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Tag: Grow Your Franchise

  • These Are the Top Global Franchises of 2025 | Entrepreneur

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

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

    See the full list here.

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

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

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

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

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

    See the full list here.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

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    Tracy Stapp Herold

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

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

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

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

    Marketing to potential franchise owners

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

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

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

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

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

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

    Related: The Real Cost of Franchising Your Business

    Marketing at the unit level

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

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

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

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

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

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

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

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

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    Emiliano Jöcker

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

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

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

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

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

    Why franchising might not be a good side hustle

    1. Your level of flexibility

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

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

    2. How much upfront capital investment you can make

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

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

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

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

    3. How much oversight you can provide

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

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

    Related: The Pros and Cons of Franchising Your Business

    When can franchising work as a side hustle?

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

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

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

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    David Busker

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

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

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

    The Myth of the “Best” Franchise

    So what is the best franchise?

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

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

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

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

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

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

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

    Related: How to Franchise a Business in 7 Steps

    How to Find the Right Franchise Match

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

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

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

    Related: See the 2024 Franchise 500 Rankings

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

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

    The Get Out of Bed Test

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

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

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

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

    Related: All the Costs to Consider Before Buying a Franchise

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

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

    Finding the Right Fit

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

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

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

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

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

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

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

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

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

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

    Work With the FranCoach Team Today

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

    Related: Is Owning a Franchise the Best Move?

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

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

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    Tim Parmeter

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

    5 Ways Franchises Can Benefit From Leveraging Offshore Talent | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

    Related: Your Most Pressing Offshoring Questions, Answered

    1. Access to a broader talent pool

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

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

    2. Cost efficiency and scalability

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

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

    3. Quality improvement

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

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

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

    4. Round-the-clock operations

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

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

    5. Leadership focus

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

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

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

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

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

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    David Nilssen

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

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

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

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    Thalia Toha

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

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

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

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

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

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

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

    Let your slogan tell your story

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

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

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

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

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

    Your slogan should be emotionally moving

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

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

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

    Related: How to Finance Your Franchise

    Position your franchise as the best option

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

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

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

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

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

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

    Whatever route you take, own it

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

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

    Get started with The Multiplier Model

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

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

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    Entrepreneur Staff

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

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

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

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

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

    1. Separate your personal hobbies from your business

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

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

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

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

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

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

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

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

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

    3. Your business should match a lasting market

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

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

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

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

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

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    David Busker

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  • Business Growth Stems From Getting the Right Customer Feedback. Here’s How to Get It. | Entrepreneur

    Business Growth Stems From Getting the Right Customer Feedback. Here’s How to Get It. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Are you seeking to foster growth and achieve better results for your business this year? In a world where customer expectations are rapidly evolving, the importance of creating a customer-centric culture cannot be overstated. One of the most effective strategies in this pursuit is the implementation of a Voice of Customer (VoC) program. However, it’s not just about launching a program; it’s about using it smartly to drive growth rather than just incurring costs.

    What is a Voice of Customer program?

    At its core, a Voice of Customer program is a vehicle through which customers provide their valuable feedback, insights and opinions about their experiences, needs, wants and expectations in relation to your products and services. It serves as a direct line of communication between your business and your customers, enabling you to tap into their thoughts and feelings to inform and enhance your strategies.

    Related: 5 Counterintuitive Ways to Transform Your Customer Care Experience

    The pitfalls of ineffective VoC programs

    Despite the popularity of VoC programs, many of them fail to deliver the intended benefits. CEOs often struggle to justify the ongoing expenses associated with these programs due to a lack of discernible return on investment. What should be a robust tool for insights and growth often turns into a one-dimensional process that merely yields scores and basic insights. So, why do these programs fall short?

