Relationship Building Because It's Easier To Blame Franchisees Than Many Franchisors Like to Admit.

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Photo by rawpixel on Unsplash

By Gary Occhiogrosso- Founder of Franchise Growth Solutions, LLC.

The Importance of Franchisors Building Relationships With Their Franchisees When Onboarding new franchisees the franchisor should always remember that a common thread to success is the franchisor’s culture of support, co-operation, communication, education, and profitability with their franchisees. Building an ongoing relationship with its franchise community can mean the difference between growing a restaurant brand to hundreds of units or failing before ever making a mark in the industry.

Without these critical components in place, a restaurant franchisee can quickly go “off the rails” and compromise brand standards. It’s not long before many of these franchisees negatively redefine the brand. Poor service, improperly prepared menu items, lesser quality ingredients and overall appearance and cleanliness of the restaurant are just a few reasons why a healthy relationship with your franchise owner is essential.

It Starts At the Beginning.

Creating the proper franchisor /franchisee relationship builds success for both. This relationship building must begin right from the start. Successful restaurant franchisors know that ramp-up time and getting a new restaurant profitable takes smart planning and hard work by both the franchisor and the franchisee. The training, support, communication and ongoing assistance the franchisee receives early on in the relationship can set the tone for the entire term of the franchise agreement.

One of the most crucial steps a franchisor can take begins when selecting a franchisee. Franchisors should conduct an in-depth interview as part of a thorough vetting process. Along with the obvious discussions such as past management and business experience, time commitment to the operation and funding, franchisors must also explore the core business values of the franchise candidate. Spending this time upfront to examine the candidate’s vision, expectations and the overall business plan goes a long way into understanding if the potential franchisee shares common goals with the franchisor. It is also the first step in building brand value and a robust, lasting business relationship.

Increase Your Communication And Reduce Your Failure

New businesses can fail for a variety of reasons. Although the vast number of restaurant failures are due to undercapitalization, it could also be the result of substandard operations, inefficient marketing, poor location and changing consumer trends. In addition, a failure in a franchised restaurant may be the result of the franchisee working outside the franchisor’s branded system. Franchisees can destroy their business by implementing procedures and introducing products that are counterintuitive to the brand image. Franchise owners often lack the time, experience and money to do proper research on a new product or a new procedure, never realizing that it may disrupt the entire system. Conversely, franchisors must always be aware and teach the idea that “everything touches everything else.” Building a healthy relationship and a clear channel of communication with the franchise owner can often prevent franchise owners from circumventing the system in the first place.

Harold Kestenbaum noted franchise attorney who has specialized in franchise law and other matters relating to franchising since 1977 explains: “Over my forty-plus years representing franchisors, I have seen too many franchisors fail because they do not realize how important it is for their franchisees to succeed and make money. Franchising is a two-way street, and to be a successful franchisor, you, as the franchisor, must understand this and make it happen. Franchisors cannot be successful if they think that it’s only them who should make money. Ray Kroc knew that franchising could only work if the franchisees made money along with the franchisor. Supporting your franchisees from the outset, and not when they are choking is imperative and franchisors need to realize this. One such way to make this collaborative effort work is by creating a franchisee advisory board. Franchisors with more than ten franchisees need to implement this without the franchisees asking for this. A franchisee advisory board will show the franchisees that you are trying to make them be a part of the system and that you want their input. Franchising is not an autocratic method of doing business; it is a collaborative method of doing business.”

Looking in the Mirror Helps

It’s easier to blame the franchisee for failure than franchisors like to admit. Franchisee behavior is often a reflection of the franchisor. Some franchisors are quick to dismiss why proper onboarding, relationship building, creating brand value, and adequate franchise support are vital to the success of the new business. When a franchisee loses confidence in the franchisor, it is complicated to turn back. Franchisees stray or “go rogue” because franchisors fail to supply the “rails” that the franchisee must run on.

An open, working relationship between the franchisor and the franchisee is the most important aspect of brand success. Franchisors must take a very active role in the franchise operation, perhaps more than they want. Supplying great tools, conducting superior training, regular visits to the restaurant to evaluate the goals and progress of the business is a crucial commitment a franchisor must make. Communication, transparency, ongoing coaching and counseling are the essential elements of relationship building. The ROI for these efforts will be opening hundreds or even thousands of franchised restaurants locations.


With A Focus On Healthy, High Quality Menus, Quick Service Restaurants Sprint In A New Direction

August 25th, 2018 · No Comments

As enticing as these food offerings may be to our palate Consumers may find themselves paying almost double what they would at a traditional fast food location. Locally sourced, organic and sustainable food suppliers still see this segment as small compared to conventionally processed ingredients, so access and availability remain a challenge.

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Photo by Jade Wulfraat on Unsplash

 With A Focus On Healthy, High Quality Menus -  Quick Service Restaurants Sprint In A New Direction
By Gary Occhiogrosso

As recently as 15 years ago the idea that you could grab a nutritious, healthy and still tasty meal from a drive-thru or fast food restaurant was unheard of. It wasn’t until the post Y2K era that fast food consumers became concerned with what they ate. As the Millennial generation started spending money on food outside the home the industry has been “forced” to move toward healthier, high-quality menu alternatives. Once begun this movement toward fresher, greener menus has continued to accelerate at an ever increased pace.

Does Better for You equal Better for Business

Consumer attitudes regarding the link between diet and health have shifted. Data shows that Millennials and aging baby boomers are taking a more proactive approach to healthy eating. Many have adjusted their dietary choices to promote better health. The demographic with higher levels of education and more disposable income is at the forefront of this trend. These health-conscious consumers take the time to research before they dine out. In addition, they seem more willing to pay higher prices to ensure that what goes into their bodies is nutritious.

With this new consumer focus on nutrition, sustainability and ‘clean food’ comes a revolution in the Quick Service Restaurant (QSR) industry. According to a recent article in Business Leader, 83% of Americans believe that fast food from traditional Quick Service franchises is not healthy. This has created the rise of the ‘better for you’ brands that now compete with fast food giants such as McDonald’s, Burger King, and KFC. For example, healthy quick service brands such as Dig Inn, By Chloe, and Sweetgreen are creating their own niche by specializing in organic, locally sourced meal options that contain more vegetables and fewer calories than traditional burgers and fries.

Quality comes with a Cost
As enticing as these food offerings may be to our palate Consumers may find themselves paying almost double what they would at a traditional fast food location. Locally sourced, organic and sustainable food suppliers still see this segment as small compared to conventionally processed ingredients, so access and availability remain a challenge. As a result, many healthier focused chains are developing altogether new selling propositions by positioning “value with reasons” as a way to compete with the traditional fast food chains of the industry. These “better for you” concepts post nutritional information, health benefits as well as the sourcing and methods used in their products. The emphasis is on local, clean, humanely raised and organic.

One such concept is Salad and Go. Branded as a healthy drive-thru option, Salad and Go offers large salads, smoothies, soup and breakfast with an “Always Organic” list of ingredients. In addition, the brand highlights their competitive prices. Salad and Go currently has in 10 locations in the U.S. with plans to nearly double that number by the end of 2018.

Another U.S. chain, LocoL, offers food made only from local ingredients. Founders & Chefs Roy Choi and Daniel Patterson claim “We at LocoL want to live in a world where eating healthy doesn’t take a lot of money or time.”

New quick service food concepts like these are branding their menu items as healthy, high quality alternatives to the sugar, fat, and salt-heavy meals provided by traditional fast food franchises. Recently developed QSR concepts give consumers a choice. Whether it’s organic, farm to table, all natural, gluten free, vegan or humanely raised, the race to innovate and meet this rising consumer trend has never been more of a priority in the Quick Service Restaurant segment than it is today. Communicating the business and its differences clearly, and simply is one of the keys to a restaurant's success and that of your franchisees. 

Forcing Innovation in Traditional Brands
As new brands continue to make their mark in the minds of U.S. consumers, established brands are attempting to keep up with changing demands. Fast food chains such as Taco Bell have promised to use cage-free eggs and reduce artificial ingredients, and McDonald’s has started selling antibiotic free chicken, and now cooks many of its items to order and offers more salads. It is yet to be seen if that alone will be enough to keep the long-standing leaders in the QSR industry on top.

Serving up Quality, Quickly and Consistently
These QSR pioneers are faced with the challenge of living up to the expectations of an informed, proactive consumer. These newer concepts must not only live up to the marketing message but also ensure that their operations can provide consistent, quality products in every location. Their business models must be replicable and easily managed.  This may also prove to be a challenge when food is being prepared to order using fresh locally sourced ingredients instead of processed or precooked menu items. If they can accomplish these tasks, the potential for growth is unlimited.

