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Tag: Franchises

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

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

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    How can a brand expand?

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

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

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

    You approach expansion very carefully. Tell me about that.

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

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

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

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

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

    Related: 15 Strategies for Quickly Expanding Your Business

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

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

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

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

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

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

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

    Related: How Franchisees and Franchisors Can Master Their Relationship

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    Madeline Garfinkle

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

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

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

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

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

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

    Related: 3 Common Obstacles of Franchisors

    Leading with branding

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

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

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

    Related: Four Factors Influencing a Franchisor’s Success

    Reintroducing the world to kickboxing

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

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

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

    Representation matters

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

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

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

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

    Related: 9 Factors to Consider When Choosing a Franchise Attorney

    Finding good partners

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

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

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

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

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

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

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

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    Clarissa Buch Zilberman

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  • The Power of Franchisee Training Videos | Entrepreneur

    The Power of Franchisee Training Videos | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Franchisors love to tout the training and support offered to franchisees in their system, which is designed to provide an education on the ownership and operation of their respective brands. It’s vital to communicate the instructions that make up the corporate training process, as the majority of franchise concepts make the valid claim that prior industry experience isn’t necessary to run the business models. But when job safety and accident prevention are often key components, you simply can’t underestimate the value and importance of training new franchisees.

    This is why some franchisors go all out during the onboarding phase. Many have developed elaborate programs, billed as “[insert brand here] University,” that provide countless hours of classroom and on-the-job training sessions. But are these dry, classroom-style sessions truly the most effective – and cost-efficient – way to reach new franchisees?

    In search of a better and more cost-effective solution to training new franchisees, should brands consider transitioning their valuable resources and money elsewhere? Below makes the case for using video as the primary medium.

    Related: 4 Big Benefits of Improved Employee Training

    What’s at stake

    Training new franchisees on operating a business model where they often have no prior experience requires a serious and sober approach, especially if new owners plan to handle the day-to-day operations. For instance, you can’t expect a former CPA to run a pest-control franchise without first communicating the associated risks and hazards that come with handling dangerous and harmful pesticides and chemicals. Just the same, a successful medical device sales executive has no business operating a chainsaw at great heights soon after purchasing a tree-trimming franchise. In both of these cases, communicating the associated workplace risks is every bit as important as teaching new franchisees how to acquire new customers and manage online ad campaigns.

    The value propositions of video

    What franchisors should value more than any other aspect of the training process is engagement. And securing the right level of engagement requires a training program that’s interesting, informative and even appealing. If franchisees find the instruction to be entertaining and enjoyable, they’re much more likely to retain the knowledge you’re trying to communicate. Forrester Research has conducted studies that reveal employees are 75% more likely to watch a video than read documents, web articles or emails. And thanks to the repetition and sharing that videos allow, retention rates rise, increasing trainees’ ability to remember details and concepts.

    One study, undertaken by the SAVO Group, found that — in the absence of video learning — employees were unable to retain as much as 65% of the material presented. Instructional video also allows for consistent messaging, meaning the information franchisors need to convey is absorbed equally by viewers. Lastly, the use of video — an effective, portable and engaging medium — also comes with metrics, allowing franchisors to track views, sharing, comments and even downloads. Why the discrepancies in effectiveness? Most experts attribute this to a theory known as The Cone of Experience, which holds that individuals can recall up to 50% of what is presented to them. If that sounds discouraging, the recall rate is 30% for what they see, 20% for what they hear and only 10% for what they’ve read.

    Related: How to Scale Your Training with Video and Learning Management Systems

    Is eLearning a thing?

    The sudden onset of the global pandemic brought radical changes to many industries and business channels that needed to adapt quickly to the public health threat. Education, with its pivot to online, or eLearning, offers one of the strongest examples. But is eLearning a thing? Video-based instruction and visual learning entered the mainstream almost overnight, and the results have been intriguing.

    Businesses and organizations are in near-total agreement that videos help them train their employees better and faster, and they plan to continue using the medium as part of their overall digital learning strategy. The flexibility that comes with video instruction has proven invaluable. Through video learning, users have the ability to pause, rewind and even rewatch content — giving the viewer full control over learning and comprehension of the proposed subject matter.

    How video saves time, money and resources

    The current training programs and onboarding platforms offered by many franchisors require the repetition of expenses in time, money and resources. It’s a time-consuming process, but transitioning to video could eliminate a majority of repetitive fixed costs. There are no scheduling conflicts or plane tickets to secure for instructors or franchise trainees. There are no venues to book, rooms to reserve or meals to cater. In fact, with the simplicity that comes from video training, trainees can absorb the required instruction whenever and wherever they choose — including the comfort of their own homes.

    As industries across the spectrum continue their rapid transformation to an all-digital world, the portability, engagement and effectiveness of video will play a central role in the comprehension of valuable information. The world of franchising is particularly suited to take advantage of the benefits that video production offers, and they go well beyond training programs. Many leading brands, as well as several upstart and emerging concepts, are already reaping the benefits of integrating video into their platforms. Video has become an effective tool for franchise development, recruitment, training, sales, customer acquisition and even ongoing support. Those that have invested in high-quality, brand-specific content for numerous franchise programs and initiatives will continue to reap the whirlwind of success associated with a powerful and consistent medium — video production.

    Related: How to Create A Video-Based Employee Onboarding Program To Maximize New Hire Productivity

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    Trevor Rappleye

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  • For Franchise Business Growth, Embrace Technology or Bust | Entrepreneur

    For Franchise Business Growth, Embrace Technology or Bust | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Technology is a pervasive part of our lives and businesses. But that’s not a new concept — we’ve been adapting to technology every day for decades now. What’s important to note these days is the importance of staying on the cutting edge of tech as competition in the franchise industry continues to grow more than ever before.

    The franchise model not only creates the necessity for the franchisor to stay in-the-know on current trends and advancements but also to keep its franchisees up to date as well. This is because, at the end of the day, staying on top of technology attracts both franchisees and customers. In the current world in which we live, franchisors are responsible to their franchisees and customers to find new tech as well as to maintain, update and fortify existing systems.

    Related: Smart Tips for Growing Your Franchise

    Franchisors must keep a finger on the pulse—and disseminate accordingly

    The focus of technology for a franchisor should be adding value and making business easier for the customer and the franchisee. To do this, franchisors must keep up with advancements in the tech sphere, adopt relevant developments and then pass them through to the franchisee and/or customers.

    Every part of franchise operations has a technological element, from training software and point-of-sale systems to social media, mobile apps and digital payment platforms. Figuring out which emerging operational tech is going to succeed and is worth investing in is where it can get tricky. However, franchisees rely on their franchisor to seek out and weed out these opportunities on a regular basis. Industry conferences, continuous research and curiosity about how other industries are engaging new tech are all ways franchise organizations can learn and grow in this space. A robust IT department headed up by a Chief Technology Officer can be key in passing along new information and training franchisees as well.

    Franchisors have to determine the usefulness of different technologies available and discern what is going to be effective from top to bottom of the organization in order to use it competitively.

    Using technology to attract franchisees

    When potential investors meet with a franchisor, a major discussion topic should include what technology the system is currently using and what its goals are for the next three to five years. Franchisors who make it a priority to guide unit owners in developing their building design with flexibility for future technology are going to keep a competitive edge when recruiting franchisees as well. In my experience at the educational child care franchise system, Kiddie Academy, many of our franchisees have a tech background and know what to look for and expect when it comes to selecting a business opportunity that knows what’s what when it comes to the latest developments. It’s also smart for franchisors to focus on scalability when it comes to selecting technology that will attract franchisees so as to offer solutions that are cost-effective and add value across the board.

