Some interesting statistics on franchisers salaries have emerged in the last week. Over the past few months, Virginia-based company FranData Inc has been soliciting franchisers for their payroll figures, in order to provide a broad look at pay across the franchising industry. The financial crunch has made franchisers much more cost-conscious, and by taking a bird’s eye view at the industry, and it’s safe to say they’ll find some interesting information here.
The Wall Street Journal described the FranData survey as “what’s believed to be a first-ever glimpse at how rewarding work at franchising companies can be”. The study reveals that the best paying managerial jobs are in the full-service restaurant sector, while the best-paid managers were in charge of legal departments or handling a franchise outlets site selection.
Follow the links to find specific info on annual base pay for franchise managerial and professional staff, comparative base pay by sector, and pay by franchise industry and size.
Welcome to 2009, a year that is sure to be interesting, challenging, and hopefully lucrative for franchisees and franchisors alike.
We just couldn’t let 2008 pass with pointing out an excellent article from the December issue of Business Week magazine that spells out the virtues of franchising.
The article offers prescient advice about some of the important practicalities involved in franchising, including utilising top-notch consultants and employing sound legal advice.
Also featured are three important questions prospective franchisors should ask themselves before commiting themselves to franchising:
1. Firstly, is your flagship business successful? Your flagship’s success will provide the blueprint to a thriving franchise operation.
2. Is your business solely reliant upon your presence? If work is stopping you from taking a vacation, handing over the reins of your franchised business to a manager may prove extremely difficult.
3. Is your business idea simple enough to be franchised?
“Any business that requires a specialized skill or creative talent—say, a restaurant with a complicated menu or a boutique clothing store—isn’t ideal. Relatively simple concepts tend to do the best because they appeal to a diverse pool of would-be franchisees and are quick to launch.”
If you’ve answered ‘Yes’ to these three questions, odds are, you have a business concept that’s perfectly suited to franchising.
Stick with Franchise Direct this year for all the latest news from the world of franchising.
Even though Veteran’s Day was commemorated last week, it’s still always a good 
time to honour the service that veterans have made to this country. And while, as soldiers, they contributed to the country’s safety, thanks to the Veterans Transition Franchise Initiative (VetFran), honourably discharged veterans are finding they can contribute to the nation’s wealth as franchisees. 
With VetFran, over 350 companies have signed up to assist qualified veterans purchase franchises by offering them financial incentives. VetFran was started 17 years ago by the late Don Dwyer during the first Persian Gulf War. The idea behind VetFran was to allow veterans easy access into contributing to the economy after their service abroad. Over 100 companies originally signed up and the operation, which was eventually taken over by Don’s daughter, Dina Dwyer-Owens, was grown from strength to strength.
Vet Fran was created with assistance from the U.S. Department of Veterans Affairs, the Veterans Corporation, and the U.S. Small Business Administration, and includes outreach initiatives to our country’s military and veteran organizations. VetFran is one of the most innovative initiatives in franchising and here’s a somewhat belated thanks to America’s veterans. If you’re an honorably-disarmed veteran looking to set out on a new course in life, VetFran may have an opportunity for you.
Well, wasn’t that exciting? But as the post-mortem’s are being written on 2008’s seemingly-endless presidential election, it’s a prescient time to take a look at the shape of the small business world as we head into this new historical moment.
As we all know, these are trying times for small businesses. The credit crunch is biting and insurance costs are skyrocketing.
“The state of the union for small business is bad,” says Moody’s Economy.com chief economist, Mark Zandi recently told CNN recently.
Here’s more bad news for entrepreneurs: a recent Fortune Small Business/Zogby International poll says 42% of U.S. small-business owners have had their businesses had go down in the last four years.
That said, there are still reasons for small business owners to be positive. Just look at the boom in the education and health-service sectors last year. And with the low cost of the dollar, small businesses have enjoyed a bumper year for exports. Statistics from the Small Business Administration shows exports up 63 percent over the last five years for small firms.
Financial experts are now advocating a sensible approach for entrepreneurs and small business owners. Here are three elements which might be able to bring further relief:
* Health care costs: The Small Business Health Options Program (SHOP) was introduced by Congress in April 2008. The Small Business Association is excited by the cost-cutting opportunities that the bill presents.
* Credit cuts: there have been calls to the SBA to raise its current 7(a) loan guarantees from 75 – 85 percent to 100 percent. This move would go a long way towards restoring confidence of small business owners and getting them back in business
* Help exporters: some franchisors might not know about the Government’s Gold Key service. In this service, the Department of Commerce charges $700 to match business owners and distributors. There were 1,200 Gold Key requests and this is another tool that might help small business owners through this trying time.
There no point in trying to gloss over the stark financial reality of the moment: everyone is feeling the economic pinch.
Consumer confidence is low and banks have been forced to tighten their belts. For automotive franchises, the economic crisis couldn’t have come at a worse time. The skyrocketing price of oil in the last year has forced American drivers to deal with the reality that most drivers around the world have long accepted. With gas looking like it might reach $5 a gallon, the days of cheap driving seem like it might be over.
The statistics make for tough reading for those in the automotive industry. Americans bought 13.6 million new cars in May, which was down 18 percent from the same period in 2007. This was the biggest plunge since October, 2002, which itself proceeded a year of huge car sales. Data also shows that drivers are also holding onto their cars longer.
All and all, it doesn’t seem like the most appetizing time to consider purchasing an automotive franchise. But if one looks deeper into the numbers, they can find reasons to be optimistic.
For one, as the automotive industry endures turbulence, it will be the company with the least amount of exposure that will survive. Many companies, for example, have over-invested in niche accessories that are now surplus to the requirements of today’s frugal drivers. At the same time, as people hold onto their cars longer, they will certainly require further repair work. And as the industry becomes more cutthroat, it will probably be independent businesses that fall by the wayside. In short, the tried-and-true business models of franchises might be the ideal businesses to see you through this rocky economic period.
Obviously, it takes a courageous investor to wade into the uncertain economic waters. But an afterlife automotive franchise with Franchise Direct still offers an interesting opportunity.
