It has been said, on more than one occasion, that what is good for the franchisee is good for the franchisor.  This is certainly true in a very general sense.  After all, the more profitable the individual franchises become, the more alluring the franchisor becomes in the eyes of new investors.  Since each new franchise is a source of royalties and other income for the franchising company, the franchisor has a steep interest in boosting its appeal by boosting the success of its existing franchises.

As we say, though, this mutually beneficial arrangement is only true in the broadest sense.  When taken to the level of the individual franchise owner’s relationship with the franchisor, the truth may be somewhat different.  While the franchisor may, overall, act in the best interest of the majority of franchisees, the individual franchisee may, at times, find him or herself at odds with the franchising company.  This can be most easily seen in the area of marketing.

Marketing Strategy

As stated, the franchisor’s aim in marketing campaigns is to benefit the broadest range of its franchises.  This is not a light undertaking, and many franchisors expend a great amount of money and energy into marketing research to determine just what tactics will be most likely to succeed for the greatest number of franchisees.  On the franchisees’ end, there is probably little or no involvement into the process of developing marketing strategy.  This is simply one of the cost of franchising for the individual owner.

Marketing Conflict

Conflict arises when the marketing techniques hit upon by the franchisor as most likely to benefit the greatest number of franchises actually work against a percentage of its franchise owners.  Quite simply, what plays well in one region may not be well received in another.  In these instances, the goals of the franchisor come into direct conflict with those of a small group within their organization.

The CKE Example

A rather prominent example of this can be seen in advertising campaign carried out by CKE to promote business in the franchisor’s Carl’s Jr. and Hardee’s fast-food chains.  CKE, deeming that the child/parent market was fairly well cornered by competitors such as McDonalds, decided to target the less sought after demographic (in the fast-food industry) of young men.  To accomplish this aim, they ran a series of advertisements featuring prominent female celebrities in risqué outfits and scenarios, designed to appeal to the average young male.

While these advertisements played remarkably well in most areas and many of the franchise locations saw the anticipated boom in young male customers, some franchises actually suffered from the ad campaign.  In the south and in other typically conservative areas the ads were not received well and many franchisees in those areas found themselves under attack rather than raking in profits.  So, though the campaigns could be construed as an overall success for the Carl’s Jr. and Hardee’s brands, a number of franchise owners saw their business decline because of them.  However, such incidents are not the rule, but rather are the exception to it.

At the heart of franchising is the root concept of taking a business model that has proven effective and distributing it so that other aspiring business owners can reproduce it.  For a franchise to be successful, it must mirror the bulk of the key aspects of the original company, or reflect the changes implemented by the franchisor across all franchises.  This requires uniformity, not just of appearance and procedure but of each franchise’s products and/or services.

To achieve a uniformity of products or services across a wide geographical range of franchises, a franchisor may place certain restrictions on franchise owners regarding acceptable sources of supplies.  This control may range from strict guidelines as to what vendors may be used, to simple guidelines regarding product quality.  There are a number of basic models employed by franchisors to ensure uniformity and any, or a combination of several types, may be used by any given franchisor.

Unrestrictive

In some instances a franchisor may completely forgo setting restrictions on what vendors or distributors its franchisees may use.  Rather, the franchisor will establish guidelines concerning the quality of product used and guidelines for the products and services provided by the franchisee.  The franchise is free to pursue its own supply sources, so long as the standards of the franchisor are upheld.  This model, however, is relatively uncommon.

Franchisor as Supplier

A slightly more common model of supply and distribution features the franchising organization playing the role of supplier and distributor for its franchises.  Though this is the most effective means of ensuring absolute uniformity across all franchises, it is really only an effective approach for relatively small franchising organizations.  Larger franchisors attempting to fill the role of supplier could quickly find that the bulk of the company’s resources are wrapped up in the supply and distribution end and the focus is taken away from franchise development.

Approved Vendors

For larger franchising organizations, the approved vendor-distributor model often works best.  This method allows a greater control of uniformity than the non-restrictive model, but does not put the burden of supply and distribution on the franchisor.  Instead, the franchisor seeks out vendors that meet the quality standards of the franchisor and franchisees are contractually obligated to obtain supplies only from these approved vendors and distributors.

Purchasing Cooperatives

Many well established franchisors may choose to allow and encourage their franchisees to establish purchasing cooperatives in conjunction with obtaining supplies from approved vendors.  As with the above mentioned model, the franchisor has final say over which vendors and distributors the franchise owners may use for obtaining supplies.  However, under this model the purchasing cooperative of franchisees bargains collectively, on behalf of franchisees, to purchase supplies in bulk.

