TOP 10 MISTAKES TO AVOID WHEN GROWING YOUR FRANCHISE

Photo by Nicola Barts

Avoiding these common mistakes can significantly enhance the chances of successful franchise growth. Understanding the complexity, protecting the brand, selecting suitable sites and franchisees, providing thorough training and support, respecting local market dynamics, planning financially, managing growth, and listening to feedback are all integral to the successful growth of a franchise.

TOP 10 MISTAKES TO AVOID WHEN GROWING YOUR FRANCHISE
By Gary Occhiogrosso

Growing a franchise can be a rewarding journey, offering an opportunity to amplify business success by extending a proven model across different markets. However, it is not without its challenges, and various pitfalls can hinder growth and undermine the business’s potential. Here are the top 10 mistakes to avoid when growing your franchise.

Underestimating the Complexity: Franchising isn’t just about replicating a business model. It entails legal considerations, marketing, support systems, and much more. Rushing into franchising without a comprehensive understanding can lead to disastrous results (Entrepreneur, 2020).

Failing to Protect the Brand: Your brand is your franchise’s core. Allowing inconsistencies in brand representation can damage the franchise’s image. It’s crucial to establish firm brand standards and enforce them across all franchises (Franchise Direct, 2020).

Poor Site Selection: The location of your franchise can significantly influence its success. Not conducting thorough research on potential locations can lead to poor performance and risk the viability of the new outlets (FranchiseGator, 2021).

Inadequate Training Programs: Franchisees need to understand the business’s core operations and values. An insufficient or poor quality training program can lead to operational inconsistencies and customer dissatisfaction (IFA, 2020).

Overlooking Local Market Dynamics: While a franchise model may work well in one area, it’s not guaranteed to succeed in another. Ignoring local market dynamics and not tailoring the franchise offering can result in failure (FranchiseGator, 2021).

Choosing the Wrong Franchisees: A franchise is only as good as its franchisees. Selecting franchisees based merely on their ability to pay the franchise fee, rather than their alignment with the brand’s values and their capacity to manage a business, can lead to problems down the line (Entrepreneur, 2020).

Neglecting Franchisee Support: Once a franchisee is up and running, the work doesn’t stop there. Not providing ongoing support can lead to operational errors and can cause franchisees to feel isolated and unsupported (Franchise Direct, 2020).

Expanding Too Quickly: While growth is desirable, expanding too quickly can strain resources and lead to mistakes. Franchisors must have a measured, sustainable growth plan (Forbes, 2021).

Inadequate Financial Planning: Franchising involves considerable investment. Lack of proper financial planning and underestimating costs can lead to financial troubles, impacting both the franchisor and franchisees (FranchiseGator, 2021).

Ignoring Feedback: Franchisees are on the front line and can provide valuable insights. Ignoring their feedback can result in missed opportunities for improvement and innovation (IFA, 2020).

Avoiding these common mistakes can significantly enhance the chances of successful franchise growth. Understanding the complexity, protecting the brand, selecting suitable sites and franchisees, providing thorough training and support, respecting local market dynamics, planning financially, managing growth, and listening to feedback are all integral to the successful growth of a franchise.

Sources:

Entrepreneur. (2020). The Pros and Cons of Franchising Your Business.
Franchise Direct. (2020). The Top 5 Franchise Mistakes to Avoid.
FranchiseGator. (2021). Common Mistakes to Avoid When Franchising Your Business.
Forbes. (2021). 10 Key Steps To Franchising Your Business.
International Franchise Association (IFA). (2020). Best Practices for Franchisors.

GROW LEADERS WITHIN YOUR RANKS

If you want to increase retention and expand diversity in the restaurant business in 2023 – especially in leadership, on boards and with founders of growing brands – start with education.
The restaurant industry has an information problem. Historically, most restaurant education is limited to on-the-job (OTJ) training, which presents numerous challenges.

Increase retention and expand diversity through employee education
By Lauren Fernandez

If you want to increase retention and expand diversity in the restaurant business in 2023 – especially in leadership, on boards and with founders of growing brands – start with education.
The restaurant industry has an information problem. Historically, most restaurant education is limited to on-the-job (OTJ) training, which presents numerous challenges.

Traditional restaurant OTJ training is fraught with issues such as a lack of budget, lack of time and no quality control standardization. Accessibility is also an issue: often we see that with OTJ training there is no way to accommodate different learning styles and languages, alienating non-English-speaking employees. A lack of training stems from many problems, such as categorically high turnover rates, high levels of attrition and a general lack of leadership training that plagues our industry.

I’m a Latina and a first-generation American, and my parents saw education as a means for me and my siblings to better our lives. They worked hard to make sure we received the best education in order to create more opportunities than they had.

While I followed a traditional educational path in law and business, my OTJ training operating our restaurants was undoubtedly the most impactful. Experience in the field as an operator taught me more about the restaurant industry than my previous education could, and it closed the information gap on what it takes to be a leader in our industry. But both my educations together – in graduate schools and on-the-job – have equipped me with a unique lens, and it informs my call to action: we as restaurant leaders can leverage education to overcome barriers and as a tool for growth.

When we champion education, we mean restaurant-specific training with a focus on operational excellence, profit and loss management, leadership development and more. Investing in people and their personal and professional development contributes to a culture where people are valued, and ultimately develops stronger leaders that will make the industry a better place to work. We must proactively nurture the next generation of restaurant workers who will see the industry as a long-term career rather than a temporary job.

And this isn’t as hard of a lift as you would think. While I was an operator, I hosted quarterly management team meetings where we not only focused on results and celebrated wins, but we focused on new leanings and sharing best practices. I taught high-level strategies like profit management, but we always-connected theory back to actual practice. These meetings created a collaborative and transparent environment where managers helped each other improve, and they were instrumental in improving the performance metrics of the group as a whole.

Restaurants nationwide employ nearly 12 million workers and account for 4% of the overall GDP in the United States. As an industry, we still suffer from very high turnover and attrition. Investing in education is one key to retention and building long-term, desirable careers in our industry. To address the challenges of turnover and retention, consider some of these additional ideas:

*Innovative incentive and rewards programs like matching payments on student loans. More than 43 million people in the U.S. owe money toward student loans, and the average federal student loan debt balance is nearly $38,000. Offering a program to help reduce that debt can be a huge incentive to draw good employees and keep them. In fact, one study noted that 86% of people between the ages of 22 and 33 would commit to an employer for five years if offered a student loan repayment program. And, through 2025, employers can offer up to $5,250 in student loan repayment benefits without paying any tax thanks to the Consolidated Appropriations Act, which was signed into law in 2020 as part of pandemic relief efforts.