Regardless of the challenges facing these new “better for you brands”, the move away from traditional fast food to healthier quick service food options is unstoppable. As a means to address consumer concerns, in late 2017, the FDA announced new regulations requiring large restaurant chains to add calorie counts to their menus by 2018. This, combined with health-conscious consumers, will continue to push these new QSR chains to sharpen their competitive edge by offering a wider variety of great tasting, healthier options. As I see it, the success of the “better for you” fast casual concepts will depend on their adaptability to trends, consistency in product, as well as the price point and expense management.
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About the Author:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with its founders. He is the former President of TRUFOODS, LLC a multi-brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growing brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition, Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales, and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast over AM970 in New York City and the founder of FranchiseMoneyMaker.com



Benefits of a restaurant Inventory and Theoretical PrograM

Today's post is written by recognized restaurant operations expert Fred Kirvan.  I've had the privilege of working with Fred (almost 20 years) on various projects building scores of franchised Fast Casual restaurants. Today Fred discusses the importance of creating an accurate, detailed and evolving inventory and theoretical Cost of Goods program. Franchised as well and independent restaurant operations should take the time to learn how to build an use such a program. It will not only help you save money but more importantly will create a better system for overall results with or without your daily participation in the operation.
- Gary Occhiogrosso, Founder - Franchise Growth Solutions, LLC
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"Performing regular inventories will serve to organize your stores as attempting to perform an inventory in a disorganized store will take twice the amount of time.  As part of the integration of this program, we will teach managers and franchisees how to perform accurate and effective inventories."
  By Fred J. Kirvan FK Consulting   

By Fred J. Kirvan
FK Consulting

 

I deal with numerous franchisors and restaurant operators and still can't understand why so many do not employ a good inventory system. In fact, the sad truth is some don't even conduct a weekly or monthly inventory...Instead, they use purchases to somehow (and inaccurately) calculate their Cost of Goods (COG's). Today I will attempt to explain why it is critical for professional restaurant management that you have a detailed Inventory and Theoretical COG's Program.  A 3%-5% saving in COG's can add up to tens of thousands of dollars. Remember, this saving goes directly to your bottom line, not to mention the increase in accountability of your operation whether you participate in the day to day operation or not.

Here are just a few benefits of using such a program

1.  Provides the ability to conduct a monthly audit on your purchases when the program's Master Inventory Sheet is updated each month by you or someone in your organization. These audits should be updated internally.

2.  The process of developing this program serves to streamline your order guide by having to determine which products you will use moving forward as they are now tied to menu and recipes within the program.  What that means is your order guide gets cleaned up by removing duplicate or unnecessary items.

3.  In addition to a Theoretical Food Costing Program, it will also include Inventory Sheets for performing accurate physical inventories.  

    a.  Performing regular inventories will serve to organize your stores as attempting to perform an inventory in a disorganized store will take twice the amount of time.  As part of the integration of this program, we will teach managers and franchisees how to perform accurate and effective inventories.

     b.  By having theoretical and physical inventory in one program we can immediately identify down to the penny, the difference which should be accounted for discounts, employee meals, and waste.  The unaccounted-for amount is then either over portioning, shrinkage or theft.  Without this information your operating blind.

4.  This process will streamline your Recipes, portioning must be solidified to achieve costing which serves to assist with the consistency of menu offering as well.

5.  This process will streamline your Plate Builds, portioning must be solidified to achieve costing which serves to assist with the consistency of menu offering as well.

6.  Once the program is completed:

a. You'll immediately be able to identify higher and lower costed menu items. 
             
  *** i.  With that information, you may elect to change the portioning and/or pricing to remedy the issue having an immediate impact on your costs.
            
 *** ii.  Additionally, repositioning lower cost items on the menu will also serve to immediately lower costs as well.
      
b. You'll be able to see the immediate impact on your overall food cost as a percentage and dollar amount by changing costs from your distributor.
      
c.  You'll be able to see the immediate impact on your overall food cost as a percentage and dollar amount by changing portions on menu items.
      
d.  You'll be able to see the immediate impact on your overall food cost as a percentage and overall dollar amount by changing prices on your menu items.

Quite simply, no professionally managed restaurant group can or should operate without this level of information - certainly not having this level of detail on your menu offering will heavily impact your ability to recruit multi-unit franchisees in the future.  

For more information on building and using an Inventory and Theoretical Program and for a FREE Consultation please contact info@frangrow.com or call (917) 991-2465
Visit <a href="http://www.frangrow.com">www.frangrow.com</a>
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About the Author:
FRED KIRVAN
Founder FK Consulting 

Fred started in the franchise business in 1991. Working with the founder of Desert Moon Fresh Mexican Grille he developed the operating systems and grew the company from a single unit into a multi state, 30 unit franchised brand. In 2008 he became President of Desert Moon remaining in that role until 2013

Mr. Kirvan was then recruited as the Chief Operating Officer for TRUFOODS, LLC. a 100 unit, multi brand franchise company that included Pudgie’s, Wall Street Deli, Ritter’s Frozen Custard and Arthur Treacher’s Fish and Chips.

Upon leaving TRUFOODS he became VP of Operations for Energy Kitchen; a NYC based fast casual chain which pioneered the "healthy alternative"  space before leaving to launch an early learning & play center business "Moozie's Play Cafe" with his wife. 

Working in a variety of capacities in food and non food business' Mr. Kirvan's experience in systems development, writing manuals, brand connectivity, purchasing and construction project management have proven invaluable assets to start up & emerging brands. 

Currently FK Consulting works to develop a full suite of Confidential Franchise Manuals which include Operations, Managing the Business, C&D and other critical Job Aids and Training Tools necessary to grow and enhance the process of devloping successful franchisees. 



PRESS RELEASE - Acai Express On Fast Track To East Coast Expansion

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Acai Express® will be featured at the Franchise Growth Solutions Pavilion (booth #346) at the 2018 International Franchise Expo (IFE) May 31-June 02 at the Jacob Javits Center in New York.

For Immediate Release
Contact Gary Occhiogrosso
email at info@frangrow.com

Acai Express On Fast Track To East Coast Growth
Leading Organic Super Food Franchise soon to take on New York and New Jersey

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NEW YORK May 09, 2018
Acai Express®, the Puerto Rico-based chain that offers a fresh fruit and nutrient-rich menu for healthier living, is focused on opening its first New Jersey location in 2018. Acai Express®’s next location will be the fourteenth (14) fast casual super food shop for the brand. From its humble beginning as a surf side food truck, Acai Express® currently has twelve (12) locations in Puerto Rico and one (1) stateside location in Cocoa Beach, Florida.

”The preference for a healthy lifestyle and the demand for a super food based diet has never been stronger.” Says Acai Express® founder, Hector Westerband. He envisions Acai Express outposts in every city in America and around the globe. The cornerstone of his fast casual shop’s menu is the acai berry, a purple, antioxidant-rich stone fruit that hails from the Amazon River basin. Through his work with Brazilian farmers, Westerband is helping support the communities in which the berry is grown, preserve the rainforest from further deforestation, and bring social responsibility to his franchise concept.

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“As the leader in 100% organic Grade A acai and a menu that includes acai, oatmeal and pitaya bowls, smoothies, salads, juices and lemonades, Acai Express offers high quality, high nutrient meals, grain bowls, and/or desserts for active consumers.” Westerband adds, “While research has shown that Americans are willing to pay more for healthier foods, at Acai Express they don’t have to! Acai Express® offers convenient, affordable, and delicious food that is good for you – and that feeds the mind, body and soul.”

Acai Express® has teamed with franchise industry expert, Gary Occhiogrosso, founder of Franchise Growth Solutions, LLC, to expand the turnkey Acai Express® fast casual QSR (quick service restaurant) business model from thirteen (13) in 2018 to twenty-five (25) locations by 2020. Acai Express® is expanding in NY, CT, PA, NJ and along the eastern seaboard.

Acai Express® will be featured at the Franchise Growth Solutions Pavilion (booth #346) at the 2018 International Franchise Expo (IFE) May 31-June 02 at the Jacob Javits Center in New York.

 

ABOUT ACAI EXPRESS®
Acai Express® is an Acai-based super food shop that uses fresh and organic ingredients to create nutrition-rich meals for active and adventurous consumers who are proactive about their health and wellbeing. From one surfside food truck in Puerto Rico in 2013, Acai Express has grown into a recognized lifestyle brand available in 13 locations in the Puerto Rico and the U.S. Acai Express combines the growing trend toward one-bowl meals, super food ingredients, and fresh fruit smoothies in a socially responsible business model.

ABOUT FRANCHISE GROWTH SOLUTIONS, LLC
Franchise Growth Solutions, LLC is a strategic planning, franchise development and sales organization offering franchise sales, brand concept and development, strategic planning, real estate and architectural development, vendor management, lead generation, and advertising, marketing and PR including social media. Franchise Growth Solutions’ proven “Coach, Mentor & Grow®” system puts both franchisors and potential franchisees on the fast track to growth. Membership in Franchise Growth Solutions’ client portfolio is by recommendation only.

For more information on ACAI EXPRESS® fast casual restaurant concept, please visit acaiexpress.com. For information on owning an ACAI EXPRESS® franchise, please contact Gary Occhiogrosso at info@frangrow.com

Franchising and Succession Planning

The key is to create the best succession plan for your current circumstances. Revisiting, re-evaluating and if necessary, updating your plan should be done annually or whenever a major event takes place in your personal or the life of the business. Succession planning requires that you seek financial and legal advice from a trusted, professional and experienced planner. Your advisor can you help you assess the best route to take, create a plan and eventually assist in carrying it out. Your succession plan should also address a number of strategic business moves.

“Franchising and Succession Planning”
By Gary Occhiogrosso
Founder – Franchise Growth Solutions, LLC.

Succession planning is not a topic that many small business and franchise operators what to think about. In addition to it’s often times negative connotation, its priority can sometimes be lost in the everyday whirlwind or running a business. Nonetheless, the topic is critical not only to address the question of succession should you suddenly pass away, but what role it plays in your overall business exit strategy.

