I recently came across an interesting discussion in one of the social networking groups that I found quite intriguing, and downright enjoyable to read. It wasn’t about franchising. Nothing about social media. There was no mention of business. Money or finances weren’t a major part of the equation. And, surprisingly, just a few mentions about the poor economy.

The discussion was actually about the concept of dreams and goals. It was enlightening that there were over one hundred responses in a relatively short period of time. Definitely a considerable amount when compared to other discussions within the same group. Often, the responses were being posted one right after the other. It seemed like people wanted to talk about their dreams and goals, almost as if they had been prohibited from doing so before.

In light of the economic troubles surrounding us today, it seems the subject of dreams and goals has hibernated like bears for winter. During good times, dreams and goals are out in the open, shared by many. Actually bragged about by some, and the end results, often materialistic, flaunted by others. It’s ironic that we’re taught that in order to achieve a goal, a key element in doing so is to enlist the assistance of people that can help us achieve the goal. Yet, in the current economic climate, discussions about dreams and goals have subsided, and almost disappeared. It’s almost like we feel guilty to have such discussions at this time. Or, that we should just be thankful for what we have and dismiss our dreams and goals as frivolous. What about the dreams and goals that are not financially driven or rewarding? Why have they been put on the back burner? Well, to all of this, I say “enough is enough.” Yes, enough of the poor me attitudes. Enough of the pity parties. And, enough of the social “rubbernecking.” (Social rubbernecking is when people excitedly talk about other people’s miseries – i.e. neighbor lost his job, their house was foreclosed on, he was having an affair – it’s just like slowing down to look at the horrific car wreck!)

NOW is definitely the time to put all the negatives aside and re-ignite the passion behind our dreams. It’s the perfect time to pull out those lists of goals and remember why we wrote them down in the first place. Why they’re important. How they’re important to people close to us? And, how our lives would be positively affected upon achieving our goals and making our dreams come true. Certainly, it’s time to face the realization that it’s up to us to make our dreams and goals a reality. They’re ours. We own them. No one can take them from us. To paraphrase a quote I’ve seen many times (in many different forms) in discussions about success, “There are people that make things happen, some that watch things happen, and others that wonder what the hell happened?” Could you tell which group of people are most successful at achieving their goals and making their dreams come true?

May all your dreams and goals come true in 2010!

Do you know how to tell if your vegetable or cooking oil’s gone bad?
Been really pondering the vast mysteries of how to store and keep your restaurant’s oil, or even if it is advisable to do so?

Perhaps you have wondered just which oil is the most healthy for you to be cooking your food in. Well, wonder no more. Even if you never thought about these things, there are some interesting facts about just what that liquid gold in your fryer does, and how that impacts your business’ bottom line.

If you have worked in food service for quite some time, you are probably well aware of what happens to your cooking oil as it deteriorates. It starts to smell a little off, there are all these little bits of food in it, and it begins to sort of taint the foods you fry in it. Fries begin to smell and taste a little fishy, chicken starts to have a frylike taste, and so on and so forth. Everyone’s gotten the french fries with the odd bit of “something” in them. Have you ever thought about what’s really going on with the oil as it deteriorates and what you can do to slow that process?

Filtering out those little bits of particulate on a regular basis is a very good start, but there is more to it than that. The whole process begins with that first batch of food fried in new oil. It starts to darken from the very first few batches, and by around the tenth or so, it becomes more noticeable. This is due to both the food particles and the oil burning for a prolonged amount of time. The more it gets used, the slower it seems to pour, and cooking oil, much like the oil you use in your car will undergo changes in viscosity. This happens both due to the changes in its molecular structure and because as you use it, food particles begin to accumulate. When it does start making foods taste like one another, or it begins to smoke before it reaches full heat- it is just past time to throw it out.

The best methods for storage of cooking oils, if you are running routine maintenance on your fryer and the oil has not gone bad is to keep them anywhere that is cool and dark. One of the best methods of prolonging the life of cooking oil is actually to remove it from the fryer, place in the refrigeration unit when you close up the restaurant. This is not actually the most practical method, but if you’re looking to cut costs when it comes to storing your oil, it’s one way of doing that. This is because oils are actually pretty sensitive to heat and light and the longer they remain exposed to either, they deteriorate that much faster.

As to which oil is the most healthy, the honest answer is, there really isn’t one. You can, of course, go into all of the ramifications of which oils carry what fat composition, but when it all boils down- healthy is no more than 25 to 30 percent of calories of fat in everyone’s daily dietary intake. Period. Of course, there are “healthier” fats, but the bottom line is, in food service it is usually best to choose the oil that best suits your budget.

Many experienced and seasoned restaurant owners have had to deal with the consequences of a poor hiring choice at some point or another. Whether it was just a busy time of year and management didn’t filter through the applicants well enough, or possibly it was the management that was the bad choice- everyone’s been there. Usually, restaurant management handles the hiring and training but sometimes, a bad choice slips through the cracks. Avoiding a number of common hiring mistakes can cut your losses, actually. A poor choice in employees often results in loss of time, wages, advertising, and occasionally and employee lawsuit, so this is something to consider very deeply and take seriously.