    Another reason to stay current on trends to recruit franchisees? Younger generations rely on technology more than any other generation and have high expectations for its use. If your technology isn’t updated, you may be missing out on some great young entrepreneurs. Overall, if franchisees feel like the technology in place helps them market to customers, make sales and run a successful business, everyone benefits.

    Related: The Best Software Solutions and Tech Providers in the Franchising Industry

    Using technology to attract customers

    The goal of using technology in franchising is to solve needs for both franchisees and for customers. Because the customer experience is so important to earning and keeping business, it’s important to make sure that the technology in place is simple to use and effective.

    As a child care franchisor, my company is constantly assessing the needs in our customer experience that aren’t being addressed in our industry — one of which is allowing self-scheduling for center tours. With self-scheduling, we can allow parents to schedule a tour of a Kiddie Academy location quickly and easily, bypassing many manual steps that used to occur in the process and would potentially throw up barriers for prospective customers. Now, busy parents can go onto our website and secure a time for a tour (and reschedule or cancel a tour) instantaneously.

    Other technologies that consumers have come to expect include mobile payment options, relevant email marketing tactics, classroom cameras, robust mobile apps and an engaging social media presence. At the end of the day, parents and customers in general are looking for ways companies are using technology that will make their lives easier and the purchasing process quicker.

    Tech maintenance and security are of the utmost importance

    Once you have sophisticated technology for your organization in place, maintaining the systems and keeping customer data safe is key to continued success. Network security issues and the rise of system failures means that businesses must protect information and data as securely as possible. It’s best to spend time and money upfront to head off a failure or breach and to have backup plans in place in advance. Some industries, like child care, have more sensitive information on file than others and should be managed appropriately. Without constant vigilance, workflow and trust can be negatively impacted for customers and franchisees alike.

    Related: This Innovative Technology Will Level Up Your Franchise Businesses

    Technological innovation is important to all industries today, especially the franchise industry, as it helps attract both franchise investors and customers to the business. Make sure the tech your company focuses on is worth the effort and that the time will be available to protect and maintain it.

    How will you know if your new tech is a success? If your usage and satisfaction are high. Make technology seamless (to the point where it becomes so integrated, it virtually disappears) for your company and its stakeholders, and your business will reap the benefits.

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    Jeff Brazier

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

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

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

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

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

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

    How much can you invest?

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

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

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

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

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

    Leverage is like wine — wonderful if you know your limit

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

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

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

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

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

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

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

    So how much is too much?

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

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

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

    Related: The 4 Biggest Myths About Franchising

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

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

    Meet with your banker

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

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

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

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

    Get started with The Franchisee Handbook

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

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

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

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    Entrepreneur Staff

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  • 5 Tips for First-Time IFA Convention Attendees | Entrepreneur

    5 Tips for First-Time IFA Convention Attendees | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The 2023 IFA Convention will be held at the Mandalay Bay Resort and Casino in Las Vegas, taking place from Sunday, February 26 through Wednesday, March 1. It’s a five-day extravaganza, widely known as the biggest trade show of the year for the franchising industry. The theme of this year’s show, “All In. All Here,” reflects this acknowledgment. I first attended the annual IFA Convention in 2019, but I’ve learned so much since my first exposure to this all-important gathering.

    I wanted to pass along some of the things I’ve learned over the years, including what to do — and what not to do. It’s my hope that any first-time attendee will benefit from these five helpful tips.

    Related: ‘Bigger and Better Than Ever Before’: What to Expect at the 2023 IFA Convention

    1. Attend speaking events and panel discussions

    You know what makes the best salespeople the best? They have an insatiable appetite for learning. When it comes to the prospects you’d like to cultivate at the IFA Convention, you should strive to learn everything you can about what they have to offer. So, make it a point to attend the speaking events and panel discussions that reflect your target market. Listen intently. Take notes. You’re making a commitment to learning what they’ve learned. And it will make it much easier to connect with them in person down the road.

    2. Don’t bolt right after the show

    A great deal of IFA Convention attendees bolt for the airport the minute their obligations are squared away, leaving a trail of smoke behind them. Ever wondered why? You’ve already spent a considerable amount of time, money and effort into attending this once-a-year event. So, you might as well stay that one extra night — or at least make plans to attend the final dinner engagement. Speaking from personal experience, I’ve found that some of the most intimate conversations I’ve ever had at the IFA Convention occurred during this occasion, long after most others attendees have already filed out. The closing cocktail hour and dinner party are all about fun and friendship-building. And I’ve also discovered that the connections you make there can be 100 times more impactful than 500 cold calls or emails.

    Related: Your Step-By-Step Guide to Attending a Franchise Trade Show

    3. Do some advance outreach

    Networking opportunities at the IFA Convention should begin long before you ever set foot on the trade show floor. So, take my advice and do a bit of pre-convention outreach. First, carefully review the trade show’s agenda, looking for prime connections in your target market. Commit to attending their speaking or panel discussion sessions — then let them know about it in a friendly email. The name of the game is “no hard sell,” as you’re not looking to close a deal ahead of the event. You’re simply looking for a way to make an ice-breaking introduction. Email a select few in your target market, and share your interest in hearing their presentations. It’s an excellent way to lay the groundwork for networking in person later. It almost always makes it easier to get an audience with your preferred contacts. But even if you only get through to one individual, that’s still a very big win.

    4. Be selective with your time

    The annual IFA Convention is big. Really big. You simply don’t have the time or bandwidth to hit every single exhibitor — not by a long shot. Do some valuable pre-show reconnaissance, and plot your movement on the trade show floor ahead of time. When you do amass your list of preferred contacts and their booth information, stick to your plan. But when you stop by, don’t do a fly-by business card exchange. Do your best to make that all-important personal connection with your preferred contacts. Do, or say, something memorable. Turn the charm up to 11. Look for things you have in common. At the end of the show, if you’ve secured 10 memorable conversations, that’s much better than coming away with 762 business cards of no significance.

    5. Look for additional shows to attend

    If you don’t end up with any leads, clients or new business following your first IFA Convention, don’t be discouraged. Quitting is for quitters. And some research has shown that it takes a minimum of three years in the franchising space to become known. So, repetition counts. If you want to become part of the franchising industry’s exclusive community, it takes effort, patience and persistence.

    Related: 10 Franchise Trade Shows That You Don’t Want to Miss

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    Trevor Rappleye

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  • Entrepreneur | Resales Could Be Your Best Route to Franchise Ownership

    Entrepreneur | Resales Could Be Your Best Route to Franchise Ownership

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    Opinions expressed by Entrepreneur contributors are their own.

    Franchising can be a great way to get into business ownership. Look for a proven operating system, strong unit-level profitability, a great management team, differentiated and valuable product/service offerings and satisfied franchisees.

    Most people who think about starting a franchise business end up looking at new unit development. That’s because most franchise opportunity marketing is geared toward selling new units. You may not even think about buying an existing unit or group of units. But if you’re considering starting a franchise business, then resale options should absolutely be on your radar. Remember that resales can also be combined with new unit development! So, it’s not a case of “either/or” (new OR resale) but could be “yes/and” (new AND resale) for the right buyers.

    Related: The Pros and Cons of Franchise Resales

    Why you should consider resale options

    Assessing resale options is a great way to understand the value potential of any system you’re considering. What do units sell for when owners retire? Is the brand too young to have much of a resale history? Are resales going to existing owners who want to expand (because their experience as a franchisee is positive), or only to new operators (who don’t know the brand as well)? Are owners exiting after a long tenure with a history of good cash flow, or soon after joining because it didn’t work out? You can learn so much about a system by looking at resales.

