(1888PressRelease)
September 07, 2006 - DATELINE: NORWELL, MASS.
You think your roasted chicken restaurant concept is a winner and want to franchise, but you are unsure of where to start. Or you recently scaped
the corporate world and are looking to for a rock solid franchise in which to invest. Or your existing franchise organization is growing faster than
the infrastructure to manage it.
Franchise Institute, Inc. (www.FranchisorUSA.com) based in Norwell, Mass., offers a unique "Seven PillarsT" approach to potential franchisors and franchisees. In developing this best practices theory, Andrew P. Palmer, Founder and CEO, has worked with over 400 franchise clients since 1987.
Step by step, from legal compliance to marketing services to on-going development support, Franchise Institute, Inc., offers "one stop shop" resources to solve franchise challenges.
According to The Seven PillarsT of Franchising Success, the widely read book on franchising by Palmer, of critical importance to any successful franchise are brand, team, concept, capital, investment, validation and perseverance. Franchise Institute, Inc., helps franchisors fully develop and become Seven PillarsT companies and also works with potential franchisees to assess a review of the Seven PillarsT brands they are considering.
Objective and informational briefings, based on the Seven PillarsT criteria, of major franchise opportunities - from A & W Restaurants to Ziebart - are available at the company's website www.FranchisorUSA.com .
The starting point for franchisors is to have a Seven PillarsT Baseline Assessment. After the Baseline Assessment is completed, a Development
Summary outlines where the company is weak and where the company is strong. Development programs are available in the areas where the company may need attention.
The Seven PillarsT explore -
1.Brand - Your brand must resonate with your consumers the same way the McDonald'sR connects with the average two-year-old child.
You must be able to obtain federal protection for your trade names, trademarks and logos and have a system for periodic and remedial trademark
maintenance (i.e., ensuring proper use by you and stopping unauthorized use by others). Further brand recognition can be had most simply by advertising and/or by opening units (the costs are relatively the same).
2.Team - Having a good team of people who share a strong belief in your business concept is critical to success. These people should be expert in
one or more of the following disciplines: business, management, technology, accounting, finance, sales, marketing, advertising, systems, control, and
legal, in addition to the experts in your services and/or products.
3.Concept - What do you do? What do I need you for? Advertising, marketing and sales professionals have been grappling with those two questions since the modern consumer period began a little over 100 years ago. As for growing your business, the investors, licensees, distributors,
franchisees, marketing representatives, or what have you, must link the concept with a return on their investment relative to the perceived risk
they're taking. The concept also becomes part of the corporate culture and identity. This affects management style, image, personnel decisions,
industry standards and a host of other matters.
4.Investment - The goal in opening additional units should be to fulfill consumer expectations at the lowest possible cost. The first level of investment review is determining the overall function, design, ambiance, centrality and outside amenities necessary for day-to-day business. The
second level is determining a potential return on investment relative to the risk undertaken.
5.Capital - Every enterprise needs it to fuel success. Knowing how much you'll need, when you'll need it and what type of returns can be expected is
essential. The sources can be any combination ranging from internal cash flow, to debt financing, to private or public equity investment, to more
creative capital raising (or savings) vehicles such as franchising, derivative franchising, multilevel marketing, distributorships, etc.
6.Validation - With any program, you need franchisees that are thriving in your system. They are the team members who can sing the praises of your franchise. They are also the members of your team who can legally discuss earnings potential based on their track record. Validation is imperative to growing your chain because the Federal Trade Commission strictly regulates Franchisors who are making earnings claims.
7.Perseverance - It is true that only one out of ten start-ups last long enough to see their first anniversary. And only ten percent of those
survivors see their fifth anniversary. With these odds stacked against you, your ability to weather the storms every start up endures will be crucial.
On average, it takes about two years for a franchise to turn cash flow positive. This is due, primarily, to the need for a franchisor to continually invest in the brand. In franchising, your brand is everything. Without it, you have nothing. Those who succeed in the franchising business
know this and pour all available resources into building brand. That takes time, but the rewards can be enormous.
Franchise Institute, Inc. is located at 200 Cordwainer Drive, Suite 301, Norwell, Massachusetts 02061. For more information visit www.FranchisorUSA.com or telephone (781) 681-9811.
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