Author Archives: Carly Jane

Will Obamacare Benefit Healthcare Franchises?

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The majority of the franchise industry disapproves of the Affordable Care and Patient Protection Act. Many franchises have voiced their concerns that the healthcare reforms will cripple the franchising industry’s future growth and discourage franchisees from expanding.

 

But what about healthcare franchises and senior care franchises? Will they actually benefit from the Affordable Care and Patient Protection Act?

 

In light of President Obama’s healthcare overhaul the growth of the healthcare industry as a whole is expected to slow. Many Americans live paycheck to paycheck and remain hesitant to spend– even on healthcare.

 

Despite the anticipated sluggish progress of the healthcare industry, those businesses and franchises associated with or that accept Medicaid or Medicare will benefit in some  way from the Affordable Care and Patient Protection Act:

  • Primary care providers, physicians who serve as a patient’s main source of non-emergency healthcare, are expected to get a 73 percent raise if they are Medicaid doctors. The Congressional Budget Office estimates that Medicaid will gain 7 million new enrollees in 2014.
  • Employers already take 7.65 percent of workers’ wages to support the elderly and disabled, 1.45 percent of which will go toward Medicare hospital bills.
  • Two new Medicare tax increases will fund the senior healthcare program. Those making $200,000 as a single filer (or $250,000 joint filers) will each pay 0.9 percent more for the Medicare hospital tax.

 

Long term care insurance gives seniors control of their assets and a choice as to how and where they receive senior care services. This insurance covers hospice care, nursing facilities and adult care facilities. Some policies cover health care services, respite care and adult day care services.

Medicare does not pay for all senior care and usually only provides limited coverage for services provided in nursing facilities and home care settings. Assisted living is not covered by Medicare. Medicare will only pay for extended home health care services if a stringent set of conditions is met. The extent of Medicaid’s coverage is limited and similar to that of Medicare.

The ABC’s of Franchising

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Do you know your franchise industry ABC’s? 

 

A is for Autonomous — Why did you want to become a franchisee in the first place? More than likely it was because you wanted to be your own boss. Who doesn’t crave more autonomy at work?

B is for Blue Mau Mau — If you’re looking for the best original and curated content, press releases and articles on franchising, business opportunities and small businesses, Blue Mau Mau is the place to go.

 

C is for Crowdfunding — Funding remains a challenge for all entrepreneurs, not just those who are hoping to open a franchise. New legislation is sure to help crowdfunding’s popularity as a way to raise capital.

 

D is for Discovery Day — One of the most important days for a potential franchisee is discovery day. While each concept’s discovery day is a bit different, it normally includes a visit to the franchise’s headquarters, a sit down with the development team and often a meeting with the franchisor. Often, the franchise discovery day is the last stop before you sign on the dotted line and become a franchisee.

E is for Entrepreneur — Entrepreneur magazine has long celebrated franchising with its “Franchise 500”, their annual ranking of the industry’s top franchise concepts. The magazine also features a franchising section and often covers topics pertaining to the industry on its website.

 

F is for FDD — The franchise disclosure document (FDD) sounds just like what it is: a legal document that discloses the major facts and figures that make up each particular franchise concept to a prospective buyer. The FDD is intended to provide potential franchisees with enough detailed information to make educated decisions about a possible franchise investment.

 

G is for Growth — Growth despite economic challenges and uncertainty has become a hallmark of the franchise industry. Despite the woes experienced by many during the Great Recession, the franchise industry recovered well. The IFA expects the number of franchise establishments to grow by 1.4 percent in 2013.

 

 

H is for Healthcare — As the Affordable Care Act became law in 2012, the franchise industry took to the podium to speak out against the potential damages of the healthcare overhaul on small businesses. Many franchisors, including Papa John’s CEO, John Schnatter and Catherine Monson of FASTSIGNS have spoken out against President Obama’s healthcare reforms.

 

I is for IFA — The International Franchise Association (IFA) is the world’s largest and oldest organization representing franchising worldwide. It acts in the best interest of the franchising industry to promote, protect and enhance the franchise industry through policy, PR, and education.