    Second, stepping in to run a business that’s already producing cash flow may be a better fit and less risky for many prospective franchisees. That existing cash flow can help you either acquire more units or build out new units much faster than if you had started from scratch. With a resale, the business is already operating. You’ll have a much better sense for the potential of the business, competition and areas for improvement.

    You can tour the site or the territory. You can mystery shop and potentially meet the staff. You can assess existing marketing campaigns and spending and the impact on revenue. You can review multiple years of business results, including what happened during the pandemic. When starting a franchise from scratch, you can never be sure whether a concept will resonate or whether you’ll be able to find a good location. You also have to hire and train your entire team. It may take up to three years to fully ramp up a new franchise unit. Yes, walking into a going concern is a bit like drinking from a firehose, but if you assess the business carefully and you’re confident about the existing team in place, you can get off to a fast start.

    Related: What’s Old Is New Again for These Two Resale Franchisees

    Things to keep in mind

    Keep in mind that franchise salespeople earn commission on new unit sales, usually not resales. Keep their incentives in mind if they give you advice. Large franchise systems usually have strong resale programs and well-established processes. But it often takes smaller brands a while to handle transfers in a coordinated way. Don’t be put off if a younger system doesn’t have a smoothly operating resale program just yet.

    There are business brokers in every community with franchise resale options. You can also approach owners directly and let them know you’re interested. Especially if you’re solely focused on resale opportunities and tell them so, they won’t see you as a threat and thus may be willing to share information about the franchise that can help you decide whether to keep looking within that system or consider other options.

    Between 3-5% of franchise units are typically transferred every year. FRANdata forecasts that we ended 2022 with 792,000 franchise units in the U.S. If we assume 3-5% will transfer again this year, that’s 23,760 to 39,500 potential resales coming available. Not all of those will transfer, of course, and many will end up as multi-unit acquisitions, especially in legacy systems. But it still suggests there should be a robust number of units available from retirements as an option for you to consider.

    Franchisees exit for many reasons. Retirement, a desire to monetize their years of hard work, burnout, relocations, illness, change in personal circumstances, etc. are all drivers. In healthy franchise systems, the transfer cadence is relatively predictable because it is tied to renewal schedules and lease expirations. There are only surprises if unforeseen personal circumstances prompt an exit. Unfortunately, for other brands, profitability issues drive churn. As you examine resale options, make sure system churn is due to normal retirements and not a red flag about system viability.

    Related: Preparation Is the Key to Franchise Resales

    Finally, as you’re talking through resale options, listen closely to what the corporate team says about the exiting franchisee and the reasons for system turnover. Turnover is natural in a franchise system. Corporate team defensiveness about turnover is not. It’s incredibly bad form to blame turnover on franchisees, yet during mystery shops, I hear “it was just a bad fit” more than 95% of the time. Keep in mind that the corporate team has the final say on who is allowed into a franchise system. If it truly is a case of bad fit, it reflects badly on corporate’s approval process.

    Speak to as many franchisees as possible to understand whether they are growing and investing in expansion units, including resales. Try to talk to other owners who have acquired resales in that system. Did the business meet their expectations? Have they gone on to expand further in new units or other resales? How did they start strong and maintain early momentum?

    You may find the route to business ownership has been partially paved by an entrepreneur in your own community. They are ready to retire and looking for someone like you to take the reins of the business.

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    Alicia Miller

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  • Entrepreneur | Franchise Your Business in 7 Steps

    Entrepreneur | Franchise Your Business in 7 Steps

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    Opinions expressed by Entrepreneur contributors are their own.

    Franchising your business is a proven route to rapid growth. But becoming a franchisor is not an automatic ticket to success, especially in this challenging economy. In January, for instance, three established franchisors filed for bankruptcy protection: Taco Del Mar Franchising Corp., Uno Restaurant Holdings Corp., and Daphne’s Greek Café.

    Still, many business owners dream of seeing their brand become a household name, with a network of franchisees from coast to coast or around the globe. When the right concept is franchised effectively, it can be a great expansion strategy that doesn’t require as much up-front capital as growing through company-owned units.

    If you’re considering franchising your business, know that the process of becoming a franchisor is usually long and involves considerable cost. Just because you qualify to sell franchises doesn’t mean you will find buyers. Data from the International Franchise Association shows that of the 105 companies that started selling franchises in 2008, more than 40 had not reported the sale of their first unit by the end of 2009.

    Becoming a successful new franchisor entails making many thoughtful decisions early on that will affect your business for years to come. There’s also a lot of legal paperwork to wade through to make sure your business complies with federal and state laws that regulate the franchise industry.

    Here’s our guide to the important steps you’ll need to take along the road to becoming a new franchisor.

    Step One: Step One: Evaluate if Your Business is Ready

    The first question to ask is whether your business is suited to being franchised. Beyond having a track record of sales and profitability at the existing business, there’s several factors to weigh here, says Mark Siebert, CEO of the national franchise-consulting firm iFranchise Group.

    Consider your concept.

    Most good franchise concepts, he says, offer something familiar, but with some unique twist to it. A good example is Florida-based Pizza Fusion which offers a familiar product–pizza–but with all-organic ingredients, delivered in hybrid-electric cars.

    The concept has to appeal both to end consumers and to prospective franchisees. There should be an expectation that more units will create economies of scale and increase profits. Additionally, the business needs to be something you can systematize and replicate, not something that needs your personal touch to be successful.

    “Ask youself, is the concept salable?” he says. “Can you clone it? Does it provide good returns?

    Check your financials.

    Most successful franchises take a business that’s already profitable and try to replicate that success in other locales. Cleveland-based franchise consultant Joel Libava says he likes to see companies with at least a couple of profitable units beyond the first one already in operation before a company tries franchising.

    “Is it just one great restaurant and mama’s wonderful pizza sauce?” Libava asks. “Or did you keep growing?”

    Gather market research.

    Don’t rely on your gut feeling that your business would be a smash hit across the country. Gather market research to confirm there is widespread consumer demand beyond your home city for what your franchise business would offer, and room in the marketplace for a new competitor.

    Prepare for change.

    Becoming a franchisor means you’ll be engaged in entirely different activities than you were as a business owner. You’ll primarily be selling franchises and supporting franchisees now, instead of selling pizza or fixing toilets.

    “Ask yourself if you’re comfortable having a role as a teacher and salesperson, selling and supporting franchisees,” Siebert says, “as opposed to going out there and doing it yourself.”

    In addition, franchising your business will require that you relinquish some of the control you’ve had over how your concept is executed.

    “Franchisees won’t do it exactly the way you would, even if they do it well,” says IFA president Matthew Shay. “If you are so married to your concept that you won’t let anyone else touch it, then franchising may not be right for you.”

    Evaluate other alternatives.

    Before you plunge into franchising, you may want to consider other options, Siebert says. Depending on your situation slower growth, finding debt financing or taking on partners are all alternatives that may prove better ways to move forward.

    It also can cost $100,000 or more, so ask yourself if your company has the financial resources. Remember that while franchising allows you to grow fast, it also means giving up most of the franchise units’ future profits, Shay says.

    Step Two: Learn the Legal Requirements

    In order to legally sell franchises anywhere in the United States, your business must complete and successfully register a Franchise Disclosure Document with the Federal Trade Commission . In the FDD, you’ll be asked to provide a wide range of information about your business, including audited financial statements, an operating manual for franchisees, and descriptions of the management team’s business experience.

