In this post I’m going to share 7 Do’s and 7 Don’ts while you attend Discovery Day.
Whether you’re a seasoned franchisee or someone who is just starting their franchise journey, Discovery Day is a very important step in the Due Diligence process.
I’ve been to a lot of Discovery Days and the first ‘Do’ on the list is:
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Profit and Loss Statements
Today’s post is about the importance of a Profit and Loss Statement, or as some people call it, a P&L. First, let’s start with the definition a Profit and Loss Statement: A P&L is a financial summary of your revenues, your costs, and expenses over time.
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Why Do Franchise Stores Close?
It’s the elephant in the Discovery Day Boardroom; Franchise Unit Closures. The Franchisor may not even bring up the fact that there have been store closures under their watch, but it’s important for you as a potential buyer to find out how many and why. In today’s post, I’m going to cover:
1) the reasons why a franchise store may close, 2) how closures reflect on the brand, and 3) at the end of this post, I’ll discuss a metric tied to store closings that can help you reduce your risk when choosing a franchise.
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In this Blog Post, I’m going to share with you the 10 Steps to Opening a Franchise.
Opening up a franchise or any small business can be daunting. There are hundreds of tasks that need to be completed most, within a certain time-frame. Risk increases with ignorance and to that end, its important to understand the big picture, the context of the entire sales and development processes. In this article I’ve outlined a high level overview of the how to open a franchise unit. Its important to note that this post is intended to be a road-map. The specific how-to’s for each task will be covered in a separate posts.
With just a few exceptions, this process can be used to open any small business.
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In early February, Paul and I attended the annual IFA (International Franchise Association) convention. As far as conventions go, this one was both well organized and well attended. IFA reported that a combined 4,000 Franchisees, Franchisors, and Suppliers were in attendance.
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Steve here; today I’m going to share with you What I Would’ve Done Differently. Though the list is endless, I’ll key in on one point.
In 1991, I signed up for my first franchise, and in 1992 I opened it, knowing next to nothing about what I was doing. I ended up in a spot that was extremely lucrative and we did very, very well in sales. My lease mimicked by franchise agreement, which was 10 years with two five-year options. Not realizing that leases do eventually come to an end, I ended up a business performing in the top five of the concept fleet; we were probably number three. The value of my business at its peak, and I went right through it. By the time I realized I should have sold, it’s now too late.
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By Paul Giggi
There are a few basic approaches you can take when you begin your search for a franchise concept; I’d like to share with you some of the more widely used and effective ones…
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By Tiffany Toliver, P.E.
This story starts in the suburbs Atlanta, GA. I was working on a pad-deal in a prominent lifestyle center. The LOI was fully negotiated and executed and I was waiting on a lease draft from the Landlord. During this time, I had a local engineering firm doing some code research on the site so that I could accurately estimate a project schedule and permitting costs.
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by Steve Slowey
When is it time to sell your business? I can tell you the time NOT to sell your business is when you’re losing money. We’re going to make an assumption that your business is profitable, and that is definitely the best time to sell it.
I have a question for you. If you were to invest $1 million dollars and over a 4-year period, that million dollars was given back to you, and at the end of that 4-year period, you were given an additional $400,000, would you do it? If the answer’s yes, then I agree with you. I would do it too. Let’s talk about what I just said.
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By Steve Slowey
Recently, I spoke with a Franchisee made reference to the fact that they were not making any money and were considering closing their store. When asked why, and what the problem was, they said they ‘could not keep a GM’ and that they were ‘having to put money into the business’. They were trying to hire someone to bring functionality and organization into their disorganized dysfunctional operation.
Continue reading “Are You Outsourcing What You Should Have In-house?”