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Donald Cranford

November 11, 2009

Happy Veterans Day

Today is Veterans Day. It is impossible to properly state in a blog post how much we value the sacrifice that American military personnel make on behalf of ordinary citizens. We’d like to simply say thanks and wish you safety and health in all you do.

For those military veterans who have recently finished their service, there are many businesses out there that are seeking your expertise and experience. Equally, the franchising industry has actively been trying to make business ownership as easy as possible. Franchise ownership provides a path to becoming your own boss that is potentially safer and more lucrative.

The discounts that are available from franchisors make it even more enticing.

Here’s Franchise Direct’s outline of everything a veteran should know when considering a franchise. VetFran is also a reliable place for information. Finally, enjoy a video that breaks down the opportunities available for veterans below.


Produced by Franchise Direct


Donald Cranford

November 10, 2009

Patience for Home-Based Success

Discussion of buying home-based businesses seems to reaching something like what Malcolm Gladwell might call a ‘tipping point’.

Ever since Franchise Direct published its study on the home-based business sector, there has been a small explosion of stories about opportunities available with a home-based businesses. Of course, it’s most likely a coincidence, but it does suggest that there is a growing conventional wisdom that home-based businesses are among the best businesses on the market right now.

There are reasons why. As Fox reported, credit markets remain stagnant. Home-based opportunities, which are often more affordable, offer a great starting point to entrepreneurship while the bad times pass over.

Of all the stories on home-based businesses that we’ve read recently, the one that spoke the loudest to us was written by Kirk Bannerman on the Small Business Brief website.

Kirk’s viewpoint is essentially this: yes, you will be successful with a home-bound business, but it might not happen over night.

There are so many home business opportunities (some real, some not) that it takes real personal discipline to avoid the scattergun approach…you know, throw enough against the wall and something is bound to stick. In the early going, it is really important to resist this temptation and to stay tightly focused on a single business.

Some will argue that “I don’t want to have all my eggs in one basket”. To those people I say, diversification is fine, but only after you have achieved solid success with your initial business. A premature attempt at diversification will quite likely cause a loss of focus and actually slow down your success rate.

Other advice from Kirk:

  • Stay focused
  • Remain patient
  • Don’t get discouraged

Now this is solid advice for any entrepreneur. But it’s especially worthwhile for home-based businesses. All of the statistics are showing that home-based franchises are doing well at the moment.

But after you make the investment, remember, the real work is just starting.


Donald Cranford

November 9, 2009

The Power of the Franchisee

When you are a franchisee, you are not at the bottom of the corporate food chain. Far from it. You are the eyes and ears of your business, responsible for instituting the innovations that will drive the franchise forward.

This is not just corporate cheerleading. These are established lessons. Consider the story of Subway franchisee Stuart Frankel, which was recently featured in Business Week magazine. You wouldn’t expect a man who owns two South Florida franchises to institute one of the biggest eating crazes in America, but Stuart had a big idea.

He’s the guy, who realizing that business slowed substantially on the weekends, cut a dollar off the foot-long sub at his restaurants. He tells Business Week it’s because he likes round numbers. Whatever the reason, you can now buy a $5 foot-long sub in every town and city in America these days. It has generated $3.8billion for the company. For this genius innovation, Subway has to thank not its armies of market researchers nor its well-paid corporate executives, but a franchisee at a grassroots level who sensed a new niche for his business and had the courage and inventiveness to satisfy it.

“The whole thing took on a life of its own,” Jeff Moody, CEO of Subway’s franchise-owned advertising arm, the Subway Franchisee Advertising Fund Trust, told Business Week.

Business Week’s story is quite insightful as to how franchisees can bring about huge profits for a franchisor – sometimes in the face of skepticism from the franchise itself. It’s essential reading for any franchisee looking to make a greater difference in their franchise organization.


Donald Cranford

November 5, 2009

The IFA Turns 50

We’d like to take a moment to congratulate the IFA which turns 50 years old this year.

Those people who started the International Franchise Association a half a century ago would hardly recognize today’s business landscape, but still their organization continues to provide advocacy and guidance to franchised businesses around the country.

What began when Dunkin’ Donuts founder Bill Rosenberg brandished a 100 dollar bill from his wallet at a franchisor convention in Chicago back in 1959 is now a hugely mobile and influential organization, as the recent successful of lobbying of President Obama on small business reform shows.

The latest issue of Franchise Times magazine features a detailed story on the history of the IFA. For anyone with an interest in franchising, this is a must-read. Writer Nancy Weingartner takes a decade-by-decade look at the IFA’s evolution, discussing how it planted roots in Washington and began its education programs, and many other things.

Part of the IFA’s initial success was that it let franchisors of all stripes convene and discuss the in’s and out’s of operating a franchise business.

“Companies got together to share ideas,” said Jerry Darnell of Benetrends. “There is no place else to get this information.”

Franchisors weren’t afraid to share best practices because they weren’t sharing trade secrets with their competitors. Members were in a number of different industries and the information they were sharing had to do with business-format franchising, not with burgers or brake jobs.

And as for today? Well, the IFA remains more vital than ever. We particularly enjoyed how the story concluded.

IFA’s challenge is to make business-format franchising a priority in their members’ businesses. They’ve accomplished this in part through economic studies, education and lobbying for small business concerns.

And by selecting volunteers who are committed to the cause. The past chairs stay involved. “They don’t do their time and walk away,” IFA’s CEO Matt Shay said.

“Where IFA goes is where franchising goes,” stated Zeidman.

Here’s to 50 more years of success!


Donald Cranford

November 4, 2009

Successful international franchisors explain how to become a Top 100 Global Franchise

It is easier than ever to develop your franchise into a top global business, thanks to Franchise Direct. The Atlanta-based, world-leading franchise portal recently compiled its rankings of the Top 100 Global Franchises. After a number of insightful follow-up interviews with ranked franchisors, Franchise Direct can now shed some light on what takes to grow a business into a top global franchise.

As recent reporting in the Wall Street Journal shows, international development is now a profitable course for many franchises seeking new markets, as economies around the world have been somewhat slower to introduce the franchising model than the US. With its inaugural rankings of the Top 100 Global Franchises, Franchise Direct not only listed the best-performing global franchises, but it provided a blueprint to other franchises eyeing similar growth.

Interviews with franchisors with businesses on the Top 100 list showed that there is no one path to successful international expansion. Selling a master license is a common strategy, but by no means the only route, as Coffee News USA discovered.

“In those countries that are doing well, we will leave them alone. If we take back countries we will run them from here for awhile and then sell them once we have someone who can do Coffee News well there,” said Bill Buckley of Coffee News USA.

Other companies like PakMail have tailored a business model that can be easily reshaped into different foreign economies.

“We are open to further international expansion and prefer to establish master licensees outside of the U.S. The Pak Mail operating concept is pretty easy to adapt to foreign markets as evidenced by the success of our franchises in Mexico,” says PakMail’s Sandy Lasky.

There will be many cultural roadblocks for the franchisor to overcome when opening in a foreign market. “Knowing the culture, language and business processes, as well as ensuring successful product distribution,” are some of the problems that PuroClean encountered when it launched its Canadian operation. However, it found a solution that changed the way it did business in the country.

“By having a native Canadian manager running operations in Canada, PuroClean has been able to overcome typical obstacles faced when entering a foreign market,” said PuroClean’s Natalie Zupo.

Launching a franchise on a global level takes time and patience. But the rewards can be limitless, as the success of Franchise Direct’s Top 100 Franchises has shown.


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