Category Archives: Blog

All Franchise Clique blog entries.

What We’re Reading- Nov. 16, 2011

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FOX NEWS: Veterans have what it takes to become successful franchisees. As more veterans return from Iraq and Afghanistan many are turning to franchising as a career. – Liza Porteus Viana

SACRAMENTO BEE: Guidant Financial will sponsor one veteran each month for the next year free of charge. The financial company will also offer a 10 percent discount to all U.S. veterans in hopes of jumpstarting locally owned businesses. – Guidant Financial

PR URGENT: The United Franchise Group announces that after recent success with its franchisee lending program, its available funds have increased from $5 million to $10 million. – United Franchise Group

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What We’re Reading

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The Street: A lack of capital in an uncertain economy has made it increasingly difficult for franchisees to find sufficient funding. Not everyone loves the idea, but several franchises have taken the responsibility of financing in-house by helping franchisees through the lending process. — Laurie Kulikowski

Business Insider: A $13 billion fast food revolution is taking over India. With 60 percent of the Indian population currently under 30, it’s no mystery why both domestic and American brands like McDonald’s and Dunkin Donuts are aggressively expanding in India’s franchise-fertile economy. — Jason Overdorf

Market Watch: The Georgia Small Business Development Center has turned to franchising to help with Georgia’s joblessness. Funded by the Small Business Jobs Act, HR5297, FranNet consultants educated transitional corporate workers, retiring executives and returning veterans for businesses in the franchising industry.

Webinar Presentation: How to Get Leads

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If you’re a franchisor, you’re probably one of many who utilizes portals and directories to find franchisees. The relationship between lead generator and franchisor can be, at times, tenuous.

If you’ve wondered why you’ve received ‘bad leads’ or simply want to know how to get the most out of your relationship with your lead generator, then tomorrow’s webinar from Franchise Clique and the Upside Group is perfect for you. On Tuesday, November 8 at 1:30 p.m. EST David Schwartz, CEO of Franchise Clique, will speak about:

  • How to Get the Best Leads Possible
  • How to Get the Most Out of Your Relationship With Your Lead Generator
  • Why Bad Leads Happen
Learn more about the webinar and other presenters here.

Interview with Bob Wright, COO of Charley’s Grilled Subs

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Article first published as A Heart For Service: Interview with Bob Wright, COO of Charley’s Grilled Subs on Technorati.


In September, Charley’s Grilled Subs opened their 100th restaurant on a military installation on Joint Base Lewis-McChord near Seattle, W.A. It was Charley Shin, Charley’s CEO and Founder, who, “was smiling the widest when the first soldier came through the lunch line,” says Bob Wright, chief operating officer of Charley’s.

A self-described “incurable patriot” despite having not served in the military, Wright shares a heart for service with both Shin and the international Philly Steak sandwich franchise’s employees, which he says, “makes the franchise’s relationship with the military so special.”

 

It’s this heart for service that Wright loves about Charley’s Grilled Subs and what attracted him to franchising in the first place.

 

“My grandfather always said everyone needs a job where they work for tips,” says Wright, who got his start in franchising as ‘the pizza delivery guy’ in college for Domino’s. Eventually, Wright became a Domino’s franchisee for about a year. “I’ve been there, too,” Wright says. “Nothing replaces that experience of being the business owner, of being responsible for every customer’s experience.”

 

Though his time as a Domino’s franchisee was short, it was his time as ‘the pizza delivery guy’ that was so influential in Wright’s franchising career. “I didn’t start out wanting to be in the food service industry,” he says, “but I loved it.”

 

Over the course of his career, Wright has had the chance to work with big-name franchises like Checkers, Wendy’s, Café Express and, of course, Charley’s. Though Wright’s original plan was to practice law. Today, he practices management. To him, serving as chief operating officer of Charley’s means he gets to develop, train and lead other to success. “For a quarter of a century, I’ve had the opportunity to serve others; whether it’s my team or franchisees. It brings out the best in a person.”

