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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.


November 20, 2008

Veterans turn to 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.


November 6, 2008

Change for small business owners?

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.


October 29, 2008

Vending franchises offer a terrific investment for entrepreneurs

The economic downturn is beginning to shift from Wall Street to Main Street. While financial experts remain uncertain about how long this economic turmoil will continue, the picture in the short-term is stark: banks have seriously slowed down lending lately and the cash flow that underpins the creation and growth of small businesses has stalled.

Yet despite this uncertainty, every entrepreneur will be familiar with Warren Buffet’s famous maxim on investing: “Be fearful when others are greedy, and be greedy when others are fearful.” Enterprising franchisees will be surveying the suffering business world and envisioning future success when the upturn comes around. The obvious question then is which kind of franchise makes for the perfect opportunity at this financial  moment.

Many businesses claim to be recession-resistant, but shrewd franchisees must see the bigger picture when considering their big investment. Franchisees should only really be considering buying into the most proven brands and products—the day of investing heavily in gimmicky items is over, it seems. There must also be inherent value in the product you are buying into. It must not be a niche item, but instead something that will work for you. For these reasons and for many other, the time seems right to focus on Vending Franchises.

Vending opportunities come in an array of shapes and sizes, stocking a number of interesting items. With Franchise Direct alone, there are vending opportunities for the sale of DVDs, coffee, yogurt and ice. The tremendous diversity within vending franchises is only one of their selling points. Just think of the low overhead costs. Rather than have to spend long nights sweating about staff or rents costs, you can sleep easy knowing that a vending machine will simply pay for itself.

Market forecasts show that vending businesses blossomed by over 43 per cent earlier this decade, according to industry publication Vending Times. And the beauty of a vending business is that while people’s tastes and interests change constantly, the medium, i.e. the vending machine, remains constant. The financial world may be in total upheaval, and  people may be holding back on that extra restaurant meal on a weekend, or that nagging car problem, but the immediacy of a vending product, be it an a can of Coke or a cup of coffee, makes them invaluable products.

Still, there are essential things to consider when purchasing a vending business. Having the time to stock the product is a must before signing up to owning your own machine. Likewise, the location you choose is essentially linked to the profitability of your venture. That said, if you can find a vending concept that will be a sure-fire success, the time has never been better to own your own vending franchise.


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