In order to give yourself the best possible chance of success you need to select the right team to assist you and you need to ensure that the individual players you choose play their strengths in the right positions.

So who do you pick for your franchise winning team?

Team Franchise: The Panel…

The first step in choosing your winning franchise team is to recruit support for your franchise operation. This means having the full backing of your family and friends who may in the future become full time members of your franchise team panel! Recruiting family members as employees of your franchise business has lots of benefits and may help you achieve the business success you have always dreamed about. Once you have the full support of your family, the next step is to choose the right franchise…

The next step in the selection of your winning team is to choose a winning franchise and franchisor. Choosing the best possible franchise that meets your individual goals and ambitions will inevitable make you succeed. A franchisor will guide you throughout the entire franchise process and will be your constant companion throughout the start-up, growth and resale of your future business. You will need to build a strong communicative, trusting and supportive relationship with your franchisor from the very beginning. Choosing the right franchise and franchisor is essential to your success.

The next member of your winning franchise team will be your financial advisor. A financial advisor will help you forecast all your expenses for the future investment of your business. A franchise financial advisor will assist you in drawing up a projected business plan with financial budgets in place. It is essential to understand fully the financial fees you will be expected to pay and a financial advisor is the best member of the team to fulfill these duties.

After you have decided on a franchise opportunity and have finalized projected financial obligations to invest in the franchise, the next step is to choose a number of professional advisors such as a legal service provider and perhaps a business consultant. Why? Well having professional advisors working for you will provide your critical team management structure- they will give you advice on the composition and obligations of the franchise business and place you in the strongest position for future success.

Team Franchise- Players

Once you have signed the Franchise Agreement with the franchisor and you are ready to set up your franchise business, you should choose the right members of staff if you are working from a premise or choose family members if you are working from home.

Recruiting the right staff is like recruiting your major players for your football team. Your staff will be essential for the success of your business so selecting people with the right skills and talents will be essential from day one of operation.

Team Franchise- FANS!

No football team or franchise business will be successful without a loyal band of fans or customers in the business sense. Building a trusted brand that customers recognize will ensure your financial growth and profitability of your business. Your customers are key members of your winning team, so you must listen to what they want and you will reap the benefits.

Now that you have selected your winning team, you should mount your charge against the competition and win!

Franchise Reporter

As a franchisee of any franchise industry, the franchisee must always be thinking of new ways to develop and market the business concept- products and/or services- to existing and new customers. This is what helps to grow the business and make it consistently successful.

So what’s the new development in the health club fitness franchise sector?

Existing and new customers of fitness and health club franchises can avail of a new fitness club industry trend- that is the introduction of specialized fitness classes for the entire family. For example, mum and dad can attend their fitness classes and gym routine, while their kids can work out to fitness classes specially designed for children.

Parents and children get the added benefit of being able to work out at the same time and to go home together at the same time, while enhancing their wellbeing and fitness.

Creating a fun and exciting atmosphere within the gym, sports and fitness sessions will keep kids motivated. Classes could include swimming, dancing, kick-boxing, Tae Kwon Do and much more to help keep kids interested and parents happy. Also, children’s admission to the gym and use of equipment should be strictly limited to certain times during the day and evening and at weekends, so as not to alienate other members of the gym who do not have children and like the way their “gym” operates as it is.

This new trend is currently been adapted by fitness club franchisors in certain areas of the US and sets to rise throughout 2008.

Watch this space!

As a franchisee of a franchise business whether it be fitness, retail, accountancy etc, you should always be on the look-out for new improvements to your business concept- products and/or services- and actively encourage new customers to enter/buy into your business.

Franchise Reporter

View the following franchisee question and reply…

Q. “Room for Negotiation?”
Is there any room for negotiation when it comes to the franchise asking price?

Josie Mellanby

A:
Hey Josie thanks for your question and it’s an interesting one too!

There is no reason why you should not feel free to raise the issue, but I believe you will find that franchisors generally tend to decline to bargain with regard to setting up costs, which will usually include the initial franchise fee.

Their argument is that if some franchisees were to pay less than others within the system, word would spread quickly throughout the franchise network and ill feeling would inevitably result.

However, sometimes there can be room for negotiation depending on individual circumstances and so on. For instance, if you were to consider becoming the first “pilot” franchisee of a newly-established network, you might find the franchisor willing to agree to a reduction in price. Alternatively, you may be able to negotiate deferred terms instead of being required to pay in full at the outset.

