will solve the problem for you, but there will be more options available if you are transparent.

    2. Hire a business broker

    Selling a business will always take time, but if you need to move more quickly (sell in six to 12 months), the highest likelihood of success often lies in hiring a business broker in your area. The benefit of working with a broker is their industry knowledge and access to a large database of buyers in your local market. It’s their business to send out opportunities to their large network of potential buyers frequently.

    Business brokers are professionals at conducting transactions — so they can also connect you with other people who will help with the process (attorneys, due diligence, closing, escrow, etc). Keep in mind: Like a good real estate agent, they are likely looking for an exclusive listing. These agreements are often in place for 12-month terms, although terms are often negotiable. You may also be able to negotiate fee exclusions for specific buyers such as selling to another franchisee, etc.

    How much are the fees? The fees will be a percentage of the final sale — expect this to be as much as 10% or a minimum flat rate on smaller sale transactions.

    3. Go it alone and sell yourself

    At the end of the day, there is nothing that says you can’t try to sell your franchise independently. Maybe you have customers that love your business and would dream of owning it one day. Occasionally, even if you weren’t thinking about selling, someone may approach you and put in an offer. In this case, you can hire an attorney and forgo the broker process (win-win).

    While this may seem like an appealing option, there are a few things to consider. If you don’t have a readily available buyer, it takes a substantial amount of marketing to promote your business of sale. For example: Think about selling your house without an agent — not as many people will see it and you may have to pay a buyer’s agent regardless. The main challenge in selling independently is being able to find ready, willing and able buyers.

    Related: Before You Enter into Franchising, Consider Your Exit

    4. Contact a franchise consultant

    A lesser-known option may be to contact a franchise consultant who works with your franchise brand (choose a franchise consultant who is part of a national network in your market). While they probably don’t have as large of a local database as a business broker, they have a steady stream of buyers looking to start a franchise business. They may have current candidates or former candidates that align with your brand. And though they may not have as large a local database of a business broker, an experienced consultant residing in your market could have possible buyers for you — but expect that any fees required are paid by you, not the franchisor. A franchise consultant may not be a silver bullet, but it’s worth having a discussion.

    Ultimately, there is no one-size-fits-all process for setting up an exit strategy, but it’s important to do the research early so you’re not making any hasty decisions from a position of duress.

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    David Busker

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  • Burger King's Owner Buys Biggest Franchisee For $1B | Entrepreneur

    Burger King's Owner Buys Biggest Franchisee For $1B | Entrepreneur

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    Restaurant Brands International (RBI), which owns the iconic fast food chain, Burger King, is purchasing the burger shop’s largest franchisee in the U.S. for a whopping $1 billion in cash.

    RBI’s purchase of Carrols Restaurant Group is expected to be completed by the end of Q2 2024 and will also include an additional $500 million in investments to update and remodel more than 1,000 Carrols-owned locations.

    Carrols Restaurant Groups generated approximately $1.8 billion of system sales during the one-year period that ended on September 30, 202, Restaurant Brands said in a release. The restaurant group operates in 23 U.S. states including North Carolina, New York, Ohio and Tennessee.

    Related: Burger King Is Spending Millions on Renos, Whopper Revamps

    The new deal is part of RBI’s attempt to revitalize the Burger King brand and accelerate sales growth in a plan called “Reclaim the Flame,” which, per the release, will double down on new and existing technology, invest in digital, and improve operations and marketing in an attempt to turn business around for the fast-food chain.

    In 2020, Wendy’s took over the No. 2 ranking of largest burger chain from Burger King, and in 2023 two major operators filed for bankruptcy. The chain also closed hundreds of stores last year.

    “Carrols has demonstrated strong and improving restaurant operations over the years. This acquisition is an exciting accelerator to our ‘Reclaim the Flame’ plan that is focused on relentlessly pursuing a better experience for our Guests,” Tom Curtis, President of Burger King U.S. and Canada said in a release. “We are going to rapidly remodel these restaurants over the next five years or so and put them back into the hands of motivated, local franchisees to create amazing experiences for our Guests.”

    Burger King announced its plan to improve restaurants in September 2022 by revealing that it would be investing $400 million into updating restaurants and advertising.

    Related: Internet Raises Over $420,000 for Burger King Employee

    However, in Q3 2023, Restaurant Brands reported that U.S. business for Burger King remained flat while same-store sales grew 7.2%.