By this method, franchisees are able to enjoy greater purchasing power and can obtain supplies at reduced prices.  Franchisees purchase their supplies directly through the cooperative, paying into the cooperative rather than to the individual vendors.  The purchasing cooperative can then oversee the distribution, or bargain for distribution via the supplier.

As a restaurant owner you are undoubtedly all too familiar with the ongoing struggle to find ways to contain and reduce costs in your business.  Though cost management is always an important aspect of the success of your business, it is becomes even more important when the economy begins to suffer as it has over the past few years.  As more and more restaurants begin shutting their doors for good, it becomes even more important to be smart about the way that we run our businesses so as to avoid joining those who have failed.

When every single penny counts you cannot afford to leave any stone unturned in your quest to maximize profits by reducing costs.  There are a number of cost management measures that many fail to notice.  One of these lies in the area of insurance.

Insurance is an absolute necessity.  Not only are you legally obligated to carry certain coverages, but it is just good sense to protect yourself and your business.  Though we all hope that we will never have cause to utilize those costly plans, it is certainly an instance of “better to have it and not need it than to need it and not have it”.  There are ways to reduce your insurance cost without sacrificing the amount of coverage that you carry, though.

One of the most obvious ways to drop the cost of the insurance you carry as a business owner is to raise your premiums.  You can potentially save a lot of money this way, especially if you are fortunate enough to not have to file claims.  The best way to protect yourself if you choose to do this is to set aside the difference between what you would be paying for a lower deductible and what you pay for the higher deductible.  By setting aside money in this way you can cushion yourself should you find yourself needing to pay out of pocket.

Of course, should you find yourself not needing to cover those deductibles, then so much the better.  The best way to do this is to crack down on safety issues in your establishment.  Knuckling down about safety in your restaurant can work in your favor in several ways.

Most obviously, if you are doing everything in your power to prevent accidents from occurring in your place of business then you stand a much better chance of avoiding having to pay out those costly deductibles.  This means that the money you set back, which you saved from your reduced insurance payments, is money for your business – a net gain.

Improved safety works in favor of your business in another way, though.  Businesses that report few or no workplace injuries become eligible for further reductions in the cost of their insurance policies.  In fact, by just reporting less than average workplace injury claims you may be able to save as much as 25% off of your insurance premiums.

Finally, shop around for insurance often.  At least once a year, when it comes time to renew, take a look around and see who is offering the best rates.  Never make the mistake of simply renewing with your current company just because they are who you have always used.

At some point in almost every young person’s life, usually fairly earlier into their work career, they set their sights on a leadership position within whatever organization they have gained employment in.  While restaurant management may offer its own rewards, it isn’t a task that just anyone is well suited for.  Successfully managing a restaurant requires the ability to think on your feet and to multi-task to a high degree.

It is because the duties of a restaurant manager are so stringent that leadership positions within a restaurant are often broken down into a number of subsets, such as assistant managers, crew leads and the like.  In many large restaurants the kitchen may operate under the auspices of an executive chef who undertakes most of the duties of managing kitchen operations while a floor manager supervises the servers and greeters.  However, at the top there must always be one main supervisor holding the totality of operations together into a fluid and cohesive whole.

At the very core of anyone with an eye on advancing through the ranks of restaurant management must be a strong sense of customer service and duty to the public.  The successful manager understands that his or her first duty is always to the customer.  This is often displayed by the most successful managers, not in how they deal with customer complaints or concerns, but in their willingness to get out there with the rest of the staff and assist customers on an especially busy night.  At heart, all good restaurant managers are still servers or cooks at heart.

It is for this reason that many restaurants choose to promote from in house.  Anyone who has never filled the entry level roles in a dining establishment could never hope to have the in depth understanding of the intricacies of restaurant operations coupled with the true spirit of service.  It is almost a universal truth that the employee who worked his or her way up from the kitchen to the office will do a better job than a party brought in from the outside.

Since the best managers generally come from in house, it falls to existing management to be able to spot potential, initiative and a natural bent toward leadership within the ranks.  Employees demonstrating these capacities should be encouraged to develop them and placed into leadership roles as soon as they are ready.  The shift lead of today is the outstanding manager of tomorrow.
Of those traits listed above, initiative is probably the one most often overlooked or left uncultivated.  A decent manager will ensure that all of the day-to-day duties of a restaurant are carried out, that employees are performing up to expectation and that customer issues are handled appropriately.  That is simply the baseline that defines an adequate manager.  The truly good manager, the one you want running the show in your absence, is the one who shows initiative.