 

With Wright, his words express a continuous theme of service in the name of others, which is why he fits in so perfectly at Charley’s Grilled Subs. Charley’s makes its food to order. While this might sound obvious, it’s not—most food court establishments “assemble to order” as Wright likes to say. “We don’t put anything on the grill until you order it,” he explains.

 

This is because, like Wright, the people at Charlie’s believe “a good quality meal can make a difference in someone’s day,” he says proudly.

 

For those interested in becoming a Charley’s franchisee, the selection process is straightforward. Financial liquidity and wherewithal are necessary. Above all? “A heart of service,” says Wright. It’s important for potential franchisees to have adequate experience running a business in a managerial role. It’s not easy balancing the business side of the franchise and pleasing customers.

 

With all that said, “Charley’s has experience same-store growth throughout the recession,” says Wright. “Restaurant units have seen 13% growth this year and expect a 20% unit growth through to 2013,” he adds. Charley’s Grilled Subs has a growth model in place that still includes the bread and butter food court locations but specifically internationally, which are traditionally underserved.

Visit Franchise Clique’s website if you’re interested in more food franchises or sandwich franchises.

What We’re Reading

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Notes on what’s going on in the small business and franchising worlds.

 

Las Vegas Sun: Two tax breaks that small businesses got during the Recession are shrinking. The changes affect small business’ deductions for equipment. – Associated Press

PRNewswire: CRAL Franchise Development, Inc. joined the national VetFran program in order to offer financial incentives to veterans interested in franchise opportunities. – CRAL Franchise Development

Winston-Salem Journal: Krispy Kreme Doughnuts announces plans for expansion across the pond in the United Kingdom. – Richard Craver

 

 

Franchise Clique appoints new director of sales

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CHARLESTON, S.C. (September 23, 2011) – In the wake of tremendous growth and planned expansion Franchise Clique brings new talent to the Charleston-based firm’s team as it hires a new director of sales, Young Chung.

Young Chung joins Franchise Clique as the director of sales in September. Chung brings with him over nine years of experience providing lead generation, advertising and web-based marketing services and solutions for the franchise industry. Franchise Clique’s newest hire has worked with hundreds of new and established franchise concepts.

“I’ve been impressed with the company as a whole,” says Chung of his his new employer. “Franchise Clique is very proactive and constantly making improvements, whether to the company’s website or any part of the business strategy,” he adds. Chung, who has worked for companies similar to Franchise Clique, says that, “The team is very responsive and the support for clients is outstanding.”

“Franchise Clique needed someone with a unique skill set and years of franchise industry experience,” says Franchise Clique CEO David Schwartz. “Young is the perfect addition to our rapidly growing organization.”

Schwartz, who previously worked with Chung at Atlanta-based Franchise Opportunities Network, adds that, “Young represents the next step in the evolution of our company. We couldn’t be more excited to welcome his professionalism and industry know-how to Franchise Clique.”

Founded in 2009, Franchise Clique already serves over 400 growing and well-known franchise, business opportunity, distributorship, dealership, and licensure clients. Local brands include Batteries Plus and 360Clean. “Franchisors should know that Franchise Clique’s team has over 40 years of combined experience in helping grow franchise concepts,” explains Young Chung. “The company is setting the industry standard for not only customer service, but results for its clients.”

Franchise Clique’s growth as a company hinges on more than its team’s years of combined experience. In addition to its proprietary LeadClique technology, Franchise Clique’s team members design and build out each client’s individual advertising and lead generation campaign on an individual basis, resulting in a 90 percent contract renewal rate.

 

About Franchise Clique

Franchise Clique, one of the nation’s fastest growing Internet-based marketing companies, specializes in lead generation services and solutions for franchises and business opportunities. Founded in Charleston, S.C. in 2009, Franchise Clique has used its uniquely designed innovative technology in conjunction with its team’s combined 20 years of experience to become one of the industry’s highest-ranking lead generators. Franchise Clique enjoys a top rating from the Better Business Bureau and an association with the International Franchise Association. For more information, go to http://www.franchiseclique.com or call 877-252-2340.

