Intuit Presents: What’s New in Unit Economics?

Posted on by Michael Webster

In 2007, Popeyes was in bad shape.  “Popeyes performance in 2007 couldn’t have been much worse” recounts Cheryl Bachelder in her book Dare to Serve.  The only thing worse was facing the franchise owners who were complaining about the existing marketing plans.  More on that later.

 

“Every data point we measured was going the wrong way.” says Cheryl.

 

We all know how this story ends and in a few short years, Cheryl’s team turned around Popeyes — despite the 2008 financial meltdown– and the results were remarkable, adding value to increase the stock price from $13 to over $50 on a consistent basis.

 

How did her team do this?  “At the beginning of the turnaround, we had no financial data on the restaurants.  As a result, we didn’t know whether the marketing promotions we used to drive sales were profitable to the owners or not.”

 

And those franchise owners who complained about marketing dollars — still complaining but with a twist, this time.

 

A year into the  turnaround, Cheryl and her team were lambasted by the franchise operators, who claimed that the June promotion “had nearly bankrupted the Popeyes franchise system because of the discounts.”

 

Cheryl replied: “Actually, the Popeyes system had its highest absolute dollar profits in June.”

 

A franchise owner retorted: “How do you know that?”

 

Cheryl: “Because we have the over 1,000 restaurant P&Ls.”

 

The franchise owner, who smiled: “Then you actually know.”

 

And your franchise owners want you to be in the know, too.  So come out and find out the various ways you can collect the P&Ls from your owners.

 

 

Our partner for this Lunch & Learn is Intuit, who has a franchisor program specifically designed to get better financial data for your franchise system from your franchise operators/owners.

 

Hear from local franchisors.

 

Dave Posin, co-founder of Soldierfit.  Soldierfit is a unique, functional fitness, boot camp program located in the Maryland, Washington DC area.

 

Dori Roberts, Dori started Engineering For Kids and began offering summer camps, birthday parties, after-school programs, and evening classes at local community centers and schools. She has now franchised her concept and has over 150 locations worldwide. 

 

 

 

 

And a better story to tell the public and franchise candidates.

 

 Warren Lee Lewis Moderator

Time: Tuesday,  November 13th from 11:45 – 2pm

Columbia Country Club 

7900 Connecticut Ave

Chevy Chase MD

Registration 11:45 – 12:15 – Lunch 12:15 – 12:45 – RoundTable 12:45-2:00

Click Here to Pay and Register

What’s New in Franchises Sales Processes?

Posted on by Michael Webster

Your Franchise Sales Process, “FSP”, dates back to the early 1990’s — especially if you are awarding franchises instead selling a franchise.

In the early 1990’s, we had:

  1. Land lines for phones. “Smart” phones had an answering machine, but most people answered their calls.
  2. You used a fax to send a written document.
  3. Email was restricted to people who had University accounts.
  4. People read newspapers, looked for jobs and new businesses in the classifieds of the newspapers.

Prospects who inquired about your franchise were easy to get a hold of.

Now, almost 30 years later, we have:

  1. Cell phones which automatically block many callers and send them to voice mail.
  2. Faxes are obsolete, unless you are working in a hospital.
  3. Spam filters at the ISP level and local mailbox level prevent most unsolicited email from reaching your target.
  4. The reach of newspapers has been severely curtailed.

Prospects who inquire about your franchise are very hard to get a hold of — if you are just using 1990 technology.

So, how does your FSP need to adapt?  Here are new better practices you want to be adopting.

  1.  What are new methods of lead generation?
  2. Why are portals increasingly expensive and ineffective?
  3. What can your franchise sales team do to get more scheduled calls from prospects?
  4. Why your prospects won’t fill out your online application.
  5. Can your FSP be automated?  Will it help?

 

Join our panel on Tuesday, Sept 18th, at the Tower Club to Learn More.

Let’s Make a Deal – New Ways to Manage Franchise Conflict

Posted on by Michael Webster

Business Conflicts are not easy to manage. It is hard to find a deal.

And Franchise business conflicts are even harder.

Our next panel will explore alternatives to just suing the heck out of everyone — how to mediate your franchise conflicts, get better results faster, so everyone can get back to business.

We have two superb franchise attorneys – Arthur Pressman & Richard Rosen.

Both are excellent trial lawyers, but now believe that mediation can be a better method for solving the busines problem — because mediation leaves the business people in more control & emphasizes deal making over “who is in the right”.

Warren Lee Lewis Moderator

Time: Tuesday, May 15th from 11:45 – 2pm

The Tower Club in Tysons Corner VA

For our newer members, please review the Tower Club’s Dress Code.

Registration 11:45 – 12:15 – Lunch 12:15 – 12:45 – RoundTable 12:45-2:00

Click Here to Pay and Register

Franchisor and Franchisee Panel Discussion – Solving Marketing Problems Together

Posted on by Michael Webster

Franchisors and Franchise operators have many common goals — getting more customers for the franchise system is a major common goal.

Marketing in the 21st century requires even more coordination than the past, when a national marketing fund could be ear marked for either TV or Radio ads.