Before you begin to even advertise for the position, sit down and really outline everything that you are looking for. Begin first with the positions you need filled, and the qualifications needed to fill them. When you do advertise the position, be exact in what you are looking for- this will save you a great deal of time and money, and prevent any mistakes in someone perhaps applying for a job that they are not qualified to handle. Ensure that the place that you plan to interview is casual, that it does not set the person at ill ease or make them feel uncomfortable- something which may make nerves worse and cause you to miss out on a potentially great employee based on a case of nerves.

The biggest problem usually comes in relying too heavily on references. More often than not you do not get a balanced opinion from these, even if it is a former supervisor. The best thing to do is to balance the references with the impressions that you get of the potential employee during the interview process, and go from there, rather than leaning too heavily on the references alone. Interviewing very carefully, perhaps conferring with an assistant manager or even your staff trainer may help. Often, having someone else there for the interview not only further puts the prospective employee at ease, but it can help to pool your opinions and impressions and make a much more informed choice.

Lastly- one of the best way to make sure that you hire on good employees, is to be a good employer. Reputation is everything in the restaurant business and people do tend to desire working for a much more highly spoken of business. It has been shown that the more desirable the position is within the restaurant, the better quality of applicants you will receive, and in that, you’ll find much better employees and less turn over rates. One of the biggest issues in the food service industry is it is typically a higher turn over- due in part to younger people accepting the positions but also, because often, employers are not doing the best they can to retain these employees. Things like promoting from within and you will  find that you are not only more able to hire better employees, but keep them working for you for a long time and reduce the need to hire quite as often.

Food service is a very resilient industry, and no matter how bad the economy gets, it is usually one of the few areas that make it through. This usually depends by and large on the abilities of the management to make sound choices, control loss, and be able to make sure that the restaurant is still moving forward, even when many businesses are falling behind. There are a number of strategies that smart restaurant management uses in order to continue moving in a positive and profitable direction, and these things are generally a key ingredient in surviving rough economic times.

Marketing is still a major factor, even when the economy is down. With the boom in internet use, many food service establishments have Myspace pages, Facebook and even use Twitter as a way of continuing to promote sales, specials and deals in a cost effective manner. The trend continues to move upward, which does show businesses that utilize this as being with the times and keeping up with their customers- so that is an added benefit.  Other means of advertising and promotions abound- everything from themes to adding karaoke has been used by restaurants in order to continue promoting, and continue to make sales.

Controlling loss is a way to make it through, even with profits are not surging upward. Staffing is one area where loss can be controlled by paying attention to market trends and making sure that you are scheduling accordingly. You have to be absolutely certain that you have the right number of staff during the busy times- but not over staffing during the slow. Balancing your schedule in this way helps to cut the cost of labor, which is a great way to make sure that loss stays at bay. Paying careful attention to the staff that is working hard and giving their full effort is key, so that in the event you do have to cut some of your crew, you know who will provide the very best customer experience.

Another area, is in employee theft. Everything from theft of tips, to even recognizing patterns of behavior can help- because during a down economy, the sad truth is that theft tends to occur more frequently. Understanding how to appropriately address these situations as they arise is important, yes, but loss prevention measures can not only enable restaurant management to avoid loss, but rarely have to deal with this problem, as well. This problem can impact all aspects, from loss of inventory to fudged time cards, and is something that can cause a great deal of loss.

Preventing loss and making sure that you are still working towards a better bottom line is more important than ever when things seem uncertain. More often than not, food service industry professionals are keenly aware of the trends in their profits and using that information will enable you to be able to better schedule, prevent loss and be able to continue to make it through. Intelligent business owners are the ones that make it through the rough patches and still succeed.

There are a number of commonly asked questions when it comes to franchising. Some wonder, if you are using someone else’s business model, and you have to answer to a franchisor, are you still your own boss? Others still yet wonder if other franchisees in the same franchise are competition, or are they colleagues. Going further still yet, many wonder if perhaps you need special skills or if franchising is something that anyone can do. Here, we’ll touch on a few of the basics and sort of explain how franchising is one way to open a business and become self employed.

What is Franchising? To put it very simply, franchising is paying someone else to use their business model, marketing and operations techniques, and the use of their brand name. You buy into an already successful business, and benefit from its brand and experience. In some ways you are not your own boss, in others you are- there is still yet a certain level of flexibility that one gets from franchising. However, in the aspects where you aren’t your own boss, generally the benefits outweigh that. Being able to have that backing and support can be a big benefit and many who have gone into independent business can tell you- support is very important. Not only that, with franchising, you tend to get a much quicker return on your investment, and reduction of risk is a big factor as well.

The fact that franchises are usually more quickly up and running is easy to explain- if you look down the street in any given town, and think about the franchises you see, such as McDonalds- they are all the same. The same basic build, same basic operating procedure, same training, same products, and the same marketing. This makes it very easy to set up, and done quite quickly which in turn makes it a faster road to turning a profit.

There are however a few things with franchising that you don’t have with independent business. In order to purchase a franchise, you’ll first need to pay a franchising fee. This is the amount agreed upon and paid at the time of signing a franchise agreement. Usually this fee only covers the right to use the name and the system, but in some cases may include other things. There are also ongoing fees known as royalty fees- and these are generally a percentage of sales, the terms of which will be drawn up and outlined in your franchising agreement. Still, general running costs for franchises are typically a little less than independent businesses.