    “Back in the last few quarters, we had been behind the industry in terms of our same-store traffic, and that’s been progressively getting better every quarter since last year,” Restaurant Brands CEO Josh Kobza told CNBC at the time. “So it was a big milestone for us now to get to flat traffic.”

    Restaurant Brands International was up 14% in a one-year period as of Tuesday afternoon.

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    Emily Rella

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  • How Technology Has Made Franchising Easier for Everyone | Entrepreneur

    How Technology Has Made Franchising Easier for Everyone | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As a business model, franchising has always benefitted from contemporary technological advances. In recent years, franchise ownership has skyrocketed in correlation with the explosion of tech improvements across a wide spectrum of industries and business functions.

    The largest change over the last few years? Technology has leveraged time efficiency, which in turn, allows for scalability of the business and time flexibility for the franchise owner, allowing more business models to be semi-absentee, meaning the franchise owner can be part-time.

    Historically, franchising has been a very owner-operator-centric business, meaning a full-time commitment from the owner. Depending on the business model, this can still be the case, but technology has allowed for a variety of improvements to time-consuming but necessary tasks for most service-based franchises. Now, the franchise owner doesn’t necessarily have to be an expert in every facet of the business because technology has streamlined certain processes that used to be very labor-intensive. Most importantly, a franchise owner is only paying for their small proportionate share of a large, nationally scaled tech stack with which local competitors could not possibly compete.

    Let’s consider several key areas where technology has transformed franchise ownership.

    Related: Why Franchisors Must Embrace Technology to See Growth

    1. Employee management

    Retaining valuable employees is key to ensuring your business is being properly run and represented. In terms of employee management, consider some of the more mundane tasks that historically had to be done by hand: payroll, scheduling, onboarding paperwork, etc. Now, by using software designed for these very processes, the time commitment for each has fallen dramatically as well as the need to learn how to do these tasks manually. This eliminates hiring hourly employees for mundane tasks and frees up the owner’s time while reducing costs. In my franchise, our scheduling software was so good it eliminated dozens of hours of time and empowered employees at a cost of only $30 per month.

    2. Optimizing profitability through efficiencies in routine repeatable services

    As your customer base changes, how do you stay efficient? Let’s look at a tool we all use frequently: the GPS on our phone. Imagine you’re following a route on your GPS when an accident happens 15 miles up the road. What happens? Are you forced to maintain your course and wait it out? No, if a new route becomes more optimal, your phone updates. Technology like this optimizes your time and efficiency with hardly any decision-making on your end. There are many examples of similar technologies helping franchise owners become more efficient. For example, a home cleaning brand has AI for generating the optimal route for their cleaning crews, reducing drive times and increasing profitability for every hour worked.

    Related: This Game-Changing Marketing Solution Will Give Your Franchise a Competitive Edge

    3. Customer acquisition strategies: revenue

    When considering revenue streams, business owners are confronted with how to develop effective marketing. For franchises, marketing is extremely targeted because the franchisor has invested in market research on a national scale. Dollars spent are more efficient because there is less mystery in what will work for your specific franchise customer base.

    Once you’ve captured the customer with effective marketing, automation and optimized CRM software create a positive customer journey. As an example, think about the last time you scheduled a hair appointment. Upon making the appointment, you may have received a confirmation text. A few days before the appointment, you may have gotten a text reminding you of the appointment and asking you to send back “Y” or a simple character to confirm you will be there. Upon your response, you receive an immediate message welcoming you to the studio. Even after the appointment occurs you receive a text thanking you, you are provided a digital receipt, and asked about scheduling a future appointment. Think about how much heavy lifting this automated communication has taken off of the hair salon.

    4. Sales

    In addition to the marketing and customer journey tools mentioned above, additional technology can now be leveraged to meet very specific customer needs. For example, let’s consider “visualizers.” Interested in buying a couch? Getting a new pair of glasses? Possibly renovating a space in your home? Now, there are visualizers that can use a picture or video to produce a rendering of a product in your space.

    Another common example lies in at-home service visits from a professional team (think plumbing, roofing, painting, etc). When a representative comes to your home to provide an estimate, everything from the appointment scheduling to the quote you receive is documented. Consider receiving a sales presentation during this visit from the representative. During the presentation, the software can track how long the salesperson stays on each slide, the speed of progression through the presentation, whether they got the sale or didn’t get the sale and more. This is all reported to the franchisor, which can in turn track this data and make the process more effective for your sales team.

