modern franchise magazine march 2012

®

Why FranchiseSuccess Comes

Down To Location

M A G A Z I N E

FranchiseOpportunities

forMumpreneurs

March 2012

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What’s in this month’s Magazine?

Regular Features

Page 4: Welcome

Page 8: Franchise Focus

6: Modern Franchise

Special Features

Page 6: So You Think You Can Dance?

Page 14: Franchise Success Comes Down toLocation

Page 20: Why Don’t All Franchisees Performto the Same Level?

Page 24: The Buck Stops With You

Page 36: The Hidden Reason Why SomeFranchisees are Unhappy

Page 46: What Does it Take to Become aSuccessful Franchisee?

Page 58: How the Internet Effects theFranchise Industry26

24

Profiles

Page 8: fasset

Page 28: MPH

0: Empowerkit - Franchise Websites

Articles

Page 10: Benefits of Franchising YourBusiness

Page 16: Franchise Satisfaction Dipping

Page 18: Should we Stop Employing FatWorkers?

Page 30: 5 Steps to Finding the Right Franchise

Page 32: Dysfunctional families Don’t JustHappen at Home

Page 42: Franchise Opportunities For Women

Page 48: Is Bigger Better?

Page 58: Finding the Most Profitable Franchise

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M A G A Z I N E

Modern Franchise Magazine | 3

Sales & Marketing

Content is no longer king - it is nowmaster of the universe - this month weinvestigate How the Internet isEffecting F ranchises.

Chris Anderson also tells us moreabout the Secrets to SuccessfulFranchise Websites

Much is written about franchisesuccess, but in the end FranchiseSuccess Comes Down to Location

Franchising Your Business

Franchising offers significantadvantages compared to other formsof business development, but it isn’t foreveryone. We take a look at TheBenefits of franchising yourbusiness

Looking for a franchise?

Mark Fernandez from BDA looks atthe impact becoming a franchiseecan have on the lives of you andyour family.

We look at the “5 steps to findingthe right franchise” and “how to findthe most profitable franchises”.

Kristin McNicol also looks intofranchise opportunities formumpreneurs.

With increasing consolidation offranchise networks likely in 2012,we ask “is bigger better when itcomes to franchises?”

We also look at some of the“Franchise Myths and Misconceptions”Why when considering a franchiseyou should always look for “ASustainable Franchise BusinessConcept or Walk” and “The Hiddenreason why some franchisees areunhappy”

Franchise Management

The franchise relationship is onebuilt on mutual trust and giving eachother our best. We look at how tobuild trust and a stronger franchiseculture.

With the changing workplacedemographics, and insurersconcerns about the health of older,overweight and unfit workers,Joanne Solis asks “should we stopemploying fat people?”

Franchise systems can be a bit likea family. But we found out that“dysfunctional families just don’thappen at home.”

Franchise success is reliant onfollowing proven systems andprocesses, but sometimes“demanding compliance can costmore than it’s worth. “

Features

In “franchise focus” we talk tofasset about their social enterprisefranchise and how they plan tochange the way we look atbusiness.

Michael Polo Homes have nowrecruited 5 franchisees to theirnetwork. In the past 8 months sincepartnering with Maxiom and ModernFranchise Magazine. We talk totheir CEO about the challenges offranchising a new business andwhat the future has installed in“Modern Franchise”.

And we also look into what it takesto be a successful franchisee…

There are also a number a reallygreat franchise opportunitiesadvertised!

Siimon Reynolds is also holdingStrategic Entrepreneur eventsaround the country. Be sure todownload his new ebook “How toAttract New Customers Quicklyand Easily” from page 15. It’sabsolutely free and has some greattips even the most seasonedmarketer will find valuable.

Enjoy the magazine. All feedback isappreciated. Visit our website at:

www.maxiom.com.au

Welcome to the March 2012 Issue of Modern Franchise Magazine.

Franchise success is what everyone in franchising strives for. Meetingfranchisee expectations can be challenging. In this issue we look at what ittakes from the franchisor and the franchisee to get the best results for both.

The Modern Franchise with Mark Matthews

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So your about to be afranchisee?

Well let’s hope that you haveevaluated the franchise systemand satisfied all the key areasthat will keep you dancing in thesystem you have chosen.

This decision will have a largeimpact on the lives of you and allmembers of your family.

Whether it is a mobile domesticservice such as Lawn Mowing,Car Detailing, or a retail basedbusiness in a suburban orregional shopping centre, youshould conduct a detailed andthorough evaluation of thatfranchise to ensure that it is thebest opportunity for you and yourfamily.

Some key areas of yourreview should cover:

The Concept – is itproven?

Consider the Franchisor’sManagement Team

The content of theOperations Manual shouldcover all the ‘day to day’activities of running thebusiness

The Market - theorganisations marketshare and competitoranalysis

The Future – what are theexpansion and businessplans?

Franchise Agreement andDisclosure Documents –get expert advice fromfranchise advisors.

You may feel like you aredancing with wolves at times, butknowing the right questions toask will keep you from trippingon your two left feet!!!!

Ask these further questionsof the Franchisor:

How experienced is theFranchisor?

What's the track record ofthe franchise?

What has the growth ratebeen for the past threeyears?

Is the Franchisorfinancially sound?

Can you check from theDisclosure Document?

Can your accountant talkto theirs’?

What are the growth anddevelopment plans for thenext five years?

Is any deposit that youpay to the Franchisorrefundable?

Does the Franchisor haveenough experience withinthe organisation toprovide worthwhileongoing support?

Is there sufficientadvertising?

Does the Franchisorcontribute?

Is training provided -initially and later?

Who pays?

How good is the training?

Is there a uniformperformance monitoringsystem?

How do I know that the franchise system I am buying into is viable in themedium to long term? By Mark Fernandez

SO YOU THINK YOU CANDANCE?

maxiom6 | Modern Franchise Magazine

What are thearrangements forproviding field support?

How many outlets arethere?

How many are company-owned?

How many failures havethere been? Details?

Can I contact existingFranchisees of my ownchoice?

Are they a member of theFCA – Franchise Councilof Australia

Hopefully, the franchise that youhave chosen passes yourevaluation process and thelessons learnt along the way willhelp you choose the right danceinstructor that will take you to theNationals.

The key is to find out if theinstructor you have chosen canactually dance the Waltz,Quickstep and when requiredthe Rumba as there willinevitably be different tunesplaying over the next 5 - 10years that will require differentexpertise.

It’s no good if all they know is theMacarena!!!

Mark Fernandez is aDirector at BusinessDevelopment AllianceFor more information onfranchising please visit ourwebsitewww.bda-online.com.au

Or email Mark at

[email protected]


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1. So what is fasset all aboutexactly?

asset is a hybrid organisation,a social enterprise that bringsabout social change throughmarket-focused businessactivities.

We understand thatdisadvantage will not beaddressed until wealth isspread more evenlythroughout our community.

That is why we have createdthis social enterprise - toprovide employment, training,skills and businessopportunities to those whoneed them most.

fasset believes largeintractable social problemsare borne out ofdisadvantage. That's why wework towards a creative,large-scale response.

Our service industry socialenterprises are dedicated toproviding a supported

pathway to long termemployment and wealthcreation for people both youngand old from a diverse rangeof backgrounds.

We combine social supportwith industry training,employment and businessopportunities across a widevariety of sectors.

We offer customers the chanceto participate in this exciting andrewarding change, whilebenefitting their own lives andbusiness.

2. How what is a socialenterprise?

Social entrepreneurship isabout innovative, market-oriented approachesunderpinned by a passion forsocial equity andenvironmental sustainability.

Ultimately, socialentrepreneurship is aimed attransformational systems

change that tackles the rootcauses of poverty,marginalization, environmentaldeterioration andaccompanying loss of humandignity.

The key concepts of socialentrepreneurship areinnovation, market orientationand systems change.

fasset is about creatingopportunity, a sense of selfworth, dignity and increasingwealth for disadvantaged peoplefrom all walks of life.

3. Hoe does franchising fitinto a social enterprise?

We believe that any response todisadvantage has to becoordinated and scaleable.Franchising is the perfectbusiness model for this type ofsocial enterprise.

It gives people a job opportunityso many desperately need, tolearn, build their skills, and theopportunity to work towardsowning their own business.

THE SOCIAL ENTERPRISEFRANCHISEFasset is a new kind on social enterprise - one that is scaleable - creatingjobs, opportunity and wealth for the disadvantaged in our communities.

franchise focus

24 | Modern Franchise Magazine Modern Franchise Magazine | 9maxiom

Empowering Communities - Unleashing Potential - Creating Enterprisefasset

4. How does fasset hope toaddress disadvantage viafranchising?

Social entrepreneurs are driversof change. Together withinstitutions, networks, andcommunities, socialentrepreneurs create solutionsthat are efficient, sustainable,transparent, and havemeasurable impact.

There are many ways in whichyou can become a supporter offasset and help drive this changeto a better society. One of theseis to become a supporter offasset, either financially, throughtraining, becoming a franchisepartner or even volunteering.

By building a strong network ofdedicated social entrepreneurswe are helping people fromdisadvantaged backgrounds tobuild a better life for themselves,build wealth and create a moreequitable society. Our franchisemodel starts with employmentopportunities and builds tofranchise ownership, so withtraining and some hard work wecan help anyone, regardless ofeducation and financial positioncan become a successfulbusiness person.

5. What type of franchisesdoes fasset offer?

We have decided to concentrateof service franchises and foodfranchsies as this is where thedemand is and it offers peoplethe best opportunity to workthrough the ranks to become afranchisee as there are no highlyspecialised skills or educationrequirements required.

5. Do you think you will face abacklash from existingfranchisors by offering whatis in effect free franchises?

Actually the opposite hasoccured. We have had a greatresponse from the franchisesector.

