World Franchising
October 2007 Newsletter
 
How Trustworthy Is Alexa?
 
 

Alexa is quite possibly the hottest new fad on the web. By computing web traffic rankings, the program provides valuable information regarding the popularity of various websites.

But how valuable are those rankings, really?

While the concept driving Alexa is inarguably compelling, the methodology behind that concept is hardly foolproof. Studies have shown that it is relatively easy for websites to “game” Alexa and thus “achieve” higher ratings.

To read about “gaming” Alexa, click here.

 
 
Introducing the Web Traffic Rankings Report
 
NEW FEATURE IN THE LEAD GENERATION REPORTER ™
 

Aware that Alexa Rankings are being increasingly referenced as a means of determining a website's popularity, Source Book Publications has decided to include a new feature in the monthly Lead Generation Reporter - the Web Traffic Rankings Report. The Report ranks every website featured in the Reporter according to Alexa's numerical score. In combination with Who Advertises Where Online? and the Search Engine Rankings Report, the Web Traffic Rankings Report provides invaluable information about your industry competitors, whether you are a franchisor or a lead generation company.

You can download a sample Web Traffic Rankings Report here.

Please click here to learn more about the Lead Generation Reporter

 
 
Search Engine Rankings Report Update!
 

The Lead Generation Reporter Search Engine Rankings Report now includes an official overall ranking per site! The official ranking is based on a score derived from individual keyword rankings per search engine.

You can download a sample Search Engine Rankings Report here.

To subscribe to the monthly Lead Generation Reporter ™, please click here.

 
 
FranchisingURLs.com Domain Names/URLs Going Fast!
 
In the past week - no more than two weeks since the launch of the FranchisingURLs.com project - Source Book Publications has sold four URLs: FranchiseEquity.com, FranchisingOfficer.com, FranchisingData.com and Franchising.org. As you can see, it's the popular ones that go first - and believe me, you don't want to miss out!
 
To browse the complete list of domain names/URLs (Uniform Resource Locators) that are available for sale, please visit www.FranchisingURLs.com. In addition, we have set up separate lists that are specifically appropriate for New Lead Generation Sites, Attorney Sites and Lender Sites. Lastly, for those companies that wish for a turn-key Lead Generation portal site that includes numerous and specific sub-industry categories, we have cobbled together numerous URLs that would provide exceptional domain names for the “Best Franchises” (includes 29 separate URLs that start with Best, as well as 31 separate URLs that start with Best-Franchises) and numerous URLs that would provide exceptional doman names for the “Great Franchises" (includes 34 separate URLs that start with Great).
 

If, after looking at the listing, you have any questions, please contact Christine Kimmel at (800) 841-0873.

 
 
Earnings Claim Hall of Fame: Papa Gino's
 

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 Papa Gino's 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.

 
 
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
How Trustworthy Is Alexa?
New Feature in the Lead Generation Reporter!
Search Engine Rankings Report Update
FranchisingURLs.com URLs Going Fast!
Earnings Claim Hall of Fame
 
Franchise Spotlight

Established in 1970, Mr. Rooter is the largest all-franchised, full-service plumbing and drain cleaning company in the world with approximately 300 franchises worldwide. Recognized by Entrepreneur magazine among its "Franchise 500" and Franchise Times Top 200, Mr. Rooter franchisees provide services to both residential and commercial customers. Mr. Rooter began franchising in 1974 and is part of The Dwyer Group family of companies, which also includes Rainbow International, Aire Serv, Mr. Electric, Mr. Appliance, and Glass Doctor.

Taco Bell has been the world's largest Mexican quick-service franchise for the past 38 years.

The Athlete's Foot, with more than 600 stores in 45 countries, is the leading international franchisor of name-brand athletic footwear. As a franchisee, you will benefit from headquarters' support, including training, advertising, real estate and product selection.

Domino's Pizza is the recognized world leader in pizza delivery, with more than 43 years of experience. We operate a network of more than 7,000 stores in the US and 50 countries around the world.

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.

 

Attention Franchisors!

Please take the time to examine your WorldFranchising.com online profile and make sure that all your company information is correct. It would be to everyone's benefit if you were to keep your information as up-to-date as possible!

If you would like to make modifications to your online listing, please print out your online profile, mark any desired changes, and fax the marked up copy back to us at (510) 839-2104.

Thank you!