    The number one reason for the ineffectiveness of many VoC programs is the failure to ask the right questions in the right manner. A successful VoC program — backed by our global experience over two decades — recognizes that customers are diverse and their interactions with your brand are unique. Therefore, a personalized approach to gathering feedback is essential. Rather than asking every customer the same questions, tailor the questions to each customer’s experience. Keep the feedback process concise, interactive and relevant, allowing for real-time adjustments. Aim to uncover the “why” and the behavioral aspects behind their feedback. Leveraging technology, such as text, audio and video responses, can enhance the depth of insights.

    Take continuous action over passive insights

    To derive value from a VoC program, it’s crucial to prioritize taking action over merely collecting insights. While measuring customer attributes and tracking loyalty drivers are important, they shouldn’t be the end goal. Instead, focus on identifying the most pressing customer-led priorities and addressing them promptly. By honing in on a single priority, it becomes easier to transition from data collection to impactful actions. Measure success based on individual and team improvements, aligning these improvements with sales growth and customer retention. By translating enhanced customer experiences into tangible business outcomes, the program’s value becomes undeniable.

    The role of program leadership

    A successful VoC program isn’t a set-it-and-forget-it endeavor. It necessitates robust program leadership and engagement. Collaboration with experienced partners is key to tailoring the program to your business, from setup to implementation and ongoing management. Software systems alone are insufficient to drive the program’s success; customization is essential to align the program with your specific business needs. A holistic approach, including ongoing management of the customer journey, actionable results and integration with sales KPIs, is the recipe for meaningful change.

    Related: Customer Centricity: What It Is, Why It Matters and How to Improve Yours

    Feedback ASAP: Driving real change

    In the quest for growth through a customer-centric culture, the “Feedback ASAP” program — getting feedback as soon as possible — stands out as a testament to the power of a well-executed VoC strategy. Rather than relying on generic solutions, this program capitalizes on personalization, actionable insights and robust program leadership to deliver tangible results. By identifying missed sales opportunities and offering real-time solutions, it empowers teams to improve their skills and capabilities through targeted eLearning.

    This integrated approach aligns changes with overarching strategic goals, making the entire business ecosystem work in harmony toward growth.

    The road to growth in today’s business landscape is paved with customer-centric strategies, and at the forefront of these strategies is the Voice of Customer program. While its popularity has grown, so has the realization that the key to success lies in asking the right questions, taking continuous action and having strong program leadership. The paradigm has shifted from collecting insights to driving results and the Feedback ASAP program exemplifies this shift. The time has come to embrace a customer-centric culture and unleash the true potential of your business through the power of your customer’s voice.

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    Phil Prosser

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  • The Power of Continuous Innovation and 3 Easy Ways to Implement It | Entrepreneur

    The Power of Continuous Innovation and 3 Easy Ways to Implement It | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It is no secret that brands and companies are always on the hunt to elevate their presence in a competitive realm. Even the most recognizable brands are finding new ways to adapt to the sway of their consumers’ expectations to grow. However, some become too comfortable in a state of stagnation once they’ve reached the highest step on the winning podium.

    Innovation is the lifeline of many companies, and to remain in stasis could eventually make your brand outdated. Thus, innovation is the key to growth that shouldn’t be overlooked. It doesn’t, however, have to be a drastic change that reinvents the wheel. Innovation can be subtle but significant, and there are many ways to achieve just that. Let’s explore the importance of easy ways to achieve innovation and how you can implement it into your internal strategy.

    Related: 4 Ways to Drive Growth-Unlocking Internal Innovation in Your Organization

    Keep your company competitive

    When your business achieves significant success with its product or service, it becomes crucial to uphold the principle of continuous evolution at its core. While this may appear self-evident, it is a common occurrence for prosperous brands to fall into complacency, stagnating their innovation process. Periods of inertia often provide an opportunity for competitors to outperform them with superior versions of those very same products or services. To maintain a sustainable competitive edge, companies must keep innovation perpetually in motion. The next out-of-the-box idea is easier said than done — however, keeping your brand relevant and modern is a more subtle, but noticeable way to keep your brand in a constant state of renewal. The best way to achieve this is through a brand refresh.