*Volunteer days for a food-related cause like a community food bank. Many studies have shown that offering some sort of volunteer program can boost productivity, increase employee engagement and improve hiring and retention rates. Ask your employees to select a cause, or find something that ties into what your restaurant offers – not only are you giving back to your larger community, you’re also showing your employees that you are doing something worthwhile outside your restaurant’s four walls.

*Encouraging participation. Support your employees to seek out opportunities to learn and engage in the industry. It can also encourage them to grow and thrive in their potential hospitality career. That can be through culinary schools and events, volunteer board opportunities or speaking on panels and at conferences.

*Sponsoring conference membership and attendance. Encourage employees to attend conferences or pay for memberships to restaurant- or culinary-related organizations. This will help create networking opportunities for them, and they will bring back information that could help your business grow, too.

*Teambuilding retreats/exercises. Consider building a program that promotes your company’s mission, vision and goals while also creating an atmosphere for support and encouragement.
With education as the cornerstone of your efforts to retain good employees, expect it to play an even larger role in the future as labor challenges continue. To that end, Full Course launched a new 501(c)(3) nonprofit foundation, Full Course Learning Center, to ensure education and support are accessible to all in our industry, from back of house to operators. You can find educational tools and resources, including more ideas about employee retention, at fullcourse.com/education.

When it comes to employee retention, new ideas and approaches will continue to evolve. By implementing some thoughtful ways to address these challenges, you can make sure that not only will you find good employees, but that they stay and grow with you and your business, too.

Lauren Fernandez is the Founder and CEO of Full Course (www.fullcourse.com ), a non-traditional restaurant investment group created for operators by operators that is changing the way new businesses grow their brands. The company partners with restaurants in the early stages of development to optimize existing operations develop strategies for sustainable growth and bring the right investors or franchise partners to the table. Fernandez is a restaurant industry veteran with two decades of experience. She previously served as general counsel and head of franchise administration for FOCUS Brands, a multi-brand restaurant company with more than 4,000 restaurants (including Carvel, Cinnabon and Moe’s Southwest Grill) in over 15 countries, and was co-founder, president and operating partner for multi-unit franchise developer Origin Development Group, acting as a strategic growth partner for brands such as Chicken Salad Chick. She also is a frequent speaker in the areas of organic business growth, licensing and franchise operations across the country.

HOW TO SOLVE THE BIGGEST CHALLENGES OF A HYBRID WORKFORCE

According to Forrester, 70% of U.S. and European companies will pivot to a hybrid work model post-pandemic. What’s more, 75% of CEOs expect their office spaces to shrink, so the space that is retained must be intentionally created with hybrid in mind.

How to solve the biggest challenges of a hybrid workforce

Contributed by BrandPoint

(BPT) – Since the onset of the global pandemic there has been a paradigm shift that work is what you do, not where you do it. As workers increasingly return to traditional offices, the need to transform the space into more dynamic and collaborative business centers grows.

According to Forrester, 70% of U.S. and European companies will pivot to a hybrid work model post-pandemic. What’s more, 75% of CEOs expect their office spaces to shrink, so the space that is retained must be intentionally created with hybrid in mind.

“The problem is that while many American employers have embraced this model for their employees, they have not fully implemented collaborative strategies and the necessary technologies that help workers remain productive, creative and inspired in and out of the office setting,” said Shannon MacKay, general manager of WW Smart Collaboration Business Group, Lenovo.

Adopting the right technologies so employees can seamlessly work in the office, at home or elsewhere is key to the success of hybrid work. When done correctly, it can set an organization up for success: According to a recent Lenovo study, a majority (77%) of employees and IT decision-makers believe that productivity and collaboration tools have made or will make their business more efficient in the long run.

When done poorly it can diminish productivity, culture and ultimately, the workforce: According to the Adobe State of Work Report, 32% of workers (nearly a third) have said goodbye to an employer whose tech was a barrier to their ability to do good work — up from 22% pre-COVID.

Hybrid work will require new ways of collaborating to ensure an inclusive environment that attracts and retains top talent. This is particularly important considering in-person meetings will drop from 60% of total enterprise meetings to just 25% by 2024, according to Gartner’s 2021 Digital Worker Experience Survey.

Unfortunately, the Lenovo study shows large enterprises report an average of three unified communication/collaboration applications in use at their companies. This makes collaboration complex and a daily pain point for workers. Not only does this restrict communication, so many of the important interactions between people that build company culture and teams are lost.

“Hearing the live reactions, or impromptu exchanges going on at the end of the table is the difference between feeling like an equal citizen at a hybrid meeting and feeling like a second class one. What about if those microphones can auto-adjust to the positioning of the participants in the room and upweight the sound of those on the right of the room in the right-hand speaker to make it as realistic as possible for those at home too?” said MacKay.

Purpose-built technology like Lenovo’s new ThinkSmart One, the world’s first Windows-based completely integrated collaboration bar, anticipates the continued growth of hybrid meeting spaces as businesses strive to find innovative ways to work together in a distributed workforce. Designed to easily equip small meeting rooms, the bar offers an exceptional audio-visual through eight microphone arrays with echo and noise cancellation, 15-Watt stereo speakers and an integrated high-resolution camera with wide field of view.

There is no one-size-fits-all solution when adjusting to hybrid work. It is critical for IT leaders to reassess their technologies and best practices to ensure all participants have an equal opportunity to collaborate, share ideas and influence decisions. Companies focused on a successful ‘return to work’ plan must implement customizable technologies to make sure their office setup matches their employees’ needs.

HOW TO SELECT THE OPTIMAL VALUATION TECHNIQUE FOR YOUR STARTUP

Revenue multiples are helpful for both private companies (which lack stock prices) and public companies (for which stock prices are readily available). They’re also beneficial for businesses with low sales because they’re less affected by fluctuations in gross margins and other financial metrics that may fluctuate based on industry trends or economic conditions during the analyzed period.

