SELLING & AWARDING FRANCHISES

“In sales, it’s not what you say; it’s how they perceive what you say.”
– Jeffrey Gitome
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SELLING & AWARDING FRANCHISES
By Gary Occhiogrosso – FMM Contributor

Selling on every level is the principal work in any franchise organization in order to grow your franchise business. Whether it’s selling new franchises or creating systems to support your franchisees to grow their sales or selling your goals to investors, there’so business on the planet that exists without sales.

Have you given thought to the logistics? How do you intend to quickly respond to all the incoming calls, make follow-up calls and address all the prospects questions? How will you ever conduct discovery days, tour prospects to operating units or spend the needed hours to address their fears, concerns and objections? How will you manage your CRM, keep past inquirers in the loop or create buzz that may initiate new buyers and motivate past inquirers to take action now.

A consistent, timely sales effort rules the day. That’s our specialty… We sell! We make the initial contact, we qualify the prospect, guide the candidate through the application process, do the store visits, conduct the meetings & the numerous follow-up calls, the discovery day and work with the prospect each step of the way. You, the Franchisor can stay focused on building the operational side of your business.

One of the most important aspects regarding the franchise sales process is to practice timely response time and create value in the system. That comes from totally dedicated time & focus to the sales process, carefully planning a sales funnel that uses decades of experience, successful track record, industry credibility and franchise industry specific “know how”.

The various steps and numerous hours it takes to close a franchise sale are not something any startup or emerging franchisor should even be thinking about doing on their own.

There is no organization like Franchise Growth Solutions that offers not only a franchise consulting program but also earns its keep by selling franchises for you. It’s our “success-based” upside to offset the low fees for all the other services FGS provides.
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About the Author:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with its founders. He is the former President of TRUFOODS, LLC a multi-brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition, Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales, and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast over AM970 in New York City.
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ABOUT FRANCHISE GROWTH SOLUTIONS, LLC
Franchise Growth Solutions, LLC is a strategic planning, franchise development and sales organization offering franchise sales, brand concept and development, strategic planning, real estate and architectural development, vendor management, lead generation, advertising, marketing and PR including social media. Franchise Growth Solutions’ proven “Coach, Mentor & Grow®” system puts both franchisors and potential franchisees on the fast track to growth. Membership in Franchise Growth Solutions’ client portfolio is by recommendation only. www.frangrow.com
Contact: [email protected]

Why Thin Crust Pizza is all the Rage in Franchising

While many new franchised pizza brands have turned to create your own, limited service concepts offering non-traditional, lower quality pizza, Riko’s Thin Crust has moved in the other direction. Offering full service, high quality, made to order pizza, salads, and Wings in a family-friendly casual setting. They practice all the steps in successful franchising

Why Thin Crust Pizza is all the Rage in Franchising

The “Think” Crust Concept behind Riko’s Pizza
By Laurie Hilliard – FMM Contributor.

The inspiration for opening a restaurant comes from many sources, Riko’s is rooted in the enduring values of family, a belief in simple homestyle food and finding the best means to serve the time-honored passion for pizza. Today Riko’s is an evolution of the classic mom and pop pizza places we all grew up with. It is familiar, inviting and smells delicious yet offers a modern next-generation twist designed to meet today’s fast-casual lifestyle. We like to say, “It’s a good place to be.” And that translates into “It’s a good place to be” all ‘round: a good place to eat, a good place to work and a good place to own.

Since opening our first location in 2011 in Stamford CT, our family-centric enterprise has evolved and adapted to the changing pizza industry, local real estate markets, and consumers’ lifestyles. We have developed two proven operating models in three locations; full-service, casual restaurant with full bar and the fast-casual model; take-out and delivery. Both models have three points of service: dine-in, call/online ordering for pick up and call/online ordering for delivery. And that’s unique in the casual dining space.

