Francorp Consulting

Francorp is the world's largest and most experienced franchise develpment and consulting firm. Francorp has a responsibility to work with all of the world's small and medium sized businesses to help them understand and explore the concept of franchising their businesses as a way to grow.
Francorp is the largest franchise consulting firm in the world and has the resources to be at all of the world's major franchise and small business exihibitions. This weekend Francorp is working with the New York Restaurant Show and convention to educate the successful restauranteurs in the North East about franchising and help them evaluate the concept of franchise development.

Francorp will be presenting to the restaurant owners at the show on how franchising works and whether the expansion vehicle could be an opportunity for some of the business owners at the show. Francorp has done business in the northeast with many of the successful food franchise concepts and restaurants. For more information on Francorp and the work that the global firm has done please visit the Francorp site, www.francorp.com

Francorp was founded in 1976 and has worked with most of the world's largest and most successful franchise systems. Francorp was founded by Don Boroian and continues to lead the franchise marketplace through the United States and around the globe.

How to Franchise

The Rules: Trade SecretsA business's trade secrets are often vital to its success. It is an understood rule that franchisees will keep trade secrets strictly confidential. This not only protects the franchise, but it also protects the franchisee's individual investment.
Most states have adopted some version of the Uniform Trade Secrets Act, which helps identify the parts of the franchise system that may constitute a trade secret. To see a list of those states that have adopted it, U.S. Trade Secret Protection by State. Proprietary systems and franchise information that doesn't fall under the category of a "trade secret" should be treated as such regardless, because it may still be protected under the restrictive covenants of the franchise agreement.

How to Franchise

The Rules: Restrictive CovenantsThe success of most franchises is based on the operating systems, methods, and products produced. For this reason, franchisors must protect their proprietary information and trade marks. In order to do this, they establish restrictive covenants for their franchisees. These covenants govern the things a franchisee can do.
For example, one restrictive covenant may state that the franchisee cannot operate another similar business that would compete with the franchised business during the term of the franchise agreement. These are called in-term non-competition covenants. There may also be post-term non-competition covenants that prohibit the franchisee from operating a similar business even after the terms of the franchise have expired. Each state, however, has its own laws regarding the enforcement of non-competition covenants. Often, in-term covenants can be more readily enforced than post-term covenants.

What is Franchising?

What is Franchising?

Imagine that you're opening your own McDonald's. To do this, you have to buy a McDonald's franchise. In order to qualify for a conventional franchise, you have to have $250,000 (not borrowed). Your total costs to open the restaurant, however, will be anywhere from $685,750 to $1,504,000, which goes to paying for the building, equipment, etc. Forty percent of this cost has to be from your own (non-borrowed) funds.

You'll pay an initial franchise fee of $45,000 directly to McDonald's. The other costs go to suppliers, so this is the only upfront fee you pay to McDonald's. Then, you'll go through a rigorous nine-month training period where you'll learn about the McDonald's way of doing things -- things like their standards for quality, service, value, formulas and specifications for menu items, their method of operation, and inventory control techniques. You'll have to agree to operate the restaurant from a single location, usually for 20 years, following their guidelines for decor, signage, layout and everything else that makes McDonald's McDonald's.

Once you've completed training and are ready to go, McDonalds will offer you a location they've already developed. The exterior of the building will be complete, but you will have to take care of interior additions such as kitchen equipment, seating and landscaping. You'll get constant support from a McDonald's Field Consultant, who can advise you on details and will visit regularly. You'll pay McDonald's a monthly fee of 4 percent of your sales, and either a flat base rent or a percentage rent of at least 8.5 percent of your sales. How much money you make depends on many things, including the location and its popularity, the efficiency of your operating costs, and your ability to manage and control the business.

Think of franchising as paying someone for his or her business strategy, marketing strategy, operations strategy, and the use of his or her name. That's pretty much what franchising is -- you are establishing a relationship with a successful business so you can use its systems and capitalize on its existing brand awareness in order to get a quicker return on your own investment. You are using its proven system and name, and running it by its rules.
Are you still your own boss? In some respects, no. You still have to answer to someone else and follow his or her direction. You don't really own the business; you own the assets you've purchased in order to establish the business.

Franchise Information - Jani-King

Business Description
JANI-KING INTERNATIONAL is the world's largest commercial cleaning franchisor, with locations in 19 countries and over 125 regions in the U. S. and abroad. Our franchise opportunity includes initial customer contracts, training, continuous local support , administrative and accounting assistance, an equipment leasing program and national advertising. If you are searching for a flexible business opportunity, look no further.

Franchisor Background
Year Established: 1969
Franchising Since: 1974

Franchised Units: 13,000
99.8%
Company-Owned Units: 27
0.2%

Total Operating Units: 13,027
100.0%

Geographic Distribution:
U.S.:
12,148
93.3%

In 39 States

Canada:
351
2.7%
In 7 Canadian Provinces

International:
528
4.1%
In 0 Foreign Countries

Total:
13,027
100.1.0%

North America:States/Provinces with the largest number of operating units:
Density
Units
1. California 737
2. Florida 307
3. Texas 880

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Michigan, Minnesota, New York, Oregon, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements
Investment:
Minimum Net Worth:
$2.9-33K
Cash Investment:
$2.9-33K
Total Investment:
$2.9-40K
Average Total Investment:
$22K

Fees:
Initial Franchise Fee:
$8-33K
Average Franchise Fee:
$20K
On-Going Royalty:
10%
Average Royalty:
10%
Advertising Fee:
0%

www.francorp.com

Franchise Information - Choice Hotels

CHOICE HOTELS is the leading hotel franchisor with more than 60 years' experience in developing brands and services that optimize hotel performance. Our single focus is on enhancing the return on investment for our owners and growing our brands strategically. Brands include COMFORT INN, COMFORT SUITES, QUALITY, SLEEP INN, CLARION, MAINSTAY SUITES, ECONO LODGE, and RODEWAY INN, and our new boutique brand extension, CLARION COLLECTION. Either convert an existing location or build a new one.

Franchisor Background
Year Established: 1940
Franchising Since: 1940

Franchised Units:
5,300

Company-Owned Units:
0

Geographic Distribution:
U.S.:
3,636
75.6%
In 50 States
Canada:
260
5.4%
In 10 Canadian Provinces
International:
914
19%
In 0 Foreign Countries

Total:
4,810
100.0%

North America:States/Provinces with the largest number of operating units:
Density
Units
1. California 251
2. Florida 205
3. Texas 258

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements
Investment:
Minimum Net Worth:
$Varies
Cash Investment:
$20-30% Costs
Total Investment:
$2.3-12.6M
Average Total Investment:
$7450K

Fees:
Initial Franchise Fee:
$25-50K
Average Franchise Fee:
$38K
On-Going Royalty:
2.75-5.1%
Average Royalty:
4%
Advertising Fee:
1.75% Rev.
Average Number of Employees: Varies Full-time, 0 Part-time

Space Needs (in square footage): 31,000-33,000

Preferred Sites: Free-standing Building

Franchise Information

Fred Astaire Dance Studios is a Successful franchise chain teaching dance skills to enthusiastic students. Here is an overview of the franchise chain.