We have had several enquiriesfrom existing businesses thatwant to particpate in this socialenterprise model.

6. So how does someonebecome involved with fasset?

That will depend on whatinvolvement they want to have.My best advice is to visit ourwebsite and decide if socialentrepreneurship is right for you,then contact us and we can havea discussion about how you canbecome involved. You cancontact fasset at:

www.fassetsocialenterprise.comor email us

Empowering Communities - Unleashing Potential - Creating Enterprise

http://www.moshpitcollective.com.au

http://www.fassetsocialenterprise.com

mailto:[email protected]


maxiom10 | Modern Franchise Magazine

Owning a successful business ismore than just about makingmoney; efficient planning andstrategy are needed to besuccessful.

The option of staying a small, lowgrowth business is not appealingto most entrepreneurs. Simplyput, most businesses that fail togrow faster than the cost of livingincreases end up going out ofbusiness, which is why there issuch a high failure rate of smallbusinesses.

Business expansion can bedone in different ways but themost common strategy forsuccessful smaller businesses isvia franchising.

Franchising is appealing to manyhighly innovative and ambitious‘fast’ growth businesses - SMEswith rapid growth potential andlarger companies that realise thevalue of reinvention throughfranchising to stay ahead.

The Franchise Council ofAustralia defines franchising as“a business relationship in whichthe franchisor (the owner of thebusiness providing the productor service) assigns toindependent people (thefranchisees) the right to marketand distribute the franchisor'sgoods or service, and to use the

business name for a fixed periodof time”.

Franchising has the potential togreatly increase the parentcompany’s revenues and profits.The parent company provideslicenses to other businesses forselling their products andservices.

One benefit of franchising is thelower capital requirement. Ratherthan opening a second orsubsequent operation(s),franchisors can limit their costsby granting franchises to othersto open the new operation underthe franchisors business nameand using their successful andproven systems.

Once a franchisee acquires thenew operation, the franchisor willonly need to pay for training andadministrative aspects.

Franchisees will be responsiblefor financing the rent, staff, andall other aspects of the business.

However, depending upon thebusiness, franchisees may needto have a significant amount ofcash at hand before they canacquire the franchise.

Although they may pay an up-front fee, franchisees will beassisted by the parent company.

at the start of the business. Thisincludes arranging the leaseagreements, design and fit-out ifthe franchise operates from apremises, and marketingstrategies.

Another benefit of franchising isquicker growth and expansion.With a much lower level ofinvestment, franchisors can drivethe growth and development oftheir company. This allows thefranchisor to open in newmarkets and as the franchisenetwork grows all the franchisesbenefit from the increased brandawareness, brand penetrationand economies of scale.

Reducing overheads for both thefranchisor and franchisee, growththrough franchising has much tooffer all participants in thefranchise network.

Another strong benefit is thatfranchisors themselves becomepart of a larger network that hasstrong industry support andaccess to a wider pool of talent,expertise, advice and strategicsupport than would otherwise beavailable to a smaller orindependent multi-branchbusiness.

For the franchisee, this methodof business expansion is easierand with far lower risk thanstarting a business from scratch.

Quite a lot of well established businesses are faced with the issue of how todevelop their business further than its current potential. By Jaz Campbell

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EBooks, Whitepapers & Reports - Create valuable and timelyindustry leading information to share with your audience. Maxiom looksafter the content, hosting, technology and reporting.

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When it comes to franchiseopportunities, there are hundreds tochoose from. Everything fromrestaurants to senior care tochildren's franchises is available.

However, one of the mostimportant things to consider whenchoosing a franchise to purchaseis location. It does not matter whattype of franchise you areconsidering, you will need to dosome research on thedemographics of your area to makesure that it is a good fit. Otherwise,it is possible that your business willfail, even with the support you getfrom the franchise.

LocationThe most important thing toconsider for any of the availablefranchise opportunities that areavailable is location. Location isone of the most influential factorswhen it comes to determiningwhether or not your business isgoing to succeed. A qualityfranchisor will offer to protect yourterritory from any type ofcompetition within their system.

This means that they will not allowanother person to purchase andpursue a similar franchiseopportunity within a certain areaafter you become one of theirfranchisees.

This protection may be throughtracking potential customers basedon post codes or another type oftracking system.

Remember, exclusive rights to thearea are a large part of what youare paying for when you areconsidering franchise opportunities.You are also buying a business thathas an established credibility,experience in the area, and thepower of numbers.

Definition of ExclusivityDifferent companies offer differentdefinitions of exclusivity to theirfranchisees. However, if you areseeking a franchise opportunity it isimportant that you insist that thecompany does a complexdemographic research.

Franchisors should provide youwith more than the population ofyour area and the per capitaincome. You need to be smartabout your purchase and insist thatthe company provide you withdemographics that are detailed inregards to the specific businessmodel along with the product orservice that you are planning toprovide.

For example, let's say there is afranchise opportunity available in ahigh population market that has alarge number of high incomeprofessionals that are somewhatyoung. This sounds like the perfectsituation, but what if the franchiseis a senior care service.

If the franchisor can provide youwith demographic research thatshows a market to support thebusiness, even if the geographic

location is not in a large populationarea, this could be a betteropportunity.

Take Your TimeThe most important thing to dowhen considering franchiseopportunities is to take your time.

Dig deep into the information that isprovided about the community orarea that you are considering foryour franchise. Remember; thinkoutside the box when it comes todemographics. Also consider thepsychographics. These are whatmotivates customers to buy yourproduct or service.

Consider your competition and anyfuture competition you are likely tohave in your territory and how theywill effect you, or if you will have acompetitive advantage over them?

Really determine what type ofpeople are going to be using theproduct or service provided by yourfranchise and if they will supportyour business. Just because youare located in a busy shoppingcentre doesn’t mean people willbuy from your franchise. Whereyou are located within the centre,how many people who visit thecentre who actually want yourproduct or service and yourcompetition will all effect yoursuccess. If you take the time tostudy the demographics and thelocation that is being considered,your franchise is much more likelybe a success.

When it comes to franchise opportunities, there are hundreds to choosefrom. Everything from restaurants to senior care to children's franchises isavailable. Success comes down to may factors. Location though can be thekey!

FRANCHISE SUCCESS COMESDOWN TO LOCATION!

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...If you're 40+ you mightremember the "Grim Reaper ad."Siimon was the creator of thatcampaign and it launched him intoa successful journey ofentrepreneurship in this country.

He knows what it takes to besuccessful and you'll love the ideasthat he shares in this bite-sizedbook.

Siimon is an incredible successstory and responsible for many ofAustralia's major business brands.

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FRANCHISEE SATISFACTIONDIPPING

With the enormous amount ofinformation about franchising and aseeming endless number ofdifferent franchise sector reportsout there it is becoming moredifficult for potential franchisees tofind valuable information that isdirectly relevant to their franchiseresearch.

A new franchise sector report haspainted the franchise sector as onein need of a major refresh, both inits’ business model and its’ brand.Similarly a recent report into thesector by Korda Mentha also foundthat “inherent weaknesses in thefranchise business model” wereresponsible for under-performance,Australia is effectively“oversupplied” with franchises andan industry undergoing change,with more franchisor consolidation(mergers or acquisitions) likely inthe coming year.

So what confidence can aprospective franchisee have whenconsidering investing their hardearned dollars in a franchise?

Well, it seems from the Goodesreport, that this depends on thefranchise itself. Without getting intospecifics about individual franchisesystems, these reports clearlyfound that some franchisebusiness models are simplydesigned to prop up franchisorearnings, share prices and satisfythe requirement of venturecapitalists and private equity firmsat the expense of franchisees.

Attacks by former leadingfranchisor executives such asformer McDonalds senior executiveMerrill Pereyra on certain franchiseprofit models won’t giveprospective franchisees anyconfidence, nor will it help thosefranchisees that have alreadyinvested in these systems anyheart.

Another disturbing fact reportedwas the failure of franchises thattopped the Topfranchise.com.aufranchise satisfaction ratings. In2009 Souvlaki Hut was rated byTopfranchise as the number onefranchise. By late 2010 thisfranchise had fallen intoadministration with poor sales,threats of litigation and highnumbers of disgruntled franchiseesblamed for the collapse.

Something else that was notedfrom the reports worth discussingwas what on the surface looks likerelatively low levels of disputesacross the wider franchise sector.

A closer look into this paints adifferent picture. Last year theACCC received a record 600complaints from franchisees. TheFranchise Council of Australiaconcedes that between 2 and 3%of franchisees are in seriousdispute with their franchisor. Thismeans that litigation is involved.

Given that the average term afranchisee remains in a franchisesystem in Australia is 7 years, thismeans that with approximately

69,000 franchisees across thesector, that franchisees that havetaken to complaining to the ACCC(which is really the last resort of themost disgruntled franchises) isrunning at closer to 6% during theaverage franchise term. And withserious disputes running at 2 - 3%at any one time, this means thatdispute rates could exceed 20%over the same 7 year averagefranchise term.

Now while some of the seriousdisputes are amicably settled andothers run longer than a year whichwill reduce the total percentage,this is still a very high number ofcomplaints and disputes whenmeasured over the averagefranchise term.

And according to the FranchiseAustralia report conducted byGriffith University, roughly 1000franchises per year cease tooperate or are not renewed.

And of course all this is just fuel tothose wanting to see tougherfranchise regulation and penaltiesimposed. It also supports theargument of many in the franchiseindustry that are saying the industryis in need of reform and thefranchise business model must beimproved to ensure long termfranchisee viability.

Measuring franchise success andsatisfaction over the entirefranchise term is the only true wayof determining which franchise isthe top franchise.

