Unemployment and franchising
Unemployment and franchising
The above statement is clearly not good news for those affected by the job losses announced. However, many people who have dreamed of going into business have often not done so because of the allure of job security. The removal of this security can be just the boost needed for people to take the step into self empowered franchise business building.
In response to this franchise brands are thinking creatively how to recruit and support their franchisees during the current downturn. For example news out fo America via the Wall Street Journal comments that Dominos Pizza Inc is considering making loans available to its franchisees. This will allow franchisees to gain access to capital and not suffer from the limiting affects of the credit crunch in the US economy.
"Domino's Pizza Inc. discussed how its borrowing capacity has been hampered by Lehman Brothers Holdings Inc.'s bankruptcy filing. With the credit crunch weighing heavily on the restaurant industry, Domino's said it will save its cash and potentially make loans directly to its franchisees.
Interestingly Yum! brands which owns Pizza Hut, KFC and other brands is looking to its franchise ownership programme to right its decline in sales performance.
According to Reuters, "Yum! Brands will eliminate hundreds of corporate jobs as part of an ambitious re-franchising program. The company, which posted a 16% drop in U.S. operating profit for the third quarter, plans to cut its ownership of Pizza Hut and KFC units to 10%
So why do businesses focus on franchising?
Franchisees can often be highly motivated. Owning a franchise outlet means that you personally invest into the franchise brand and build your outlet as your own business in the system of the brand. Because of this fact most franchisees work long hours enthusiastically and are very focused on customer care. This in turn yields results in terms of happy customers, recommendations and strong repeat business. This drives positive and growing revenues for franchisees and franchisor alike.
Additionally franchisee ownership removes the capital burden from the owner company. The alleviation of capital cost via franchise ownership helps the owner company by lowering its operating costs and need to access cash for working capital and growth. The risk is spread and the benefits of operating the brand is shared via good franchising.
Unemployment and franchising - To learn more about this author, visit Nick Strong's Website.
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USbank Citigroup announced plans for up to 75,000 job cuts worldwide, up from a previously announced total of 23,000. Citigroup said in a statement that the cuts represented a reduction of about 20% of its staff, leaving the bank with 300,000 jobs worldwide. The cuts will come from redundancies, the sale of units and natural wastage, the bank said.
The above statement is clearly not good news for those affected by the job losses announced. However, many people who have dreamed of going into business have often not done so because of the allure of job security. The removal of this security can be just the boost needed for people to take the step into self empowered franchise business building.
In response to this franchise brands are thinking creatively how to recruit and support their franchisees during the current downturn. For example news out fo America via the Wall Street Journal comments that Dominos Pizza Inc is considering making loans available to its franchisees. This will allow franchisees to gain access to capital and not suffer from the limiting affects of the credit crunch in the US economy.
"Domino's Pizza Inc. discussed how its borrowing capacity has been hampered by Lehman Brothers Holdings Inc.'s bankruptcy filing. With the credit crunch weighing heavily on the restaurant industry, Domino's said it will save its cash and potentially make loans directly to its franchisees.
Interestingly Yum! brands which owns Pizza Hut, KFC and other brands is looking to its franchise ownership programme to right its decline in sales performance.
According to Reuters, "Yum! Brands will eliminate hundreds of corporate jobs as part of an ambitious re-franchising program. The company, which posted a 16% drop in U.S. operating profit for the third quarter, plans to cut its ownership of Pizza Hut and KFC units to 10%
So why do businesses focus on franchising?
Franchisees can often be highly motivated. Owning a franchise outlet means that you personally invest into the franchise brand and build your outlet as your own business in the system of the brand. Because of this fact most franchisees work long hours enthusiastically and are very focused on customer care. This in turn yields results in terms of happy customers, recommendations and strong repeat business. This drives positive and growing revenues for franchisees and franchisor alike.
Additionally franchisee ownership removes the capital burden from the owner company. The alleviation of capital cost via franchise ownership helps the owner company by lowering its operating costs and need to access cash for working capital and growth. The risk is spread and the benefits of operating the brand is shared via good franchising.
Unemployment and franchising - To learn more about this author, visit Nick Strong's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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