 

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Exclusive Interview with Margarita’s Mexican Restaurant President

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What began as a way to earn some extra cash in college turned into a career for Hugo Marin. After working part-time in a small, family-owned Mexican restaurant, he realized nothing would keep him on his toes like the food and beverage industry. He changed his major to business administration, and the rest, as they say, is history.

Today, thirty years later, Hugo Marin is the President of Margarita’s Mexican Restaurant. Marin’s résumé is impressive. Since leaving engineering behind, Marin rose through the ranks at the small, family-owned restaurant where he got his start, eventually becoming a manager. From there, it was on to more management positions at The Cheesecake Factory and Romano’s Macaroni Grill. Hugo served as vice president of operations at Ted’s Montana Grill and, later, as chief operating officer of Al Copeland Investments.

 

Homecoming

 

It was during Hugo’s time at Al Copeland Investments, the parent company of Copeland’s, Cheesecake Bistro and Copeland’s Express, that the opportunity to work for Margarita’s came his way. He had been approached by headhunters before looking for candidates with his years of experience, but hadn’t been interested until now.

“My stars aligned,” says Hugo of the job opportunity. Marin’s wife is originally from New England and the two of them had been patrons of Margarita’s for years before moving to Louisiana so Marin could work for Copeland’s. “It was like coming back home,” he explains.

 

Getting Down to Business

 

Nine weeks ago, when Hugo Marin became president of Margarita’s Mexican Restaurant, he was charged with expanding the Margarita’s brand both as a franchise and as a corporation.

For 2012, he’ll put the majority of his effort into supporting new and prospective franchisees. “Knowing how to manage relationships with franchisees,” is something Marin says he’ll bring with him courtesy of his years with Ted’s Montana Grill and Copeland’s. As of the first of June, Margarita’s Mexican Restaurant’s welcomed its first franchisees wand their new location in Livingston, N.J. The newest members of the Margarita’s family are in the process of opening four additional locations.

As far as the Mexican restaurant’s corporate growth is concerned, Marin says he’ll focus on that component of his strategy in 2013. He hopes to perfect Margarita’s franchising model and have a strong infrastructure in place so the company “can grow sustainably.”

 

This disciplined approach to franchising stems from co-founders John and Dave Pelletier. The brother duo staunchly believes that being successful franchisors means viewing things in terms of “our business” as opposed to “their business” when it comes to the franchisee-franchisor relationship. Rapid-fire franchising doesn’t allow for Hugo, John or Dave to provide the type of support they feel their franchisee partners deserve.

 

Being a Margarita’s Franchisee is Like Being a New Family Member

“The perfect Margarita’s Mexican Restaurant franchisee is experienced in quick serve restaurants, quick casual restaurants and multi-unit franchises,” says Hugo. Of course, access to financial resources is also important. Franchisee hopefuls need access to capital to grow and sustain their franchise location for 5-6 years. The initial investment to open a Margarita’s franchise unit is between $1.5 million to $2.5 million.

 

“We’ve been lucky,” says Hugo of the financial fortitude of Margarita’s. Their franchisees haven’t experienced any problems securing loans, SBA or otherwise. The franchise is pre-approved by the SBA for loans.

 

In addition to financial backing, “It’s important that the franchisee has local knowledge of consumers, laws and regulations,” says Marin. Part of the Margarita’s culture is its commitment to the local community. Those who want to become a part of the Margarita’s family must be capable of duplicating Margarita’s brand and culture. Margarita’s Mexican Restaurants are, above all, a family.

 

“The family feel that the owners have created is like no other,” says Hugo of founders John and Dave. There are a number of employees, from servers to corporate employees, who have been with the company between 15 and 20 years. One such employee in the Boston area has been a server for 22 years. She’s otherwise employed, but picks up a shift or two during the week because she loves the work environment so much.

