My primary job as a franchise consultant is to teach folks how to study franchise systems. I have been doing this for years by sharing best practices and helping to set expectations. This topic is so important to me that I wrote a book about it. With my many years of experience, you would think that I had seen it all - not so!!
Several weeks ago I was speaking with two prospective franchisees and they were mentioning that they were having trouble conducting their due diligence on a franchisor they found on the internet. They told me that the franchisor had a 'different' system that they would have to follow it they were 'serious'. Upon further discussion, I discovered the following -
- Franchisor forbids them from speaking with franchisees until after they attend Discovery Day.
- Franchisor requires a $5,000 deposit before attending Discovery Day.
- Franchisor would not provide a copy of the FDD until they forcefully asked
- Territory will not be granted until after training. If they do not agree to the territory, the Franchise Fee will be refunded - Minus a $15,000 fee.
This is a real story of a real franchisor. If you were investigating a franchise and the franchisor told you that these are the 'rules of engagement', what would you say? How would you react?
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Founder of The Educated Franchisee
| Health-Law Costs Lower than Expected|
Restaurant owners have been fierce critics of the health-care overhaul law, fearing that its mandate for employers to offer insurance more broadly will drive up costs and deter hiring.
Now, some operators say the law may not be that costly after all. They say many employees won't qualify for coverage, and many of those who do qualify will decline company-offered insurance.Wendy's
Co. WEN +1.23%
initially estimated the health-care law would increase the cost of operating each of its 5,800 U.S. restaurants by $25,000 a year. But Chief Financial Officer Steve Hare told an investment conference on March 14 that executives have cut the estimate by 80%, to $5,000 a year, primarily because they expect many employees to decline the insurance offering.
Go to Wall Street Journal, Click Here
7 Executives Fulling Their Entrepreneurial Dreams.
elissa Tomkiel handled a variety of small business and startup clients as an attorney with a law firm in Manhattan. That experience came in handy when she helped a friend start a private charter airline company, and eventually gave up her job to became its co-owner.
"My father said I would always have my law license. But that I only live once and I should go for it," she said. With her aviation company up and running, Tomkiel is also making time to practice law again.
Said Tomkiel: "I love doing both things. I probably would have made a lot more money working at a law firm full time but not as much fun as I have owning my business."
Go to CNN Money, Click Here
| Business Ownership Comes With Privileges
he military has produced many acronyms, one of which is RHIP, which stands for, "Rank Has Its Privileges."
RHIP is the unofficial way to point out when a person accrues some benefit by virtue of their position. Mel Brooks' character said it another way in his comedy "History of the World" with, "It's good to be the king."
In that spirit, here's a new acronym for small business owners: OHIP, which stands for "Ownership Has Its Privileges." Let's look - sometimes with tongue-in-cheek - at a few business ownership privileges.
Go to Forbes, Click Here
| SBA Relaxes Rules to Attract Borrowers
Concerned, apparently, that not enough businesses are taking advantage of government-guaranteed loans, the Small Business Administration recently proposed changing some of its lending rules. If adopted, the new rules could make the agency's loan programs accessible and popular enough that they could reach their legal limits on lending - something the programs have seldom ever done.
In an interview, the outgoing S.B.A. administrator, Karen Mills, said, "you have to be inclusive when you look at our programs." President Obama, she noted, vowed in his State of the Union address to make assisting domestic manufacturers a top priority for his second term, adding, "So without ever taking our eye off the ball on Main Street, we are now highly equipped to help our important manufacturing small businesses and job-creating supply chain members in-source more large-company manufacturing."
The Educated Franchisee
|The Franchisee Workbook|
There is a reality in life. Greater knowledge drives better decisions and better decisions reduce business risk. Franchising is all about risk reduction but not all franchises are low risk. Our books are designed to empower you. By following the advice and guidance presented in our books you will recognize high quality franchises and confidently pass over those that are not.