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January 7, 2009

New study on franchiser’s pay

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.


Food franchises innovating as well

Yesterday we were discussing innovations that fitness franchises are implementing to attract business during what it is typically one of their busiest months of the years. Fitness franchises are not alone: just look at some of the changes food franchises are bringing in to attract new customers.

Some food franchises are betting on a breakfast resurgence. Oatmeal, that cheaply-made, unfashionable, extremely-filling breakfast meal has started to pop on the menus on Starbucks and Jumba Juice in cold-weather cities like Chicago. Considering that breakfast has become less and less integral for workers on the go, the return of oatmeal shows that franchises are thinking outside of the box to attract customers. Easily-made and highly nutritious, oatmeal is a perfect meal for the recession, and one wonder what other formerly passé foods franchises might bring into the fold.

Franchises have long been hoping that new technology might provide them with a competitive edge. Few food franchise markets are more competitive than the pizza industry, and signs show that franchises are turning to the internet to attract customers. Domino’s Pizza now lets customers order pizza on TiVo, while you can order Pizza Hut from the couch with your TiVo and Papa John’s now accepts text message orders. Each pizza franchise is obviously trying to adapt to the changing ways we interact now, but will these innovations really bring a flood of new customers, not to mention imitators? Time will tell, but franchisors obviously feel this is a risk worth taking.


January 6, 2009

Fitness franchises staying healthy

Like clockwork, as soon as the calendar starts anew, gyms and fitness centers are met with throngs of new customers, all looking to get fit in the new year.

“Working out more” is one of the most popular New Year’s resolutions, so much so that despite the cold and wintry gloom, January continues to be one of the busiest months of the year for fitness franchises.

Economically-speaking, though, 2009 promises to be a different year than any in recent memory, and fitness franchises are no different. Perhaps, in this recession-age, a gym membership will become a luxury that people can no longer afford. But even though the fitness industry has noted a general slump in recent months, creative franchisors are finding new means to bring new customers in.

For instance, gyms in Tyler, Texas, are offering referral discounts of up to six months for every four new customers brought in. Others are offering January discounts. Other fitness franchises have noted a switch towards the most inexpensive athletic centres, like the YMCA, and are accordingly modifying their cost structure.

So while people may put wallets ahead of their fitness this new year, early signs are showing that physical well-being is as important as ever to Americans. Which is heartening news to fitness franchisors or people considering their next franchise investment.


January 5, 2009

Why franchising? Because it works

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.


December 18, 2008

Franchising is going green as Franchise Direct targets environmentally-friendly businesses

Businesses around the world have been forced to respond to the environmental challenges of our time – and the world of franchising is no different. Green franchises now constitute one of the fastest-growing industries, Franchise Direct has launched a new webpage to promote environmentally-friendly businesses.

Thanks to Franchise Direct, franchising is going green. As businesses continue to embrace environmentally-friendly practices, the franchising industry has witnessed the recent growth in ‘green’ franchises. As such, Franchise Direct, the world’s leading portal for franchise opportunities, is proud to announce the launch its own line of green businesses. Eco-conscious business practice represents the way forward and Franchise Direct is looking to provide the entrepreneurial world with a green injection.

The reasons for a green conversion are bountiful. The world can no longer sit idly by and expect the earth’s resources to replenish themselves. And while necessity drives the engine of environmentally-friendly commerce, profit is still part of the equation. The truth is, the time is coming is when environmentally-friendly practice will be the exception, not the rule, for small business owners. Innovative entrepreneurs are developing their green businesses at the moment and Franchise Direct has decided to provide them with platform for global success.

With Franchise Direct’s green franchises, entrepreneurs will be provided with a vast range of business opportunities linked together by a common commitment towards saving energy and utilising green energy methods. As the green marketplace continues to expand, Franchise Direct will be the central resource for this franchising sector, fostering the gradual evolution of the industry.

Take, for example, a company like Filtafry. In 1996, Filtagroup launched the Filtafry brand, after pioneering a cleaner oil filtration technique. Filtafry gained attention from restaurant owners immediately because it provided a more economical approach to oil filtration. Its environmental impact, however worthy, was something of a secondary concern. But Filtrfry sensed that a market was developing and chose to continue investing in its line of environmentally-sustainable products. Thirteen years later and Filtafry is at the forefront of its industry and living proof that green businesses can also be profitable ones.

The Franchise Filtafry is just one of the exciting environmentally-conscious companies that Franchise Direct now provides access to. There are also green opportunities with pizza, home cleaning and indoor air cleaning businesses with Franchise Direct. And this is only the tip of the franchising iceberg. As the marketplace responds to the present environmental challenges, green franchises like Filtafry will become more and more essential to commercial activities. You can be guaranteed that Franchise Direct will be on hand to provide entrepreneurs with direct access to the most innovative green businesses.

As the success of a company like Filtafry illustrates, there’s no stopping a unique entrepreneurial idea. If you’re an investor look to ride the crest of the green wave to financial success or if you have a sustainable business concept that’s ready to thrive on a national level, let Franchise Direct act as your conduit to profitability and business growth.


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