Article contributed by Franchise Direct

Franchise Direct has analyzed the latest facts and figures from the pizza industry. What emerges is a snapshot of a food franchising sector that is well-positioned to thrive during the current economic downturn.

This research comes from assessing FDD (UFOC) documents of a sample size of 20 pizza franchise chains, as well as published industry sources.

Generally-speaking, the restaurant industry has shown initial resilience in coping with the downturn. Americans continue to rely on restaurants, primarily take-away establishments, for their daily eating. National restaurants surveys show an industry bracing for hardship, but confident that consumers will remain loyal.

Franchise Direct’s research shows that pizza franchises make up a majority of America’s restaurants. Our findings state that pizza franchises experienced consistent sales growth up until last year, when the industry slowed. There are a number of reasons why pizza franchises are projected to remain strong. Commodity prices will fall in the coming years, creating savings for the purchase of ingredients. Pizza franchises will also seamlessly fit into new consumer trends, such as the switch towards healthier and organic food options and the integration of new technology in ordering food. Our research suggests that pizza franchises present a deft balance for consumers searching for a quality at an affordable price. It is believed that pizza franchises will succeed as other more expensive dining options fail.

Pizza franchises also boast a number of advantages as far as purchasing a restaurant is concerned. New entrepreneurs can avail of a franchisor’s assistance in getting their business up and running. Our research reveals the typical franchise fee for a pizza restaurant. That figure tends to drops significantly for carry-out restaurants and double for larger, full-service pizza franchises.

The total investment sum for a pizza franchise can also vary greatly depending on location, unit size and whether the restaurant is take-out or dine-in. Our research tracks the range in investment in owning different types of pizza restaurant, factoring in fixtures, signs, inventory, training expenses, payroll and more. There are also a number of ongoing fees that the franchisee must be accountable for and our analysis details every payment that one can expect to make.

Most pizza franchises come with an exclusive territory, although some franchisors maintain a right to open new outlets within a given territory in certain circumstances.

In all, it remains hard to forecast the total earning potential of owning a pizza franchise. Every franchised industry is facing challenges at the moment, with the economy flailing and the sales expected to drop across the board in 2009. Cost control, management efficiency and slumping commodity prices will help to offset the sales decline brought on by the slump in the economy. According to research by Franchise Direct, pizza franchisees who can enhance their service and offer true quality to consumers will be the ones that will enjoy positive outcomes in 2009.

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Article contributed by Franchise Direct

These are very hard times for the American automotive industry, but an exclusive franchise study by Franchise Direct has revealed that automotive franchises are doing well nonetheless. With Americans holding onto their cars for longer than ever before, their analysis of the Franchise Disclosure Documents (FDD’s) of 30 automotive franchises found that more and more drivers are turning to franchises to keep their car on the road.

The endemic problems in America’s car industry have been well-documented. But Franchise Direct’s study has found that the sharp decline of automotive industry, coinciding with America’s worst economic downturn since the Great Depression, has actually created some exciting opportunities for aftermarket and car rental and sales franchises.

The reality is Americans are not buying new cars as regularly as they once did. According to this new automotive franchise study, the projected new car sales for this year are 9.7 million units. This constitutes a 40% decline since 2007. Yet Americans continue to love their automobiles. The bottom line is that drivers are becoming more dependent on services provided by automotive franchises because they are choosing to get more life out of their car.

Aftermarket automotive franchises are best positioned to succeed, as consumers seek maintenance and repairs with greater urgency. Used car and rental franchises will also enjoy the benefits of this new reluctance to splurge on new automobiles.

There are also new niche markets developing for franchising to exploit. In the last few years, drivers have embraced automobiles with complicated engine control, microprocessors and high-tech safety and entertainment equipment. There has also been a movement towards ‘green’ technology in car manufacturing. As these technologies become more and more popular, a new market is growing for aftermarket franchises. Drivers no longer have the know-how to do this complex automotive work on their own and will turn instead to reliable franchise brands.

The great irony is that the global recession and the collapse of Detroit’s auto industry has opened the door for the recent success of automotive franchises. America’s love affair with the automobile is undiminished, but American’s attitude towards car buying has radically changed. This research shows that consumers are turning towards automotive franchises to keep their cars on the road. With the government’s stimulus plan providing economic optimism, it is an excellent time to consider franchise opportunities in the automotive sector.

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Merchant cash advance transactions are big business. In the past few years, the industry has grown from a few providers to what some predict will be an almost 10 billion dollar industry. Search engine results for “merchant cash advance” produce literally thousands of provider results. How do you wade through all of these providers to find the right one for your business? How do you get the best deal? Here’s a quick guide to a successful merchant cash advance transaction.