The employee with initiative doesn’t ask, “Did I do an adequate job?”  The employee with initiative doesn’t even ask, “Did I do the best job I could do?”  No, the employee who will make a great manager some day is the one that asks, “How could this job be done more efficiently and effectively?”  It is this sort of employee that, when promoted, will begin to look for ways to improve the restaurant and make it more profitable.

There has been a pretty popular movement in recent years, especially in more rural areas, to support local business.  Certainly this is a very noble aim and one that should be supported by anyone who wants to see their community prosper.  However, in the push to support local business, many franchise owners are thrown under the bus of public opinion.
To say that franchises are not local business is misleading and misguided at best.  In fact, such assertions are patently false in a great majority of cases.  Just because a franchise’s franchising organization may be located in a far distant city says very little about where the profits from that business are going.
The fact of the matter is, well over half of individuals who decide to purchase a franchise go into business within the community in which they live.  This means that the franchise owner is, in fact, local business.  However, if this simple truth is not sufficient to quiet those who would see franchises driven out of communities simply because they pay a small percentage of their profits to a corporate office for use of a brand name, then more facts are warranted in support of franchises as local businesses.
Beyond being owned by individuals from the communities in which they operate, franchises also draw their workforce from that same community.  What may be perceived as taking away business from one local businessman is simply providing business for another, as well as providing jobs for many others within the community.  Because franchises are more likely to succeed than independent businesses, anyway, the jobs of those employed by these franchises can be viewed as more secure as well.
Furthermore, the simple fact that a franchise operates under a corporate logo does not mean that they, in some form or fashion, necessarily exist outside of the normal business community within an area.  Though a franchisor may establish regulations regarding the quality of goods purchased by its franchisees, or may even establish guidelines about specific vendors and suppliers that may be used, in many cases those vendors and suppliers deemed acceptable fall within the locale of the franchise.
For a franchisor to insist that franchisee use products from across the country when a vendor within the region may be just as well suited is hardly sensible.  This is especially true in the cases of fast-food franchises, where a high degree of product freshness is necessary.  Therefore, to assume that franchises are eschewing the services and products of other local vendors is not true in all cases and should not be used as a blanket accusation against franchising as a whole.
The simple truth is that franchises do represent, more often than not, local business.  Yes, the name may be national.  However, the owner, the employees and even the supplies are most often local.  The franchise bolsters the economy of the community and the franchisee most likely keeps his or her money in the same bank that supplied the loan to establish the franchise.  Franchises are every bit as much a part of the communities in which the operate as the most provincial “Mom and Pop” type of establishment.

filtafry

When most of us think about franchise ownership we think about the big names, the monster of franchising like McDonalds.  As such, most of us view franchise ownership as impractical, if not completely out of reach.  After all, to even be considered for ownership of a McDonalds one needs to have a net worth several times greater than many of us could realistically hope to achieve.

Fortunately, for those wishing to go into business and to still have the security and benefit that comes along with franchising, there are other options.  Though the big name franchises certainly are worth the investment if you have the capital, there are more affordable options for those of us with more average finances.  In fact, there are a great number of franchising organization that offer franchises that can be run right from the home.

When you hear “home-based business” you may be inclined to think of the numerous spam e-mails you have undoubtedly received which promise to make you rich by just licking envelopes or posting ads.  Any intelligent individual will quickly recognize such “get rich quick schemes” as the scams that they really are.  There are, however, very legitimate and very profitable home based businesses for those looking to, not necessarily get rich, but to get comfortable by putting honest work into running their own businesses.

There are a number of benefits that go along with owning a small, home-based franchise.  These benefits, of course, exist on top of the already evident benefits of franchise ownership over independent ownership.  For the investor looking to grow a business off of a limited amount of capital, some of these small franchise options can be very appealing indeed.

For starters, just as implied, small franchises are infinitely more affordable to establish.  Whereas a major fast-food chain can cost several hundreds of thousands of dollars, many small home-based businesses can be started up for well below $100,000.  These businesses are not just inexpensive to start-up, either.  For the most part they operate at much lower overheads as well.

A steady business that operates at a low overhead begins to show a profit much more quickly.  The sooner your business begins showing a solid return on your investment, the quicker you are on your way to financial independence and stability.  Most small franchises begin showing a solid profit after only a year or two, as opposed to larger businesses that may take 5 years or more to become fiscally sound.

