Retail Merchandiser - May/June 2012 - (Page S8)

BEST PRACTICES Franchising Facts Those considering starting a franchise or becoming a franchisee should examine their prospective partner as closely as a potential spouse – these agreements can last 30 years, and no one likes divorce. Franchising is a $700-plus billion industry that features hundreds of thousands of companies from a wide variety of industries. According to the International Franchise Association’s (IFA) 2011 Outlook report, the franchising industry is projected to grow 2.5 percent this year. Perhaps you already own a concept that you’re considering franchising, or maybe you are interested in joining a franchise system with an already proven model. The following will take you through the steps to franchising your concept and evaluating what franchise opportunity would be best to pursue. The biggest mistake potential franchisors make is underestimating the money and work needed. Franchising Your Concept Is your concept right for franchising? Take a look at your business – good franchise concepts are a niche, unique and have simplicity. The concept has to be something easy to operate that can be scaled and multiplied quickly. Plus, it has to be a proprietary way of doing business that is different from anybody else. Consider actually becoming a franchisee first or owning your own business. This will help you understand what it’s truly like to have skin in the game, and what it’s like to do it yourself before teaching others how to do it. The biggest mistake potential franchisors make is drastically underestimating the money and sheer work needed to open a business. A lot of new franchisors coming in are undercapitalized. Typically, it takes double of what you think it will to franchise right. Expect to spend six to 18 months and $100,000 to $200,000 setting up a legal framework with a top-notch franchise lawyer. 8 May/June 2012

Table of Contents for the Digital Edition of Retail Merchandiser - May/June 2012

Retail Merchandiser - May/June 2012
‘Push’ vs. ‘Pull’
Narrow Your Band
Celebrating in Style
Give a Little Something Extra
Charm City Cakes
LazyTown Entertainment
Binny’s Beverage Depot
Vallarta Supermarkets Inc.
Cintron Beverage Group
Total Wine and More
Golfsmith International Inc.
Barrow Fine Furniture
Hedahls Auto Plus
Kopp Drug Inc.
Grafton-Fraser Inc.
Intelligent Office Canada
A1 Counting Solutions
New & Notable
Focus on Licensing - May/June 2012
2012 Preview
Franchising Facts
Hello Kitty Charm
Playing It Up
Saban Brands Powers Up
Mars Retail Group
SEGA of America Inc.
Major League Baseball Players Association
Universal Partnerships & Licensing
Remington Arms Co.
Cartoon Network Enterprises
Hybrid Apparel
Agile Network
New & Notable

Retail Merchandiser - May/June 2012