|
 |
 |
| Recent
Franchise, Distribution, & IP Articles |
| "The Top 10 Financial Mistakes Made By New Franchisees" |
|
For years my partner, Randy Evans, and I have been helping both franchisors and franchisees navigate the tricky waters of getting into the franchise world and then developing a franchise business. Many of our franchisee clients have gone from one unit to hundreds of units, and many of our franchisor clients have grown from a core group of businesses to become multi-national concepts. |
| more » |
 |
| “Troubled Franchisees: Franchisor to the Rescue?" |
|
Low consumer confidence, fickle consumer spending, unpredictable commodity costs, and tight credit markets are all causing distress throughout the franchised industries and injecting new stress into the franchisor-franchisee relationship. |
| more » |
 |
| "Today’s Real Estate Lease May Sometimes Be Too Good To Be True" |
|
Today’s real estate market can be seductive for the franchise business owner. Landlords are offering historic low rents, various allowances, and financing for the franchise business owner. These incentives can make it possible for the business owner to get into a good, if not a prime, real estate site for virtually little or no money. |
| more » |
 |
| "Who Will Prove to be World-Class Franchisors?" |
|
I had a recent discussion with one of my colleagues, Barry Blum. Barry has a unique view of the current financing and economic issues of the franchise world because he has served as both an inside lawyer and business person and as a private practice lawyer representing franchisees and franchisors. |
| more » |
 |
| "Financing Matrix" |
|
At the recent Franchise Finance and Development Conference in Las Vegas, John Hamburger and I discussed some of the unique ideas that have recently evolved in creating financing sources. Financing is certainly a different game than it used to be. This article highlights these unique ideas. |
| more » |
 |
| "Concepts For The Future " |
|
This month’s column will continue to highlight opportunities in the multi-unit retail world. Even though there is much continued talk of “tough times” in the media, there are new, emerging concepts that are growing and thriving. I want to focus on three groups I have the tremendous opportunity of being involved with. |
| more » |
 |
| "How About Some Good News and Good Ideas?" |
|
I am tired of listening to speeches, reading articles, hearing about conferences and webinars, and having every conceivable means of communication all tout the latest and greatest on how to manage in tough times. I am sure you are tired of these things as well. Many of these communications have the same ideas and thought processes. |
| more » |
 |
| "He Has A Dream" |
|
When I started writing for Franchise Times ten years ago, I had been practicing in the area of franchise finance for almost 20 years. All along I had a dream. I had a dream that each solid franchisee would be able to obtain financing for growth and acquisitions. |
| more » |
 |
| "Opportunities for Financing in Tough Times" |
|
I don’t have to tell you that franchise financing is tight. All you have to do is open up the Wall Street Journal, local newspapers or trade magazines to understand the present credit crunch. In my 30 years of working in the franchise space, I have seen many contractions and have been through many periods of time when franchise financing was virtually nonexistent. |
| more » |
 |
| "What Is My Franchise Business Worth?" |
|
In these tough economic times, the question I am asked most often is, “What is my franchise business worth?” This month’s column will outline a few key points that may be helpful in determining what your franchise business is worth. Also, you may want to look at the July 21st issue of Restaurant Research prepared by Wally Butkus at www.restaurantresearch.info. In the newsletter, Wally addresses the valuation issues with information he has gathered for franchise restaurants. |
| more » |
 |
| "Is Refranchising All It’s Cut Out To Be?" |
|
In recent months we have seen many franchisors selling off their corporate units. (This is commonly called “refranchising.”) There are many reasons for refranchising. For example, DineEquity (the franchisor for Applebee’s) feels their focus should be pure franchising and the capital investment necessary to own corporate stores is not part of their strategic plan. |
| more » |
 |
| "Gift Cards" |
|
This month we are going to discuss a very relevant topic in the whole multi-retail arena: gift cards and gift certificates. More and more franchise establishments are using gift cards, and they are becoming increasingly important for specialty shops and restaurants. |
| more » |
 |
| "Best Practices In Protecting And Enforcing..." |
|
Trademarks, copyrighted works, trade secrets and proprietary business information form the core of any franchise system, and are frequently a company’s most valuable assets. Trademarks, including service marks, logos, slogans and trade dress, define the brand identity as presented to the public. |
| more » |
 |
| "When Is It Time To Change Management?" |
|
Without exception, the success of any company, including a franchise company, is directly related to its leadership. Conversely, the root cause of a failed enterprise is without question the product of the decisions (and non-decisions) of its leader. Obviously then, determining when to replace the leader or the management team of a company will likely play a key role in determining the future of the enterprise. |
| more » |
 |
| "Not Much Help From The New Tax Law " |
|
This time of year a person’s thoughts turn to taxes, and the latest tax act is euphemistically called “The Small Business and Work Opportunity Tax Act of 2007.” This new tax act does not have a lot of good news, but it does provide a few special benefits to the franchise owner.
|
| more » |
 |
| "Reasonable Expectations" |
|
As background to this article, I would like to reference the recently distributed Asian American Hotel Owners Association (“AAHOA”) publication that listed their 12 points for fair franchising. (AAHOA is an influential hotel group.) |
| more » |
 |
| "With Insurance Covered Claims Be Wary Of "Out ... |
|
This month we will focus on one rising cost on your P & L – insurance. To assist in this discussion, I asked Jack Harper, one of my law firm partners with extensive experience in the insurance industry, to provide insight and practical advice to help you plan for and manage your insurance costs.
|
| more » |
 |
| “Tips
For Selling Your Franchise Business” |
|
The
selling price of franchise businesses has significantly
increased. Nearly every week someone asks
us if it is time to sell. Even though it
may be an appropriate time to sell in terms of
the market, it may not be the appropriate time
to sell in terms of your business cycle or being
prepared for selling. |
| more » |
 |
| “Creative Ideas For Tax Year-End Planning” |
|
Once a year this column attempts to provide the franchise business reader with tax savings and year-end planning ideas that are unique to the franchise world. The ideas in this column are starting points to discuss with your tax advisor and possibly incorporate into your year-end planning. |
| more » |
 |
| "New Types of Financing" |
|
For many years franchise financing has been effectively illustrated as a continuum. On the far right of the continuum is the most conservative type of financing - senior debt. Senior debt is dominated by banks and large commercial finance companies (e.g., GE, Bank of America, Wells Fargo and other groups). |
| more » |
 |
| “All Company Valuations Are Not Created Equal ” |
|
“What is the value of my company?” is a question I am frequently asked. In the franchisor world (whether it be franchisors or franchisees), we usually focus on a multiple of earnings. In recent times the multiple of earnings have been going up; and there has been a feeding frenzy as it relates to the purchase of franchise companies. |
| more » |
 |
| “New View of the Franchise Business Plan” |
|
Franchising, by definition, requires standards. A franchise generates profit and controls quality through uniquely defined operating procedures, processes, and policies designed to consistently deliver a product or service to consumers. |
| more » |
 |
| “A Quick Preview of 2006 in the Franchise Finance...” |
|
Two key words in the franchise finance world for 2006 will be “multiples” and “activity.” It is apparent, through recent and pending transactions, that the valuation Multiples (the cash flow from the target business times a multiple) are at historic high levels. |
| more » |
 |
| “How Do You As A Franchisor Stack Up?” |
|
Last month’s column highlighted ways franchisees can be effectively compared, both to other franchisees within their franchise system or franchisees in general. A comparison approach is very subjective but this industry lives on comparisons. Even without this competitive approach, it is important to understand a franchise business in relation to other franchise businesses. |
| more » |
 |
|