This is just a simple run down of franchising, itself. There is much more to it than just the fees and brand recognition, but on the whole, franchising affords people another option for business ownership. This option is usually well laid out and more organized that independent business, and as such, is generally a good option to narrow the risk margin and for faster start ups.

For more on filtafry visit filta.com.

Franchising has one big benefit and this is one that is expressed a number of ways but it boils down to lower risk. Any time you begin a new business, it carries with it a high level of risk that can be very intimidating. As a matter of fact, we’ve seen, studies show that 90 percent of all businesses will fail within three years and that the failure rate is high because owners have to adapt- and can’t. Failure to move through that learning curve and learn to operate a business is rough, but quite common. Franchising takes away a great deal of that risk because it is an already proven formula in most cases. Franchises are usually an already defined, proven business format, whereas often, independent business requires a great deal of trial and error- and unfortunately, in business, it’s those errors that cause failure.

Another great benefit is that franchise is an investment and like most businesses, that carries a certain element of risk, yes, however, unlike an independent business- you can research a franchise. Sure, you can project potential income for a business, but you cannot accurately assess what it will make based on example- but with a franchise, usually you can. There is also usually a great deal of information about any given franchise out there ready for anyone to look at, and read through making it a very informed investment on the part of the franchisee. Additionally, with that proven plan comes proven names. Brand recognition is easily one of the biggest advantages to a franchise operation.

Supply costs are typically lower with a franchise as well. There is usually some form of group purchasing power through the franchiser itself that makes this much more organized and sold at the best possible price. There is almost always a uniform system of operation, so that consumers end up getting the same, consistent quality from location to location. This is also one of the tie ins to mass purchasing power and brand identification as well as customer loyalty.

The franchiser will also often offer a better format for training and marketing. Not only that, using that proven system, there are often protocols in place for everything from accounting to the technical basics of maintaining the equipment involved. This usually makes the advantage definitely franchise over independent business when in start up because it is almost instant business- with training formats outlined, ways of doing business already clearly defined, all that is left is training employees in the given format.

As you can see, there are a number of ways that a franchise really has a great deal of benefit over an independent business. While this is true, understanding that this is still yet a business of its own, with the same sorts of responsibilities can help. Identifying your own traits and lifestyle needs and weighing them against your franchising options can definitely help you to make the right choice for you.

For more on filtafry visit filta.com.

In recent years, working at home has become a big boom. The draw to telecommute is a big one- not only can you be your own boss, but you see all the time, “work in your pajamas!” and other perks listed. While not all home based franchises are going to afford you the luxury of working in your pajamas, a few do. There are a number of home based franchises that can really make a big difference in not only your way of life, but your wallet as well. There is a reason that home based franchises are some of the most sought after positions around- they bring a greater flexibility, assume less risk than independent business, and bring in a source of stable income. What could be better?
There are all sorts, but each will carry a small element of sales. Even if your franchise is simply one of those massage chair franchises that we see in all of the malls and shopping outlets- you’ll still have to be able to sell yourself to the location in order to be successful. However, for every type of person, there is definitely an at home franchise that can be well suited to them.
Everything from housekeeping to painting, tutoring and beyond. Whatever interest you have, you can be sure that you will find a home based franchise that not only suits your goals, but likely can be integrated into your lifestyle with ease.

Having an office in your home does also mean less overhead, little commute costs, and you have a greater flexibility in setting your own hours and working at your own pace. There are also a number of tax benefits having your home office set up- especially if you are franchising, and according to the tax laws, you can claim portions of your house or garage for use as a home office. Using that area on a regular or exclusive basis means that you use it for work and not just occasionally. Exclusive means that it is only an office and nothing else and you will not be able to run the administrative aspects of your business anywhere else if you claim your home office. One of the best things you can do if you do decide to buy a home based franchise is to be sure you have an excellent accountant who can help you to make sound business decisions in this regard.

Other benefits of at home franchises is, relatively speaking they do tend to have much less in the way of start up as opposed to brick and mortar franchise. Considering you don’t have to set up a building, you don’t have to hire on staff most of the time, and you usually do not need a huge amount of inventory, it’s really no wonder. The convenience is also a big draw, as it makes balancing work and home life a bit easier for many people who perhaps have reasons for not wanting to work outside of the home.

For more on filtafry visit filta.com.

For entrepreneurs and those fascinated by the small business world, the explosion of internet financial journalism can be both a blessing and a curse. Everyone has an opinion these days on the state of the business world, and everyone with an opinion has a blog and a Twitter feed. But every now and again, some wisdom is passed on that is so important, we must pass it on.

The Wall Street-Journal has provided 5 small business indicators that are essential for forecasting the direction of the US economy. They are listed below.

1. Real Personal Consumption Expenditures: this will “shed light on whether consumers are spending and how much”
2. Consumer Confidence
3. Producer Price Index: important to monitor because it can reveal inflationary pressures
4. U.S. Dollar
5. Unemployment Rate

The big issue, underlying most of this is consumer confidence. There will be a day, either this year or the next, when people decide it is safe to go out and spend again. This will have something of a domino-effect on the economy at large. All of these indicators will give you a great sign of where consumer confidence lies.

If you are a franchisee considering taking on extra staff or considering expansion or a prospective franchisee trying to perfectly time your entry into the market, our advice is this: monitor these indicators very closely throughout the year.