    In our digital design agency, we have witnessed first-hand that when we assist industries with brand rejuvenation, it often leads to a surge in conversions and audience growth. Whether it’s a minor tweak or a comprehensive transformation, modernizing your brand’s design language, website or marketing materials can be a potent form of innovation. This involves making forward-looking visual UI decisions that harmonize with your existing brand style, thereby ensuring your design is future-proof. Even something as simple as a logo refresh can be a powerful statement to your audience, signaling that your brand is keeping pace with the times. Every upgrade contributes to the ongoing evolution of your brand’s identity.

    Updating your brand website with tweaks to usability and accessibility is also a great way to innovate. When your company considers all users of all abilities, it not only makes it a great experience for everyone, but it also demonstrates to your consumer base that their experience with your brand is also prioritized just as anyone else’s. Incorporating ADA-compliant standards into your website, color schemes, typography sizes, alt text incorporation and more are just a few ways to boost users’ experience.

    Related: 3 Startups Making a Big Difference with Small Innovations

    Make a difference with demographics

    To truly ignite innovative thinking, fostering a culture of shared ideas and collaborative brainstorming is often the crucial catalyst to the next breakthrough concept. Consequently, it is vital for industry leaders to not only welcome but actively encourage input from their in-house teams.

    This strategy may involve ensuring a diverse workforce, inclusive of both younger and older generations, to infuse a breadth of fresh perspectives and experiences that create a productive ground for ideas to thrive. Engaging team members from a younger demographic can be particularly beneficial, as they are typically current with the latest trends, user expectations and potentially outdated practices that the company might unwittingly still be employing. This collective knowledge and shared perspective can be the driving force behind meaningful and relevant innovation. According to UNICEF, hiring younger team members can help tap into the millennial and younger audiences since they are more attuned and familiar.

    Further, innovation means growth and scalability. When you innovate for people of all demographics, you are expanding your audience base as well as growing your company’s conversions. Another best practice to achieve collaboration for fresh ideas is holding weekly idea sessions to share ideas internally on how to improve certain products or services based on client feedback and surveys. The crux here is to create an inclusive environment where every idea is heard and valued. Any dismissive attitude can rapidly quell team morale and stifle their enthusiasm for sharing their insights. Therefore, nurturing an open and receptive atmosphere is pivotal to driving successful and continuous innovation.

    Related: Great Minds Think Unalike — 3 Ways to Drive True Innovation Through Diversity

    Adopt a design-thinking mindset

    Often utilized in the digital design industry, including our agency, design thinking can help the structure of the way ideas flow. Design thinking is a problem-solving approach that emphasizes human-centered design. Design thinking incorporates empathizing with user needs, defining problems, ideating ways to improve a problem/idea, prototyping, testing, then circling back in iterative increments. Design thinking fosters a collaborative environment where multidisciplinary teams work together to find solutions. This diversity of perspectives can lead to more innovative ideas and solutions for your brand.

    Additionally, it emphasizes an iterative process. Ideas are tested and refined based on user feedback, leading to continuous improvement. This ensures your brand stays updated and resonates with evolving customer expectations. Concepts and ideas can become more defined and not simply live on as ideas but can be put into an actionable space to eventually flourish. By incorporating a design-thinking approach into your company, your team can view growth with a fresh perspective.

    In the relentless pursuit of brand supremacy, companies must continuously innovate to keep pace with ever-evolving customer expectations and outdo the competition. However, the idea of innovation often connotes seismic shifts and grandiose changes. Instead, the reality is that innovation can, and often does, happen incrementally — through brand refreshes, website updates and diversity in demographic insights — in a subtle, but powerful approach.