Only “merchants” can apply. A merchant is someone that owns and operates a business that performs credit card processing functions as a way to accept customer payments. Providers have different requirements regarding the length of time you need to be in business- many also require a certain sales volume for approval. Generally, you’ll need to have at least a few thousand dollars in credit card sales to qualify for a cash advance transaction.

You have to qualify. Cash advances have become a popular method of financing because the approval process is fast and easy. But be careful- just because you’re “approved” doesn’t mean you’ll be able to repay the advance according to the agreement. Many unscrupulous providers have been known to approve businesses they know won’t be able make repayments as scheduled in order to collect the fees and penalties associated with defaulting.

Service agreements set the terms. Once you’re approved for a business cash advance, the provider will send you a service agreement with all of the important information- your advance amount, the “safe” retrieval rate (based on your daily credit card sales volume), and advance fees should all be included in this agreement. Since a merchant advance isn’t a loan, it isn’t subject to lending or usury laws- providers can basically charge whatever they want for services, up to 50% or more of the advance amount in some cases. Be extremely wary of agreements with fees that kick in if sales volume drops below a certain amount (called daily minimum fees) or “balloon” repayment clauses that require payment in full if certain conditions are or are not met.

Repayment is taken from daily sales revenue. You begin repayment the day you receive your advance check, much like a traditional loan. Before you take out an advance, you need to make sure that your current sales volume is able to support the repayment structure specified in the agreement.

What happens next? If you repay your advance according to the agreement, everything is fine. Repayment is usually quick- you should have the advance balance paid off within several months of initiating the transaction. The service agreement governs potential defaults- most agreements contain some kind of a “balloon” repayment clause (see above) or give the provider the authority to place a lien on business equipment or property if you can’t pay back the advance. Providers have also been known withdraw money straight from a business checking account. Before you sign the service agreement, you need to make sure that you know exactly what will happen if you can’t repay the advance according to the terms.

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It’s hard to look anywhere these days and not see someone who hasn’t been affected by unemployment and the gloomy economy. With some states experiencing up to a 20% unemployment rate, you often wonder if there is anyone succeeding today? Fortunately, there is. In fact, some businesses are not only succeeding, but thriving as well. For example, the Home Tutoring Industry and educational-based companies are experiencing record growth. Not only is it the right time for a home tutoring business, but the right industry as well.

This is primarily due to the fact that in order for students to excel today, they need to be able to get additional help. With school districts faced with larger class sizes, teacher layoffs, and even some schools canceling summer schools programs, students are faced with obstacles rarely seen before. In order for them to keep up and thrive, they need support and educational assistance. That’s where tutoring from home comes into play. Students get the help they need and most importantly at a price that parents can afford.

As the demand for tutors rises, so does the need for good home tutoring businesses. With the opportunity to not only make a great income, but make a difference in a child’s life, more and more are starting their own home tutoring businesses. It can be a perfect match for teachers and educators, women or men entering the workforce after staying home to care for family, or people who worked in Corporate America for many years and are looking for a change.

By starting your own home tutoring business, you become a tutor broker. Here you manage a network of professional teachers and educators, matching them with students in need of one-on-one in-home tutoring. In a sense you are establishing a home tutoring referral network in your community. The owner of the business, you, becomes a matchmaker, or broker, matching qualified tutors and teachers with children in need of individualized tutoring.

There are numerous programs out there that will help you start your own business. However, there are many things to consider before you make a final decision. What you are looking for is a company that is cost-effective. Now more than ever it’s important to find the right company
that not only offers the best advice, but has everything you need to get started. Therefore, whenever possible look for a company that can provide more than just a book and information. There are some companies out today, such as Home Tutoring Business, that provide not only the how to’s to starting a home tutoring business, but individualized coaching, website
design and optimization, marketing and advertising copy tailored to your new company, specialized accounting software unique to the tutoring industry, etc.

Steer clear of franchises. To be successful you don’t want to have to pay royalties and be at the beck and call of the franchise. As you’ve seen recently with the auto industry, when you are part of a franchise, they still make the decisions for you. You want a business that allows you total control and earning potential.

Finally, find a company that will stay in touch with you even after you purchase their information. Starting a business can be challenging and if you can find a company that will frequently stay connected via newsletters, cards, additional coaching, etc., you will benefit greatly.

About the Author:

Laurie Hurley based in Newbury Park, CA is the President and Founder of Home Tutoring Business, http://www.hometutoringbusiness.com. She has helped more than 100 people establish lucrative tutor referral services in their community. Laurie has been featured in Entrepreneur Magazine, Woman's World, Redbook Magazine, etc. Laurie also owns her own in-home tutoring company and has seen an unprecedented growth in business since the economic downturn.

