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Log In / Register | May 26, 2017
News and events that center around the selling and granting of franchise licenses

What is franchising? My personal definition!

Having had the good fortune of working in the franchising community for 25 years, I have come to define very personally the concept of franchising. When trying to define a term or concept it is important to understand what it is not.

Franchising is not an industry. Too often I hear people talk about the industry of franchising. It is like referring to joint ventures as an industry, or subsidiary operations as an industry. Franchising is not a guarantee for success. No business can guarantee a successful outcome. Franchising is not a “get quick rich” scheme. It is a business that requires patient capital. So if that is what franchising is not . . . what is it? What is franchising? Franchising is a method of growing a proven business model into a brand name. My personal definition of franchising includes five key elements.

Franchoice follies?

I still cannot substantiate it, but with my ear being in tune to all the latest and greatest in franchise anything, I am hearing that Franchoice is doing some serious reshuffling.

Rumor is that their President has been axed, with others to follow.

I know as a competitor of theirs that business is not exactly stellar right now, but with their merger recently with Fran-Buyer, who knows how things are shaking out.

Franpro

Blue MauMau Has A New Look

 Welcome to the new and upgraded Blue MauMau franchise community. We promised you that we would continue to enrich your franchise experience and we meant it! Our old alpha site was a good first try. It helped achieve some of the highest franchise traffic on the Net.

This new site promises to deliver you state-of-the-art franchise tools, with more original news stories sorted by industry (so that you can focus on just your line of work) , the day's trade news by industry , research and experts than ever before. As you see, we do not limit ourselves only to the contents of this site. Our site is willing to link to any place where there is important franchise information. So, if you want to be in the know about buying or managing a franchise, this is the place.

Here's a few highlights on just what's new for readers who become writers in the upgraded Blue MauMau site:

Malaysia: A Prospective Franchise Business Hub

The Ninth Malaysian Plan (9MP) is expected to include an allocation to promote the franchise business in Malaysia. Deputy Secretary General of the Ministry of Entrepreneur and Cooperative Development, Azmi Abdullah said, “The allocation will exceed the RM50 million provided in the Eighth Malaysian Plan. The allocation is for financial assistance, management courses as well as consultation assistance for entrepreneurs in both local and foreign franchise." This was announced during the launch of McDonald's franchising opportunity event in Mutiara Damansara.

This is good news for franchise business owners. About 251 franchisee applications have been approved in February and Malaysian government is expecting 50 new franchisors to enter the market soon. Majority of the franchisee operators would be operating food related franchise business. A total of 178-180 restaurants in Malaysia would be franchisee-run by the end of the year.

Domino's Founder Claims 'Misconceptions' Over Catholic Town

Founder of Domino's Pizza, Tom Monaghan backtracked Friday from earlier comments that he'd like to establish a new township by Naples, Florida governed by strict Roman Catholic principles, denying access to birth control and pornography. (See ABC's video interview.) Those remarks sparked considerable controversy.

Forbes quoted Monaghan's clarification of his earlier statements.

IFA Has New Leader

The International Franchise Association has appointed one of only two franchise owners in its history at its head. Lawrence “Doc” Cohen, a franchisee of the Great American Cookie Co. and Pretzel Time, became the chairman of the organization. He is a pharmacist and a lawyer by background. The Association describes Cohen as:

...an active member of IFA for more than a decade, has held many senior posts including Executive Committee vice-chairmanships, secretary and treasurer. He also chairs the 2006 Convention Committee, FranPAC Advisory Board and serves as a trustee of the IFA Educational Foundation...Both IFA and Great American Cookie Co. have bestowed top franchisee honors on Cohen for his leadership.

Franchises Salute President's Day

In honor of President's Day, we would like to feature what our presidents have done most recently for franchisees.

The honor goes to our incumbent president George W. Bush, who signed a class action reform act on February 15 of 2005 to help limit frivolous law suits, something much needed among franchise chains. Kudos to the International Franchise Association, the House of Representatives, the Senate and the prez for making it happen. Although some have criticized the move as unnecessary, it is this writer's opinion, the IFA's, Congress and the president's that such legislation sends a clear message. It is a needed first step.

 

President Bush Praises Wendy's For HSA Leadership

Bush Praises Wendy's Leadership President Bush visited the headquarters of Wendy's in Dublin, Ohio Wednesday, praising their leadership in providing HSA's or health savings accounts to "employees". Fox News reported that some "9,000 employees have signed up for the accounts since the company began offering them last year."

Superbowl: The Franchise Showcase

How huge was franchising to the Superbowl? Well, without franchising, there would have been no Seattle Seahawks sports franchise losing to the Pittsburg Steelers. There would be considerably less money too without franchiser business -- like Pizza Hut pushing its new Cheezy-bites pizza.

And the franchise business of the Superbowl is big business. This year 43% of the new Superbowl ads listed on iFilm.com were franchise related.

It's not only big business but franchising's influence on the Superbowl is big calories too. According to FoodFact.info, "If you ate each of the fast food items advertised during the Super Bowl XL you'd consume 3325 calories, 178 grams of fat, 1665 calories from fat, and 6910 mg of sodium."

With all the franchise sport, big business and food calories of the Bowl, Blue MauMau was right there for you, stacking up entertaining franchise ads on our site so that our readers wouldn't miss a thing. Now our readers can not only view videos of the game's hilarious franchise commercials, but they can also vote on the best Superbowl business format franchise commercial (see left-hand column).

That doesn't mean that all franchising ads were business format franchises such as Blockbuster though. Franchising is a type of business authorization and structure. It consists of business format, trademark and product distribution franchising.

The largest group of franchise related ads were from trademark and brand franchisers, coming in at 23% of all ads featured. Trademark franchising provides licensees the right to use the parent company's trademark or brand. Anheuser-Bush and Pepsi were the top advertisers in this category.

Next was product distribution franchising. in which a parent company grants the right to sell its products. Cadillac, Nissan and Honda led with the most ads here. Then finally business format franchising followed with Pizza Hut leading the pack with the largest number of commercials -- three.

All this ads up to a lot of ads and a lot of interest by not just sports spectators but by franchisers.

Where Trade Journal Readers Are Going - Trade Blogs

Although I have already commented on Hugh Hewitt's book Blog to our community, I also decided to send an email directly to Mr. Hewitt on my views on how trade journals, although slow to join the bigger trend, are now shifting full force to the world of blogging -- called trade blogs. Trade journals, and no I don't mean journals only about importing and exporting but rather periodicals that are used by a profession or a particular industry, are not exactly Mr. Hewitt's cup of tea. He is famous for his political punditry. Still, he seems to have his fingers on the future of blogging and so I decided to write. Here's the letter below on the future of traditional trade journals -- of franchise and entrepreneurial magazines -- and why their readership is shifting to blogs. If I hear from Mr. Hewitt, I'll report it. -don-