FRED ASTAIRE DANCE STUDIOS (FADS) provides its franchised community with a 50+ year tradition that gives the individual franchisee worldwide name recognition identified with dance excellence unsurpassed in its industry. The original teaching methods of the great Fred Astaire are still in place today at the company that proudly bears his name. FADS provides its franchisees with extensive business and dance training, and ensures that its franchises operate under the strictest code of ethics.

Franchisor Background
Year Established: 1947
Franchising Since: 1950

Franchised Units:
100

Company-Owned Units:
0

Total Operating Units:
100
100.0%

Geographic Distribution:
U.S.:
97
97%

Canada:
3
3%

North America:States/Provinces with the largest number of operating units:
Density
Units
1. Florida 16
2. New York 13
3. Ohio 12

Registered in Following Registration States: California, Florida, Maryland, Minnesota, New York, Oregon, Rhode Island, Virginia, Wisconsin Financial Requirements

Investment:
Minimum Net Worth:
$150K
Cash Investment:
$125K
Total Investment:
$138.5-357K
Average Total Investment:
$248K

Fees:
Initial Franchise Fee:
$15-35K
Average Franchise Fee:
$25K
On-Going Royalty:
7-8%
Average Royalty:
8%
Advertising Fee:
0.2%/$25Min

Average Number of Employees: 10 Full-time, 0 Part-timeSpace Needs (in square footage): 2,500 Min.
Preferred Sites: Free-standing Building, Strip Center

http://www.francorp.com/

Quick Thoughts

At the end of the Great Depression the #1 Card Game in the United States was Bridge.  Bridge is a game that encourages table communication and talking amongst players to collaborate and find a winning solution.

 

Today the most popular card game in the United States is Texas Hold Em.  Texas Hold Em is a game that encourages bluffing and deceit in order to trick your opponents so that you can take the most money. 

 

Sign of the times?

 

 

 

Francorp Phillipines

Leading the World in Franchising

Francorp is the worldwide leader in franchise development and consulting. From our headquarters in Chicago, Francorp has grown to 22 offices with presence not only in the United States, but all over South America, Asia, the Middle East, and South Africa as well.

We have developed over 3,000 franchises and assisted more than 10,000 companies worldwide in their expansion, and have been named as one of the top 100 management consulting firms in North America by Consultation News. Our company is regularly quoted in business publications like The Wall Street Journal, New York Times, Fortune, Business Week and Forbes.

Francorp Philippines is part of the worldwide network of Francorp International. Organized in Manila in 1996, it is today's premier and leading franchise developer in the country, with over 200 successful franchises developed or assisted at various stages of their growth. Francorp clients account for 25% of the established and reputable franchises in the Philippine market and reaches out to as many as 5,000 entrepreneurs nationwide annually. These clients, who value our company's expertise and experience, make us the industry leader that we are today.

Vision

The promotion of franchising as a tool for business growth and economic development by multiplying enterprises and creating jobs.

Mission

·         To help Filipino entrepreneurs discover their franchise potential.

·         To assist Filipino businesses to rapidly expand their operations nationally and internationally, using the right franchise strategies and techniques.

·         To aid local franchisors in improving or revitalizing their existing franchise.

 

 

 

How to Franchise - Training

Franchising a business is about the Art of Reproduction.

Franchising teaches someone who doesn't know anything about the business how to run the operation. The keys to success lie with the system of operation, the structure and integrity of the business model and in the training system for replicating this business model.
What constitutes a great training system in a franchise model is the depth and breadth of what is being trained. When a franchisee comes on board with a particular franchise company, they do not accept a managerial role with the company, or a sales role, or a HR position with the firm.....they take on them ALL. The franchisee becomes the business and runs every element of the operation. Once a franchisee leaves the corporate office from their initial training sessions, they are essentially running the show. They have to not only grasp and understand all of the intricacies of running and operating a new business at that point, but they also must be able and willing to teach their employees how to do every job within the business itself.
The most effective training systems in the franchise world are like Boot Camp. They are flexible in nature and address the responsibilities of running the business by job duty. The franchisee is put through a step by step process that works with the new franchise buyer on each part of running the operation. Franchisees will get their hands dirty and their feelings hurt during this process. Franchisees in many instances are very wealthy individuals, but when they buy a franchise for a food operation, they have to know how to run the grill, the fryer and how to clean the restrooms. They need to understand the P.O.S. system and how to maximize the efficiencies and benefits that the required technology offers to them. The franchisee will need to understand the financial side of running the business and how to manage the finances. All of these responsibilities fall on the head of the franchisee once this training is completed.
The great franchise companies have really solid training models. McDonald's has Hamburger University, Dominoes Pizza requires its franchisees to be a manager in a location for two years before they can be considered for a franchise location, Jimmy Johns puts their franchisees through an extremely elaborate and exhausting training program. The one commonality, that when a franchisee is sent out into the field to operate their location, they get it. They understand how to operate and how to make money at the unit level. This relieves the franchisor of the responsibilities, costs and problems that come with franchisees who need excessive amounts of hand holding when they begin operating their locations.
Franchisors have many tools and different technologies at their fingertips now that can make the training process much simpler today. Things like franchise training videos should be put together, Webcasts and Podcasts can be utilized in today's market to help train franchisees without having a human teacher doing the talking. Intranets and web-based platforms can be utilized to quickly and efficiently get updates and new information out to franchisees in the field and in remote locations. The franchise training process should typically be at least a month in length. This could be a combination of time spent at the corporate headquarters of the franchisor and time spent with the franchisee in the field. It is a big mistake to assume that in almost ANY business model that a franchisee could realistically be trained effectively in two weeks how to run the business and manage it profitably.
Franchising is hard work, it is a big mistake to give a prospective franchisee in the sales process the idea that opening a franchise is easy. The franchisee should be given a realistic picture of what they are getting into when they buy a franchise. When they do sign on the bottom line it's up to the franchisor to have the system and tools to really provide value and guidance to a new buyer.
Christopher James Conner Vice President Francorp, Inc. http://www.francorp.com
Article Source: http://EzineArticles.com/?expert=Christopher_Conner

Francorp - How to Market a Franchise

How to Market a Franchise:

The perpetual question on every franchisor's mind today is how do I keep generating good quality leads for franchise sales in this economy? When the going gets tough, the franchisor needs to get creative. The great thing about franchise marketing is that it is very targeted and specific. When was the last time you saw a Super Bowl Ad marketing for new franchisees? It's just not that likely. The reason is simple, the consumer advertising we see every day is expensive because of the reach and coverage. It is worthwhile for a company to advertise for car insurance when almost anyone who sees the TV commercial could be a potential client. That is not the case when advertising for a franchisee, the franchisee is a clearly defined candidate. The demographics have hopefully been defined ahead of time, the areas of interest are predetermined, the capital requirements and all other attributes are clearly defined. Thus, the advertising is much more focused and generally speaking less expensive.