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Article Contributed by Ray Haiber

With the recent passing of the huge economic stimulus package there has been some speculation about whether some of its provisions will create or spur the development of new franchise business opportunities in certain industries like health care or renewable energy. The obvious question is whether major government incentives and investments in these 2 highlighted industry sectors will create sustainable franchise business models after the initial boost from the stimulus spending bill plays out.

In my opinion the answer is that this is a very realistic development given the scope of the stimulus bill and some of stated new policies of the current administration regarding health care and energy. In fact, potential small business opportunities emerging from the stimulus bill are becoming more obvious, (particularly in renewable energy) and appear to have a very good chance to create some viable franchising opportunities for entrepreneurs.

Heath Care

According to what I have read, the economic stimulus package includes nearly $20 billion dollars to help digitize or computerize health and medical records in the United States. I would think this could present some serious potential opportunities for small business owners and entrepreneurs because obviously private companies will become involved in providing services for this enormous and long term project.

Even with the recent news that Sam’s Club and Dell intend to enter this market by selling software to digitize medical records doesn’t mean there will not be plenty of other niche opportunities and markets available to develop and service. According to recent stats only about 17% of doctors offices are currently digitizing medical records. And with nearly 800,000 active physicians in the United States, many with small to medium size practices, their will undoubtedly be opportunities for smaller players to develop business franchising models that can service business opportunities that emerge from this program.

Renewable Energy

From what I have read and heard nearly $60 billion of the $790 billion stimulus bill will be spent on alternative and clean energy projects and other environmental related projects and research. This includes billions of dollars for greening government buildings, weatherizing homes and businesses, and providing significant tax credits and grants to help fund and subsidize renewable energy applications across the board.

Surely this type of massive government investment will almost certainly spawn a number of new franchising concepts to service the emerging business and consumer needs that will be created by this commitment. This would conceivably include the development of solar power franchises that would provide installation of photovoltaic panels for residential and commercial applications. Or green consulting franchises that would provide expertise to commercial businesses on how to “go green” or conserve energy. Or maybe new home improvement related franchise businesses will emerge that specializes in weatherization and residential energy efficiency.

In summary it’s going to be an interesting time to see how the franchising industry will adapt and ultimately capitalize on the potential business opportunities and new markets that will be created and supported by the stimulus bill spending. My guess is that it should ultimately produce some viable and profitable franchise companies that may someday become familiar household names and brands.

About Author:
Ray Haiber has 10 years experience as a professional Arizona Business Broker. View and research franchise opportunities for sale across the USA here including master and area development opportunities.

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Article Contributed Guy Kingston

“Reports that say that something hasn't happened are always interesting to me, because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns -- the ones we don't know we don't know. And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones.”

Donald Rumsfeld was widely mocked for his mangling of the English Language, but his analysis of the difficulty of assessing a situation is actually very useful.

As we try to work out what is going on in the world, we face knowns, and known unknowns, and unknown unknowns.

The knowns are the basic laws of economics and the history of all that has happened up to this point.

We know that credit is essential to keep a modern economy functioning and that credit depends on confidence. We know that credit was recently over-expanded due to over-confidence, resulting in a predictable reaction. We know that confidence now is at a low ebb and therefore credit is tight.

All this is fairly elementary. So it is inexcusable for self-styled experts or for those in positions of responsibility to claim that they do not know what is happening or why.

The unknown is where we go from here.

Even that is not entirely unknown: we know, for example, that recessions do end – at least they always have. The unknown is when. Since we know that we do not know, this is a known unknown.

In a straw poll of attendees at the World Economic Forum at Davos, sixteen predicted that growth would return in 2010 – and five predicted that we would be out of recession in 2009!

None of them predicted that the recession would go into 2011 and beyond. Those whose only source of information is the alarmist media might find this surprisingly optimistic. Of course, most of those polled serve on corporate boards and have a vested interest in talking up the economy.

Yet there is absolutely no reason why the worst should not be over by 2010 – so long as no one panics and so long as nothing unexpected happens.

Unhappily, that is where our friends, the unknown unknowns come in.

Everything that has happened in this crisis so far has been foreseeable and predictable – indeed, many predicted it. The unexpected has yet to take a hand – and it might yet.

The classic example of Chaos Theory is the butterfly that twitches it wings in Brazil and thus initiates a chain reaction that causes a hurricane in Texas.

