Franchisor-Stratus Building Solutions Master Jason Potts Represents Small Business Owners During Presidential Visit

Master Franchisor Stratus Building Solutions Jason Potts was asked to represent successful local small business owners after The White House contacted the Greater Raleigh Chamber of Commerce looking for ambitious entrepreneurs to appear with the President during his town hall meeting in Raleigh. According to this article, Dennis Jarrett, CEO of Stratus Building Solutions, said, “Our company’s franchisors are people of all races, colors and creeds, comprising a melting pot of entrepreneurial spirit that makes our company very proud." Stratus Building Solutions is the fastest-growing international brand in the building services and maintenance franchise industry.

Selecting Your Franchisor

It is surprising how many franchisees look for the same thing in a franchise system. Much discontent can brew from inconsistency in dealing with different franchisees. If a franchisor tries to maintain consistent treatment of all franchisees, this can promote a sense of fairness among franchisees. Another good motivator especially in tough economic times is the introduction of new company products. New methods or products sends a message to franchisees that the franchisor is still invested in the business.

Selecting Your Franchisee

We have posted a lot of information about how franchisees can select a good franchise, but for the overall health of a franchise, the franchisor should give consideration with respect to its selection of franchisees. Some franchisors may stop at whether the franchisee has sufficient funds and interest in the franchise, but many franchises depend on the relationship of the franchisor and franchisee and the underlying communication. So, while assets and business experience may be important for a specific franchise, the social abilities of the franchisee may also be important. Underlying most business is great customer service. Franchisees have to deal with customers, franchisor vendors as well as employees of the franchise. A healthy franchise system depends on a healthy franchise and how the franchisee interacts with the various people that make up the business is important.

Tips for Running Your Franchise

Feedback from our last post was so good we are providing another idea for franchisors that may help with the development of their franchise. Conflict resolution is helpful. With solid business experience, a good franchiser leader should be able to identify and manage conflicts before they get out of hand. Though it is important for brand recognition that there be rules that apply evenly to all franchisees, some franchisees may interpret those rules differently. Franchisees also may have different needs. To avoid conflict, it doesn't hurt to consult with a Franchise attorney before things get out of hand. Franchise attorneys are not always on the offensive with court in mind. In fact, many good franchise attorneys know how to nip a potential crisis in the bud with solid negotionation. Some of this can be done behind the scenes to assist the franchisor so that the franchisor remains the "face" contact, but he or she can rely on good counsel to take the appropriate steps for a particular situation.

Tips for Running Your Franchise

There are many sources for running a good franchise. New ideas are always welcome in a touch economic climate. Flexibility is a good skill for a franchisor to have. Technology is one area in which flexibility to adapt to changes can prove beneficial. Some posts ago we referred to an Arizona food franchise that was using technology to print out nutritional information for its customers. Recognizing market changes and customer needs is important for a healthy franchise. Of course, diplomacy in selling those changes to franchisees so that they retain a committment to something that may prove healthy for the overall franchise is important too. It also helps with brand identity.

One Franchisor's Focus in a Tough Market

We are always looking for news about what any business is doing in a financial downturn to stay on top. Realty World N. California and Nevada is one franchisor dedicated to providing a sound business model for its franchisees. This includes a full range of marketing and advertising tools into the corporate intranet including: virtual tours and digital marketing; virtual and paper flyers, brochures, postcards and newsletters; e-mail distribution and tracking; video production and distribution.

According to this article, the franchisor has goals in three key areas:•
- "Ensure that Brokers and Agents have Access to Best Technology: The Realty World extranet is the backbone of the franchise, delivering all the tools required for success. The Imprev platform seamlessly integrates into the company’s intranet.
- A Robust Solution at an Affordable Price: Realty World’s model centers on providing offices with everything needed to run a successful business, for one low franchise fee. Full access to the Imprev solution provides associates with the premium level marketing Realty World requires, at an affordable cost.
- Partner with Proven, Trusted Partners: Realty World’s business model depends on delivering exceptional technology, and it is imperative that the companies they partner with provide uninterrupted service for years to come. Imprev’s reputation for providing high-levels of service availability has been proven over many years, and their commitment to ongoing development is well known."

Slow Economy Spurs Franchisor Deals for Franchisees

Though the current state of the economy is making some would-be franchisees wary of making big investments, franchisors are coming up with creative ways of helping franchisees and wooing buyers. Franchise companies, facing competition for prospective franchisees are offering two-for-one deals, reduced fees, bonuses for buyer referrals, extended financing deadlines to attract franchisees. According to this article, one such example is Interiors by Decorating Den of Easton, Md., which says it has seen a 33% decline compared with last year. "In response, among other incentives, it is offering to finance up to 50% of the franchise fee (or up to $15,000) for qualified individuals with a minimum of $55,000 in liquid capital. People may have the skills but not the capital to launch a franchise, says Kevin Atkinson, Decorating Den's vice president of program development."