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    Goran Paun

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

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

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

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

    Related: 5 Strategies You Need to Build Your Brand

    Think positively

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

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

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

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

    Think aggressively

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

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

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

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

    Think beyond yourself

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

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

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

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

    Think about the future

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

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

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    Dan Rowe

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  • How to Measure Success With Comparative Testing | Entrepreneur

    How to Measure Success With Comparative Testing | Entrepreneur

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

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

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

    Here’s a quick example

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

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

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

    Now take that example and tweak it

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

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

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

    Refine your A/B tests even more

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

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

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

    Test across different media types

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

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

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

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

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

    Go beyond the marketing example

    The example above is how successful marketing systems are created.

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

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

    Get started with The Multiplier Model

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

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    Entrepreneur Staff

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

    4 Reasons You May Not Qualify For a Franchise | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

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

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

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

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

    1. Lack of capital

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

    2. Lack of business acumen

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

    3. Lack of availability

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

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

    4. Poor attitude

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

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

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

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    David Busker

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  • How to Determine Your KPIs and Achieve Profitability | Entrepreneur

    How to Determine Your KPIs and Achieve Profitability | Entrepreneur

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

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

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

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

    Related: Busting Franchising Myths and Choosing the Right Opportunity

    KPIs can be industry-specific

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

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

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

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

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

    KPI targets can differ within the same industry

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

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

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

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

    Be aware of KPI repercussions

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

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

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

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

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

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

    Categorize your KPIs

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

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

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

    Get started with The Multiplier Model

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

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    Entrepreneur Staff

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

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

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Related: A Beginner’s Guide to Private Equity

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    Alicia Miller

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  • 3 Key Methods of Boosting Franchise Operation Sales | Entrepreneur

    3 Key Methods of Boosting Franchise Operation Sales | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The old saying goes, “Sales cures all,” and that may be right, but how exactly does a savvy businessperson intending to grow a franchise go about boosting their sales numbers?

    My inbox and social feeds are filled with “helpful” pitches by marketing professionals — digital marketing, PR companies, lead generators, funnels, text marketing… the list seems endless. It’s vital, in considering all these come-ons, that you not confuse efforts and results.

    Think, for example, about how improvements in operations can compound sales growth. I call it the “10/10/10 Method:” By focusing on increasing daily customers, check size and visit frequency by 10% in each category, you’ll juice yearly sales in a disproportionality large way.

    Take Five Guys: Its average franchise location does about $1.2 million in yearly sales — roughly 220 customers a day averaging about $15.00 per check. If you can attract just 22 more people a day, and manage to up-sell one additional item on each check, things change dramatically. I recently sat down with Fransmart‘s CFO and ran the numbers: Yearly sales would go from $1.2 million to $1.59 million — a 32% increase by being just 10% better.

    Here are three ways to ensure that your 10/10/10 growth strategy is a success.

    1. Nail that trial period

    Most of your marketing budget, particularly in the early days, will be spent on getting customers to try your concept, so great operations and loyalty programs will keep guests coming back and spending more. Sweetgreen, for example, has a loyalty program that builds revenue by charging customers for extra perks, and it works. Rest assured: people will pay good money for a quality experience.

    Grand openings are, of course, vital. These events are usually held between a month before and a month after you open and should be designed to create a buzz in the market. Break through the noise by being creative; add a twist to your messaging so people won’t want to miss out.

    Be exhaustive in your research of the local market and tie your brand’s message and marketing into it. And, whether in tandem with opening events or in a separate effort, consider a discount or giveaway to give folks additional motivation to stop by. Give them a reason to invest, because good value and community support are equally vital.

    When that crowd inevitably shows up, capture it in every way you can — whether in photos, video — heck, rent a drone and show just how far the line goes. A giveaway or other tempting draw may be great, but there’s no incentive better than the fear of missing out. If the community sees a massive line, they’ll be through the door soon.

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

    2. Encourage frequency

    Repeat customers are the most profitable because you don’t have to re-market to them. If someone enjoyed their first experience, the instinct is to repeat it, in the process hopefully trying other products. There’s no marketing or incentive needed to bring these people back through the door: Your brand is the draw.