It is a matter of fact, not theory, that small changes in the air temperature over Africa have caused the hurricanes that have devastated the East Coast of the USA to a degree not anticipated by actuarial tables, thus putting the whole insurance industry under unexpected strain. Few of the underwriters would have been able to predict those changes of temperature or would have been aware of their potential impact on business.

We have no right to feel superior. Just as the underwriters were unable to predict those changes of temperature, we are unable to predict what unexpected events, perhaps imperceptible in themselves, will have a major impact on our chances of coming out of recession this year or next.

A Congressman might quarrel with his wife over breakfast and take out his frustration at a Committee that ends up passing a bad economic package as a result.

“For want of a nail, a shoe was lost; for want of the shoe, the horse was lost; for want of the horse, the message was lost; for want of the message, the battle was lost...”

There are an infinite number of such potential variables. We can never see them all.

However, every entrepreneur still needs to make decisions – whether to expand or contract, to buy or to sell, and to save or to invest – that depend on making some sort of educated guess about what is going to happen over the next year or so.

If the last year has taught us anything, it has taught us the need for a degree of humility in making predictions – but it has also taught us that there is no excuse for ignoring the data that is available. Many things are unforeseeable – that this crisis was coming was not one of them.

About the Author
Guy Kingston produces and presents the Mind Your Own Business podcast, offering free business advice to entrepreneurs and business owners. As well as audio podcasts there are more articles like this, compelling videos and a must-read blog. All at www.myobpod.com or you can network and join in discussions on the MYOB Facebook group.

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Continued from Part 1 of the article Future Work by Abe WalkingBear Sanchez

Even more companies will move from the old "department" way of thinking and will seek out commonalities within their different business functions. In the future, like today, redundancy elimination will rule.

In the future, like today, smart business managers won’t waste their time and energy worrying about change or sitting in a bar crying into their scotch. The best way to deal with change is to get ahead of it; it’s kind of like politicians trying to figure out where people are going so they can race ahead of them and claim to be their leader.

In the future, like today, the best way to avoid being run over by change is to accept and embrace it. Business managers not enrolled in a technology class, or constantly improving their skills will have targets painted on their backs. And just like today it’ll only be a matter of time before they get hit.

Smart business managers are and will be those that take the functions they manage and look for ways to add value. A business manager not focused on improvement becomes an administrator at best and a bureaucrat at worst.

Good Jobs, Good Pay

If jobs are going to be outsourced or off shored, chances are good that they’ll be those jobs that are redundant in nature. Rut riding, doing the same old things limits growth and puts businesses and business managers at risk. "I pity the fool." Mr. T

While we wait for automation to move us to a point where the production of basic food and products is local and unique, just like in the old days; there are things we can do to better participate in and help shape the future.

The growth areas of the future are technology, education and health care. We know that technology is good, although sometimes it’s used in a bad way; but that speaks to the nature of man and his fears. Technology is "the science of the practical." At one point in our history technology allowed us, via a long stick, to reach higher hanging fruit and to crack nuts with a rock. It makes sense that in the future automated transportation pods (ATPs) will replace cars. Along with cars disappearing so will the deaths of 40,000 + Americans killed, and the hundreds of thousands injured every year in accidents. Just think about the gas/energy that would be saved if efficient pods, in constant communication with each other replaced today’s cars and drivers.

By the way, someone is going to automate the roads, care for the sick and educated the children of the world…why shouldn’t it be Americans?

With Americans aging out in record numbers and with millions already driving by touch, or drunk or high on something; why haven’t we already started to automate existing cars?

And what about the waste in producing millions of new cars every year so that they can sit around unused 90% + of the time? We pay good money to create scrap for the Chinese.

In Closing

"We have nothing to fear but fear itself" Franklin D. Roosevelt

In the near future business function integration and off shore competition will continue to expand. Just like the past. Things in the future will get better for more people but in the transition some friction will be generated, some jobs will cease to exist.

Abe WalkingBear Sanchez is an International Speaker / Trainer / Consultant on the subject of cash flow / sales enhancement and business knowledge organization and use. Founder and President of www.armg-usa.com, WalkingBear has authored hundreds of business articles and worked with numerous companies in a wide range of industries.

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This is Part 1 of the article Future Work by Abe WalkingBear Sanchez

Who’s responsible for our future society? How can business managers shape the future?

Ron Fleisher of Tampa FL is a smart man. One of his favorite "quotes" is a window on how we should view the world and our place in that world.

"It is not important that I remain consistent with what I may have said or done in the past; what is important is that I remain faithful to the truth as it reveals itself to me." M.K. Gandhi

Gandhi, another smart man, understood that our words and actions, collectively and as individuals, are based on what we know. If our knowledge base changes, so must we.