Ongoing Training & Support Help Build Successful Franchises

One of the benefits of starting a franchise rather than a start-up business from scratch is that it allows the potential franchisee to start with a recognized brand name and also obtain the type of training that has proven effective over time for the chosen business. Any seasoned and successful business owner will admit to having learned from mistakes early in the business and a franchisee often has the benefit of not having to go through so much trial and error. Franchisors who don't provide good training and support to their franchisees can see their franchises wane over time and also create unnecessary ill will among existing franchisees. Good training and ongoing support benefits the franchise as a whole and individual franchises. It can also provide franchisees with peace of mind to make an investment in an established business even if they have not had much business experience. This is especially true for young entrepreneurs. Good training programs should be ongoing and provide details about the business products and services, information on accounting, services and inventory and tips for handling lease and other negotiations to make sure that local and state laws affecting the industry are followed and the proper licensing secured among other factors.

Going Green Good For Environment and Franchisors

Franchisor FOCUS Brands has found that reducing paper has not only helped the environment, but has lead to substantial savings. According to this article, "companies that reduce or eliminate paper-driven processes not only help the environment but also help their bottom line by improving productivity, increasing compliance, reducing storage costs and eliminating time lost to misfiled information and disorganization." FOCUS Brands Inc. is the franchisor and operator of over 2,100 ice cream stores, bakeries, restaurants, and cafes under the brand names Carvel®, Cinnabon®, Schlotzsky’s®, Moe’s Southwest Grill®, and the franchisor of Seattle’s Best Coffee® on military bases and in certain international markets. "FOCUS Brands is a prime example of a company that is not significantly different from healthcare, finance or any other type of business – in that it handles confidential information. The multi-brand organization manages legal affairs, finance, audits, private franchisee and personnel records, etc. in house and, as a result, has to securely and efficiently manage, store, access and responsibly dispose of confidential information. For companies across all industries, paper retention and disposal drives up operating expenses and slows productivity."

Franchising Your California or Arizona Business

Even in a rough economy franchise lawyers receive calls from small to mid size businesses that are doing well and are at the point where they really need to expand to continue or increase that success. There are even businesses, as strange as it may seem, that fold because the demand for their products or services exceeds their resources to meet that demand and they simply fall apart trying to meet that demand. We will revisit the topic of franchising from time to time on this blog.

Why Franchising is an Option for some Businesses:

• Cost. Franchising is not cheap, but finding the equity or capital to expand a business without franchising can be more costly. Setting up a franchise system requires the input of professionals to meet legal requirements and properly plan the expansion of the business. Franchising allows some businesses to structure the expansion in a way that some of the costs of a regular business expansion are the responsibility of the franchisee. E.g. Lease or service contracts.
• Management. If a business were to expand without franchising, it would be hard to do so without hiring additional staff to manage additional outlets. Good Franchisees essentially serve the same basic functions your ideal manager might serve in an expanded business. Because franchisees have a stake in your business, indeed, they own the unit that you sell them, with the training that you provide and the guidelines under which they operate, franchisees can spare a business the risk of finding managers who are not sufficiently motivated or finding good managers who may leave at any time they choose. It is not unusual to see franchise agreements that are 10 to 15 years.

Extended Stay Hotel Chain is Awarded Exclusive Franchisee Satisfaction Award

The Franchise Business Review is a national franchise market research firm which conducts a survey each year of franchises and franchisee satisfaction to help prospective franchisees evaluate a franchise system. Several key areas of hundreds of franchises are surveyed by thousands of franchisees including training and support; operations; the franchisor/franchisee relationship; and financial opportunity. According to this article, "Value Place is the only hotel chain to earn a spot on the coveted FBR 50™ list, recognized as the most exclusive award in franchising." Eric Stites is the founder and president of Franchise Business Review. According to Stites, "For people considering a franchise investment, satisfaction among current franchisees is one of the most critical factors to consider. Our goal is to help simplify the franchise research and buying process and help entrepreneurs discover the best franchise opportunities in today's marketplace."

Franchisor AlphaGraphics Continues to Grow through Franchising

AlphaGraphics is a print and visual communications franchisor with more than 260 AlphaGraphics franchises located in the United States and worldwide. AlphaGraphics continues to expand through franchising despite industry trends in a slow economy and difficulties in the printing and visual communication world to attract new clients. According to this article, Art Coley, AlphaGraphics' senior director of franchise development explains ""AlphaGraphics provides its franchisees with leading-edge programs and technologies that add significant value to their relationships with their customers." AlphaGraphics CEO, Kevin Cushing adds, "The ultimate test of any franchisor/franchisee relationship is when it comes to the expiration of the franchise agreement and both parties are free to go their separate ways. We are extremely pleased and proud that during the past few years 100 percent of our owners whose franchises were due to expire have accepted the opportunity to extend their agreements and stay in the AlphaGraphics network. Fourteen owners have been offered the opportunity to extend their agreements with us in the past two and a half years, and all fourteen have accepted. That renewal rate is unheard of in our industry and is a real testimony to our network of franchisees and our team at the AlphaGraphics Service Center. They know they are a part of a leading and winning brand."

How Does Starbucks Ruling Affect Franchise Owners?