Operating a business from home makes one eligible for a number of tax benefits as well.  As you may be aware, the expenses of doing business may be eligible for tax deductions.  When you run your business from home, then portions of your rent/mortgage, utilities and the like become eligible business expenses as well.
Small home-based franchises are generally much easier to administrate as well.  In fact, most are entirely owner-operated.  This means no employees and no employee paychecks.  The owner has only him or herself to worry about and is answerable only to his or her franchisor.

It isn’t any big secret that franchise owners command a greater advantage in the marketplace than independent business owners.  Franchise owners tend to have a much higher success rate and usually begin showing a profit sooner than their independent counterparts.  It is commonly understood that brand recognition, benefiting from a pre-established business model and having the marketing support and resources of their franchisors help franchisees succeed.

However, there are many other benefits of franchise ownership that may be more often overlooked.  For the individual who wants to go into business and is still unsure, it is important to look at every facet.  Only in this way can the investor make the decision most suited to his or her needs as to whether to purchase a franchise or to go it alone.

Many people claim that, though franchises tend to become more profitable sooner they also operate at a higher cost because of royalties and other fees.  While this may certainly be true in some instances, it is not always the case.  In fact, even taking royalties into account, there are several factors which may drive down the cost of doing business as a franchisee.

One of these cost reducing factors lies in the fact that franchise operations are streamlined over time.  The franchisor has a vested interest in helping its franchisees find better and more efficient ways of doing things.  The better their franchisees do, the better the franchisors do.  Whereas one independent owner may find numerous cost and time saving approaches over the life of his or her business, imagine the acceleration of tens, hundreds, even thousands of owners across the world all operating under the same franchisor and each helping to streamline operations in ways applicable by all the rest.

It is easy to see that a franchise may hope to develop more quickly and to eliminate more of the waste inherent in running a business more quickly than an independent owner.  Each advancement within the company helps to drive down costs for the individual franchise owner.  However, this is not the only way that franchising helps to reduce the cost of operating a business.

Most franchisees find that they are able to purchase the products they need for the daily operation of their businesses at costs much lower than the independent business owner can.  In many instances these supplies come directly through the franchisor.  In other instances, franchisors establish working agreements with suppliers who then supply all franchisees within a region at discounted bulk prices.  In any case, the individual owner can hardly hope to match the buying power of the franchisee.

It can easily be construed how the cost saving benefits of franchise ownership could quickly overshadow the cost of ongoing royalty fees, advertising fees and other costs not associated with independent ownership.  Of course, whether the savings outweighs the cost of franchise ownership will vary from franchisor to franchisor.  This is why it is important to thoroughly research a franchisor before become contractually commited.

Franchising offers a lot of benefits to investors looking to go into business.  The many positive aspects of franchise ownership can all be essentially condensed into one simple core benefit – the assumption of less risk by the investor.  This isn’t to say that franchise ownership is completely risk free.  As with any investment, there is a chance of loss.  However, the chances of succeeding with a franchise and of turning a business into a profitable venture quickly is much greater than the chances of doing so with an independent business.
Over one half of businesses fail within the first 5 years.  By and large, the majority of new businesses that do not make it through those first critical years are those that operate independently.  Franchises succeed more often and begin showing profits earlier.  So just what is it that gives franchises so much of an edge over those independent businesses?
There isn’t just one reason that franchises are usually safer investments than going into business independently.  Rather it is an accumulation of several contributing factors that, when put together, create a picture of a safer and more solid investment.  While each of this factors contribute in their own right, it is only when all are well represented by a franchising organization that the effects are felt most by the franchisee.
Probably one of the best known benefits to franchising is brand recognition and loyalty.  When an independent business is started up, the owner has to work very hard to reach his or her intended customers, to let them know what products and services are offered by the new business and to arouse interest in them.  The franchise owner has little of this concern.  If the franchisor has been around for any period of time then the public is most likely well aware of the products and services offered and probably has a good impression of the business.
This good impression engenders brand loyalty.  It’s a simple product of human psychology.  People are more amiable to what they know and less inclined to try something they are unfamiliar with.  This means that when confronted by a decision to use a franchise of a known and trusted name or to use an unknown independent, the average customer will go with the familiar franchise.  This means the franchise owner has to work much less to bring in customers than the independent does.
Brand recognition and brand loyalty are created by means of another benefit of franchising – marketing.  Franchisors are usually able to advertise on a much grander scale than any independent owner could ever hope to.  In essence it is very much as if all franchisees were pulling their resources to advertise together.
Franchise owners also benefit from buying into a solid business plan.  Much of the failure that occurs during those first tumultuous 5 years of business ownership occurs because of owner error in establishing a business model.  Even someone with a lot of business sense can make an error in judgment.  For the franchisee, those errors have already been made and overcome by previous franchisees and by the parent company.  What remains is a tried and true plan of business.