What are some of the new ways franchisors & franchise operators are working together using the new social media platforms?

Come out on March 20th & hear from our CAFA panel. We have terrific mix of suppliers, SEO SAMBA, and franchisors, The Premier Companies – Franchisor, Rent to Own, and The Cleaning Authority.

warren lewis.jpgWarren Lee Lewis Moderator

Time: Tuesday, March 20th from 11:45 – 2pm

Columbia Country Club, Chevy Chase MD

For our newer members, please review the Columbia Country Club’s Dress Code.

Registration 11:45 – 12:15 – Lunch 12:15 – 12:45 – RoundTable 12:45-2:00

Click Here to Pay and Register

Franchisor and Franchisee Panel Discussion – Solving Marketing Problems Together

Posted on by Michael Webster

Franchisors and Franchise operators have many common goals — getting more customers for the franchise system is a major common goal.

Marketing in the 21st century requires even more coordination than the past, when a national marketing fund could be ear marked for either TV or Radio ads.

What are some of the new ways franchisors & franchise operators are working together using the new social media platforms?

Come out on March 20th & hear from our CAFA panel.

Lewis_Warren_1305_LinkedIn.jpgWarren Lee Lewis Moderator

Time: Tuesday, March 20th from 11:45 – 2pm

Columbia Country Club, Chevy Chase MD

For our newer members, please review the Columbia Country Club’s Dress Code.

Registration 11:45 – 12:15 – Lunch 12:15 – 12:45 – RoundTable 12:45-2:00

Click Here to Pay and Register

Franchising & Politics – The IFA Presents the Year In Review

Posted on by Michael Webster

Hey, you should start your 2018 out right. Getting up to date on all of the legal and political changes that affect your franchise business & bottom line.

Corporate taxes, Joint Liability, and a host of other changes that have signficant impact on your business.

Come here Robert Cresanti, President & CEO of the International Franchise Association explain these issues to you.

You’ll want to be up to date and well informed on new opportunities and the significant politial and legal challenges facing franchisors.

Your franchising success depends on getting the best franchise intelligence available and CAFA is where you’ll get it.

And now for something completely different. For ths event, we have a new moderator! Please welcome Marisa Faunce.

Marisa Faunce, Moderator, is a franchise attorney with the law firm of Plave Koch PLC in Reston, Virginia.

Marisa has more than 20 years of experience representing franchisors with respect to their transactional and regulatory matters.

She is also a trademark attorney and handles domestic and international trademark portfolios for franchisors

Time: Tuesday, January 16th from 11:45 – 2pm

The Tower Club in Tysons Corner VA

For our newer members, please review the Tower Club Club’s Dress Code.

Registration 11:45 – 12:15 – Lunch 12:15 – 12:55 – RoundTable 12:55-2:00

Click Here to Pay and Register

New Rules on Earnings Claims- Which Franchise Brands Do They Hurt or Help?

Posted on by Michael Webster

“How Much Money Can I Make with Your Franchise Brand?” The New Rules on What You Can Say —-

The FTC permits a franchisor to make financial performance representations, also called “FPRs” or “earnings claims”, in Item 19 of its franchise disclosure document, “FDD”.

The franchisor has to have “a reasonable basis” for the representations.

Starting next year, early 2018, the rules for FPRs will change for many franchisors.

Here is just one example of the effects of the changes.

Some franchisors provide just average or median sales information in their Item 19.

But, starting in 2018, franchisors will need to add highest and lowest sales in the sample set.

There are many more changes, which our panel will helpfully point out to you.

This matters to you, your franchise brand, and how you sell franchises in a lawful manner.

You need to stay up to date on these changes.

CAFA has a terrific panel of well regarded state regulators & highly experienced franchise attorneys to help you out.

So, come to CAFA on Tuesday, September 19th to find out which of your franchise selling practices will be affected by the new rules & what you can do to prepare for these changes.

Dale Cantone – is an Assistant Attorney General for the State of Maryland and the Deputy Securities Commissioner for the Maryland Securities Division.

Dale is the chief of the franchise and business opportunity unit of the Maryland Securities Division. In addition, since 1996, Dale has served as Chair of the Franchise and Business Opportunity Project Group of the North American Securities Administrators Association, Inc. (“NASAA”).

NASAA is a group of state administrators that proposes model laws, policies, and initiatives to promote investor protection as well as uniformity at the state level. Among other initiatives, NASAA authored the Uniform Franchise Offering Circular Guidelines.

Tim O’Brien — Chief Examiner Virginia Division of Securities & Retail Franchising Richmond, Virginia

The Virginia Division of Securities and Retail Franchising is responsible for the regulation of securities, broker-dealers, broker-dealer agents, investment advisers and their representatives.

It is also responsible for the registration of franchises and trademarks in Virginia.

David Cahn, Franchise Attorney since 1995, speciality practice focused on franchise relationships, extensive experience with regulatory compliance, transactions involving franchised businesses and disputes between franchisors and franchisees.

Warren Lee Lewis, Moderator, is the author of The Franchise Seller’s Handbook.

And recently awarded, The Best Lawyers in America 2009-2016, Listed in Washington, D.C. for Franchise Law