Whether your are a prospective franchisee yourself, or a franchisor searching for the right franchisees, it is important to know what makes a franchisee successful. Because in actuality there are always top, average and poor performers in EVERY franchise. Franchisors will see a wide-spectrum of results. This blog post examines 5 traits I have noticed
Franchise Review
[Franchise Update 12/4/2020 Edition]: The Complete Introduction to Franchising and More
READ: 5 RECENT posts to check out ON franchising.
The Complete Introduction to Franchising and Franchise Ownership [With Updates] – Joel Libava, The Franchise King
Because if you’re going to invest in a franchise, it’s crucial for you to get a complete understanding of the business of franchising. You need to understand how
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Franchisors need to Choose Franchisees Wisely
You have built a successful business and perhaps even have multiple business locations that are thriving. Out of the blue someone says, “You should franchise!” And the wheels start turning from there. You learn about the expected investment, hire a franchise attorney and complete your Franchise Disclosure Document (an over simplification for the purposes of…
Franchises Face Challenges as the Pandemic Continues
2020 has been tough. And with the pandemic continuing, unfortunately it does not appear the challenges will end for franchise businesses any time soon. Governors around the country, including Iowa, are issuing new shutdown orders. What are key considerations for franchises as 2020 closes and we head into the new year:
- Leadership. A
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Multiple Unit Franchising Offers Rewards
Multiple unit franchising has the most risk but offers the most reward. In my experience, owning multiple franchise units allows you to harness the true power of franchising. The franchisees I see who are the most successful are all multi-unit owners. Substantial investment is required in order to purchase multiple units and should not be…
Franchising in a Pandemic
This past week I had the opportunity to participate in the 43rd Annual Franchise Forum. As only one of two Iowa lawyers participating in this year’s Forum, it was an all virtual event for the first time in its history. The Forum is essentially the franchise lawyer bar association meeting. Every time I participate I…
Look for Franchises that Deliver Consistent Success
Recently I reviewed a franchise offering for a prospective franchisee. This particular franchise made financial performance representations in Item 19 of the Franchise Disclosure Document (FDD). The financial performance representations revealed some impressive numbers at first glance. After all, the highest performing franchisee was earning in excess of million dollars per year. And the “average”…
Franchisee-Centered Franchises
As a lawyer representing both franchisors and franchisees I have somewhat of an unique perspective on franchisor / franchisee relationships. Most franchise lawyers tend to represent one side or the other. But it is somewhat rare for a franchise lawyer to represent both sides. I have spent over two decades now reviewing franchise agreements. I…
The Eighth Ingredient in Franchise Investing: Is there a Runway for Future Growth?
This is the final post in a series of posts on the Secret Sauce of Franchise Investing based upon an excellent article I read some time ago on what private equity likes to see before investing in a franchise. In this post I am highlighting the eighth ingredient which is whether the franchise has…
The Seventh Ingredient for Franchise Investing: Successful Franchisees
I am blogging a series of posts on the Secret Sauce of Franchise Investing based upon an excellent article I read some time ago on what private equity likes to see before investing in a franchise. In this post I am highlighting the seventh ingredient which is whether the franchise has successful franchisees.
Good…