 

J is for Jobs— No, not Steve Jobs, although we’re sure he’d appreciate the economic fortitude that is the franchising industry. According to the IFA, The franchising community provides nearly 18 million jobs!

K is for King — Joel Libava, aka “The Franchise King”, writes a phenomenal blog on all aspects of the franchising industry. His posts range from evaluations of franchising concepts, helping potential franchisees and issues the industry faces. Follow him on Twitter @franchiseking.

 

L is for Las Vegas — This year, the annual IFA Convention will be held in Las Vegas. The IFA’s annual convention allows for all members of the franchising community to congregate and connect. This year, Franchise Clique’s CEO David Schwarz will attend with his key managers as an “Entrepreneur of the Year” award nominee.

 

M is for Military — Military veterans have been welcomed profusely to franchising by franchisors and the IFA alike. The push to hire military veterans has been facilitated by websites like Veterans Franchise.com, VetFran and crowd funding platforms like Boost a Hero.

N is for Nation’s Restaurant News — This magazine delivers breaking news about the $600 billion food industry, including franchises. Since 1967, NRN has been covering trends, operators, suppliers and major figures in all areas of the food service industry.

 

O is for Operations — As a franchisee, a large part of your day deals with the day-to-day operations that make a franchise unit run smoothly. Luckily, those with varying degrees of business experience can count on their franchisor counterparts to lead the way. After all, one of the best parts about franchising is the proven track record and support provided to each franchisee by its franchisor.

 

P is for Portal — As the franchise industry picks up speed, leaving the Great Recession behind, portals have become an invaluable source of leads. Some, like Franchise Clique, Franchise Buy and Veterans Franchise, have begun call-verifying leads as franchise sales and development teams field an increasing number of inquiries.

 

Q is for Quick-Casual — If you didn’t catch our recent post on food costs and the franchising industry, you missed out on a short and sweet explanation of how food franchises continue to grow despite rising food, oil and transportation costs. The real winner in the food franchise category? Quick-casual restaurants, which are predicted to grow 1.7 percent in 2013, the third largest growth percentage according to the IFA. Also, quick-casual restaurant franchises make up two-thirds of all food related franchise establishments.

 

R is for Restaurants — When you think of franchising the golden arches and drive-thrus probably spring to mind first. It’s no wonder, considering food franchise establishments comprise 33 percent of all franchise establishments.

S is for Steve Caldeira — Stephen J. Caldeira is the President & CEO of the International Franchise Association. As the President and CEO, Caldeira works with the IFA’s board to set the course for the organization’s strategic priorities: policy, research, education, PR, and various development programs. Mr. Caldeira has 30 years of government relations, political communications, fundraising and professional development experience. Prior to his current position, Caldeira served as the Executive Vice President of Global Communications & Chief Public Affairs Officer for Dunkin’ Brands, Inc.

 

T is for Trillion — Yes, that’s trillion with a “T”! The franchise community represents $2.1 trillion of economic output just for the U.S. economy.

 

U is for Understanding — Let’s talk it out. No, really. When you’re deciding which franchise to buy, it’s important to do your research, ask questions and find out all you can about the concepts that interest you before taking the next steps. A franchise is a long-term business investment

 

V is for Vision — If the franchising industry were a word it would be “expansion.” Beyond the U.S. and Canada lies opportunity– and the franchise industry knows it. More and more brands are expanding their vision to Africa, Asia, Australia, South America, Europe and the Middle East.

 

W is for Work — Despite the autonomy inherent in becoming a franchisee, there’s also a lot of hard work. Ask any small business owner and they’ll tell you how much they wish there were more than 24 hours in a day.

 

X is for Xenophile — Now that’s an SAT word! As far as we’re concerned, one of the very best things about the franchise industry is its acceptance of other cultures. Whether it’s a franchisee expanding outside of the U.S. or the birth of a new food franchise celebrating a cuisine that’s not quite mainstream yet, the franchise industry makes a point to bring “new” and “different” to the masses.

Y is for Yogurt — How many frozen yogurt places can you count driving through your city or town? The frozen yogurt franchise craze, which hasn’t cooled yet, has been going strong for years. Though it’s not the oldest type of franchise concept in the industry, it’s certainly one that’s made other consider franchising as a viable means of making a living.