    Remember that marketing is an investment in repeat customers: it’s not a cost. Consider a customer who uses you two times a month and spends $10 each time: That person isn’t just the $10 they spend at that moment, but $240 a year and $2,400 over ten years. And that’s not even factoring in the word-of-mouth business they provide by bringing in friends.

    Another major component of encouraging repeat business is making sure customers can enjoy your brand in whatever way they want, which means having a quality delivery program. You may cringe at the cost of developing your own, and/or partnering with third-party apps, but remember: This isn’t just about building incremental sales but building a relationship with a repeat customer who will pay full price the next time they drive by your business. That’s worth an investment.

    Another vital consideration: The quickest killer of repeat business is making guests feel unsafe or uncomfortable. Great marketing might get someone through the door, but if they walk through a cobweb on their way in, it’s over. Ensure that locations are adhering to high standards of presentation, or all the other good work is wasted.

    Related: 3 Customer-Service Tips That Will Ensure Repeat Business (60-Second Video)

    3. Grow check averages

    I once asked the founder of a popular burger brand what percentage of customers also ordered its fries and maybe a fountain beverage. “Everyone does,” he replied. “Well, most everyone. I think most do.” We watched the line for the next 10 minutes, and less than one-third of the customers were also ordering fries and a drink. Why? Because there was a line out the door and the cashier was trying to move it along instead of suggesting extras.

    Once you have people in the door, you’re failing as a business if you’re not doing everything you can to maximize each sale. This is an art: You don’t want to apply undue pressure, but remember that you’re in business to sell, not just take orders.

    To that end, customer service is more than a warm smile. People want a valuable experience, and that means having their needs met. Businesses should be prepared to ask good questions, identify specific needs and offer the right products to meet them. That means making sure the staff is well-trained. Suggestive selling will lead to a better experience if it’s addressing a genuine need.

    Many businesses are turning to kiosks now to address the need for such selling. I love Wow Bao, an Asian concept in Chicago that’s nailing the ordering process. In the early days of the company, new customers were clogging the lines by asking a long series of questions when ordering, causing regulars to turn away and avoid the wait. In response, the company installed kiosks, and the check average went up by almost 20%! This has driven revenue growth while lowering labor costs and giving repeat customers a better experience… a truly winning formula.

    Related: Five Ways To Upsell Your Products And Services

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    Dan Rowe

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

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

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

    Investments in franchising are an alternative

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

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

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

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

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

    Building on an existing model

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

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

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

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

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

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

    Related: The Pros and Cons of Franchising Your Business

    Is franchising safer than a savings account or stocks?

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

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

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

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    Adam Povlitz

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  • The Best Video Marketing Advice for Franchise Brands | Entrepreneur

    The Best Video Marketing Advice for Franchise Brands | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

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

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

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

    Videos that increase franchise development and sales

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

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

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

    Videos that benefit recruiting

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

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

    Related: Connecting With Your Target Audience Through Video

    Videos that benefit training

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

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

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

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

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

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    Trevor Rappleye

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

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

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    Image Credit: Zohar Lazar

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

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

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

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

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

    Lesson 1: Ask for more.

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

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

    Lesson 2: Be creative, within boundaries.

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

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

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

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

    Lesson 3: Grow alongside everyone else.

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

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

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

    Lesson 4: Make smart lease deals.

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

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

    Image Credit: Zohar Lazar

    Lesson 5: Be the start of a virtuous cycle.

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

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

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

    Lesson 6: Take smart risks.

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

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

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

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

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

    Lesson 8: Make data-driven decisions.

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

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

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

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    Kim Kavin

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  • 4 Signs That Your Small Business Needs Funding | Entrepreneur

    4 Signs That Your Small Business Needs Funding | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Every small business can agree that securing funding is vital for a small business to grow. Whether you are a fledgling start-up business launching a new product or service, or an established small business striving to maintain profitability, cash is king when it comes to driving the progress of operations.

    Every day, small businesses face unforeseen challenges, with shrinking margins and economic competition making it crucial to allocate sufficient cash flow for a business’s financial health. According to a study by U.S. Bank, 82% of all failed businesses are due to poor cash flow management or a lack of a grasp of cash flow and its importance to its business.

