trends

On my last news assignment I had a sort of epiphany. The answer to the murky waters of buying and operating a franchise in America is the Chinese hui.

A customers' credit or debit card now can be combined with loyalty program cards for restaurant chains so that payment, purchase history, product preference, and promotional offers

SALT LAKE CITY, Utah (Blue MauMau) - While you slept, we upgraded Blue MauMau.

But Lower Lending Rates May Indicate a Rise in New Restaurant Franchisors in 2008

SALT LAKE CITY (Blue MauMau) - Fewer new restaurant concepts are franchising compared to years past, according to a recent study. But why? What causes a boom or bust with new franchisor wannabees? The short answer is that the federal prime rate seems best at predicting an increase or decrease in new restaurant franchisors. (See graph)

Franchise consultants and executives have long thought that franchising performs well in bad times. Conventional wisdom says that during times of high unemployment, laid-off workers look to buy franchises. In turn newborn franchisors chase that growing market of franchisee investors. But as can be seen in the graph below, that is not necessarily true. Growth in unemployment rates do not translate immediately to more start-ups.

Trade journals struggle to decipher the data. Nation's Restaurant News on a front page ($$ subscription needed) headline declared, "First-time franchisors undaunted by recession fears." But its numbers were different from the words.

I am a Faith Based Community Economic Development Consultant. There is a big interest in ministries owning franchises.  I have been working with pastors that are beginning to consider opening social enterprise that provide jobs for there communities and unrestricted revenue sources for the social missions.

In order to sustain my business model I have been exploring becoming a franchise broker. In this exploration I have come across several companies that state for $20,000, they can provide me with access to training, franchisors and high commissions.

Personal Points: 

Robert Purvin, Chairman of the American Association of Franchisees and Dealers, gives an interview about trends and events that should concern franchise owners in 2008. Formed in 1992, the AAFD represents more than 50,000 franchised businesses in 50 states and represents more than 100 different franchise systems. Purvin, a franchise attorney by training, sees franchisee-friendly bills proliferating at the state and federal level for the first time in many years, a growing desire by lawmakers to change the ability of franchisors to enforce mandatory arbitration and franchisee's pushing for growth in more independent franchisee associations to represent their needs in 2008.

BMM: What are the major trends that franchisees should keep an eye out for in 2008 and why?  

Purvin: 2008 can potentially be a watershed year for franchisees and prospective franchisees, and for several reasons.

Most obviously, the revised Federal Trade Commission's Franchise Disclosure Rule becomes mandatory in July, 2008, and with it, franchisee associations gain a valuable tool to establish recognition and viability. Franchisee associations may now compel franchisors to disclose their existence and contact information in the franchise disclosure document for their respective franchise systems. This was a provision that was strongly supported by the AAFD and other franchisee advocates, and is expected to be a major boost to the effectiveness of independent FOA's, especially as it increases visibility and legality of such associations.

Enforceability of Arbitration Agreements with Franchisees a Key Issue

Matt Shay, the president of a Washington D.C.-based lobby group, the International Franchise Association, gives an interview to Nation's Restaurant News on legislative concerns in 2008. His two major concerns center around a weakening of the ability of franchisors to enforce arbitration on franchisees and immigration reform.

NRN: What federal legislation should franchisors be worried about?

After the IFA stressed some years ago that franchising was not an industry, Shay now describes it as a franchising industry. Says Mr. Shay, "The introduction of a bill that would amend the Federal Arbitration Act threatens to inflict serious harm on the franchising industry if it becomes law."

Representing some 1,000 franchisors and supposedly 8,000 franchisee members, Shay elaborates, "The so-called Arbitration Fairness Act, which would deny franchise companies (franchisors) the right to enforce arbitration agreements (with franchisees) if they’re entered before an actual dispute arises."

NRN: Do you think immigration reform will get back on track this year?

Over at Lexblog, the other day, Rob Gotta interviewed Eugen Volokh about his multi author legal blog, the Volokh Conspircacy.

Rob La Gatta: The Wall Street Journal Law Blog has called you "one of the undisputed kings of the blawgosphere." At what point in your blogging career did you realize you had achieved such a prestigious title, and what do you think was the most important factor in getting you there?

Eugene Volokh: I can't say we merit the title, but I am happy that we've got a lot of readers, and tend to get a good many links. Why? My guess: We've been around for a long time; we have people who are expert on interesting topics; we post a good deal of stuff on those topics; and most of our posts are accessible and interesting to laypeople as well as lawyers.

The Akron Beacon Journal posted a couple of stories on franchising today.

The first one mentions some franchise trends to watch for in the coming year taken from Joel Libava's article on the award winning Small Business Trends website.

The second franchise story is about a candidate of Joel's.....Mike Whelan, a former Officemax executive, who used Joel's services, and ended up investing in a Huntington Learning Center franchise, which he opened near Akron, Ohio.

The marketer in me is always on the prowl for cool ideas, and how the franchise industry can utilize them. About 2-3 times a year, an internet stunner is found by myself.  I found this yesterday, after  following a link to someone who commented on one of my blogs.

I suggest you take 10 minutes or so, and watch and interact with a bit of cool marketing from our techy friends in Japan. It will take a few minutes to figure out what is being "marketed."  But I trust you will.....Take a 10 minute break..today!

Directions:

Go to- http://thefranchiseking.typepad.com  

Scroll down until you see the WOW! in my sidebar.

{Before you look and click it, please subscribe to the blog-upper right side-Thanx!} 

Take a 1 minute look at it, and then click the WOW! box.

Enjoy, and comment.

Cheers,

Franpro