    Beyond the federal FDD requirements, some states have their own rules for selling franchises within their borders. California and Illinois are generally regarded as having the most daunting registration process, says Libava. If you want to sell in one of these states, you’ll need to meet their requirements as well, at additional cost.

    Franchisor Cindy Deuser, 51, co-founder of five-year-old franchisor Lillians Shoppes, says the rule binder her home state of Minnesota provided was two inches thick. It took the bargain-fashion-accessory company a full year and cost more than $100,000 to qualify in 45 of the 50 states, she reports.

    “It took longer than we thought, and was very intense in terms of all the things you have to cover,” she says.

    To advise and assist in this process, consultant Libava recommends hiring an experienced franchise consultant or franchise attorney. Often, a new company will be set up to act as the franchisor. Find an expert who can make sure you’re doing every required step correctly.

    Step Three: Make Important Decisions About Your Model

    As you prepare your legal paperwork, you’ll need to make many decisions about how you’ll operate as a franchisor. Key points include:

    • The franchise fee and royalty percentage
    • The term of your franchise agreement
    • The size territory you will award each franchisee
    • What geographic area you are willing to offer franchises within
    • The type and length of training program you will offer
    • Whether franchisees must buy products or equipment from your company
    • The business experience and net worth franchisees need
    • How you will market the franchises
    • Whether you want an owner-operator for each unit or area/master franchisees who will develop multiple units

    New franchisors don’t realize how much each of these decisions can affect their future profitability, says Siebert.

    “If you’re thinking either 5 percent or 6 percent royalty, for instance, the difference doesn’t sound big,” he notes. “But five years later, when you have 100 franchises sold, and they each make $700,000 a year, that’s a $7 million annual mistake. And you’ve signed a 10-year contract.”

    Lillians’ Deuser says she and her sister/partner Sue Olmscheid, 45, ran many business-model scenarios with their franchise attorney before settling on their $25,000 franchise fee, 7-1/2 percent royalty and 10-year contract term. They seem to have hit a winning formula–Lillians has grown to 32 shops in its first two years as a franchisor with its unique concept, in which stores are only open a few days a month.

    Be careful to note whether geographic variables such as weather or local laws may affect franchisees’ success. Territory size is important too, as too-large territories may have to be bought back later at a premium so they can be split up, notes IFA’s Shay.

    In the case of San Francisco Bay-area solar-panel installation franchisor Solar Universe, the company is selling franchises in concentric circles moving outward from its headquarters, mostly in warm-weather states with high electricity costs and generous state green-energy rebates, says founder Joe Bono, 36. Solar Universe has sold 14 territories since qualifying as a franchisor in January 2008.

    Inadequate training can leave your franchisees ill-equipped to implement your system successfully. Solar Universe spent nearly $1 million preparing to franchise, Bono says, including $150,000 to create a state-of-the-art training center for franchisees complete with indoor roofs where they can practice installations.

    Shutterstock.com

    Step Four: Create Needed Paperwork and Register as a Franchisor

    Once you’ve made the important decisions that shape how your franchise will operate, you’re ready to complete your legal paperwork. When you submit it, be prepared for authorities to critique the document and possibly demand additional disclosures before they approve your application.

    While the FTC essentially just files your FDD away, you’ll need to wait state approval. Bono reports Solar Universe waited several months to receive comments back from the state of California on its filing, and it took four months in all to get approved there.

    Step Five: Make Key Hires

    As you prepare to become a franchisor, you’ll usually need to add several staff members who will focus solely on helping franchisees. In the case of Solar Universe, the company sells its franchisees the solar panels they use, so founder Bono says he needed a full-time hire to staff the order desk. The company also hired a trainer and a full-time “franchise advocate” to answer franchisee questions and resolve any problems.

    For its part, Lillians Shoppes hired a trainer, a creative director, a marketing assistant and a franchise-process manager who helped get franchisees using company software and systems, says CEO Deuser. Lillians now has a full-time staff of seven. The founding sisters still do all the buying for the growing chain, but Deuser says growth means they are already looking into hiring a second trainer.

    Shutterstock.com

    Step Six: Sell Franchises

    Now that you’re in business as a franchisor, one of your most pressing activities will be to find franchisees and convince them to buy your concept. Lillians is unusual in that the company has sold all its franchises by word of mouth and doesn’t have a sales representative. To help stimulate interest, the company offers a $1,000 referral fee to anyone who sends the company a new franchisee.

    At Solar Universe, Bono says they’ve hired two in-house salespeople to handle franchise marketing. The company has also entered into a partnership with the national franchise-consulting chain FranNet, whose consultants may present the company to their prospects. Other common sales techniques include attending franchise fairs or hiring independent franchise marketing firms to help locate investors.

    Selling franchises is difficult because of the high risk involved for franchisees, notes Siebert. Your salespeople should know your business well and be able to tell a compelling story about why you’re a worth the investment of their time and money.

    Siebert boils down the issue this way: “You’re saying, ‘I want you to give me all your money. Then, quit your job, give up your security and benefits, and go into a business you’ve never been in before. And follow my rules.’ You’ll need to establish a pretty high level of trust.”

    Shutterstock

    Step Seven: Support Franchisees

    As a franchisor, you’ll have gone through a lot to reach this point. But here – at the point where you begin supporting your franchisee network – is where a chain ultimately succeeds or fails. Your training programs and other support efforts will create quality control, notes Siebert, making sure the brand provides a uniform experience no matter which unit customers visit. With the Internet, this has increasingly come to mean providing ongoing online learning modules for franchisees to use.

    “If you’re a restaurant operator and employ 20 people in a unit,” he notes, “you have thousands of new employees going through the system every year. Without ongoing training, it’s pretty easy to institutionalize wrong behaviors.”

    At the same time, you’ll need to start marketing the growing chain to drive sales to franchisees. Many new franchisors underestimate how much this marketing and support effort will cost, says consultant Libava. Marketing encompasses everything from radio or print ads to uniforms, logos, fliers, and logo art on company vans.

    “Trust that you’re going to need a lot of money for marketing,” he says.

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    Carol Tice

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  • Considering Becoming a Multi-Unit Franchise Operator of a New Brand? Here’s What You Should Know First.

    Considering Becoming a Multi-Unit Franchise Operator of a New Brand? Here’s What You Should Know First.

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    Opinions expressed by Entrepreneur contributors are their own.

    Multi-unit operators (MUOs) in the U.S. own more than 50% of franchise units. According to FRANdata, the number of MUO franchisees with more than 50 units has grown 112.3% since 2019. Some sectors skew higher. MUOs control 82% of all quick-service restaurant (QSR) units, 71.5% of beauty-related and 72% of sit-down restaurants in the U.S.

    Some of this is natural consolidation of existing units due to retirements, and some is due to new multi-unit agreements. Many articles have been written about building wealth in franchising via multi-unit ownership. Should you consider it?

    Related: 4 Reasons to Become a Multi-Unit Franchise Owner

    Should you consider becoming a multi-unit operator?

    Let’s break this into two discussions: resales (which I will address in my next article) and new development multi-packs. Selling new multi-pack licenses is becoming increasingly common in franchising. The reasons are simple:

    1. Multi-packs generate more cash for the parent company.

    2. They demonstrate “demand,” which franchisors hope will attract private equity.

    3. Fewer franchisees are less costly to support.

    4. Only higher net worth buyers qualify

    5. Buyers themselves demand multi-pack buying opportunities because it’s easier to build operating scale and profitability.