When you are creating a succession plan for a franchise business, you must make important decisions and answer a number of questions. For example; these decisions may involve selling your business, transferring it to a family member or shutting it down completely? Other considerations may include whether you want to a structure your plan so that it can be executed during your lifetime, or at your death? Keep in mind, as a franchisee your options may be limited to any guidelines or rules set forth in your franchise agreement.

The key is to create the best succession plan for your current circumstances. Revisiting, re-evaluating and if necessary, updating your plan should be done annually or whenever a major event takes place in your personal or the life of the business. Succession planning requires that you seek financial and legal advice from a trusted, professional and experienced planner. Your advisor can you help you assess the best route to take, create a plan and eventually assist in carrying it out. Your succession plan should also address a number of strategic business moves. In fact, it should layout guidelines for the possibility of a sale, merger or a capital raise. It is important to state that a franchise succession planning is more than just anticipating the owner’s desire to sell the business, death or retirement. You must also consider the fact that an owner can become disabled, have conflicts with other business partners or simply approach the end of the term of a franchise agreement.
For a franchised business a plan may include the current franchisee identifying a successor, where the franchisor must then approve the successor franchisee. You may be limited to who may purchase the business or if you are allowed to transfer the franchise to a family member that would otherwise not meet the franchisor’s criteria for acceptance as a franchisee.
As you can imagine there are numerous exceptions and issues that come into play. Hence, it is important to build a successful succession plan as part of your overall Business Strategy. Many franchisees and small business owners prefer to ignore succession planning but the consequences of no succession plan can destroy years of hard work and built up equity in your business. As I have often been quoted as saying, “in business, everything touches everything else”.
Tips for a Successful Succession Planning

Consider the family dynamics
Even though the succession planning may include the family members, the existing franchise owners may also need to objectify the future leadership. Start by finding out which family member possesses the right skills, experience, and knowledge.

Selecting the right advisors
Franchise owners should seek legal guidance from the team of legal advisers. This may include attorneys, accountants, business consultants and other trusted advisors.

Realistic decisions
Be realistic about the business value. It is important to have a third party place a value on the franchise to help understand the framework and parameters of the franchise transfer.
Major Issues to Consider When Succession Planning
Are there any restrictions (external or internal ) imposed by the franchisor.
A detailed and a comprehensive buy-sell agreement funded with adequate insurance to buy out the interest of the deceased partner
A well-defined management strategy that determines who is immediately available to undertake the management functions when uncertainty prevails

Reference
Griga, M. (2018). Succession planning Archives – Commercial Associates. [online] Commercial Associates. Available at: https://www.caaa.biz/tag/succession-planning/ [Accessed 1 Apr. 2018].

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SKINNYPIZZA opens in Greenwich Connecticut - Pizza that is "BUILT WITH NO GUILT"

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FOR IMMEDIATE RELEASE:

SKINNYPIZZA® opens in Greenwich CT

Healthier Take on NY Style Pizza Adds 5th Fast Casual Restaurant

Now, diners pay one price and build their own custom SkinnyPizza® from a large selection of fresh toppings -Built With No Guilt®.”

— Joe Vetrano, FOUNDER AND CEO 

GREENWICH, CONNECTICUT, USA, April 11, 2018 /EINPresswire.com/ --

Skinny Pizza Franchisees and Greenwich residents, Dr. Denis and Eleni Bouboulis said “We are really excited to be opening a SkinnyPizza in the Greenwich community. We fell in love with the SkinnyPizza® concept and believe it's a great addition to Greenwich Avenue.”

NEW YORK - APRIL 11, 2018
www.skinnypizza.com 

SkinnyPizza®, the New York City-based chain that offers a healthier take on traditional New York-style pizza, will open its first Connecticut location on April 11, 2018 at 30 Greenwich Avenue in Greenwich, Connecticut.SkinnyPizza®’s new location, the only pizza eatery on Greenwich Avenue, is making its home in a building first constructed in 1875 and is part of the Greenwich Avenue Historic District listed on the National Historic Register.

Skinny Pizza Franchisees and Greenwich residents, Dr. Denis and Eleni Bouboulis said, “We are really excited to be opening a SkinnyPizza in the Greenwich community. We fell in love with the SkinnyPizza® concept and believe it's a great addition to Greenwich Avenue.”

Bouboulis adds, “SkinnyPizza® flavor-packed, thin crust pies are lower in calories and made using all natural, potassium bromate free flour.”

SkinnyPizza® also offers a menu of pastas, salads and soups, all with a healthier take on traditional Italian favorites.

SkinnyPizza® was founded in 2009 by Long Island veteran restaurateur and CEO, Joseph Vetrano. He describes SkinnyPizza® as “real pizza, real thin.” From his experience working in his family’s pizza and pasta restaurant, Vetrano saw the trend to cut carbohydrates and calories in classic food stuffs - and offer a level of interactivity to the process. Now, diners pay one price and build their own custom SkinnyPizza® from a large selection of fresh toppings. Vetrano calls his custom SkinnyPizza® pies, “Built With No Guilt®.” Vetrano continued by announcing that SkinnyPizza® plans to roll out a new Cauliflower Pizza Crust”

SkinnyPizza® will cater to Connecticut consumers who, like ninety-three percent (93%) of Americans, enjoy pizza monthly, and the two-thirds who opt for a thin crust pizza variety, according to Statistic Brain in 2018. The SkinnyPizza® menu was designed for those that are health- and environmentally conscious, with pizza sauce made from organic tomatoes and pasta dishes made from organic, GMO-free, egg-free, cholesterol-free, low-sodium, high-fiber pasta. The location also offers a line of soups that include vegan, vegetarian, dairy-free and gluten-free options.

The Greenwich Avenue SkinnyPizza® location will open in Connecticut on April 11, 2018 with a ribbon cutting at 10amET. Local politicians and members of the Chamber of Commerce will be on hand to conduct the ceremony. To celebrate the Grand Opening, SkinnyPizza® will offer one dollar ($1.00) priced pizzas from 11:30am to 2:30pm to 500 customers who present a redeemable ticket on-site. Street teams locally will distribute the tickets to Greenwich Avenue shoppers and merchants in the days leading up to the Grand Opening. SkinnyPizza® will also provide the Greenwich Chamber with pizza samples at their Business Showcase on April 26, 2018.

SkinnyPizza®’s Greenwich location joins other franchises & company owned restaurants in New York City, Long Island, Dallas, Pennsylvania and Saudi Arabia. Vetrano has teamed with franchiseindustry expert, Gary Occhiogrosso, founder of Franchise Growth Solutions, LLC, to expand the turnkey SkinnyPizza® fast casual QSR (quick service restaurant) business model from five (5) locations in 2018 to fifteen (15) locations by 2020. SkinnyPizza® franchises are currently available in NY, CT, PA, NJ and along the eastern seaboard.

Mr. Occhiogrosso has over 30 years’ experience in franchise development and was integral to the success of nationally recognized brands including Ranch *1, Desert Moon Fresh Mexican Grille, and brands found under the multi-brand franchisor, TRUFOODS, LLC.

ABOUT SKINNY PIZZA® 
SKINNYPIZZA® is the first fast casual pizza concept emerging from the New York market; the home of some of the greatest tasting pizza in the country. SKINNYPIZZA® has transformed pizza, one of America’s most popular food options, into a healthy food choice that raises the consciousness of nutrition and health. SKINNYPIZZA® is categorized as fast casual dining that offers custom made pizza, organic salads, soups and pastas. SKINNYPIZZA®'s diverse menu prides itself on using fine ingredients with no preservatives or additives. The ingredients used are delivered fresh daily from local markets. The tomatoes are 100% organic and the meats are hormone and nitrate free. The pizza crust is made using all natural flour, potassium bromate free. The guests choose from original white crust, wheat or gluten-free and can build their own custom pizza according to their dietary preference. All-natural Stubborn sodas are among the beverage selections available.

ABOUT FRANCHISE GROWTH SOLUTIONS, LLC
Franchise Growth Solutions, LLC is a strategic planning, franchise development and sales organization offering franchise sales, brand development, strategic planning, real estate and architectural development, vendor management, lead generation, and advertising, marketing and PR including social media. Franchise Growth Solutions’ proven "Coach, Mentor & Grow®" system puts both franchisors and potential franchisees on the fast track to growth. Membership in Franchise Growth Solutions’ client portfolio is by recommendation only.

For more information on SKINNYPIZZA® fast casual restaurant concept, please visit skinnypizza.com. For information on owning your own SKINNYPIZZA® franchise, please contact Gary Occhiogrosso at 917.991.2465 or via email at gary(at)skinnypizza(dot)com

CONTACT: Gary Occhiogrosso
Franchise Growth Solutions
917.991.2465
gary.skinnypizza.com
www.frangrow.com



Franchisor education video onboarding new franchisees

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Enjoy the first edition in our franchisor education video series. This session covered the topic of "Onboarding" new franchisees.  Our panel of experts share tips for successful growth of your franchise company. Our panenist: Robyn Elman, Paul Samson, Jason Mazzerone, Ed Teixeira.  Hosted at Harold Kestenbaum's Franchise Forum in Melville, NY  

Watch the video here:

https://www.linkedin.com/in/gary-occhiogrosso/detail/recent-activity/shares/

The full 1 hour session is available by contacting info@frangrow.com 

 #franchising#brand#Entrepreneur#Betheboss#Profit#IFA#Internationalfranchiseassociation#Gardenstatefranchiseassociation#SBDC

 

Why Franchisees Go Rogue and What to do About it

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Among the best ways to keep franchisees from changing or competing with your brand is to have an ever-evolving brand that creates financial opportunity for the franchisee. Another great technique is to set up “Franchise Advisory Council” so franchisees are made to feel that their opinions, input and feedback matters to the success of not only their individual unit but also the brand as a whole.