The arguments over franchise regulation, increasing and more heatedfranchise disputes are having an effect on franchisee satisfaction and thegeneral confidence in the franchise sector according to a new report.

maxiom16 | Modern Franchise Magazine maxiom


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When you want someone to deliver the “Goodes”for your business.

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maxiom18 | Modern Franchise Magazine maxiom

With more and more peopleremaining in the workforce longer,the health, well-being and fitness ofemployees is now under scrutiny.

The poor performance ofsuperannuation funds, share andproperty markets and with uncertainoutlooks across all these areasmany older Australians areconcerned about their retirementincome and maintaining theirlifestyles. Changes to pensions andthe tightened availability of othergovernment benefits means thatthe average Australian will worklonger, harder and with less return,remaining in the workforce longpast the traditional retirement age.

Unfortunately, with our moresedentary and affluent lifestyles,many older Australians are gettingfatter and sicker. With Australia’srate of obesity, overweight andunder-fit workers skyrocketing,insurance companies areincreasingly becoming concernedabout the potential risks to suchemployees and their workcolleagues, particularly whereoperating machinery, heavy lifting ormanual labour is involved.

The medical evidenceoverwhelmingly shows that agereduces the muscle strength, bonedensity and cognitive function thatrelates to people's physicaljudgement.

Furthermore, the health statisticswarn that those people working inmanual handling and heavy industry

are demographically likelier to havehigher levels of health problemssuch as diabetes and excessiveweight. They also often have riskierlifestyle factors, such as poor dietand limited exercise, in respect totheir health.

So why are insurers worried? Wellit simply means that people whoonce could work safely are nowcontinuing to work when it is notsafe to do so.

Health economics shows that thereis almost twice the number of tripsand slips for people in theworkforce aged over 50 years ofage compared to those who arebetween 18 and 25. The evidencefurther reveals that the longevity ofinjury for people who make claimsfor workers' compensation issignificantly higher in the older agebracket. None of these figuresshould be surprising. They reflectthe medical reality of what happensto people.

Australian industry, however, hasfailed to recognise this impendinginjury epidemic to our olderworkforce. You simply cannot ask aperson of depleted capacity to dothe same work when it involvesheavy lifting or repetitious work thatexposes the person to joint and softtissue damage.

Those working in industries suchas manufacturing and health aremoving inexorably towardsdamage. Strangely, althoughemployees have job descriptions,

employers have not taken the timeto develop appropriate task analysisnor conduct regular healthassessments to determine ifemployees can undertake thosetasks.

Although more mature workers holdthe intellectual property, skills andexperience necessary for businessto profit, the failure to analyse theircapacity to undertake duties meansthese particular talents are at risk ofbeing lost through injury.

So what Must Employers Do?

1. Employers must immediatelyundertake an accurate taskassessment of all job descriptionsto determine the physical andmental capabilities required to dothe work.

2. They must introduce a healthassessment process thatdetermines if particular employeescan undertake the work.

3. They must then look at re-engineering their business to keepthe requisite knowledge, skills, andintellectual property within thebusiness but ensure that people arenot placed at risk of injury.

Age discrimination simply doesn’tcome into it. Employers will have toredefine job descriptions to suitemployees capacity to safely fulfiltheir duties. Failure to do so couldhave catastrophic consequencesfor your employees and yourbusiness.

If Occupational Health and Safety wasn’t already confusing and burdensomeenough, now employers must start to monitoring their employees weight,physical and mental fitness. By Joanne Solis

SHOULD WE STOPEMPLOYING FAT WORKERS?

maxiom Modern Franchise Magazine | 19maxiom

SPECIALISTS IN WHSMANAGEMENT AND TRAINING

WHS (OH&S) CONSULTANTSPROCDURE DEVELOPMENT & TRAININGRECRUITMENT OF WHS PERSONNELWHS AUDITSCHANGE MANAEGEMENT SOLUTIONSMANUALS AND POLICIES


A key element of successfuloutsourcing is concentrating onthe business functions that matchyour “unique ability” which allowyou to work “in the zone”.

What this means is that foryourself, your employees andfranchisees that you can improvethe odds of being in your “zone”by matching jobs, challenges andgoals to your skill level. You canalso get into your “zone” byincreasing your skill level.

The concept of being in the“zone” is discussed in the bookDeveloping Personal Leadershipwritten by Rex Houze. Houze is aleadership development coachand the former president of a USbased franchise company.

The article in OutsourceResource Magazine is alsoparticularly relevant to anyonewanting to franchise theirbusiness.

You can read the full article byclicking the following clink:

The message is clear andsimple. Once you have workedout the unique ability that isrequired to be successful in yourparticular franchise then all youhave to ask is “Will the franchisemeet the franchisee’scapabilities?”

For new franchise recruits, thequestion is do they possess theunique ability required to be atop performing franchisee whocan work in the “zone”. The samesystem can be applied tofranchise staff and contractors.

According to Houze, people canbe described as being in their“zone” when they appear to beworking effortlessly and gettingoptimum results. When a task orjob challenges a person’sabilities, the opportunity to be inthe “zone” exists. Whenchallenge is low and ability ishigh, the person may becomebored, distracted, and have atendency to be sloppy or makemistakes. When a challenge isabove a person’s skill level, itcan cause stress, frustration andtension, which leads to poorperformance.

In every franchise system, themost successful franchisees –the best franchisees – work“effortlessly” and they get“optimum results.” The problemis, in every franchise systemthere are always too few of thesetop performing franchisees.

Even with sophisticatedfranchisee recruitment modelsand ideal franchisee profilesmany franchisors are stillstruggling to recruit the topperformers. “Why is that so?”

Well it is most likely because thefranchise recruitment team hasn’ttruly identified the unique abilityrequired to be a top performingfranchisee, who shares the samevision and goal as the franchisor,loves their business so muchthey would operate the franchisefor free - other than they havebills to pay. So who gets theconcept of unique ability? Mostfranchisees don’t.

If some franchisees can work“effortlessly” and get “optimumresults,” how come allfranchisees can’t do so?

In the December issue of Outsource Resource Magazine we ran an articleabout the methodologies of outsourcing for optimum results. There are someexcellent lessons that can be applied to franchising utilising the samestrategy and processes.

WHY DON’T ALL FRANCHISEESPERFORM TO THE SAMELEVEL?


If only franchisees were all alike.And there’s the problem! Not allfranchisees are created equal.

Many (and in some franchisenetworks, most) franchisees arenot prepared to be franchisees.They love the idea of self-employment. They’ve got adream. They are aspirationaland want to be successful.They’re ready to beentrepreneurial. They’re ready tobuild their own business. And soon and so on and so on . . . andthey purchase a franchise andthe next thing you know they’remiserable. They’re working 24/7.No one wants to be around thembecause they’re negative andgrumbling all the time. They’realmost out of money. Thebusiness isn’t what they thoughtit would be. The franchisor isn’tall that helpful anymore. And lifesucks.

What happened?

Houze’s answer is that either thefranchisee is bored, or thefranchisee is in over his head.

The better question is: Why didthat happen?

Houze answered that question,too. The franchisee is notworking in his “zone”.

The franchise doesn’t match theunique ability of the franchisee(And - I’ll add this - the franchisorisn’t doing anything to help thefranchisee understand how towork in the “zone”).

Three reasons explain why thisoccurs.

1. Because neither thefranchisor nor the franchiseerealized the importance ofaligning talents, values and skillswith operational challenges. Notall franchisees want to do, or cando, the same type of work. Andnot all franchisors do a good jobof helping franchisees improvetheir skill sets.

2. Because the franchisee didn’trealize – or didn’t want to hear –that he can’t do everything oranything he wants. Some peopleare better than other people atdoing some things. It turns outit’s important to know what youcan do well and want to do well.Your “unique ability”.

3. Because the franchisor didn’trealize that not all franchiseesare created equal - they’re not allgoing to perform exactly thesame way unless they’re allexactly the same way! And theynever are.

However, some of them are verysimilar, and it’s the franchisor’sjob to find those people (andcontinually help them to improvetheir skills). Find the franchiseprospects whose “unique ability”match the franchise and who canwork in the franchise “zone” andthe franchise network will includemore people who “get it” andfewer that don’t.

If you’re buying a franchise, writedown what your unique ability is,what it is you excel at and lovedoing (and would do for free ifyou didn’t need the money)before you start looking for afranchise, then find out if you canwork in the “zone” of thatfranchise business you areconsidering.

If you’re selling franchises, it’syour job (and responsibility) toidentify the “unique ability’required then find (and prepare)the franchisees who will prosperwhile working in the ‘zone”.

And that’s also how you candevelop personal leadership,whether you are a franchisee ora franchisor.



When looking at a potentialfranchise, determining whetherthe business concept will besuccessful in the long term is vitalto your business success.

Occasionally, some businessesthat are based on a fad orgimmick end up beingfranchised, as the owner thoughtit might be a good idea.

Look into the history of thefranchise, how long it has beenestablished and if the system hasbeen proven across differentmarkets over time, during goodtimes and tougher times.

We often see businesses basedon gimmicks such as a nightclub, where customers ordereddrinks in syringes or drips andsat on hospital beds or wheelchairs, businesses based on agimmick generally go out ofbusiness - just like that one did.

There are a range of businessesthat pop up based on themes orgimmicks such as vampires orthe latest fad however they justdon’t last.

Market fit and ability to attractthe right franchisee

Almost any business can befranchised, but most should not.

Not every business has asustainable concept and point ofdifference that will make it uniqueenough to stand out in the marketbut attractive to potentialfranchise investors.

For instance franchising a tattoostudio could be difficult. Thishighlights two key elements of asustainable franchise concept -market fit and ability to attract theright franchisees.

Tattooists need to be artistic withgood hand-eye coordination.Apart from the obviouschallenges of trying to trainsomeone in the art of tattoo,those who’ve already mastered ittend to have their ownbusinesses.

