Franchise Industry News

The Best Franchise Businesses of 2021

Despite a tumultuous year, franchising continues to show stability and growth. We share a few of the best franchise businesses of 2021, and some insights into what 2022 holds for franchising. A franchise is a business model where a business owner, or franchisee, pays to use a company’s brand and products to run their own business. The franchisor is head of the overall company’s branding, systems and development, and the franchisee runs their particular franchise unit within set boundaries and guidelines set out by the franchisor in the Franchise Disclosure Document (FDD). Owning a franchise business has many advantages. Being a franchisor is like being in business for yourself, without being in business by yourself. While there are literally thousands of franchises within the United States, we have chosen to share the top 10 rankings for 2021 as set out by Entrepreneur Magazine. The Top Franchise Rankings Each year franchises...

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Financing Your Own Franchise Business

Buying a franchise can be a realistic dream for many and it is important to understand the importance of financing your own franchise. To give yourself the best opportunity of success in business, it is important to have a clear understanding of your financial position before launching in to purchase your new franchise. With enough savings and a handle on your net worth, financing that dream franchise may be within your reach. Associated Costs of Buying a Franchise Start-up costs are associated with any franchise you might buy. These include franchise fees, fit-out of a premises and/or equipment, training costs, insurances and legal and accounting costs. Buying a franchise can range significantly, anywhere from under $50,000 up to $2 million plus. On average, the initial franchise fee is usually somewhere between $10,000 and $50,000. However, if it is a requirement to purchase real estate as opposed to leasing real estate,...

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ALLSTATEFF Receive Top M&A Award 2021

Franchise experts All State Franchise Finders is excited to have received top M&A Award Best Franchise Investment and Re-Sales Consultancy in the US for 2021. Best Franchise Investment & Re-Sales Consultancy in the US All State Franchise Finders are excited to have been awarded Best Franchise Investment and Re-Sales Consultancy in the US for 2021. Having been nominated along with many other high-profile companies, All State Franchise Finders was chosen by an independent panel of five international business academic and training leaders to receive the accolade. Throughout the nomination process, All State Franchise Finders was, along with other nominees, assessed based on their high achievements over the past year of providing exceptional quality of service and skills. All State Franchise Finders showed time and again a strong commitment to working tirelessly throughout every stage of the merger process, navigating parties through to a successful transaction completion for all involved. The...

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Key Aspects of the Franchise Disclosure Document

The most important document of any franchise, the FDD is set out to protect both parties right from the start and long into the future. So, what do you need to know when it comes to the FDD? What is a Franchise Disclosure Document? The Franchise Disclosure Document (FDD) is an in-depth document that discloses all the important aspects of a business. It is a legal document that all potential franchisees must read and sign. Because it is part of the pre-sale disclosure process that all franchisors are required to present to every potential franchisee, franchisees will usually sign a non-disclosure agreement prior to being given the FDD. This is because the FDD discloses very pertinent information that allows potential franchisees to weigh up the risks and benefits of buying into the franchise. Before it was reviewed by the Federal Trade Commission in 2007, the FDD was referred to as...

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Top Expert Tips for Young Franchisors

An increasing number of young people are moving into the world of franchising in a strong way. Franchise expert Derek Cafferata shares some top expert tips for these young twenty-something business-savvy entrepreneurs. Franchising isn’t just for the seasoned entrepreneur. More and more young franchisors are moving into the industry and we’re seeing some exciting things happening with energetic, focussed, business-savvy twenty-somethings leading the way in the franchising world. Learn the Ins-and-Outs of Franchising In the United States, franchising is a $787 billion industry employing over 8.4 million people. As a franchisor, you are part of a giant business machine, a network of smaller networks. Franchise expert Derek Cafferata, CEO and President of All State Franchise Finders is always keen to advise any young entrepreneur to learn about the franchise business model. “Franchising is an art,” says Derek. “I encourage all young entrepreneurs to take every opportunity to learn about franchising...

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Leadership – The Important Element in Franchising

If there’s one important element in franchising, it’s leadership. Strong leadership builds strong franchisees, which builds a strong brand. Franchise expert Derek Cafferata shares his tips on leadership. Open Communication Open communication between franchisor and franchisee is one of the most important requirements of good leadership. Open communication instils into your franchisees confidence in the plan and future of the business. Effective communication creates the necessary ongoing support for franchisees to develop and grow their unit. Effective open communication between franchisor and franchisee happens on various levels. A great franchisor will communicate with franchisees at a corporate networking level, right down to a one-on-one level. “Particularly in these recent times of the Covid-19 pandemic, franchisors are finding more ways to communicate with their franchisees,” says Derek Cafferata, CEO and President of franchise experts All State Franchise Finders. “Online Zoom network meetings, local area meetings, one-on-one video calls and webinars are...

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The Business of Franchising

The franchise business model is a hugely successful way to do business. Here, franchise expert Derek Cafferata gives us an overview of the business of franchising. The Franchise Business Model Franchising is a way for a business owner (a franchisor) to grow his or her business by recruiting others (a franchisee) to open other locations. By replicating the business, with products, services, branding, marketing and systems, a business owner can expand the business without having to do all the work by him- or herself. Others are responsible for owning and operating an individual franchise unit. The benefits of franchising are two-fold. For the franchisor, it is a great way to grow and expand your business. For the franchisee, it is a great way to own your own business without starting from scratch. As franchise expert Derek Cafferata, CEO and President of All State Franchise Finders says, “Franchising is best described...

