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Franchise Marketing – How to “Reverse Engineer” Franchise Success

Entrepreneurs looking to launch a new franchise concept should keep their final goal at the front of their minds. If the eventual intention is to sell the franchise, it’s essential to start planning for that from the very beginning. Entrepreneur.com offered the following advice on “reverse engineering” the ultimate goal.

1. Figure Out the Earnings Needed to Reach Your Final Sale Price – After deciding the amount and the date of the eventual sale, franchise valuation comes into play. A price/earnings ratio is the usual method of valuation since it considers numerous company and industry factors, but it’s also helpful to look at the selling prices and price/earnings ratios of similar businesses. Then, simply dividing the desired selling price into an estimated price/earnings ratio can provide the earnings required to reach the final goal.

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Franchise Marketing – How to Avoid a Franchise Fad

When it comes to selecting a franchise opportunity, it can be very difficult to distinguish the flash-in-the-pan fads from the concepts with a future. Some seemingly smart businesses have quickly come and gone, while other daring ideas have gone on to great success. While every investment comes with a degree of uncertainty, Entrepereneur.com recently listed the following warning signs to watch for when seeking a franchise with real staying power.

1. Owners with No Experience – While franchises often stem from a small idea taken to larger proportions, the company must have an element of management expertise and proven strength guiding their operations. This experience can be critical when it comes to developing and adapting the business model to suit changing market needs.

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Franchise Marketing – What’s the Difference Between a Franchise and a Business Opportunity?


When discussing a franchise as opposed to a business opportunity, there are subtle yet distinct differences that can influence the decision to pursue either one. OpenForum.com recently explained how the two truly differ.

The Federal Trade Commission has provided a clear definition of a business opportunity, which is that the seller of a business makes an earnings claim and/or promise to supply business assistance to the buyer. The part about providing assistance is the main distinction of the definition. In this case, the seller of business serves as a mentor rather than a boss and leaves the business decisions up to the buyer. With a franchise, the franchisor has the right to dictate the precise practices and procedures to use when running the business.

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Franchise Marketing – Got-Junk Founder Starts New House-Painting Franchise

After founding 1-800-Got-Junk at the age of 18 and building it into a $100 million franchise with 200 global franchises, entrepreneur Brian Scudamore discovered his next venture while looking for a contractor to paint his home. Mr. Scudamore found his new business partner after one contractor promised to complete the job in a day. That commitment and convenience led to the launch of his new house-painting company,  1-800-Wow-1Day in February 2011. Entrepreneur.com described the rise of this rapidly growing business.

I knew that one day I would discover a second brand,” said Mr. Scudamore, who believes that the secret to success lies in choosing the right franchise. “I was keeping my eyes peeled, so to speak.”

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5 Essential Characteristics of the Entrepreneurial Mind

While entrepreneurs represent the dream that any individual can run their own business, the truth is that these small business owners share unique characteristics that shape their success. OpenForum.com recently revealed these ambitious traits that drive these business leaders.

1. Openness to Trying New Things – An open mind is essential, since testing new methods and means can determine the direction of an entire business. This is especially true for individuals inventing new products and services, yet all entrepreneurs must be able to experiment, since this is what allows their ideas to evolve.

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Franchise Marketing – The Danger of Being Franchisee Number One

While it’s exciting to be one of the first involved in a new franchise concept, there are also risks not encountered with more established brands. Still, not all new franchises are start-ups since some of the oldest brands have only recently decided to start franchising their locations. The smartest strategy is to carefully consider the positive and negative aspects of purchasing a franchise that is newly launched and has no proven record of success. Entrepreneur.com recently outlined the most common types of new franchises and the questions that must be answered before venturing into these opportunities.

1. The Young Company Just Beginning to Franchise – This is the riskiest venture, yet there is also the appeal of being a pioneer in a new business concept. It may be wise to wait a few years and watch how the franchise progresses before committing to the cost of an unproven and inexperienced franchise model. For prospective franchisees willing to overlook the risks, ask whether company executives or their advisors have previous franchise experience, as well as about the backgrounds of their training and support teams. It’s also essential to know if the company has the cash reserves to survive the start-up period and whether there are any discounts available for early franchisees.

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Franchise Marketing – 5 Markets Best Poised For Quick-Service Restaurant Growth

QSR has released its 2011 Growth 40 report, an annual listing of the country’s top metropolitan areas primed for quick-service restaurant growth. Researchers analyzed population numbers, spending, average transaction size, and number of transactions to determine the final rankings. Now, QSRMagazine.com has offered a closer look at its top 5 U.S. markets chosen for their great restaurant growth potential.

1. Orlando, Florida – This Southeastern city took the top spot for numerous reasons. With the addition of 500,000 residents in the last decade, the city’s population has exploded to 2.1 million and is projected to grow another 10 percent over the next five years. While Orlando’s heavy tourism and convention business contribute to the city extremely high out-of-home dining needs, the city is also home to one of largest universities in the U.S.

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Franchise Marketing – Top 5 Franchise Trends For 2012


Which markets mean big business for small business in 2012? OpenForum.com recently revealed the leading franchise segments for the coming year.

1. Better Burgers Chains – With the popularity of finer burger restaurants, many traditional fast food chains are adding improved ingredients and greater variety in an effort to keep customers from going elsewhere

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5 Hot Tips on Using Pinterest for Brands


Pinterest is becoming an online phenomenon as a visual social discovery network that allows people to create online pinboards, then “pin” and share images of anything that piques their interest. It can create a lot of buzz for businesses by providing them with a “pinboard” to expose their content and products to a highly engaged, mostly female audience. While Pinterest asserts that it’s not a place for self-promotion, OpenForum.com recently offered some helpful hints on making this new social network work in your brand’s best interests.

1. Display the Idea Behind Your Brand – Rather than just posting pictures of your products, pin pictures that convey the essence of your brand or capture the lifestyle of your consumer. Select images that will resonate with your audience, which will encourage them to “pin” your images on their pinboards and increase your exposure to fellow “pinners.”

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Are Social Media Campaigns Worth It?


After much speculation about social media’s effectiveness, numerous studies have found that this online phenomenon is genuinely valuable for brands. SocialMediaToday.com featured some of these findings, helping to validate the popularity and success of social media today.

eMarketer recently highlighted the promising results of a study regarding the immediate and prolonged results of social media campaigns. According to the study, a consumer’s purchasing intent rose to 69 percent after being exposed to a social media campaign, with that intent remaining at 61 percent for one full year after the initial campaign exposure. There was also a 61 percent increase in the likelihood of recommending a product following exposure to its social media campaign, with that recommendation likelihood remaining at 55 percent one year later.

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