 

Z is for Zany— As of late,new franchise concepts have gotten creative and outright zany! Nail art vending machines, make your own sushi franchises and dog walkers have become incredibly popular. What could be next?

Why Food Franchises Remain Successful Despite Economic Obstacles

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It’s no secret that food franchises are often the most searched for and requested on franchise directories and portals. It’s what we all think of when someone says “franchising.” Despite the popularity of food franchises– the how is that sector of the industry doing?

 

Why do I ask? Well, maybe you heard of this little thing called “The Great Recession” and, in its wake, the tightening of our collective belts. How have food franchises fared? Has development for food franchises slowed? If not, how is that possible when food costs have risen and disposable income has decreased for most families?

 

Fast-Casual Food Franchises Are On the Rise

 

Research suggests that fast-casual franchise restaurants, which are a subset of quick-service restaurants, rank as one of the five best franchises to open due to high demand. Presumably as a result of the Great Recession, consumers are concerned with maximizing their time and money when it comes to eating out. Eating establishments that are less expensive but still allow consumers the ability to escape the kitchen and feel as though they’re treating themselves.

 

The number of quick-service restaurants are expected to grow 1.7% in 2013, the third largest growth percentage according to the International Franchise Association.

 

The Franchising is On the Rise– How? Why?

 

A recent study by the IFA shows that the number of franchise establishments increased by 1.5% last year.

 

Why? How? Simply, the economy is why and how.

 

Unemployment and underemployment (taking lower pay and lower-level jobs) are still unfortunate realities for the U.S.’ economy. As such, more Americans are mindful of their spending. Dinners at high end dining establishments have become increasingly rare. In addition, many individuals and families are working multiple jobs or longer hours resulting in a need for fast, inexpensive meal options– especially if you’re traveling between places of employment. This increased demand for quick-casual and quick-service establishments (think Panera and McDonald’s respectively) has permitted the franchise industry a growth coveted by many other economic sectors.

 

Exiled corporate executives and those who lost a substantial portion of their savings due to the Great Recession face the unfortunate reality of a shortened or no retirement at all. In order to earn a living, many entrepreneurs have chosen franchises as a means of business because of each concept’s proven track record.

 

What’s Behind Rising Food Costs?

 

Despite a reputation for quick and inexpensive meals, franchises are facing rising food costs because of four important reasons: increased fuel and transportation costs, reduction of food availability, and a continuation of economic circumstances that created 2011’s food price inflation.

 

  • The U.S. government’s subsidization of corn for bio-fuels has removed substantial amounts of the grain from the food supply, increasing overall prices.
  • The World Trade Organization limits the amount of stockpiling the U.S. and the European Union may do of corn and wheat in case of extenuating weather circumstances. As such, the price of corn and wheat remains volatile. (Note: wheat prices in 2011 more than doubled.)
  • As more of the global population becomes affluent, the demand for meat increases. In accordance with this demand, the need for animal feed– primarily grains– increases driving up the cost of both items.
  • The increase in oil prices means high food prices, as much of our food isn’t grown locally but shipped across oceans and nations.

Read more:

Why Are Food Prices Rising?, About.com

5 Best Franchise Opportunities For 2013, TheStreet.com

As more entrepreneurs pick franchising, sector grows, Charlotte Observer

Make 2013, You 2.0: The Entrepreneur’s Source Hosts “Start a Business Weekend” Virtual Franchise Expo January 24-26

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Mark your calendars!

In two days, one of the nation’s leading franchise coaching networks, The Entrepreneur’s Source, is hosting Start a Business Weekend, a virtual franchising expo January 24 through 26, 2013.

The Start a Business Weekend® expo allows attendees to “walk” through a digital Exhibit Hall and visit the booths of more than 60 of the nation’s hottest franchise concepts where they can chat live with representatives from a variety of different franchise brands, learn how to finance their new business, attend keynote presentations, and download informational resources with relevant information about franchising and specific opportunities throughout the nation. Business coaches from The Entrepreneur’s Source® will also be available to help would-be entrepreneurs discover business opportunities that meet their personal goals, needs and expectations.