Why Franchisees Go “Rogue” and What to Do About It

How to prevent a problem from occurring in the first place.
By Gary Occhiogrosso – Managing Partner, Franchise Growth Solutions, LLC.

One of the problems facing franchisors is when franchisees choose to go “rogue” by changing how they run the system or they take proprietary knowledge to compete with the brand. There are famous cases where slight changes to a name, but similar advertising and business models landed franchisees in court. One that stands out is Mister Softee, Inc. vs. Tsirkos in 2014. The franchisee copied the ice cream brand’s trucks and even operated under the name Master Softee. Needless to say the “real” Mr. Softee won out in that case. However, time, energy and money were spent on something that may have been avoided in the first. Why do franchisees make these decisions? Sometime its just in their nature or personality to take a position of “knowing better or more” than the franchisor. Although many times it’s because the franchisor is not living up to the franchisee’s expectations or worse yet, offing little in the way of field support, innovation and/or ongoing education designed to help the franchisee drive sales into their establishment. As a result a franchisee may sometimes feel abandoned and then goes into “Survival Mode”.

Ways to Keep Franchisees from Competing with Franchisors
Among the best ways to keep franchisees from changing or competing with your brand is to have an ever-evolving brand that creates financial opportunity for the franchisee. Another great technique is to set up Franchise Advisory Council so franchisees are made to feel that their opinions, input and feedback matters to the success of not only their individual unit but also the brand as a whole.

Of course how the franchisor communicates with its franchisees is a key component to success. It’s not enough to issue reports and statements concerning policy changes and procedural updates. You’ve got to meet face-to-face and make the franchisees part of the discussion. Field visits are integral in developing strong report with the individual franchise owner. An open, transparent approach to issues facing franchisee can make all the difference in the world. This approach will surely help when a franchisee is contemplating reinventing the wheel or leaving the system all together.
When issues of operational compliance do come into play (and they will eventually) you’ll need to demonstrate why following the system is the way to success. Franchisors should be confident they are making legitimate requests of the franchisee by making sure all the franchisor’s processes have been fully tested and proven to be successful. If this is the case, then in my experience, even the most difficult franchisees will have reason to follow suit although they may be reluctant to do so at first. It’s also import to keep an open mind and listen to the franchisee. When franchisees feel they are “heard” they are far less likely to go rogue. Critiquing does a lot but encouragement does a lot more. Creating a culture of open communication will go miles in preventing rogue franchisees.

What Protections are in Place for Franchisors?
Spending time to coach, counsel, correct and encourage franchisees does not mean the franchisor should ever give up their rights and remedies under their franchise agreement. And when a rouge franchisee is damaging the brand or the system or both and if a resolution cannot be reached then unfortunately the only choice is to terminate the relationship. Your franchise agreement should clearly state the terms and conditions for termination. That said, following one basic principle of communication and transparency should prevent this from happening. However if a franchisee does go rogue, then swift and decisive action must be taken to protect your intellectual property and your other franchisees.
Avoiding rogue franchisees requires skill, work and constant improvement on the part of the franchisor. The lines of communication between franchisors and franchisees must remain open and clear. Setting expectations early in the approval process and onboarding is key. Expectations must be spelled out clearly from the beginning. All these small steps, when combined and practiced regularly will help to prevent rogue franchisees.
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About the Author:
Gary Occhiogrosso is the Managing Partner of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm.
Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital.
Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with it’s founders. He is the former President of TRUFOODS, LLC a 100+ unit, multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry
Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He is also the host of the “Small Business & Franchise Show” broadcast over AM970 in New York City and the founder of FranchiseMoneyMaker.com

How to Develop a Franchise Model

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5 Factors to Consider When Developing Your Franchise Model

A well-thought-out franchise model is a great way for successful businesses to grow, and for entrepreneurs to work within a secure environment. But before you consider going the franchise route, however, franchise lawyer Harold Kestenbaum recommends that you consider the following 5 factors to guarantee that your business operates at peak capacity.

1. Your franchise model must be based on an existing and functioning business.

An idea is just an idea until it is proven in the physical world. Your franchise needs a successful starting point before it can become an actual chain. Until you can prove that the original model that you want to expand can be consistently solvent, you will not only have a hard time making sure the next location is functional, but you will have a harder time selling it to a franchisee in the first place.

2. The model must be replicable in order to successfully become a franchise.

Many factors go into determining whether a business is profitable or not, and unfortunately these may not be as universal or constant as one might hope. When attempting to transform an effective business model into a franchise program, doing so can require a lot of research and strategy in order to recreate the circumstances that made it productive in a new area.

3. Be mindful of the money.

There can be a great deal of numbers to crunch when developing the framework for franchising, and you should have a minimum of $75,000 to $150,000 in capital ready before you even consider acting on your model. You will need to tap into expert advice — and legal advice from franchise attorneys like Harold Kestenbaum — regularly as you navigate the complex structuring of a franchise plan.

4. Operations must be delegated properly.

A key aspect of ensuring your model will be successful is making sure the franchise is suitably managed. This entails not only choosing the right leaders in any new locations, but also possibly bringing in new personnel for both your primary business and overseeing the franchise as a whole. Your model will need to maintain self-sufficiency for every location in your chain, including your original operation, as it is not advisable to micromanage every establishment in a franchise.

5. Maintain your brand.

Above all, you have to mind your brand. Every location in your franchise represents your company and its image. The development of your franchise model should incorporate what you expect from your brand and communicate that effectively to your franchisees and your customers.

A franchise lawyer like Harold Kestenbaum is integral to much of this process and can keep you properly informed of important issues such as trademark registration and contract disputes. Check out Harold Kestenbaum’s questions and answers to franchising your business or Contact Harold Kestenbaum for a free consultation before moving forward with your franchise development model to avoid running into legal pitfalls later.



Getting New Franchisees off to a Great Start

 

This approach helps franchisees adapt as the brand grows and systems evolve. Preparing franchisees to deal with the issues that may come up along the way is key to building a successful franchise system. Ultimately solid onboarding and training should expose the franchisee to detailed information so the franchisee knows what the company expects and they can live up to the “Brand Mission”.

"Prepare them for business ownership through the onboarding and training process."

By Gary Occhiogrosso – Managing Partner of Franchise Growth Solutions, LLC.

When training new franchisees, there is a term that is used regularly but has received a lot of criticism “Onboarding” Many Franchisors believe that the “onboarding process” begins once a candidate is awarded the franchise. I coach this process in a different way. At Franchise Growth Solutions we know that the onboarding process begins from the very first interaction the company has with the franchise prospect.

That said, let’s take a step back and first explore the goal of proper onboarding. In my opinion, the main focus is to create value for the brand in the minds eye of the candidate. Without value and respect for the brand, all the training in the world will not produce a franchisee capable of living up to his or her full potential as the operating franchisee.

Although franchisee training is often seen as a means to an end because of how quick paced it is and how much information is packed into training sessions, in and of itself training is certainly not the sole answer in producing quality franchisees. Through the years I’ve trained franchisors to understand that in order to successfully orientate a new franchisee; Mission, Culture and Core Values of the brand must be communicated to and embraced by the franchisee. Here again I cannot emphasize enough that franchisors must start building value and respect for the brand during the recruitment phase. It is during that time, potential franchisees and the franchisor should engage in meaningful, mindful conversation so that the franchise candidate understands what is expected of them and the Franchisor should understand what the franchisee expects in return. It’s a simple (but not easy) process that can lead to rejecting a candidate and losing the deal. However, trust me when I say, losing that candidate is a far better outcome than bringing the wrong franchisee into the system only to wreak havoc, compromise brand standards and lobby additional, otherwise satisfied franchisees into their negative mindset.

Successful onboarding and training requires transparency, consistency and follow up.

The likelihood of a franchise owner “going rogue” when a company is transparent in its expectations lessens. Franchisees know what is expected of them. In addition, the Franchisor’s support personnel should be out in the field in front of the franchise owner, coaching, counseling and working with the franchisee to achieve optimum results, financially as well as making sure the business is providing options consistent with the franchisees lifestyle goals. Supplying ongoing training that places resources within reach of the franchisee is not only vital at the onboarding phase but throughout the lifecycle of the business relationship. This approach helps franchisees adapt as the brand grows and systems evolve. Preparing franchisees to deal with the issues that may come up along the way is key to building a successful franchise system. Ultimately solid onboarding and training should expose the franchisee to detailed information so the franchisee knows what the company expects and they can live up to the “Brand Mission”. Initial and ongoing training should support the idea that following the system is the most important aspect leading to the success of the business. This approach puts franchisees in a better position to make sound decisions concerning the business with little outside assistance and with little room to “reinvent the wheel”.

