1851

It seems that franchise industry may be in for another sea change.

A.G. Lafley, chairman and CEO of <a href="http://www.pg.com/en_US/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=bloom-the-skills-that-matter-519" target="_blank" rel="nofollow" target="_blank">Procter &amp; Gamble Co.</a>, recently made a announcement that the company now spends up to 35 percent of its $4.8 billion annual marketing budget on digital.

Similarly, <a href="http://www.chilis.com/EN/Pages/home.aspx?utm_source=1851franchise.com&utm_medium=article&utm_campaign=bloom-the-skills-that-matter-519" target="_blank" rel="nofollow" target="_blank">Chili’s</a> has announced plans to install 1,266 tabletop screens in the U.S. next year, which was followed closely by an announcement by <a href="http://www.applebees.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=bloom-the-skills-that-matter-519" target="_blank" rel="nofollow" target="_blank">Applebee’s</a> that the company will install 100,000 tablets on every table and bar top within its 1,860 U.S. restaurants.

But, this trend is not limited to food or retail brands. Since its recent startup in 2002, <a href="https://www.linkedin.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=bloom-the-skills-that-matter-519" target="_blank" rel="nofollow" target="_blank">LinkedIn</a> has quickly become the leading B2B networking and professional lead generator and talent resource for thousands of companies, with 225 million members worldwide, and is now available in 20 languages.

The world has officially gone digital.

Now add to this potential paradigm shift an environment where success in business may be driven as much by communication and technology skills as by technical abilities. In other words, think about the potential impact of a surgeon that can operate remotely preforming robotic surgeries worldwide over the Internet, as opposed to one local surgeon that has great surgical skills, but is not comfortable leveraging those same technologies.

Many senior management teams in the franchise industry today are comprised of executives that grew up in an age where being hands-on, communicating over landlines, fax and FedEx was the norm, rather than operating in today’s highly mobile, socially oriented, 24-7, real-time big-data world. It is quickly becoming clear that while some companies and executives are nimbly strategizing and managing their way into the future, others are still completely dependent on “the tried and true” comfortable ways of the past.

Today, I work both for and with a number of incredibly talented executives who know no boundaries. They manage investments and companies both at home and worldwide. They have access to vast amounts of data and knowledge from a wide variety of industries and real time sources. And, they leverage that insight to outsmart the competition on a daily basis.

Unfortunately, the franchise industry has been notoriously behind in accepting and leveraging new technologies. This seems to show up even more prominently in the franchise development arena. There are once again great examples of companies and executives that are always testing and utilizing cutting-edge technologies and methodologies, actively participating and influencing social forums, managing and communicating through robust CRM platforms, constantly seeking information and testing SEO and data acquisition programs that fish in different ponds than the competition.

Conversely, the majority of B2B marketing dollars are still being spent in live trade shows, print media and web portals, with some dollars being allocated to satellite radio and cable buys.

If I had to recommend a few books that have provided some really interesting ideas on where things are potentially heading they would be:
<ul>
	<li><a href="http://www.amazon.com/Outliers-Story-Success-Malcolm-Gladwell/dp/0316017930?utm_source=1851franchise.com&utm_medium=article&utm_campaign=bloom-the-skills-that-matter-519" target="_blank" rel="nofollow" target="_blank">Outliers: The Story of Success by Malcolm Gladwell </a></li>
	<li><a href="http://www.amazon.com/Digital-Leader-Simple-Success-Influence/dp/0071792422?utm_source=1851franchise.com&utm_medium=article&utm_campaign=bloom-the-skills-that-matter-519" target="_blank" rel="nofollow" target="_blank">Digital Leader: 5 Simple Keys to Success and Influence by Erik Qualman</a></li>
	<li><a href="http://www.amazon.com/The-Next-100-Years-Forecast/dp/0767923057?utm_source=1851franchise.com&utm_medium=article&utm_campaign=bloom-the-skills-that-matter-519" target="_blank" rel="nofollow" target="_blank">The Next 100 Years: A Forecast for the 21st Century by George Friedman</a></li>
</ul>
If future success lies in correctly predicting the future needs, wants and trends of our customers, then knowledge and communication skills are the currency of the future.
• • •
David Bloom currently serves as Senior Vice President of Strategic Development for <a href="http://famousbrandsintl.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=bloom-the-skills-that-matter-519" target="_blank" rel="nofollow" target="_blank">Famous Brands Intl.</a> David has a track record of accelerating the growth and business operations of a wide variety of brands and business models both nationally and internationally. Prior to joining Famous Brands, he was responsible for developing ground-breaking strategies, and executing accelerated development plans and programs across a number of brands in a variety of industries worldwide.

1851 Franchise

It seems that franchise industry may be in for another sea change.

A.G. Lafley, chairman and CEO of Procter &amp; Gamble Co., recently made a announcement that the company now spends up to 35 percent of its $4.8 billion annual marketing budget on digital.

Similarly, Chili’s has announced plans.....

