World Franchising
July 2007 Newsletter
 
2007 "How Much Can I Make?" Publication Now Available!
 
 

An invaluable “insider’s guide” that details historical sales, expense and/or profit data on actual franchise operations as provided by the franchisors themselves, the 2007 Edition of "How Much Can I Make?" contains 106 earnings claims of major franchisors from 2006 UFOCs. Specifically, "How Much Can I Make?" contains the Item 19s of:

To order a copy of the 2007 Edition of "How Much Can I Make?", click here.

 
 
FREE Franchisee Satisfaction Reports
 
Source Book Publications is providing Franchisee Satisfaction Reports -- i.e., the uncensored opinions and experiences of franchisees -- free of charge. Simply click here and specify the report you'd like to order. Within minutes, a Source Book Publications representative will email you a link allowing you to download your invaluable report.
 
 
2007 Bond's Franchise Guide Industry Statistics
 

The 2007 Edition of Bond's Franchise Guide is due to come out within the month! Click on the links below to take a sneak peek at the new Industry Statistics:

To pre-order a copy of The Guide, call Source Book Publications at (510) 839-5471.

 
 
Earnings Claim Hall of Fame: It's A Grind
 

Source Book Publications has long argued (with very modest success) that all franchisors should be required to submit an earnings claim statement (Item 19) in their UFOC. Given that submission of an Item 19 is entirely voluntary, only 20% of franchisors choose to do so. The reasons for non-submission range from the ludicrous to vaguely plausible.

To us, it seems entirely one-sided to ask a prospective franchisee to invest in excess of $200,000 (on average) to “buy” a franchise without providing him or her with a clear understanding what he or she might earn from the investment. Although there are numerous variables that preclude franchisors from coming up with an exact projection of future Net Operating Income, the franchisors clearly have the ability to determine the historical sales and related expenses for operating units currently within their system. At a minimum, they can work backwards from royalty payments to come up with a gross sales figure. To the extent that they closely monitor and support their franchisees, they should have a good sense of average operating costs as well. Given this information and the latitude they have to provide as much detail as they see fit, they can break out summary operating data for those franchisees or company-owned units that have been around for say 5 years, 10 years, etc.

Our sense is that the FTC will ultimately acknowledge the need for a mandatory Item 19. Given the difficulty from industry to industry to provide a workable template for the submission of information, the FTC will continue to allow franchisors to provide as much or as little information as they deem necessary. Those franchisors that do in fact provide real, in-depth information will clearly enjoy a competitive advantage over those that do not. At any rate, those franchisors that go to the trouble of including an Item 19, even if only cursory, should be acknowledged and applauded.

As an on-going feature of future newsletters, World Franchising will publish an exemplary Item 19 each month. This month, we honor It's A Grind for the exceptional detail that they provide in their Item 19. My guess is that the rapid growth and success of their system has a great deal to do with the forthrightness with which they celebrate the success of their existing franchisees. To view their Item 19, please click here.

Those companies who feel they provide exceptional disclosure in their Item 19s are free to submit their Item 19 electronically for consideration in subsequent newsletters.

 
 
Industry Focus: Personal Care Franchises
 
Members of the notable baby boomer generation are currently approaching their sixties, which, in the franchising world, translates to big bucks for companies specializing in anti-aging remedies. Read on to find out which "Personal Care" franchises -- that is, those offering laser, skin-care, med-spa, massage and tanning services -- are surviving and thriving.
 
 
Source Book Publications Video Feature

Prompted by the increasing importance of Web 2.0 media and the desire to keep all of us from becoming too serious, we thought we would add a monthly feature that highlights an incredible new on-line video each month.

To view this month's video, click here.

 
 
Source Book Publications
1814 Franklin St., Suite 815, Oakland, CA 94612

(510) 839-5471; Fax (510) 839-2104; www.worldfranchising.com

In This Issue
2007 "How Much Can I Make?" Publication
FREE Franchisee Satisfaction Reports
2007 Bond's Franchise Guide Industry Statistics
Earnings Claim Hall of Fame
Industry Focus
 
Franchise Spotlight



Express offers an opportunity to be successful with a proven business model. Our owner-operator model lets you create your own definition of success by designing what engages and excites you. This business-to-business franchise with weekday operating hours and no out-of-town travel has four service lines in one agreement.


Now in its 11th year of business, WSI is the world's leading internet services franchise with 1500 franchisees in 87 countries! You can be part of this successful franchise and profit from the Internet! Own the #1 rated internet franchise. Proven business system. Comprehensive training and support is provided. Home- or office-based. Complete training and support. The WSI Formula is simple: Successful Franchise Owners + Successful Clients - Successful Franchise Opportunity.



Comfort Keepers is the service leader with 95% client satisfaction. We provide non-medical, in-home care, such as companionship, meal preparation, light housekeeping, grocery and clothing shopping, grooming and assistance with recreational activities for the elderly and others who need assistance in daily living.


Sylvan is the leading provider of educational services to families, schools and industry. Sylvan services kindergarten through adult-levels from more than 1,200 Sylvan Learning Centers worldwide.


We're #1! Liberty Tax Service is the fastest-growing international tax service ever! In 10 years, Liberty Tax Service has grown to the size H&R Block and Jackson Hewitt took 13 and 15 years respectively to reach. There's a growing market of taxpayers, and approximately 63% of them outsource the tax preparation task to paid professionals. Liberty's growth is fueled by a proven operating system that has been fine-tuned by the leadership and field support staff's 500 total years of experience. Founder/CEO John Hewitt has worked 38 tax seasons, including 12 years with H&R Block. Accounting Today magazine has named Hewitt one of the accounting profession's top 100 most influential people for 6 consecutive years. The International Franchise Associate has honored Hewitt as its "Entrepreneur of the Year." No prior tax experience is required to put this proven system to work.