    Multi-packs can be as small as two to three units and as large as 50-100 units or more to sell out entire large territories or states. Note that the sale of “multi-packs” is distinct from the sale of area development agreements or master licenses, which have different performance requirements.

    The competition to attract franchisee talent is fierce and expensive. High-commission outsourced sales channels, marketing and expensive lead generation eat up franchise fees. Under-capitalized young brands are at a distinct disadvantage. Royalty self-sufficiency (when a brand can fund corporate activities through royalties) is pushed out as franchisee recruiting costs rise.

    Traditionally, franchisors limited the number of licenses a new franchisee could sign until they proved themselves as an operator (or had existing MUO experience). Once inside, limits were also put on expansion licenses to ensure only proven operators in good standing with the franchisor were allowed to add territories. But more emerging brands now skip the initial step and jump right to selling multi-packs.

    Besides trying to sell their way onto private equity’s radar, this is how some young brands get around the “starvation by high commission” problem in a high-cost sales environment. It seems nonsensical to me that anyone would agree to buy a 10+ pack of licenses from a brand with only 10 total units open. But buyers are doing exactly that. Some brands even sell with messages about how they only accept “executive” buyers who don’t need financing. This is meant to partly flatter buyers but can also signal that there isn’t enough margin in the business to allow any financing!

    There shouldn’t be pressure to buy so much upfront from an emerging brand. There’s little chance your home market will suddenly “sell out.” But aggressive salespeople sometimes convince buyers otherwise (“We have ten units, all in Florida. Where are you calling from? Indianapolis? It just so happens we have another candidate ready to sign for that market!”). Furthermore, candidates may be rushed through a 30-day buying process (“Don’t wait! Territories are selling fast!”).

    Related: 5 Encouraging Facts to Know About Multi-Unit Franchising

    Case study

    Here is a case study to consider. This is an emerging franchise currently sold by an outsourced franchise sales organization (FSO). I’m not including names because I want you to take away the signals of a potential problem brewing … not get hung up about a specific brand.

    The company’s Franchise Disclosure Document: Item 19 earnings disclosure for 2020 included the financials of only one corporate unit. Three franchise units had been sold but were not yet open, so no financials for those franchise units were included. The company showed a net loss of $92,000 in 2020 and had only $43,000 in cash. Mid-year in 2021 the company had nearly $26,000 of credit card debt. The company paid $363,000 in franchise sales commission. There were also $753,000 of “uncategorized expenses,” a whopping 62% of total corporate expenses reported. Based on the “strength” of this FDD disclosure, the company hired an FSO to help it start selling franchises. And sell it did! As the FSO proudly asserts on its own website, “from 3 to 320 awarded!”

    The current 2022 FDD shows $9M 2021 income, of which $8.8M was franchise fees. But 6.1M immediately went out the door in sales commissions paid. Credit card debt was $32,000. The Item 20 showed 50 units open and another 49 in development. Training expenses were $15,000. I pay more than that for my kid’s school tuition! What sort of training was provided for the 50 units open that only cost $15k? And what happened to the “320 awarded?” Some multi-pack opportunities are worthwhile, but to me, this emerging brand has red flags.

    Here’s my advice on new multi-pack agreements:

    1. Start small — three or fewer units. Unless you have franchise experience and the system is proven, you’re burning cash on fees for units you may never open. You can add expansion territories later. Have your attorney carefully review territory, site approval and encroachment contract language.

    2. Validate! Talk to as many franchisees as possible. Are they meeting their profit objectives? Did all their units open?

    3. “Territories” sold by population size require extra due diligence. It’s often a crafty way to upsell you and get you to pay more in fees instead of crafting viable territories of the appropriate size in the first place. If the territory is not exclusive, you have double trouble. Population number also doesn’t address demographics or density. Talk to franchisees at length about what makes their territories and the model financially viable. Determine cash on cash return for your investment. Is it worth it?

    4. Slow down. Do your homework. If you see red flags, don’t talk yourself into anything. Move on. The right franchise opportunity is out there.

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

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    Alicia Miller

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  • How This Trip to Italy for Pizza Cost Less Money Than Domino’s

    How This Trip to Italy for Pizza Cost Less Money Than Domino’s

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    When it comes to pricey pizza, Domino’s probably isn’t at the top of a “Most Expensive” list.

    But one TikToker is going viral for showing how going international — flight included — can be even cheaper than a pie from the beloved chain.

    In a clip that’s been viewed over 2.2 million times, influencer Callum Ryan took viewers on a journey from his home in the U.K. all the way to Milan, Italy to prove that he could get to Italy and back with a slice of pizza for less than the price of a medium size Domino’s pizza that usually goes for £19.99 (or about $24.11)

    Viewers were flabbergasted watching him snag an £8 flight from London to Milan and head straight to a pizza place that he said was recommended to him on TikTok.

    @thatonecal Do you think the pizza was worth the trip…? ?? I can’t believe how close it was ? #thatonecal #milan #pizza #dominos ♬ Green Green Grass – George Ezra

    There he received a free glass of Prosecco and ordered a Margherita pizza.

    The results? The pizza was €8.50 with €2.50 for table service bringing the grand total to €11, or £9.72. Add that to the £8 flight and the grand total is £17.72 or about $21.37.

    “We did it! We flew all the way to Italy for pizza for less than the price of a Domino’s,” Ryan said excitedly.

    Though undoubtedly impressive, many viewers in the comment section questioned if this was really legitimate as Ryan didn’t factor in the price of a cab or flight home.

    “Bro how you get to the airport, how you get to the pizza place from the airport, where you staying,” one pointed out.

    “Cost of getting to the airport, cost of getting from the airport to the pizza place, cost of the flight home,” another questioned.

    Even bargain airline Ryanair, the airline that the TikToker used for his flight, had to join in on the fun by commenting “We still have £8 flights?!?”

    “Apparently you do,” Ryan jokingly responded back.

    For those in the U.S. looking to pull off a similar feat, don’t get too excited. The average price of a stateside medium-sized cheeze Domino’s pizza is about $7.99.

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    Emily Rella

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  • McDonald’s Is Testing a New Strawless Lid in Aim to Go Green

    McDonald’s Is Testing a New Strawless Lid in Aim to Go Green

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    Many businesses are taking steps toward a greener future — including McDonald’s.


    Andrew Aitchison | Getty Images

    The fast-food giant has started testing strawless lids in some U.S. cities as part of a multi-year initiative to make its packaging more eco-friendly, CNN Business reported. It’s part of the chain’s attempt to reduce greenhouse gas emissions from its offices and restaurants by 36% between 2015 and 2030.

    Related: 8 Things McDonald’s Can Teach You About Business Success

    Removing straws might seem like a small detail, but data from the nonprofit Ocean Conservancy revealed that nearly 7.5 million plastic straws were found on U.S. shorelines during a five-year research project — and that’s up to 8.3 billion on the world’s coastlines.

    McDonald’s new plastic lids have a pullback tab to keep spillage at bay. Customers can tuck it into a small opening to sip their beverage, not unlike the design Starbucks rolled out several years ago.

    Related: A Guy Just Totally Ruined McDonald’s Holiday Cups With a Simple Drawing

    “These lids help optimize our packaging and eliminate the use of small plastics, just one example of the many solutions we’re reviewing as part of our ongoing global commitment to reduce waste,” a McDonald’s spokesperson said in a statement.