Many people have concern about keeping it local. Everyone wants to support their local economy and make sure that the money stays within the community. However, there are a few facts about franchising that you should know before you assume that a franchise is “big business” and that it is purely about taking money away from your community. It is not really the case, usually- for the most part, franchises are almost always owned by someone who has lived in the territory for some time, or at least close to it.

In any given franchise, particularly the smaller ones, there is a local person- usually someone who is actually native to the area, behind everything. Franchises are bought by people who want to be self employed, want to run their own business, but are seeking out a proven business model and perhaps brand backing to help them succeed. So the first thing to really understand about a franchising operation is this- behind it, it is likely one of your own neighbors. The bulk of the money that was going to go out of the community already did- when this person bought the franchise. Yes, there are fees and royalties, but for the most part, consider that the person who owns that franchise is probably one of your own neighbors. More often than not, franchises are not big, faceless corporations at all, but locally owned and run businesses, just like their smaller, independent counterparts.

Secondly, franchising brings jobs- even the smallest of businesses, the more successful they become, has to hire on help. The most cost effective way to handle hiring of employees is to do so from the existing pool of the population around. So, the jobs are not being taken away, either, and on the whole, franchises may be employing a great number of people in your very own community. Also, smart franchise owners usually bring in supplies and contractors from the community itself- this is intelligent business sense, as it is usually not nearly as expensive to bring in local work. So, in these ways, franchising does in fact benefit local economies in a better way. Many people find that their first job as a teen, in fact, ends up being in a food service franchise of some sort, and again- this benefits the local economy.

Behind each and every franchise operation that you may see in your community, there is an owner, a manager, sometimes sub managers and usually employees. Each and every one of those people come from your communities. As they work, they bring in money to support their own families- and, in turn, your community as well. The economic wheel moves as it does, and the local work that comes from franchising is actually a very stable and good thing- unlike independent businesses which can face economic crunches and not make it out, franchises usually already have a proven set up that has been working for them for some time. This keeps your neighbors, family and friends in jobs that support both themselves, but also, your community on the whole.

For more on filtafry visit filta.com.

The Small Business Administration has just released its newest list of failure rates by franchise brand from October 1, 2000 until September 31, 2008. This is a list of general SBA 7(a) and real estate and equipment 504 loans to franchise owners. It gives a sense to lenders and buyers on how well franchisees in a chain are financially able to perform. This is the list that the agency provides to loan officers of its most trusted lenders and banks throughout the country.

Loan officers and franchise buyers realize that there are thousands of franchise opportunities to buy from, so why mess with the riskiest?

This Report, in spreadsheet form, is the unedited data from the US Small Business Administration (SBA) reporting on franchise loan performance on the brand level during the time period of 10/1/2000 and 9/30/2008.

The table of data includes listings for all identified franchises by franchise code for loans guaranteed through the 7(a) and 504 programs. The table includes the number of disbursements, the amount disbursed, the failure percentage and the charge-off percentage. Individual loan data is not included in this report.

FiltaFry’s failure rate is only 6%. There are more than 300 brands with much higher failure rates (as high as 85%!) including:

Athlete’s Foot – 46% failure rate
Dollar Discount Stores – 44% failure rate
Carvel Ice Cream – 41% failure rate
Blimpie – 40% failure rate
Golf Etc – 40% failure rate
Wing Zone – 38% failure rate
Kwik Kopy – 33% failure rate
Mr. Electric – 33% failure rate
Back Yard Burgers – 32% failure rate
Fast Frame – 27% failure rate
TCBY – 25% failure rate
Budget Blinds – 24% failure rate
Godfather’s Pizza – 23% failure rate
Wetzel’s Pretzels – 23% failure rate
Minuteman Press – 22% failure rate
Meineke Discount Muffler – 21% failure rate
Petland – 20% failure rate
Quiznos – 19% failure rate
Lawn Doctor – 18% failure rate
AAMCO – 17% failure rate
Chem-Dry – 16% failure rate
Long John Silvers – 16% failure rate
Mr Handyman – 13% failure rate
Exxon – 13% failure rate

For more information visit www.filta.com

Business ownership can be one of the most financially rewarding investments you make.  It can also be one of the riskiest.  By choosing to invest into franchise ownership, rather than starting up a private, independent business, you significantly increase your chances of success.

However, franchise ownership can be notably more costly than independent ownership.  Though the cost is certainly worth it both in terms of security and potential return on investment, financing a franchise can be an ordeal in and of itself.  Where does a hopeful investor turn to raise the capital need to start his entrepreneurial endeavor?

Personal Assets

Obviously, you want to raise as much of the capital as you can on your own.  The more you put up yourself, the less beholden you are and the more positive the start of your business.  So before you get started, take stock of what you have to offer.

If you haven’t already hired an accountant, now is the time to do so.  A good accountant can advise you of options you may have not considered.  If you have equity in your home that you can borrow against, then you are off to a good start.  Look into your other assets as well.  It is possible to create a C corporation from your 401k or other retirement funds.

Co-Investors

If you feel comfortable with the idea, then you might want to consider soliciting for investors within your business and social networks.  Friends, family and associates can often be surprised in the level of support they are willing to give to someone who has a history of good business sense and the drive to succeed in business.  Don’t let shyness stop you from achieving your dream of business ownership.

