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How does a local hamburger restaurant become the most popular restaurant on earth? Franchising, of course. But there is one subtle, yet critically important step in the process of franchising that can decide whether a franchise explodes into the popular consciousness or is simply left behind: the drafting of your franchise agreement and FDD’s.

To some, these papers might seem like a legal burden. But in reality, the more engaging these documents are, the more likely it is that your franchise will prosper. That’s certainly the feeling of franchise lawyer and blogger Charles N. Internicola, who has written extensively on the subject of franchise agreements.

In a recent post on his New York Franchise Law blog, Charles urges business owners considering expansion to view the FDD and franchise agreement as “a collaborative process focused on the development of a critical “asset” that uniquely reflects, identifies and protects the components of your business…franchise and franchise system.”

When starting a franchise keep in mind that all agreements are not the same and and that your input will be critical to insuring that your agreements and disclosure documensts reflect the unique nature of your business. This is no easy task and is not one that is not simply delegated - an in-depth working relationship with your franchise lawyer is required.

This is valuable advice for anyone expanding into franchising. Stick with Charles’ blog for more insight on the particulars of franchise law.

Franchise Direct’s Top 100 Global Franchises has barely been published two weeks and we’re already seeing franchises competing to improve their standing for next year’s rankings.

News comes to us from the Financial Times that Pizza Hut UK are considering serious expansion over the coming months. The UK’s eminent business paper has reported that Pizza Hut UK is considering opening up 30 - 50 new units by the beginning of 2010.

“Delivery has been a very successful part of our business over the past 12 months or so,” said Jens Hofma, head of Pizza Hut UK, told the FT.

“Clearly, the economic situation has caused customers to dine in more often and resort to pizza delivery. So this is definitely a sector which is in strong growth.

This is interesting on a few levels. For one, it backs up all of our statements about the state of the pizza franchise industry, which we published in our inaugural franchise study.

At the same time, it backs up the foundation of our Top 100 Global Franchise study, which claims that the franchises that are expanding internationally are best positioned to thrive in this struggling.

It will be interesting to see where Pizza Hut finish on next year’s list.

I don’t know about you, but when I think of July 4th, I think of lounging around the Jersey Shore, wearing a pair of shorts and flip flops. For a few decades now, flips flops have been the footwear of the American summer. So when we heard of a new franchise concept called Flip Flop Shops, it stood out as the kind of franchise perfectly suited to thrive in this economy.

And we’re not the only believers in this franchise. As Jeff D’Arcy from the Allbusiness.com recently wrote, “Flip Flop Shops is the authentic retailer of the hottest brands and latest styles of flip flops and sandals. It’s more than just a shop they like to say… it’s a lifestyle.” Jeff was so interested in Flip Flops Shops, he invited Brian Curin, president and founder of Flip Flops Shops onto his Franchise Show, one of the top of internet radio shows. Jeff and co-host Christine Mudd talked to Brian about what makes this lifestyle concept and their ‘transparent’ franchise organization. Listen to the interview here. “It’s very rare that you find a business that works, but the stars have aligned for it,” Brian says. Brian also discusses Flip Flop Shops first international store (not to mention its units on the Jersey Shore). If you’re interested in this franchise, we’d recommend you take the time to listen to the interview – audio seems be more direct than the written word at times. Undoubtedly, Flip Flop Shops will be providing foot cover for a lot of holiday-goers this weekend. If you’re ready to open your own Flip Flop Shops franchise, follow this link.

Franchise Direct is a great resource for advice on starting a franchise.

It’s a difficult decision and we will guide you every step of the way until you get your business off the ground. For people with questions about owning a franchise, every question you’ve ever needed answering is here. We also like to pass on pertinent advice when we come across it, which is why we thought this story in the Idaho Statesmen was of particular importance. Pete Gombart, CEO of Ballihoo, a marketing automation solutions business to franchise-based companies provided some of his experiences on working with the franchising industry. He had this bit of insight for new franchisees:

[T]he most important observation I’ve made in working with franchisees is that a franchise’s success is most highly correlated to the people who run it, and not necessarily to the national brand or system.

Gombart’s advice is to focus on the local market instead of getting too caught up in trying to implement a national system. That’s sound advice, and to that end, franchisees might be interested in some research on advertising in the soft economy. A new study by Ad-ology says that 48% of Americans think that a  business’s failure to advertise is an indicator that the business struggling. We all know that success is a contagious, and perhaps this study shows that keeping a presence in public advertising spaces does a lot to spread positivity. It’s an important thing for small franchisees to consider as budgets tighten. If you have any questions about franchising, don’t be afraid to ask in the Comments section below. [Hat tip to the Franchise King]

National Small Business Week is upon us. There are a number of events happening around the country to accentuate the notion that small businesses and franchises are the life blood of the US economy. We’re of the opinion that every week is small business week, but we’re happy to unite with the franchising community, as well as entrepreneurs and small businesspeople and trumpet the important economic work wehttp://www.franchisedirect.com/blog/wp-admin/edit.php all do.

Franchisees or small business owners around the Beltway might be interested to visit the National Small Business Week event winding up at the Mandarin Oriental Hotel and Conference. After all, SBA head Karen Mills has made headlines for a bold new small business initiative announced in her address yesterday.

Ms Mills introduced a new temporary program for small businesses, America’s Recovery Capital (ARC). Through ARC, the SBA will provide short-term relief to small businesses in urgent financial trouble.
These are some of the details of the plan:

• These short-term loans of up to $35,000 can be used to cover payments on non-SBA debt.
• They have no SBA fees or interest costs for the borrower and are 100 percent guaranteed by the SBA.
• The loan is for six months, followed by 12 months of no repayment and then 5 years to pay it back.
• ARC loans are for viable businesses, meaning that the business must have an established history of good performance – but they are in a situation where they just need a little extra help to bridge the “troubled waters.”

This is a very promising initiative and comes right on the back of an interesting new study saying that small business confidence is at its highest ranking all year.

Finally, have a look at this great video, created by entrepreneur phone service Grasshopper, and feel the positivity of entrepreneurship during this National Small Business Week.