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		<title>The New Normal in Food and Beverage</title>
		<link>https://www.franchisebeacon.com/the-new-normal-in-food-and-beverage/</link>
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		<dc:creator><![CDATA[Michael A. Peterson]]></dc:creator>
		<pubDate>Tue, 02 Nov 2021 22:33:08 +0000</pubDate>
				<category><![CDATA[Consulting]]></category>
		<category><![CDATA[Franchise Sales & Development]]></category>
		<category><![CDATA[Franchisee Assistance]]></category>
		<guid isPermaLink="false">https://www.franchisebeacon.com/?p=7199</guid>

					<description><![CDATA[I can’t think of a better time to evaluate a franchisor in the restaurant space. The Covid-19 pandemic forced franchisors in all spaces to showcase their ability to execute in all areas of leadership.]]></description>
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			<h1>How Actions and Reactions Defined the New Normal in Food and Beverage</h1>

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			<p style="text-align: right;"><sub><a href="https://issuu.com/franchiseconnectmag/docs/15-fcm-final-issue">This article was featured in the September/October edition of Franchise Connect.</a></sub></p>

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			<p>This issue of Franchise Connect is focused on the food and beverage space. What I want to share with you, however, is applicable across most franchises; how to be confident in your selection of a franchisor partner. Though this advice is somewhat franchise-ubiquitous, the actions over the last 18 months of franchisors in the food and beverage industry played an outsized roll in their franchisee’s success.</p>
<h2><strong>Is Now Really a Good Time to Consider the Restaurant Space? </strong></h2>
<p>The short answer is yes. The longer answer is: I can’t think of a better time to evaluate a franchisor in the restaurant space.</p>
<p>I can imagine you reading that last sentence and thinking “sure, there may be reasons why now is not a <em>terrible</em> time to invest in the food industry, but the best?”</p>
<p>Allow me to explain.</p>
<p>I likely won’t shock you when I tell you that most franchisors in the restaurant space were bruised and beaten over the last 18 months or so. It’s an unfortunate reality that some in the space didn’t survive, and others barely so.</p>
<p>The Covid-19 pandemic forced franchisors in all spaces to showcase their ability to execute in three broad areas:</p>
<ol>
<li>Their ability to both react and react appropriately to unexpected marketplace changes</li>
<li>Their willingness and ability to truly partner with their franchisees</li>
<li>Their ability to truly lead</li>
</ol>
<p>&nbsp;</p>
<p>Let’s look at these one at a time.</p>
<h3><strong> </strong></h3>
<h3><strong>Nimbleness and Direction</strong></h3>
<p>Dog Haus Restaurants epitomized what nimbleness in action looks like with their 2020 roll-out of “Absolute Brands”. According to Dog Haus’s Director of Franchise Development Erik Hartung, Absolute Brands are a series of virtual brands which re-menu portions of the Dog Haus in-restaurant offerings for take-out or delivery only. <img decoding="async" class="alignright size-full wp-image-7200" src="https://www.franchisebeacon.com/wp-content/uploads/2021/11/Picture1.jpg" alt="" width="105" height="69" />Erik explained to me that the company had been considering the Absolute Brands idea for some time, but prior to March of 2020 they were planning a roll-out “sometime in the next couple of years.”</p>
<p>When the pandemic hit and franchisees were suddenly forced to shutter their restaurants, the Dog Haus team went to work, and they went all-in on Absolute. Instead of “sometime in the next couple of years,” franchisees were able to offer the first of the Absolute Brands less than 60 days later, and today they have 4 different virtual brand offerings, with an eventual goal of 8. Dog Haus didn’t complicate things; they used what their franchisees already had; to-date they have only added one new sku to support the virtual brands, and franchisees of Dog Haus are automatically eligible to offer the virtual brands as well. The results? Franchisees generating pre-pandemic revenues by June of 2020 and comping <em>up </em>July 2020/2019.</p>