    As a business owner, how do you avoid these catastrophes? With a staggering 90% of all start-ups failing, how can you proactively identify the signs that indicate the need for funding and stay ahead of these warning signals? Here are four signs indicating that it’s time your small business needs funding.

    Related: 10 Expert Tips on Managing Cash Flow as a New Business

    Experiencing gaps in cash flow

    A cash flow gap clearly indicates that your small business requires a funding boost, which occurs when a business pays out cash for expenses but does not receive the expected inflow of money within a reasonable timeframe.

    A prime example of a cash flow gap is a business that needs to purchase supplies to create its products to generate an inventory. After spending the cash on supplies, there is a delay in receiving payment from customers, creating a gap between the outflow and inflow of cash. For instance, if customers pay for the inventory after 30 days (or even worst late payments), the period between the purchase of supplies and the receipt of payment creates the cash flow gap. Consistent widening cash flow gaps can leave your business strapped financially, potentially putting it in a dangerous position if not addressed.

    Related: 80% of Businesses Fail Due To a Lack of Cash. Here are 4 Reasons Why Cash Flow Forecasting Is So Important

    Seasonal downturns in the business

    Seasonal fluctuations pose significant cashflow challenges for many businesses. A typical example is a restaurant operating on a beach in Cape Cod, Massachusetts. During the summer peak months from Memorial Day through Labor Day in September, the restaurant can encounter an endless stream of customers fleeing to the restaurant. Despite an influx of cash coming in, your business could face cash flow challenges between a surge in profits during peak seasons but struggle to maintain financial stability during off-seasons.

    With seasonal downturns and limited cash flow, the challenges of paying overhead costs with employees, rent, utility costs, etc., can create financial instability. Without proper cash flow forecasting, how can your business maintain operations and overcome these financial challenges during the off-season?

    Related: 3 Cash Flow Mistakes to Avoid at All Costs

    The business needs to change

    Every business needs to evolve and adapt to new challenges, as they cannot continue to operate with the same employees and equipment indefinitely. At some point, you need to invest back into the business to promote growth and development.

    For instance, a landscaping company has an initial upfront cost of purchasing equipment before it can hit the ground running. As the company progresses, the equipment may deteriorate and require upgrading to continue serving existing customers or expanding into new areas. Hiring skilled employees or investing in new equipment upgrades will be needed to help expand your capacities. In order for your business to meet these needs, It’s essential to reserve sufficient funds to meet these necessary investments.

    Opportunities happen

    Expecting the unexpected and be ready no matter what is the heartstring of all business owners. It’s unclear what the next card in the deck will reveal, especially when exciting opportunities arise. Hence the need for agility despite the size of your businesses. Small business owners must be particularly vigilant about having enough capital to invest in new opportunities that arise.

    In this constantly changing landscape, your business needs to be in a strong financial position to take advantage of opportunities as they arise. Whether it’s purchasing another business, opening a new location, launching a new product or the immediate need for available capital investment, the ability to act quickly can make all the difference. Without sufficient cash, your businesses can struggle to capitalize on these exciting opportunities, resulting in missed opportunities or financial losses.

    Related: How This New Accounting Feature Can Save Businesses From Fraud and Financial Mishap

    A loan is not the only answer

    The immediate response of a business owner is to reach for a loan application to obtain an injection of cash. However, a business loan isn’t always the best or only solution. One approach to improving your business’s financial situation and reducing the reliance on loans is to implement effective cash flow management tools.

    Cash flow tools can help small business owners track their cash flow, identify high-risk indicators and accurately forecast future financial health. These tools can determine precisely how much capital is needed and how an influx of cash would impact the overall health of your business. By maintaining a healthy cash reserve and minimizing unnecessary expenses, small business owners can make smarter financial decisions, reduce their reliance on loans and improve your business’s financial stability.

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    Nick Chandi

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