Showing posts with label Franchisees. Show all posts
Showing posts with label Franchisees. Show all posts

Franchise leadership is a critical element of long term success for franchisees



Franchising is an industry that presents countless business possibilities for ambitious entrepreneurs. However, those looking to enter this industry still require the support of experienced and expert management. CEO of Taste Holdings Food Division, Christo Calitz, explains why strong franchise leadership is essential to the development of a food franchise brand by sharing a few insights from Scooters Pizza.


The world of food franchising is an exciting, dynamic and enticing opportunity for up and coming entrepreneurs, with data released by Statistics SA recently revealing that takeaway and fast-food outlets experienced a 10.6% total income increase in July 2012 compared with July 2011.


The reasons for the success of this market are not hard to decipher. The prospect of receiving the support and guidance of a trusted, reputable and already marketable brand is undoubtedly an attractive element, as one is almost guaranteed to have a footprint to long term business success.


However, the benefits that a franchise can offer a new franchisee are also determined by the level of expertise, experience and leadership that resides within the company itself. As one of South Africa’s leading pizza franchises, Scooters Pizza understands that leadership is the most important facet in this regard, as the success of a franchise within its first few years of operation depends largely on the owners’ ability to translate their entrepreneurial ability into leadership mettle.


Further, effective franchisors have the ability to be effective in identifying and nurturing the appropriate franchisee candidates. Franchise leaders should prioritise the development of a capable franchise group over earning quick money, as a smooth-functioning team will help ensure that the brand and its assets truly perform according to their maximum potential and value.


In general, great franchisors will normally display these characteristics:


·         They have a clear vision of the direction they want to take the company, and be able to articulate this plan in a way that inspires the entire team.


·         They constantly look ahead and strive to reposition the company so that profitability is achieved for the company and its franchisees.


·         There is constant communication with franchisees, and every effort is made to ensure that the two parties learn from one another.


·         They strive to be accessible to franchisees, and build a relationship based on partnership and trust.


·         Franchisees are provided with ongoing support, with the entire operation monitored on a consistent basis, and financial assistance and guidance regularly offered.


As one of South Africa’s leading pizza franchises, with a reputation built on great food and quick service, Scooters Pizza has consistently demonstrated outstanding franchise leadership, and ensures that its franchisees are guaranteed a platform on which they can acquire a loyal customer base.


Our training academy division is at the industry forefront of guidance and support, and provides  franchisees with all the necessary tools required to make a success of their new business venture.  As an added bonus, we offer franchisees the services of our skills trainer in store during the first week of operation, to guide and assist with daily operational processes such as stock taking and stock ordering, and selling the final product produced in the store.  


After being introduced to a dedicated franchise manager, franchisees are further provided with ongoing training, with the manager on hand to assist with every aspect of the business as well as any marketing requirements.


Scooters Pizza’s strategic decision to refresh our brand image in 2012 has already paid dividends for our company, and is yet another example of the decisive and innovative leadership that we display on an ongoing basis.


Ultimately, the sustainability and endurance of a food franchise is determined by the level of leadership that the franchisor can offer its franchisees. As one of the leaders in the franchise food space, Scooters Pizza looks forward to incorporating more talented young business people into our brand, and helping them to make a success of their entrepreneurial goals.


View the original article here

FRANCHISING: AN ACCOUNTING, AUDITING and INCOME TAX GUIIDE: A Practical Guide for Franchisors, Franchisees, and their Accounting and Legal Advisors - 2011 Edition



