Should I Franchise?

Should I Franchise?
Whether you have a totally new concept or an established business in need of faster growth that is lacking the capital, time and people to expand the question is, “Should I franchise?”
Today more Businesses and greater variety of businesses are implementing franchising to distribute their products and services. Virtually any business can be expanded through franchising. Franchising a business is often the only viable source of capital available for expansion especially in today’s tight credit markets. In most instances, the cost of franchising is often a smaller investment that the cost of establishing just one new location.

After paying the initial cost of developing your franchise program, the remaining cost of expansion along with most of the business risk is assumed by the franchisees. Because the franchisee pays an upfront franchisee fee the franchisor is often able to recoup the total cost of franchise program development rather quickly while establishing a monthly revenue stream from royalties paid by the franchisees.

Franchising can provide the capital for rapid growth when your business doesn’t have the capital, the people, or even the time to establish a company owned growth program. Franchising solves the problems of slow growth, the problems of finding outside capital and the problems of finding the right employees associated with company owned units. Franchising a business is the solution for the problems of money, time and people.

Money

Franchising transfers almost the entire cost of expansion to the franchisees. Franchisees build the building or pay the rent, buy the inventory, pay the employees, do the marketing and provide the working capital until sales make the business profitable. In reality, the growth of a franchise system is limited only by the number of people willing to buy the franchise and the number of locations that can be sold.

Time

If you’re anxious to move quickly before the competition catches on with a hot new concept franchising provides solution. Franchising is the one growth system that allows businesses to expand exponentially. A franchise can grow rapidly simply by selling individual units. Some franchises can grow even faster by selling multiple units or territories to sub franchises. Either way, it is almost always faster to open franchises than company-owned units.

People
Franchisees make excellent employees and managers. They have a vested interested in making the business successful. They own it. A franchisor not only gets a dedicated manager they are relieved from the daily problems associated with hiring, firing and managing employees.

In summary, if you are looking to expand your business and lack capital, time or people, franchising is a viable solution to all three problems. If this scenario applies to you and your business the answer to the question, “Should I franchise?” is definitely yes.

Francorp Middle East To Work with Mumtaz Mahal Restaurant Chain

Mumtaz Mahal Restaurant teams-up with Francorp to develop its full franchise development program

 

21 June 2009
Mumtaz Mahal Restaurant has signed an agreement with the American based company Francorp through its Middle East regional office in Dubai. According to the agreement, Francorp will design and develop the full franchise program development for Mumtaz Mahal Restaurant, who plans to expand regionally through franchising.

Through this ambitious program, Mumtaz Mahal Restaurant plans to develop and prepare itself for regional expansion and open new branches to compete with multinational companies specialized in the authentic Indian fine dining cuisine. This step is taken after Mumtaz Mahal Restaurant's successful 25-years experience in the local Omani market, where it has secured a considerable market share, acquired customer satisfaction for its quality products and services. The company is known in Muscat by offering high-quality food products with an unforgettable customer experience.

The agreement was signed between Rishi Khimji, Managing Director, Ajit Khimji GroupAjit Khimji Group, and Imad Charafeddine, Managing Partner at Francorp UAE - Middle East.

"Started in 1984, Mumtaz Mahal is an Indian specialty and fine dining restaurant which caters to all palate types - Indian, Western and local. Mumtaz Mahal is the landmark of Muscat and the best North Indian specialty restaurant around.

Truly Indian, the guests are entertained with live Indian band in the evenings. Mumtaz Mahal menu offers popular vegetarian and non vegetarian Mughlai dishes with consistent innovation in preparation of its dishes. The meals consist of starters, main courses and sweet dishes. The main restaurant is situated on a hilltop and offers a magnificent view of the cityscape and the sea. The interior of the restaurant has arches and motifs, typical of the Mughal era with a generous use of wood (Burma Teak) in the pillars, ceiling and arches. The floor is thickly carpeted and the central area of the restaurant has designated space for live music performances - vocal and instrumental".

"We, at Francorp, are very delighted to see franchises expand in the region," commented Imad Charafeddine. "Franchising is becoming a necessity for many local businesses aiming at achieving more business successes. It is observed that the awareness of the importance of franchising is increasing day by day. Successful local businesses started to realize its great benefits and the positive impact it has on their business development. Franchising is one of the most effective options which takes ambitious companies to new destinations and accelerate their expansion plans without their direct investment in developing new branches, especially from emerging markets such as the Middle East."

"We are also pleased to add Mumtaz Mahal Restaurant to our successful client list and to offer them our franchise consultancy for their expansion program. This is due to their remarkable success as industry leaders in Muscat - Oman market, and now it is the opportunity to duplicate and clown their local success and know how to others. It is our commitment now to use our long experience to offer a comprehensive full franchising development program to Mumtaz Mahal Restaurant," added Imad A. Charafeddine.