    Related: How You Can Leverage the Power of a Franchise Network

    5. Strategic decision-making

    When you think about making large-scale business decisions, it’s vital to have financial data and historical reporting. In a franchise, dashboards, analytics and general ledgers are standardized. Due to these standardized reports, there are benchmarks and for any given line item that can be compared against other franchisees so you can manage every part of your business.

    Suppose you need to make site selection real estate choices for your storefront, maybe you need to understand customer habits and use psychographic reporting, or maybe you’re expanding and need to understand the detailed logistics of what an expansion process looks like. The level of transparency across multiple franchises allows for real-time data to be collected and used by the franchisees giving them advantages when making business-altering decisions as well as small-scale optimization decisions.

    Ultimately, there’s no question that franchising has been drastically improved due to technological advances. Considering vital business functions like employee management, profitability optimization, customer acquisition strategies, sales processes, strategic decision-making and more, technology has paved the way for individuals to become business owners with fewer and fewer roadblocks in a way that could never be accomplished as a stand-alone business.

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    David Busker

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  • Wisconsin Fast Food Location Bans Unsupervised Minors | Entrepreneur

    Wisconsin Fast Food Location Bans Unsupervised Minors | Entrepreneur

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    A restaurant in Waukesha, Wisconsin, is not having it when it comes to “unsupervised minors,” so much so that they’re banning them from dining there in the first place.

    Taco John’s is going viral after posting a colorfully worded notice on its door condemning kids for a slew of unruly behavior including “stealing soda, stealing condiments, leaving huge messes” and being rude to staff and in the lobby area.

    Related: ‘It Was Alarming’: Restaurant Charges Family With Children $50 Fee, Lists Reason as ‘Adults Unable to Parent’

    “We now collectively made the decision and have a new policy in place,” the sign from management reads, stating that all children under 18 must be accompanied by an adult to enter the lobby area of the restaurant. “As this is unfortunate for the minors who were [respectful] and well-mannered, this is a decision we made and did not make lightly.”

    The restaurant manager said that the incidents in question involved middle school-aged kids from Les Paul Middle School, which is located just across the street, per local outlet FOX 6.

    The manager also said that police have not had to be called in light of the incidents.

    The restaurant isn’t the first to stand against minors disturbing the peace.

    Related: ‘These Fees Are Getting Out of Hand’: Diner Claims She Was Charged 5% Fee At Restaurant to Support Employee Health Care

    Just two months ago, Toccoa Riverside Restaurant in Blue Ridge, Georgia, sparked outrage when a photo of its menu made its rounds on Reddit, which noted that customers would be hit with a surcharge for “adults unable to parent” if children at the restaurant misbehaved.

    Taco John’s did not immediately respond to Entrepreneur’s request for comment.

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    Emily Rella

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  • AI Drive-Thru Tech Is Secretly Powered by Humans | Entrepreneur

    AI Drive-Thru Tech Is Secretly Powered by Humans | Entrepreneur

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    Artificial intelligence has been hailed as a game changer for many sectors, including the restaurant industry, which has dealt with soaring labor costs over the past decade.

    The promise of using AI to lower labor costs is particularly appealing for fast-food restaurants with drive-thrus, where up to 14% of orders were placed inaccurately in 2023, according to a study from Intouch Insight. Fast-food chains, including Wendy’s, have started using in-house or outsourced AI tech to take drive-thru orders.

    RELATED: How the NLRB’s New Joint-Employer Rule Will Affect Franchisees and Franchisors and Redefine Franchise Relations

    But according to new SEC filings from Presto Automation Inc., a major player in the AI-ordering game, “off-site agents” actually help ensure order accuracy in more than 70% of customer interactions, Bloomberg reported.

    Presto’s sales pitch to its clients, which include Del Taco, Carl’s Jr. and Checkers, is that utilizing its tech to take drive-thru orders will free up workers to prepare food. It claims its “friendly, human-like AI voice assistant is available 24/7, always operates at peak efficiency, and never forgets to upsell.”

    But it turns out the company is using a critical tool to ensure order accuracy — humans. It employs off-site employees in countries including the Phillippines to double-check orders in more than 70% of cases, according to Bloomberg. The company told the outlet in an email that this process “helps train its system and should reduce human intervention over time.”

    “It highlights the importance of investors really understanding what an AI company can and cannot do,” Brian Dobson, an analyst for Chardan Capital Markets, told Bloomberg.