A San Diego Superior Court Judge Patricia Cowett ordered coffee chain Starbucks to pay more than 100 million dollars in tips and interest owed to staff in a ruling that stated that supervisors are precluded from sharing in tips from the tip pool intended for employees. According to this article, an attorney for Starbucks servers stated: "California law allows employees to pool tips, Lowe said, though supervisors, managers and owners -- anyone with the authority to oversee or direct other workers -- can't be paid out of the pool." The caution for franchise owners? According to this article, Connie Alexakos, vice president of marketing for the Hawaii-based company, the Bad Ass Coffee Co., states that "it's up to franchise owners to comply with employment laws of their states. She said she read the Starbucks ruling but wasn't clear whether it affected the way Bad Ass franchises need to operate."

Restaurant Franchisor Assumes Operation of Struggling Franchisees

Father-son duo Paul and Scott Mobley who own Noble Roman’s Inc. a Restaurant Franchise have assumed the operation of six franchised restaurants in Indianapolis. According to this article, " The locations had been operated by a single franchisee, local businessman Steve Patton." Taking over these franchisee units "is a departure for a 36-year-old company that now focuses almost entirely on franchising; Noble Roman’s owns only two locations, primarily for training purposes." Paul Mobley feels that the move is the right one for the company and that they can demonstrate success. The article adds that "Noble Roman’s has reinvented itself several times over the years since launching in the 1970s as a chain of dine-in restaurants. In 1997, after intense competition and rising costs made stand-alone pizza joints difficult to operate profitably, Noble Roman’s turned to franchising nontraditional outlets like bowling alleys and gas stations—a strategy that has paid off handsomely. The chain has sold hundreds of franchise owners on features such as a fast-lunch system and a proprietary partially baked crust that ensures Noble Roman’s pizza always tastes the same and can be cooked quickly."

Franchisors Feel Just Fine About the Future of Franchising

At the Hunter Hotel Investment Conference last week in Atlanta, many franchisors in the hospitality industry expressed optimism regarding continued growth. According to this article, one franchisor, Doug Collins who is President & CEO of America's Best Franchising stated that he "sees franchising in the mid market arena as a consistent business, with little variation due to any economic factors so far. Things are about the same in limited service. We are kind of steady like the turtle. We see steady growth every year. " Collins added that "(I)n 2007 the company opened 45 Country Hearth Inns & Suites and America's Best Inns & Suites properties." Collins believes that the company will open 50 franchised hotels this year.

International Franchising-Franchisors are Spending Millions to Recruit Franchisees

Expos, word of mouth, internet marketing, magazine advertising and other techniques are part of the aggressive marketing techniques many Australian Franchisors are using in a desparate attempt to attract Franchisees. According to this article, a study by market research firm 10 Thousand Feet found the sector spent $44.4 million on marketing to franchisees in the year to September 2007. Many former stategies apparently did not focus on women who are now seen as a huge untapped market. Local mortgage broker Refund Home Loans, recently named Australia's fastest-growing franchise by outlets, targets recruits through TV info-mercials.

New Vice-Chairman of the International Franchise Association’s Marketing and PR Committee Elected

Scott Frith , Lawn Doctor's Vice President of Marketing and Franchise Development was recently elected vice-chairman of the International Franchise Association’s Marketing and PR Committee. The announcement was made at the IFA's annual convention that attracted 3,500 franchisors. According to this article, Frith announced: "The mission of the IFA is to protect, enhance and promote franchising. One way this committee can serve the association is to better educate the public and policy makers on the impact of small franchise businesses have on the economy every day," advised Frith on the focus of his new position. "Franchising is the engine that drives commerce in the United States today, and with that momentum, the IFA can serve entrepreneurs looking for long-term stability."

Arizona Surfer Bitten by the Franchising Bug

A former California surfer, Kevin Blackwell has turned a passion for fitness and smoothies into a mega franchising business. Many Arizona residents are familiar with Cold Stone Creamery ice-cream. Blackwell's Scottsdale-based Kahala Corp. is parent to well-known brands such as Cold Stone Creamery, Blimpie and Samurai Sam's Teriyaki Grill. Many of these franchises have a precence in Arizona. According to this article, Blackwell's vision is to have 10,000 franchise stores worldwide by 2010. Kahala Corp is headquartered in Scottsdale, Arizona. The article adds that company officials say the Scottsdale-based Kahala Corp. will take its Cold Stone Creamery brand into Scandinavia during the next five years and plans to have at least 40 stores in Denmark, Norway, Sweden and Finland.

Phoenix Arizona Franchisor Attorney

In addition to handling franchisees with litigation and transactional work, the Phoenix Law Office of Peter N. Greenfeld has recently expanded its representation of Franchisors. Before starting his own practice, Peter worked extensively with Franchisors in a large national firm well known for its Franchisor representation. With his long term experience, Peter has assisted Franchisors with litigation and disputes that arise with existing franchises. The firm also helps franchisors with setting up franchise systems. You can learn more about this Franchise Lawyer by clicking here to visit their website for Franchisees and Franchisors.