filtafry

You may have seen the vans around, or wondered about the various flyers you have seen at a franchise expo. Or perhaps you’re just looking into starting up your own franchise and started to wonder about Filtafry, as it’s been noted for being a more environmentally friendly franchise. There are many different reasons that people ask questions about Filtafry, whether they are food service professionals interested in the services provided, or perhaps regular people just looking into a new franchise option. No matter who you are, understanding just what Filtafry does is important- this is no ordinary franchise. Filtafry has been on the forfront of green innovations since the 90’s and they continue to grow and change with the times.

You may have really wondered what exactly Filtafry does- and that answer is a fairly simple one. Filtafry service is something that almost every food service establishment can use- waste oil and fryer maintenance. The oil is removed completely from the deep fryer, run through a micro filtration system which purifies it, making the oil both taste better and last longer. Most restaurants or other food service establishment noted a fifty percent reduction in the amount of cost spent towards waste oil once starting to use the Filtafry service. As the fryer is deep vacuum cleaned and temperatures are checked, it continues to be filtered and all debris removed. As you can see, this is something that would benefit most businesses that use a fryer, if not all, and that does suggest a strong client base, especially when you consider that most businesses will need a once or twice weekly visit. Once the oil reaches the end of its then extended life, it is disposed of by the Filtafry technician in a way that complies with all local standards for waste oil disposal.

For so many people who have been looking into making it on their own, being their own boss and stepping into being self employed- Filtafry has already groomed more than one or two success stories. Often, if you ask yourself a few key things prior to looking into perhaps buying a Filtafry franchise you will find the answer to the question: Can I succeed?
If you can answer yes to the following, you definitely have what it takes to be a successful FiltaFry Franchise Owner:
•Are you self motivated and hard working, wanting to see things through until you feel satisfied with the outcome?
•Do you understand that there’s much, much more to running your own business with Filtafry apart from simply servicing the restaurants? Though there is an extensive business and sales training portion of the four part training session, not everyone is cut out for the sales part, even with the impressive free demonstration available.
•Are you driven and willing to put in some long hours during those critical start up times?

These are just a few of the common questions that really, before starting any small business one should consider, but certainly, buying a franchise with Filtafry is no different.

Many businesses are making changes to the way that they do things so that they can adopt more environmentally friendly ways of doing things. Some people also, are looking for ways to build a more stable financial future. Others still yet are business owners, trying to find a way to reconcile going green with cutting costs and the amazing thing is, there is one franchise out there that has been doing all of this and more for quite some time now. Many people in the franchising industries are aware of Filtafry- actually, quite a few very well known hotel chains across the nation already use the services provided by Filtafry in their own food service areas. After reading all of this, you may be wondering how such a green company has kept such a low profile. It’s simple, Filtafry technicians are too busy succeeding in their own green businesses.

The core concept behind Filtafry is eliminating waste- and this starts with the oil that is used in most restaurants and food service establishments. Think about the last time you were in a fast food restaurant- did you sit down to fries that tasted just a little off, or perhaps found some kind of little unidentifiable something in your fried foods? That comes of poorly cleaned and maintained fryers. But the side note on that is, often, these oils are pretty pricey by the gallon and have to be disposed of in special ways, adhering to local law. This is where Filtafry comes in, and the approach is rather simple. A microfiltration system is used to clean the oil, which does give it a much longer life span- one area of cost reduction in food service, right there. While this is being done, the technician thoroughly cleans the fryer itself and makes sure that the temperature is appropriate, and general maintenance. When you consider the number of restaurants out there, the implications of this are pretty impressive. Each and every one a potential client.

As a FiltaFry franchisee, you may find that your services are in hot demand.  Filtafry supports its new franchisees in ways that not many at home franchises do- from a comprehensive and deep training addressing many of the different aspects of running your own franchise, to exact details about the Filtafry business itself, that it just the first step. Then, you are coached and advised by experts in the business who know what it takes to be a success and are looking out for you, and your new business to ensure that you not only build up a great, stable client base, but that you’re well on your way to the success you want. Each and every day, during those critical first weeks, you’ll have constant support and education from Filtafry so that you can begin your own business with a solid foundation that leads into a great way to be your own boss for the long term.