Product Description: This 2011 Edition has been updated to reflect the Accounting Standards Codification changes, particularly with regard to ASC Topic 952, Franchisors. In addition, cross references have been included to the International Franchise Reporting Standards (IFRS) for Small & Medium-sized Entities. Contents - Part A - By Chapter 1. BUSINESS FORMAT FRANCHISING-AN OVERVIEW 1.1 Franchise Marketing Arrangements 1.2 Franchise Recruiting and Development Arrangements 1.3 The Franchise Purchase 2. FRANCHISE DEVELOPMENT/PURCHASE COSTS 2.1 Franchise Program Development Costs (Franchisors) 2.2 Franchise Purchase Cost (Franchisees) 3. FRANCHISE FEES/REVENUES (FRANCHISORS/FRANCHISEES) 3.1 Initial Franchise Fees 3.2 Area Franchise Fees 3.3 Continuing Franchise Fees/Revenue 3.4 Transfer Fees 3.5 Franchise Renewal Fees 4. SPECIFIC FRANCHISE TOPICS 4.1 Franchise Deposits (Franchisors) 4.2 Security Deposits (Franchisors/Franchisees) 4.3 Franchise Selling Expenses (Franchisors) 4.4 Approved Supplier Purchases and Volume Rebates (Franchisors) 4.5 Repossession of Franchise Rights (Franchisors) 4.6 Franchisor's Option to Purchase Franchisee's Business (Franchisors) 4.7 Sale of Company/Franchisee-Owned Outlets (Franchisors/Franchisees) 4.8 Preopening/Opening Expenses (Franchisors/Franchisees) 4.9 Franchise Cooperative Advertising Fund (Franchisors/Franchisees) 4.10 Development/Construction Fund (Franchisors/ Franchisees) 4.11 Long-Term Accounts Receivable (Franchisors) 5. FINANCIAL STATEMENTS DISCLOSURE 5.1 Description of Business/Summary of Operations (Franchisors/Franchisees) 5.2 Unit Operating Statistics (Franchisors) 5.3 Contingent Liabilities (Franchisors/Franchisees) 5.4 Related Party Transactions (Franchisors/ Franchisees) 5.5 Economic Dependence (Franchisors/Franchisees) 5.6 Contractual Obligations (Franchisors/Franchisees) 5.7 Saturation of Markets (Franchisors) 5.8 Segment Information (Franchisors) 5.9 Subsequent Events (Franchisors/Franchisees) 6. SPECIAL AUDIT ISSUES (NOT COVERED IN PREVIOUS CHAPTERS) 6.1 Conflict of Interest in Franchisor/Franchisee Auditing (Franchisors/Franchisees) 6.2 Franchisor's Right to Audit Franchisee's Records (Franchisors) 6.3 Franchisee Reporting (Franchisees) 6.4 Minimum Working Capital (Franchisees) 6.5 Minimum Insurance Coverage Franchisors/Franchisees 6.6 Auditor's Involvement with Annual Reports (Franchisors) 7. FINANCIAL INFORMATION IN FRANCHISE DISCLOSURE DOCUMENTS (FRANCHISORS) 7.1 Federal Trade Commission Rule (New Rule) 7.2 States Franchise Legislation 7.3 Disclosure Requirements: Item 21 - Fin. Stats. 7.4 Financial Statements Enclosure Wording 7.5 Auditor's Consent Letter 7.6 Auditor and Audited Statements 7.7 Timing of Audited Statements 8. FINANCIAL PERFORMANCE REPRESENTATIONS IN DISCLOSURE STATEMENTS (FRANCHISORS) 8.1 Summary of financial performance representations requirements 8.2 Auditor's Function Related to Financial performance representations 8.3 Examples APPENDICES: A APPLICATION AGREEMENT/DEPOSIT RECEIPT B FRANCHISE AGREEMENT C AREA DEVELOPMENT AGREEMENT D MASTER FRANCHISE AGREEMENT E CONSTRUCTION AND RENOVATION AGREEMENT F FRANCHISE COOPERATIVE ADVERTISING FUND BY - LAWS G ACCOUNTING STANDARDS CODIFICATION – FRANCHISORS TOPIC 952 H LETTER OF COMFORT FROM FRANCHISOR TO FRANCHISEE'S BANK I AUDIT CONFIRMATION LETTER TO FRANCHISEES J ADVERTISING FUND COMPLIANCE REPORT K EXAMPLE OF A REPORT RELATING TO THE AMOUNT OF GROSS SALES L FEDERAL TRADE COMMISSION FINAL AMENDED RULE: PART 436 - DISCLOSURE REQUIREMENTS AND PROHIBITIONS CONCERNING FRANCHISING M NORTH AMERICAN SECURITIES ADMINISTRATION ASSOCIATION, INC. (NASAA) N DISCONTINUED OPERATIONS REPORTING-IMPLEMENTATION GUIDANCE and ILLUSTRATIONS O INTERNATIONAL FINANCIAL REPORTING STANDARDS for SMALL and MEDIUM-SIZED ENTITIES GLOSSARY

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What No One Ever Tells You About Franchising: Real-Life Franchising Advice from 101 Successful Franchisors and Franchisees



Interesting, clear, and applied, BUSINESS LAW TODAY: STANDARD EDITION is the ideal guide to the law and what it means in the business world--from contracts and secured transactions to warranties and government regulations. Easy to understand with an engaging writing style that is matched by vibrant visuals, BUSINESS LAW TODAY includes coverage of contemporary topics that impact not only the business world, but your life--from the economic crisis and its impact on business law to identity theft and immigration law.

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