<h3><strong>A True Partner</strong></h3>
<p>A franchisor that enlists their franchisees in times of trouble, instead of shutting them out, is much more likely to react in a way that is helpful, rather than neutral or a hinderance. To illustrate this point I will step away from the restaurant space. In reaction to the stay-at-home order of March 2020,  Building Kidz Preschools (a franchisor I work with directly) immediately took several actions to help their franchisees. Like many franchisors, they gave an abatement of royalties. Because royalties are typically a small part of a franchisee’s overhead, however, reduction of royalties is more of a sign of solidarity than it is a “life raft”. Franchisees expressed what they needed most; the ability to secure funding to weather the storm. Building Kidz reacted to the franchisees’ request for assistance and secured a relationship with an SBA lender well before the PPP loan program was actually passed through Congress. In so doing, they put their franchisees in a favorable position when the funds <em>were</em> approved; so much so that all Building Kidz franchisees (17) that applied for PPP loans received them.</p>
<h3><strong> </strong><strong>True Leadership</strong></h3>
<p>Dog Haus and Building Kidz are just two example of the many franchisors that were able to step up and effectively lead their organizations during the initial days of the Covid-19 pandemic. They used very different methods, but to the same ends; to react to a sudden, unforeseen market shift in such a way that they either strengthened or, in some cases, outright saved their franchisee’s businesses.</p>
<h2><strong>Beyond Theoretical</strong></h2>
<p>The ever-changing landscape of 2020 and 2021 has laid bare a franchisor’s ability (or lack thereof) to step up to the plate. If you ask franchisees in two or three years from now how their franchisor helped them weather this storm, your will likely get vague answers. Let’s face it, our memories are short, and as business owners the events of two or three years ago are just not front-and-center in our minds. Right now, as many franchisees are just beginning to return to some sense of normalcy, is the perfect time to use real-world experiences, outside of the FDD, to evaluate the franchisor you are considering joining.</p>
<h3><strong>Go Beyond the Document</strong></h3>
<p>We all know that the FDD is an invaluable resource to help evaluate a potential franchise investment. If you are a franchise-savvy investor, you likely glance at Item 3, look at Item 7 to make sure it’s in your range, spend a bit of time on Item 20, and then dig into Item 19. However, when evaluating a restaurant franchisor as an investment today, I would encourage you to allow the narrative of the franchisees to carry at least equal weight to the FDD in your decision process. If you see an Item 19 showing that franchisees took a 10-20% hit in profitability yet hear from franchisees that business is recovering and also hear anecdotes that sound similar to Dog Haus and Building Kidz, you are likely looking at a franchise with strong and capable leadership.  Likewise, if you see an Item 19 that shows a minimal drop or even increase in profitability in 2020, but franchisees can’t pinpoint how their franchisor helped them either push through the pandemic or make the most of opportunities it presented, you very well may be looking at a brand with mediocre leadership that happened to hold a market position that wasn’t hit hard, or even benefited from, the pandemic.</p>
<h3><strong>What Will the Next Challenge be?</strong></h3>
<p>The global and domestic economy, and U.S. small businesses, will suffer from another setback in the future. It may be another pandemic, but it could just as easily be caused by a financial bubble burst similar to the dot-com  &amp; housing market recissions, or  even something completely unrelated to U.S. economics like the energy crises of 1973 and 1979.  Prospective franchisees are in a unique position today to <em>know</em>, rather than hope, how well franchisors respond to external threats to their business.</p>