How To Select The Optimal Valuation Technique For Your Startup
By FMM Contributor, Johnny Dey

Introduction

It is simple to focus on the day-to-day operations of your business when launching a business. You should not spend too much time contemplating the value of your business or the amount you could receive if you sold it. However, valuing your venture is crucial to operating a successful business, as it helps you determine how much capital you need to raise to develop and sustain your business. When it’s time for an investor or potential acquirer to make an offer on your company, valuation is an essential part of the negotiation for the selling price.

The Market Strategy

The market approach is founded on the value of comparable businesses. Therefore, this method is optimal for entrepreneurs with a proven business model or who have already raised capital.

The market approach can be utilized to determine the value of either a startup or an established business. For example, an early-stage company has yet to achieve profitability. As a result, it may not have any revenue. In contrast, a mature company has already achieved profitability. As a result, it generates sufficient cash flow to pay its obligations and reinvest in itself without raising additional capital from investors.

Revenue Multiple

Revenue multiples are a straightforward strategy for valuing a business. The multiple revenue formulae divide a company’s annual revenue by its market capitalization, which is its stock price multiplied by its outstanding shares. For instance, if your company has $1 million in revenue and a comparable company has a market capitalization of $10 million, then your company would be valued at ten times revenue, or $10 million.

Revenue multiples are helpful for both private companies (which lack stock prices) and public companies (for which stock prices are readily available). They’re also beneficial for businesses with low sales because they’re less affected by fluctuations in gross margins and other financial metrics that may fluctuate based on industry trends or economic conditions during the analyzed period.

EBITDA Multiple

Multiples of EBITDA are based on a company’s earnings before interest, taxes, depreciation, and amortization. EBITDA is an excellent indicator of profitability because it is less affected by accounting decisions than net income.

The calculation for this multiple is as follows:
Earnings Before Interest Taxes Depreciation And Amortization (EBITDA) Multiple = (Earnings Before Interest Taxes Depreciation And Amortization) / Enterprise Value

Comparable Organizations Technique

The analogous companies method is the most prevalent method of valuation. It’s founded on the presumption that your venture is a “normal” business, so you can use other comparable companies to determine its value.

This method is very time consuming, as you must identify analogous companies and compare them to yours. In addition, this method needs to account for the risk and ambiguity related to your startup’s business model and product/service offering.

Pricing Strategy

The cost approach is a method of business valuation that compares your company to others in the same industry to determine its worth. This strategy depends on tangible and ethereal assets, such as technology, team, and brand, in addition to the customer base.

Identifying competitors with similar products or services publicly traded on Nasdaq or NYSE MKT is the first step in this process (formerly known as OTC Markets Group). Once you’ve identified analogous companies, you can compare their sales figures to determine whether yours are developing at the same rate or quicker. If they’re growing faster than you, this may indicate that there’s room for expansion in your own business; however, if they’re growing more slowly than you, investors may be able to demand better terms from them when negotiating funding rounds in the future, as they’ll know how much potential value lies within each share of stock sold today compared to tomorrow’s market price once news spreads about how well Q1 earnings season went!

Benefits Of An Asset-Based Strategy

The benefit of an asset-based approach to valuation is that it measures a company’s intrinsic value. This is because it emphasizes assets rather than liabilities. Subtract your liabilities from your assets, then divide the difference by one minus your tax rate to calculate this method (1 – T).

The disadvantage of this method is that it does not account for intangible assets such as goodwill or intellectual property rights; however, these can be factored into any potential sale price through negotiation with potential buyers or sellers during due diligence processes before finalizing the transaction.

The optimal method for valuing your venture depends on the specifics of the situation and its characteristics.

The market approach is the most straightforward and intuitive method for valuing a startup. It is based on the value of comparable companies in the same industry, so it can be used for early-stage companies that do not yet have a significant amount of revenue or earnings (if any). The disadvantage of this method is that it is challenging to locate comparable companies; you will need access to an extensive database of private company financials if you wish to employ this strategy.

Conclusion

The optimal method for valuing your venture depends on the specifics of the situation and its characteristics. If you have significant market potential and wish to transfer your company immediately, you should adopt a market-based strategy. The revenue multiple and EBITDA multiple are useful for valuing established firms. In contrast, the comparable companies method helps value smaller businesses with less complex operations. The cost approach can be used when estimating value based on assets or liabilities alone. In contrast, the asset-based approach is beneficial when evaluating a company’s goodwill value.

TIPS ON COMMUNICATING SUCCESSFULLY WITH YOUR EMPLOYEES

When you are in charge of anything, communication is a crucial aspect of the task, but its relevance increases if you are in a leadership role regarding employees. The method in which you interact with your employees may have a substantial impact on how they feel about their jobs and the quality of work they do. You want them to feel heard and appreciated.

Tips on Communicating Successfully With Your Employees

Introduction

When you are in charge of anything, communication is a crucial aspect of the task, but its relevance increases if you are in a leadership role regarding employees. The method in which you interact with your employees may have a substantial impact on how they feel about their jobs and the quality of work they do. You want them to feel heard and appreciated. You also want them to feel free to make mistakes without fear of censure or punishment. However, accountability for their actions should not be overshadowed by communicating in such a way that they are not aware of a mistake. It’s how you use the mistake to improve that count. This is why it is crucial to know how to communicate most effectively with them: you want them to feel heard and appreciated, but you also want them to feel comfortable speaking freely without fear of making a mistake.

Set The Tone

Set the tone by being a good example for people to follow. As your employees will mirror your behavior and emulate how you deal with them if you set a good example, it is crucial that you courteously communicate with them.

Preserve coherence to establish a tone. Ensure that every team member is aware of the expected behaviors while communicating with one another, whether through email or in-person meetings; then adhere to these standards in all of your communications. The use of proper words is critical to maintaining clear and professional communication, particularly in a workplace environment.

When dealing with employee disputes, you should set the tone by being kind and impartial (and even between managers). When there is a dispute between two individuals or teams at work, you shouldn’t let it develop into a full-scale conflict; instead, you should attempt to resolve the issue amicably before involving higher-ups if necessary. If you allow the situation to grow into a full-scale battle, you will only make matters worse.

Communicate In Person

Unquestionably, emailing your workers is an excellent way to stay in contact with them. Face-to-face engagement, on the other hand, cannot be compared to any other kind of communication in terms of delivering crucial information and managing workers’ emotions. When you are face-to-face with your employees, you can read their body language and assess how they respond to your words, and vice versa. You can also convey the tone of voice and facial expressions, which is far more complicated (or impossible), through email.