Therefore they are unlikely towant to join a franchise, and ifthey do join there is a highpossibility they won’t follow thesystems as they’re used tohaving their independence.

Proof of franchise businessconcept

The majority of franchisorsoperate their businesses for atleast 3 years before franchising,and while there will always beexceptions, it’s important youprove your business issustainable before franchising

In Australia, the largest 10% offranchisors, control over 70% ofall franchise outlets andoperations.

This is evidence that manysmaller franchise systems arebased on unsustainableconcepts, particularly if they havebeen franchising for a while andhave no or very few franchises.Sometimes the business is veryreliant on the owner themselvesand as such can not be easilyreplicated and isn’t scaleable -two of the key components of asuccessful franchise.

Some businesses such as thoserequiring a high degree oftechnical knowledge are alsoless likely to be successfullyfranchised

Due diligence

According to the franchiseCouncil of Australia, almost 10%of franchisors ceased to operatebetween 2008 & 2010. KordaMentha reported in Feb 2012there is an oversupply offranchises in Australia withconsolidation likely to increasethis year. So when it comes todue diligence franchisors areequally responsible for ensuringtheir business is fit for franchisingas a franchisee is in ensuring thefranchise is the right fit for them.

A SUSTAINABLE FRANCHISEBUSINESS CONCEPT OR WALKWith literally thousands of franchises in business today, how can youdetermine which franchises have a sustainable business concept?


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It's something that people in generalno longer have for politicians,business men and women, andentire industries, such as banking,oil & gas drilling, and maybe nowfranchising?

Former US President, HarryTruman had a sign on his desk thatread, "The buck stops here." Yet,today the buck usually gets passedto someone else. Few are willing toaccept any responsibility for thestate of affairs. Even in theirbusinesses, it's not uncommon tohear owners speak in a derogatorymanner of their customers, the verypeople who enable them to be inbusiness in the first place.

Trust. It's one of those things thatmost everyone would like toexperience again, but few arewilling to begin the process. Whatis the reason for this?

It's probably because of the factthat few people understand howthey would benefit by doing so. It'spart of the "me first" and “businessonly exists to make a profit”mindset.

How do you create trust withanyone? It starts by buildingrelationships, those which arebased on the integrity and honesty

of all parties. Quid pro quo. There'snever any sense of keeping scoreor getting your own back. Rather,it's the desire to make sure that theother party always gets your best.

With customers, it's not that they'realways right; it's that you have theirbest interests at heart. You're notlooking for a fast or cheap pay-off.You're not just trying to get them outof your hair. You genuinely careabout them, and they know it.

To achieve that, you must overdeliver whenever possible. Thatmay mean anticipating their needsbefore they realise that they needthem. It may also mean youchallenging your customers. Arethey overlooking something in theirbusiness that could be costingthem or are they ignoring a problemyou can fix because it is simply toohard.

Even something a simple as areminder from your dentist that yourcheck up is due or your accountantreminding you when your BAS ortax is due are examples ofsomeone showing that they haveyour interests at heart.

But it is surprising how few peopledo this.

Does the buck stop with you, orwhen customers are dissatisfiedyou immediately jump to theconclusion that the problem is withan external supplier or blame youremployees?

In franchise relationships the buckoften gets passed. Franchiseesblame Head Office and franchisorsoften blame poor performance orslack customer service directly onfranchisees.

If the franchisee isn’t meetingperformance expectations thefranchisee must take responsibilityfor what they can control. Likewisethe franchisor must takeresponsibility for what it can controland both parties must worktogether to achieve the bestoutcome for mutual benefit. Andyes, sometime this meanschallenging the other party to fix aproblem that you can help with. Italso takes courage from the otherparty to admit there is a problem.

When we start thinking about “mefirst” and “business only exists tomake a profit” then both thefranchisor and the franchisee havemuch to lose.

Stopping the buck, takes courage,but it will reap untold benefits.

Trust. It's a word that describes a characteristic in the way the people dealwith one another that is seldom experienced.

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1. What inspired yourbusiness idea?

MPH is part of a strong andexciting industry. Havingconstant contact with peoplefrom all walks of life, creatingthier dream home and realisingtheir personal vision, combinedwith an environment of workingso closely with clients that theybecome your friends, it is hardnot to be inspired.

2. How did you knowfranchising was right for youand what ultimatelyinfluenced your decision?

In addressing our future growthplans we engaged the servicesof a leading franchise consultant.We were open torecomendation for the mostapplicable path for our company.

Having worked with Maxiom’smarketing people to grow ourbusiness as quickly as we have,

we needed to find the rightstrategy to tackle the increasedwork load that we had created.In the back of our mindshowever, we felt that franchisingwas a viable option as theindustry we operate in is a veryfragmented except for thelargest players. The top 100builders now hold around 40%market share. But there arearound 50,000 other buidlersfighting for about 30% of thetotal market, with owner builderscomprising most of the rest.

The disadvantage of thesesmaller business structucturespurchasing power, state of theart marketing and innovation isrestricted, so we decided thatwe needed to become a top 100builder ourselves.

In this assessment of theindustry franchising was the rightdecision for MPH.

The franchising system we havecreated with the assistance ofour franchise consultantprovides the advantage ofbuying power, innovation as agroup to be at the fore frontof market trends, professionalmarketing campaigns, longestablished industry experience,all whilst maintaining thepersonal level of service to ourclients as they will be dealingdirectly with an owner of thebusiness.

3. What previous experiencedid you have in the businessbefore franchising?

Having come from a long line ofbuilders in the UK and Europe,on both sides of the family,building & design have been inour blood. This extensiveindustry and technicalknowledge and our broadbusiness experience, enablesus to direct the MPH businesswell into the future.

A HOME BUILDING FRANCHISEWITH ONGOING WORK READY &WAITING FOR THE RIGHTFRANCHISEES.Starting a home building franchise from scratch has provided someinteresting challenges as Mike James from Micheal Polo Homes explains.

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4. How long did it take todevelop and set up yourbusiness?

Whilst we have had over 30years building & businessexperience, franchsing took ussome time to learn and we spentover 2 years setting up thefranchise system. Developingour business is constant andalways will be, everyday we aredeveloping more and more.

5. What was the driving forcebehind your decision tofranchise?

Sales growth left us no optionother than to expand. Ourdecision to franchise was basedon wanting to maintain productquality, engage people with atrue passion for their work, havestrong technical knowledgeand personalised service to theclient. All of this can be achievedthrough the franchise structure.

6. What challenges did youface in setting up yourfranchise?

The biggest challenge in settingup a customised franchisesystem is the amountof variables to work through.

This challenge can be overcomeas long as you maintain theintergrity of your company valuesat every decision point,and make a decision that bestprovides the oppotunity for boththe franchisee and the franchisorto make healthy profits so thebusiness system is sustainablein the future.

We have a long term buildingcontract for multi-unit investmentproperties with a superannuationfund which is generating a soldbase for each new franchise.The hardest part is findingsuitable franchisees that canmaintain our quality of

services, share our vision and fitour culture. Many builders stillhave that “tradesman mentality”which holds them back fromachieving their business goals.

7. Tell us about some of theexpectations that you had.Have they been met?

So far everything has been inline with our expectations. Theseare exciting times.

8. Who is the target marketfor your franchise?

We are looking for people to joinour team who are passionateabout servicing clients, whoideally have a buildingbackground or who have beeninvolved in some area of theindustry, and who have a keeneye for detail. More important isa can do attitude and someonewho enjoys being creative.

9. How many units of yourfranchise do you plan toestablish in Australia?

Over the next 3 years we plan toestablish 18 franchises and 40within 5 years.

10. Do you have any plans foroverseas expansion?

At this stage we intend to makesure that our franchise system issuccesful in Australia and thatwe meet all our targets forgrowth and customersatisfaction before we look atother markets. But we wouldnever say never.

Michael Polo Homes lives by its’ service promise -designer homes “built on time and on budget;every time” .



We have gathered up 5 tips thatcan help you find the rightfranchise business and startmaking good money.

Finding the right franchise takes alot of time and research. If you arelucky you find the right businessand start getting excited about thepossibilities.

You also need to understand thatbuying a franchise does notguarantee that you will make anymoney no matter what their trackrecord seems to be.

However, by following these 5 tipsyou can increase your chances offinding the right franchise andmaking money.

1. Seeing Yourself in aFranchise

Most experts will tell you that to besuccessful in a franchise you needto choose one that you can believein. The franchise that you arelooking to buy needs to one thatclosely matches your interestsand your skills.

That will mean that you need totake a good look at yourself anddecide what your strengths andweaknesses are before buying.

Investigate other owners offranchises you are interested inand see if they have similarpersonalities as yours.

Offer to buy them coffee and askthem about any inside informationthey are willing to give you aboutowning a franchise business.

2. Stay Away From FadFranchises

As everyone knows, fads willcome and go. Investing yourmoney in a franchise that will onlybe a flash in the pan and not havea long-term future is foolish.

Franchises that are hot now couldcool off just as quickly. Stay awayfrom franchises that have a lot ofimitators in the market. That kindof competition will probably keepyou from being successful.

3. Search for SuccessfulFranchises

It is all about the sales and youwant to invest in a franchise thathas good sales numbers.

If you find that a particularfranchise has a lot of units up forsale that could mean the companyis having problems and you shouldsteer clear.

One way to verify is to check outfranchise brokerage websites tosee if other franchise businessesare selling, especially at lowprices.

4. Franchise Complaints

Another part of investigating afranchise to buy is to look forcomplaints. By checking theInternet you may find complaintsfrom current or former franchiseowners. This could be informationthat is important to you in yourdecision to buy that business.

Remember though, you willalways find some complaintsabout a business. If there are onlya few of them you can usuallychalk it up to a few disgruntledformer owners.