 

“Today’s career economy is plagued with uncertainty, especially as more and more companies move towards a more fluid, part-time workforce. In order to take control, many are pursuing entrepreneurship through franchising as a viable means to achieve their desired Income, Lifestyle, Wealth and Equity goals for them and their families,” said Terry Powell, CEO and founder of The Entrepreneur’s Source®, noting that studies show more than 70 percent of the U.S. population looks to be self sufficient rather than working for somebody else. “This is the year to make the move to entrepreneurship and create the next, improved version of your life or what we’re calling You 2.0TM. Our virtual Start a Business Weekend® expo is all about getting important questions answered, while offering valuable resources to prospective franchisees – no matter their current situation.”

 

The Entrepreneur’s Source® has more than 25 years of experience in helping make franchisors and their franchisees more profitable. With more than 230 offices in the United States and Canada, The Entrepreneur’s Source® presents prospective franchisees with new business opportunities that complement their goals, needs and expectations, while delivering franchisors the right individuals to grow their concepts. Additionally, the company also offers business-coaching services to help franchisees advance, improve efficiency and increase the return on the investment made on their franchise business.

 

Registration for the SABW Expo is currently open, with no registration fee, at www.StartABusinessWeekend.com. For more information about The Entrepreneur’s Source® and business coaching support, visit www.TheEntrepreneursSource.com.

Friends Vs. Beyoncé: Why You Don’t Need a Celebrity Endorsement

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These days it seems like every company has a celebrity linked to its product or services: Beyoncé drinks Pepsi. Betty White eats Snickers (and plays football). Kate Hudson uses Almay and wears Ann Taylor. Ashton Kutcher snaps photos with his Nikon. Sarah Jessica Parker and Giada DeLaurentis both color their hair with Garnier products.

 

The big boys are shelling out the big bucks to big stars in exchange for public support of their business. What should small businesses and franchises do? Is a celebrity endorsement really the best use of money when you’re trying to engender customer loyalty?

 

The short answer? No.

 

Think about it; how often does a celebrity endorsement really affect your buying behaviors? Do you trust 50 Cent? What about Kim Kardashian? I didn’t think so.

 

At its core, each transaction is about trust. As a matter of fact, need or want is irrelevant– sometimes we buy things we want but don’t need and sometimes we buy things need but don’t want. Regardless of our motivation for purchasing something, as we pull the dollar bills from our wallets we’re trusting that the service or product will be or do what we believe it will.

 

A recent study by Battery Ventures makes three very salient points on the subject of buyer behavior in a social context: celebrity affiliation does not build trust, service is king and family trumps friends.

 

So, what should the little guys — franchises and small businesses– do to grow their customer base? It’s easier than you think:

 

  1. Hire the right people and treat them well. Hire employees you trust and are proud to have as part of your team. Invest in their happiness and there’s a high chance they’ll treat your customers with same loyalty and respect.
  2. Treat your customers like friends and family. One of the biggest reasons why we return to the same restaurants, car mechanics and grocery stores is based upon previous positive experiences. Treat your customer’s concerns or complaints with grace and they’ll come back.
  3. Share good news and specials through social media. Social media isn’t just for college students, as you well know by now. Businesses can really make a big difference in their bottom lines by utilizing platforms like Twitter and Facebook to keep customers engaged. It also makes it easier for friends of customers to hear about you. We all know that we trust what our friends and families say about other businesses.
  4. If you want to get someone to endorse your brand, pick someone who’s already been using your business’ goods and services. People are more likely to believe an everyday person uses and likes your business instead of Brad Pitt.

Five Reasons Why Owning Your Own Business Should Be One of Your New Year’s Resolutions

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You made it! The Mayans were wrong, your family didn’t drive you completely crazy during Christmas and civilization endures. But, there’s another hurtle left to jump: your list of resolutions for 2013. As the number of remaining days in 2012 shrinks, it’s time for you to consider your future…

 

Will 2013 be the year you (finally) learn to love kale and embrace the treadmill? Is this the year you start– and finish– all of those DIY projects? A year from now, as you reflect upon the past 12 months, will you pat yourself on the back because you did what you finally promised yourself you would do: start your own business and become your own boss?

 

Or, will you let 2013 be a carbon copy of 2012?

