Franchise Industry News

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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Franchising in Business – April 2021

Identifying the strength and stability of one franchise business from another can be tricky. Franchise expert Derek Cafferata shares 3 points to consider when comparing franchises. You want to be your own boss, have your own business and stretch your entrepreneurial wings. You’ve looked into various ways of starting your own business and have decided that franchising is the best option. You’ve even decided on the type of industry you want to buy into and you have the initial financing sorted. Now you just need to choose which franchise to buy into. So, how does one choose which franchise is best? Gloria Jean’s or Biggby’s, Papa John’s or Taco Bell, Century 21 or RE/MAX? According to franchise expert Derek Cafferata, there are three main points to consider when looking at which franchise to buy. Brand Strength One of the greatest advantages of the franchise business model is that each franchise...

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International Women’s Day - The Importance of Women in Franchising

With the recent celebration of International Women’s Day, we take a look at female entrepreneurs and the importance they play in franchising. International Women’s Day, which was celebrated recently on March 8, is a day where the social, economic, political and cultural achievements of women are acknowledged around the globe. An important aspect of the women’s rights movement, International Women’s Day (IWD) brings to attention various issues women face, including violence against women, reproductive rights and gender equality. This year saw IWD highlighting various issues, including celebrating tech women and innovation and building inclusive workplaces for women to thrive. Franchising the Appealing Choice to Many Women When it comes to women in business, franchising continues to prove that it is an appealing and very tangible option for many female entrepreneurs. Franchising allows a business owner to be in business for themselves, but not by themselves. Much research has gone into...

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Franchising in Business - March 2021

We’re one year into COVID-19. While the business has struggled, there is a positive outlook for 2021 & beyond from many business owners, experts & economists & international franchising is coming into focus. Franchising on a Global Scale When a company has successfully managed to franchise on a local, regional and national level, the next step logical step is to consider franchising on an international scale. Taking a business globally is a strategic way to expand brand name, reach new markets and reduce dependence on the American market. Countries like China, Russia and India offer huge market potential, with millions of people eager for Western products and brands. These countries have, for many years, been closed off to outside brands. But that is all changing. When done with thorough research and planning, taking a company to international markets offers greater financial reward than it does risk. “Seek the right advice...

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