5. Avoid the Start-Up Franchise

Starting up a new business can betough especially if that franchise isnew. All you have to do is look overthe history of franchises to seethat many start-ups have comeand gone.

To increase your chances of beingsuccessful look for a wellestablished franchise, one thathas been in business for at leastfive years. A well establishedfranchise will reduce your risk andyou will have the benefit of otherowners that have good businessplans you can use.

Do the research, read thefranchise documents very closely,and get introduced to thoseowners that are in the business. Ifyou do all those before signing onthe dotted line, your chances to besuccessful are almost guaranteed.

We have gathered up 5 tips that can help you find the right franchisebusiness and start making good money. By Mike Burnside

5 STEPS TO FINDING THERIGHT FRANCHISE


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THE 5 SECRETS TO EFFECTIVEFRANCHISE WEBSITES By Chris Anderson

It’s shocking that in 2012, so manysmall businesses and franchiseesare still without a proper marketingwebsite to help boost leadgeneration, sales, and if nothingelse just to get on the radar ofwould-be customers.

Blaming the economy or uncertainretail conditions is a tired excusefor why your business is suffering.Stop worrying about things youcan’t control, and start focusing onthe things you can…like having areal website!

For all of the franchisors out therewith your heads in the sand, hereare some of the top reasons youNEED to have effective websitesfor your franchisees (and for thosereading who simply have cookie-cutter, template pages that arealmost exactly the same acrossthe board, this applies to you too):

1. Investing Time in Social Media isa Waste Without a Website

Take a look at your social mediapresence, and research yourfranchisees’ Facebook, LinkedIn,and Twitter profiles – surprised tosee how much activity there is?

Now, look closer to see if there’san underlying strategy to convertthose discussions in social mediainto leads and ultimately sales.

Chances are this is where the ballis dropped. That’s where a websitecomes into play – all of that greatmomentum can be channeled to acontrolled website optimised toconvert traffic in paying customers.

2. Control Your Business’s VoiceOnline

With a website that is designed tohave frequent content updates, youcan take control of the messaging,and have a strong positiveinfluence on your search enginerankings (SEO). Social media isthe great equalizer allowingcustomers to join the conversationwithout barriers to entry. Butowning the control of your brandand messaging through having awebsite is still vital.

3. Gather Customer Information

Collecting visitors’ emails and otherinformation through your websiteopens an amazing opportunity tomaintain communication withpotential and existing customersthrough email marketing, whichcan have a strong impact oncustomer retention.

It’s also a great way to dispersenew promotions to an audiencewho has already volunteered tostay updated about news andhappenings related to yourfranchise.

4. Have a Homebase to PointCustomers To

In today’s fragmented social mediaand Internet marketing arena, it’svery easy to become completelydisorganized and lose control ofyour lead conversion funnel – not tomention convoluting the experiencefor potential customers looking topurchase your products orservices, or just learn more.

The solution is to have a websitethat you can ALWAYS point peopleto, regardless of thecommunication channel (traditionaladvertising, banner ads, PPC,social media, etc.).

5. Generate Leads and Sell!

Most importantly, you need to havea SALES channel online that is thehub where you’re looking to converttraffic into leads, leads intocustomers, and customer intoevangelists. Social media is anexcellent vehicle to connect withpeople, build personalrelationships, improve branding,and a host of other benefits, but it’spretty tough to convert those warmfuzzy discussions into sales. Witha website, you can have aprominent sales call to action andan easy way to collect customerinformation, and you can constantlywork towards increasing yourconversion rates.

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What is "family?" According toWikipedia, a family is a group ofpeople affiliated by co-residence.

Now, I wouldn't normally think Ico-reside with my colleagues,but Australians spend the mosttime at work of any country in theworld with the exception of SouthKorea.

In franchising, we spend evenmore time at work, managingthe business and therelationships, betweenfranchisor & franchisee, withemployees and customers. Inshort, you don't need apsychologist to tell you thatdysfunctional franchise familyunits can definitely take a toll.

How can you tell if you "reside"in a dysfunctional franchise?

And more importantly, what canbe done about it? Steve Tobak(cbsnews.com) says there aretell-tell signs your "secondhome" (i.e., place of business) isdysfunctional. Here are just afew:

1. Ivory tower effect. Thishappens whenmanagement makesdecisions withoutcommunicating or

consulting with otheraffected parties. It candefinitely create a culture of"us vs. them."

2. Strategy of the day. We'veall seen this. A few of the"ivory tower" executivesdecide it's in the entireorganization's best interestto take it in a new direction.This often occurs becauseof one piece of data andresults in manydisorganised, ad-hocmeetings without keydecision makers.

3. Decision paralysis. Is thisone? Isn't this one? Oh wait,this is when executiveschronically debate issues todeath without actuallymaking decisions becausethere's no clear leadershipto drive consensus.

4. Pet project. Ah, yes. The"sacred cow" project that isusually created by a founderand is immune to criticismand the company'sstandard processes. Inother words, it continues tobe funded or enforced longafter it shouldn't or“because this is how we’vealways done it”.

So, do any of these *ding dingding* in your head?Soundfamiliar? What can be doneabout it? Well, I may sound likeCaptain Obvious (insert capedsuper hero here), butdysfunctionality has to berecognized first before"treatment" can begin.

If left untreated, you risk losingyour customer base, your profits,and your loyal workforce.

Once recognized, there is onesimple solution. Open andclear communication.

Sound too simple?

Take the examples above andapply the open and clearcommunication solution. Wouldthey still be a problem if allinvolved parties were allowed toshare their suggestions,opinions, hesitations, etc. in aconstructive format?

Maybe. But most likely, theywould resolve themselves.

How do I know that the franchise system I am buying into is viable in themedium to long term? By Trevor Cooke

DYSFUNCTIONAL FAMILIESDON'T ONLY HAPPEN AT HOME

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Probably the mostmisunderstood aspect offranchising is when franchiseesbelieve they have “bought” afranchise. The term “buy” afranchise is used by franchisesalespeople, many franchisorsand franchisees alike.

However, you don’t “buy” afranchise. Franchising is abusiness method whereby oneparty (the franchisor) grants theright to another party (thefranchisee) to use this businessmethod under the franchisorsbrand for a certain period of time(usually referred to as the “term”).

Finding the right franchisees isone of the most challenging andcostly aspects of franchising.

So it is little wonder that manyfranchise sales people use theterm “buy” a franchise in order torecruit franchisees.

This is something that is culturallyembedded in most franchisesystems and sales people.

When a person forks out a largesum of money there is an

expectation of “ownership” at theend of it.

But of course in franchising, thefranchisee never truly owns thebusiness. They have justpurchased the rights to operate abusiness using the franchisorsIntellectual Property for a periodof time.

Once this period of time hasexpired, unless the franchise hasbeen terminated earlier or therights to operate it transferred toanother party, then depending onthe franchise agreement, thefranchisee must either pay torenew the agreement to use thefranchisors Intellectual propertyfor a further term or simply walkaway.

This is where franchiseesbecome frustrated. In the pastthere have been court challengesto end of term rights - or lack ofthem.

What happens at the end of afranchise term can have a hugeeffect on franchisees businessand the return on theirinvestment. Most franchiseessimply don;t think about this

issue when entering into afranchise agreement.

The other consideration potentialfranchisees must take intoaccount is that in franchising“ownership” of the right tooperate the business issecondary to the performance ofthe conditions on which the grantis based.

Hence many franchiseescomplain about having the followmandatory procedures enforcedby the franchisor who is onlydoing so to maintain highstandards (or at least this shouldbe the reason). Franchiseesoften believe that once they signthe franchise agreement that nowthey “own” the franchise they canoperate it pretty much as theysee fit. Nothing could be furtherfrom the truth. Operationalperformance is the key factor tomaintaining a franchisee’s rightto retain the grant of thefranchise.

The Franchise Code of Conductrequires a franchisor to haveevidence that the franchisee hasobtained professional advicebefore entering into a franchiseagreement. But when the

Recruiting new franchisees can be challenging for many franchise systems.But once you’ve recruited the franchisee, helping them become successfuland happy can be just as big a challenge. By Joanne Porter

IS THIS THE HIDDEN REASONWHY SOME FRANCHISEESEND UP UNHAPPY?


advisors, often franchiseconsultants also use the term“buy” a franchise then cananyone be surprised whenfranchisees do not fullyunderstand the nature of thecontract?

Franchisee selection hasbecome a sophisticatedpractice over the years. It beginswith identifying what a perfectfranchisee might look like, andthen attempts to find thosecandidates which have thedesired attributes - those peoplewhose unique ability fits thefranchise culture and profile.

Franchisors that themselvesconsider the difference betweengranting and selling a franchisebefore embarking on afranchisee recruitmentcampaign are generally morelikely to have developed a highlyevolved franchisee profile andhave a stronger understandingof the characteristics of the“right” franchisee for theirparticular business.

They will have also developed adeep understanding of theirbusiness, its drivers, its

performance and the nature ofthe people it attracts.

Some franchisors are nothingmore than sales organisationswhen it comes to recruitingfranchisees. These franchisesales people will cast the net asbroadly as possible andencouraging all comers. If youfeel any pressure to sign beforeyou are ready or before youhave completed proper duediligence then the chances arethat you are being “sold”. Withthese franchises you may notend up being what you thoughtyou were.

The best franchises will have afranchise recruitment processthat eliminates unsuitablecandidates. Any franchisee thatdoesn’t fully understand they arenot “buying” a franchise butbeing granted the rights tooperate a business for a periodof time should not be recruitedby a franchisor. It is thefranchisor’s responsibility toensure it’s sales people knowthat the franchisee understandsthis before entering into thefranchise agreement.

The selection of a franchiseeand subsequent grant of afranchise is by its very nature adiscriminatory process as noteveryone will qualify.

