1. I picture the following: one of the first potential franchisees knocks on Ray Kroc’s door and asks him “Please don’t take my question personally, but why don’t you develop your business gambling your own money, like White Castle Fast Food Network has been doing since 1921?”
Profile of the potential franchisee in Romania
April 6th, 2008Using a sample collected by the IMO and CEBR that includes 1,449 Romanian individuals prospective franchisees, the study indicates that women are more involved in prior start-up entrepreneurial activities (9.58%), whereas men show a slightly higher rate of recent business creation (16.75%). The medium age is between 33 and 35 years. However, we notice that individuals between 36 and 50 years old are more actively involved in pre start-up entrepreneurial activities (9.40%). Read the rest of this entry »
Papa John’s Chases Away Romanian Franchisees
April 4th, 2008It is easier to become a Papa John’s franchisee in the US than in Romania!
I was very glad to encounter Papa John’s – #36th franchise system in the world – last Saturday at Rofrancize, the Romanian franchise fair that took place in Bucharest. Romania is the 7th country in European Union, size-wise, but Papa John’s attendance to this fair it was this company’s first presence in Romania.
In Romania the medium growth rate of any franchise is about 20% per year. But, due to the requirements upon their (future) franchisees, Papa John’s risks to chase away its potential franchisees. Read the rest of this entry »
Franchise Expo comparison
April 2nd, 2008A Look at the Usefulness of Franchise Fairs
In the 19th century when an affluent young lady reached proper age, a ball was organised for her, and thus she was introduced to society. Now consider this:
* At the International Franchise Expo in Washington DC (11-13 April 2008) no Top 10 Global Franchises for 2008 of Entrepreneur Magazine franchise announced its participation.
* At the Franchise Expo in Paris , France, there were some 350 exhibitors. But only 4 of those are from Top 10.
The “big players” avoid franchise fairs, which are largely useful for smaller players to create brand awareness. The big names from US participate more at international fairs, mostly through the local master franchisees.
* In Romania – the franchise twilight-zone – the situation is even more dramatic. This year, at Rofrancize, 50% of the local franchises participating at the fair, came there before having signed even a single franchise agreement.
As a common factor between the 3 fairs, McDonald’s is not among the exhibitors!
SoupMan Bid to Turn ‘Seinfeld’ Fame Into Empire Goes Off the Boil
October 12th, 2007Author: Jim COEN
David B. Caruso, Associated Press reports:
The chef who inspired the Soup Nazi character on “Seinfeld” makes a heck of a crab bisque, but a group of stewed investors says he’s having problems expanding his popular stand into a franchise empire.
Soupmaker Al Yeganeh closed his original Manhattan shop, famous for its strict ordering rules, in 2004 to focus on franchising Original SoupMan stores across the country. The company launched around 40 stores in its first two years and introduced its frozen soups to groceries.
Bagel Franchises have Reinvented Themselves
October 12th, 2007Author: Jim COEN
In 1996, the bagel business was taking off, with several franchises expanding rapidly across the country. Franchises of Brueggers, Einstein Bros., Manhattan, Noah’s and Chesapeake were selling like hot cakes (bagels that is).
The prospects for the bagel business altered dramatically in June 1997 when Dunkin’ Donuts announced that its 2,000 stores would begin to sell bagels. This, in one stroke it became the largest bagel retailer in the nation.
At about the same time fresh bagels were being introduced in supermarkets across the country. In 1996 Modern Baking Magazine reported that Fresh bagels sales were up 50% in supermarkets and represented over $125 million in sales nationwide. By 2000 the total was over $400 million. Read the rest of this entry »
Expect to work longer if you’re a small business owner
October 12th, 2007Author: Jim COEN
Think you work harder than everyone else? If you own a small business, you’re probably right.
A report in the Sun-Sentinel states that more than 30 percent of small-business owners work an average of at least 10 hours a day, compared with only 19 percent of the general population, according to the monthly Discover Small Business Watch index. Read the rest of this entry »
Americans spend an astonishing $41 billion a year on their furry friends
October 12th, 2007Author: Jim COEN
Americans now spend $41 billion a year on their pets”more than the gross domestic product of all but 64 countries in the world. That’s double the amount shelled out on pets a decade ago, with annual spending expected to hit $52 billion in the next two years, according to Packaged Facts, a consumer research company based in Rockville, Md.
That puts the yearly cost of buying, feeding, and caring for pets in excess of what Americans spend on the movies ($10.8 billion), playing video games ($11.6 billion), and listening to recorded music ($10.6 billion) combined. “People are no longer satisfied to reward their pet in pet terms,” argues Bob Vetere, president of the American Pet Products Manufacturers Assn. (APPMA). “They want to reward their pet in human terms.”
That means hotels instead of kennels, braces to fix crooked teeth, and frilly canine ball gowns. Pet owners are becoming increasingly demanding consumers who won’t put up with substandard products, unstimulating environments, or shoddy service for their animals. But the escalating volume and cost of services, especially in the realm of animal medicine, raises ethical issues about how far all this loving should go.
The growth of franchising in the UK
October 12th, 2007Author: Jim COEN
McDonald’s, for one, has been energetic in promoting its status as a heavily franchised business – about 37% of its UK outlets are now franchises – and is one of the key backers of a new BFA campaign to promote franchising.
The “Proud to Franchise” campaign will see franchisees encouraged to put up stickers, give out leaflets and brand their websites and stationery with the fact that they are a franchised business. Read the rest of this entry »
Environment agreements and art. 5 paragraph 1 of the Competition Law
September 25th, 2007Environment agreements that do not impose an individual obligation upon the parties, or whereby the parties generally undertake to contribute in the achievement of the environment target at the level of a sector, do not fall under the restriction scope of art. 5 paragraph 1 of the Competition Law.
Environment agreements fall under art. 5 paragraph 1 of the Competition Law when the real target of the cooperation does not refer to an environment-related issue, but it represents an instrument for the creation of a disguised coalition, intended for the setting of prices, a limitation of production or a division of markets.