Due to recent improvements in videoconferencing technology, it is now possible for individuals on opposite sides of the globe who have yet to meet to want or need something from each other (such as comments on performance appraisals) to connect.

Ask Questions, Not Statements.

Ask open-ended inquiries. This can help you better comprehend the employee’s perspective and encourage them to respond more thoughtfully.
People sometimes do not like it when you answer a question with a question, but do it anyway. It conveys an interest in what the other person is attempting to communicate and your desire to truly understand them.

Whenever feasible, you should avoid asking yes/no questions and making “if/then” statements since these queries tend to be too binary for most situations. Instead, you should ask yourself: what else could this person possibly be thinking? What would be different from their vantage point? And what reaction would I get if I told them this?

People Should Be Allowed To Speak Openly

While communicating with your workers, you must allow them to express themselves freely. As a leader, it is crucial that you listen to what people have to say without interrupting or casting judgment on what they say. It is preferable to ask questions when something does not make sense rather than make assumptions or speculations.

It would be best to allow them space to express themselves without feeling compelled by your emotions interfering with the dialogue. For example, when a team member makes a mistake, you may feel angry or frustrated. Nevertheless, it would be best to refrain from responding emotionally since doing so will only exacerbate the problem and distract your teammates from what matters most: how effectively they execute their job.

Practice being an attentive listener (and observer)

The single most important thing you can do as a leader is to listen to the input supplied by your workers. You may decide not to execute on the suggestion, but at least it should be heard and considered

Listen to what they have to say and observe their behavior, not just in the workplace but also in other contexts. This entails studying closely how folks interact in person and through technological means such as email and text messages. You may find that some of your best ideas come from observing patterns of behavior that have not been explicitly brought up but are nonetheless significant (for instance, an employee may always respond to questions about a project with “I’m on it!”; this could indicate that she needs additional direction). Conversely, you may also discover that some of your finest ideas result from recognizing patterns of conduct that have not been expressly mentioned but are nevertheless significant.

Don’t Allow Job Titles To Distract You.

Keep job titles and responsibilities from distracting you throughout the recruitment process. Instead, please focus on the person, their achievements, and degree of competence. Focus on what they can do for your company and how they can help you achieve your goals.

It is easy to fall into the trap of focusing on resumes instead of people when filling a job quickly; this is particularly crucial for recruiting managers with limited resources and time restrictions. This is particularly critical when recruiting managers have limited money and time. Yet suppose everyone concentrates on credentials instead of personalities and character qualities. In that case, it becomes hard for candidates with tremendous potential but insufficient experience to distinguish themselves from others with more relevant expertise but less overall potential. This is because qualifications are objective, but personality characteristics and character traits are subjective (for example: if one person has worked as an assistant manager while another has worked as an entry-level employee).

Clear Communication Is King

One of the essential components of being a great leader is the ability to communicate with others, yet this can be challenging. Please remember that communication is a two-way street; if you want to get the most out of it with your employees, you must be open and honest.

Listening to what they are saying is crucial, so try asking questions such as “What do you think?” or “Can you give me some examples?” Listening more than speaking makes individuals feel more comfortable opening up about sensitive topics. Again, it is essential that you pay close attention to what they are saying. Consider asking, “What do you think?” or “Can you provide some examples?”

Not only does having clear expectations facilitate communication, but it also guarantees that everyone is on the same page regarding how they feel about any given issue or event. For instance, if you tell another individual which tasks must be completed by then, there will be a clear understanding when those dates come up again!

Conclusion

It is important to remember that communication is a two-way process. You cannot just lecture your employees; you must listen to what they say, observe their actions, and ask them questions. Doing this well helps employees feel acknowledged and allows them to provide feedback on what they think needs to be addressed at their workplace.

What To Consider When Purchasing A Franchise

Photo by Estée Janssens on Unsplash

Summary: To select the ideal franchise company to join, you should first find a company with a proven track record of success. A good franchisor will have been in business for at least two or three years and be able to demonstrate the growth potential of its products and services. The best way to do this is by looking at how many franchises they currently have in operation and are they profitable. A robust and growing network often indicates a successful brand.

10 Key Points To Consider When Purchasing A Franchise
Originally published in Forbes.

By Gary Occhiogrosso, Managing Partner Franchise Growth Solutions

If your goal is to purchase a franchise, choosing the right franchise brand to invest in is one of the most important decisions you’ll make as a business owner. It’s not just about finding a company with a proven track record but also finding one that fits your personality and lifestyle. Your first step, is knowing what to look for when you’re evaluating potential franchises. Here are some key areas to consider:

Franchise Fees
Franchise fees are one-time payments made when purchasing a franchise. These fees can range from $10,000 to $100,000 and are used to pay for the rights to use the name, the procedures and any systems developed by the franchisor. It is also used to cover costs for training and opening support by the franchisor to assist the franchisee with the opening of their franchise. Franchisors usually charge their franchisees up-front fee when the franchise is granted. In addition, post Covid initial “turnkey” investments may be higher than in the past due to supply chain issues, inflation, and increased cost of equipment and leasehold improvements between brands.

Royalty Fees
Royalty fees are the amount of ongoing money (usually a percentage of gross sales) you pay to the franchisor for using their brand name and ongoing support such as marketing and developing new products or services for the franchisee. As a franchisee, you are required to pay royalties based on a portion of your sales. This percentage may be fixed or fluctuate on a sliding scale based on sales.

Term Length
Franchise term length can be a good indicator of how much the Franchisor invests in their franchisees.
On average, depending on the type of franchise, home based vs a retail location, franchise brands have terms that last ten years or less. This means there’s plenty of time for the franchisee and franchisor to work together and develop a solid relationship. Still, it also means that the franchisee may not be allowed to retain the business if something doesn’t work out. If a franchisee is underperforming, the franchisor may not renew the franchise agreement once it expires, or may seek to terminate the franchise prior to the full term. In such a case, the franchisee must exit the business. In many instances, there will be a contractual obligation that the franchisee cannot open a similar business for a period of time within a certain distance from their original location. This is called a non-compete clause.