Even those who do qualify maystill be not be accepted becausethey have unrealisticexpectations, their motivation isunclear or unsound, or for someother reason.

It is certainly possible that amisunderstanding about what afranchise actually is could be thehidden reason that there isgrowing franchiseedissatisfaction. People don’t likebeing “sold” something theydon’t “own”. Understanding thefundamental basis of a franchiseis the starting point to anyfranchise investment.

A franchisor that understandsthe value of the franchiserelationship and maintains ahigh level of integrity and interestin the well-being andperformance of the franchiseefrom point of first contact, canalso make a world of differenceto the long-term prosperity andhappiness of both the franchiseeand the franchisor.

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FRANCHISE MYTHS &MISCONCEPTIONS

Owning A FranchiseGuarantees Success.

You need to get clear on themyth that by owning afranchise, you absolutelycannot fail.

There are numerous factors,both controllable anduncontrollable, that candetermine the fate or level ofyour success.

However, a huge statistic is inyour favour: is that overall, thesuccess rate of franchisees isas high as 95%.

Of course, there are noguarantees here, but withproper research before buyinga franchise and a determinedeffort on your part, franchisingis the obvious choice.

Brand Name MeansEverything.

While you cannot dismiss theimportance of a highlyrecognizable brand, it is onlyone part of the equation.

However, there are manydifferent types of franchisesoperating in different industriesand sectors. Some you maynot even be aware of, wherethe brand isn’t in the consumerspotlight, but that doesn'ttranslate to a lack of success.

Their brand doesn’t have to bea household name likeMcDonald's in order to be afranchising success. Businessto business franchises are agreat example of this.

There are hundreds ofprofessional services orconsulting type franchises thatmost people have never heardof by name.

Many are extremely successful,with much less overhead, thantraditional food and retailfranchises.

A significant investment isinvolved, so the only onegetting rich is thefranchisor.

Don’t be fooled. Generally, theup front cost of a franchise islower than the set-up costs ofan equivalent stand alonebusiness.

And don’t forget franchisorsabsolutely need profitable,successful franchisees toflourish.

The fact that ongoing royaltiesare paid by franchisees on aregular basis indicates that afair an equitable relationshipexists between the two parties,and that the franchise isprofitable. Franchisee successis also dependant on this.

If they weren't, who would paythese fees? A poor performingfranchisee will not last verylong. The franchising businessmodel is structured specificallyso that both the franchisor andthe franchisee succeed.

Looking into whether franchising is the right option for you? Franchising iswidely known to offer aspiring new business owners the best possiblechance of success with the least amount of risk, yet there are still somemyths and misconceptions out there that can alienate even the most savvyand experienced business person. By David Marks


Bigger Is Always Better.

This is rarely true, especially inthe franchising world.

Think about it: would you ratherinvest every last dollar you haveinto a fast food or retailsbusiness that operates longhours or 24/7 in the hope ofmaking a decent income, dealwith high turnover, highoverhead, theft, staffing issuesand worry about what is going onat your store when you are notaround to supervise.

Or, would you prefer a servicefranchise that costs less toestablish, allows for plenty offamily and free time, andgenerates as good or evenbetter income than the food orretail business?

Most potential franchisees arebetter suited, and would evenprefer, a small franchise withlimited, but highly skilled,employees.

Of course, many of the biggestbrands are larger franchiseoperations, but many of theseare corporate units or owned bycorporate franchisees.

Owning A Franchise MeansYou're On Your Own.

Nothing could be further from thetruth. Yes, ultimately, whether afranchise succeeds or fails islargely the responsibility of thefranchisee.

However, a huge benefit ofbeing a franchisee is that thereis always support staff providedby the franchisor, ready to helpyou with any issue you mayencounter regarding yourbusiness.

Most franchises offer businesscoaching & mentoring, staffing&training programs, marketingprograms and local areamarketing support , along withother valuable business support.

There is also proven systemsand procedures that whenimplemented effectively go along way to ensuring franchiseesuccess.

You are most definitely inbusiness for yourself, but not byyourself.

In fact, you are part of a dynamicand vibrant team.

You’re Better off on Your Own

While franchising certainly isn’tfor everybody, sometimes thegeneral disposition of oursociety tends to be negative, sopositive aspects regardinganything, including franchising,and business success canbecome distorted.

This is particularly so if onedoesn’t have first handexperience or a deepknowledge and understanding ofthe business or industry.

There are many franchise myths,and new ones will surely appearin the future, but the reality isfranchising is the mostsuccessful business model everdeveloped.

Do your research and get advicefrom experienced franchiseadvisors who can provide youwith the necessary facts so thatyou're able to make an educatedand informed decision about aspecific business opportunity.


ARE THERE ANY FRANCHISEOPPORTUNITIES FOR WOMEN?

As an entrepreneur myself, I havebeen helping corporate boards,the C-suite and franchisemanagement create and developa united and positive corporateculture across a wide variety ofsectors. What has struck me inalmost 20 years dealing at thissenior level is despite theadvances women have made inthe last 30 or 40 years, at hislevel most organisations are stillmale-dominated. The franchiseindustry is no exception.

While women have alreadyproven that they are more thancapable of mixing it with the bestin the corporate setting, there area not enough good franchiseopportunities aimed specificallyat women, particularly those whohave decided to put their careerson hold while raising a youngfamily. While some women haveprioritised their career there aremany others who have chosen tobecome stay at home mums.

This doesn't mean that womenwho forego immediate careeropportunities to raise a familyare in any way less capable, infact, many women havesuccessfully combinedmotherhood andentrepreneurship through variousfranchise opportunities - when

they can find a genuine incomeproducing business.

Not only do franchiseopportunities for women need tobe financially rewarding, but theymust be flexible enough to fit inwith a stay at home mum’sschedule, not working to a rigidcorporate schedule.

A flexible franchise businessmodel allows many women to betheir own boss and dictate theirown pace. This great level offreedom is very liberating tomany women and helps earnthem greater respect.

In the modern world, mostfamilies need more than oneincome to live comfortably andstill be able to provide for theirlong term future.

Finding a flexible and profitablehome based franchiseopportunity allows stay at homemums to earn a reasonableincome while managing theresponsibilities of taking care ofher family.

In the past few years, statisticallythere has been a gradualincrease in female ownedfranchises and these numbersare continuing to rise.

Women have become a majordemographic in franchise buyersand many are opting for lowercost flexible home basedfranchise opportunities.

The trick Is finding the rightfranchise to suit yourgeographical location, skills,expertise and incomerequirements, all for theinvestment level you arecomfortable with.

Franchisors also should considerhow they can make theirfranchise opportunities moreattractive to women who requiresome degree of flexibility,particularly in recent times whenthere are dwindling numbers ofsuitable franchisees.

As a entrepreneur and a mum, Ioften wonder if I hadn’t had theopportunity to work with so manygreat business leaders on myterms and to my schedule where Iwould be today. Having adegree, experience and skillsonly counts for so much. Whenwomen choose to put their familybefore their careers, at least inthe shorter term, a well packagedhome based franchiseopportunity could well make aworld of difference to manywomen’s lives.

Without a single shred of doubt, women have certainly earned their place inthe business world. So why are there few good franchise opportunities formumpreneurs? By Kristin McNicol


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We don’t charge commissionsor placement fees, there areno monthly charges orcontracts to tie you in. Yousimply purchase a Job Pack thatreflects your recruitment needs.There are no extra costs!

The Process

Candidates apply via the MaxiomJobs web site. Rather than justhave them forward resumes, weask them to complete an onlineapplication developed inconjunction with you that istailored to reflect the qualitiesrequired to succeed in eachindividual role and that match yourbusiness goals.

This includes a first roundinterview questionnaire. Thisenables you to more easily andevenly compare candidates andcandidates can see that there is a“level playing field” and that theirapplication will get seen by theperson who counts…YOU! Theyalso know exactly what the roleentails and what qualifications areneeded before they apply, savingyou valuable time.

Applications are forwarded to bothyour inbox and to a Maxiom JobsClient Services Manager.Depending on the Job Packpurchased and level of supportrequired, Your Client ServicesManager then walks you throughthe process of short-listing,interviewing and selecting thebest candidate(s).

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Our screening process ensuresyou get the candidates whoseunique ability match thoserequired to be successful in thespecific role and in yourorganisation.

You can employ as many of thecandidates as you like without anyadditional cost.

As a strategic marketingspecialist, publishing andadvertising business, we alsounderstand what it takes to makea business successful and howwe can best pitch the job topeople in your market. As asuccessful digital publisher wehave a professional copywritingand design team who specialisein creating advertisements to grabpotential applicants’ attention.

We also have a specialistrecruitment team with experiencein over 22 industries and sectors.Maxiom Jobs gives you astructured and innovativerecruitment marketing campaigndesigned to attract the bestapplicants to your team. Mostimportantly, you retain completecontrol over the whole process.

Maxiom Jobs is built on our network of digital publications with over300,000 business leaders and talented professionals subscribing across awide range of industries and sectors, you can now reach a greater pool ofactive and passive job seekers.

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WHAT DOES IT TAKE TOBECOME A SUCCESSFULFRANCHISEE?

If you are considering of buying afranchise, you need tounderstand the psychology thatis behind a franchisor's decisionto award a franchise to the"right" person.

There are certain essential skillsand personality characteristicsthat encompass a "model"franchisee which franchisorsabsolutely require, so before yougo any further down the road tofranchise ownership, you hadbetter do a self-inventory andmake absolute certain you havethem.

Obviously, if you are consideringa handyman or homeimprovement franchise andyou've never used a hammer ora saw, this could be a seriousproblem.

Or if you are looking at a certainbusiness to business franchise,but you hate selling, you are allbut guaranteeing misery. Butthose aren't the kind of skills thatI'm referring to here.

