What Criteria the Emerging Franchise Business Needs To Meet

July 17, 2018

For beginners or those who do not want to take high risks, franchise business is still one of the most promising options. The franchisees just need to follow an established system. McDonald’s and Starbucks are among the most popular franchises in the United States and perhaps in the world. They have been available even in developing markets. The two franchises can bring the investors as well as the franchisees to success in short period.

How to Find the Next Franchise Business

However, experts said that the golden days for both McDonald’s and Starbucks are overs.  They have been under-performing during the last few years. Therefore, the growth investors should find alternative franchises business that can make them rich. However, how do they spot the next opportunities?

Related: Running Your First Franchise

The investors certainly need to consider some key metrics of promising franchises before making a decision. The following are some of them, as suggested on Forbes:

The Business Model

This refers to how the franchise enhances customer value and experience and how it deals with competition. The emerging franchise should be able to distinguish its business model from the rest of the industry. The best place to test the business model is, of course, the market itself. When the business model passes the test on the market, it has much opportunity to scale up.

After the market test, it is the time for the investors to expand the market reach, not only the domestic markets but also the overseas markets. Furthermore, the franchise will enjoy economies of scale, due to the savings obtained from the larger production size. Starbucks and McDonald’s had enjoyed success from the strategy. They immediately open new stores in its home as well as abroad after passing the market test.

Market Saturation

This refers to the degree of market penetration. Experts said that too many stores can be counterproductive for the franchise business. Too many stores can make the market saturated fast. The higher the degree of market penetration, less room is available for the business to grow. Dunkin Donuts and Chipotle have been using this strategy to survive.

Dunkin Donuts and Chipotle both have businesses, which have passed the market tests. Dunkin Donuts now has around 10.858 stores, while Chipotle has 2.250 stores. Compare them to the number of stored owned by McDonald’s (35.000 stores) and Starbucks (28.212 stores). As a result, Dunkin Donuts and Chipotle have more room to grow compared to that of McDonald’s and Starbucks.

It seems that declining performance of McDonald’s and Starbucks could be the results of their failure to anticipate the market saturation. When the market saturates fast, the franchise business has less room to innovate and to grow faster.

The Bottom Line

Therefore, how can the investor spot the next franchises to invest their money? The answer is finding emerging franchises that have market-tested business models and still have more room for growth. Unless it meets both criteria, the franchise will find it difficult to survive and beat the competition. Moreover, the investors are not interested with franchise business that does not have a promising future.

Source: FX Daily Report

Xponential Fitness to begin international expansion in the UK

April 30, 2018

US-based Xponential Fitness has revealed plans to take its portfolio of brands global through a master franchise strategy.

The company currently owns a number of franchised boutique brands, including Club Pilates, indoor cycling concept CycleBar”>CycleBar, indoor rowing business Row House and StretchLab, which offers personalised stretching services.

Xponential will kick off its global expansion in the UK this year, following a master franchise agreement with entrepreneur Oliver Chipp.

Chipp expects to open at least 30 CycleBar studios in UK over the next five years, with the first studio set to open in London by June 2018.

Xponential Fitness is led by a team of industry veterans who have experience of building fitness brands internationally.

Related: Fitness Franchises – Should You Buy a UK Fitness Franchise?

CEO Anthony Geisler developed LA Boxing into a successful boxing, kickboxing and mixed martial arts fitness concept, before selling it on.

John Kersh – who helped grow Anytime Fitness into a global business – has also joined the team as chief international development officer.

“What we’re creating at Xponential Fitness hasn’t been done before and there’s enormous consumer interest in boutique fitness across the globe that we intend to capitalise on,” said Kersh.

“We are launching our international expansion by bringing the CycleBar brand to the United Kingdom through a master franchise agreement and expect the UK to be the first of many successful international markets for Xponential Fitness.”

Xponential is backed by financial partner TPG Growth, a growth equity platform of alternative asset firm TPG.

Geisler said his long-term plan is to house the “best brands” in every vertical of the boutique fitness industry and cement continued growth both domestically and internationally for each concept.

“With our experienced corporate team helping master franchisees replicate our proven U.S. systems abroad, we offer international entrepreneurs the chance to successfully develop some of America’s hottest boutique fitness concepts all over the globe,” he said.

Source; Leisure Opportunities

Karina Jadhav To Give Keynote Presentation At The Northern Franchise Exhibition

April 28, 2018

Successful local entrepreneur to inspire those aiming to be their own boss at The Northern Franchise Exhibition on Friday 22 June at EventCity, Manchester.

Ambitions of business ownership and growth can be pursued at this popular event offering the opportunity to explore a wide spectrum of franchise opportunities, as well as a bounty of expert advice.

Karina Jadhav’s presentation on Friday 22 June will be a stand-out feature of the Growing Your Own Business conference. Co-located with the exhibition, the conference has a focus on business development and success, bringing audiences a combination of practical advice and motivation.

Karina is an independent female restaurant operator and owner, and she was voted Entrepreneur of the Year at the Manchester Downtown Women in Business Awards 2015.

She founded her current concept, Menagerie Restaurant & Bar, Manchester in August 2016 and is the former co-founder and creator of Neighbourhood, Victors Hale and Southern Eleven.

Having done extensive research into the latest dining trends and successes across Europe and the USA, Karina’s latest venture, Menagerie, boldly brings together gastronomy, art and performance to create a truly immersive dining experience for its guests.

In her keynote, ‘Causing a stir: standing out in a crowded industry’, Karina will discuss how she carved her own path in a male-dominated industry and turned her differences into her strengths. She’ll share the influences she took from forward thinkers from different industries and her “female” approach to management.

Karina comments: “I firmly believe that if you combine ambition with a rigorously researched concept and a robust business model, then you are on the path to business success. Franchising offers entrepreneurs an already proven concept and established business model ‘out of the box’. I look forward to inspiring my audience to channel their ambition and to pursue the business that is right for them.”

Karina’s presentation forms part of a comprehensive programme of 40 seminars, workshops and one-to-one consultations hosted within The Northern Franchise Exhibition. The two-day event taking place on 22 & 23 June boasts franchise opportunities across all investment levels and sectors.

Every brand exhibiting has been assessed and accredited by the British Franchise Association (bfa) and names include: Fitness Space, Expense Reduction Analysts, Little Dessert Shop, Merry Maids and Tutor Doctor.

The Northern Franchise Exhibition provides entrepreneurs with the perfect opportunity to access expert industry advice, and to perform essential research into franchising, all under one roof.