 

(The correct answer is no.)

 

If you plan on making 2013 your best year yet (and one of financial independence) owning your own business needs to top your list of new year’s resolutions, and here’s why:

  1.  THE FISCAL CLIFF: Despite what you’ve heard or read, the majority of small business owners aren’t so doom and gloom about the fiscal cliff/slope/precipice as you might think. As the backbone of our nation’s capitalist society, small business owners know and live the value of progress and forward movement. They’re unafraid of putting their shoulder to the wheel and know that no matter what happens, they’ll make it work.
  2. FUNDING: Traditional SBA-backed loans remain a touch-and-go source of funding for small businesses. Some find traditional lending to be the best and easiest way to raise capital. For others, banks are unwilling to loan for whatever reason.  As a whole, banks say they’d like to make more loans but it seems that many have upped their standards due to regulatory pressure. Regardless, securing a loan is definitely possible.
  3. YOU’RE A VETERAN If you’re a military veteran you are in high demand– especially in the franchise industry.  Many franchises are so pro-veteran they’re only recruiting veterans to become franchisees, like J Dog Junk Removal
    . Often, veterans are offered significantly discounted franchise fees, financial incentives and mentorship opportunities “regular” franchisees don’t receive. As an added bonus, Sprigster’s “Boost a Hero” program is specifically designed to help veterans and their spouses become franchise and small business owners through crowd-funding.
  4. YOU’RE A FORMER CORPORATE EXECUTIVE OR SMALL BUSINESS OWNER: Exiled or retired corporate executives and former small business owners make excellent franchisees. Franchisors are always keen to recruit those with business experience, especially those with an entrepreneurial spirit and previous management training.
  5. THE CURRENT PREDICTIONS FOR 2013: Again, despite what you may have heard, the franchise industry is yet again poised for growth unseen by most other industries since 2008. The number of franchise establishments is expected to increase by 1.4 percent in 2013, from 746,828 to 757,055 with the number of jobs increasing 2 percent, reaching 8.262 million, according to a study by the IFA’s Educational Foundation. In addition, the same report also projects the gross domestic product of the franchise sector to increase 4.1 percent in 2013 to $472 billion.

 

So, what will it be? Learn which franchise or business opportunity is right for you.

The Top 10 Menu Trend Predictions for 2013

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According to Pantone, the “it” color of 2013 will be emerald green. But that’s not the only trend worth considering– what about the “it” menu items diners are sure to see on their menus next year?

 

A survey of over 1,800 professional chefs produced the National Restaurant Association’s list of top ten menu trends for 2013. The top ten list indicates that consumers have four things in mind: cost, where their food comes from, gluten and their kids.

 

Consumers remain concerned about food costs while eating out, as suggested by the prediction that new cuts of meat will continue to appear on menus. These new cuts of meat, like the Denver steak, are lesser-known and less expensive but have become more popular as tough economic times have eaten into consumer’s disposable income.

 

The locovore movement continues to grow as more diners look for locally grown produce, locally raised meat, and sustainable seafood. Thanks to the popularity of cooking shows, food magazines and the rise of the celebrity chef, consumers are increasingly aware of how food appears on the dinner table– and they want it to be in an environmentally conscientious manner.

 

Gluten-free items began appearing on menus a few years ago– thank you Miley Cyrus– and, if anything, have increased in number and popularity. Pizza franchises like Domino’s offer gluten-free crusts in an effort to include those who have Celiac disease or a gluten sensitivity.

 

Many of the top trends carried over from last year, including children’s nutrition and locally sourced produce.

Do you think the predictions for 2012 proved to be true? Do you think 2013’s top ten list is missing a trend?

Vending Machine Franchise Full of Options and Opportunity– and All of Them Healthy!

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Grabbing something from the vending machine in your office building is usually a last resort when your stomach is grumbling around 4:00 p.m. Each option is a dietician’s nightmare– full of trans fats, sugar, empty calories and processed ingredients. Unless you’re grabbing something from a Healthy U Snacks vending machine.

Before T. Hephner, the owner of the Healthy U Snacks franchise, was replacing candy bars with granola bars, he worked in the pharmaceutical industry in business development. A hectic work and travel schedule kept him away from his family, so he decided to try his hand at being an entrepreneur. It wasn’t long before he latched onto the healthy vending machine concept– and almost bought a healthy vending machine franchise from a competitor.

