Northwest Territories Feature Articles

Build-A-Bear Workshop, in partnership with WiredSafety.org, is promoting October as "Stop Cyberbullying Month" at its stores and in its online virtual world, buildabearville.com. Cyberbullying, a growing problem among children, tweens, and teens, made national headlines in 2006 when a 13-year-old girl committed suicide after being bullied online by a group that included the mother of one of her former friends. The franchisor is focusing on online safety education and how to help prevent cyberbullying through several programs, by providing activities and materials to promote safe online 
play for kids, and by participating in a Stop Cyberbullying Coalition event on Capitol Hill on October 13.

It seems there really is a silver lining in every cloud. And the recent economic downturn has deposited a little of that silver at the feet of some multi-unit franchisees who can tolerate risk and don't mind a little "remodeling" work. Today, opportunities abound to buy distressed franchise units from other troubled or bankrupt franchisees--often for pennies on the dollar. If they have the stomach, these "rescuers" can snatch up these units, turn them around, and watch the dollars flow in.

Even in tough economic times, franchisors are stepping up and giving back to causes and organizations they - and their franchisees - believe in. Many of these activities fall under the radar, displaced by news and events deemed more immediate or important. What could be more important than raising money and donating time to help those in need, especially when budgets are pinched and time is at a premium? That's why we're taking the time to recognize our contemporary heroes.

Savvy franchise companies continue to flourish in this challenging economy. Each month FUSR will bring you good news, highlighting brands that are bucking the trend by adding units, increasing comp store sales, striking deals with investors, and continuing to grow despite the economy - maybe even because of it. And as you'll see below, U.S. franchisors continue to look overseas for expansion while the domestic economy remains slow.

Savvy franchise companies continue to flourish in this challenging economy. Each month FUSR will bring you good news, highlighting brands that are bucking the trend by adding units, increasing comp store sales, striking deals with investors, and continuing to grow - despite the economy.

To stand out among the 3,000 franchise opportunities in today's uncertain economy, aggressive concepts are courting prospects with special incentive and stimulus packages--such as Papa John's, Cafe2U, Budget Blinds, Kitchen TuneUp, Red Mango, and Discover Rental Purchase.

Starting up a new company is risky business, even in a healthy economy. Despite the troubles and fears that have plagued the economy and business world in the past year, many new franchise concepts have hung out shingles, and others that were just barely off the ground are thriving today.

Looking for a franchise opportunity in a "booming" industry? You might want to check out home health care for seniors. That baby boom blip that first appeared following World War II is now dipping into the golden years. As a result, the need for elderly care in America is on the rise and will remain in high demand for years to come.

Getting to know a little more about you as a prospect is one of the first things franchises are interested in. The initial franchise application process is a screening mechanism by which franchisors begin to determine your interest and qualifications. Today, it is common to find initial franchise application forms on franchisors' websites - but most will be happy to send you one as well. This is a good stepping off point for beginning the communication process. You should not only take this very seriously, but also expect to spend some time gathering the information and completing the application.

Retail franchising is the kind of business operation that most people are familiar with today. After all, everybody knows McDonald's and Taco Bell, but there's much more to know about retail franchising. Like its counterpart, service franchising, retail franchising offers its own set of pros and cons. There are advantages and disadvantages that make it unique. In the right circumstances, retail franchising can make a very good career choice and provide a healthy income for many people. But you'll want to do your homework and make careful considerations.

Anyone seriously considering the purchase of a franchise will ultimately have to decide if a "service" franchise or a "retail" franchise is a better fit. It's an important distinction in terms of both entry requirements and operational realities, and it's a decision that can determine your ultimate effectiveness as a franchise operator. First, a basic summary of some typical service franchise opportunities available today, here are just a few: trade and handyman (electricians, plumbers), lawn maintenance, landscape services, childcare, tutoring, education, business coaches accounting, bookkeeping real estate agents, travel agents, commercial, domestic cleaning, automotive-related services, computer-related services, and interior design/decorating.

What if there were a way to hire great, energetic franchisees who not only were excited about the brand, but also already knew it inside and out? Your next great franchise operators might be sitting right beside you at your next internal meeting.

As a student at Florida State University, the entrepreneurial spirit in Sam Osborne led him to own and operate a small personal training business. One of his clients was David Walker, who was soon to be a co-founder of Tropical Smoothie Café. Things have "worked out" well for both.

Looking to expand your multi-unit operation and add some units fast? There's a way you can add locations--and immediate cash flow--quickly, without the long wait and usual headaches associated with building a unit from the ground up. It's called refranchising, and it's hot.

You'd think selling franchises in one of the worst economies since the Great Depression would daunt even the hardiest franchisor. But many franchisors, both well-established and new to the scene, keep on plugging when the economy goes south. Some even consider this a great time to grow.