Funding Through the Franchisor

As lending has tightened, due to the economic crisis, more and more franchising companies are beginning to offer incentives and financial backing for those looking to invest in franchise ownership.  Though this additional financial dependence on the franchisor is far from ideal for most owners, it may provide a means of ownership for those who simply cannot raise capital through other methods.  As such, make sure you are aware of what options your intended franchisor options for those looking to become owners.

Other Loan Resources

Just because lending has become more restricted doesn’t mean that a traditional business loan is unobtainable.  Banks are lending less, but are still lending.  In addition to the traditional lenders, an increasing number of alternative lenders have also begun to make loans available in the gap created by the banking industry.

If your business is backed by the Small Business Association and their loan backing guarantee, then you stand a much higher chance of getting a traditional loan.  If you haven’t settled on a franchisor yet, but know that you will need a loan once you do, you might wish to narrow your search to those on the SBA Franchise Registry.  Having a SBA backed franchisor will put you in a much better position when it comes time to apply for that loan.

For more on filtafry visit filta.com.

We’d like to take this opportunity to pass on our condolences to the family of Arthur Bartlett who passed away on New Year’s Eve. Mr Bartlett was a true giant of franchising.

Born in 1933 in New York state, Bartlett is one of the people most responsible for the spread of the real estate franchise. The company he co-founded with Marshall Fisher, Century 21, may be the most recognizable real estate franchise in the country. Bartlett had worked as a salesman before getting into real estate, and was turned onto franchising by Fisher. They opened their first Century 21 in Santa Ana, California way back in 1971 and Bartlett was quickly converted into one of the most prominent believers in the power of franchising.

“Franchising has been the savior of free enterprise in this country. It has given the small businessman a way to survive,” Bartlett told the LA Times back in 1982. Those are words that will inspire anyone involved in franchising in the slightest.

According to the LA Times obituary, what made Bartlett unique was his ability to convince thousands of independent real estate companies to believe that their greater interest rested in being part of a national franchise organization.

When you think of it, Century 21 is everything is a franchise should be. Those yellow-y jackets, that iconic logo: Century 21 business owners embodied all of the principles of the larger business they represened and they became America’s most visible real estate company. It’s a global organization now with over 7,700 offices around the world.

We’d like to salute Arthur Bartlett for his life work and remember everything he has done for franchising.

As everyone working in the franchising sector knows, even though the calendar has changed, the economic challenges haven’t gone away. Luckily, this fact hasn’t escaped the eyes of President Obama, who has spent some of the first week of the year lobbying America’s banks to accelerate their small business lending.

According to Entrepreneur magazine’s Diane Ransom, President Obama has asked that bankers give small businesses that had loan applications rejected this year “a third and fourth look” this year. They are strong words from the President and now the ball is firmly in the court of America’s big banks to do something about it.

Will they, though? The CEOs of Bancorp and PNC Bank, after meeting with the President, subsequently made pledges to reconsider rejected loans. And according to outgoing Bank of America president Ken Lewis: “Small and medium sized businesses are the lifeblood of the U.S. economy. Our improved financial condition and our optimism about the economy will allow us to step up lending to support these clients.” That statement is backed up by pledges of up to $5billion to small banks, so at least Bank of America are putting their money where their mouth is.

But still the lending market remains stalled. We welcome the President’s lobbying on behalf of small business owners, but it is time for these hugely profitable banks to start to push some of their earnings back into the real economy and into the pockets of America’s franchisees and small business owners.

The IFA has announced its keynote speaker for its annual convention in San Antonio next month. It’s an interesting choice, and certainly a marquee name.

George W Bush, native Texan and the 43rd President of the United States, will deliver the keynote address at the IFA Convention on February 6th. Bush has enjoyed his life outside of the Oval Office and it marks the second convention in a row that a former US president has attended. Bush’s predecessor, Bill Clinton, addressed the assembled franchise community in San Diego one year ago.

Here’s some good news for franchisees and business-owners going into the holiday break. Congress has extended some critical SBA loans that were set to expire by the New Year.

The Wall Street Journal has done some excellent reporting on the story. These loans may only be extended until February for now, but in reality, this will be a big help for businesses struggling to make it to 2010. These were loans created under last February’s Recovery Act and essentially they raised the government’s guarantee on SBA loans from 90% to 75%.

In a press release, Mary Landrieu (D-La.) said: “Small businesses have been left in limbo since the funding ran out. [The legislation] will provide a lifeline to small businesses in need of credit.”

There was a lot of lobbying done in Washington to get these loans extended, so while the timespan is somewhat short, ultimately, it shows that people on Capitol Hill are still taking the needs of small businesses into account.

On this positive note, we wish all a happy and safe holiday season and look forward to another happy year of franchising in 2010.

Last week’s franchise Outlook 2010 provided a very concise forecast for the franchise market for the coming year. There is light at the end of the tunnel, but we still have a journey in front of us before we return to the headier days of 2005 and 2006.

What will the franchise community do to bring about the conditions for its next successful era? The IFA specifically called for the franchising community to come together and pool its know-how for the betterment of the whole industry in its outlook for the next year. The 2010 IFA Convention will offer the first opportunity of the year to do so.