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		<title>I Just can&#8217;t sell</title>
		<link>https://www.franchisebeacon.com/i-just-cant-sell/</link>
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		<dc:creator><![CDATA[Michael A. Peterson]]></dc:creator>
		<pubDate>Wed, 24 Mar 2021 17:42:41 +0000</pubDate>
				<category><![CDATA[Franchise Sales & Development]]></category>
		<category><![CDATA[Franchisee Assistance]]></category>
		<category><![CDATA[Sales & Development]]></category>
		<category><![CDATA[Franchise Sales]]></category>
		<guid isPermaLink="false">https://www.franchisebeacon.com/?p=7105</guid>

					<description><![CDATA[This article was featured in Franchise Connect Magazine, Issue 11. Franchise Beacon President Michael Peterson shares how to find your authentic selling voice.]]></description>
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			<h6><a href="https://issuu.com/franchiseconnectmag/docs/11_fcm-final-issue">See the original article here in Franchise Connect Magazine</a></h6>
<h1>I Just Can’t Sell</h1>
<h3><em>Many franchises in the home services sector require franchisees to engage in the sales process with the customer. If you think you just “can’t sell”, I promise you, you can.</em></h3>
<p>&nbsp;</p>
<p>In February of 2020, the world began to change, and the tectonic plates that underpin our personal, social, and business lives are still moving. For some people, this is the time to hunker down; others see opportunities in the changing landscape, or simply must pivot due to a lost job or other source of income. Irrespective of the reason, franchisors in industries ranging from in-home senior care to preschools to gift basket delivery are reporting year-over-year stability or growth in franchise development.</p>
<p><img fetchpriority="high" decoding="async" class="alignright wp-image-7106 size-full" src="https://www.franchisebeacon.com/wp-content/uploads/2021/04/I_Just_cant_sell.jpg" alt="Image of franchising article" width="391" height="500" /></p>
<p>Home-based businesses are uniquely attractive in 2021. With minimal or no staffing or real estate requirements, and reduced face-to-face exposure to customers, the appeal is obvious. Home services businesses have an added advantage. As Tim Smeltz, the founder of the driveway repair and maintenance franchise NextGen GreatSealcoating recently told me, “Even people that are not working from home are spending significantly more of their free time in their houses. Our homes have truly become our sanctuaries, and people are spending more on both upkeep and the aesthetics of their home environment.” His case is supported by the fact that his first franchisee, who opened in May of 2020, took less than 90 days to break even (according to NextGen’s Franchise Disclosure Document). There are many brick and mortar businesses that are equally well-positioned, such as childcare, senior care, and fast-casual delivery, but the home services sector has most certainly enjoyed a lift in visibility.</p>
<p>For some, these obvious upsides can be tempered by the daunting idea of becoming a “sales person”. If you are hesitating to get into the home services space for this reason, I have great news for you; not only can you sell, but without ever meeting you I can tell you the sales style that you should adopt to sell effectively, and eventually even become great at it.</p>
<p>To be clear, a great salesperson is not someone that can “sell anything to anybody” or “water to a drowning man”. Part of being a great salesperson is identifying someone’s need or want and helping them comfortably reach a purchasing decision that fills it. Salespeople that “convince” someone to buy a product or service that isn’t right for them are not “great’, they are con artists.</p>
<p>So, how do you become comfortable in a sales role? It’s simple, really. First, I’ll share with you the two pillars of any great salesperson, and then I’ll tell you how to find your unique sales voice.</p>
<h3>Lay Your Foundation</h3>
<h5>Pillar one: Become a scholar of your business.</h5>
<p>Study your competitive landscape, and what differentiators you offer. Understanding both the strengths and weaknesses of what you are selling is pivotal. I sell franchises for a living, and of course part of my competitive landscape is simply non-franchised businesses. Starting your own business without a franchise does have advantages; for example, franchisees have restrictions on how they can advertise, or what products and services they can offer. If I were to not acknowledge this, at best my prospects would think that I didn’t understand franchising; at worst they would think I was dishonest. By understanding the limitations of your model, you can contrast them against the strengths, and again help the customer reach the decision that is right for them.</p>
<h5>Pillar two: Know your competitor’s business as well as your own.</h5>
<p>Every business owner sells on their own unique value proposition. In order to effectively communicate what makes your service different and valuable, you have to know the market. When your prospect brings up either a competitor, or even just a feature or benefit that a competitor offers, you’ll be much better positioned if you’ve already studied the advantages and disadvantages of the competition. Also, and equally important, your prospect may simply ask you questions to see how well you know your business; be prepared to answer them.</p>
<p>Zig Ziglar, one of the great sales theorists of all time, famously wrote that “sales is a transference of emotion”. This one phrase has many layers; the fact that you have to be enthusiastic about what you are selling and that people make buying decisions based on emotion backed by logic, rather than the other way around, are just two. Another, which you may not have considered, is that no matter how much you believe in your service you will struggle to covey enthusiasm if you are nervous. It’s hard to be excited in the moment when you are worried about your ability to answer customer questions. Suffice it to say that Mr. Ziglar was not referring to nervousness and self-doubt as the emotions that you need to transfer in a successful sale!</p>
<h3>Find Your Voice</h3>
<p>Of course, knowledge by itself will not make you a great salesperson. You must be able to transfer the appropriate amount of knowledge, along with enthusiasm and excitement, so that your prospect is fully informed and not overwhelmed. To accomplish this, you must have the knowledge base, and know your best method of walking the prospective candidate through your process, and ultimately decide to do business with you.</p>
<h5>Buy Your Own Offering</h5>
<p>I don’t mean actually make a purchase from yourself, but mentally go through the sales process from a customer’s point of view. Find the level of information, the tone, and the communication methods that would make you most comfortable if you were the customer. Break you’re the sales process down into steps and analyze each step through this lens. Ask yourself:</p>
<ol>
<li>What information would I need to know at this step to move to the next step.</li>
<li>What information would overwhelm me at the stage. This is actually a difficult mental exercise; we like to think that we can just take in all of the information and make a logical choice, but that is simply not how we make decisions.</li>
<li>What information, if it wasn’t shared at this point, would you feel was misleading by its absence.</li>
<li>What tone, approach, or style would take you from considering to buying?</li>
<li>What would make you walk away from the purchase?</li>
</ol>
<p>These 5 questions, when answered for every interaction along the sales process, will illustrate for you your most authentic sales style. If you start from a base of authenticity, and have a deep understanding of your service offering, you will be able to sell comfortably. As you interact with your first several prospects, go back to your notes and see where you may have been incorrect, or where you may need to make minor adjustments to ensure what you are saying and what your prospect is hearing match up.</p>
<p>I told you it was simple! Using this process, you may not start out great, but you will start out proficient. Most importantly, you’ll be comfortable, because you are not trying to force yourself into selling in an unnatural way. If you continue to use this lens to study your sales process, greatness in sales is achievable.</p>