The different avenues that franchisors use for franchise marketing run the gambit. The Internet of course is the most widely used medium, about 74% of all franchise leads today come from the web. Print Media can be effective based on the readership and specificity of a publication. Direct Mailings can work in some instances as well as Email Marketing Campaigns. Tradeshows are the most showy and grand of the marketing mediums for franchise lead generation and can also be a wonderful way to market a franchise. When it comes down to it there are a lot of avenues...but how does a franchisor know where to spend their ad budget? How do they determine where they will get the most "bang for their buck"? There are several keys that my firm has lived by when it comes to franchise marketing, if these key issues are clearly and completely defined and addressed, the franchise marketing process can be a lot of fun and generate great leads. If these key points are ignored or only briefly addressed, the franchise marketing process can drive a franchisor mad!

1. Define your Buyer. Have you ever heard the phrase, "Ready, Fire, Aim!" It sounds funny, that's because it doesn't make sense! The first goal of the franchise marketing effort should be to clearly define the buyer. I don't mean "salesperson with a desire to succeed".....I mean, "Female, ages 28-37, Midwest and Southeastern US, Household income between $75k-100k, work experience with kitchen products, married, preferably with children." We want specifics, down to every last detail. Once we completely figure out who this franchisee is, then we can more effectively plan our marketing.

2. Establish franchise sales goals. Clearly identify the marketing approach. Start first with how many franchises you plan on selling into the system within the next 6 months and year. Don't plan much further than that, because beyond that point you will most likely have to redo this plan based on then current circumstances. Once we have the goals set, we then can back out of that equation. Typically we are looking at around 1000 qualified leads for every 50-100 meetings with prospective franchisees. From those meetings the closing percentage is typically around 5%. So if we determine that we would like 5 franchises to open during the first 12 months of rolling out the franchise, we need to plan on generating 1000 leads during those first 12 months. The beauty of franchise marketing is that it is very measureable and much easier to track then consumer marketing...we can actually tell how effective it is!

3. Determine the advertising mediums. Different buyers can be reached via different advertising avenues. In some franchises all of the marketing can be done over the Internet, in others the marketing has to be done through direct mailers to specified candidates....like doctors in the case of a rapid care facility. Outline the pros and cons of each medium and establish the most effective based on the cost. This is where the importance of the defined franchise buyer comes through.

4. Establish the Budget. The average cost per lead on the Internet is around $30, the average cost from a tradeshow can be as much as $200 when factoring in travel, time, booth set up and other costs. So take into account some kind of an average cost based on the advertising venues you have determined will be most effective at reaching the target audience. For those thousand leads you may need $10,000 in advertising dollars for that first year to hit the 5 franchises sold.

5. Create the Collateral materials. A Franchise is a big investment for most franchisees, in fact for many of the buyers it is literally everything they have. The franchise offering should look extremely professional and really has to be buttoned up. This means that the brochure should be top quality, there should be a sales video to present to the buyer what the business entails and helps create excitement in the franchise. Pamphlets and handouts should be put together. All of this built around creating value in the business offering, not the product or service that the business offers. The overall theme should be "Mr. or Mrs. Franchisee, you can make a great living doing this, and have fun while you're at it." Franchise buyers fall in love with franchise concepts because they envision themselves running a business doing what the franchisor does. The collateral materials should be the vehicle that sparks that interest in the franchisee's mind.

6. Put together a comprehensive application form. There should be two forms in the end...one that the franchisee fills out initially to give the franchisor initial information from which the franchisor can make a decision if they want to follow up with the prospect any further. This should be basic information that the franchisor should know up front as soon as possible in the sales process, like how much capital do you have to invest! The second form will go into much more detail and would be sent with the brochure and information packet. This form should go into work history and personal background, so that the franchisor can really get to know who this prospect is and what they are all about.

7. Execution. Franchise marketing is like all advertising and marketing, it isn't a science, although it is much closer to one than consumer marketing, it still varies a great deal in its effectiveness and results. Some times, just when things are getting to the point where a franchisor is thinking they should throw in the towel and call it quits is when they really should do some MORE advertising! It takes consistency. The franchise buyers can be fickle, lots of time it has nothing to do with the franchise offering or the marketing, but rather with the franchisees life and circumstances. They do come back and look again, we want to be there when that prospect makes the buying decision.

8. Excellent Follow Up. Great franchisors have wonderful salesmanship in the sales process. Leads should be followed up with immediately upon contact. Phone calls are important and there should be high frequency between calls until a contact is made. The franchise sales process isn't rocket science, it just takes hard work and good planning.

Christopher Conner
Vice President Francorp, Inc.
http://www.francorp.com
Article Source: http://EzineArticles.com/?expert=Christopher_Conner