Online registration has opened for the 50th IFA Convention. It will be held in the Convention Center in San Antonio, Texas. The IFA Convention is one of the biggest franchising events on the calendar, and it should be an even bigger occasion this year, given the landmark anniversary. We will provide more info on discussions, speakers and roundtable meetings as they are released.

It’s an outstanding occassion to get to know your fellow franchisors and franchisees and we recommend you do everything you can to get to San Antonio in the first week of February.

2009 has been a big year for international franchising. If anything, it’s a sign that the world is getting smaller by the day. But it doesn’t mean that relocating your franchise to a new country will lead to overnight success. As franchises reach more and more exotic locales, you’ll have to bring a brand new culture around to a new way of doing business.

Food franchises have been the most bullish about international expansion, but in many ways, they face the greatest challenges in cracking the developing world. There might be billions of people living in India and China, but beyond the novelty value, how interested are locals in eating fried chicken or double-cheeseburgers on a regular basis? Not only do these cultures have their national foods but they have their own eating habits. Food franchises must lay the ground for a new alternative.

It is no coincidence that the rise of franchising in America coincided directly with the rise of the American middle class. Franchising is perfectly suited to the needs of middle class life. We now see America’s biggest franchises trying to fully establish themselves in a host of developing economies with a growing entrepreneurial class. These are interesting times.

Russia, the world’s biggest country, is one of the countries that McDonald’s and Burger King are specifically eyeing. Their challenges, as Reuters recently outlined, are quite obvious: 70% of people Russians don’t eat outside the home. Now if you’re a ‘glass half-empty’ international franchisor, maybe you stay away from Russia, figuring that these eating traditions are fixed and rooted in time. But McDonald’s and Burger King are “glass half-full” franchisors. They look at this population of 141million and see a massive chunk of the population ready to trade in gulash for Whoppers. It’s the kind of ambition that franchises need to thrive abroad. Remember, restaurants were a novelty during the Communist years. BK are so bullish on Russia they’re opening 40 units in 2010.

And Russia isn’t the only market appetizing QSR franchises. Yum Foods, owner of Taco Bell and KFC, are planning to open 1000 units in India in the next few years, the Wall Street Journal reports. It’s a big leap and even greater proof that America’s food giants think that the world wants “American” food. And as the global economy creates a new middle class in countries like Russia, India and China, I’m tempted to believe them.

Way back in 1985, John Naisbitt, the author of Megatrends, wrote the text “The Future of Franchising: Looking 25 Years Ahead to the Year 2010 for the IFA. Naisbitt stated that franchising was certain to grow, and, as the IFA have acknowledged, he was right. But where does franchising go from here? That was the subject of yesterday’s 2010 Economic Outlook.

There’s loads of material in the PriceWaterhouseCoopers Outlook and we’ll hope to touch on some of the key findings here. The forecast for the next year calls for “slow growth”. I don’t think this will shock anyone who’s been following the industry closely. The recession may be behind us, but the lending market is still harsh, and political issues, such as the environment and coming health care legislation, don’t make things easier.

The feeling is that the franchising sector will mirror the small gains the domestic economy as a whole is slated to make.

The sectors that are predicted to experience the highest growth are Personal Services, Quick Service Restaurants and Business Services. Job losses are predicted in the lodging sector, while real estate industry should see some new jobs added.

There’s also a poll of franchise owners on the state of the industry. A small majority expects the economy to improve in 2010 and there has been a 15% hike in the number of business owners that feel that the economy’s performance will be “somewhat good” in the next 12 months.

As far as strategies for the future go, the IFA have a four part plan that reads like this:

• To shape the legislative, regulatory and public policy decisions that impact franchising.
• To enhance and promote the unique image, attributes, and benefits of franchising and of the association among key audiences.
• To provide programs and services that provides value to members
• To increase membership across all franchise sectors.

These are all pretty interesting and hopefully, if delivered can ensure the future growth of franchising. As you’d expect, there’s plenty of reaction in the media. CNBC did an interesting interview with Matthew Shay about the Outlook, and also spoke to a UPS Store franchisee. Meanwhile, over on the Uptake Travel Industry blog, Julie Sturgeon bemoans the problems with lodging sector, while providing an overview on the report. Thankfully, the IFA have provided a fact sheet for anyone looking for specific figures on the report.

As the year winds down, it’s a relevant time to start to analyze the trends that will shape franchising for years to come. Especially as we stand on the verge of the next decade, one wonders exactly how the meta-factors that are changing the world-at-large will trickle down to effect the neighborhood franchise.

Take climate change. Over in Copenhagen, delegates from the around the world are meeting to (hopefully) iron out an agreement that will seek to control international carbon dioxide emissions for the next generation. Climate change is a contentious subject, and while it’s something I notice every now and again, I can’t say it has a real impact on my life. But that could soon be changing.

As a regular reader of the web magazine Slate, I was fascinated to read an article on the history of the fast food drive-thru and its potentially troubled future. To summarize from the article, the popularity of the drive-thru is directly linked the growth and popularity of US car culture, marrying as it does “mobility” and “consumption”. But with talk of oncoming carbon taxes and the specter of Peak Oil, what will a world fewer cars mean for QSRs with drive-thru facilities?

