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Donald Cranford

August 18, 2009

Branding your franchise right

Whether we realize it or not, we’ve spent our life with franchises. I remember taking long drives down from New Jersey to South Carolina and Florida as a kid and one of the things I remember most is the different franchises—restaurants, motels, etc — competing for attention on roadways and rest-stops. Some of them succeeded, some of them failed, but all of them fought passionately for the consumer’s attention.

Now, there are hundreds of factors that dictate a franchise’s success. Master your franchisee training but fail to maximize the right territory and you’re as likely to fail. That said, the branding of a franchise continues to be one of the most essential ingredients in a franchise’s profitability. I can still remember walking into an Arby’s in South Carolina once. There was just something authentic about it. Clearly, someone in their corporate offices had gotten all the small details right and the result was a memorable franchise experience.

Branding is often the difference between whether a franchise rises into the public consciousness or drifts away unsuccessfully. Janet Muhleman, the president of re:group, has pooled together her thoughts on branding in the latest edition of Franchising World. Here are her seven tips to improve your franchises branding:

  1. Listen to your customers, but lead with your heart.
  2. Tell your brand story, what you believe in, why you do what you do.
  3. Create a brand personality that people relate to and want to engage with.
  4. Make believers out of your franchisees and their front-line staff so they can live the brand.
  5. Engage your customers consistently and openly at every possible touch point.
  6. Measure your performance and be prepared to embrace change and innovate to stay current and relevant.
  7. Return to No. 1.

Do you have anything else to add?


Donald Cranford

August 13, 2009

Introducing Franchise Direct’s Top 100 Global Franchises

International franchising has been on a lot of people’s minds lately. Perhaps its just a sign of the growing awareness of the potentials of the global economy.

Only this Wednesday, the Wall Street Journal wrote an in-depth story on American franchises are looking abroad. Well, their timing couldn’t have been better, as Franchise Direct is proud to announce the findings of its inaugural Top 100 Global Franchises study.

You can be sure we’ll be discussing the findings and their ramification a lot in the near future here on this blog, but for the mean time, we’d like you to just digest the findings. Here’s everything you need to know:

Franchise Direct, one of the world’s top franchise portals, has released its first-annual list of the Top 100 Global Franchises. Franchise Direct arrived at these rankings after examining thousands of franchises worldwide. Franchising plays a major role in the global economy, and this list highlights the franchise businesses that have best-invested in international development. Combined, they make up some of the world’s most beloved franchised brands.

Franchise Direct is perfectly positioned to examine the global franchise market, as it is a prominent player in international franchising and operates popular national portals in seven major economies in North America and Europe. The list was compiled according to an objective methodology that factored in a range of commercial matters alongside matters of corporate citizenship and best practice. It also weighed in its support and financing for franchisees, as well as its policy regarding environmental and social matters to arrive at its list of the Top 100 Global Franchises.

The Top 100 Global Global Franchises provide an insightful glimpse inside the state of the franchising industry in the current economic climate. The Top 100 is largely dominated by the top performers in the quick-service restaurant industry. But the list also shows the diversity of the franchising system, with cleaning, internet and senior care franchises making the Top 100.

Franchising is seen by many as an American concept, but these rankings are also unique because they indicate the rising success of franchises outside of America. Fifteen franchises that are not based in America have cracked the Top 100, with franchises from Japan, Australia and Britain represented.

This list provides a blueprint for franchises considering international expansion. While each franchise on the Top 100 has developed a clear brand identity, they all share a number of similar traits. Each has built its success on a clear business model that’s easy to replicate, a strong support apparatus, an ability to innovate and a sensitivity towards environmental issues.

Franchises are certain to play a greater role in the globalizing economy. Despite the global credit crunch, the world’s top franchises remain cautiously optimistic. This list shows that franchising continues to remain a vibrant economic force in America and beyond.