In regards to franchise re-sales, the opportunity to purchase an established business from an out-going franchisee is continuing to grow within the US. This means the supply of franchise re-sales is outweighing the demand to take over existing businesses, therefore if you were to buy an established business you could have room to haggle with the franchisor in question.

Whichever route you might consider taking in becoming a franchisee, do keep in mind that price should not be viewed in isolation. More important is the comprehensiveness of the franchise package/Agreement, which should provide for everything you need to operate the business efficiently.

Franchise Reporter

This award will not only honor the franchisee for its oustanding contribution to the franchise network and the franchise industry it represents, but it also honors the franchisor and its franchise operation. It is a great way to publicly announce how well a franchise is doing and how real-life individuals are making a genuine success of their franchise investment…

Awards will be presented during the 9th Annual “Franchise Appreciation Day: IFA’s Public Affairs Conference” in September 2008.

For further information, please contact the IFA, or to download a franchisee award application form, please click on the link provided here: Franchise of the Year Award 2008 Forms…

If you are an existing franchisee and have made a significant contribution to your franchise network, be sure to let your franchisor know about this award and how it can benefit both you and your franchisor…

Franchise Reporter

Irvine Robbins started his own ice-cream business in the early 1940s after he had served his time in the American army during World War II. He set up his ice-cream store “Snowboard Ice Cream” in Glendale in 1945. He was one of the first entrepreneurs to set up a store selling ice-cream and ice-cream only! His brother-in-law Burton Baskin who married Robbins sister Shirley, and would later become Robbins partner in business, set up his own ice-cream store “Burton’s Ice Cream” in Pasadena.

Following the advice of Robbins father, both men had decided not to go into business together from the beginning, but to operate as seperate ice-cream stores in the hope of evenetually going into partnership together. This partnership was created in 1948 under the new business name of “Baskin-Robbins”.

History was made…

Baskin-Robbins had 43 stores by the end of 1949; a 100 more stores by 1960 and 500 stores in total when the ice-cream store was sold to United Fruit Co. for an estimated $12 million dollars in 1967. Six months later, Baskin died from a sudden heart attack leaving his legacy behind to be continued by Robbins. Although Baskin-Robbins had sold their business in 1967, Robbins continued to work for the new company for a further 11 years, helping to create and develop 100’s of new flavors of ice-cream…

Most historic flavors:

(a) Baseball Nut- Created for the arrival of the Dodgers to Los Angeles in 1958;

(b) Lunar Cheesecake- Created after man had landed on the Moon in 1969;

(c) Beatle Nut- Created after the arrival of iconic band The Beatles during the 1960s.

Other flavors that didnt quite make it!

(a) Grape Britain;

(b) Ketchup

(c) Lox & Bagels

What remains to this day and forever more is Baskin-Robbins lasting legacy of innovative ice-cream flavors and ice-cream franchise stores and its ability to spread the enjoyment of ice-cream concept worldwide…

Deepest sympathies to the family and friends of the late Irvine Robbins…

Franchise Reporter

Since launching as a franchise program Pizza Fusion has enjoyed enormous success selling 70 franchises nationwide in 10 states while meeting consumer demand for “greener business measures” and organic/healthy food alternatives to traditional pizzas, burgers and other fast food products.

So what measures have Pizza Fusion introduced that makes its pizza franchise more successful than any other?

1. Food…

Pizza Fusion’s signature dishes include oval-shaped gourmet pizzas, house-salads, tasty sandwiches and refreshing drinks made from natural ingredients. It’s menu also caters to consumers with specific dietary needs and this has helped the franchise brand become extremely successful…

2. Pizza Delivery…

Pizza Fusion delivers its pizzas in specially designed environmentally friendly hybrid vehicles. With gas prices rising all the time, the company’s hybrid vehicles is not only saving the planet from carbon omissions but is also saving the company money for gas supplies…

3. Interior…

The interior of every Pizza Fusion franchise echoes greener living! The furniture is made from reclaimed wood, the ceiling is made from recycled aluminum cans, insulation from recycled blue jeans and the restrooms are designed using bamboo!

All aspects of this franchise business reinforce its commitment to eco-friendly business measures and customers love this concept. This winning combination is ensuring Pizza Fusion continues to rise in the fast food pizza industry!

