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Holly Lewis

May 22, 2013

Kiosk Culture & Franchising Unite

What makes technology so amazing for the franchise world is the variability it creates when customers and businesses unite.  Custom ordering through a simple and neutral space continues to grow in popularity as consumers become more and more comfortable with smart phones, tablets, and computers for ordering products and services that come right to their front door.

The appeal of kiosk ordering is hitting markets internationally as well as select parts of the U.S. which allows kiosk managers and the franchisees that monitor their use for their own location to closely observe customer response.  Domino’s Pizza, Taco Bell, and KFC are three global brands that have integrated kiosk ordering with their customer contact system.  In college and tech savvy communities and demographics, these devices are especially popular due to their ease of use, and discounts that may be offered for using them rather than ordering through other means.

Now at 40 percent of orders, online and mobile ordering was at 20 percent in 2009 for pizza chains, revealing a marked increase in customers taking an active interest in ordering via alternative means, versus the traditional in-person or via telephone route.  Food franchising is particularly conducive to integrating these kinds of options for customers, and not only is phone and online ordering popular, but ordering through social media sites such as Facebook is an option.  Options for customers to create an order right from where they happen to be certainly opens the door for increased sells to spring up, and technology continues to increase exposure for many brands.

Kiosks can act as standalone advertising stations that remind potential customers of a product or service that may not have been on their mind, at least initially, and with the freedom to easily place an order through the system many potential customers may choose to do so.  The added close proximity benefit and convenience factor can make this point of sale process that much more appealing for customers.  Language barriers can be overcome with kiosks programmed to communicate to customers in their native language, while diverse U.S. consumers become more familiar with kiosk culture based transactions, such as at local grocery stores and airports.  The mobility that kiosk stations provide to brands is also appealing for companies that wish to place their brand in the midst of elevated foot traffic areas where potential customers may interact more easily with the brand on their day to day route.


Holly Lewis

May 20, 2013

Franchising Appeal: Make your Lifelong Experience Count

The benefits of franchising are becoming increasingly well known around the world as interest in the industry increases.  Especially when financial stability is challenging to find, many research alternative ways to make a living with a kind of flexibility that is unique to franchising.  Here are two simple though vital ways that franchising stands apart for franchise partners:

Potential to Create Profits While Managing a Team
Certain segments of franchising may more frequently allow for fewer on the job hours while business profits remain, particularly for franchisees operating from a management perspective.  This means franchisees can arrange a situation where their former career experience pays off and their business does not require their constant presence, or depend on their time to earn money.  The ability to minimize hands-on requirements means learning how to really manage a reliable team.  This allows for a career in franchising that frees up more time while concentrating efforts on building and supporting a solid team.  Senior or home care services are often cited as segments conducive to running a franchise in this manner, as well as home based franchise opportunities.

Of course establishing this kind of work-style requires building up the business within the framework of the system and focusing on how to create a smooth running investment with talented individuals.  Hiring qualified staff thus becomes of critical importance, as the more focused and gifted your team, the easier it is to manage the cash flow of the business and oversee projects that maximize the franchise’s profitability with time.  Having system guidelines to work with and the prospect of spending less time on the job is certainly a highlight for franchise investors nearing retirement, or simply those interested in managing their business with support structures to rely on.

Identified with a Trademark or Brand
Franchise partners certainly can benefit from the name, experience and reputation of a trademark or brand; though not every business entering agreements with investors in the franchise industry is long standing or well known.  This means that benefiting from a brand upon investing, rather than starting a new business with very little to stand on initially, is typically easier to do as a franchisee.  When a brand is known for consistency and differentiating itself in a market of competitors, or even if it’s a stand alone success with little competition due to the niche services offered, franchising becomes increasingly attractive.

For potential investors, researching not just the brand’s image in the eyes of consumers but the effect of the business in its respective market is important, to confirm that the brand is actually operating as a profitable business with much to offer franchise partners and their customers.  Once a potential franchise investor has found the right match in terms of a brand and ethos that is well aligned with personal and professional goals, that brand can be relied upon going forward, to stand on and project a business from.  Most certainly being able to identify one’s business with a seasoned brand is valuable, and even newer brands on the scene have much to offer dedicated franchise investors who believe in the company’s services and are ready to vigorously promote them.


Holly Lewis

May 17, 2013

Spin on Global Franchising: Larger Franchisors Integrate Locally

Where franchise companies enter countries around the globe to further profits and expand their brand into new territories, regulations may alter the pace of growth and the interaction with locals.  Each country has its own legal regulations in terms of business management and expansion within its borders, and franchisors do well to consider how their business may progress in a new land as well as how it will be received locally.

In some countries, larger franchise businesses entering the scene procure so much business and local customer loyalty that small business owners dispersed throughout large to mid-sized cities are taking note.  This means addressing the changing scene with local governments and promoting new guidelines and regulations under which incoming franchise companies must operate.  Indonesia is one such country, with a number of business owners operating traditional establishments interested in leveling the playing field by promoting new government regulations.

The Indonesian government has offered a listening ear to established small business owners, to coordinate well between allowing major world players to enter the country and invest and playing fair with citizens who have long held businesses that must now compete with global enterprises.  Some of the new regulations involve mandates that require incoming franchise operators to work closely with Indonesian partners as opposed to a majority of international business managers in multi-unit operations.  Likewise, how and where supplies and products are sourced to run each business is getting more focused attention, with a requirement that global businesses procure at least 80% of supplies locally.