Regardless of which specificfranchise you are considering,you need to possess and exhibitsome basic, key skills that willfuel the overall potential forsuccess of your franchisebusiness.

Franchisors have spent plenty oftime and money researchingwhat the profile of the idealfranchisee looks like.

Here are the traits of mostsuccessful franchisees:

Commitment to implementingand following a provensystem.

Franchise systems are in placebecause they work. It's thatsimple. If you're nickname is"Genius" because of yourbrilliant, super creative ideasthat you come up with daily, thenfranchising is not for you.

Franchisors want implementersnot entrepreneurs.

Go back and read the previoussentence again.

It is also imperative that you arepassionate about the product orservice and are completelycommitted to executing thecompany's marketing plan. If not,consider starting your ownbusiness instead.

Superior People Skills.

You need to enjoy working wellwith others as a team. If youdon't like interacting with others,you'll become stressed, youremployees and customers willsense it, and ultimately yourbusiness will suffer.

Instead, display the positivebehaviour that you want youremployees to model whendealing with your customers. Ahappy, positive, "customer isalways right" attitude mustprevail at all times by you, yourmanagers, and the employees.

Strong Work Ethic.

A must for any potentialfranchisee. If you don't possessstrong, disciplined work habitsand have burning desire, youmight as well work for someoneelse and punch a time clock.

Do you have what it takes to start up and be successful in a franchiseopportunity? Then consider the following attributes of the most successfulfranchisees. By John Morgan


Any successful franchisee willtell you that they work until thejob is done. They don't quit whenthe whistle blows.

They'll do anything it takes to getthe job done. Having truepassion to work for yourself willtend bring out this work ethicautomatically.

Team Oriented

As a franchisee, you are part ofa team in which you have a vitalrole. This role includesimplementing the systems of thefranchise, its’ marketing plan,staffing plans and operatingprocedures.

The whole franchise networkrequires you to do this well or itcan affect the success not onlyof your franchise but otherswithin the business.

Understanding you are part of ateam and how important yourrole in implementing thefranchise systems even if itcontradicts what you have beenused to in the past is somethingthat can’t be understated.

Put simply, it is usually thedifference between success andfailure.

Well-Capitalized.

Obviously, franchising costs canbe significant. Franchisors willnot recruit franchisees that areunder capitalized. You're facingan initial investment, thefranchise fee, and ongoingroyalties due to the franchisorplus operating capital.

Royalties are usually apercentage of the income thatyour business generates, whichyou in turn pay the franchisor,typically ranging from 3%-7%. Don't let these costs scareyou, though. In return, you arereceiving the franchisor’ssupport, and the benefit of its’brand, which is significant.

Many franchisors offerassistance with financing. Youwill also be able to benefit frombetter pricing and morefavourable purchasing terms asa result of being a franchisee.

Research.

Seek out assistance. It's virtuallyimpossible to conduct athorough franchise search,undertake due diligence, andfinancial management alone.

Make sure you have a goodteam of advisors that havefranchise specific experienceand qualifications. Manyfranchise consultants can helpyou with this.

Franchising is a great businessmodel if you have the necessaryskills and mindset to follow aproven and successful formula.

If you truly possess thecharacteristics spelled outabove, chances are you have asolid foundation to be asuccessful franchisee.


FRANCHISE BRANDS - ISBIGGER BETTER WHENLOOKING FOR A FRANCHISEOPPORTUNITY?

In simple terms bigger isn’talways better. But like anybusiness, not all franchises arecreated equal. There are somegreat franchises, both large andsmall.

There are however, somefundamental differences wheninvestigating new, lesser-knownfranchise brands compared tolarger household names whichserve essentially the samemarket.

One key factor to consider is theentry cost will usually be lower forthe new and lesser-knownbrands as these franchisors willbe less likely to charge as muchfor access to their brand,intellectual property and training.

If the franchise occupies apremises, then larger franchisesmight have greater buying powerand cost savings when it comesto construction, fitout, equipmentcosts and efficiencies.

The next factor is that size isirrelevant when it comes down tosystems. Franchise success isbased upon implementing triedand proven systems. Manysmaller franchises have bettersystems and procedures thansome larger franchises.

Provided the franchiseprocedures are well and clearlydocumented and franchiseerecruitment is of a high standard,then a smaller franchise mightoffer many benefits to largeralternatives.

One fundamental difference isthat newer or smaller franchisesoften have fewer resources toallocate to franchisee training,ongoing support, marketing andquality control, all of which arekey to the long-term success ofthe brand and its franchisees.

Another fundamental differenceis that being one of the firstfranchisees in a franchisesystem can often come withsome fantastic benefits includinga wider choice of territories.

Some larger franchises havelimited territories or sitesavailable so find the franchiseeto suit that territory instead. Thiscan also result in one franchiseetaking business from aneighbouring franchisee if thereare too many franchises withinclose proximity of each other.

Conversely, there is often muchgreater scope for innovation andopportunity for growth for earlyadopters of a newer franchisebrand.

While growth into additionaloutlets (becoming a multi-unitfranchisee) will still sometimesbe possible in establishedbrands, the capacity to purchaseneighbouring franchises orinfluence the overall direction ofthe franchise is greatly reduced.

When considering any franchise,completing adequate duediligence is vital to ensure youare entering into the franchiseknowing as much about thebusiness as possible.

It is widely accepted that Australia has an oversupply of franchise systems.So, with consolidation within the franchise industry gathering force, will thisbenefit the industry and in particular franchisees? By Naomi Walshe


As a rule of thumb, wheninvestigating a franchiseopportunity, potentialfranchisees are encouraged tospend one hour of due diligenceand research for each $1,000 tobe invested in the business. Thismight require hundreds of hoursof research and due diligenceup front, depending on the costof the investment, but if apotential franchisee is thoroughin their assessment of afranchise opportunity, they willvastly increase their likelihood ofbecoming a successful and topperforming franchisee.

Failing to complete adequatedue diligence, however, canquickly result in the franchiseperformance failing to meetexpectations - no matter howattractive the franchise offer,level of investment or initialenthusiasm of the franchisee.

Something else to consider isthat when a new franchisor startsfranchising, they hope to takeadvantage of a market niche thatcan be exploited. The uniqueway this new franchise handlesits niche will be the decidingfactor in its success - at least theinitial success that will enable itto at least reach the greaterchallenges that will lie ahead asit matures.

There will have to be a reasonwhy people will want to buy fromthis business. You must makesure that any system youconsider becoming a part of hasa point of difference or uniqueoffering as part of its reason forbeing in business.

Before you join any newfranchise, you should be surethat others have alreadydemonstrated that it works. If thefranchisor hasn’t opened andsuccessfully run at least one pilotfranchise there is simply no waythat you can be certain that thesystem is proven and that itworks.

Australia has the most franchisesystems per capita in the world.The majority of these franchisesystems lack critical mass soeffectively Australia isoversupplied. The industry isripe for consolidation.

Larger franchise systems arestruggling to fuel organic growthas a result of a dwindling supplyof suitable franchisees andquality retail sites at the rightprice. At the same time manyretail franchises are facingincreased competition and pricepressures from online andinternational competitors whilebattling with fluctuations inconsumer confidence

In response a number of largerfranchisors are looking to takeadvantage of the increasingnumber of smaller players thatare struggling to maintainprofitability by engaging inconsolidation activity. Australianfranchising is expected toexperience a consolidation pathsimilar to that which the US andUK have experienced over thepast 5 or so years.

What this means for franchiseesis that even if you invest in anewer or smaller franchise thereis an increased chance youmight end up part of a muchlarger franchise network. Thiswill have some advantages, butmight also reduce growthopportunities, depending on theterms of the consolidation. Itmight also expose smallerfranchise systems to strongerand more cashed upconsolidated competitors.

In determining whether to investin a relatively new franchise,compared to a long-establishedbrand, potential franchiseesmust assess themselves, theirappetite for risk and their abilityto capitalise on opportunities, aswell as the future prospects ofthe franchisor and where they sitin the market and their industry.

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HOW THE INTERNETAFFECTS THE FRANCHISEINDUSTRY

Despite this franchises arecertainly focused on theimportance of the web and othertools to the success of theirbusiness with 23 per centlooking to increase their onlineretailing activities over the next12 months.

It is predicted that 57 per cent offranchises will utilise onlineselling over the next two years.

In a day and age whereeveryone from your children toyour great grandparents areonline, it's a no-brainer that theInternet is playing a significantrole in the business world. Whenit comes to franchising, is yourfranchise benefiting from Internettechnologies?

The most obvious advantage ofusing the Internet to benefit yourfranchise is that it puts yourname out there. In marketing,you need to advertise in placeswhere the most people will find it- so if the people are online,that's where your brand nameneeds to go.

The trick in this arena is to bewell familiarised with yourdemographic and what onlineplatforms they are using.

Do your consumers frequentFacebook? Twitter? Pinterest?LinkedIn or Google+? Whateverit is, it's where you need to be.

The primary benefit ofadvertising on the Internet is thatyou can reach such a wideaudience.

In the PwC 2011 FranchiseSector Report they found that 85per cent of franchise groups arenow using or planning to useSocial Media for marketing,customer engagement andcustomer feedback. Facebookis the most popular social mediachannel, but Twitter, YouTubeand corporate blogs are alsowidely used.

However, as IBM found in itsGlobal Marketing report (FromStretched to Strengthened), thatover 70 per cent of all peoplethat interact with brands on

Social Media do so in order toget discounts and makepurchases. Many companies stillhaven’t worked out how toharness this for their benefit,many mistakenly believing thatSocial Media is a tool to helppeople feel connected with theirbrand or purely as an after salesand customer service utility.

In fact, more than 80% ofcompanies just use socialmedia to pump out marketingcontent and don’t even botherinteracting with their audience.