 

“Vending is a tough business and when you nickel and dime your franchisees they’re not going to make money.” Which is why, of course, Hephner decided to start his own healthy vending franchise as opposed to buying into another concept.

 

What separates Healthy U Snacks from it’s competitors — both other healthy vending machine concepts and the traditional kind — is the concept’s cost structure and its products.

The cost structure of a Healthy U Snacks vending franchise is different– and better– for the franchisee. Hephner is interested in making sure his franchisees’ vending machines are placed in the best high traffic areas possible.

 

“We’re looking for high volume locations. Daily transactions mean money,” says Hephner.

 

Healthy U Snacks franchisees are also able to stock their machines with over 5,000 different products– from well-known to obscure health brands– because the franchise isn’t contracted to stock only a particular purveyor’s goods. The only caveat? Everything must be all-natural. While this doesn’t always mean every item is low in calories it does mean those who buy snacks from Healthy U Snacks are eating real food.

 

While Healthy U Snacks’ concept is decidedly on-trend as major efforts are made to halt America’s rising obesity rates, the franchise does face opposition.

 

“The biggest obstacle we see are in areas that are more traditional; the concept of a healthy vending machine is scary,” explains Hephner. “Times have changed. Healthy food doesn’t taste like styrofoam.”

 

Surprisingly, the least amount of resistance comes from the younger generations.

 

“When I bring in vending machines into high schools they’re empty by the end of the day,” says Hephner.

 

 

To become involved with Healthy U Snacks as a franchisee Hephner and his team really look for those who are equally excited and passionate about healthy eating and encouraging awareness of healthy eating habits. There are also two main kinds of Healthy U Snacks franchisees: those who are supplementing current income and those who want to supply vending machines for an entire territory.

 

“It’s very easy to run this business as a second source of income,” explains Hephner.

 

There are also those who want Healthy U Snacks to become their primary source of revenue and choose to invest in 20 machines spread across an entire territory. These are the rarest franchisees that Hephner has; most use vending machines to supplement their current source of income.

 

For more information on Healthy U Franchising and how to become a franchisee visit http://www.franchiseclique.com/franchise/Healthy-U-Snacks.

 

 

Yummy Cupcakes: One Sweet Franchise Opportunity

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There’s no denying the allure of a cupcake: sweet, creamy frosting (preferably vanilla) and moist, delicate cake (preferably chocolate) is a winning combination. But, can you be successful owning a cupcake bakery? Can it really make you money?

 

The short answer? Yes — and Yummy Cupcakes has proven it’s possible.

In 2004, Executive Chef Tiffini Soforenko opened the now award-winning Yummy Cupcakes in Los Angeles, California. Since then, she’s served gourmet cupcakes and other treats to customers and celebrities the world over. As of September 2012, Yummy Cupcakes is sharing its secrets to sweet success as it expands as a fresh new franchise concept.

 

Yummy Cupcakes’ hub and spoke business model positions each franchisee at the center of multiple incoming revenue streams. At the center of the business model is Yummy Cupcakes’ bakehouse, a location that both sells and bakes cupcakes. A bakehouse is capable of baking up to 12,000 cupcakes a day– enough to sustain sales at 2-4 satellite Yummy Cupcakes locations, which don’t perform any onsite baking. In addition to cupcake sells (the average ticket is $14), half of Yummy Cupcakes’ business comes from catering sales.

 

“Taste is very subjective, but our Los Angeles locations win ‘Best in Show’ each time in one of the most competitive markets,” says Dennis Mulgannon, Yummy Cupcakes’ director of franchising.

 

Part of Yummy Cupcakes’ success lies in its proprietary icing and cupcake recipes. The franchise doesn’t use a single pre-made mix for any of its 430 flavors– some of which are vegan and sugar-free– and include interesting combinations like Apple Blue Cheese and Tomato Soup in addition to more traditional, sweet offerings.