Franchisees need to be held accountable for holding the same high standards as the franchisor. In order to do this, your company culture, value proposition, training program, operations manuals, job aids and other franchisor supplied tools should be carefully developd, tested, reviewed and updated as necessary. The onboarding process and training program is never “done”. As the franchisor it is your job to insure that franchisees have access to the tools and support needed to grow and thrive.
Get new franchisees off to a great start through a sound onboarding process that starts at the first hello. Recruit and vet your candidates thoroughly, be certain they are a fit for you brand culture and buy into your mission statement. Provide them with the tools and support needed to navigate system changes as they occur. Give the franchisees the foundation they need to grow, develop, and succeed as business owners. An excellent franchise system, built this way from the start makes it easier for franchisees to overcome challenging situations as they occur, and they will occur.
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About the Author:

Gary Occhiogrosso is the Managing Partner of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm.http://www.frangrow.com

Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital.

Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with it’s founders. He is the former President of TRUFOODS, LLC a 100+ unit, multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry.

Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition Gary is an adjunct instructor at New York University teaching Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He is also the host of the “Small Business & Franchise Show” broadcast over AM970 in New York City and the founder of http://www.FranchiseMoneyMaker.com

How Franchising Impacts the Economy and creates jobs

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By Gary Occhiogrosso, Managing Partner - Franchise Growth Solutions, LLC.

Franchisees support communities by strengthening them financially.

In cities around the nation, franchises play an integral role in supporting the local economy through job creation and the payment of taxes. In Jacksonville, Florida, Checkers franchisees Karen and Rich Weber have turned around a franchise that failed not once with former owners but four times previously in the city. Thanks to their knowledge of the restaurant industry and franchise training, the couple has survived to see the opening of their second location in the city.

Their reputation for building customer relationships has helped them create growth within their franchise. Previous owners were not able to keep up with customer demand nor were they able to offer the same type of benefits to the local economy the Webers have. With the opening of a second Checkers in the city, there is a need for even more skilled employees to fill the roles in the business.

New Businesses Help Other Local Businesses Thrive

Men and women are more likely to shop locally when they have a reason to come into town in the first place. The excitement of a new franchise spreads like wildfire, helping other business owners meet sales goals. In return, these businesses pay more taxes due to increased sales which support the city’s budget for the year.

Employment Rates Steadily Increase Yearly Because of Franchises

According to the International Franchise Association (IFA), 2016 helped U.S. employment rates by growing 3.5 percent. The projected totals for 2017 estimated continuous growth with the addition of close to 250,000 new jobs. Franchise output was also up in 2016 by a reported 5.8%.

Franchises Earn Billions of Dollars Annually

Estimates for 2017 had franchises earning an outstanding $700 billion. Americans then contribute dollars to the local economy through payroll and taxes. Having the option to become a franchisee opposed to starting a business from the ground up is very appealing to entrepreneurs who see growth projections for franchises on the incline each year.

Take Your Great Franchise Idea and Help Communities Nationwide

Franchisors contribute a great deal of resources to communities around the globe. Launching a successful franchise business provides entrepreneurs with the opportunity to share their ideas, products, and services with like-minded business people who find franchising to be a legitimate way to go into business for themselves. The local economy thrives, jobs are created, and local business districts in cities around the globe profit.

For information on starting your own francise business contact:                            info@frangrow.com or call (917) 991-2465

Planet Wings Suits Up for Super Bowl By Focusing on Technology

“About six months ago, we revamped our website and put a focus on increasing our SEO,” Franco Fidanza, Planet Wings’ CEO, explained.

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Planet Wings- Crave the Flavor - Fresh Never Frozen No Antibiotics, No added Hormones, No Steroids

“About six months ago, we revamped our website and put a focus on increasing our SEO,” Franco Fidanza, Planet Wings’ CEO, explained.

MIDDLETOWN, N.Y. (PRWEB) January 19, 2018

 

The big game is quickly approaching, but the real MVP of Super Bowl season isn’t the players or the teams — it’s the food. From beer, to chips and subs and event to the almighty chicken wing, the Super Bowl would be nothing without the food that accompanies it. But how do consumers connect? Where do they get their game day food from? In today’s day in age, it’s all about technology.

Planet Wings, a tri-state area based restaurant franchise in New York and New Jersey, looks forward to the big game day each year. With nearly 23 Super Bowls under their belt, Planet Wings knew it was time to spark a change in the way they prepared for the big day, to stay modern and attract new customers.

“About six months ago, we revamped our website and put a focus on increasing our SEO,” Franco Fidanza, Planet Wings’ CEO, explained.

What exactly is SEO? Search Engine Optimization is extremely important for businesses who want to show up on customer’s search results. In addition to focusing on SEO, Planet Wings has increased promotion of their online ordering page through use of email blasts, social media and digital ads.

“Super Bowl is the most popular time of the year for us. We knew leading up to the big day that we had to secure our website, and keep our promotions clear and concise for our consumers,” revealed Brittany Ambrosino, Planet Wings’ Marketing Director.

Now, the Planet Wings website receives over 30 thousand users monthly, with 80% of users being on their locations page the longest. In addition to that, over 75% of their users now access their website through mobile devices. “With all of these statistics in mind, we wanted to make sure our online ordering was easy to use for our customers,” said Fidanza. Their focus on SEO seems to be doing the trick, as 60% of their monthly customers are organically coming to their website based on searches such as “chicken wings” and “fast casual.”

“During the summer, we sat down and combed through our website, seeing places and areas that we could add meta data too to help us show up to new organic consumers,” said Kristina Andujar, Planet Wings’ Web Designer.

One of the most important aspects of Super Bowl Sunday is having a full spread of football food. Planet Wings sets themselves apart with their Game Day Specials. “We really looked at our menu, what menu items have been popular for the past 20 years, and made specials to offer our customers,” Fidanza explained. “These specials make game day a breeze for both the customers, and for us.”

The new specials make choosing easy for customers, featuring wing options of 30, 50 and 100 count wings. Customers will have five options to choose from to suit their game day needs.

“Super Bowl is a crazy time. We need all hands on deck,” Franco explained. With 75 percent of chicken wings coming from restaurants or foodservice outlets during Super Bowl Sunday, according to the National Chicken Council, it’s no wonder why the whole team is in place for the day.

What are some game day tips Fidanza has to offer? “Always order ahead of time” he reveals. “I’m sure any restaurant open on Super Bowl Sunday can agree that ordering ahead of time leads to a smooth operation throughout the day.”

Planet Wings’ website will be fully equipped and ready for the big day. Their hope is that putting in the work to make their website a success, will make game day a big success for both them and their customers.

“It is important for us as a brand to be in on what’s going on technologically, as we believe it helps us to best serve our customers,” Fidanza expressed.



The 12 Worst Mistakes When Marketing...

 

For Our FGS readers, although this article references "restaurants" be assured it applies to all retail service and product based businesses.   Enjoy!

 

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The 12 Worst Mistakes When Marketing for Restaurants

Written by and originally posted by Kendal Austin in Restaurant Marketing

All too often, restaurants miss opportunities to get their business in front of hungry diners.

With growing competition and increasingly demanding consumers, an effective marketing strategy can mean the difference between success and failure.

You put a lot of work into making your restaurant successful. Don’t waste those efforts by making these all-too-common restaurant marketing mistakes.

Once you make your way through the list, Download Toast's Restaurant Marketing Guide 101 for more restaurant marketing advice.

1. Inconsistent branding

Define your restaurant’s brand and stick with it. Use it to be the driver behind marketing messaging and strategy. The restaurant website, social media channels, and any in-store materials should support your unique brand.

If you’re a sustainably-focused fine dining restaurant, build marketing messaging that speaks to where your food comes from and how that creates an excellent experience. Avoid anything that does not appear to support that mission.

2. Ignoring social media

All restaurants should have a social media presence. Just because you are not an avid Facebook user, doesn’t mean it’s not a good fit for your business. Social channels provide an inside look into your restaurant, helping build relationships and stay top-of-mind with guests. Whether your business is on social media or not, you can guarantee your diners are. Take this opportunity to be part of the conversation. 

Determine which social media channels are most used by your typical diner and make your business accessible there.  Read more restaurant social media best practices.

3. Not claiming your business on Google

Google My Business puts your restaurant information on the map, literally. By claiming your business, you can update hours, website, menu, and other crucial data your guests need to know. Google prioritizes these listings and shows them first in search results.

A GMB listing ensures that the most important information (location, phone number, hours, etc) appears immediately when your business is searched online.

You can read more about Google My Business for restaurants here.

This also paves the way to launching targeted local online ads like Google Adwords. Which brings us to the fourth common marketing mistake…

4. Refusing to pay for marketing 

For marketing to make an impact on the success of your business, you’re going to have to allocate funds to support it.

The National Restaurant Association has reported that restaurants typically spend about 3% of monthly revenue on marketing programs.General recommendations typically range from 2 - 10%. Where you spend marketing budget will vary by business type, but many experts are encouraging restaurateurs to focus on digital and mobile marketing - specifically search engine optimization (SEO), Google My Business, and social media.

5. Not measuring your marketing

For restaurants, marketing is now measurable. 

Whether it’s tracking visits to the website, clicks on online ads, growth in social media followers, or attendees at a special event, your investment in marketing and branding should be tied to specific metrics. You’ll have a much easier time justifying marketing costs by defining Key Performance Indicators (KPIs) beforehand to measure the effectiveness of your programs.

6. Missing the true benefits of a restaurant loyalty program 

Data is power. An integrated restaurant loyalty program is a great way to collect data on guests. It gives loyal guests an incentive to stay in touch while enabling your restaurant to run targeted marketing campaigns and drive repeat business.