FW: Reuters.com - Franchising heats up as economy cools down

Franchising heats up as economy cools down Tue Feb 24 15:43:04 UTC 2009 -- Deborah Cohen covers small business for Reuters.com. She can be reached at smallbusinessbigissues@yahoo.com -- By Deborah L. Cohen CHICAGO (Reuters.com) - David Ambinder spent more than 25 years on Wall Street, most recently as a senior vice president of global support services for Lehman Brothers. When he got a pink slip last summer - just months before the investment bank filed for bankruptcy - he turned his attention to more humble endeavors: fixing up people's homes. Ambinder, whose retirement package was hard hit by the economic downturn, dipped into savings and mortgaged his home to start a Union, New Jersey branch of a longstanding franchise called Mr. Handyman. The business sends skilled craftsmen to do a variety of household jobs ranging from installing toilets to cleaning gutters. "It's very exciting to build a business; for me it's the right move," says Ambinder, who opened his doors in November after evaluating several franchise choices with a broker. "People aren't going to be moving and they are going to need their homes repaired. I feel there's a niche for it." Ambinder declined to discuss specific costs of his business but Sara Faiwell, a spokeswoman for Mr. Handyman, said the average cost of a franchise is about $110,000 with a franchise fee of $14,900. Among the rolls of laid off bankers, executives and blue collar workers - as well as the gainfully employed who can see the writing on the walls - are many aspiring franchisees looking to make the leap into entrepreneurship under the safety net of a tried-and-true business umbrella. They're sick of watching their 401Ks get hammered in the stock market and are looking for a structured plan that offers the promise of financial independence. "I got my severance and retirement but that's not enough," says Jim Keck, a former plant manager for troubled automotive parts maker Delphi Corp. Keck's 35-year career with the company ended in July when Delphi closed its Kettering, Ohio facility and moved production overseas. He looked at three service franchises before choosing DUCTZ, which provides air duct cleaning and restoration services. "They have a business model that works," says Keck. INTEREST PICKING UP A 2005 survey released by the Washington-based International Franchise Association showed that there were more than 909,000 franchised establishments in the United States alone, employing some 11 million people, or 8.1 percent of private sector jobs. In January, the IFA, which represents franchisors, forecast that the recession will lead to a 1.2 percent decrease in the number of franchised establishments this year as more businesses go under. Even so, anecdotal evidence suggests that overall interest in franchising is indeed picking up, tracking earlier patterns set during troubled economic times. Jim George, chief executive of Natick, Mass.-based Snip-its Corp., a 65-unit chain of hair salons catering to children, agrees. "January was our best month in the number of inquiries in the past seven or eight months," says George, noting that hair-care is somewhat recession-proof. "That is very positive." Alisa Harrison, a spokeswoman for the IFA, said many of the workshops at the association's national conference in San Diego earlier this month drew standing room only crowds. "We're hearing from our people that they're finding greater interest and greater qualified candidates," she says. Franchising is not for everyone. Terms vary widely but in exchange for use of the brand and business format, franchisees typically pay an initial licensing fee to the franchisor and turn over a percentage of their sales. In exchange, they get training, advertising and IT support, breaks on procurement costs and access to a network of established operators. The IFA says cost of entry ranges from $20,000 or less for a simple home-based business to more than $1 million for businesses requiring real estate and customized equipment. One major problem slowing franchising progress is the severity of the current downturn and its impact on the ability of potential franchisees to obtain financing, says Harrison. Indeed, the lack of available credit and eroding retirement savings may be curbing the appetite for bigger-ticket franchises such as restaurants as interested candidates hunt for lower-cost concepts that have recessionary staying power. "They're not spending as much as they would have a year or two ago," says Blair Nicol, a San Diego-based franchise broker with FranNet, a national franchise consulting firm. He estimates that the average level of investment has dropped to a range of roughly $80,000 to $150,000 from $150,000 to $250,000 in 2007. Even so, he says: "We're busier than ever right now." Among the more attractive concepts are those that provide services in business coaching, information technology and digital imaging as well as a host of franchises targeting senior care, which is set to heat up as baby-boomers continue to age, says Nicol. That should come as no surprise to Carol Lange, a former Johnson & Johnson marketing executive who recently opened a Vancouver, Canada franchise offering in-home nursing care to the elderly. "I realized that this is the best place to go," says Lange. "I can either go back to Corporate America, fear for my job every day and do more with less, or I can go into an industry that's all about caring for people and carve out my own road." This service is not intended to encourage spam. The details provided by your colleague have been used for the sole purpose of facilitating this email communication and have not been retained by Thomson Reuters. Your personal details have not been added to any database or mailing list. If you would like to receive news articles delivered to your email address, please subscribe at www.reuters.com/newsmails © Copyright Thomson Reuters 2009 All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Quotes and other data are provided for your personal information only, and are not intended for trading purposes. Thomson Reuters and its data providers shall not be liable for any errors or delays in the quotes or other data, or for any actions taken in reliance thereon.

 

Francorp Process

Franchising Checklist
Steps to take to expand your business
Assess the feasibility of Franchising
Gather information
Attend a Franchise Seminar
Read books on franchising
Talk with a Franchise Analyst
Take a Franchisability Quiz
Looking at all of your growth options
Grow internally
Find investors
Franchise
Franchise
Business opportunity
Licensing
Meet with a Franchise Consultant
Tour the Headquarters
Are the systems in which the consulting firm follows in developing your franchise program proven
In-House vs.
Outsourced
How many years has the firm been in business
Review their client list
Call references
What work did the consulting company do for referral
Why did they choose to work with consulting company
Is the work done in house by fulltime employees
Is it clear that the communication between the employees working on your program is free from barriers like:
Not working together
Having to work communicate via phone, instead of face to face
How many times a week do the employees see each other
Working at different locations
Is there a project manager to head up your project
Do you really want to franchise
Meet face to face with consultants at their place of business for advice
Talk with business advisors, close friends, and family
Evaluate your current resources for moving forward with franchising
Financial
People
"The heart" or Drive
Moving forward with franchising
Hiring a consultant and finding the right company
Do they have a proven business system
Go to place of business
Hiring a lawyer
Mistakes to avoid while looking at franchising
Do not make assumptions
Do not meet with a lawyer only
Legal documents do not drive the business
All lawyers claim to be franchise specialists
This is not easy to do if you have never franchised a business before
Developing a franchise company is much different than being a franchisee