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    Amanda Breen

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  • Burgers Are Still 15 Cents at the Oldest Operating McDonald’s

    Burgers Are Still 15 Cents at the Oldest Operating McDonald’s

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    McDonald’s has long been a historic staple of American culture, but as time has gone on, the famed fast food chain’s menu and aesthetic have changed with the times.


    TikTok

    But for diners looking for some nostalgia, the oldest-running McDonald’s is still open for business in California — and is garnering attention again thanks to one TikToker whose video of the joint has recently gone viral.

    TikToker Michelle Fonesca recently brought viewers on a journey to visit the Downey, California location of the chain where burgers are still sold at their original price — just 15 cents!

    @rnthruwonderland Order the fried apple pie at the oldest McDonald’s in the world! Come to Downey California to check out the retro charm ?? #restaurantsinlosangeles #downeyca #vintage #vintagevibes #mcdonalds #retrolook #retrovibes #1950s #drivein #mcdonaldssecrets #fyp #foryou #foryoupage #foodie #lafoodie #lafoodreview #viralvideo #viraltiktok #losangeles #foodlover #foodchallenge #pepsiapplepiechallenge #historical #historicalplaces #fastfood #applepie #hamburger #fypシ #fries #mustvisitplaces #lafoodies #lafoodspots ♬ CUFF IT – Beyoncé

    The video displays a massive Ronald McDonald statue complete with retro neon signage outside the restaurant, which features a walk-up window similar to an ice cream shop.

    The camera also pans to other retro memorabilia and a display of red and white chairs and tables.

    The clip, which has been viewed over 31,500 times, also boasts that this location serves up fried apple pie for dessert.

    Viewers were delighted by the nostalgic spot.

    “It was and still is so colorful, most McDonalds are just beige and sad looking,” one user wrote.

    The original McDonald’s in the U.S. is also located in California (in San Bernardino), though it is no longer in operation.

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    Emily Rella

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  • Top 15 Home-Based and Mobile Franchises 2023

    Top 15 Home-Based and Mobile Franchises 2023

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

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

    Home improvement

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

    Initial franchise fee: $19,950

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

    Number of units: 1,378

    Number of employees required to run: 1-3

    Absentee ownership allowed: Yes

    Retail

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

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

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

    Number of units: 4,771

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Snap-on Tools

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

    Residential cleaning

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

    Initial franchise fee: $0

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

    Number of units: 1,589

    Number of employees required to run: 20

    Absentee ownership allowed: Yes

    Explore Ownership with The Maids

    Retail

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

    Initial franchise fee: $8,000

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

    Number of units: 1,919

    Number of employees required to run: N/A

    Absentee ownership allowed: No

    Explore Ownership with Matco Tools

    Commercial cleaning

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

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

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

    Number of units: 10,418

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Jan-Pro

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

    Environmentally friendly commercial cleaning and disinfecting

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

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

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

    Number of units: 2,900

    Number of employees required to run: N/A

    Absentee ownership allowed: No

    Explore Ownership with Stratus

    Commercial cleaning

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

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

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

    Number of units: 1,791

    Number of employees required to run: 1-2

    Absentee ownership allowed: Yes

    Explore Ownership with Anago

    Related: 5 Great Ways to Research Franchise Businesses

    Food

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

    Initial franchise fee: $15,000

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

    Number of units: 1,480

    Number of employees required to run: N/A

    Absentee ownership allowed: No

    Explore Ownership with Kona Ice

    Food

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

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

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

    Number of units: 1,807

    Number of employees required to run: N/A

    Absentee ownership allowed: No

    Explore Ownership with Cinnabon

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

    Maintenance

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

    Initial franchise fee: $49,500

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

    Number of units: 253

    Number of employees required to run: N/A

    Absentee ownership allowed: Yes

    Explore Ownership with Monster Tree Service

    Services, Real estate

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

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

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

    Number of units: 1,155

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with HomeVestors

    Travel agencies

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

    Initial franchise fee: $495-$10,500

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

    Number of units: 1,618

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Dream Vacations

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

    Retail

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

    Initial franchise fee: $0

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

    Number of units: 789

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Cornwell Tools

    Retail

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

    Initial franchise fee: $8,000

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

    Number of units: 1,131

    Number of employees required to run: 1

    Absentee ownership allowed: No

    Explore Ownership with Mac Tools

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

    Maintenance

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

    Initial franchise fee: $40,000

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

    Number of units: 625

    Number of employees required to run: N/A

    Absentee ownership allowed: Yes

    Explore Ownership with Lawn Doctor

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

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    Entrepreneur Staff

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  • Heirs of Subway’s billionaire founders could become some of America’s richest people overnight in a $10 billion sale deal

    Heirs of Subway’s billionaire founders could become some of America’s richest people overnight in a $10 billion sale deal

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    The late co-founders of Subway, Fred DeLuca and Peter Buck, had little inkling decades ago their sandwich shop in Bridgeport, Conn., would grow into one of the world’s largest restaurant chains. But now, their heirs stand to become some of the richest people in America. 

    The sandwich giant is exploring a sale that could value it at more than $10 billion, and has retained advisors with that in mind, according to the Wall Street Journal, citing people familiar with the situation

    A Subway spokesperson wrote to Fortune, “As a privately held company, we don’t comment on ownership structure and business plans. We continue to be focused on moving the brand forward with our transformational journey to help our franchisees be successful and profitable.”

    In 1965 a teenaged DeLuca asked Buck, a family friend and nuclear physicist, for advice on funding his college education, according to Insider. That led to Buck lending him $1,000 to start a sandwich shop—a move that eventually made both men billionaires. 

    DeLuca ran the company for decades as it rapidly expanded in the U.S. and internationally. Buck became a largely silent co-owner after the company switched to a franchise model in 1973.

    From its humble beginnings as Pete’s Super Submarines shop—which did indeed pay for DeLuca’s University of Bridgeport education—the company went on to dwarf McDonald’s (and every other restaurant chain) by number of U.S. outlets. Its roughly 21,000 domestic locations registered $9.4 billion in sales in 2021, up 13% from 2020, and worldwide it had about 37,000 stores, according to the Journal. 

    Subway has all along remained a private business with two families behind the scenes. After DeLuca was diagnosed with leukemia—he died in 2015 at 67—his sister Suzanne Greco became CEO, until she retired in 2018. 

    In 2019, the company finally brought in an outsider, picking former Burger King CEO John Chidsey to take the helm.

    According to the Journal‘s sources, a sale of Subway could attract both private equity firms and corporate buyers.

    Because Subway never went public, its finances—and how much money went to DeLuca, Buck, and their relatives—have never been open for public scrutiny. 

    But as Bloomberg reported Thursday, hints have emerged here and there. Buck, by the time of his death at age 90 in 2021, had become one of the largest U.S. landowners, and he won a tussle with the IRS over gifting land to his sons at a steep discount. 

    DeLuca collected $1 million per day in royalties in the early 2000s, according to a deposition from banker Fran Saavedra in 2017, as reported by Insider. He remained frugal despite his wealth, to the consternation of some relatives. 

    Now, if a sale of the company comes to pass, the families of both men could become substantially wealthier. It’s unclear who in the families are in line to receive a windfall, but DeLuca, for example, was survived by his son Jon, who serves as director of the Frederick A. DeLuca Foundation and, according to a 2021 article in Fort Lauderdale Illustrated, is raising children with TV personality Kavita Channe.

    Learn how to navigate and strengthen trust in your business with The Trust Factor, a weekly newsletter examining what leaders need to succeed. Sign up here.