The answer could be quite damaging for QSRs. The Slate article states that 65% of McDonald’s sales come from drive-thru’s. The success of American fast food restaurants is built upon their ability to provide a top product in a short enough time to fulfill a consumer’s expectation for convenience. It remains to be seen if Americans will line up in a store itself with the same gusto.

As for the future, one would think that the day of the ‘walk-through’ or ‘cycle-through’ restaurant is not too far off, but the Slate article also profiles many of the teething problems with this trend. So while it’s a bit early to write the obituary of the drive-thru, those food franchises that can deliver a convenient model for the on-coming green age may be mostly likely to prosper.

This day next week, the International franchise Association will publish its franchise Outlook 2010. The projections that Matt Shay will outline for the coming year of franchising will provide an essential insight into the how the industry is faring at the moment, not to mention a weather vane for how the short-term of franchising is shaping up.

In a preview of what is to come that appeared on About.com’s franchising blog, Shay is specifically targeting a $3.4billion “windfall in lending”. The downside to this windfall is 134,000 jobs that aren’t created and $13.9billion in economic activity that is not thrust into the economy.

Shay’s solution is pretty simple in one sense: to get banks lending again ASAP. He calls on Congress to immediately pass on pending legislation. “Immediately passing enhancements to government lending programs can shore up the $3.4 billion shortfall in lending. New franchise businesses can create much needed jobs – which will speed the U.S. economic recovery.

Shay will further detail the Small Business Lending Matrix and Analysis next week. From these preliminary statements, it seems the pressure has never been greater on America’s legislators to get these laws passed so that the business of franchising can help inspire the return of the US economy.

Keep an eye on this blog for more info on franchise Outlook 2010. The IFA will be presenting it via a webinar that will feature Shay, Dina Dwyer-Owens and Dr Drew Lyon of PriceWaterhouse Coppers (pre-registration is required)

Whether or not you’re a franchisor working in a skyscraper in Manhattan or a Subway franchisee managing a small team in Tacoma, Washington, you will need to be a leader in order for your business to succeed. But where does that capacity for leadership come from? We have some free insight.

Ugo Ginatta, CEO of Paciugo Franchising, has made his niche franchising coffee and gelato, two specifically Italian delicacies. With many years of business under his belt, Ugo has a pretty spot-on idea of how business leaders are made and he shared them with Small Business magazine recently.

Ugo offered the following 3 tips to wannabe business leaders:

• Involve people for the start
• Build a wide-angle view
• Know when to take a back-seat

Also, Ugo offers this specific advice:
“I like to be informal as a leader and like to be peer to peer when possible. I have a completely open door because I am here for long hours. I’m normally the first one in the door and almost the last to leave in the evening.”

He’s always accessible, but he’s also an example to those around him. Perhaps it’s true that business leaders are born and not made, but you can learn a lot from Ugo’s career trajectory and the success he has enjoyed.

We’re firm believers that you can’t get enough good advice when you’re making the decision to buy a franchise. Many people have different perspectives on the best way to do it, and we’re happy to pass on the soundest wisdom so that you can take it all on board before making that big investment.

Don Saszkowski does a credible job keep on top of the most important issues in franchising over at About.com, and recently he invited Richard Parker, president of the Diomo Center to write a franchises.about.com/od/buyingafranchise/a/buy-an-existing-franchise.htm”>guest post with questions every entrepreneur should ask themselves before buying a franchise.

Here are some of the questions that we thought were the most illuminating:

On the franchise:

• Is your territory protected and for how long and what area?
• Are you required to meet certain annual sales figures and what happens if you don’t?
• Are there any family members working in the business? If so, how much are they paid (usually below market)? What additional expenses will you now incur to replace them?
• What is the failure rate in the system?

On the franchisor:

• Are they willing to finance the purchase?
• If you have to sign a new contract, you need to carefully analyze any issues that could impact your sales and/or profitability. If for example the royalty rate and marketing fund has increased, then you will make less profit. You have to then adjust the numbers the seller has given you to accommodates these ratios.
• Find out which are the best franchises in the system and call/visit with the owners. Ask them what they do best, the advice they would give you, and discuss the store you are considering but never disclose which one it is.

Ask yourself all of these questions. You’ll find more advice in franchise Direct’s ‘ franchise buying franchisedirect.com/information/guidetobuyingafranchise/29/”>guide.

Consider all of this before investing in a franchise and it’s likely you’ll be buying into a business you can trust.

“As McDonald’s goes, so to does franchising.” This might be an extreme overstatement, but nonetheless, the Golden Arches has had such a defining role in the evolution of franchising that many entrepreneurs and analysts will use it as a bellwether for how the industry is faring as a whole.

Those insiders will be have taken positive news from the McDonald’s recent gathering for analysts and journalists at its corporate headquarters in Illinois last week. According to the Wall Street Journal, the attitude of the McDonald’s corporate executive was typically bullish, with the company extremely optimistic about the way it has positioned itself for the time beyond the recession.

“This is also as much about changing the perception of our brand in the consumer’s mind that allows us to stretch both the price and products you can serve in a re-imaged restaurant,” McDonald’s Chief Financial Officer Peter Bensen said.

The confidence is a direct result of the investment in new stores and technology, as well as the unveiling of popular new products.