However, consumers areinteracting with brands on SocialMedia and this is being fuelledby the soaring number of mobileand tablet devices in use inAustralia (expected to increaseto over 5.5 million in 2015).

Online services and SocialMedia are proving to be naturalcomplements to moretraditional advertising media.

Smart franchisors are findingthat social media is a powerfultool to improve and strengthen

There has been much discussion over the past 12 months regarding theeffect of online on traditional forms of business. Although 34per cent of franchisors are utilising online retailing, they are using it to buildbrand awareness and increase coverage. This indicates that franchiseshave been fairly slow in the uptake of Internet technologies.


customer awareness and loyalty.They are also using it as amechanism to engage with theircustomers.

Of the franchisors that arecurrently retailing online, 23 percent reported that over 20 percent of their revenue isgenerated through online sales.

This compares to only 5.5 percent of overall Australian retailsales currently online. Thisshows that those franchisesleading the online revolution areway ahead of the generalbusiness community, includingmost other franchise systems.

Franchisors have reported thatusing online retailing has had apositive impact on brand andmarket coverage. They reportedminimal negative consequencesassociated with using onlineretailing as a strategy. It appearsthat franchisors are using onlinechannels as an opportunity toraise brand awareness of theirbusinesses and broadenaccessibility; rather than beingforced to go down this channeldue to the threat of onlinecompetition.

In spite of previous concerns thatonline retail may cannibalisefranchisee sales and createchannel conflict, the PwC Report

shows in 83 per cent offranchise systems thatfranchisees receive the full orpartial revenue generated fromonline sales. This is a positivetrend indicating that franchisorsare using online retailing as agroup-wide collaboration toboost franchisees’ bottom linesrather than keeping the incomefor themselves.

With online sales predicted todouble in the next 2 years, if youare considering buying anyfranchise it would be wise tocheck if you will be receiving afair share of online revenue.

The other big change that isimpacting franchises is theincreased use of cloud basedtechnologies and systems. Thecloud is now the preferredchoice for leading businesses tomanage many aspects of theirfranchise business frommarketing to human resourcesmanagement to documentcontrol and Intellectual Property.

Cloud based systems are idealfor franchises as they areinfinitely scaleable, provideflexibility to cope with fluctuatingbusiness demand and greatlyreduce the up-front investmentrequired, moving cost frominfrastructure (capital

expenditure) to operationalexpenditure.

Remember, the key factor that isdriving the shift to greaterInternet utilisation by franchisesis that you must be whereyour customers are.

Ignore this at your peril.

Franchisors and franchiseesalike must have an Internetpresence. Local marketing,mobile and comparisonshopping makes it even moreimportant for franchisees to havea strong online presencethemselves, not just rely on thefranchisor.

A key fact that you should neverignore is that every day we arespending over 1 billion dollarsonline - after midnight! And thisis growing fast. Even if you wereto stay open 24 hours a day, youare still missing out. The Internetis having a big impact on howwe do business, not just how wefind information. Franchises thathave seen the potential and arealready leading the way arereaping the rewards. Others arenow trying to play catchup. But isit already too late for them?

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WHEN DEMANDINGCOMPLIANCE COSTS YOU AFORTUNE

A recent article in CBSMoneywatch about an unfairdismissal lawsuit when anemployee refused to wear a stickerwith 666 printed on it due to theirreligious belief and the negativeramifications that had for the brandconcerned reminded me of anotherrecent over the top compliancedemand, this time in a leading UKfood franchise.

The Scenario:

Head Office decided that it wastime to “refresh the brand” andordered all company owned andfranchised stores to comply. Thiswasn’t the problem. While therewas the usual murmurings overcost and inconvenience, prettymuch everyone agreed the brandneeded to be modernised. Theproblems grew over how this wasto be delivered.

In a classic textbook example of“how not to refresh your brand” thisparticular food franchise hadengaged one of the owner’s family,a graphic design student, to designthe new corporate image -including restaurant fit-outs, staffuniforms, signage, etc

The finsished product was, welllet’s say, less than optimal. Butdespite this, Head Officedemanded full compliance from all

outlets across all aspects of thebrand refreshment.

Growing discontent fromemployees over the look of theirnew unforms, the image theyportrayred about them and theirjob, level of self worth and impacton confidence didn’t deter Headoffice one bit. In fact they camedown hard when many staff simplyrefused to comply. Franchiseeswere forced to make sure all staffwore the hideous new unforms.

As customers began to make funof them, staff became quicklydisinclined to offer the same levelsof customer service, theirconfidence dropped as did thecompany’s sales!

Were the staff and franchiseesjustified? Well the new uniformsmade Ronald McDonald look like asnappy dresser! The femaleuniforms made them look liketechnocolour prostitutes.

But still Head Office demandedcompliance. Franchisees werethreatened with termination, staffwere threatened with dismissal.

Senior staff including the COO,CMO and Franchise DevelopmentManager all decided it was time tomove on. How do I know this?Well, I was one of them.

The strange thing about this wholething was that nothing elsechanged. The product was as goodas ever, the branch managers andfranchisees were still the samebrilliant dedicated people they hadalways been and the staff were stillthe same hardworking employees -but customers stayed away indroves. What was once a strongemployment brand became alaughing stock and the butt of jokesfrom customers, friends, passersby, competitors - all and sundry.

12 months on I still get phone callsfrom previously happy, nowdisgruntled branch managers andfranchisees.

As a franchisor or a manager, youmay have Head Office, afranchisee, an employee or even acustomer make requests thatseem ridiculous.

Before you shout, "I'm the boss!"Or I’m the franchisor!” and"because I said so!" stop and think,"what's the worst thing that canhappen here?"

If the refresh was put on hold untilHead Office improved new designno one would even remember thefirst “draft”.

Operating a franchise is about following a proven, tried and tested system.But what happens when we take demanding compliance to the extreme?By Richard Wozniak

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FINDING THE MOSTPROFITABLE FRANCHISES

The most profitable franchises arethe ones that are least affected bychanges in consumer buyinghabits, economic circumstancesor technology.

Winning over franchise buyerssimply comes down to money.Many franchises have shrunk orachieved only minimal growth overthe past few years, yet others arethriving and experiencing rapidgrowth despite the challengingconditions and lack of adequateaccess to finance that exist.

These companies are usually theones that have powerful brandnames, such as McDonalds,Dominos, and 7-Eleven. We allknow them, and a person buyinginto them can have reasonableconfidence and security that theywill succeed. Without a famousbrand name to rely on, however, afranchise looking for rapid growthwill need to have the numbers ontheir side.

To look for the most profitablefranchises, you should be awareof three factors that lesser knownbut rapidly growing franchiseshave in common.

1. Low Investment: Obtainingfinance for a new business startupis extremely hard nowadays - evenfor successful proven franchisesystems.

Therefore, buyers in today'smarket need to find lowerinvestment levels. The averagefranchise investment may havebeen about $250,000 four yearsago, with perhaps 60%-70% ofthat amount financed, but todaymany rapid growth franchiseshave total investments of $125,000or less.

2. Rapid Break even:Traditionally a business wasconsidered successful if it wasprofitable by the second or thirdyear. In the modern businessworld, franchise buyers are lookingfor a much quicker road to profit.You do not want to keep feedingadditional money into a newbusiness to cover operatingdeficits for a long period.

Many of the fastest growingfranchises will accomplish a breakeven point within the first year ofoperation and, in some cases,within a few months.

3. High Margins: It is important tobe able to achieve high profitmargins. That way, a businesscan quickly increase its total profitto a significant level once it startsmaking money.

A traditional stand alone businessmight normally put five or tencents of every sales dollar towardthe bottom line after reachingbreak even but today's franchisebuyer wants a business with salesmargins at least three to five timesthat level.

The most profitable franchisesshould score well on thesemonetary factors, but still need toconvince potential franchisees thatthere exists strong consumerdemand for their products orservices with plenty of payingcustomers.

Service based franchises seem tobe the best in terms of satisfyingboth the financial requirementsand the need for reliable demand.Lower overheads and ingoingcosts make these franchisesmore desirable.

Finding the most profitablefranchises requires you to do duediligence on any business you areinterested in. You should look forthe three factors discussed above,get to know the staff at thefranchise company, and carefullyread their disclosure documents.

This is a good start to finding afranchise business that interestsand excites you, and you can seethe long-term potential forsuccess.

There are many franchises to choose from, but some are more profitablethan others. Some locations are also more profitable than others. So how toyou find the most profitable franchise? By Aiden Williams

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Maxiom can produce digital assets for the web or deliver your brochures intocontainer apps that are branded to suit you. You can keep them updated andpush new brochures to all those users who have the app installed. Great pushmarketing is now here with the Apple and Android tablets.

The digital content can be easily integrated into your existing customerintelligence systems or be used to stimulate calls to action that can generatenew enquiries and tangible new business that can be tracked.

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Data is an important element in any customer engagement process andMaxiom can help you capture customer information. These digital publicationscan be used to help segment your database through intelligent contentcreation and delivery. Over 38% of digital brochure users opt-in to providetheir data without any additional incentives and some customers have builtsegmented databases with tens of thousands of users in as little as 3months.

The statistics system is accessible online and you are able to use this toidentify customer usage patterns.

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DISCLAIMERInformation published in this online magazine has been compiledwith due care and attention, but it does not clam to be exhaustive.Maxiom Group and/or Modern Franchise Magazine cannot beheld responsible for the content of external sites reached via ahyperlink from this site. We accept submissions from outsidecontributors, and whilst great care is taken, the author of thesubmitted article is responsible for what they write, and ModernFranchise Magazine will not be liable for any loss or inaccurateinformation or any other omission or error by outside contributors.

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modern franchise magazine march 2012

Documents

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