Consider Your Lifestyle.
* Consider the lifestyle you will have while running the business.
* Look at the hours of operation. You don’t want to buy an 80 work week.
* Review flexibility of franchisor with respect to new products, relocation and other variables.
* See if the location makes sense for you. You will need to manage the location or develop a team to manage the day-to-day operation for you.
* Check out the type of work needed to run the franchisee. Make sure it fits your skill set and interests, including whether it’s something you’d enjoy doing as a full-time job.
Seeking the advice of a professional franchise consultant can be an extremely useful method when evaluating if a franchise is the right business model for you. Scott Milas, a Certified Franchise Executive (CFC) and Certified Franchise Consultant (CFC) with The International Franchise Professionals Group recommends you consider these questions: “What is your “Know” and “Why?” Understanding “why” you are interested in owning your own business, and “knowing” who you are, are critical steps in choosing the right opportunity. A self evaluation and clear picture of your skill sets and eventual end game- exit strategy, will help ensure that you invest in the right opportunity. Better to “know” now then after you made the wrong decision. “Why” now?
An experienced franchise consultant can assist you in answering those questions and choosing a brand that’s a good lifestyle fit as well as one that offers opportunities to meet your business goals

Look For An Experienced Franchisor
To select the ideal franchise company to join, you should first find a company with a proven track record of success. A good franchisor will have been in business for at least two or three years and be able to demonstrate the growth potential of its products and services. The best way to do this is by looking at how many franchises they currently have in operation and are they profitable. A robust and growing network often indicates a successful brand. In addition, it demonstrates that customers value its products or services enough to pay for them again through multiple businesses.
The second thing you should look for when choosing a franchise is reputation—how well does your chosen brand stand up against its competitors? While there may be other similar businesses out there with similar business models, does you selected band have points of difference to separate itself from the competition. It’s essential that you choose one that utilizes high-quality materials, produces consistent results, and provides excellent customer service while maintaining competitive prices at all times.”

Know Your Competition
One of the steps to building a successful franchise business is to know your competition. What brands already exist in the market, and how do they compare? What is their customer base, and what can you learn from them? How do your offerings differ from theirs, and how do these differences help or hinder you as a company?
Tom Scarda a former franchisee and now a franchise coach and consultant offering advice to franchise buyers regarding evaluating the competition and what it may mean to their success as a franchisee “It’s smart to think about a product or service that is needed in your area and consider bringing that sort of business to the town. However, just because there are no batting cages in your town and you think it would do great because there are kids everywhere, you may be right. However, will it make money? Is there some reason why there is no batting cages in the area? When starting a business, you must, must do a comprehensive business plan before anything else. Learn about competition in the area. Understand the local county laws and regulations around the business you’re considering. Be real about the cost to start and run the operation. These are just a few items to consider in a business plan.”

Once you’ve got a handle on who’s out there, it will be easier for you to see where there are gaps in the market—and then fill those gaps with your unique brand identity.

Carefully Review The Franchise Disclosure Document.
Read the current franchise disclosure document (check the issuance date) and have it reviewed by a competent franchise attorney. Harold Kestenbaum, a noted franchise attorney with Spadea Law advises: “When considering the purchase of a franchise, I highly recommend retaining the services of an experienced franchisee attorney. Never contemplate purchasing a franchise without seeking the advice of an attorney who has reviewed FDD;s before. I also recommend that you do your due diligence. By that I mean that you should review Item 20 of the FDD and call all of the existing franchisees who are in your general area.”

There are additional factors to consider when reviewing the franchisor’s FDD. According to Richard Bayer, a Partner in the law firm Einbinder & Dunn LLP: “Purchasing a franchise for many first-time business owners will often be one of the top three expensive transactions the franchisee will ever go through in his/her lifetime. Given the severity of the investment, a franchisee must commit to doing due diligence. It starts with speaking with existing franchisees as well as those who left the system. Their contact information can be found in the FDD. The goals from these calls include gaining a better understanding of the economics of the franchise – is it profitable, when is break even reached, do costs (labor or otherwise) or revenues fluctuate significantly making it difficult to predict performance. Equally important is getting a sense of the franchisor’s temperament – is the franchisor supportive, does the franchisor go above and beyond legal obligations (imposed in the franchise agreement) to deliver for its franchisees, is the franchisor forward thinking and/or technology driven. The FDD is a great source of information about a system, but it is has gaps that can be filled in quite nicely by franchisees in the system and by those who left. Purchasing a franchise without speaking to as many franchisees as possible is a lost opportunity.”

Investigate The Franchisor’s Tenure And Track Record of Success
In addition to analyzing the franchisors’ financials, it’s also vital to examine their overall track record. While a strong balance sheet is an essential indicator of a business’s health and stability, it doesn’t tell you much about how they’ve fared over time. So, for example, if you’re looking at two franchises with similar books and financials, but one of them has been around for four years while the other has been operating since say, 1899, it would make sense to choose the latter in this case—even if everything else on paper looks the same.
This information can be gleaned from third-party sources such as Dun & Bradstreet or franchise trade magazines or by visiting the website of the International Franchise Association. Always go directly through your Franchisor before getting this data yourself so that they can confirm that everything is correct and up-to-date. In addition, it is vital that you speak with or meet as many existing franchisees as possible before you make your final decision.

What Are The Brand’s Training Programs And Support?
When you buy a franchise, you’re not just buying the rights to use its brand name. You also get access to training programs, mentoring, and support from the Franchisor. These must be proven and effective; otherwise, it can be challenging for your business to grow or stay profitable.
You want to ensure that your franchisor is committed to your success as a franchisee. That means offering in-person training (the better option) and or using phone or video calls if necessary. It also means regular advice on running your business and what strategies might help you reach more customers or increase revenue.

Review The Franchisor’s Marketing Plans.
A good franchisor will have a written marketing plan in place. The marketing plan should include a social media strategy and details about how the franchisor plans to use the funds provided through your advertising fees. If you ask for this document, they should be willing to share it with you.

Choosing The Right Franchise Brand Can Significantly Impact Your Success.
We’ve talked about screening potential franchise brands above. Still, there are some other factors that you should also consider when choosing where to invest your time and resources.
Tom Scarda goes on to say “We always hear the phrase, “If you love what you do you never work a day in your life.” That is true if you’re working a job. But a franchise is not a job. It’s a business that allows you to build a lifestyle. In the end, the service or product the business provides doesn’t matter. Of course, it must make sense for the community where you will operate and the concept must be something that you understand. However, you can be a vegetarian and own a burger joint. As the owner you are acting as the CEO and CFO, you’re not flippin’ burgers…well you shouldn’t be. If you are doing the tasks that the business requires then you bought yourself a job and your business will plateau and not be scalable. Scarda adds “Don’t buy a business because it has to do with your hobby. If you do, you will no longer have a hobby and you will probably resent the hobby if you’re trying to pay your mortgage with it. Instead, invest in a business that will give you the time and money to enjoy your hobby until your heart’s content.