How to Franchise - Marketing

What makes franchise marketing effective?
The perpetual question on every franchisor’s mind today is how do I keep generating good quality leads for franchise sales in this economy? When the going gets tough, the franchisor needs to get creative. The great thing about franchise marketing is that it is very targeted and specific. When was the last time you saw a Super Bowl Ad marketing for new franchisees? It’s just not that likely. The reason is simple, the consumer advertising we see every day is expensive because of the reach and coverage. It is worthwhile for a company to advertise for car insurance when almost anyone who sees the TV commercial could be a potential client. That is not the case when advertising for a franchisee, the franchisee is a clearly defined candidate. The demographics have hopefully been defined ahead of time, the areas of interest are predetermined, the capital requirements and all other attributes are clearly defined. Thus, the advertising is much more focused and generally speaking less expensive.
The different avenues that franchisors use for franchise marketing run the gambit. The Internet of course is the most widely used medium, about 74% of all franchise leads today come from the web. Print Media can be effective based on the readership and specificity of a publication. Direct Mailings can work in some instances as well as Email Marketing Campaigns. Tradeshows are the most showy and grand of the marketing mediums for franchise lead generation and can also be a wonderful way to market a franchise. When it comes down to it there are a lot of avenues…but how does a franchisor know where to spend their ad budget? How do they determine where they will get the most “bang for their buck”? There are several keys that my firm has lived by when it comes to franchise marketing, if these key issues are clearly and completely defined and addressed, the franchise marketing process can be a lot of fun and generate great leads. If these key points are ignored or only briefly addressed, the franchise marketing process can drive a franchisor mad!
1. Define your Buyer. Have you ever heard the phrase, “Ready, Fire, Aim!” It sounds funny, that’s because it doesn’t make sense! The first goal of the franchise marketing effort should be to clearly define the buyer. I don’t mean “salesperson with a desire to succed”…..I mean, “Female, ages 28-37, Midwest and Southeastern US, Household income between $75k-100k, work experience with kitchen products, married, preferably with children.” We want specifics, down to every last detail. Once we completely figure out who this franchisee is, then we can more effectively plan our marketing.
2. Establish franchise sales goals. Clearly identify the marketing approach. Start first with how many franchises you plan on selling into the system within the next 6 months and year. Don’t plan much further than that, because beyond that point you will most likely have to redo this plan based on then current circumstances. Once we have the goals set, we then can back out of that equation. Typically we are looking at around 1000 qualified leads for every 50-100 meetings with prospective franchisees. From those meetings the closing percentage is typically around 5%. So if we determine that we would like 5 franchises to open during the first 12 months of rolling out the franchise, we need to plan on generating 1000 leads during those first 12 months. The beauty of franchise marketing is that it is very measureable and much easier to track then consumer marketing…we can actually tell how effective it is!
3. Determine the advertising mediums. Different buyers can be reached via different advertising avenues. In some franchises all of the marketing can be done over the Internet, in others the marketing has to be done through direct mailers to specified candidates….like doctors in the case of a rapid care facility. Outline the pros and cons of each medium and establish the most effective based on the cost. This is where the importance of the defined franchise buyer comes through.
4. Establish the Budget. The average cost per lead on the Internet is around $30, the average cost from a tradeshow can be as much as $200 when factoring in travel, time, booth set up and other costs. So take into account some kind of an average cost based on the advertising venues you have determined will be most effective at reaching the target audience. For those thousand leads you may need $10,000 in advertising dollars for that first year to hit the 5 franchises sold.
5. Create the Collateral materials. A Franchise is a big investment for most franchisees, in fact for many of the buyers it is literally everything they have. The franchise offering should look extremely professional and really has to be buttoned up. This means that the brochure should be top quality, there should be a sales video to present to the buyer what the business entails and helps create excitement in the franchise. Pamphlets and handouts should be put together. All of this built around creating value in the business offering, not the product or service that the business offers. The overall theme should be “Mr. or Mrs. Franchisee, you can make a great living doing this, and have fun while you’re at it.” Franchise buyers fall in love with franchise concepts because they envision themselves running a business doing what the franchisor does. The collateral materials should be the vehicle that sparks that interest in the franchisee’s mind.
6. Put together a comprehensive application form. There should be two forms in the end…one that the franchisee fills out initially to give the franchisor initial information from which the franchisor can make a decision if they want to follow up with the prospect any further. This should be basic information that the franchisor should know up front as soon as possible in the sales process, like how much capital do you have to invest! The second form will go into much more detail and would be sent with the brochure and information packet. This form should go into work history and personal background, so that the franchisor can really get to know who this prospect is and what they are all about.
7. Execution. Franchise marketing is like all advertising and marketing, it isn’t a science, although it is much closer to one than consumer marketing, it still varies a great deal in its effectiveness and results. Some times, just when things are getting to the point where a franchisor is thinking they should throw in the towel and call it quits is when they really should do some MORE advertising! It takes consistency. The franchise buyers can be fickle, lots of time it has nothing to do with the franchise offering or the marketing, but rather with the franchisees life and circumstances. They do come back and look again, we want to be there when that prospect makes the buying decision.
8. Excellent Follow Up. Great franchisors have wonderful salesmanship in the sales process. Leads should be followed up with immediately upon contact. Phone calls are important and there should be high frequency between calls until a contact is made. The franchise sales process isn’t rocket science, it just takes hard work and good planning.

Christopher Conner
Vice President
Francorp, Inc.
www.francorp.com

Francorp Clients Continue to have Success in 2009.

Francorp clients continue to drive forward through "interesting" economy.



Francorp Client Updates:



Real Property Management: Currently have 42 locations across the country. Real Property Management is an industry leader in property management and has a wonderful system for teaching and training franchisees how succeed in this business.



Here is an excerpt from the Real Property Management Website:



Real Property Management
The Leading Property Management Companyin the United States and Canada
Featuring Over 200 Locations
Property OwnersReal Property Management is the one property management company that can offer high quality, standardized property management services in all major markets. Real Property Management has managed thousands of properties for over 20 years.



Franchise OpportunitiesReal Property Management provides each franchise with a competitive edge through training, innovative and proven business systems, lead-generating marketing methods, Internet-based property management software, and on-going support.



Click here to learn more about Real Property Management franchise opportunites.



Francorp Client Deck Rescue currently has 12 franchises openned currently!



Deck Rescue is an industry leader in the deck powerwashing industry.



Here is an excerpt from the Deck Rescue Website:



About deck rescue
Since 1995, Deck Rescue has been professionally servicing decks. We care for over 1,500 commercial and residential decks, fences, gazebos and other wood structures each year.
President of Deck Rescue, Dave Hydock, was appointed to Wolman's seven-member National Contractor Advisory Board in the fall of 2006. Then, in the winter of 2007 upon learning of Deck Rescue's plans to franchise, Wolman agreed to support the franchising endeavor. Wolman has been with us since the beginning and will continue to support us into the future.
Licensed, bonded and insured, our professional staff has been recognized for our outstanding services. Most notably by the Cleveland Plain Dealer, The Columbus Dispatch and WEWS News Channel 5.
Also, Angie's List awarded Deck Rescue the Super Service Award for Northeast Ohio in 2008 - that's SEVEN awards in the past eight years!
We are also the proud recipients of the Torch Award from the Better Business Bureau - only 11 other companies in the area were nominated for this award in 2003, and we were one of only four winners! Deck Rescue also received Honorable Mention in the 2005 biennial competition.
We look forward to bringing you our impeccable service!