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    Steve Mollman

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  • Viral Side Eye Meme Star Inks Deal With Popeyes Years Later

    Viral Side Eye Meme Star Inks Deal With Popeyes Years Later

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    Since the inception of meme culture, hundreds of unassuming people have become viral overnight sensations, with funny gifs, videos or images of them being used as templates for memes across the board.


    Instagram

    For one 9-year-old who became a Vine meme years ago, that success is about to pay off big time.

    Dieunerst Collin went viral after a man videotaped him on Vine thinking he was then-famous Vine star Lil Terrio, who had a catchphrase of saying “OOOH” in an adorable voice.

    When the man approached Collin by a soda fountain at a New Jersey Popeyes asking him to deliver the line, Collin side-eyed him in a hilarious loop that’s been used across the internet for years since.

    Fans who learned of Collin’s football successes posted a photo of him winning the state championship with the East Orange High School football team in New Jersey, putting up a side-by-side of the original meme and him making the same face years later.

    The side-by-side was quickly picked by SportsCenter where it received over 1 million likes on Instagram.

    Collin is now an offensive lineman for the Lake Erie College football team in Painesville, Ohio, which caught Popeye’s attention after eager Twitter and Instagram users (and Collin himself) called on the brand to give him an NIL deal, essentially a brand partnership for college athletes.

    “I thought this is probably the opportunity I can get with Popeyes to at least reach out,” he told ESPN. “I went on Instagram and decided to post asking everyone to repost and tag Popeyes, not knowing that I would get all the support I got. People just started to join, on my post and people that were on the ‘SportsCenter’ post, and I believe Monday afternoon was when Popeyes DM’ed me and said we actually want to work with you.”

    On Thursday, Popeye’s confirmed that the deal had been inked.

    “Only thing I can say is that I will be promoting that business like crazy,” Collin told USA TODAY. “I actually love Popeyes myself.”

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    Emily Rella

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  • These Are the Hottest Franchises to Watch in 2023

    These Are the Hottest Franchises to Watch in 2023

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    Opinions expressed by Entrepreneur contributors are their own.

    Image Credit: Mariaelena Caputi

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

    The numbers tell an interesting story.

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

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

    Related: 5 Great Ways to Research Franchise Businesses

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

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

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

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

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

    Related: 2022 Top Franchise Suppliers

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

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

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  • 4 Ways Pet Care Industry Must Transform Its Marketing

    4 Ways Pet Care Industry Must Transform Its Marketing

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    Opinions expressed by Entrepreneur contributors are their own.

    The pet care industry is on a tremendous upward growth curve. More frequently than ever, human beings are bringing furry friends into their lives and discovering how quickly they become family. The business of pet care doesn’t end once someone stops by the shelter or pet store and comes home with a cute puppy. It’s far more complex than that, so it stands to reason that marketers should approach pet parents intricately.

    A common marketing trend in the pet care industry is to throw all and sundry at the market and see what sticks. But, as with any other industry, understanding your customer and their needs is everything. You will miss the big catch if you’re casting your net too broadly.

    Sharpen your focus with four specific strategies, and you’ll soon see your pet care company grow:

    1. Personalization

    Understanding the customer persona each of your products serves and crafting your brand to fit those customer profiles is key to reaching the right pet parents. Your customer may be a cat person, but is their feline friend a kitten or a senior? Do they have long fur that needs grooming or an easy-to-manage short coat? Indoor only, or do they have access to a garden? Drilling down to the depths of your customers’ needs is undoubtedly the best start to transforming your marketing strategy.

    Related: Are You Giving Your Customers Personalized Experiences? Here’s Why You Can’t Afford to Ignore It Any Longer.

    2. Understand the pet life cycle

    Puppies and kittens are wonderful, but that time makes up a very short period of the entire life cycle of our pets. If your pet care company markets only to this stage, you’re missing an entire segment of the market.

    As pets grow, their needs change. Their food requirements are different and they interact with different toys. Dogs may attend training classes and teenage cats may need scratch posts when they start to flex those claws. Senior pets, especially, have very specific needs. Older pets have no use for toys or training clickers; the focus is on keeping this pet pain-free and relaxed in their old age. If need be, consult a veterinarian to understand the life cycle of the various types of pets you’re marketing to. Especially if you’re focused on exotic animals who may have a far shorter or longer life cycle than an average dog or cat.

    3. Track like a hound

    The pet care industry is quite unique, but one thing it has in common with all other industries is the need for accurate attribution. It is vital to understand how each pet parent came to be your customer, what channels they used and what marketing action causes them to move through the sales funnel.

    It’s also important to avoid making any assumptions about your customers based on their last known interactions with your business. Monitor their movements and reactions to your campaigns carefully to understand what drives them.

    If there is one aspect of attribution that is almost always forgotten, it is telephone calls. Pet parents have questions. They want to be 100% sure that what they’re buying for Tiger or Fido is the right fit. And you can be guaranteed that a vast majority of these customers will want to speak with a human being to assure them of this. Telephone calls are a vital part of the sales process, regardless of whether the person on the line is inquiring or complaining. If you aren’t tracking phone calls, you’re missing an entire leg of your customer’s journey.

    Related: Man’s Best Friend — And Investment: The Thriving Industry of Pet-Related Franchising

    4. Get creative

    There are no one-size-fits-all marketing campaigns in the pet care industry. What resonates deeply with one pet parent may mean nothing to another, so getting creative with your campaigns is vital.

    Just like human parenting, parts of the pet parent journey often don’t get discussed. You might be surprised how many customers will resonate with a campaign around less-discussed issues like separation anxiety or bladder weakness.

    The tail end

    Although these marketing strategies are particularly helpful to the pet care industry, they apply to most industries with a few slight tweaks.

    By implementing these marketing strategies, you can increase your ROI dramatically and put your marketing dollars to good use.

    Pet care is an exciting and fulfilling industry to work in. If you learn to focus on your customers as individuals and understand their needs, you’ll build lifelong brand relationships with them and their furry companions.

    Related: 4 Reasons the Pandemic Is a Boon for the Pet Industry

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    Sergio Alvarez

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  • Chick-fil-A Fined for Paying Employees in Meals Instead of Wages

    Chick-fil-A Fined for Paying Employees in Meals Instead of Wages

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    Chick-fil-A fans may dream of free food from the coveted chain, but for workers in one North Carolina-based location, it looks like free meals were all they were getting.

    The Department of Labor has slammed a Hendersonville, North Carolina Chick-fil-A with fines for paying off employees who served as drive-thru traffic directors with meal vouchers instead of traditional wages.

    The restaurant was ordered to pay back $235 each to seven employees, bringing the grand total of money owed to $1,645.

    The report says that denying the workers minimum wage is a direct violation of the Fair Labor Standards Act.

    Eagle-eyed social media users caught the restaurant asking for “volunteers” to come direct traffic in exchange for five free meals per shift on their Facebook page in a now-deleted post that has been screenshotted and shared to Twitter.

    “This is a volunteer-based opportunity, which means people can opt-in to volunteer if they think it’s a good fit for them,” the restaurant clarified in a screenshotted response to angry commenters claiming that it was a labor law violation. “We’ve had multiple people sign up and enjoy doing and have done it multiple times.”

    The Department of Labor report also claims that the restaurant allowed three employees under the age of 18 to operate a trash compactor, violating child labor laws that prohibit minors from performing dangerous jobs.

    “Protecting our youngest workers continues to be a top priority for the Wage and Hour Division,” Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina said in a Department of Labor release. “Child labor laws ensure that when young people work, the work does not jeopardize their health, well-being or educational opportunities. In addition, employers are responsible to pay workers for all of the hours worked and the payment must be made in cash or legal tender.”