    Presto, which was founded in 2008, went public in September 2022. Its tech is used in more than 400 restaurants. The company’s stock fell more than 10% as of Friday afternoon.

    Related: Can Presto Automation Bring AI to the Drive-Thru?

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    Entrepreneur Staff

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  • Is This What McDonald's Spinoff Restaurant CosMc's Will Look Like? | Entrepreneur

    Is This What McDonald's Spinoff Restaurant CosMc's Will Look Like? | Entrepreneur

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    McDonald’s is taking one giant step into the past to leap into its future.

    The fast food chain announced the grand opening of a space-themed eatery, CosMc’s, based on the six-armed ET from McDonald’s ads that aired in the 1980s. Remember those?

    While McDonald’s is being secretive about the details, FOX Business reports that the first CosMc’s will open early next year in Bolingbrook, a Chicago suburb. A few other restaurants will follow in 2024, scattered like constellations across the U.S.

    The small-format concept restaurant will feature an extensive beverage selection that includes coffee, iced teas, lemonades, and a lineup of energy drinks called “signature galactic boosts.” Customers can also expect a mix of food and desserts that blend nostalgia with novelty.

    Space Age McD’s

    Last July, CEO Chris Kempczinski shared with analysts that while CosMc’s will be recognized as a distinct entity, it will maintain the essence of McDonald’s globally celebrated brand. A new logo will replace the golden arches in a more modern navy blue and yellow palette.

    FOX 32 Chicago recently captured aerial glimpses of the mystery-shrouded Bolingbrook location. And an X-user posted photos of the alleged location under construction.

    Photo by Iman Jalali (via X)

    Menu shrouded in mystery

    While McDonald’s has not yet been forthcoming about CosMc’s menu, some online food detectives have unearthed menu previews showcasing alleged specialties like a Pear Slushy, Blueberry Ginger Boost, Churro Frappe, and a Spicy Queso Sandwich.

    Amidst all the excitement, McDonald’s shares have seen an 8% increase over the year, slightly behind the broader market’s advancements. The anticipation is palpable, as the fast-food magnate is expected to shed more light on its strategic developments and innovations during tomorrow’s investor day.

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    Jonathan Small

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  • Woman Accidentally Tips $7K on Subway Sandwich | Entrepreneur

    Woman Accidentally Tips $7K on Subway Sandwich | Entrepreneur

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    Automatic tipping prompts have been wildly unpopular with customers at popular chain restaurants, but sometimes, human error can mean leaving an even bigger tip than the machine prompts.

    This was precisely the case for Subway customer Vera Conner, who accidentally left a $7,105.44 tip on a $7.54 sandwich at a Georgia location of the chain.

    Conner, who paid using a Bank of America credit card, accidentally input the last six digits of her cell phone number, thinking she was earning Subway loyalty points. But the screen had in fact asked her to enter the amount she wanted to leave for a tip.

    Related: Starbucks Customers Are Furious Over New Digital Tipping System

    “When I looked at my receipt, I was like, ‘Oh, my God!’” Conner told NBC News. “Who would leave a tip like that?”

    The charge, which Conner made on October 23, took nearly a month to reverse, which only happened after she made trips to the Subway store and bank and disputed the charge with Bank of America, which was initially denied.

    “You hear all the time that you should use your credit card instead of your debit card so that these things don’t happen,” she told the outlet. “I’m even getting mad at the bank, because I’m like, ‘How did they not think $7,000 was suspicious at Subway?’”

    On Monday, the bank issued a temporary credit for the charge, but Conner noted that she will no longer be using the loyalty rewards app.

    A spokesperson for Bank of America told the New York Post that the company “asked Subway to refund the money to the client and we’re please[d] they have agreed to do so.”

    Subway did not immediately respond to Entrepreneur‘s request for comment.

    Related: Oklahoma Man Charged $4,500 at Starbucks After Tipping Error

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    Emily Rella

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  • Chick-fil-A Celebrates 3,000 Restaurants With $300k Donation | Entrepreneur

    Chick-fil-A Celebrates 3,000 Restaurants With $300k Donation | Entrepreneur

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    Chick-fil-A is opening its 3,000th restaurant on Thursday in Dallas, Texas, and is celebrating by giving back.

    “Marking the 3,000th milestone is a testament to our local Owner-Operators, Team Members and Guests and their continued support of the Company,” said Chick-fil-A CEO Andrew T. Cathy in a statement on the company’s website.