 

All franchisees have Hugo, John and Dave’s personal cell phone numbers and are met with on a monthly basis to receive support and guidance from the executive team. According to Hugo, the secret to the franchise’s family feel is that John and Dave understand that, “it’s not about them. They take into consideration how people are going to react. People work hard for them without being asked.”

 

That’s the kind of love and dedication Hugo himself has for the company. “Right now my number one goal and challenge is immersing myself in the culture inside-out,” Hugo explains. “I’m learning the Margarita lingo.” Marin feels it’s important to run a company as if you own it—just another way he’s committed to making himself a true member of the Margarita’s family.

 

“We’ve been around for 25 years; if you want to be a part of a family that celebrates your successes on both the corporate and franchising sides, this is a great company to work for,” concludes Hugo.

 

Interview with CEO of British Swim School

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If you’re a British Swim School franchisee chances are you don’t own your own pool.

 

“We don’t build pools,” says Chris Simnick, founder of Synergy Franchise Group, LLC.  While that might sound counterintuitive, it’s actually just one of the many important details Chris and British Swim School CEO Rita Goldberg have nailed down in the process of making British Swim School a successful franchise. As it turns out, owning your own pool increases your overhead costs due to maintenance, repairs and general upkeep.

 

 

The Beginning of The British Swim School

 

Rita Goldberg has always been a swimmer. Born in Manchester, England, the British Swim School’s chief executive officer was a national swimmer in Britain and later worked in England’s education system as a swimming instructor. She began giving swimming lessons independently and soon a light bulb went off—this was what she wanted to do for the rest of her life.

 

Rita opened her first swimming instructional facility in 1981, after installing a swimming pool in the basement of a Victorian house, which according to Rita was “no small feat.” Within two months she had over 450 students and was operating at capacity. It was here that Rita took painstaking measures to develop standardized procedures to make swimming lessons both effective and fun for her students.

 

Growing, Growing, Growing

 

Ten years later, Goldberg moved to the United States. In 1993, she opened her first indoor swimming school in Coral Springs, Fla. and began implementing programs at other pool facilities in Marriot hotels and health clubs.

 

As the success of her swimming instruction classes grew, Rita turned to franchising to expand her business. “I knew I couldn’t do it all myself,” she said. Goldberg recognized in order to expand her business in a way that upheld the standards she had created she would need others that had a passion for swimming, children and teaching.

 

Rita enlisted the help of Chris Simnick, whom she’s aptly nicknamed “Guru,” to help her with the process. Simnick has over 30 years working with franchises; he’s been a franchisee, a franchisor, and an independent business owner.

 

Being a Franchisee

 

“We should prepare our franchisees to hear, “My child learned more today than a full summer of lessons!” from parents because we hear it so often,” says Goldberg.

 

Goldberg has done more than create a service that parents love; she’s developed a method of teaching children that appeals to them. “Children learn so much better when they’re having fun,” says Goldberg. It appears the British Swim School has found a way to integrate what both parents and children want. Today, there are 3,000 students taught at a British Swim School location in the U.S. in one week.

 

Though the franchise is fairly new, that hasn’t stopped British Swim School franchisees from experiencing tremendous success. One franchisee, located in Maryland, doubled in size in one summer; increasing the number of students she teaches from 250 to 500.

 

But it’s not all fun and games—there’s a tremendous amount of hard work that comes with the territory. The training process for a new British Swim School franchisee is rigorous. Hours are spent in the pool and also learning about the business model itself. “If the franchisee isn’t ready things don’t move forward,” says Rita.

 

That’s not to say the British Swim School’s management team isn’t supportive. “Unless we are good franchisors we won’t have good franchisees,” says Rita. That applies to more than just the training process. Whenever a franchisee is experiencing difficulty of one type or another or simply needs advice Rita herself and her team are more than happy to help.

 

The Business Model

 

“Rita’s successful track record validates her business model,” says Chris Simnick.