Conclusion
It is important to consider all these factors when looking for a franchise brand. Some of them, like the fees and term length, are more straightforward than others. But, if you want to be successful in your franchise opportunity, it’s worth taking the time to research what makes each Franchisor unique thoroughly. A good franchisor will have invested in training programs and support systems that will help you understand how their business works.

Tips For Employers & Employees – Effective Job Interviews

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Suppose you have not decided what to offer someone or are still negotiating with the candidate. In that case, it’s best to provide a range rather than an exact number. This gives candidates an idea of what they could make if hired and shows that you are flexible and willing to negotiate.

Tips For Employers & Employees – Effective Job Interviews
By Johnny Day

Introduction
As a business, you want to hire the best employees you can. You want people with the right skills who can help the company reach its goals and grow. But only some people will be a good fit for your organization. In fact, according to one study, about 25% of new hires fail within their first 18 months on the job. At that rate, hiring five employees who fail in their first 18 months at work with your company is like hiring only three people who succeed in that time!
Offer salary range, not a specific number.

Offer a salary range, not a specific number.
Suppose you have not decided what to offer someone or are still negotiating with the candidate. In that case, it’s best to provide a range rather than an exact number. This gives candidates an idea of what they could make if hired and shows that you are flexible and willing to negotiate.

Have a plan for the interview before you go in.
Before you go into an interview, you should plan what you want to ask and what kinds of questions the employer will ask you. You should also have your resume and a copy of the job description. Bring a list of references who are willing to be contacted.

When it comes time for your interview, follow these tips:

* Know what you want to ask. The employer may only tell you about some aspects of the job. Instead, they’ll give out one piece at a time during different parts of the interview process to see if candidates are interested in both the work itself and all other aspects related to working there (e.g., pay).

* Have your questions ready so that if something comes up during or after their presentation or tour—like whether there’s room for advancement—then feel free to ask these things without feeling like an outsider who doesn’t belong!
Explain the company culture to candidates.

* Recruiters, managers, and executives should explain the company culture to candidates. Because culture is a set of values, it’s essential to define them early in the process. The goal is to give candidates an understanding of how your organization approaches its work and what being part of that organization means. It may be helpful for recruiters and hiring managers to refer back to this definition when conducting interviews with prospective employees because it can provide a common understanding among team members if they all use the same language when describing their roles within the organization.

Make sure they know what their duties will be.
Clearly outlining the duties of a job is a must. As a manager, it’s your responsibility to ensure that employees know their position and how a manager will evaluate them. If you’re hiring someone who has been doing this type of work for years, you’ll want to take them through orientation so that they know what you expect. If someone just graduated from school with little or no experience in your field, then I recommend taking some time out of their first week on the job to explain things like:
What is expected of them in terms of output and output quality? (This is usually tracked in metrics.)
How do we measure performance? (These measurements may include customer satisfaction surveys.)

Don’t be afraid to ask them to elaborate on their experience and qualifications.
Asking candidates to elaborate on their experience and qualifications is part of the interview process. Still, it’s also an excellent opportunity to learn more about someone’s personality and character. For example, if a candidate has said they have experience in social media marketing, then ask them to describe the last project they worked on from start to finish. On the other hand, if their resume lists specific projects, ask them what kind of work they’ve done in that area before.
If someone has little professional experience (e.g., a high school student looking for a summer internship), then ask them how they’ve approached learning new skills or subjects outside of school-related activities. For example: “Tell me about a time when you had to teach someone else something.”

Give them time to think about it.
Before hiring, ensure the candidate has time to consider it. Suppose they’re ready to sign on right away. In that case, it might mean that they’ve already taken a job elsewhere and are just trying to be polite by pretending otherwise. It’s also crucial that you give them plenty of time so they can ask questions. They probably have some concerns or reservations about joining your company—perhaps even some reservations about working with you—and those issues need to be addressed before anything goes any further. Finally, once someone is hired, their start date must be pretty close to the future. You want them to feel secure and comfortable enough with their decision that they don’t leave for another position before their first day at work; this would lead directly to lousy employee retention rates later down the line!

Tell them about the benefits package.
Benefits are a big part of the job. Make sure you have a good benefits package and your employees know about it. That way, they’ll feel valued by the company and be more likely to stay with you for extended periods.
What kind of benefits do you offer? Do you offer a 401K? Paid time off? Health insurance? These things all play into how willing someone will be to commit their life to your company—so make sure you’re offering them everything they need!

Ask if they have any questions for you.
If you haven’t already, ask your new employee if they have any questions.
Asking what’s on their mind will ensure you can address any concerns they may have about the position.
This is also an excellent time to make sure they are comfortable with the role and explain more about what it entails so that you can determine if this is a good fit for them.

Use these tips to conduct a more effective job interview that will help your company find and retain the best employees it can find When interviewing candidates, it’s important to be prepared with a plan. An effective interview will help your company find and retain its best employees. It’s also important to explain the company culture to candidates during this preparation process. You should also make sure they know their duties for an effective job interview that will help your company find and retain the best employees it can find.

Conclusion
This is a recap of the tips we’ve given above. If you need to decide which ones to use, mix and match them as needed.

TIPS TO MARKET YOUR RESTAURANT DURING THE HOLIDAY SEASON

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If you plan ahead and get people excited, they will come.
The holiday season is a busy one. People are going to be traveling, and they’re going to be in a rush. Your restaurant may miss out on potential sales if you don’t plan. You can cash in on the holiday season with careful planning and targeted marketing strategies.