Restaurant profits are down in the last year across the industry, but McDonald’s market share has remained steady. The WSJ reports that some of the products coming down the pipeline are new wraps, smoothies and frappes and possibly a $1 breakfast menu. Clearly the challenge for McDonald’s, and indeed everyone in the QSR sector, is balancing the surge in consumer frugality brought on by the recession with the constant demand for a high-quality product.

As the year goes on, McDonald’s seem like they’re in a great position to retain the top ranking in franchise Direct second franchisedirect.com/top100globalfranchises/”>Top 100 Global franchises.

The Filta Group, established in the United Kingdom in 1996, has been making waves in the food service industry for over a decade with its radical and money saving approach to waste oil and fryer management under the FiltaFry name.  Ranked in the Franchise Times list of America’s fastest growing franchises for three years running, it’s no surprise that this company is garnering a lot of positive attention.  With the addition of a whole new FiltaCool commercial refrigeration service in 2008, this company is showing some remarkable product development that mirrors its growth in the marketplace.  This marked growth, coupled with the ease of running a Filta mobile franchise, makes the Filta Group an alluring prospect for investors looking to start up their own franchise.

What is Filta?

Filta is the ultimate in van based mobile franchising.  Filta franchisees offer two great services, FiltaFry and FiltaCool, both of which are performed on site at their customers’ establishments.  These eco-friendly services are designed to improve efficiency and safety in the kitchen, reduce waste and dramatically cut costs for Filta users.

FiltaFry

FiltaFry, the original service which made Filta such an acclaimed success in the food service industry, offers a complete system of cooking oil and fryer management.  Filta operators make scheduled weekly visits to restaurants and other commercial kitchens to micro-filter fryer oil and maintain fryers.  The advanced filtration system removes 99% of contaminants from oils, doubling its usable life so that kitchens use only half as much oil in their fryers.  FiltaFry technicians also clean and maintain fryers, keeping them running at optimum efficiency, reducing energy usage and creating a safer work environment for the business’s employees.

FiltaCool

The newly introduced FiltaCool products bring all of the improved efficiency and savings of FiltaFry to a business’s refrigeration system.  FiltaCool filters are inexpensive and take up essentially no space in a cooler unit.  However, these filters do make a big difference.  By regulating the internal environment of a refrigeration unit, these filters prolong the life of perishable goods, increase equipment performance and reduce wear and tear on coolers.  As a result, kitchens save money on costly repairs and drastically reduce their monetary losses due to spoilage and waste.

The Filta Franchise

Filta franchises are easy to learn and easy to run.  Even with no prior experience in the field, Filta’s impressive series of classes and in-field training can turn a new owner from uninformed layman to competent fryer and cooler aficionado in just a few short weeks.  Because the business offers mobile, on-site services, it can easily be run from an owners home, making it an appealing option for would be owners who don’t have a lot of money to invest.  Not only does Filta offer low start-up costs and assistance with financing, the entire franchise operates at a very low overhead, making it easy to maintain.
The FiltaFry and FiltaCool services are both eco-friendly, making them very attractive to customers in today’s market.  Filta is so good at eliminating waste and inefficiency that in most cases the service actually pays for itself.  This makes Filta highly marketable in the food service industry and an attractive business option for those looking to start a profitable trade.

You may have been considering buying a franchise as a sound business investment in your financial future. This choice comes with many questions and there is quite alot of information out there to be found about what sort of franchise you’d like to have as well as what needs to be done to get yours up and running smoothly and efficiently. Being able to look at some of the insider secrets is a great way to find out if the world of franchise ownership is in fact for you. We’ll take a look at how one company is encouraging franchisees to make the very most of their businesses and what they’ve done to succeed.

A Widely Used Service

Filtafry franchises have been going strong since the beginning in 1996. First formed in the UK, the business found that it was soon growing too big and decided to begin franchising. From the start, something was clear- this was a service many people really could use. But what is that service? Think about the food you eat. Now, think about all of the restaurants and places of business that supply that food and what do they all have in common? That’s right, they all use oil for the fryers to make the food that they serve. On a weekly and sometimes biweekly basis, those fryers need a good cleaning and maintenance, and then, the used up oil has to go somewhere. Well, Filtafry franchise owners take care of this problem. So, the key to the business is basically in how valuable the service actually is. Building a client base is as easy as a one hour demonstration showing how much more efficient it is to utilize Filtafry’s microfiltration system and then, have the technician cart away the waste.

A Name That is Trusted

Many huge names in hospitality are already in on the secret that you as a potential franchisee may be just starting to come around to. Remember those restaurants you thought about in the last paragraph? Which names spring to mind? Dunkin Donuts, Applebees, Emory School of Medicine, Ruth’s Chris Steakhouse, and Holiday Inn are just a few of the well known names that already rely on the trustworthiness of the Filtafry name- so why shouldn’t you? Having a name that is known, respected and trusted backing you is one more way that helps to balance the scales in favor of your success with a Filtafry franchise. Not only that, look around, even in the initial presentations from the Filta Group when you’re looking around for information- their success stories speak for themselves and give you an inside peak at what may be in store for you.

Once you bring your own brand of passion and drive to the table, and a willingness to really give it your all, you will find that a Filtafry franchise just may be the step towards that financial stability you have been hoping to find. With continual support and training, a Filtafry franchise really is a wise choice in your financial future.