If you would like to know more about Pizza Fusion and its franchise opportunity, click on the profile link provided…

Franchise Reporter

Bob Shaffer a recent retiree of the corporate world (where he worked for 35 years) decided not to retire full-time but instead to invest in a unique travel franchise. He chose SeaMaster Cruises travel franchise to achieve two objectives, “that is, to have some fun and earn a little money”. Not only did Bob achieve his two objectives, he has created a business that is both financially rewarding and satisfying.

Bob’s success is attributed to SeaMaster Cruises manageable business model, the “integrity and quality” of the people behind SeaMaster Cruises, marketing and technological tools, two weeks intensive training, and his regular “coffee chats” with the support team at head office has made his business grow to the success it is today.
When asked if Bob is “happy” with SeaMaster Cruises franchise he had this to say:

“Without question, SeaMaster Cruises…has more than 1700 travel outlets in the U.S. and Canada” (providing potential franchisees a strong franchise support network) and annual revenues of $5 billion dollars” (making this industry a very profitable one to invest in)…which gives me an opportunity to achieve the highest possible level of commission, which would have been impossible if I had to do it on my own”.
 
So there you have it, SeaMaster Cruises travel franchise can provide you with the proven business model, expert training and strong support network with the option to work from home. Inspired? You should be.

Why not sail away with your unique SeaMaster Cruises travel franchise?

Click here to download & view Bob Schaffer’s interview on his successful investment as a SeaMaster Cruises travel franchisee. Find your inspiration here…

Category 1: Initial Start-Up Costs

The following cost considerations are specific to start up stages:

Deposit Fees: For most franchises this fee is used as an indicator to establish the seriousness of your application. Once you proceed, this fee (on average $5,000 depending on the franchise operation) will be incorporated into the initial franchise fee.

Initial Franchise Fee: This is associated with each franchise unit you open. It is a payment for the right to use the franchisor’s brand and techniques, but it also covers the cost of training and site selection. It can vary on average from $5,000-$50,000 depending on the type of franchise investment.

Initial Working Capital: This covers your initial stock and day-to-day expenses until you break-even within the business. The avearge figure for intial working capital is based on the size and type of the franchise business and is usually estimated by the franchisor (from 2-3 months or 2-3 years working capital) and is incorporated into the total investment cost.

Total Investment Costs: In addition to your initial fee and working capital, you will also have to fit out a premises (if you are locating a business in a specific area; or the business is not home-based a premises may be required). This covers fixtures, fittings, equipment, signage and other different items specified in the Franchise Agreement.

Other start-up costs may include rent (premises), legal fees, consultants fees, payroll, utilities, marketing and advetising fees etc. As a franchisee you must incorporate all fees in your “expected budget” plan for the business so that you do not fall short of payments and have to take money from your monthly revenue and finally to ensure you are prepared for all financial eventualities.

Category 2: Ongoing Costs

Fixed Fee: A fixed fee is mostly applied in job franchises. This fee is a regular monthly or annual fee that must be paid irrespective of the turnover in your franchise unit.

Management Service Fee or Royalty Fee: The management service fee or royalty is a variable charge (subject to changes in interest levels) and is a percentage of turnover net vat (between 4%-6%). You do not need to pay both a fixed and a royalty fee. The franchisor will let you know which fees you will be required to pay, stated in the Franchise Agreement.

Advertising Levy: The fee is charged as a percentage of turnover and is generally incoporated within the royalty fee. The money is pooled in a promotional fund to build the brand through marketing and advertising campaigns and is critical for the success of everyone within the system.

Real Estate Costs: If you are buying into a business that requires real estate/premises, you will be required to pay a large amount of money for the amount of space you need for the business. While most franchisors will help with locating the fitting the right premises for your business, the real estate costs fall on you to pay.

Equipment and Supplies: Generally the franchisor will help you with the supply of equipment for your business, at a considerable discount. However, the payment of equipment and supplies is up to you to pay.

Other on-going costs such as insurance, payroll and utilities will also have to be accounted for by you. You must understand clearly all fees you will be expected to pay as a franchisee before you decide to invest in a business and prior to signing on the dotted line!

If you would like to know more information about the franchise industry, please let me know and I’ll write back to you,

Franchise Reporter

In many cases, you can actively reduce your businesses ”carbon footprint” without costing your business much money. Not only will you benefit from introducing green initiatives to your business by saving money on energy and heating bills, but you will also increase your consumer base.