 

The possibility for a British Swim School franchisee to do well and “make a great wage,” as Rita says, is very high. First and foremost, franchisees don’t need to own a pool to become involved. Pool construction, as Rita knows, can be an expensive undertaking. Pool maintenance, upkeep and adherence to health codes are added concerns a franchisee doesn’t need to worry about with British Swim School.

 

All franchisees rent pool time from hotels, health clubs and similar organizations with the help of the British Swim School’s management team. Pools are selected with particular demographics in mind.

 

The beauty of the British Swim School’s model, aside from minimum costs to the franchisee, is the capability to move and follow clientele as neighborhoods change, students move, and pools undergo maintenance. Also, because of this fluidity, franchisees are able to generate income from multiple locations.

 

For Rita, it’s rewarding, “getting others to do equally well and watching others experience the same joy,” that she experiences from the success of the British Swim School.

 

It’s clear, however, that for Rita Goldberg, the success of her students remains the most rewarding aspect. “When you have a little one come in terrified one day and swimming laps the next, it’s a particular type of joy.”

 

If you’re interested in learning more about becoming a British Swim School franchisee we can help!  

Check Yourself Before You Wreck Yourself: Emotional Contagion In the Workplace

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On October 14, 2003, Steve Bartman was escorted by ballpark security from Wrigley Field. He wasn’t a rowdy fan nor had he started a fight. He had innocently reached for a foul ball hit down the third base line and disrupted a potential catch by Chicago Cubs outfielder Moises Alou, embroiling Bartman in a terrible case of mass emotional contagion.

Emotions are contagious—hang around a smiling, happy baby and you can’t help but smile yourself. Spend time with an anxiety-ridden person and you’ll find yourself biting your own nails and tapping your toes. Emotional contagion is the tendency to catch and feel emotions similar to those around you. It’s been around since before our ancestors invented the first language.

When Moises Alou’s potentially game-making catch was ruined by Bartman’s attempt to snag a foul ball, Alou understandably reacted with extreme frustration, anger and contempt. He threw a tantrum on the field yelling at the fans, at Bartman, slamming his glove down on the ground and angrily gesturing at the crowd.

The brain’s Mirror Neuron System (MNS) interprets the body language, pupil movements, vocal tones and facial expressions of those around us. In turn, we begin to mirror those same sentiments with our own physical and facial movements. When Moises Alou reacted as he did, even those who couldn’t hear or see him but heard the description of his reaction began to mirror his sentiments and direct them, too, at Bartman. As a result, the normally friendly Chicago Cubs fans became an angry mob.

For the remainder of the game, Bartman endured jeering from those within and outside of Wrigley Field. The crowd chanted derogatory names, threw pretzels, hot dogs and beer at the Cubs fan shouting, “We’re gonna kill you!” as he was eventually led from the ballpark by security.

But what if Moises Alou had controlled his temper? Instead of being angry for a period of minutes, what if he’d shown his frustration and then visibly moved on, refocused on the game?

Whatever the reason, we’ve all experienced moments of duress, stress and negative emotions at work. Sometimes we breeze through the tough times. Others, we become mired in a negative funk. Like a junkyard dog that couldn’t leave an open can well enough alone, our noses are stuck and all we can do is wait for someone to help us.

Unfortunately, negative emotions are easy to catch. That’s why it’s important to learn to be aware of how you’re acting and what you’re saying when you’re having a bad day. You may pass it on to others. Consider how you feel if the boss scolds you or if you’ve had fight with a coworker. Your feelings become a distraction and you’re less productive.

To combat the blues, “You don’t need to try to feel positive,” says David R. Hamilton, PhD. “Just recognize that your body language and facial expressions reflect mood, so use these as tools.”

“Lift your shoulders back, breathe deeply and easily and smile if you can. With any luck, [the MNS of the coworker] will be able to mirror you,” says Hamilton.

After Moises Alou’s temper tantrum in left field, shortstop Alex Gonzalez misfielded the ball (a rare thing for the Cubs player). Had Gonzalez properly fielded the hit, the Cubs could have ended the half-inning with a double play still ahead by two runs. Instead, the focus remained on Steve Bartman as fans became more and more agitated.

