Archive for August, 2009

franchise resales

Monday, August 24th, 2009

Looking for a new franchise business might lead you to the idea of buying a “resale” franchise. There are many positives to buying an existing franchise, one critical one being the track record of profitability.

It is difficult to find franchises for sale, depending on what category you fancy. The franchiser holds the first right of refusal, so the franchiser is notified of any intention to sell.

Statistics show on average, businesses change hands within 5 years. This is not necessarily negatively, as there are many reasons that can lead a franchisee to sell. Retirement, family, and lifestyle changes are all common reasons why a franchise unit may be on the market. Every wise business owner has some sort of a time table for an exit strategy.

Here are some advantages that come with the purchase of a franchise resale:

Appraising the value is easier. You have historical sales and profit and loss data , providing the necessary information for an accurate forecast about the future prospects of the franchise.

The resale is fully equipped and ready to go. You can close on the sale of the business today and unlock the doors to let customers tomorrow.

Restaurant franchising- going green part 2

Wednesday, August 12th, 2009

Although no official data yet exists on the number of green restaurant franchises, the green market is definitely growing, according to the International Franchise Association, the industry’s largest trade group. The association has seen an increase in inquiries about green restaurant franchises, as well as a bigger presence at trade events. The green phenomenon has been seen across the board, which is to say that existing franchises are becoming greener and also that new franchises are starting up who are basing their whole concept on being environmentally conscious. Although the green concept has been with us for at least 25 years, it is only in recent years that this trend has become mainstream.

However, it would be hard to beat the eco-friendly credentials of one new restaurant franchise, which has taken the whole green concept to a new level. All of its fixtures and fittings are environmentally friendly, from seat cushions made from soybean oil to counter-tops made from recycled detergent bottles. Utensils are made from potatoes and containers from cornstarch, both of which biodegrade in 30 days. Ninety-eight per cent of all food served is organic and discounts are offered to customers who return pizza boxes for recycling. The building even meets environmental standards created by the US Green Building Council. Whilst this may be an extreme example of eco-friendly restaurant franchising, all the trends point to more businesses following eco-friendly policies.

Restaurant franchising – going green

Tuesday, August 4th, 2009

Environmentally sensitive practices are becoming increasingly important for many businesses and restaurant franchising is no exception. The environment is a hot topic and the public is becoming more vocal about what they expect from retailers, manufacturers and service providers alike. Environmental issues which are foremost in the public’s mind, and which restaurant franchises must now take into account, include energy conservation, recycling and organic locally sourced food.

In Britain, a government sponsored “Green Achiever Scheme” has been created to enable companies to demonstrate their environmentally friendly credentials to suppliers, customers and other bodies interested in green business. In the United States, federal tax incentives and recycling programs have been set up to facilitate those companies wanting to improve their green credentials. The number of restaurant franchises opting into such schemes in both countries has been steadily growing, as business owners take note of the public’s demands when it comes to the environment.

Consumers are becoming more aware of the environmental impact of their personal choices and, when it comes to opting where to spend their cash, are increasingly influenced by ethical business practices. Restaurant franchises have started to realize how important green credentials are to customers and investors alike. Environmentally friendly practices are gradually being introduced into every aspect of the restaurant franchising businesses. These practices range from installing solar panels, reducing carbon emissions and using non-toxic cleaning products to eliminating non-recyclable packaging and reducing the amount of all packaging used, filtering cooking oil for reuse and sourcing local, fair trade or organic produce.