Donald Cranford

July 29, 2009

Weighing up multi-unit ownership

Picture this dreamy scenario: you’re a prospective franchisee with plenty of capital. You’ve got the backing of banks and a few investors to boot. You’ve got a business concept that is 99% certain to succeed. And best of all, you’ve discovered a large area with a great need for your service. Your inner franchising voice is telling you one thing: open a multi-unit franchise.

Don Daszkowski, who writes an excellent blog on the subject of franchising at About.com, has been wrestling with the pro’s and con’s of multi-unit ownership lately. Given the well-documented difficulties on the credit market at the present moment, not every prospective franchisee is thinking big, but nonetheless, it’s important to know the risks and benefits of multi-unit ownership if you are about to invest.

Daszkowski’s general advice is to urge franchisees against multi-unit ownership, unless they possess experience running larger operations. The first thing every franchisee must do is their homework. He also details the job demands of a multi-unit owner. Because of the scope of the operation, they are forced to run the units from a distance, at a macro level. This is somewhat different from the regular franchisee experience, which tends to be more caught up with the day-to-day, nitty-gritty obligations of business-ownership.

Start small is some other advice. See how you fare owning one unit and if you are really successful, then perhaps a second or third franchise will suit you.

Daszkowski shared his feelings on the industry with Entrepreneur magazine for their latest issue, as did Liberty Tax Service franchisee, Dan Castellini. The 33-year-old owns 10 Liberty Tax Service franchises. Experience has taught him what works and what doesn’t in multi-unit ownership.

“The No. 1 reason people fail going from one to two or multiple units is they tend to have an emotional connection to that original location. It’s their baby–and that doesn’t work. You’ve got to empower people at the first store and then spend as much time and energy getting that second location off the ground as you did with the first.”

A clear mind, versatility and an ability to see the bigger picture are all vital attributes when you’re making the leap into multi-unit ownership. It seems obvious enough, but try one franchise first and see how you fare. If you’ve found the business for you, the franchising system allows you to plant that system wherever you’d like.


Donald Cranford

July 15, 2009

Prepping for the rebound

If you’re about to take a long journey for your vacation or are just planning a week on the beach, may we suggest some informative reading material? There’s loads of fascinating content in the new issue of Inc magazine, with a number of How To… guides, including tips on starting a restaurant, a T-shirt company and even a franchise.

Of particular interest to us though was a well-researched article about preparing for the upturn. Journalist Nadine Heintz charts the story of Boston laundry company Garment Valet. With 1,900 customers and almost a million dollars per annum in sales, the company was planning to roll out a national franchise network. But then the economy tanked, the credit markets went fallow and their bank looked like it might go under. Founder Dominic Coryell faced a conundrum: speed up or slow down?

“Other people were going to be slowing down and trying to just hold on,” Coryell told Inc. “I am a big advocate of living on the edge.”

Rather than simply lying low and trying to weather the recession, Coryell has invested $50k in  “proprietary Web software” that will allow customers to “place and track orders online” once the company begins to franchise. So while their dream to open a national cleaning and laundry franchise has been delayed, Garment Valet will only be better prepared for franchising success because of the downturn.

That is a lesson that many businesses out there should take on board.

Inc also passes on six tips for preparing for the upturn and we think they’re worth passing on:

Invest in technology: Technological improvements — new billing software, for example, or an online ordering system — will allow you to add new customers with little additional cost when business picks up.
Snap up talent on the cheap:  Because of record layoffs, the job market is flooded with qualified applicants. Take this opportunity to hire talented employees at a discount.
Ramp up training: Identify employees’ strengths and weaknesses and invest in targeted training and development programs to prepare them for the upswing.

Form strategic partnerships: Make the most of the business slowdown by striking up partnerships that will pay off down the road.
Get to know prospective customers
: Build relationships with potential customers and learn more about their needs, then tailor your offerings accordingly to position your company for the future.

Cut costs strategically: Instead of making across-the-board cuts, analyze costs carefully and reduce spending in ways that are unlikely to impair future growth. Be sure to put controls in place so spending stays in check after the rebound.


Donald Cranford

May 19, 2009

Bold measures by SBA chief cap National Small Business Week

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.


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