The focus had completely shifted; distracted by their rage, anger, disappointment and anxiety the players and the Cubs fans directed a portion of their energy at Steve Bartman, instead of where it should have been: the game. The Cubs lost the game 8-3 to the Florida Marlins, who went on the win the world series that year.

The next time you’re angry, anxious or just not having a good day, remember how you’re feeling will spread to those around you. Though it may be unintentional and completely natural, it can still steal the show.

How To Get The Most Out of Your Franchise Search

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Becoming a franchisee is a big decision. Picking the wrong franchise is a big mistake. The easiest way to avoid kicking yourself for selecting the wrong concept is to do your research and request information on multiple franchises from a franchise directory or portal. You’ll see a big pay-off.

 

You can search based on your criteria

Only have a certain amount of available investment capital? Interested in staying in a particular state, region or country? Want to work in a particular industry? Franchise directories and portals let you search hundreds of available opportunities according to what’s most important to you. Not sure what you’re interested in yet? You can always browse the directory or portal’s list of available concepts for inspiration.

 

You Can Submit For Multiple Concepts Without Visiting Multiple Websites

Franchise directories and portals also let you submit for multiple concepts at once, a critical part of finding the right franchise. Many of them suggest related concepts based on those you’ve viewed, cutting down on additional legwork. The more you know the better you’ll be able to select your perfect franchise fit.

 

Treasure Troves of Information

Updated regularly, franchise directories and portals are valuable information resources. Often, they’ll have articles on franchises, small business news articles and helpful hints for franchisees. In addition, newly established franchises will be listed as soon as they’re ready to expand, a fantastic way for entrepreneurs to find new and exciting business ventures.

 

Your Direct Link to Franchise Development Teams

When you submit for information from a directory or portal, your information goes directly to the franchise development teams that interest you. On the rare occasion you don’t receive information or a phone call from a franchise development team member the directory or portal you used will be happy to contact them for you. Directories and portals generally have good relationships with the franchises they list on their websites. When you speak with the directory or portal, suggest a time of day you’re normally available to talk if you’re interested in speaking with a franchise development team member directly.

 

Do you have any suggestions on how to find the best franchise? We’d love to hear from you. Please leave your comments below. 

Why Small Businesses (And Franchises) Need Social Media

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If you think social media isn’t important, you’re wrong. Take a look at the scandal surrounding former Rep. Weiner and you’ll see the impact social media can have. Take a look at Lady Gaga, and you’ve got a picture perfect example of your Twitter feed’s potential power.

 

Regardless of whether or not you believe Twitter, Facebook, or LinkedIn can respectively sustain their current level of success, everyone around you is using social media. So, why aren’t you using it to gain a competitive edge against big businesses? Facebook, Twitter and LinkedIn are great resources because they’re inexpensive (read: free), user-friendly, fun and fast.

 

Social media is inexpensive. For the small business owner, any free marketing tool should be cause enough for celebration. Small businesses are having trouble enough securing loans to open up their doors let alone finding extra funds to devote to marketing initiatives.

 

You shouldn’t be surprised that social media platforms are user-friendly; your customers are (probably) using it. If you’re afraid of technology or unfamiliar with how any of the popular social media platforms operate, don’t be. It will not take you more than a few days, at most, to navigate the social media waters. You can always ask a coworker or employee to help you if you need it—which I doubt you will.

 

Social media can be an effective way to connect with customers, when used correctly. Don’t ever forget that social media is about conversing and engaging with your audience. Once you start pushing your product or service they’ll shut you out.

 

If a customer likes something you do or make ask them to tweet about it or write on your Facebook wall. Respond to them, thank them the same way you would if they said these things in person. Also, for your fans on Facebook, let them know about upcoming events, specials or sales before others.

 

Conversely, if your customer is unhappy, social media can also be an effective way to begin to handle the situation. Responding to a tweet or Facebook message is easier for the customer and for you—it’s fast.