 

Currently, Yummy Cupcakes operates three locations in California and two international locations in the Middle East. Since it began franchising in early September of 2012, Yummy Cupcakes already has locations in Boston, France, Italy, the U.K., NYC, Texas, Nevada, Colorado, Oman, Japan and Abu Dhabi.

 

So, who are they looking for when it comes to potential franchisees?

 

“We’re looking for candidates with business experience– be it former small business owners or former corporate executives,” explains Mulgannon. “A passion for baking is great, but we’re not looking for someone who likes to make cupcakes– we’re looking for someone who understands basic business skills, knows what a P&L is, and how to manage a growing business.”

 

For those who are interested in starting a Yummy Cupcakes franchise or simply want more information, visit http://www.franchiseclique.com/franchise/Yummy-Cupcakes.

View the sizzle reel:

 

 

 

Pizza Hut Gets Burned Trying to Get a Piece of the Presidential Debate Audience

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Pizza Hut isn’t the first franchise to stick its foot in its mouth, but it might be the first to do so in a political arena.

 

Last week, Pizza Hut offered one of the attendees at Tuesday’s Town Hall presidential debate at Hofstra University free pizza for life if they asked one of the candidates, “Sausage or pepperoni?”

 

As Kurt Kane, the pizza franchise’s chief marketing officer said, some of the response Pizza Hut received wasn’t positive. Stephen Colbert of The Colbert Report took a stab at the franchise by saying, “What could be more American than using our electoral process for product placement?” (He kind of has a point.) And Gawker snarked, “Want Free Pizza Hut For Life? Just Make a Mockery of the American Democratic System on Live TV.”

 

Seems like a high price to pay for free pizza a week for up to 30 years.

 

Pizza Hut (fortunately) changed direction following the negative press it received. The pizza franchise will now randomly select one pizza lover who voted on the sausage vs. pepperoni topic on the Pizza Hut website this past Tuesday.

 

How has your franchise incorporated the election into its marketing? 

Could a Sports Franchise Have the Answer to Funding After School Sports?

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A franchise might just have the solution as to how America can put its youth back on the global playing field– literally.

 

The education system has seen its share of cutbacks thanks to the Great Recession. A report released last year indicates that cuts to education funding has led to:

 

  • reduction in early childhood education programs
  • increases in class size
  • termination of art, music, physical education, and other elective classes
  • elimination of Advanced Placement courses, extracurricular activities, special science, foreign language, and technology programs

To some, sports might not be a “subject” but that’s not to say that sports don’t have their place in the education system. The disintegration of organized sports in America’s school systems is a major problem, as a recent study of 317 middle school students commissioned by the American College of Sports Medicine found that:

 

  • The fittest group of students scored almost 30% higher on standardized tests than the least fit group;
  • The least fit group had grades in four core classes that were 13-20% lower than the fittest group.

 

So, what do we do? As it turns out, the franchise Sports Image might just have an answer.

As a marketing consulting agency for grassroots sports teams that are in need, Sports Image solicits sponsorships from various businesses– large and small– for teams that need everything from new uniforms to a new scoreboard.

 

As President and CEO Eric Hortsman puts it, “Sports Image is a booster club on steroids.”

 

To date, Sports Image has given over $10 million in equipment and $1 million in cash to elementary school, middle school, high school, public recreation department, religious organization, Division II college, and Division III college teams.

 

Unsurprisingly, Sports Image has watched the need for its services rise considerably since the Great Recession. Then again, the public and not for profit sectors always need financial help, something that the franchisees of Sports Image are happy to give.

 

“A lot of companies do good and charitable work. Sports Image, at its core, is helping others,” says Hortsman.

 

Tom Carmichael, a Sports Image franchisee in Virginia, loves what Sports Image does for communities, as he’s “really been taken aback by how schools are hurting.”

 

“Being a Sports Image franchisee means having your own business but also being able to understand the wants and needs of a school, and then being able to go out and get it for them,” he says.

 

As for the sponsors, “They love it,” he says. “They get good advertising from it.”

 

Prior to becoming a Sports Image franchisee, Tom spent 33 years working his way up the corporate ladder at the same company, which he admits was a wonderful opportunity. He noticed that fewer and fewer new hires had a “team mentality”, something that had been instilled in him as a youth sports player.