To better understand where we are going we must first draw a line from where we have been to where we are at. Only by referencing the past and the present can we hope to understand the course of the future.

The Past

There was a time, not so very long ago, when priests and kings dictated human activity. Institutions, then and now, are driven by a need to maintain things as they are. The continuation of the status quo is often justified as the preservation of proven traditions. Try to change things and they’d come for you and for your family, and maybe your entire village.

Fear of retribution is counterproductive to the full utilization of human synergy.

In the more recent "old days", the 1960s, business organizations had many more levels of managers and supervisors, than they do today. It sometimes seemed as if there were more chiefs than Indians. Office spaces were larger in the 60s because room was needed for filing cabinets, but people were smaller. The goal of smart businesses in the 60s was the same as smart businesses today; to meet or exceed the customers’ expectations. Customer expectations were different/lower in the 60s; but then we were just starting to have our lunch eaten by the Japanese quality movement.

Life time employment and powerful unions walked upon the land in the 60s. High tech consisted of large fax machines that looked and sounded like small clothes dryers; a noisy drum that went around and around. In the 60s, person to person interaction limited the amount of work that got done. Meetings on memos and memos on meetings.

The Present

Today technology has reduced the number of filing cabinets and managers/supervisors to a point that if they were small furry animals they’d be on an endangered list. The levels of people involved in business have shrunk sometimes to the point where it’s hard to find a real person with which to interact. Today quality in products and services is a given if you wish to attract customers. Quality in the way that a company does business, its processes, is critical to customer retention. Low communications and data transmission costs coupled with the use of English worldwide has led to jobs being off shored and outsourced. Better and cheaper technology allows fewer people to do more work than ever before. More work being done cheaper by fewer people, sound great, …unless it’s your job that a machine has eliminated, or that is being done by someone else, somewhere else and for less pay and bennies. Today new
technology is old by the time we learn to use it. Not to worry, it’s all part of a greater scheme.

The Future

Gone is the day of the hunter/gatherer, of the family farm, and of the American factory worker. Fading away is the day of the information middleman, of information workers. In his 1999 book, The Dream Society: How the Coming Shift from Information to Imagination will Transform Your Business, Rolf Jensen starts the introduction by stating "The sun is setting on the Information Society – even before we have fully adjusted to it’s demands."

Well it’s here, the future, and like an intrusive relative it always seems to show up at dinnertime and unexpected. Change is the constant and it comes faster and faster. To remain cost competitive while providing for the ever increasing demand for customer customization; ever more technology and off shore workers will be employed by business.

Continued tomorrow in Part 2 of the article Future Work by Abe WalkingBear Sanchez

Abe WalkingBear Sanchez is an International Speaker / Trainer / Consultant on the subject of cash flow / sales enhancement and business knowledge organization and use. Founder and President of www.armg-usa.com, WalkingBear has authored hundreds of business articles and worked with numerous companies in a wide range of industries.

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Entrepreneur Daily: They may not be the most affluent demographic, but marketers are flocking to them. They're college students, and they're being touted as the next generation of leaders and consumers. Despite being outnumbered by baby boomers, college students carry more influence than their older counterparts. "They have huge impact on what their parents buy, and then they have their own money, more than any other generation before them, and of course they are the consumers of tomorrow," said Tom Anderson, managing partner of Anderson Analytics, the researchers who conducted the survey.

The brand survey found that Facebook is the social network of choice amongst college co-eds, and social networking is twice as popular with young women as young men. They love all things Apple, including the iPod and iPhone, and Target ranks as one of their favorite places to shop. Other top picks include Taco Bell as their hot fast food spot and Linkin Park as their top band.

College Crowd Ranks Top Brands [Entrepreneur Daily]

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Biz Report: Over 800 consumers in the U.K. were queried about their shopping experiences directly after the transaction had occurred. With the experience fresh in their minds the consumers were asked to give feedback, via email and text, on aspects such as availability of staff assistance, levels of satisfaction and customer service.

"Men are much more likely to go into a shop, get what they need and come away feeling as though they've done a good job,” said Rob Keve, CEO of Fizzback. “Women expect more from the retail experience, and will notice things like poor customer service, unhelpful staff or below-standard products, and give a more negative rating accordingly."

Other key findings of the survey are:

- Men are 22 percent more likely to give positive feedback than women
- Men are 3 percent more satisfied overall after shopping.
- Women on the whole enjoy the shopping experience less than men
- Customer service drew the highest levels of response from both men and women

Men enjoy shopping experience more than women [Biz Report]

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