 

Say, for example, you’re a pizza restaurant that delivers. A customer tweets, “Was looking forward to my Hawaiian pizza from @LovinInTheOven but got pepperoni instead. #disappointed” and includes a picture of the pepperoni pie. Even if you catch the mistake the next day (and presumably the customer eats the pizza anyway) tweet the customer an apology and offer to make it right. For a small business, this is a great way to show you care. Bonus points if you can secure a photo and/or a tweet of the customer eating a slice of Hawaiian.

 

What if you find yourself in a United Airlines-style situation? Well, presumably as a small business your customer’s dissatisfaction won’t get to that level. Due to your size, you’re closer to your customers and don’t have as many bureaucratic hoops to jump through. Just in case you accidentally do break a customer’s guitar and give them the runaround in fixing the issue, here’s how I would assuage the sticky situation after he’s posted a YouTube video:

United Breaks Guitars

  1. Apologize first in an official capacity (standard operating procedure).
  2. Say you’re sorry in a creative way. Perhaps you can post a YouTube video as a response. Picture United personnel singing the tune of “Why Can’t We Be Friends” featuring a new Taylor guitar identical to the one you ruined that somehow finds its way being delivered to the unhappy customer.

 

Aside from apologizing to customers and getting positive feedback for your business, social media is also a fun way to share your business’ culture. Do you always host a tacky Christmas sweater party? Share these embarrassing photos with your customers. Your customers are people first and foremost and social media is one way to maintain a fun, light-hearted connection with them outside of your business’ four walls.  Did you find a funny video you that brightened your day? Share! Chances are if something made you smile it will do the same for them—they’ll like you for it.

 

Take a look at our social media platforms for inspiration

Facebook

Twitter

LinkedIn

Should You Take Your Franchise International?

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The value of the U.S. dollar is languishing near levels not seen this low since July of 2008.As of today, the value of one U.S. dollar is 0.6999 Euro or, conversely, one euro buys roughly one and a half U.S. dollars. If you’re wondering why you’re taking fewer vacations and there are more tourists around, this is why. They can buy more here now and you can’t afford to leave.

In case you haven’t heard (and if you’re in the franchise world I’m sure you have), the Subway sandwich has served up some major competition to the hamburger giant, McDonald’s. Worldwide, Subway had 33,749 restaurants at the end of 2010. McDonald’s trailed 12 units behind with 33,737. A great deal of each of the franchise giants’ growth is due to their expanding appetite for the Far East.

 

It’s no secret that for years U.S. manufacturers have outsourced jobs to places like China, India and Vietnam. It simply costs U.S. businesses less to pay Chinese or Indian workers to do the same amount of work as an American, at least for now. Over the past 25 years, considerable global economic growth has been the product of manufacturing growth. As a result, Asian countries (as well as basically everyone else) have benefitted. Quite frankly, more manufacturing jobs have resulted in increased productivity and profits for businesses. Since 2005, the value of the Chinese yuan (pronounced yen) has increased by over 20 percent versus the U.S. dollar.

U.S. franchise brands are already doing well in China, Singapore, Vietnam and Malaysia. The franchise industry has a window of opportunity to take advantage of Asia’s growing economies and subsequently their growing purchasing power while the value of the U.S. dollar is roughly six and a half times more than the yuan.

 

In case you needed more convincing as to the validity of international franchising, here are a few more facts you should know:

  • Over 95 percent of the world’s potential consumers are outside of the United States.
  • India’s franchising sector is growing at an approximate rate of 30 percent annually.
  • Vietnam’s franchise market has experienced an average growth rate of 30 percent in recent years.
  • According to William Edwards, CFE, the key international markets that are expected to have strong franchise growth in 2011 include China and Vietnam.

 

Related reading:

1. Wall Street Journal: Subway Runs Past McDonald’s Chain: http://online.wsj.com/article/SB10001424052748703386704576186432177464052.html

2. Weak Dollar Boosting Quarterly Earnings – Wall Street Journal