For more information on franchising and Francorp's clients visit the corporate site:



http://www.francorp.com/

How to Franchise

Can You Franchise Your Business?
Whether or not to franchise isn't an easy decision. You'll need to consider the business issues and weigh the pros and cons from an informed perspective.
Franchising as a rapid expansion tactic is one of several options you should consider for it's tremendous potential to grow your business quickly.
How does franchising work? The key is in the creation of systems which can be duplicated through training and support.
Other characteristics attractive to potential franchisees include businesses:
with a good track record of profitability.
built around a unique or unusual concept.
with broad geographic appeal.
which are relatively easy to operate.
which are relatively inexpensive to operate.
which are easily duplicated.
A good place to start is our overview of franchising. You may also access comprehensive information on how to franchise.
Despite the impressive merits, franchising is not for every business.
There is high risk in franchising any new, unproven business.
Established companies that should probably not franchise include businesses:
difficult to monitor from long distances.
requiring large numbers of employees.
with complex operations.
with low profit margins.
And being franchisable doesn't guarantee your success. Franchising the right way will help you to avoid a number of costly mistakes.
How to tell if your small business (or large business) is a prime franchise candidate.
You can quickly assess whether you are ready to franchise by taking our basic online quiz. Or, you can download our comprehensive worksheet and determine your company's franchisability for yourself at your convenience.
If you're ready to franchise, our checklist will guide you through the process.
If you're still not sure, a Francorp Franchise Analyst will discuss with you the franchisability of your business.
Other frequently asked questions about how to franchise a business:
How much time should you reasonably expect to spend in order to successfully build your franchise?
How much should you expect to pay to build a successful franchise?
What other resources are available to educate yourself about franchising?
Why Francorp? Our track record is solid. We've consulted with and provided franchising information to over 10,000 companies. We’ve helped more than 2,000 companies to successfully franchise their businesses.

Francorp Process

Our Proven Franchising Method
Franchise Your Business Seminars
Want to know how franchising works? Want to know how it stacks up to other forms of expansion and what controls are in place to protect you? Attend a Franchise Your Business Seminar, held in cities across the country. Conducted by a Francorp Senior Consultant, this seminar is designed to answer your questions and provide you with a better understanding of costs, time frames and working capital typically needed to grow through franchising.
The Francorp Tour
As business owners and executives examining franchising as an expansion strategy, you are encouraged to visit Francorp's headquarters in Olympia Fields, Illinois, a Chicago suburb. Here, you are invited to tour through all of our departments, meet our staff and senior officers, and review the documents needed in effective franchise growth. Your time spent with us will allow you to gain a detailed understanding of Francorp's unique process and how this process fits your needs for expansion.
Consultation
Is franchising right for your business? How long will it take to transition your business into a franchise? What kind of costs should you expect? These are just a few of the questions that are answered when you meet with a Senior Consultant. The Francorp consultation is typically a face-to-face meeting that allows you the opportunity to obtain an impartial evaluation of your business and its readiness for franchising from a professional with strong business experience and exceptional expertise in franchising.
Franchise Development
Franchise Development is our area of expertise. Whether you are developing a brand new franchise, reworking an existing one, or converting company-owned operations, Francorp has extensive experience across a wide variety of industries. Franchise Development includes designing a strategy for expansion, legal documents, operations manuals and marketing materials. These documents are created by a team assigned to your program that works closely with your company and staff to create materials that meet your expectations and deliver franchise sales.
Franchise Sales Training
While Francorp doesn't function as a broker for our clients, as part of our Franchise services, Francorp provides franchise sales training to new and existing franchisors. Attendees are taught by industry experts with numerous years of franchise sales experience, receive a "how to" manual and personalized instruction on how to sell effectively. On an ongoing basis, Francorp provides implementation consulting to ensure that the lessons learned in the classroom work effectively in achieving sales.
Franchise Management Training
Francorp conducts a two-day Franchise Management Training course designed to educate the Client's management team on the complexities of operating and managing a growing franchise organization. Detailed and comprehensive manuals are provided to all attendees on all course segments:
Building the Franchise Organization
Training Your Franchisees
Providing Effective Field Support
Marketing as a Franchisor
Franchisor Compliance
Franchisee Relations
Franchisor Services
While franchisors have specific needs that differ from one company to another, there are some basic needs that remain the same for all franchise organizations. Franchisors need both speed and accuracy in keeping their documents in step with the current marketplace. Experience and flexibility are critical. Francorp is structured perfectly to meet these needs. From a singular document revision to a whole system audit, Francorp adapts to meet the needs of each of our clients. We have the resources and experience to assess a problem, offer solutions and implement them in a timely manner.

Francorp Services

Franchise Program Development
Development Services for New Franchisors
Francorp Consultation
Franchise your Business Seminars
Strategic Planning & Business Plan Development
Market Research & Competitive Analysis
Prototype Development Consulting
Franchise Document Drafting Services
State Filings & Registrations
Operations Consulting and Manual development
Advertising and Marketing Services
Franchise Internet Marketing
Web System Development, Guidance and Consulting
Media Plans & Budgeting
Franchise Sales DVDs
Training DVDs
Franchise Sales Training
Franchise Management Training
Implementation Consulting
General Consulting
Development Services for Existing Franchisors
Industry Research Services
Legal Document Revision
Registration Updates & Renewals
Operations Manuals Drafting, Review and Revision Services
Franchise Sales Training
Franchise Management Training
Training DVDs
Sales DVDs
Franchise Program Review
Web System Development, Guidance and Consulting
Franchise Internet Marketing
Lead Generation Services
Sales Strategy Critique & Training
Advertising and Marketing Services
Franchise Ads & Media Planning
Market Research Services
Special Projects
Expert Witness
General Consulting