Our menu is a study (a labor of love, to be sure) in simplicity, in delicious food, and no-fail processes. Our signature 6-slice, thin crust pizza made from a 70-year-old recipe starting with a proprietary pizza dough and sauce, that tops a carefully crafted, streamlined menu. Best sellers like cheese, pepperonil and hot oil pizza satisfy family favorites while innovations, like Chicken Scarpariello, a host of salad pizzas, specialty pies like Hawaiian pizza, Mac ‘N Cheese Pizza and Veggie Pizza tempt guests looking to try something new. Our baked (not fried) chicken wings, fresh-made salads, and tempting dessert selections offer a high-quality, family friendly, affordable meal to be enjoyed at our tables, at home or on the go.

Riko’s franchise opportunities are uniquely flexible, streamlined and turn-key. And while we have refined and tweaked our business models over the past 7 years, we have retained our core philosophy; a long-standing esteem for family and relationships, quality food from our own family recipes, and warm hospitality. Our respect for guests, our employees, and our community is the cornerstone of our success.

Franchise owners and guests alike are assured of consistency with every thin crust pie. Our proprietary, simplified cooking process draws on equipment, instructions and no-fail recipes that are easily perfected by cooks and non-cooks. We boast that we can teach anyone to make our pies with our process in about 10 minutes. That typifies the thoughtful approach we have taken to all aspects of the business. We blend our strong, family-based values with a simple menu, systems, and operations to ensure quality, consistency, and success. That’s the “secret sauce” for driving success and growth while keeping Riko’s a good place to be. Contact: [email protected]

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ABOUT RIKO’S THIN CRUST PIZZA
Riko’s Thin Crust Pizza is a chain of “new generation” pizzerias located in Fairfield County, CT. Using a recipe handed down for generations; Riko’s offers authentic Italian fare using the highest quality and fresh ingredients. Known for its thin crust pizza, Riko’s also offers a full complement of salads, wings, and other menu items. https://rikosfranchise.com/index.php

ABOUT FRANCHISE GROWTH SOLUTIONS, LLC
Franchise Growth Solutions, LLC is a strategic planning, franchise development and sales organization offering franchise sales, brand concept and development, strategic planning, real estate and architectural development, vendor management, lead generation, advertising, marketing and PR including social media. Franchise Growth Solutions’ proven “Coach, Mentor & Grow®” system puts both franchisors and potential franchisees on the fast track to growth. Membership in Franchise Growth Solutions’ client portfolio is by recommendation only. www.frangrow.com Offer by prospectus only.
Contact: [email protected]

10 Simple Steps To Evaluate a Franchise Opportunity

Whether you’re a multi-unit franchisee, an individual franchise candidate or a representative of a private equity group these 10 steps will allow you to perform a preliminary franchise review. Although a first step in the franchise evaluation process, it can provide an overview of a franchise investment opportunity at minimal cost and expense.

10 Simple Steps To Evaluate a Franchise Opportunity

By Ed Teixeira – Chief Operating Officer of Franchise Grade

A good deal of information has been written and published about how to evaluate a franchise opportunity. Whether one is an individual or represents a private equity firm, it’s important to be able to evaluate and vet a franchise before conducting a full-scale analysis. The following is a way to do an initial franchise review, before investing a lot of time and money.

To perform this 10- step review, you’ll need a copy of the Franchise Disclosure Document for each franchise you’re evaluating. An FDD can be obtained from the franchisor and they’re available from certain Franchise Registration States or can be purchased from franchise vendor sites. If the decision is to pursue a specific franchise opportunity, a complete and detailed evaluation should follow this 10-step preliminary review, which should include utilizing legal and financial professionals with franchising experience.

Contributing to the 10 steps was Mario Herman, a Washington D.C. based franchise attorney.

Following are 10 preliminary steps for evaluating a franchise opportunity:

1. Franchisor Management-review the management background and experience of key franchisor executives and support staff. It’s important that they have experience in the business sector and franchise industry. Franchisor leadership should have a cross section of business skills and experience.