Many franchisors have reached their limit on expanding into suburbia, but the imperative to grow remains strong. In response, an increasing number are training their sights on America's cities.The move to the suburbs has been a decades-long trend in the United States, and franchisors have followed suit. But more than half of the U.S. population live in the country's top 25 metropolitan areas, and nearly 80 percent live in the top 100 metro areas.Cities are complex, crowded places, running the gamut from blighted ghettos to luxury high-rises. Suburban commuters flood into them by the millions each day to work and shop, creating a vibrant marketplace. And the under-served inner cities are hungry for retail goods and services, jobs, and entrepreneurial opportunity, making them fertile ground for franchisors who take the time to learn, understand, and develop relationships with the people who live there.The Initiative for a Competitive Inner City (ICIC), founded in 1994 by Harvard Business School Professor Michael Porter, studies inner cities with a focus on economic development. According to ICIC, "[T]he inner city retail market offers significant profit potential for retail companies now operating in the highly competitive, over-saturated suburban markets." According to an ICIC study, the country's inner cities contain:

John Smythe says he was a typical 21-year-old when he was drafted into the U.S. Army in 1965. "I was just kind of rolling through life and not really giving it that much thought," says the 62-year-old veteran today. The Army was a good experience for him, and where he learned the skills and philosophies he's using today as a CMIT Solutions franchisee in Everett, Wash.

Technology tools have become a mainstay for every multi-unit franchisee, used for planning, budgeting, forecasting, and many other daily activities. Today franchisees are embracing technology for demographic research and site selection.

It was like a gut punch for Charlie Marshall. In less than a year's time, the Spring-Green Lawn Care multi-unit franchisee went from paying $12 per bag for lawn fertilizer to more than $25 per bag. "That will make you look for ways to streamline and cut costs," says Marshall. To add insult to injury, gasoline prices were skyrocketing, making it even more expensive to fire up his seven trucks and dispatch crews to care for his customers' lawns each day.

Retailers have never been shy about enticing customers to buy through all kinds of incentives. Now a franchisor has followed suit. During the last quarter of 2008, Seattle-based Emerald City Smoothie was offering a "buy one, get one free" franchise promotion. Seriously.

"One day I had 1,000 people, the next day I had a hair salon with 5 stylists," says Richard Bielecki, Fantastic Sams regional owner for South Texas and New Mexico.

If you could get better performance from your franchisees and increase the overall value of your brand at little or no cost, you'd be crazy not to. That's the business proposition of business coaching. While it may sound like vendor pitch, this assessment comes from a growing number of franchisors and franchisees.

In these tight economic times, many multi-unit franchisees and area developers are focusing less on continuing the remarkable unit growth they've enjoyed for the past five years, and more on improving performance at their existing units. As consumer spending drops, savvy franchisees see increased royalty streams as a more attractive prospect than spending long hours with struggling franchisees, or worse, shuttering failing ones as the U.S. economy continues to sputter.

When your grandfather is one of the co-founders of a successful franchise concept and system, it might seem natural for subsequent generations to be involved. But that wasn't always the case for Justin and Sally Haddock. "My grandfather, Jack Fulk, along with Richard Thomas, co-founded Bojangles'," says Justin. "My mother and father followed suit and they have been franchisees since 1980." In fact, his folks still operate 39 Bojangles' locations today.

There was a time when franchise site selection was as simple (not to mention as rudimentary and often random) as pushing pins in a map on a wall. Maybe they turned out to be good sites, maybe they didn't. But as technology continues to evolve and the tools are recalibrated to further refine the site selection process, the art is becoming a science.

"Franchising works by combining the drive and energy of the entrepreneur with the experience and expertise of the franchisor." This wonderfully concise description of franchising comes courtesy of a franchisor from Down Under: Jesters Franchising, purveyor of Jesters Jaffle Pies (all-natural meat, vegetable, and fruit pies) with 50 units in New Zealand and Australia.

The Area Developer 2008 Multi-Unit Franchise Conference in Scottsdale earlier this year offered a vibrant kaleidoscope of franchise veterans gathered to share best practices. During the conference I had several discussions with franchisors that had used area representatives and area developers as an expansion strategy with varying degrees of success.

When Pat Williamson was a sophomore at the University of Georgia in 1969, he was home from school one weekend and heard about a summer job opportunity. A Frito-Lay route man stocking the shelves in Williamson's father's retail store had asked if there were any kids looking for a summer job. Williamson's grandfather overheard the request and passed along the info to young Pat.

During the past 20 years, we have witnessed a generation of multiunit franchise operators grow up. Today there are more than 40,000 of them.

Every year thousands of franchise companies pour money and other precious resources into lead generation and sales with varying degrees of success. But few rise to the top.