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Watch these video interviews conducted by Franchise Direct’s Lillie Burroughs with various representatives from the franchise community in which they speak about the state and relevance of the franchise industry during the current economic climate.

Lillie speaks to Doc Cohen, a franchisee with Great American Cookies about how franchising allows individuals to run their businesses with the combined strengths of their own business acumen along with the strengths and experience of the franchisor. Doc sees his franchise business benefiting from mutual beneficial interests between him and Great American Cookies. Their success means his success but also his success means theirs.

Lillie also speaks to Alan Storry, Vice President of Franchise Development with Regis Corporation and Dawn Kane of Hot Dish Advertising who believes “this is the right time for franchising [...] people are looking to take more control over their future”.

Donna Ettenson, Vice President of Operations for the Association of Small Business Development Centers speaks about how she thinks “that the franchise industry is growing”, and Clete Brewer, President of Sports Clips identifies one of the key benefits of franchising as a proven business model which is “tried, true and proven over a number of tough times and good times”.

Franchise Development Manager for Unishippers – Chip Baronowski says that they are committed to their franchisees during this economic slowdown and are dedicated to showing their franchisees how to run their businesses more efficiently.

Kevin Pignone, Vice President of Sales for MBE (Franchisor of the UPS Store) believes that franchising is the “means to generate new jobs and growth”.

Finally IFA leaders – Dina Dwyer Owens, Chairperson of the IFA describes franchising as “the real economic stimulus”, while Matthew Shay, President of the IFA believes in the “efficiency of the franchise business model which speaks to the entrepreneurial commitment and passion of the business owners”.

So, watch these great interviews today and find out more about the latest franchise opportunities available to you today. Also, find out more about investing in a franchise opportunity with our comprehensive franchise information center.

This week, we are delighted to feature a guest blog from James M. Wilson

Veterans and Franchising

When leaving active duty, veterans often first look to finding a job in the defense industry or in aviation or other career that is strongly related to their active duty experience. This is appropriate because there are plenty of adjustments in moving from the military to the civilian world without adding completely unfamiliar work requirements to the mix.

One area that veterans traditionally give little attention to is owning a business through buying a franchise. Generally, the first reaction a veteran has to the idea of buying a franchise is either that they don’t know anything about or don’t want to get involved in fast food or they don’t have the available cash or net worth to qualify to own a franchise restaurant. While there are many fast food restaurants franchise opportunities available, numerous other industries use franchising to expand and those opportunities are worth considering. Some may be very similar to the active duty experience of the veteran.

Franchise systems in the US have always recognized the special attributes that veterans can bring to their systems as franchisees. Veterans are comfortable working in a system that requires them to follow rules and to take charge. Veterans are generally more independent and therefore more comfortable with doing their work independent of oversight but within guidelines that the franchise system lays out.

The striking thing for veterans about owning and operating a franchise is that they do not need to be experienced with making pizza, for example, to own a pizza franchise. The franchise system provides methods for that. What a veteran brings to a franchise is an ability to follow the instructions of the franchise in effectively operating the business. Franchises are operated according to an Operating Manual that spells out all the operating procedures of the franchise. Veterans are familiar with having such a manual that details much of what the need to do to fly a plane, drive a tank, set-up and operate a field hospital or kitchen. Using and following those manuals as well as being comfortable with the idea of having this reference to refer to, to solve problems is subtle skill set that veterans have from their military experience that civilians may be unfamiliar with and have to develop. But more importantly for the veteran considering buying a franchise, the operating manual is a source of familiarity with the new business world that he/she is entering by buying a franchise that is not available if he/she starts a business on his/her own.

Recently veterans have gotten some assistance for acquiring franchises. The International Franchise Association re-launched the Veterans Transition Franchise Initiative, or VetFran, by which IFA member franchisors provide special deals for veterans. The offerings under VetFran stem from reduced franchise fees to special financing deals. You can get more information on VetFran at the International Franchise Association’s website, www.franchise.org. Additionally, in the past year the SBA announced a special loan program to assist veterans with financing for buying franchises and other business needs. The Patriot Express Loan program provides loans of up to $500,000 to veterans at reduced interest rates. Additionally, Patriot Express loans are processed more quickly than normal loans so they can be closed and disbursed in less time than other SBA guaranteed loans.

James M. Wilson is Contributing Editor to Operation Franchise. Operation Franchise is a quarterly magazine focused on helping veterans research, buy and run franchises.

He is a retired Navy Commander (O-5) and a business attorney in Richmond, VA. He is also a graduate of the US Naval Academy (1980) and the University of Richmond Law School (1992).