    According to PayScale, Chick-fil-A employees make an average of $12.51 per hour, ranging from $8.77 to $19.44 per hour. The average pay for an employee with the company in North Carolina is $13.53.

    Entrepreneur has reached out to Chick-fil-A for further comment.

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    Emily Rella

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  • 8 Real Estate Questions To Ask Potential Franchisors

    8 Real Estate Questions To Ask Potential Franchisors

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    Opinions expressed by Entrepreneur contributors are their own.

    There are many reasons why entrepreneurs may want to buy a franchise. Making a brand successful is a tremendous amount of work in today’s world. Competition for consumer dollars is fierce. It can be challenging to elevate a brand and achieve profits. These profits will stem from a well-thought-out and strategic business plan.

    The beauty of buying into a franchise is that the brand is already proven. Also, franchisees can benefit from the franchisor’s assistance in navigating the business’s challenges. As for specific profits, each franchisor should disclose sales and estimated earnings in their Franchisor Disclosure Document, often referred to as an FDD.

    Before buying a franchise, here are eight essential questions to ask.

    Related: Thinking of Buying a Franchise? These Four Industries Are Flaming Hot Right Now

    Does the franchisor have a dedicated in-house real estate department?

    If a franchisor has paid corporate staff whose sole purpose is to assist their franchisees with the real estate process, then the franchisor gets a star in my book. The franchisee will typically have a real estate broker represent them in selecting a site and negotiating the deal. However, the in-house real estate manager is vital to assisting the franchisee’s broker. The in-house real estate manager will provide the franchisee’s broker with detailed site criteria tailored to the franchised branding requirements.

    How do the real estate department and support staff size compare to the franchise sales department?

    Of course, franchisors need a sales department to sell franchises and grow their brand. Nevertheless, it is a good idea for a potential franchisee to know the size of the franchisor’s sales department. It might be a red flag if a company has an extensive sales department and little support staff for the franchisees.

    Related: Looking to Buy a Franchise? Here’s How to Start

    Does the franchisor have a real estate approval process?

    The majority of franchisors will need to approve a franchisee’s location. The approval process always needs to happen before a franchisee signs a lease. If the franchisor does not have a method of approving the site where the franchisee’s business will be, then the franchisee should be concerned. Not having an approval process could mean that the franchisor is in a hurry to open locations and does not have the quality of the sites as a top priority.

    Does the franchisor have a letter of intent template?

    The letter of intent is the framework for the lease. Most of the main deal points for the lease are in the letter of intent. These include base rent, additional charges, rent increases, lease length, options, tenant improvement allowance, landlord delivery, free rent and the rent commencement date. Additionally, in the letter of intent are the tenant’s use clause and the franchisor’s recommendation on necessary exclusives. The tenant must let the landlord know what use they will lease the space for, and the franchisor should provide this use language. The franchisor should also spell out exactly what they want regarding an exclusive. Exclusives protect the tenant from a landlord leasing to a competing tenant of the same use.

    Does the franchisor have a landlord’s work letter?

    The landlord’s work letter defines the conditions for delivery of the premises. Specifics to utility requirements (electric, water, & gas), heating, ventilation, and air conditioning (HVAC ), number of restrooms, flooring, and ceiling are just a few of the items covered in the landlord’s work letter. If the franchisor provides their franchisee with a landlord’s work letter, it will show experience.

    Related: The 5 Types of People You Need To Start a Business

    Could the franchisor provide a map outlining the franchisee’s territory?

    When buying a franchise territory, the franchisee will want to know specifics of where they will be able to open their business. If the franchisor does not provide a map showing this exact area, I recommend asking for one.

    Additionally, ask the franchisor how many other franchisees have purchased territories in the area. It would help if the franchisee also asked the franchisor what protection is offered to prevent another franchisee from opening adjacent to their territory. Finally, ask specifically how close another franchisee can open to an existing store. Sometimes I see franchises expand too quickly, which can hurt profitability.

    Once a franchise agreement is signed, how long does the franchisee have to find a location?

    There are two viewpoints to this question. The franchisor wants people to refrain from buying up territories and not opening stores. The franchisee only wants to open a store if the desired real estate is available in their territory. The franchisee needs to understand if there are consequences and what those consequences are if they purchase a region and do not open the store(s) they agreed to in their franchise agreement.

    Related: 5 Major Deal Points to Know Before Signing a Lease

    After purchasing a territory, can a franchisee trade territory?

    This one depends on how many franchisees the franchisor has. Most of the time, I see franchisors work with their franchisees if the franchise wants to trade territories. For example, the franchisee could wish to change territories due to a lack of quality real estate, or they may need to move their residence. It is advantageous for a franchisee to find out before signing a franchisee agreement about the possibility of changing territories.

    Purchasing a franchise is a decision that should require much thought. I also recommend potential franchisees speak to many existing and ex-franchise owners of the brand in question. The more questions asked in advance, the better-equipped one will be to run a successful business.

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    Roxanne Klein

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  • Woman Exposes Shocking Amount of Caffeine in Panera Drink

    Woman Exposes Shocking Amount of Caffeine in Panera Drink

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    One woman is going viral for a hysterical video in which she claims one of the chain’s iced beverages turns her “into the Hulk” with how much energy it gives her after consuming it.

    TikTok user @sarahebaus posted a video from her car that’s been viewed over 580,300 times on the platform, telling viewers that she’s learned of a drink that “should be illegal.”

    She frantically starts off the video explaining that she often works from a Panera to escape her home office and often indulges in the free refills that the chain offers — often having 4 or 5 cups a day. Her drink of choice? The Mango Yuzu Citrus Charged Lemonade.

    The woman then goes on to tell a story about how she went through the drive-thru with her husband who has Type 1 Diabetes, which caused him to check the nutritional value of the drink to make sure it was safe for him to consume.

    @sarahebaus @Panera Bread this drink should come with a warning because it’s delicious and will lead to my cardiac arrest #panerabread #mangoyuzucitrus #remotework ♬ original sound – sarahebaus

    She then shockingly tells viewers that one cup of Mango tea has 260 milligrams of caffeine and compared it to one shot of espresso, which has 63 milligrams of caffeine.

    “I don’t drink coffee. I don’t have caffeine very much,” she explained to viewers. “I’m not used to caffeine like that … I’ve decided I’m gonna water them down but Panera who’s gonna create a product with 263 mg of caffeine? Look what you’re doing. I’m dying!”

    Naturally, the comments were flooded with horrified viewers, especially those who had similar experiences.

    “Yeah I drank 3 of those and actually thought it was my last day on earth,” one viewer joked.

    “I had three of those one time, I swore up & down caffeine doesn’t do anything to me,” the user explained. “I was up until 3 am.”

    Others expressed their concern for the woman.

    “Set the drink down, girl,” one woman said. “You ok?”

    “This is so unhinged,” another said alongside a laughing emoji. “Is your heart okay?”

    According to Panera’s nutritional information on its website, one 20 oz serving of the drink does in fact contain 260 mg of caffeine, along with 86 g of sugar and 350 calories.

    The company also points out that the drink contains as much caffeine as their Dark Roast coffee.

    To put that into perspective, the FDA considers 400 mg of caffeine per day a safe amount for an adult to have per day, noting that the average person consumes about 135 mg of caffeine daily — half of one serving of Panera’s drink.

    On her Panera “office” days, it appears the TikToker was drinking more than 1000 mg of caffeine a day.

    Panera has not yet returned a request for comment.

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    Emily Rella

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