Loyalty programs should be customized to fit your restaurant’s brand (see #1) and offer immediate and frequent value to all who sign up.

7. Sitting on valuable customer information  

A database of guest information through a loyalty program or mailing list is useless without a communication strategy. Have a plan to utilize that valuable contact information. Email, SMS texts, social media, and targeted advertising are at your disposal with a robust customer database.

Depending on your restaurant brand, guests might appreciate coupons and promo codes or notifications about upcoming wine tastings and events. Promotional marketing, in moderation (see below), is a valuable tactic for the restaurant and your loyal customer base.

8. Sending too many promotional emails

The #1 reason that people unsubscribe from emails is that they receive them too frequently. The huge potential value of a customer database is lost if guest are unsubscribing from your messages.

Optimal email timing and frequency will vary by industry. Data suggests that most people are open to receiving promotional emails at least once per month. Try providing different subscription options (i.e.: monthly newsletter, weekly discount code) to see which cadence is most popular with your guests.

Also, instead of an "unsubscribe" button on emails, send them to a "manage email preferences" page where they can either unsubscribe or switch to a different cadence. 

9. Being clueless about SEO 

Effective search engine optimization (SEO) does require some technical knowledge, but it will make or break the “discoverability” of your restaurant. With so much search traffic going to Food & Beverage (see #11), it’s clear that restaurant websites with optimized keywords will win.

If someone searches “chicken wings beer denver,” the restaurant’s SEO strategy will determine which restaurant shows up in the search results. If you’re a Colorado-based sports bar, it’s extremely important that you show up. At the very least, have a conversation with your web designer about it. For a complete guide, check out these tips for restaurant SEO.

10. Skimping on photography

Imagery is a powerful storytelling tool, particularly online and on social media. One study predicted that 84% of online communication will be visual by 2018.

RELATED POST: 7 Tasty Food Photography Tips & Tricks for Restaurants

Photos can evoke powerful feelings in the viewer. Our mouths water at the mere sight of a juicy fire-grilled hamburger; just the image of a lively dance floor can be energizing; we react to photos of food with “Ooh, that looks delicious,” without ever having tasted it.

Invest in high-quality photos of your food and interior to build brand and evoke an immediate positive reaction.

11. Missing on mobile

Failing to prioritize the mobile experience is an extremely costly mistake. Not only do searches from mobile devices make up over 60% of total search volume, but “Food and Beverage” is the most searched category on mobile devices. 72% of searches in this category are initiated from a mobile device, according to one report.  

Bottom line - your restaurant should be easy to find from a phone. That means a mobile-friendly website, a Google My Business account, and information-rich social media profiles. More tips for mobile-friendly marketing can be found here.

12. Refusing to evolve 

Adapt or die.

Keep your eyes open to the way the industry, your competitors, and your neighborhood are evolving. Your marketing strategy should be modified and tweaked to accommodate the inevitable changes in the environment.

Maybe the neighborhood has become more upscale over time; perhaps a large chain has popped up next door and people will be looking for the “local” option; maybe a widespread food safety issue has resulted in an aversion to seafood. Be aware of these shifts in the market and adapt your restaurant marketing accordingly.

Written by: Kendal Austin

Kendal Austin is the Marketing Manager at Toast responsible for customer and partner programs. After a brief stint in foodservice, Kendal found a passion for marketing technology that solves problems. Her claim to fame: she was a contestant on the Price is Right and lost in the final round.



Why Do I Pay a Franchise Fee?

 

To the Franchisee it must represent a reasonable fee to allow you to become a part of the existing system, including all of the training programs that are a part of that system, to help you reach your own business goals.
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Why do I Pay a Franchise Fee?
By Premium Author Dennis Schooley

Franchising is a strategy that the Franchisor uses to achieve its objectives, including market penetration and market domination. Franchises are granted or awarded to a qualifying Franchise Candidate that has similar objectives in their own marketplace. That Franchisee will have the responsibility to fully implement the operating and marketing systems of the Franchisor in their defined area for a specified period of time. The relationship is not generally one of parity.

If it were a relationship of parity, the Franchisee would take on a great deal more responsibility, and of course, liability and risk as well. So the relationship is not one of actual partnership in the legal sense. However, good Franchise systems will generally recognize their Franchisees as Strategic-Partners, meaning they are in a partnership of sorts that is aimed at achieving unified goals, but not one of legal partnership or equity.

The Franchise Fee is the cost of putting the Franchisee into the business of the Franchisor, not as a partner, but as a participant. Costs include:

The development costs of all of the elements of the Franchisor’s system

Training the individual Franchisee to use those system elements and programs
Marketing and advertising to find Candidates
Costs of qualifying Candidates including rejecting many unqualified Candidates
Salaries, travel, & administration, etc.
Legal expenses to draft agreements defining the methods & terms for the Franchisee to participate
The Franchise Fee is the Franchisor’s assessment to cover those costs as well as a reasonable markup. In other words, it’s the entry fee to the point of the completion of the initial training programs.

To the Franchisee it must represent a reasonable fee to allow you to become a part of the existing system, including all of the training programs that are a part of that system, to help you reach your own business goals.

When asked about the Franchise Fee, the Franchisor should have this concept clearly defined in their approach to Franchising. They should recognize that the Franchise Fee should be reflective of the value of entry into a well-developed, comprehensive system for the participant Franchisee. They should also recognize it as the recovery of costs to find, qualifyPsychology Articles, and grant legal rights to participate in that system to the very best Franchisees for the Franchisor’s business.

Source: Free Articles from ArticlesFactory.com



SHAKE “SHOCK” (SHAK) – VIDEO FROM 3RD DAY OF NEW LOCATION – KIOSK ORDER & PAY – NO CASHIERS

Shake Shack (SHAK) 

Forward for Franchise Money Makers' Readers:

The rising cost of labor is an industry wide issue among restaurant operators.

One of the most successful and rapidly growing restaurant chains, Shake 

Shack, is currently experimenting with a store (at Astor Place in NYC)

that has no cashiers and only accepts credit cards. This article provides

a short video of the store in action, three days after opening, and my

suggestions about some of the unintended consequences of this approach.

Enjoy!

      Roger Lipton

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SHAKE SHACK “EVOLVES” TO ELIMINATE CASHIERS -PROGRESSIVE TO BE SURE, UNINTENDED CONSEQUENCES WILL TAKE A WHILE TO EVALUATE

Danny Meyer, founder of Shake Shack, is no longer actively involved  in management of this leader within the “fine” casual dining industry.  His cultural influence is no doubt being maintained as one of the restaurant industry’s most progressive voices.

Shake Shack, no doubt anticipating the inevitable material rise in the cost of labor, has just opened a unit at Astor Place in Manhattan which has no cashiers.  You can’t accuse Shake Shack, no doubt channeling its founder, Danny Meyer, of lagging the crowd in terms of anticipating changes within the hospitality industry. Combined with mobile order and pay, about 10 POS “kiosks” allow customers to place orders as well as pay. Cash is not accepted.We took a twenty five second video at 1:00pm today (link below), the third day of operations, panning the store interior. On the viewer’s right is the array of ordering stations. SHAK management is not naive about the need to explain the new system and provide customers as much “training” as necessary, so several employees are circulating among the customers, helping where necessary (including myself). I found the system fairly easy to navigate, and used the chip on my card to pay. The customer then moves to the center of the store, and waits in front of the pass through section where names are called out. Mobile orders presumably are handled over the same counter. There is a drink and condiment station, left of center, where customers can set themselves up as they wait for their orders. There is a modest amount of seating as the camera pans to the left, indicating that the Company feels that most orders will be taken off premises. 

I will briefly discuss my reaction after you have viewed the video below:

https://www.dropbox.com/s/r83syu3fhcv79q7/SHAKE%20SHACK%20KIOSK%20ORDER%20%26%20PAY%20-%20NO%20CASHIERS%20-%20VIDEO.mp4?dl=0

The business model is “a-changin”. Danny Meyer literally wrote the book in dining hospitality, “Setting The Table”.  His fine dining restaurants have distinguished themselves from this standpoint and he is appropriately viewed as one of the long time greats in the industry. At Union Square Hospitality Corporation, his elimination of tipping two years ago was his effort to equalize compensation between the back of the house and front, and this (I call it “unresolved”) experiment has continued to this day. USHC, however, is privately held, and the operating margins (which we suspect have suffered) don’t come under the  line by line scrutiny of analysts and investors. Shake Shack (SHAK), publicly held, must bow to the needs, and demands of the publicly held constituents. Growth rates, and operating margins, have to be maintained or valuation will suffer. We can’t prove it, obviously, but SHAK (if still private) might not be moving quite so aggressively in eliminating cashiers (which includes a significant personal “touch”) and going to a production based model.

FROM THE CUSTOMER’S STANDPOINT: SHAK will not lose its cult-like status any time soon. We don’t expect volumes to suffer substantially with this new approach, however: at the end of the day, it’s (mostly) a burger, fries, and shakes, preferred by many, but not by all. Lot’s of Californians  think In and Out is the ultimate, some prefer the fresh cut fries at Five Guys, and the burgers at Schnipper’s here in NYC are pretty good if there is not a Shake Shack nearby. I believe that what has distinguished Shake Shack, as much as anything else, as been the hospitality quotient. Their staff has been a cut above the big three burger chains, just as been the case at Starbucks. Credit the influence of founders, Howard Shultz and Danny Meyer. Cutting to the chase: the absence of cashiers is not going to gain customers, and could cost some.

