Franchise Industry News

The Importance of People in Franchising

Franchising is a great way to get into business for yourself, but not by yourself. Franchise expert Derek Cafferata shares the importance of people in franchising. The Support Network of Franchising Franchising is one of the most successful, and most popular, business models in the world. A franchise offers entrepreneurs the independence of being a business owner with the support and benefit of being part of a larger network. Franchising offers several benefits over starting your own business from scratch. One of the main advantages of franchising is that business experience is not essential to become a franchise owner. As a franchisee, you have a large support network of people around you who offer training, advice and guidance to help run your business successfully. Advertising and marketing, operational systems, accounting and legal processes and management frameworks are just some of the aspects of business that a franchisee has a great...

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Franchising in the US

Franchising continues to go from strength to strength as one of the best options for anyone looking to get into business for themselves or expand. Here’s some interesting facts on franchising. Franchising is one of the most popular business models in the United States, and around the globe. Some of the world’s biggest companies like McDonalds, Subway and Century21 are franchises. A franchise is where a company licences another business owner to operate under the name and branding of that parent company. The parent company is the franchisor and the company trading under the franchisor is known as the franchisee. Franchising Statistics According to statistics, it is estimated that there are more than 753,000 franchise businesses across the United States, employing over 7.5 million people. The largest segment of the franchising industry is the fast-food industry. Of the $670 billion output from franchising, the fast-food segment has a total economic...

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Pride Power and Franchising

The LGBTQI+ community is a powerful force and franchise owners will benefit from embracing this strong, diverse group. Showing support for, and of, the LGBTQI+ community is key. The Power of the LGBTI+ Community Referred to as pink money, the pink economy, pink market or rainbow capitalism, the LGBTQI+ community is strong, intelligent, influential and keen to spend their hard-earned cash. It is reported that the purchasing power of the LGBTQI+ community globally is approximately $3.7 trillion. For an emerging community, it is great to see. As stereotypes gradually diminish and our society becomes more educated, the LGBTQI+ community will only grow from strength to strength. All of which is positive news for business, our society and our economy as a whole. For the gay community, pink money brings with it financial self—identification, offering LGBTQI+ individuals a community to feel apart of and to feel valued and recognized. Along with...

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Franchise Businesses that Out-Perform in a Recession

If you’re an entrepreneur looking to invest in business but hesitant with the speculation of a recession on its way, here’s four franchise business ideas that are likely to out-perform in a recession. Business During a Recession For many businesses, a recession is a difficult period to survive. The first thing people stop buying are non-essential goods and services like fashion retail, luxury items and restaurants. An economic recession then leads to companies having to scale back wherever possible, make cuts to staffing numbers. A reduction in turnover leads to a reduction in profit and when this happens, especially for an extended period of time, it can be very difficult to bounce back from. A recession-proof business is one that provides goods or services that are everyday essential items. These businesses tend to suffer little effect during an economic downturn. Derek Cafferata, CEO and President of franchise experts All State...

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Inflation & Franchising

Inflation has its advantages and disadvantages. For business, it’s franchising that sits strong when the economy experiences an inflationary rise. In its most basic terms, inflation is when the prices of everyday goods and services increases. For consumers, the dollar buys less and the cost of living rises. Inflation is described as a percentage and the two commonly used indexes used are the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). The WPI is the increase in price of bulk goods at a wholesale level. CPI is the increase in prices of products and services at a customer level. When the WPI increases, usually the CPI will follow because, eventually, the customer will be the one who covers this increase in price. According to the U.S. Bureau of Labor Statistics (BLS), the Urban Consumer CPI increased 7.5 percent between January 2021 and January 2022. Advantages and Disadvantages of...