"We have teamed-up with the US-based Francorp, the leader in franchise development and consultation, because of their vast experience that goes back to 33 years and their track record in the development programs along with their experience in this region," concluded Rishi Khimji of Ajit Khimji GroupAjit Khimji Group.

Francorp opened their office in Dubai and started their regional operation by offering professional commercial services throughout the Middle East. With their extensive experience, outstanding achievements and high quality services, Francorp became one of the largest leading international companies in franchise development and consultancy.

-Ends-

FOR MORE INFORMATION CONTACT:
Mr. Imad A. Charafeddine
Off: +9714 3297675
Email: Info@francorp.ae
imad@francorp.ae
Web: www.francorp.ae

 

 

Christopher James Conner

Vice President

Francorp, Inc.

The Franchising Leader.

www.francorp.com / www.francorpconnect.com

BLOG:  www.francorp1.com

PH: 800.372.6244 / 708.481.2900

CELL: 708.606.7260

FAX: 708.481.5885

 

 

 

Ice Cream Business Doing Well

NO COOLING OFF FOR ICE CREAM BUSINESS

Cape Cod Times
By Sarah Shemkus
May 24, 2009

As economic uncertainty encourages families to rethink how much they can spend on vacations, entertainment and dining out, the simple pleasures of the cream parlor seem to be a little luxury that consumers are unwilling to cross off their budgets.
Evidence from past seasons, in fact, suggests that ice cream vendors don't just survive economic downturns, they thrive, said Robert Bryson, the executive director of the New England Ice Cream Restaurant Association.
"In a challenging economy, in a down economy, ice cream shops do very, very well," he said. Business "actually increases because people are going to maybe not be buying a new television set "¦ but they will not be denying their children the treat of an ice cream cone during the summertime."
Across Cape Cod, ice cream purveyors are confident that this phenomenon will hold true this summer.
Last summer, the first hints of economic decline and soaring gas prices did nothing to deter ice cream enthusiasts.
Even with the widespread optimism, ice cream professionals are taking a few steps to ensure strong business in a recession-struck summer.
All of the shops surveyed have chosen not to raise their prices this year.
"Normally, we would have," said Bob Hannon, owner of Ice Cream Sandwich in Sandwich.
Because of the constantly rising cost of ingredients, he usually increases prices by about 5 percent each year, Hannon said.
"This year we're maintaining the prices," he said. "If we can keep a stable price, then hopefully it will make it a little easier for people to enjoy the treats."
Approaching Memorial Day weekend, most ice cream sellers said that their stores' performance during the informal kickoff to the tourist season probably won't provide much indication of how the rest of the summer will go.
Weather, the ice cream shop proprietors said, is easily the biggest factor in determining the success of the summer.

McDonald's

McDonald's same-store sales up, but shares fall
Mon Jun 8, 2009 9:50am EDT


CHICAGO (Reuters) - McDonald's Corp (MCD.N) on Monday reported a 5.1 percent increase in May sales at restaurants open at least 13 months, with demand strong in Europe and Asia/Pacific.

However, the growth was down from April, when global same-store sales rose 6.9 percent. McDonald's shares fell 3.3 percent in early trading.

May same-restaurant sales were up 2.8 percent in the United States, helped by new coffee drinks and snacks. That was significantly slower than the 6.1 percent growth in April.

The world's largest hamburger chain is one of the restaurant industry's top performers largely because its Dollar Menu has been attracting diners amid a lengthy recession that has sent unemployment sharply higher.

The stronger U.S. dollar -- which lessens the dollar value of overseas sales -- led to an overall 0.4 percent decline at worldwide McDonald's restaurants, the company said. Sales rose 7 percent in constant currencies.

Fast-food restaurants generally have held up better in a tough economy than higher-priced sit-down restaurants.

McDonald's May same-store sales increased 7.6 percent in Europe, and 6.4 percent in the company's Asia/Pacific, Middle East and Africa segment. In April, same-store sales in the two regions were up 8.4 and 6.5 percent, respectively.

McDonald's said the hit by the foreign exchange rates, if they remain around current levels, is expected to be 8 cents to 9 cents a share in the second quarter and about 20 cents for the year.

The company also said second-quarter results, which it is scheduled to report on July 23, are expected to include 2 cents to 3 cents a share of income due to a license deal in Indonesia and the sale of Redbox Automated Retail.

Its shares fell $2.08, or 3.3 percent, to $57.80 in early trading on the New York Stock Exchange.

(Reporting by Ben Klayman and Lisa Baertlein in Los Angeles; Editing by Maureen Bavdek)