FROM THE EMPLOYEES’ STANDPOINT: Shake Shack is no doubt going to try to maintain the hospitality experience, as best they can, but eliminating cashiers is not an upgrade. There are lots of young people who correctly view a job at SHAK (or Starbucks) as a stepping stone in the retail/hospitality industry. They get an on-the-job education and get paid (modestly) at the same time. I’ve written about the Starbucks barista who told me “working at Starbucks makes me a better person” and I suspect that there are more than a few Shake Shack crew who feel that way as well. The new business model increases the value of “production” rather than customer contact, so it is going to be a lot less satisfying for that young person who really loves to interact with people, but is now just pumping out product.

Bottom Line: No Cash, and No Cashiers, may be progressive, even necessary, but will likely have unintended consequences, for  employees, customers & shareholders.

Read Roger Lipton 

http://www.liptonfinancialservices.com/2017/10/shake-shock-shak-video-3rd-day-new-location-kiosk-order-pay-no-cashiers

 

Three Signs a Franchisor needs to consult a Franchise Lawyer

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Franchisee discontent can also morph into litigation. Franchisees can sue franchisors for a variety of reasons, such as non-disclosed operating costs and for opening too many franchises in a geographic area

Three signs a franchisor needs to consult a franchise lawyer

 By Harold Kestenbaum

Franchisor liability is often based on agency relationships, and vicarious liability is a form of liability without fault. This means that a person injured at a franchise location can file an action against the franchisor as well as the franchisee. For example, A Wisconsin Arby’s franchisee hired a work release inmate who walked off the job and shot his ex-girlfriend and her fiancé at a Wal-Mart. The women lived, but her fiancé was killed. The franchisor and franchisee were sued for negligence in hiring and supervising its employed work release inmate. Ultimately, the court decided that Arby’s had little control over the hiring of the employee and could not be held vicariously liable. Being sued under the principle of vicarious liability due to franchisees’ wrongful acts is just one example of when a franchisor would need to consult with a franchise attorney for an effective defense. A recent joint employer decision from the National Labor Relations Board (NLRB) will have an impact on vicarious liability. If the decision goes into effect, franchisors will have a responsibility and a standard for hiring and human resources decisions.

Franchisee discontent can also morph into litigation. Franchisees can sue franchisors for a variety of reasons, such as non-disclosed operating costs and for opening too many franchises in a geographic area. In a 2007 Muffin Break case, the franchisor set up a franchise to operate its muffin shop in a shopping center and gave the franchisee financial performance projections. The projections failed to come true, and the franchisor was sued by the franchisee. The franchisor was ordered to pay more than $300,000 plus interest on a loan. 

About the author: Harold Kestenbaum is a member of the Franchise Growth Solutions "outsourced consultants" https://franchisegrowthsolutions.com/meet-the-team/               

HAROLD L. KESTENBAUM is a lawyer who has specialized in franchise law and other matters relating to franchising since 1977. From May 1982 until September 1986, Harold served as franchise and general counsel to Sbarro, Inc., the national franchisor of more than 1,000 family-style Italian restaurants and, was a director from March 1985 to December 2006. From September 1983 to October 1989, he served as president and chairman of the board of FranchiseIt Corporation, the first publicly traded company specializing in providing business franchise marketing and consulting services and equity financing to emerging franchise companies, which he co-founded. Harold has authored the first book dedicated to the entrepreneur who wants to franchise his/her business, called So You Want To Franchise Your Business. It is a step-by-step guide to what a businessperson needs to know and do to properly roll out a franchise program. Harold’s book is available at major book stores and on Amazon.com or you can click here for more info on his book So You Want to Franchise Your Business.  Contact Harold at:  info@frangrow.com

 



To Invest in a Qualified Business Plan is a Fundamental Strategy

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Your Business Plan is your “road map” of your enterprise and shows you where you want to go. It is to become your check list to follow up, the same way an orderly routined pilot does before taking off.

To Invest in a Qualified Business Plan is a Fundamental Strategy                 By: Elsa Hedenberg

Before you start reading any arguments about why you should have a super professional Business Plan for your new venture, you might as well first take a look at those lean statistics.

* Only 400 out of 40.000 new ventures are funded by Venture Capitalists (VCs).
* Only about 4.000 ideas reach the pre-business plan stage.
* Only 400 entrepreneurs have available some kind of business plan.
* Only 40 out of them receive some funding by business angels or any other sources.

Statistics also tell us that there is more money looking for good projects than vice versa. Why then is it so difficult to raise money?

It is all about investing on a qualified Business Plan. 
This is a methodical first step that leads to the anticipated Fundings.

Your Business Plan is your “road map” of your enterprise and shows you where you want to go. It is to become your checking list to follow up, the same way an orderly routined pilot does, before taking off his plane.
As Henry Kissinger remarkably said: “If you do not know where you are going, every road will get you nowhere

Why let Professionals Prepare A Business Plan for you?

  • They have the skills to detect the investors’ preferences.
  • Have the experience to eliminate mistakes.
  • Define and focus your objectives.
  • Can uncover overlooks and weaknesses in your planning process. This will help you to build up an overview of your business idea. They also prepare you to give a thought to the potential investor’s unexpected questions.
  • Guide you to avoid common mistakes.
  • Create a meaningful content which is expected by professional investors who recognize generic phrases, created from business plan software. They compile for you a convincing content that covers from hard to find market research to articulating the value of your message.
  • They free up your valuable time. Instead of collecting material, gathering market research, writing creating drafts and revising, it would be better used working on your business.

Professionals model your business:

  • They teach you how to both create and communicate true value to potential customers, suppliers, employees and even investors.
  • They formulate a start up strategy which will minimize the capital needed to launch your company.
  • You have only one chance with many investors. They help you make it count and stand out.

Who qualifies for Venture Capital today?
Ask yourself the hard question if you have what it takes to turn your vision to reality. Your business idea, as good as it may be, will mean nothing if it is not backed up by your entrepreneurial skills. For Venture Capitalists are like winning horse track gamblers, they bet on the jockey not on the horse.

 

Author Bio
Elsa Hedenberg has an extensive experience in consumer products marketing and has a degree in consumer’s psychology. Has published business articles in business magazines, in Swedish and English.

Article Source: http://www.ArticleGeek.com – Free Website Content



Next Life Phase - Starting a Business After Ending a Career

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Making Lemonade: Starting a Business After Ending A Career
By: Liz Sumner, M.A., CPC
What do you do when the money tree starts sprouting lemons? 

It's increasingly common these days to find middle-aged, mid-level managers suddenly faced with huge shifts of circumstance. Down-sizing, bubble-bursting, plant-closing, and consolidating are just some of the forces creating a class of sudden solo-preneurs.

At 50-something you face particularly difficult job-hunting challenges. Your salary range is high. Your network is decent after so many years, but jobs at your level are few. You've been there, done that, and thought you were finished with all that new trick-learning.

A big upset like job loss can provide a shift of perspective - an opportunity to take stock. What is really important? What do you want to pursue at this point in your life? Is being your own boss the way to go?

I spoke with several silverbacks to share their wisdom gleaned from these life changes with a new member of the pack.

Dean turned 50 in January of 2005. In May he was fired from his position as marketing director of a high-tech firm. He's angry at the ease with which an employer could let him go.

"Control is a big issue for me. Do I really want to have someone tell what, where, and how? It seems like I work a lot but don't reap the benefits. If I were on my own I'd have all the benefits and all the risks."

Dean is deciding whether to find another job with the security of a regular paycheck and benefits, or start his own business. He finds information on the internet helpful but wishes there was a Big Brother-like program pairing people and businesses to help him sort through the options.

Carl was 51 when the ordinance plant where he was safety manager closed its doors.

"I had a lot of friends in the business. I could have easily picked up another job but I would have had to relocate halfway across the country. I didn't want to do that."

Bob was an engineer whose position was eliminated after 23 years with the firm. This sent him into a deep depression that lasted for months.
    
"I couldn't even drive."

With the help of his psychiatrist, Bob recognized what was most important in his life-his wife, his son, and his lifelong hobby, bird-watching.

"My doctor told me to go bird-watching every day. While out there on the wetlands I had a vision. I couldn't go back to the corporate life."

It takes a lot of stamina and belief in yourself to move ahead with plans for a business. Carl spoke of his state of mind at the time:

"I wasn't frightened. I'm a survivor. I screwed up when I was younger- went bankrupt, lost a lot of material things. One good thing about failing is that it gets you over that fear of failure. You learn from your mistakes."

Both men did a lot of research, internal and external. Bob determined that he loved birds, kids, nature, education, photography, and the environment. Anything he pursued needed to involve those. Once he was clear on the essentials the how-to landed in Bob's lap.

"I saw an ad in a magazine to call for franchise information. My mind immediately took off with the possibilities. I began looking at retail spaces thinking 'I wonder how that location would work?' I saw the ad on a Saturday. That Tuesday I called the company. On Thursday I had the package and on the following Tuesday they had it back."

Carl was taking his time, looking at options. His values included a love of people and a desire to create a positive environment.
His plans started with casual conversation.
    
"My buddies owned this building. There had been a restaurant there years ago but it had been mismanaged. And somehow the idea of starting another one came up. At first we were clowning around, yucking it up over a few beers, but then we started getting more serious.