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Rising Interest Rates and the Effects on Franchising

While rising interest rates are usually viewed with negativity, it is not all doom and gloom when it comes to rising interest rates and its effect on franchising. While rising interest rates are usually viewed with negativity, it is not all doom and gloom when the Federal Reserve gradually increase the base rate. And while many businesses might shudder at the thought of incremental rises across the coming 12 to 24 months, what it really needs is for business owners to be aware of what is happening in the economy and understand what this means for franchising and for their industry in particular. The Sign of a Healthier Market Rising interest rates are usually the response to a rising market. As the economy improves, interest rates increase. When the economy is in decline, interest rates reduce. There is much talk of the Federal Reserve increasing interest rates because economists have...

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The Power of Women in Franchising

The number of women moving into franchising is on the steady increase. And it is bringing a level of depth and power to the franchise business world we haven’t seen before. Growth in Numbers Women are finding their feet in franchising. According to statistics, the growth rate of females entering the franchise business world is double that of all other business ownership types. Over the past 10 years, the number of female-owned franchises within the United States grew approximately 24 percent. This trend in female-owned franchises is a trend that is only growing in strength and numbers. Over the past 2 years, almost 41 percent of all new franchises were female-owned. These franchising figures are also reflected in the overall business community, with a report from American Express finding the number of female-owned business across the country increased by 58 percent between 2007 and 2018. While these numbers saw a...

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The Role of AI and Technology in Franchising

AI is here in a big way, for business management, development and customer use. And the franchising world is leading the way when it comes to introducing and utilizing AI in business. What is AI and What Does it Have to do With Franchising? Artificial Intelligence (AI) is already widely used within our society and our everyday lives. Research systems like Google, recommendation systems like Netflix and Amazon, human speech recognition like Siri and Alexa and self-driving systems like Tesla are all examples of AI that we are becoming more and more used to as part of our daily lives. When looking at AI within the business world, AI is a business tool, one that some businesses are catching onto very quickly within the franchise industry. And they are reaping the benefits of being early to accept all the benefits it has to offer. Simply put, AI is about gathering...

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Franchising and Veterans with Disabilities

Strong leadership skills, drive and a teamwork mentality make for ideal franchisees. When it comes to veterans with disabilities moving into small business ownership, the franchise business world is reaping the benefits. Veterans Make for Ideal Franchisees It is widely known that veterans often make for ideal franchisees. Great franchisees understand that they are part of a bigger team, while having the independence to stand up on their own as a business owner. Great franchisees are self-motivated and are able to lead a team successfully. The military teach, foster and encourage these traits, traits that franchisors look for in potential franchisees. While veterans make up approximately seven percent of the U.S. population, they make up around 14 percent of all franchise owners. According to the U.S. Small Business Administration (SBA), roughly one quarter of all veterans are interested in getting into business for themselves. Franchising the Ideal Choice for Veterans...

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The Great Resignation & Franchising

A phenomenon emerging out of the Covid-19 Pandemic, The Great Resignation is leading to great things for the franchising industry. What is it and why is it good for franchising? What is The Great Resignation? The Great Resignation is an economic trend, predominantly in the United States, but also taking effect around the world, where a increased number of employees have resigned from their employment positions. The phrase The Great Resignation was first coined by Professor Anthony Klotz from Mays Business School at Texas A&M University. Professor Klotz predicted the mass resignation within the employment industry in May 2021. Covid-19 and The Great Resignation During March and April 2020, the beginning of the Pandemic, a record number of people lost their jobs. March saw 13 million and April saw 9.3 million employees find themselves without a job. While this was no surprise to economists, due to the chaos that Covid-19...

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Your 2022 New Year’s Resolution – Own a Franchise Business

Owning a franchise is one of the best ways to get into business for yourself. And there’s no better time than now to make your entrepreneurial dream a reality. What is a Franchise? As defined by the International Franchise Association, a franchise is “a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.” Franchising is a very successful business model that, while early franchise models date back hundreds of years, made a name for itself during the 1960s and 1970s. And since then, it has continued to go from strength to strength. Why Buy a Franchise? According to franchise expert Derek Cafferata, President and CEO of All State Franchise Finders, “The biggest advantage to...

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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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