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		<title>10 steps to starting a franchise</title>
		<link>https://www.franchisebeacon.com/10-steps-to-starting-a-franchise/</link>
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		<dc:creator><![CDATA[Michael A. Peterson]]></dc:creator>
		<pubDate>Mon, 20 Apr 2020 06:02:29 +0000</pubDate>
				<category><![CDATA[Franchisee Assistance]]></category>
		<guid isPermaLink="false">https://www.franchisebeacon.com/?p=5365</guid>

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<p style="text-align: left;">Investing in a new business is a serious proposition. It deserves due weight and consideration. We can&#8217;t make it easy, but we can help make it simple with the 10 Steps To Starting A Franchise guide.</p>
</header>

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			<p><a name="1"></a></p>
<h2>Determine your capital availability</h2>
<p>Much like buying a house, franchises are available in most all budgets. Determining the price range that you&#8217;re comfortable investing in will help narrow the field to determine the best franchise for you.</p>

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<h2>What type of franchise do you want?</h2>
<p>Its not yet time to look at specific industries or specific brands yet. For now, concentrate on the fundamentals that are important to you;to do you want B2B or B2C business? Would you like to employee a large staff, or have a smaller operation? Are you interested in the concrete feel of a brick and mortar business or the flexibility of a home-based operation? Can you commit full-time efforts, or do you need to look at something that is passive/semi-passive?</p>

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<h2>Are you going to engage help in the investigation process?</h2>
<p>Franchise brokers and coaches can be an invaluable resource to many people. They help you perform object evaluations of your interests, life goals, and investment and ROI requirements. However some individuals prefer to handle the entire research process themselves, or even engage multiple specialists for developing funding plans, strategic plans, and a business plan.</p>

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			<p><a name="5"></a></p>
<h2>Begin your initial research</h2>
<p>There are many ways to narrow down your search. Working with a coach is one. <a href="https://www.quora.com/What-do-I-need-to-consider-when-I-m-researching-franchise-opportunities-and-where-is-the-best-place-to-get-data-about-different-opportunities">We have an answer on Quroa that talks about another approach</a></p>

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			<p><a name="6"></a></p>
<h2>Engage with franchisors</h2>
<p>Once you have narrowed the field, engage with brands you are interested in.<br />
Get an understanding of:</p>
<ul>
<li>A day in the life of a franchisee</li>
<li>What the expectations of the franchisor are</li>
<li>What you can reasonably expect from the franchisor</li>
<li>What their evaluation process and qualifications are</li>
</ul>

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			<h2>Begin your due diligence process</h2>
<p>Your diligence process is where you narrow the field of prospective franchisors. It should include:</p>
<ul>
<li>Reviewing the Franchise Disclosure Document</li>
<li>Industry and competitive analysis</li>
<li>If appropriate, visiting a local franchised location</li>
</ul>

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<h2>Evaluate your funding options</h2>
<p>You may find it helpful to meet with a funding expert. Prospective franchisees have many options available, including SBA loans, lines of credit, rolling over investment funds, and others.</p>

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			<p><a name="8"></a></p>
<h2>Meet the franchisor</h2>
<p>Attend a discovery or confirmation day. Pay attention to the small details that can reveal many things about the franchise operations. Make sure you meet the key members of the team that you&#8217;ll be working with for the next 5-15 years (or longer!). This should be a mutual interview, and no questions should be left on the table by the end of this day. You should walk away from confirmation day knowing if this is the right fit.</p>

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<h2>Join the team</h2>
<p>Once you feel you have found the right business for you, execute a franchise agreement and begin your new journey!</p>

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<h2>Build your business</h2>
<p>Don&#8217;t let a day go by where you haven&#8217;t done something to work on your franchise. Stick to your business plan and the franchisor&#8217;s operations manual.</p>

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