The Francorp Difference

The Francorp Difference
Our first step is always to determine your franchisability. Francorp differs from other companies that are focused on selling their services. It's important to us that we work only with companies that are franchisable . We want you to be educated about the franchising process, and about how long you should expect the successful franchise offering to take .
Do you own one of those companies? Is your company ready to succeed? We can fast track the process without interfering with your potential to succeed.
And if you don't yet have a company, but do have the necessary funds, Francorp can help you develop a franchisable idea from the ground up.
All Under One Roof
Successful systems create successful franchises, and our unique Proven Method maximizes your chances of success and minimizes costly mistakes. We also offer an array of resources that speak to our leadership in the industry.
In franchising as in so many other fields, there is no substitute for experience. Francorp's professional staff is the largest and most experienced in franchising, and you get the benefit of our collective credentials. It's no accident we're considered the industry leader.
As a result, your services and franchise help are performed "in-house," not delegated to outside contractors who may have no expertise in franchising. We employ a full-time staff of professionals to create franchise structure, franchise documents, marketing strategies and materials, operations manuals, sales training, video presentations, and general consulting.
Information about each client is shared among the professionals involved in order to keep the work product consistent from department to department.
A Comprehensive Franchise Program
It's normal to be nervous about what to expect when you've never done this before. Francorp has developed a step-by-step procedure to support you through the franchising process.
When you first contact Francorp, you won't get a sales pitch. You won't be pressured at all. But by time you leave your first meeting with one of our consultants, you'll walk out with an action plan to either become more franchisable, or to start the franchising process.
Franchise structure - As a first step in creating a franchise program, Francorp consultants prepare a written franchise analysis based upon your business, its competition, and the franchise industry at large.
Franchise agreement - Francorp's in-house attorneys, with input from Francorp's operations, marketing, and strategic consultants, will draft the principal agreement that binds you to your franchisees.
Franchise offering circular - Francorp's legal department will draft an offering circular which will meet both Federal Trade Commission requirements and those of the states in which you intend to sell franchises.
State registration materials - Requirements of the states differ, and Francorp personnel will gather the proper materials and prepare the necessary forms required by each state where you wish to sell franchises.
Operations manual - Everything from company philosophy to advertising, from franchisee reporting to employee recruitment, from inventory acquisition to day-to-day operating procedures is included in your operations manual.
Marketing plan - To aid your franchise sales lead generation, Francorp's marketing department provides the media strategy, media budget, and media schedule. We also develop advertising copy and layouts, and/or direct mail materials, to generate interest among your target franchise prospects.
Franchise brochure - Because the prospect's first impression of your franchise is often created by a brochure, Francorp will design a brochure with special emphasis on exciting graphic design, and will describe in detail the elements of your franchise which make it attractive to prospective franchises.
Franchise sales training - During a two-day seminar, Francorp will instruct your franchise sales staff on all elements of the process, from legal considerations to closing techniques.
Implementation consulting – you'll always have ready access to professional assistance in all of Francorp's specialties during the critical period of franchise development.
Whenever problems or questions arise during this period, you may consult at no charge with any member of our project team.
Plus, you'll also receive a copyrighted 400-page manual covering all topics introduced in the franchise sales seminar in even greater detail.
Francorp's Track Record Of Success
Francorp has the most success stories of any franchise consultant. See our proven track record of client references who've succeeded with Francorp, and how we made a difference in their success. Learn the story behind our success to understand how Francorp came to be the franchising leader, and why it matters to you.
Attend an upcoming event to spend some time with Francorp's consultants. Or, visit our Chicago headquarters to see where it all takes place.
Every company is different, so we give you options for getting the process started. If you think you are franchisable, and that we can make a difference for you, call us to speak directly with one of Francorp's senior consultants. Perhaps you'd prefer to ask a question or inquire about our services online. Contact us and see how Francorp can assist your franchising efforts.
Francorp's difference can also be seen in our pricing structure. We understand the financial concerns of owner-operated companies, and offer you pricing and payment options to fund the future.

Why Franchise?

Why Franchise?
Franchising is being employed by more businesses and more types of businesses than ever before. Today, almost any product or service can be distributed through franchising.
Whether you have a new concept to introduce; an existing business in need of faster growth; or just don’t have the capital to expand, the question often is "Can we afford to go slowly and perhaps miss the chance of a lifetime, or should we take the expansion plunge and risk losing the business itself?"
Franchising is the modern way to raise capital.
The cost of franchising is often a smaller investment than the cost of establishing even one new outlet. After paying the cost of the franchise program, the remaining costs of expansion (as well as most of the risk) are assumed by franchisees. And since franchisees usually pay the franchisor an up-front fee and royalties, the right strategy for selling your franchise idea can become an immediate high-impact low-risk revenue source.
Franchising can provide the capital for rapid growth, especially if you fit into any of these scenarios:
If your business doesn’t have the capital, or the people, or even the time to create a company-owned growth system;
If your business has the potential to grow faster than most company-owned programs;
If you want to supplement an existing distribution system;
If you need to improve systems through tighter controls or more motivated management.
Think you have what it takes to franchise? Find out which qualities are essential to making it work. It only takes a few minutes to take our quiz Perhaps you'd rather download this worksheet to determine your potential as a franchisor.
You can learn more about preparing your company for franchising and the franchise timeline. Learn about Francorp’s proven method of developing a franchise in 20 steps, which has proven successful for over two thousand established clients. Of course, you’ll want to avoid the ten most costly mistakes in franchising.
Francorp can help you decide whether franchising is the correct choice for you. We've provided successful service to over 2,000 very well established franchisees. Speak to a Francorp Consultant who will evaluate your concept, then evaluate your company and its goals. Franchising is not for every company, but may be just right for yours.

Francorp CEO, Don Boroian to Present to the CEO Club of Boston

Francorp works closely with many of the country’s leadership groups to help business leaders understand and evaluate franchising as an expansion option.  The wonderful organization of the CEO Club of Boston has membership including some of the most prestigious and successful leaders in the Boston Area.  The Club has turned to Don Boroian and Francorp for guidance and information as it pertains to the value of franchising companies. 

 

http://www.ceoclubofboston.org/index.html

 

For more information please visit the Francorp site, www.francorp.com or call the corporate offices. 

 

 

 

 

Don Boroian - How to Analyze a Franchise Deal?

A Franchise Deal or a Dud?How to Look Before You Leap

by Judith Rehak

Published: SATURDAY, OCTOBER 14, 2000

THINKING OF taking early retirement but not ready to leave the business world? Tired of working for a company in which all the decisions are made for you? Just starting a career?

If you are in any of these situations, you might be cut out to become a franchise owner. But you ought to look before you leap. Franchising ideas abound, and not all of them are winners.

There are several ways to research the possibilities. For do-it-yourselfers, one approach is the Internet; most of the major companies have Web sites. The International Franchise Association — which represents franchisors and franchisees — has an extensive one, with sections such as "Franchising's Popularity Attracts Thousands, But It's No Sure Thing," including tips on what to look for, exhibition listings, legal assistance and contact information on its offices in 51 countries. Another helpful source, even for international franchise seekers is "Franchise and Business Opportunities", a publication from the Federal Trade Commission, the government watchdog for the American industry.

There are also companies that specialize in helping individuals find the right franchise fit. "We try to take the emotion out of the process," said Joe Mathews of The Entrepreneur's Source in Southbury, Connecticut. "People don't want McDonald's, they want the results."

Some franchisors take a prospective franchisee through a decision-making process. One is Coffee Beanery Ltd., which is based in Flushing, Michigan, and has 200 outlets.

"The candidate works with the team to discover if they would like to be a franchisee," said JoAnne Shaw, the chief executive, "and there is due diligence on both sides before anyone is paid to be sure it will be a long-term relationship."

Once you zero in on a particular franchisor, you should expect it to provide you with a disclosure document that provides what you have to invest and pay in royalties, what you can expect in the way of service and support, the history of the company and its executives, and financial statements.