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Franchising in Business – Online Franchising

In this business climate online franchising is stepping into a vital role and filling a gap in the market, and it is definitely here to stay. What is Online Franchising? An online franchise is one that gathers their customers and sales through the internet. While an online franchise does not require a store-front, it may require a brick-and-mortar location depending on the size and type of the online franchise. Some online franchises, for example those that sell their services, do not need a location and can be run from wherever the owner wishes. Other online franchises may need a location to store product or a space to make or package goods sold. Either way, an online franchise focuses on generating all their sales through online advertising and social media marketing. Covid-19 and Online Shopping It’s not surprising that the popularity of online franchising has increased significantly over the past 18...

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The Olympics and Fitness Franchise Opportunities

Fitness franchises are a popular option for many entrepreneurs. It’s the forward-thinking franchises taking advantage of the popularity and anticipation of the Olympics to generate business. The Future of Fitness for 2021 In the five years leading up to 2020, the fitness franchise industry was a strong industry, with steady and significant growth. Enter 2020 and the difficult year that was due to COVID-19 and the fitness industry experienced some difficulty. However, despite lockdowns and closures, many fitness franchises adapted to necessary changes, finding innovative ways to reach their customers, who became even more interested in their personal health and fitness during those changing times. There are currently a little over 500 different fitness franchises in the United States, with more than 8,500 locations, employing over 57,000 people. The outlook for fitness franchising opportunities for the coming future looks positive according to experts. “Shutdown and isolation have shown how important...

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Franchising in Business – July 2021

How does franchising stand up in the U.S. in today’s climate? Here’s some interesting franchising statistics to think about. Franchising has a long history, with the origins of franchising dating back to the early 1700s when Benjamin Franklin and Thomas Whitmarsh sent their printing press business across the United States and around the world. Move forward to the late 1800s and Henry Ford began mass-producing motor vehicles. However, it was in the 1960s that franchising really took off. Richard and Maurice McDonald opened the first McDonald’s restaurant in 1940 and began opening franchises during the 1950s when Ray Kroc joined the business as a franchise agent. But it was during the 1960s that McDonald’s gained significant momentum as it successfully opened location after location, working its way across the United States. Going Big in Franchising Talking about going big in franchising, McDonald’s is considered the most iconic franchise example around...

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Franchising and the LGBTQ Community

June is Pride Month and it’s exciting to see what is happening amongst the entrepreneurial LGBTQ community and the franchising industry. June Pride Month June is Pride Month in honour of the 1969 Stonewell uprising in Manhattan and it is a way for communities around the world to recognize the impact the LGBTQ community has locally, nationally and internationally. The LGBTQ community have, for a long time now, positively contributed to business in many areas. Entrepreneurs within the LGBTQ community have worked hard to establish a number of organizations to help facilitate diversity and inclusivity in business, especially within the franchising industry. Franchising Pride Council Through the efforts of the International Franchise Association working closely with LGBTQ leaders, the Franchising Pride Council was established in 2019. The aim of the Franchising Pride Council is to support diversity and inclusiveness within all areas of franchising, from franchisors to franchisees to employees....

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Franchising in Business – June 2021

Ever thought of turning your business into a franchise? Franchise expert Derek Cafferata shares 3 inside tips to turning your dream into success. Franchising is when you take a business brand and model, with established systems and strategies, and replicate it across different locations. The franchise business model is attractive to entrepreneurs and business owners for a vast range of reasons, including less risk, a greater level of support and a tried and tested business with an established market presence and working systems. Going from being a business owner to a franchisor is a very big step. It looks like an attractive option that offers huge financial potential, which it does. However, it is a process that should not be rushed and needs to be carefully thought through and researched. Derek Cafferata, CEO and President of franchise experts All State Franchisers, located in Fort Worth, TX, has more than 30...

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The Importance of Consumer Confidence in Franchising

Consumer confidence is an important economic factor for franchise owners to consider. Find out what franchise expert Derek Cafferata says about consumer confidence and what it means for franchising. What is Consumer Confidence? Consumer confidence is the data measured and described as the Consumer Confidence Index (CCI). It is an important economic indicator that economists and business owners consider carefully. In fact, about half of small and medium business owners would consider the CCI as one of the most valuable economic indicators to consider. Consumer confidence identifies the general perception and outlook of consumers in the marketplace, how they feel about current and future economic conditions. If consumer confidence is high, consumers feel confident about the economy and are more willing to spend money. If consumer confidence is low, consumers feel uneasy about the current and future economic climate, leading them to spend less. Importance of Consumer Confidence for Franchising...

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Franchising in Business – May 2021

What does franchising and business look like for business owners a year after COVID-19? We ask franchise expert Derek Cafferata to share his thoughts on the topic. The COVID-19 pandemic took the entire world by surprise. Governments, economies and societies had not predicted and were not prepared for what was about to spread throughout the globe. Our way of life has changed, for who knows how long. How we socialise, how we do business, how we travel, how we educate, how we provide healthcare, all these everyday tasks have changed for us, at least for the foreseeable future. So, what does that mean for everyday business? Franchise expert Derek Cafferata, CEO and President of All State Franchise Finders, shares three key points that the COVID-19 pandemic has highlighted throughout the business world. Commit to Your Mission When normality is stripped away, complacency has no place to hide when it comes...

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Inflation in Franchising – The Perils and Advantages!

Inflation is predicted to rise over the next 5 years at more than 2% per year. For some, this could be concerning. For others, like those in the world of franchising, it could be an opportunity. What is Inflation? Inflation occurs when the price of goods and services increase over a sustained period of time. When this happens, the purchasing power of a country’s currency is reduced. So, in simple terms, inflation is when the value of the dollar falls while the price of everyday items rise. Inflation is described as a percentage, which is the rate at which this purchasing power and price increase occur.   While many people view inflation as a negative, there are some advantages to inflation. In fact, a steady inflation rate over time is actually good for an economy to grow. Traditionally, the United States, and other stable countries around the world, have experienced...

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