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Educating Tomorrow's Franchisees
February, 2014
 

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Have you wondered about the history of franchising and who were the early players?

 

Well, two weeks ago we had a wonderful opportunity to listen to Jane Plitt, an expert in the history of Martha Matilda Harper, the founder of Harpers Beauty Salon and the first practitioner of modern 'business format franchising'  Ms. Plitt is also the author of Martha Matilda Harper and The American Dream.

 

Although the podcast was well attended, there were others who wanted to attend but couldn't. As a result, I am sharing the link and you can listen to the recorded call as time permits.  Click Here  Listen to the podcast and be inspired by the incredible journey that is the life of Martha Matilda Harper.

 

Next PodCast on February 20th at 6PM will be with Geoff Seiber - the founder of Fundfund. We will be focusing on the very practical issues surrounding franchise financing. We will be discussing the 2008-09 time period, current state of franchise and we will explore where franchise financing is going in the future. If you have questions regarding financing, this will be your opportunity to ask.  To join the Podcast live, please use this link at 6PM ET on Feb 20th. Click Here  

 

Hope you enjoy this month's articles.

 

Respectfully, 

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Rick Bisio
Founder of The Educated Franchisee
Franchises Flourishing

Diane Helsel joined thousands of franchise owners in October when she opened Cinnabon in the Logan Valley Mall.

According to research released by the International Franchise Association Educational Foundation, franchise businesses are expected to grow faster and create more jobs than the rest of the economy again in 2014.

 

Franchises are expected to add nearly 200,000 new jobs in 2014 and the number of franchise businesses in 2014 is expected to rise by 12,915 in 2014, bringing total establishments to 770,368.  

 

With the fastest growth rate, business services are expected to add 35,109 franchise jobs in 2014, while quick service restaurants, the largest sector in franchising, is expected to create 75,596 jobs.

"Throughout the recession and tepid, uneven economic recovery, the strength and entrepreneurship of the franchise sector has been a consistent job creator for the U.S. economy, said IFA president and CEO Steve Caldeira in a statement. 

 

Go to Altoona Mirror, Click Here 

Franchises are ideal vehicles for an EB - Visa Application.  

As franchises struggle to find buyers who can secure financing, a handful are turning to a group of budding owners with cash in hand: wealthy immigrants looking for a green card.

Chains such as YoBlendz, Elements Therapeutic Massage and Battery Giant have begun pitching themselves to well-heeled foreign buyers using so-called EB-5 visas as a selling point. The federal program, launched in 1990, gives foreign nationals the chance to obtain permanent residency by investing a minimum of $500,000 in a U.S. business.

The catch: The investment must create at least 10 new jobs within two years, or the foreign investor is sent back home.

Despite the risk, franchisers see it as a chance to lure buyers who are set up to seal a deal quickly. And for foreign applicants who lack the entrepreneurial chops to launch a venture from scratch, franchises offer a ready-made business model with a proven record, says Stephen Caldeira, president of the International Franchise Association, a franchising trade group.

 

"We're seeing growing demand from franchisers for well-capitalized investors, and EB-5 applicants see franchising as a safer bet, in terms of an investment," Mr. Caldeira says.

 

Go to Wall Street Journal, Click Here 

5 Midlife Millionaires

 

We all know the stories of entrepreneurs like Steve Jobs and Mark Zuckerberg, who made it big at a ridiculously early age. But for most entrepreneurs, success comes much later in life. Some must learn the ropes first, gaining valuable experience in their respective fields with more established companies. For others, it takes hitting rock-bottom professionally during their younger years, coming to terms with what went wrong and mapping out a plan to avoid it the second time around. Then, there are those who, by chance, come up with an idea that's almost an immediate commercial hit.  


Take Harland Sanders, best known as "Colonel Sanders" of KFC fame. He was 62 when he opened his first Kentucky Fried Chicken franchise location. Or how about Dietrich Mateschitz, co-founder and CEO of Red Bull, who took ten years to complete his bachelor's degree and worked a string of ho-hum corporate jobs before launching his energy-drink company at 43? Their experiences prove that age is nothing but a number when it comes to creating a multimillion-dollar success.

Here are five entrepreneurs who didn't make it big until middle age. Find out how they did it, and what advice they have for other entrepreneurs.

Go to Kiplinger , Click Here

 

Show Me The Money - Innovative Financing Alternatives.

 

Franchisees get creative while seeking financing options that can spur growth.

Most people are familiar with the process of getting a home or car loan. But for franchisees hoping to finance their first restaurant, fifth location, or even a remodeling project, securing a loan is a totally different ball game, one that can be difficult to navigate.

That's especially true in today's economic climate, as traditional lending sources remain careful with the new loans they issue and innovative financing opportunities become available for small business owners. The new financing reality is leaving quick-serve franchisees to figure out how to fund their expansion, something more operators are investing in as the economy slowly finds a foothold.

 

Many brands are directing their franchisees to BoeFly, a virtual marketplace of commercial and business lenders that helps franchisees find lending institutions. Firehouse Subs, for example, provides potential franchisees with access to the BoeFly portal.  ..... 

 

Go to QSR Magazine, Click Here
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Thanks for your interest in business ownership.  If there is anything we can do to improve this newsletter or any articles that you think would be valuable to our membership, please let us know.  Some of our best ideas come from our members.
 
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Author - Rick Bisio,  rbisio@educatedfranchisee.com