Would-be franchisees also need to ask themselves some questions. "You must have sales ability and management skills," said Don Boroian, president of Francorp Inc., which helps businesses become franchisors. "If you don't, it won't work, no matter how good the franchise is."

Other important attributes for a successful owner are determination and a willingness to learn, Mr. Mathews said. One of the most frequently heard warnings about owning a franchise is that one must be prepared to spend long hours on the job in the first year or two.

Of course, the amount of money you can put into a franchise will dictate what you can do, although in the United States you may be able to obtain a loan from the Small Business Administration, or even borrow from your company savings plan. A service business that can be run from home or a small office might require as little as $10,000 for the right to use a concept, the system and training, plus $20,000 for equipment, inventory and working capital, but Mr. Boroian said the average is $35,000 for the initial fee, with $100,000 for preliminary expenses. From there, the prices rise according to the industry. "It can cost $1 million to build a fast-food business and half that for a muffler shop," he said.

A franchisee also pays a monthly royalty to the franchisor, from 3 percent to 15 percent of sales, according to Marcel Portmann, director of international marketing for the International Franchise Association. "Typically, fast food has a lower percentage because of labor costs and high rents, while a company in maintenance and cleaning might be at the high end because all you do is clean, while the franchisor does the sales, keeps the books, and gives you a lot of service," he said.

Prospective franchisees should talk with past and present owners of a franchise to hear how things worked out. Most importantly, they should hire a lawyer before signing a franchise contract.

 

 

 

 

Don Boroian - Building a System

Want success? Systematize your pizza business

by Steve Coomes, Senior Editor * • 17 Jul 2005 I love history, so when I get to dig into pizza history, hobby and career cross paths and life gets fun. One "historian" I spoke to recently is Don Boroian, 70, founder and chief executive of Francorp, a consulting firm to franchised businesses and companies seeking to franchise. Boroian has watched the franchise business for nearly four decades, and what he's learned along the way he now preaches passionately to business owners and at industry gatherings. Interestingly, little of what he says is earth-shattering, but any business owner — franchisee or independent — can benefit from hearing "the gospel according to Don." The message is simple: If you want to build a business you can grow, create a foolproof system which allows for duplication by others. "It is all Steve Coomes, Senior Editor about the system," Boroian said. "It is the most important thing." Even if you never grow your business beyond one unit, he said, you still need a system, that ... * takes care of the business while the owner is away * simplifies training of new staff * makes crystal clear all recipes, policies and procedures * minimizes the need for ad hoc management * and is stable enough to endure adjustments as the market warrants. Your concept doesn't even have to be the greatest, Boroian said, but if your system allows you to "execute it well and consistently, you could be successful. "But even if you have the best food in the world, if you don't know how to run the business, and you don't have a good business system, you won't succeed." Several times in our conversation, Boroian singled out McDonald's as the poster child for restaurant systems. No, McDonald's food isn't that great, he said, but its Don Boroian, CEO, Francorp system for delivering it is unparalleled. And the good news is operators with solid systems can improve products and services much easier because the basic operation takes care of itself. Like a steamship pushing through the seas, a systematized business has enough momentum to maintain both speed and heading despite small changes in course. That the crew is fixing the pool, the chef is changing the menu and the sides are being painted don't affect the ship's ability to arrive at its destination. They merely enhance the experience. Proof of McDonald's ability to do that was evident in its spectacular salad rollout and breakfast menu upgrade in 2003. And despite the deaths of two influential CEOs in one year, its sales and stock price continue to soar well into 2005. Unending evolution Boroian is fascinated by the food industry's never-ending evolution: Older and well-established players dominate their market segments, and then along comes a new company with a slightly different twist. That gets consumers' attention and the newcomer starts chewing away at the dominant players' market share. "When Wendy's first came out, everybody said, 'Who needs another burger? We have Burger King and McDonald's,'" Boroian said. Then he pointed to Papa John's taking on Pizza Hut, Domino's Pizza and Little Caesar's in a day when that trio seemingly had the market sewn up. "There is always room at the trough for someone who is good, tough enough, resilient, smart enough to figure out the niche where they belong in the market place," he said. "Did we really need a Wal-Mart? We already had K-Mart, Sears, Target and all of the other discount chains. ... Now all of a sudden (Wal-Mart is) dominant and K-Mart is bankrupt." Boroian said such giant killers' concepts are rarely different than their competitors'. What allows them to succeed is finding unfilled niches. Wendy's and Papa John's saw room in their respective segments to position their products as premium offerings. Papa John's claimed it served "Better Pizza. Better Ingredients." Wendy's positioned its burgers next to its competitors' and asked, "Where's the beef?" Papa Murphy's Take 'N' Bake Pizza proves the pizza industry is evolving, Boroian said. People want pizza to be hot when they get it, and if they have to bake it themselves to ensure that, many don't mind, he said. "Even I can follow the directions, so you know it's easy," he said. The chain, he added, is "going to be a serious contender." A regional pizza player he's watching is Aurelio's Pizza, based in Chicago. Though decades old, the Keep up-to-date on the latest pizza news. Sign up for free, twice-weekly e-mail alerts founder's children are running the business and Boroian believes they can grow it. "They have about 40 to 50 units, a fabulous product, and they are starting to roll out now. I think they could be a very strong national player." Growing systematically Even if you have just one unit, you still should apply Boroian's principles of systemization to your business. You can bet that La Nova Pizza, which took more than 40 years to add a second unit, is systematized to the teeth. Its original pizzeria grosses more than $5 million a year in sales, and the second pulls in more than $3 million. The Todaro family didn't become that successful by chance. Systems behind great pizza operations have at least these elements: * strict portion control measures * tightly managed ordering and inventory procedures * easy-to-follow recipes * copies of written policies and procedures for every employee The first three items have a profound effect on profits (via food cost) and product consistency. The last, an employee manual, is tedious to produce, but necessary. Every employee must have one. Test them on its contents regularly to ensure they know the system. Before you add a new unit, take some expert advice. Donatos founder Jim Grote learned the hard way that opening a new unit by raiding the old unit's crew always helps one at the expense of another — unless plenty of experienced staff is left behind. Domino's founder Tom Monaghan said much the same (read more ... Monaghan's maxim was never to put the cart before the horse). Before adding units, Monaghan said your first store should be generating consistent double-digit sales and profit increases and its crew must be highly skilled at handling the rush. And even at that point, Monaghan believes the operator should wait one more year before opening the new store in order to deepen his crew strength. In other words, the crew that moved to the new store had to be as strong as the crew left behind. Sounds like the backbone of a system to me.