TIPS TO MARKET YOUR RESTAURANT DURING THE HOLIDAY SEASON
By: Dom Hemingway

Introduction
For many of us, the holiday season is a time to reconnect with friends and family. For restaurant owners and chefs, it’s a chance to make extra money. The holiday season brings out the best in people—and it also brings out their appetite. So take advantage of this opportunity by creating ways to get people excited about your offering. Here are my top tips for doing just that:

Offer exclusive menu items.
Offer an exclusive menu item. What do you have that nobody else does? If you’re a vegan restaurant, maybe it’s a killer dish made with cashews and lentils. If you’re a steakhouse, maybe it’s the most amazing prime rib ever. Whatever it is, draw inspiration from the season and create something. Get people talking about your place as they post photos of their meals online—and then offer this special only for a short period (say, one month). This gives them the incentive to visit sooner than later and will make them feel like they just missed out on something extraordinary if they don’t act quickly enough!
Use social media to promote the special: Promote your limited-time offer on Facebook and Twitter as well as through local newspapers in print ads or even billboards along significant highways nearby—whatever works best for your budget! You can also use hashtags like “#holidaymenu” or “#christmasdinnerspecial” so that customers can easily find information about what makes these deals so great by searching for them in search engines like Google or Bing when looking up keywords related precisely to those terms.

Offer coupons:
This is another way of encouraging customers. Those customers who might not have heard about your holiday specials yet (or are still deciding whether it’s worth trying out) without having spent much money upfront, hand out paper copies at check-out counters or mail them directly home with customers who order over the phone lines.
Use loyalty programs: Not only does this incentivize repeat customers, but it also helps build brand loyalty since everyone loves feeling rewarded after returning!

Spice up your social media presence:

Social media can be a powerful tool for your restaurant. You can use social media to create buzz about your restaurant, promote new menu items and events, and give customers insight into the workings of your kitchen.
Post photos of your food and happy customers on Instagram, Facebook, or Twitter! It’s also a good idea to create a unique hashtag for your restaurant so that people who want more information about it can find it (for example, #greatrestaurant).
Get festive with decor and holiday-themed dishes
Decorate your restaurant with festive colors.

Offer holiday-themed dishes and desserts:
Offer a special holiday drink special during December, such as hot chocolate or eggnog milkshakes.
Get customers in the mood to be generous by offering gift card promotions, like buy one get one free, where they can buy one gift card at the total price and get another for half price! This also helps you build your customer retention rate too!
The best way to make money off any promotion is when it’s done right—get people excited about returning because they got something great out of it! That’s why we recommend having some loyalty program in place before starting any promotions so that you know exactly how much each customer has spent over time–and thus how much they’re worth (in terms of dollars) based on their average order size at each visit.”

If you plan ahead and get people excited, they will come.
The holiday season is a busy one. People are going to be traveling, and they’re going to be in a rush. Your restaurant may miss out on potential sales if you don’t plan. You can cash in on the holiday season with careful planning and targeted marketing strategies.

Planning Ahead Can Turn a Holiday Season into Profits
Planning for an event like the holidays isn’t just about organizing parties or buying new decorations for your restaurant—it’s about thinking about how these activities will affect your business and how customers will react to them on social media sites like Facebook and Twitter. For example: If you have decided to host an open house party at your restaurant during Thanksgiving weekend (or any other weekend), consider what type of food will be served; whether or not it’s appropriate for children; whether there should be seating available outside; what kind of beverages should be served (alcoholic drinks are subject to varying regulations); how much time people need between eating their meal and driving home safely; etcetera!

Conclusion
A successful holiday season is all about two things: planning and being creative. If you’re looking for additional inspiration, take a look at some of the things we’ve done here at www.frangrow.com We’d love to hear your ideas in the comments below!

FUNDAMENTAL RESTAURANT MARKETING

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You want to create a loyal customer base because these people will tell all their friends about your restaurant and bring them in to eat. Customers are often the best marketers for a business because they love what you do so much that they want to share it with others.

Fundamental Restaurant Marketing
By Gary Occhiogrosso – Managing Partner,Franchise Growth Solutions.

Introduction
Restaurant marketing is a topic often in business classes and career fairs. It’s a common question: “How do you market your restaurant?” The answer to this question can be pretty straightforward, but the process can be challenging. To make sure that your restaurant can attract new customers and keep them coming back, it’s essential that you have an effective plan for promoting your business.

The most successful restaurants are the best marketers.
To be one of those restaurants, you must learn about marketing. Marketing is not a one-time thing. It’s an ongoing process that must be done on a regular and scheduled basis if you want your business to succeed.
The first step in effective marketing is understanding what it’s not: it’s not advertising alone; instead, it’s everything you do to connect with your customers and get them talking about their experiences with your brand. For example, marketing could include social media posts on Facebook or Twitter (that are funny/cute/interesting enough), sharing photos of how great everything looks on Instagram (including food shots), posting videos explaining how something works on YouTube (like how a new dish gets made), offering special promotions such as “buy one entrée at regular price and get another free.
Social media is great for getting the word out about your restaurant. You can use social media to promote your restaurant and get customers to come in, or you can also use social media to get feedback from your customers.

Make sure that every employee is a marketer for your restaurant.
They may not be able to explain the nuance of the menu, but they can tell people about themselves and their experience at your establishment.If you have a host or waitperson, they can talk about how they enjoy working there because it’s such a nice place. If someone asks them if there are any vegan options on the menu or if one of your dishes can be made gluten-free, they can tell them about it without sounding like an advertisement (although most people in this situation probably won’t care).

Make your restaurant an active community member.
As you create your restaurant, it’s important to consider how you want to be perceived in the community. Do you want to be the new hot spot for a specific type of person? Or are you aiming for a more diverse crowd? Will your restaurant have an identity as a family-friendly place or something more upscale and exclusive? The answer will help determine some of the best marketing strategies for you. For example, if you’re looking to attract families with young kids, consider sponsoring local youth sports teams or offering free food at community events like Little League games and PTA meetings. On the other hand, if your target clientele is more on the younger end (say college students), sponsoring an art gallery opening might be right up your alley!
Regardless of who makes up your ideal demographic, make sure they know where they can find good food in town—and make sure those other businesses know about yours too!

Engage with your customers through social media and online reviews.
Social media can be a great way to engage with your customers and hear what they say. In addition, you can use social media as a platform for interacting with other businesses in the community.
Here are some tips for responding to what your customers are saying online:
* Respond quickly if someone has posted an unfavorable review of your restaurant on Facebook or Yelp. Be sure to thank them for their feedback and explain how you will use it to improve the experience in future visits.
* Respond quickly if someone has posted a positive review about their visit to your restaurant – especially if there’s an opportunity for follow-up questions or inquiries about the experience (i.e., “What was your favorite dish?”). Use this opportunity to connect with customers who’ve enjoyed their visit!
*Listen to your customers’ feedback online and in person.
* Respond to customers’ comments.
* Be transparent with your customers.
* Be honest, even if it’s difficult for you or the company, because honesty is the best policy for maintaining a good reputation as a business that cares about its community and its employees.

