World Franchising
August 2007 Newsletter
 
2007 Bond's Franchise Guide Publication Now Available!
 
 

The 2007 edition of the definitive and most comprehensive franchising directory available has just been published! Bond's Franchise Guide contains over 1,000 detailed franchisor profiles resulting from an exhaustive 40-point, 3-page questionnaire that are sorted into 45 distinct business categories. The data contained in the Guide represents the most up-to-date, comprehensive and reliable information about this dynamic industry. The profiles detail:

• Background — number of operating units, geographic distribution and detailed description of the business.
• Capital requirements — initial cash investment and total investment, on-going royalty and advertising fees, staffing levels, space needs, etc.
• Initial training and start-up assistance provided, as well as on-going services.
• Franchisee evaluation criteria.
• Specific areas of geographic expansion: U.S., Canada and International.
• And much more ...

To order a copy of the 2007 Edition of Bond's Franchise Guide, click here.

 
 
Lead Generation Reporter
 
Which franchisors advertise online?
 
Which sites do they advertise with?
 

The Lead Generation Reporter™ is a monthly report designed to help franchisors maximize the effectiveness of their advertising dollars. The initial Reporter™ covers a total of 2,487 franchisors and 20 popular lead generation sites and consists of the following six reports:

Report 1: Where Individual Franchisors Advertise Online
— Lists the key lead generation sites on which individual franchisors advertise
Report 2
: Franchisors Advertising On Individual Lead Generation Websites — Lists all of the franchisors advertising on a particular lead generation website
Report 3: Top 15 Franchisors With Heaviest Exposure (Premium & Standard)
— A Premium Listing carries twice the weight of a Standard Listing in total
Report 4: Top 15 Franchisors With Widest Exposure (Premium & Standard)
— A Premium Listing carries the same weight as a Standard Listing in total
Report 5: Top 15 Franchisors With Highest Premium Listing Exposure Only
— Premium Listings are counted in this total
Report 6: Total Number of Franchisors Listed on Individual Lead Generation Websites
— Totals the number of franchisors listed on each lead generation website.

For more information, please visit www.leadgenerationreport.com.
 
 
Earnings Claim Hall of Fame: V2K Window Decor & More
 

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 V2K Window Decor & More 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: Home Safety Franchises
 
When it comes to assessing the relative importance of basic domestic needs, safety and security trump nearly all the cards. It therefore should come as no surprise that home safety franchises are experiencing ever-increasing popularity. Read on to learn about specific franchise opportunities in this successful industry.
 
 
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 440, Oakland, CA 94612

(800) 841-0873; (510) 839-5471; Fax (510) 839-2104; www.worldfranchising.com

In This Issue
2007 Bond's Franchise Guide Publication
Lead Generation Reporter
Earnings Claim Hall of Fame
Industry Focus
 
Franchise Spotlight

Carlson Hotels Worldwide is one of the world's major hotel companies, encompassing five brands and operating in more than 936 locations in 69 countries. Brands include: Regent International Hotels, Radisson Hotels & Resorts, Park Plaza Hotels & Resorts, Country Inns & Suites by Carlson, and Park Inn Hotels. These operations include most of the major segments in the hotel industry, ranging from luxury to limited service.


Accor Hotels is one of the largest owner/operators of economy lodging in the United States. Accor North America is a division of Accor, with 168,000 people in 140 countries, employing approximately 690 people at the corporate offices including the call centers. Approximately 13,000 are employed at Motel 6 and Studio 6 combined.


The RE/MAX real estate franchise network, now in its 33rd year of consecutive growth, is a global system of more than 5,455 offices worldwide, engaging more than 116,800 members. RE/MAX sales associates lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management. For more information visit www.remax.com.


Realogy Corporation is one of the preeminent and most integrated providers of real estate and relocation services in the world, with leading real estate brands, brokerages, relocation services and title and settlement services. Beginning with the acquisition of Century 21 Real Estate Corporation in 1995, and expanding through subsequent acquisitions and organic growth, Realogy today stands as a leader in the residential real estate industry, with operations dispersed throughout the United States and around the world.


Papa John's International, headquartered in Louisville, KY., is the world's third-largest pizza company, owning and franchising approximately 3,000 restaurants in 49 states and 22 countries. For six years running, consumers have rated Papa John's #1 in customer satisfaction among all national Quick Service Restaurant (QSR) chains in the highly regarded American Customer Satisfaction Index (ACSAI).