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

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Is franchising better than starting a business from scratch? For many&nbsp;<a href="https://1851franchise.com/a-beginners-guide-to-franchising-how-the-model-works-2724686">prospective entrepreneurs</a> weighing the idea of ownership, the answer to that question can be both yes and no. Franchising offers a proven system and built-in support. Starting from scratch allows greater flexibility and control. And a proper understanding of the trade-offs can help potential owners decide which path is most aligned with their business goals.According to&nbsp;<a href="https://drymedicfranchise.com/">DRYmedic Restoration</a> franchisee&nbsp;<a href="https://www.linkedin.com/in/keith-carlson-29b0a930/">Keith Carlson</a>, the appeal of franchising often starts with structure. “The yes is that you have an automatic blueprint,” he said. “You’re in. You don’t have to think of everything. You don’t have to come up with your business plan or your marketing plan.”As Carloson noted, franchisors generally provide detailed guidance on everything from licensing and certifications to business structure. “All of those things are done. Or they’re in a list or part of a large checklist,” he said. “From that perspective, it’s simpler on the back end.”<h2>Franchising Vs. Starting From Scratch: Key Considerations</h2>So,&nbsp;<a href="https://1851franchise.com/buying-a-franchise-vs-starting-from-scratch-2725815">is franchising better than starting a business from scratch</a>? Here are five areas to consider:1. Built-In Systems Vs. Total Control Franchising provides a tested playbook. But it comes with rules. “If you’re in a franchise, every time you want to do something that’s outside their playbook, you have to ask permission,” Carlson reminds. Independent owners, on the other hand, can pivot freely but must build systems from the ground up (which takes time and resources).2. Fees and Royalties Franchise fees and royalties are part of the deal. It’s important to both understand and plan for them accordingly.3. Experience and Support One of franchising’s biggest advantages is access to experienced operators. Carlson recalled his first job after signing his initial work order: “I was nervous. But I had somebody on the phone within 10 minutes saying, ‘You’ve got to do this, this and that,’” he said. “It was so easy to get through that first job because there was no guesswork.”4. Following The System (With Local Flexibility) While local nuances aren’t always captured in a national system, the strength of a proven system remains a franchising hallmark.5. Long-Term Upside Starting a business from scratch can be more lucrative. “But it depends on the level of effort you want to put in,” Carlson reminds potential zees.<h2>The Bottom Line</h2>So, is franchising better than starting a business from scratch?&nbsp;<a href="https://1851franchise.com/franchising-and-the-american-dream-2730380">Franchising</a> can reduce risk, shorten the learning curve and provide critical support (especially early). Independent startups can offer more autonomy and, potentially, greater long-term rewards. Therefore, an honest assessment of tolerance for structure, fees and self-direction can help those considering entrepreneurship to properly assess the ownership situation best aligned with one’s goals for success in the business opportunity.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

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When evaluating a franchise opportunity, there’s an important early step: how do I research franchise complaints? Understanding the issues both current and former franchise owners have experienced can help prospective franchisees make better-informed decisions that increase the likelihood of selecting a brand aligned with their business goals.Franchise consultant&nbsp;<a href="https://www.linkedin.com/in/franchise-guru/">Lisa Welko</a> of&nbsp;<a href="https://integrityfranchisegroup.com/">Integrity Franchise Group</a> emphasizes the importance of validating information through direct research. “The most important thing about researching any franchise is the opportunity to validate with franchise owners personally,” Welko said. “Use the reviews to formulate your questions and opinions. And then validate those findings with actual owners in the system.”<h2>Start With The Basics: Public Records And Online Tools</h2>How do I research franchise complaints?&nbsp;It starts with sources that are accessible and objective.<ul><li>Franchise Disclosure Document (FDD):&nbsp;<a href="https://1851franchise.com/understanding-item-3-of-the-franchise-disclosure-document-litigation-history-2703061">FDD Item 3</a>, litigation history, lists pending litigation or past legal issues involving franchisees that can be potential&nbsp;<a href="https://1851franchise.com/red-flags-to-look-out-for-when-doing-franchise-research-2723769#stories">red flags</a>. &nbsp;</li><li>State Regulatory Agencies: Many states publish franchise or business complaints (including the Attorney General’s office). &nbsp;</li><li>Online Reviews and Forums: While helpful for providing additional context, they should not be used as the only source of research. “Just like anything on the internet, we need to remember ‘Buyer Beware,’” said Welko. “Online reviews can be a helpful tool. But we need to remember that it’s one tool in the arsenal. So, don’t let one bad review torpedo your research.”</li></ul><h2>Speak Directly With Franchise Owners</h2>Nothing replaces firsthand insights. Contacting current – and former – franchise owners to ask about their experience with franchisor support, operations and growth potential is a critical part of the validation process. It’s essential to pay attention to recurring themes in their feedback, both positive and negative, to identify potential risks (or opportunities) correctly.&nbsp;<h2>Practical Takeaways For Evaluating Franchise Complaints</h2><ol><li>Verify Patterns, Not One-Offs – A single complaint may be an isolated incident. Look for repeated issues that may indicate systemic challenges. &nbsp;</li><li>Check The Age Of Complaints – Older complaints may reflect resolved issues or changes in leadership (while recent complaints can indicate ongoing issues). &nbsp;</li><li>Ask Specific Questions – When speaking with franchisees, ask about areas like training, corporate support and general operational challenges. &nbsp;</li><li>Evaluate The Brand’s Response – How a franchisor addresses complaints can reveal the level of transparency, responsiveness and commitment provided to franchise owners. &nbsp;</li><li>Integrate Findings Within Decision-Making – Use complaint research as part of a larger due diligence process (along with financials, market analysis and personal goals).</li></ol><h2>The Takeaway</h2>So, how do I research franchise complaints?&nbsp;Doing so is essential. Utilizing a combination of public records, online insights and&nbsp;<a href="https://1851franchise.com/what-is-the-value-of-franchisee-validation-in-the-franchise-sales-process-2703208">direct validation with franchisees</a> (past and present), potential franchise owners can better evaluate both risk and opportunity. By following a structured approach, actionable insights that build confidence in the franchise decision-making process can be identified.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How do I research franchise complaints? In this guide with expert tips, learn how to uncover patterns, validate insights with franchisees and make informed franchise investment decisions.

Bloom: The Skills That Matter

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