You may not always agree with every comment made by every customer. Still, it’s vital that you engage in conversations where both parties are listening respectfully instead of arguing back and forth about what is right or wrong.

Creating a loyal customer base is a great way to grow your business.
You want to create a loyal customer base because these people will tell all their friends about your restaurant and bring them in to eat. Customers are often the best marketers for a business because they love what you do so much that they want to share it with others. The more loyal customers you have, the more people will want to come to your restaurant and spend money on food and drinks there—and that’s good news for your bottom line! If you keep giving them what they want (like delicious food at affordable prices), those same loyal customers will keep coming back again and again—and bringing friends along with them.
The key here is ensuring those loyal customers feel appreciated by rewarding them with something special now and then—like free meals or exclusive coupons only available through their email address or phone number.

Conclusion
As you can see, restaurant marketing is more than just putting up a few ads and hoping for the best. It would be best if you were willing to invest in your business, ask for customer feedback, and engage with them online. The most successful restaurants are the ones that put their heart and soul into their marketing efforts.

MANAGING PART-TIME EMPLOYEE SCHEDULES

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There are several reasons why shift scheduling is a critical part of managing your workforce. For one thing, if you have part-time employees who aren’t able to work every day that you need them, it’s vital that you have some system for organizing their schedules. In addition, consistency will help make things easier for everyone involved.

Managing Part-Time Employee Schedules
By Dom Hemingway

If you’re managing a part-time employee schedule, you know how important it is to be organized and prepared. Managing a part-time employee’s schedule can be tricky because you must keep your team member’s other priorities in mind and ensure that their work hours fit into those priorities accordingly. These priorities may include school, taking care of children or an elderly parent, and another part-time job. It’s essential that your employees can balance multiple aspects of their lives while still working for your company successfully!
Here are a few tips to consider:

Know Your Labor Needs In Advance
First, consider the business’s needs and how many employees you will need to cover the shifts. Next, consider how many shifts you need to cover each week and month (not just in specific time slots). Finally, be sure that all your available times are covered.

An excellent place to start is by creating standard templates for when employees will be working each week (e.g., every Monday afternoon). In addition, these templates should include what shifts are available and any special days off that might change weekly (such as holidays). Once set up, these templates let employees know their schedule via phone or other digital notification so they can plan accordingly!

Use A Scheduling Tool
A scheduling tool can help you organize your employees’ schedules, set up shift swaps, and more. There are numerous scheduling tools used by companies like Google, Red Bull, Spotify, and LinkedIn. Using A Scheduling Tool Is Simple. First, set up templates for days off and specific shifts (like the weekend). Next,use those templates as needed by dragging them onto the calendar view. Templates allow you to see your schedule at a glance so that you don’t have any surprises when it comes time for each person’s next shift. Include Shift Swaps. Shift swaps allow employees to trade shifts with each other. Swapping a shift is a great way to balance work and personal life, prevent burnout, and get the days off you want. If you have an employee self-scheduling system, it will also help avoid turnover by allowing employees to pick their schedules.

Managing Days Off
The first step in creating an employee schedule is to set up templates for each day off. You can do this by setting up a template that applies a specific day off for each employee. If you have more than one part-timer working simultaneously, ensure their days out are consistent, so they don’t conflict. Also, when setting up their days off, consider their work schedule and personal life—not only will this make things easier for them overall, but it’ll also ensure that they can attend family events or plan fun activities outside of work! Finally, if an employee is sick or needs time off during the week, consider how long they’ve been working before approving any requests. This flexibility will help ensure they get enough time away from work while still staying productive at home without having too much downtime.

Let Employees Select Their Shifts
It may be a good idea to allow employees to select their shifts. Self scheduling gives them the freedom to choose when they want to or can work, which can help them be more productive at work and happier overall. Many part-time employees also have multiple jobs and might need a schedule that works with another. For example, let’s say you have an employee who is also a freelance writer; he might need his schedule to include Friday off, so he has time to write articles for other publications. Allowing him to switch shifts with other employees in your organization makes it possible for him (and others) who may need this flexibility to have multiple jobs simultaneously! To ensure your part-time employees are scheduling themselves most efficiently, it’s important to know your needs before you begin.

Employee self-scheduling is a great way to reduce employee turnover and keep employees accountable for their schedules.
Employees pick their shifts based on availability and job needs with self-scheduling. This method also allows you to see how many hours each employee works, which can help you track attendance and make sure they’re adhering to policies regarding overtime or sick days.

Create Weekly Schedules At Least A Week In Advance
The weekly schedule prepared in advance is the best way to track employee hours and manage payroll. It also helps you plan by clearly showing the shifts to be covered according to sales and other projects.
Employees can quickly see how much time off they have next week, making planning life events easier (and more likely).
Managers can see what projects are due around the same time or when an employee will be out sick or on vacation. They can also use this information to choose who should help cover each other’s shifts if someone suddenly needs time off unexpectedly.

A Consistent Scheduling Process Is Critical
There are several reasons why shift scheduling is a critical part of managing your workforce. For one thing, if you have part-time employees who aren’t able to work every day that you need them, it’s vital that you have some system for organizing their schedules. In addition,consistency will help make things easier for everyone involved. For example, employees can plan their personal life around this schedule. In addition, employers can ensure that they always have enough employees working during each shift.You will also be in a better position to manage labor costs by scheduling team members in advance and according to projected sales for the week.

Additionally, if your company has full-time employees with varying schedules—such as those on-call or night shifts—it’s important to keep track of how many people you schedule during any given time. For example, suppose one employee misses two days in a row due to illness. In that case, it might be necessary for another coworker with flexible hours to cover those shifts instead, so nothing falls through the cracks!

Conclusion
Finally, an organized schedule will make things easier for everyone involved in ensuring there aren’t any scheduling conflicts within teams or departments because everything has been planned out ahead of time rather than being handled on an ad hoc basis.”

When managing part-time employees, it’s essential to consider their needs in advance. After all, they’ll be working with you regularly. Hence, you want them to feel comfortable and empowered in their work environment.