 

During his college years, Tom played baseball and basketball despite being legally blind in one eye. He credits his coaches with giving him confidence in his abilities despite his handicap. In addition, he’s still best friends with his teammates from his college years.

 

“It’s like putting on an old jacket; it just fits me really well.”

 

For more information on becoming a Sports Image franchisee visit the Franchise Clique website.

Is Temporary Work the New Permanent?

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The Paradigm Shift to Temporary Staffing

 

In the two years since the Great Recession ended in 2009, staffing firms have created more jobs than any other industry. As Jason Deverant, vice president of sales for @Work Personnel Services says, “Private sector temporary staffing is a leader in job creation.”

Despite the economy’s sluggish recovery, if you own a staffing franchise business has been good. According to the U.S. Bureau of Statistics, the temporary help services industry put nearly half a million Americans back to work and accounted for 91 percent of non-farm job growth from June 2009 – June 2011. For @Work, this has meant a 30 percent increase in profits over just last year.

 

“We’re looking for similar growth numbers this year,” Deverant adds.

As an industry, temporary staffing and recruiting are hyper-cyclical, fluctuating with the contraction and expansion of the economy. A study from the American Staffing Association suggests that temporary staffing firms lose jobs first during an economic contraction and create jobs first during an economic recovery. In essence, the temporary staffing and recruiting industry is a litmus test for the rest of the economy.

 

For a variety of reasons, there hasn’t been a significant shift back to permanent hiring since the recovery began. Firms are, according to Deverant “a little gun shy” about returning to the old business model of hiring employees permanently.

 

“Awareness of staffing companies has increased and attitudes have changed,” explains Deverant. The Great Recession has issued a new staffing paradigm: temporary might just be the new permanent.

 

For the employer, staffing provides an obvious value. Shielded from workers compensation litigations, unemployment, and the need to offer benefits, firms are able to mitigate the inherent risks of hiring a permanent employee while still getting a project done on time. Staffing takes into account the seasonality of certain industries, too. In addition, using a staffing agency is an enormous time saver for the employer.

 

“Very often we hear, ‘It’s hard for us to find a new candidate, I don’t have the time.’,” says Deverant.

But what about the employee? Is staffing good for the temp, too? According to Jason Deverant, it is. Instead of being tied down to one particular job every day, a temporary hire can pick and choose which projects he or she wishes to be a part of. There’s an increase in modality that’s coveted many full-time employees. In addition, work is often accomplished in a more project-oriented manner. The temporary staffer is treated more like a contractor than just a “filler” employee.

How staffing benefits both employer and employee.

The need for staffing reaches into multiple industries extending beyond the traditional administrative work, which is why @Work’s franchising model includes four distinct staffing lines: personnel, medical services, search group, and helping hands.

“Our model is more cost effective,” says Deverant, “There’s about a 30 percent savings to comparable business models.”

 

In addition to providing staffing for multiple industries, @Work prides itself on its screening process. Finding quality temporary staffers is a huge part of what has made @Work a major competitor in the world of staffing. When a firm approaches you to fill a position, they’re trusting you to do the same kind of thorough recruitment and background check they’d do– if they had the time.

Of course, @Work’s dedication to finding franchisees is equally strong.

 

“An ideal @Work franchisee candidate is, of course, someone with staffing experience,” jokes Deverant, “But most of all we’re looking for someone with relationship development skills.”

 

Many of @Works’ franchisees are former human resources professionals who have made the switch to staffing. Those who aren’t skilled in sales (or might be a little rusty) need not worry. As part of the franchise’s standard fees, @Work dedicates a substantial amount of time preparing new franchisees for their new business ownership role.

 

“Our model is fairly inexpensive when you break the costs down,” says Deverant. Of course, a lot depends on the market in which a franchisee chooses to establish his or her location, but an @Work franchise usually costs between $77,000 and $120,000. According to Deverant, this includes the franchise fee, training fees, estimation of start-up costs, equipment purchases, client development cash, and additional overhead. As Deverant notes, franchisees can make frugal choices and bring this cost down even more.

 

For more information on @Work or how to become an @Work franchisee, please visit http://www.franchiseclique.com/franchise/@-Work-HelpingHands-Services.