To find out more about franchise opportunities for veterans, visit our information portal which features a series of articles on franchise opportunities for veterans.

The coffee franchising sector is recession-resistant and an integral part of American lifestyle — these were the findings of a recent Franchise Direct study of the coffee franchise industry. After examining the FDD/UFOC documents of 29 coffee franchises, Franchise Direct has found that this $11 billion industry, after weathering a slight dip at the start of the recession, is growing and diversifying, and thus presenting real opportunities for the future.

At the moment, the coffee shop industry is extremely competitive at the top and fragmented at the bottom. Starbucks, despite its recent struggles, continues to be the industry leader, with over 10,000 cafes around the world. Because of competition from fast food restaurants and convenience stores, coffee franchises, with their established brand identity, continue to be a reliable investment for those seeking to profit from this incredibly-popular beverage.

While the global recession has forced many consumers to rethink their spending habits, Franchise Direct’s research shows that America’s love affair with coffee continues unabated. A quoted poll tracking coffee consumption found an increase in coffee drinking last year in the pivotal 25-39 demographic, as drinking habits remained level amongst 40-59 year olds last year. We can safely assume that Americans will still buy coffee even as they look to cut their personal budget.

With coffee production slated to reach record levels this year, the right coffee franchise has enormous potential for profit. The population of Italy, for instance, is five times smaller than America’s, but the Italians sustain more coffee shops. A niche investment may be the ideal approach to fill untapped areas of the market. In line with the popularity of eco-friendly tastes, there has been an undoubted switch towards organic/fair trade coffee. Our report identifies this as a $1billion industry in itself.

Our study states that location is the most important thing to consider when purchasing a coffee franchise, with 75% of coffee business success pending on where it is situated. With that in mind, we advise prospective franchisees to consider van-based franchises or kiosk units, as they provide a cost-effective means of establishing a business. Beyond that, our study lists a number of other trends and factors prospective franchisees must consider before purchasing a coffee shop, such as ambience, marketing and staff. It is also worth noting that 65% of all coffee is consumed during breakfast hours.

Another reason to consider coffee franchises is the growing consensus among experts that coffee has a number of health benefits. Past perceptions that coffee presented health risks have been erased by authoritative research from universities like Harvard, UCLA and USC. In line with these studies, new polls of coffee drinkers show an acknowledgement of this new consensus.

People exploring franchises for sale will find that coffee franchises sell a product with broad public appeal that is seamlessly adapting to American consumer trends towards healthiness, social responsibility, and environmental sustainability.

Franchise Direct has started a news video series, featuring up to date news stories from the franchise business and entrepreneurship community.

The series aims to provide viewers with informative news pieces about developments in the entrepreneurship community as well as news stories from franchises.

Download Franchise Update: 04/20/09, or view in the player below

In the first episode of Franchise Update, Franchise Direct’s Lillie Burroughs brings you news from Nutrition Zone who have just announced the opening of new store in Chula Vista, California. This episode also covers details of upcoming IFA seminars, which are available on our franchise seminars calendar. These seminars offer individuals the valuable opportunity to meet franchisors to discuss franchise opportunities available. Keep Watching!

It’s interesting to note that it’s not just the IFA who are active on Capitol Hill. A somewhat new group is lobbying Congress to fight for the rights of franchisees involved with franchise associations: the Coalition of Franchise Associations, otherwise known as the CFA.
After being launched in 2007, the CFA already boasts over 14,000 franchisee members, who employ over a million workers. The latest issue of Franchise Times has an insightful profile of the CFA that includes an interview with Frank Capaldo, the organization’s president.

“We have the same interest on certain subjects and we have the clout together to purchase anything we want,” he said. “Together, we’re bigger than a Fortune 500 company.”
The group’s focus will be on legislation, education and training, purchasing co-ops and shared research. But it will also use its collective buying power for large-ticket items. “The BK association has to buy hotel rooms (for meetings), so does Supercuts and Meineke,” Capaldo said. So it only makes sense to band together to get a price break on items and services they all need.

For franchisees in franchise associations, there’s never been a more relevant time to campaign in Washington. Card check, is of course, a huge issue, but also the push to get capital flowing again to bankroll a resurgance in small business.

“We need to get business-friendly representatives elected,” said Loren Goodridge, a Subway franchisee and the CFA’s government relations chairman. Goodridge introduced the CFAvotes.com Web site, which will provide action alerts and form-letters that can be customized to send to each franchisee’s representatives to comment on the issues.