Both developments are attempts to unite local Indonesian citizens with a shifting business landscape and require international investors to interact even more closely with local producers of goods to keep the circulation of profits steadily moving throughout the country.  Major franchise corporations continue to work with government officials to find the right balance for expansion that makes sense while appeasing new regulations that may develop as the region sees more investment from global companies.

Franchise companies interested in global expansion must always consider regulations currently in place and the changing social conditions of the countries they plan to invest in, which means keep an eye on how international investors of large franchise companies will be received by governments and local business owners.  With each passing year countries experiencing increased investment may experience changes in terms of how investors are able to invest and to what extent, which naturally affects local businesses and citizens.  As new businesses rise in many countries, jobs are created and new opportunities abound, especially when locals are figured into development plans that respect the needs of citizens in the area.


Holly Lewis

May 15, 2013

Research Tools for Potential & Existing Women Franchise Pros

Why are women and franchising an excellent combination? Statistics continue to show that more and more women are turning to franchising for career prospects in various fields, and franchisors are seeking them out.  Reasons for this include key ways that franchising suits women, flexibility and opportunities outside of a 9-5 career, and increased incentives for entrepreneurial minded individuals to invest in their future differently.

The increase in information specifically available to women franchise professionals is much needed, and Franchise Direct offers the Franchise Information Center with a section devoted to females in franchising.  Some of the key resources women need when entering or navigating the franchise industry involve financing and support while developing their enterprise.

The Women in Franchising section includes a breakdown of financing and assistance resources, including government agencies and associations focused on supporting female entrepreneurs, whether entering franchising or opening a small business.   Familiarity with the legal aspects of running a business is invaluable and mentoring/training programs are available to women, to better prepare them for building and sustaining a healthy business that acquires a fair presence in their particular market.

Speaking with other female business operators that decided to take the plunge into franchise investment is a great way for interested potential entrepreneurs to step into the shoes of others and learn more about the everyday routines that make a business thrive.  Case studies and insider tips are valuable for this reason.  Women interested in franchising can connect with Colleen Hopkins, a Zoup! franchisee who shares her story of opening a franchise, and read up on ten key points for women entering franchising, straight from the minds of successful female franchise operators.

Now more than ever women need trustworthy information and resources that they can rely on to better understand just how compatible franchising is with the lives of women and the ins and outs of franchise industry opportunities.  From home-based options allowing women to set their schedule and work from home, to operating franchises in hundreds of sectors suited to their unique interests, talents, and investment potential, the franchise world is full of potential for women who choose to investigate further.  Many simply have not yet been exposed to the variety of opportunities that exist.  Franchise Direct invites women interested in franchising to explore this section of the site dedicated to their self development.


Holly Lewis

May 13, 2013

Families in Franchising: United Beyond the Job Hunt

When the job hunt doesn’t meet expectations, either in terms of length of time left unemployed or lack of opportunities in any given area, many individuals opt to enter into franchise industry investments with family members, to begin a fresh career prospect outside the typical grind without having to start a brand new business.  Across the U.S., many families are entering into profitable franchise agreements after thoroughly researching how their skills partner up with the overall franchise concept and system.

Some key aspects of family franchise arrangements must be considered and weighed between all involved to make sure that franchise business operation in any given market and segment is compatible with the personality, talents, and interests of each individual.  Family franchise teams make some of the most successful and lasting enterprises in franchising, and in kind, many families find the benefits of franchise operation far outweigh risks associated with investment, or potential downfalls of opting for a career route leading to employment.

Consider some of the following aspects of operation with a family unit:

- Many recent grads on the hunt for steady employment and unemployed job seekers closer to retirement opt to collaborate, with parents and children, or even other interested family members, joining forces rather than continuing the job hunt.  Investment potential leads many parents to franchise operation prior to retirement, working with their children to combine energy and talents.  This collaborative effort benefits retirement plans and can then be passed onto children into the future or re-sold down the line.

- What collateral can you and your family members bring to the table in terms of investment and how can you create collateral that will enable you to enter a desired career of entrepreneurship rather than employment?  Is operating multiple locations of interest?  Be prepared for initial costs, research available investment dollars, and consider a franchise situation that suits your capital situation, whether it’s $20K or over $100K.

- If your aim is to invest and then re-sell later, count on setting aside around 7 – 10 years to create a successful and reputable family operation.  Short term situations rarely lead to fast success or impressive resale values.  Expect to create something of value and you will.  Involve your family in this process and be united to reap rewards from the benefits associated with family team work that boosts a system’s stability in a local area.

- Trial and error is the name of the game, and many former college age folks, and even former corporate career focused individuals find their experience is valuable though has its limits in the world of business management.  Family franchisees often invest and train within the system, while learning as they go, which makes franchise industry prospects exciting and potentially unlike any former professional or educational pursuits.

- Dynamic family energy and creative ideas must still operate within the framework of the franchise system, so choose which system you enter and invest into with care, focusing on a concept you’re excited about while researching how franchisors encourage innovative franchisees and feedback.  Organize each individual’s talents by their respective position, assigning responsibilities that make sense and maximize the overall value of family operation.  Choose a franchise segment that is compatible with each family member’s aims, and discuss options in detail.  Know yourself and know your family, considering how certain characteristics will work with the demands of business operation.


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