2. Franchisee Territory-The territory should be defined in a consistent manner and allow for franchisee growth. Verify if the franchisee territory is Exclusive, Protected or Open. Franchisors that grant small open territories can result in conflicts among neighboring franchisees as some franchisees will be more aggressive than others. There is also the potential for a dispute with the franchisor over the territory.

3. Franchisee Fees-identify if the franchisor charges other fees for services above and beyond any royalty and ad fund fees. Additional continuing fees for software usage and licensing fees, when added to royalty and ad fees will increase expenses. Be sure that the initial franchise fee and the continuing fees are comparable to similar franchises.

4. Item 20– review the growth of new franchisees and compare to franchisee terminations. This number will reveal net franchisee growth and prevent one from seeing misleading data. Also, the number of Franchises Sold But Not Opened can indicate if the franchisor is devoted more resources to selling franchise versus the growth and development of existing franchises. The tables in Item 20 contains information which can indicate positive or negative performance results.

5. Financial Statements– Unless the franchisor is a start-up there should be three (3) years of audited financials available. Look for a continuing and growing stream of revenues from franchisee royalties. Initial franchise fees should not represent the preponderance of revenues unless it’s a start-up.

6 .Required Suppliers and Rebates– Does the franchisor requires purchases from specific vendors? Compare that information to the data in Item 8, which shows the percent of purchases from the franchisor and other vendors and suppliers. In addition, does the franchisor receive rebates from vendors and suppliers and if yes, how much? Many rebates from required franchisee vendors could compromise the trust between a franchisor and its franchisees.

7.Intellectual Property-Does the franchisor have any confidential,proprietary information or trade secrets that distinguish the franchise from the competitors? Check Items 13-14 of the FDD to determine how unique the system is, and whether the franchisor has a comparative advantage over its competition. Also, does the franchisor have the marks trademarked? Make sure that the franchisor properly and legally controls the brand name, and there is no potential dispute over ownership of the marks.

8. Item 19-it’s important that the franchisor makes a Financial Performance Representation under Item 19. Any established franchisor should make an Item 19 disclosure. The more detailed the financial information the easier to evaluate franchisee performance and make financial projections. If the franchise is a startup there should be financial data for company locations.

9. Franchisor Litigation– franchisor-franchisee litigation is a barometer of the state of franchisee-franchisor relations, is it positive or negative? Has the franchisor acted to protect its system and brand or is it a case of franchisees having disputes with the franchisor, because they are not receiving support or meeting their financial expectations? Some medium to large franchisors reports no litigation while some smaller franchisors may have had many legal disputes. The amount and source of litigation is an area that should be reviewed since it be can be a red flag.

10. Franchisor Training Programs– Franchisee training should be comprehensive and presented by more than one person. Training that includes a portion of onsite training for new franchisees provides real-world franchise experience that the classroom can’t duplicate.

Whether you’re a multi-unit franchisee, an individual franchise candidate or a representative of a private equity group these 10 steps will allow you to perform a preliminary franchise review. Although a first step in the franchise evaluation process, it can provide an overview of a franchise investment opportunity at minimal cost and expense. If you decide to proceed with a specific franchise opportunity, be sure to utilize an accountant and franchise attorney to guide you along the way.
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About the author
Ed Teixeira is Chief Operating Officer of Franchise Grade and was the founder and President of FranchiseKnowHow, L.L.C. a franchise consulting firm. Ed has over 35 years’ experience as a Senior Executive for franchisors in the retail, healthcare, manufacturing and software industries and was also a franchisee. Ed has consulted clients to franchise their existing business and those seeking strategic solutions to operational, marketing and franchise relations issues. He has transacted international licensing in Europe, Asia, and South America. Ed is the author of Franchising from the Inside Out and The Franchise Buyers Manual and has spoken at a number of venues including the International Franchise Expo and the Chinese Franchise Association in Shanghai, China. He has conducted seminars, written numerous articles on the subject of franchising and has been interviewed on TV and radio and has testified as an expert witness on franchising. He is a franchise valuation expert by the Business Brokerage Press. Ed can be contacted at [email protected]