Bob made use of the infant, but still helpful internet of 1995. Carl used lower tech methods to estimate his market.

I spent 15 days from 4:00 am to 11:00 am counting cars at that intersection. I figured if we could get a big enough percentage of them to stop we'd be in business.

Bob used a book called, The Insider's Guide to Franchising [Webster, B. 1986 Amacom, New York] to help him review his offer. Carl was mentored by a successful friend in the restaurant business who helped him think things through. They developed their business plans and opened their doors.

The first year was tough for both businesses. Miscalculations and errors sent both owners reeling.

At first Carl knew nothing about preparing and serving food.

"The restaurant was overstaffed and overpaid. I felt held hostage by the people who worked for me. Things were pretty shaky there for awhile. Some days I wondered if we could open the doors."

Bob got overwhelmed with paperwork and screwed up his accounting records.

"Plus I went crazy at Vendormart. I bought four times as much inventory as I should have. Nowadays the franchise pairs successful stores and newbies so that doesn't happen, but those safeguards weren't in place back then."

In September Bob's store will celebrate its tenth anniversary. It has been recognized three times among the Top 30 Most-Improved stores. In February and June of this year his store was number 2 out of 320 in overall sales.

Carl was advised that he'd know if the restaurant would make it within four years. It was clear after three that they'd be fine. Today after seven years they're looking to expand.

"We're not getting rich but we're self-supporting, and the relationships are priceless."

What advice do they have in hindsight for Dean and others like him?

Bob says, "Find what you love and create your opportunity. Be willing to change-be retooled. Don't get stuck in a rut. And you gotta have another source of income when you're starting."

Carl adds, "We grossly underestimated the working capital we'd need. And if I had it to do over I'd own the building. There are improvements I'd like to make but I'm restricted by the landlord."

So back to Dean, who's looking at buying an existing restaurant business, if he doesn't decide to return to marketing.  Where do you want to be in a year? What will you say when I check back with you?
    
"I made the right choice. I'm doing exactly what I should and I'm excited about it.


Author Bio
Liz Sumner, M.A., CPC, of Find Your Way Coaching specializes in mid-life reassessment. Are you happy with your direction? Do you feel good about yourself? Are you fearless? Joyful? Energized? You could be. Visit www.findyourwaycoaching.com or call 603-876-3956 for more information.

Article Source: http://www.ArticleGeek.com - Free Website Content



Branding - What's in a Name?

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What's In A Name? The Six Essential Elements You Need To Know
By: Susan Friedmann


Selecting a name for your new business is not easy. A name does more than identify your company. It tells customers who you are, what you do, and more than a little about how you do it. Your name differentiates you from your peers, peaks customer interest, and invites further investigation -- if you do it right.
 
I didn't do it right. At least, not at first.
 
All entrepreneurs make mistakes, and I made one of my first ones right off the bat. Thrilled with the fledgling business I was starting, this precious enterprise so near and dear to my heart, I christened my company Diadem Communications. Diadem means crown-- a fitting name for what I felt was a
crowning achievement.
 
What does Diadem say to you? Does it evoke thoughts of me coming into your company, training your sales team to be the best booth staff ever, ensuring that every single trade show you attend turns out to be amazingly successful? Does it make me sound so good that you just can't wait to hire me?
 
No. It doesn't say that to me either. And even worse, it didn't say that to any of my potential customers. Going by name alone, no one would be able to determine the least bit of information about me, my company, or the services we offer. The name said nothing, and it did nothing for me.
 
The name had to go. More importantly, it had to be replaced by something effective. How do you come up with an effective name? Consider these six elements:
 
An Effective Name:
 
1. Tells Who You Are: Your name should reflect your identity. This is an essential aspect of branding. You'll be promoting this name, getting it in front of as many eyes as possible as often as possible. How do you want the public to think of you?
 
For some, that means integrating your personal name into the name of your business. This is very common in some professions: legal, medical, and accounting leap to mind. 
 
Others prefer a more descriptive name. One successful small baker runs her business under the name "The Cookie Lady" because that's how her first customers identified her. It's doubtful that most of the customers even know her first name (It's Pat) but everybody in her market knows "The Cookie Lady".
 
2. Tells What You Do: It's incredible how many company names give little, if any indication of what type of work the organization actually does. Take the following examples:


Smith and Sons
Hulbert Brothers
Only One


Can you tell me what any of these companies does? Of course you can't. They're relying on customers already knowing who they are (a tricky proposition for new businesses!) or by having their name found in 'context', such as a yellow pages or on-line business directory. 
 
3. Tells How You Do It: Words are very powerful. By carefully selecting what words you use in your name, you can convey a great deal about your company's image. Consider the names of three different massage and bodywork centers:


Champlain Valley Therapeutic Massage
Clouds Above Massage
Speedy Spa


All three companies are providing the same service: massage therapy. Yet the first appears to favor a more medical approach, the second, a dreamy, luxury approach, and the third focuses on fast service.
 
4. Differentiates You From Your Peers: Your company name is the first opportunity to tell customers how you differ from the competition. This can be done by emphasizing what makes you unique, pinpointing what aspect of your products and services can't be found anywhere else -- or that you do better than anyone else. 
 
Consider the massage therapy example we looked at in number three. Each organization clearly has a different focus and approach to their customer base. They're attracting different types of clients, who are seeking fundamentally different approaches. All of which is conveyed in less than five words.
 
5. Peaks Customer Interest: Creating customer interest is an art and a science. Think carefully about your target audience. What qualities of your services are of the greatest import to your customers? What kind of words are likely to appeal to them? 
 
Emphasize the important qualities in your name. For example, busy homeowners are drawn to the inherent promise of speed offered by "Bob's Instant Plumbing" while a reader in search of a good mystery will gravitate toward "Crime Pays Books".
 
Word choice is also important. Two yarn shops can both specialize in specialty fibers, but the one who labels themselves "All Hemp All the Time" will draw in a decidedly different crowd than the one named "Natural Beauty: Organic Yarns".
 
6. Invites Further Investigation: Customers are funny creatures. What one group finds to be funny and engaging turns another group off. You want your name to be inviting and approachable -- as those qualities are perceived by your target audience. 
The best example of this may be seen in the individual investor segment of the financial services industry. Charles Schwab has spent years cultivating a classic, formal image -- but now that the consumer base is changing from 'old people with money' to 'everyone with a 401K', Charles Schwab has launched the "Talk to Chuck" campaign in an effort to be more approachable.
 
Make sure your name doesn't intimidate customers away! Some industries are more formal than others, but adopt pretension at your peril.
 
After following a series of simple step-by-step instructions to match my corporate identity with my service offering, I came up with the quintessential name: The Trade Show Coach. This name instantly tells customers what I do - assist companies with trade shows - and a little of the manner in which I do it - coach, rather than dictate, direct, guide, or organize. 
 
See the difference? So did the buying public, some of who quickly became my best customers. The same thing can happen for you -- if you pick the right name.

Author Bio
Written by Susan A. Friedmann,CSP, The Tradeshow Coach, Lake Placid, NY, author: "Meeting & Event Planning for Dummies," working with companies to improve their meeting and event success through coaching, consulting and training.  For a free copy of "10 Common Mistakes Exhibitors Make", e-mail: article4@thetradeshowcoach.com; website: www.thetradeshowcoach.com

Article Source: http://www.ArticleGeek.com - Free Website Content
 



Understanding the Personal Guaranty in the Franchise Agreement

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By Ed Teixeira Chief Operating Officer at Franchise Grade.com 

An important obligation in a franchise agreement is the personal guaranty. Although this provision will be cited in the Franchise Disclosure Document it may not get the attention of other items. Prospective franchisees should fully understand the obligations that the personal guarantee reason why franchisors require this covenant and what the implications are in the event the franchisee has problems. When performing franchisor due diligence, keep this factor in mind. 

Virtually every franchisor requires that its franchisees be individually responsible for and guarantee all contractual commitments, including the financial obligations, made by the corporate entity owning and operating the franchise. 

Obtaining personal guarantees from individuals is a common practice for lenders, creditors and landlords. Banks that lend money to a franchisee will require the owner to personally guarantee repayment of the loan. Landlords leasing space to franchises, almost always require the personal guarantee of the franchise owner. 

A personal guaranty provides the franchisor, with additional security in the form of the assets of the guarantor, the franchisee. Otherwise, the franchisor could be chasing corporate entities with virtually no assets. 

Most personal guaranty provisions in the franchise agreement enable the franchisor to immediately proceed against the individual guarantor (franchisee) rather than the corporation operating the franchise. This is because the individual franchisee is usually required to waive the right to require the franchisor to proceed first against the franchisee's corporate entity. 

The personal guaranty provision is contained in the Franchise Agreement and will include an exhibit of the agreement the individual must sign.  

Most franchisors require that the spouse of the individual franchisee execute the guaranty obligation. This allows the franchisor to pursue those assets held jointly in the marriage, such as bank accounts, investments, personal property and real estate. 

Since franchises are typically granted to individuals, who usually establish a corporation for liability or tax reasons, a franchisor views the operation of the franchise resting with an individual rather than a corporation. The franchisor uses the personal guaranty to protect its trade secrets, enforce non-competes and recover monies owed by the franchisee. Without this tool the franchisor would most likely pursue a shell corporation with few assets. 

Ed Teixeira Chief Operating Officer at Franchise Grade.com 

https://www.linkedin.com/in/ed-teixeira-1388bb7/