    Cathy, 45, has been with the company for 16 years and is the grandson of Chick-fil-A founder, S. Truett Cathy, who passed away nine years ago. He stepped into the role of CEO in November 2021, according to LinkedIn.

    Chick-fil-A plans to celebrate the feat with a plaque at the store, a ribbon-cutting ceremony attended by Cathy, and $150,000 donations to Feeding America, a nonprofit with a nationwide network of food banks, and Junior Achievement, which helps support students with resources for learning.

    RELATED: Chick-fil-A Has the Country’s ‘Slowest Drive-Thru,’ But It’s Still Bringing in Major Profits

    “We are so thrilled to be celebrating together as we honor our founder, and my grandfather, S. Truett Cathy’s mission of remarkable customer service and demonstrating care to all,” Cathy added. “As we continue to expand, we still take pride in the fact that our restaurants are locally owned and operated businesses that invest in their people and their community, and Chick-fil-A RedBird is no exception.”

    The new restaurant, located in the RedBird mall, is owned and operated by Consuela Jacobs, who had previously worked as a Chick-fil-A team member, according to the statement.

    The new location is expected to bring in 110 full- and part-time jobs to the local area, per Fox Business.

    RELATED: Elite Chick-fil-A Location Offers 4 Day Weekends to Employees

    Chick-fil-A has plans to expand to Asia and Europe by 2025, according to the company’s website.

    The fast food chain’s revenue hit $6.4 billion in 2022, according to the Franchise Times, which is a 10.6% increase from its 2021 earnings of $5.8 billion.

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    Sam Silverman

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  • McDonalds Announces ‘Free Fries Fridays’ Until End of Year | Entrepreneur

    McDonalds Announces ‘Free Fries Fridays’ Until End of Year | Entrepreneur

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    How about some free fries with that shake?

    McDonald’s announced today that starting this Friday, they will offer customers a free carton of medium fries every Friday. In a promotion that they’re fittingly billing “Free Fries Friday,” the fast-food giant is offering the deal until 12/31/23.

    But, of course, nothing in life is entirely free. Free Fries Friday comes with a caveat designed to get diners to use the McDonald’s app. In order to partake in these golden delicacies, customers must first make a $1 minimum purchase in the McDonald’s mobile app.

    How it works

    To claim your free McDonald’s fries, follow these steps:

    • Go to the deals tab in the McDonald’s app, select the Free Fries Friday deal, and tap the “Add Deal to Mobile Order” button—only one order per customer.
    • Make your payment using any major credit card. Your card will not be charged until you check-in. Add or remove a payment card using the Checkout and My Account screens.
    • Check-in at any participating McDonald’s to pick up your free Fries (with $1 minimum purchase). Get them delivered to you with curbside pickup, or grab a bag at your nearest McDonald’s Drive Thru.

    Bullish on the app

    McDonald’s is clearly McAnxious to get customers to continue using their app. They’re also offering 10 Free McNuggets with their first app order (again with a minimum payment of $1).

    Retailers love mobile apps because they allow them to connect directly with customers, pushing messaging and offering deals. Also, research shows that conversion and average transaction value are higher on mobile apps than on their e-commerce sites.

    Not that McDonald’s is having trouble getting customers to download their app. According to QSR Magazine, the McDonald’s mobile app was downloaded 127 million times worldwide in 2022, with 40 million new downloads in the U.S. That figure was 194 percent more than McD’s closest competitor, Starbucks.

    Time will tell if Free Fries Fridays will catch on like Taco Tuesdays, Wing Wednesdays, or even Meatless Mondays. But McDonald’s hopes people “make it fry day with a friend.” After all, French Fries are consistently the best-selling item on the McDonald’s menu.

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    Jonathan Small

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  • 6 Key Metrics Top Franchise Restaurants Use to Measure Potential | Entrepreneur

    6 Key Metrics Top Franchise Restaurants Use to Measure Potential | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When it comes to measuring potential, it often feels a lot like guessing. We use vague sayings like, “Go big or go home,” or “You can either be a big fish in a small pond or a small fish in a big pond.” It’s either big or small. Successful or not. Worth it or worthless.

    How come we’re only measuring potential like it’s purely black or white?

    For under-appreciated small giants with limited resources, this is too simplistic. If you have limited resources, time and energy, scaling takes thoughtful strategy — something that franchise restaurants have long learned the hard way.

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    Thalia Toha

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