Take a look at the following inexpensive but highly effective green business measures you can introduce:

1. Make sure all lights are switched off when leaving the workplace and turn the thermostat down by 1 degree and you will cut your heating bills by uo to 10%.

2. Computers should be switched off when not in use. Millions of dollars are wasted each year by PC’s left on unnecessarily.

3. Fitting low cost energy light bulbs which can last for 8,000 hours will have a dramatic impact on your savings for your electricity bills.

4. Encourage staff to only print documents and emails when absolutely necessary and re-use paper that’s printed on one side.

5. Set up a company recycling scheme for all recyclable waste and instead of disposable foam cups for coffee and plastic cups for water, use reusable cups and glasses.

6. Encourage staff to use public transport. Or set up company organized car-sharing schemes; grants or loans for bicycles and secure on-site parking can all help minimize the carbon damage created by commuting.

7. Franchise businesses with fleets of vehicles should consider investing in biodiesel about 60% less carbon than normal.

8. Better use of IT in the office can reduce the money spent on business travel expenses and the carbon omission. Why not set up video conferencing in your work place, which reduces the need for colleagues to travel and increases your business profitability.

9. Re-use and recycle electrical equipment and reduce the amount going to landfills. Old computers can be donated to charity for use in developing countries but make sure you securely delete sensitive data before recycling.

10. Other unwanted office furniture ad supplies can be sold- perhaps on eBay, an online resource for giving items away.

By implementing energy saving measures in your workplace and providing incentives for your staff to cooperate with your “green business” initiatives will save you up to:

- 20% on your bills;

- enhance your business reputation as a “builder of eco-friendly measures” and;

- drastically cut your carbon footprint.
Industry analysts argue that not only will you save money on your energy bills by introducing some of the measures outlined afore, but you will also increase your brand recognition with consumers.

According to industry analysts, consumers regularly contemplate about their own carbon footprint and how they can make a difference to tackling climate change. These consumers, as a result are more likely to buy from a company they think is taking action to tackle climate change than a business that is not.

So if you’ve turned green, or you are going to turn green, you should shout about it and you could boost your profits…

View the following eco-friendly franchises that are making these changes for the better:

Catridge World;

Clean Air Lawn Care;

Envirospect;

FiltaFry;

Pizza Fusion…

Franchise Reporter

1. Establish Good Working Relationships… 

Firstly you should establish from the outset a good working relationship with your franchisor. Your franchisor will be able to assist you when you want queries answered. A franchisor will have the experience and past knowledge of working with the franchise system and franchisees, so it is vital you listen to their advice…

2. Monitor Cash Flow

The next important thing to watch out for is your business cash flow. Keep looking back at your business plan and assess your initial financial forecasts and projections made. These forecasts are an excellent indicator of your financial situation and you should keep as close to the financial statements made as possible. Careful planning and monitoring of business cash flow in the early days of the business will ensure your long term success…

3. Recognize Your Strengths & Weaknesses

It is important that your recognize your own strengths and weaknesses and to use them to your advantage. If you lack certain skills that are required to operate the business successfully, for example, accountancy, you should employ someone else to take care of aspects of the business you are not 100% confident with.

Delegating responsibility can be one of the most difficult tasks to undertake in a new start up business, but it may be a vital task to delegate if you are struggling on your own skills and experience…

4. Market Your Franchise Business…

You invested in this franchise business because you are passionate about the business model, its products or services? Right? Well then you are the best person to market your business. There is no more effective way to attract customers to a business than someone’s passionate interest or belief in the product or service it provides. Utilize this passion and interest to the advantage of your franchise and make it work for you…

5. Networking

Establishing effective networks with the franchisor and existing franchisees will be crucial to your long term success. Regular phone calls, meetings, coffee lunches and annual conventions with your franchise network will not only motivate you, but these events will give you the opportunity to discuss any problems or positives you have about the franchise opportunity. Building a strong support network is an excellent way of increasing the success of a business…

These five points are some of the main characteristics that you should focus on when you are setting up and growing your franchise business. But remember the reasons why you decided to invest in a franchise in the first place as this will motivate you when times get tough.

And most importantly, HAVE FUN- you are the creator of your own destiny…

Franchise Reporter