As time progresses and the owner becomes more confident in his or her ability to effectively manage the business and as the franchise becomes stable and well entrenched in the community, the ongoing cost of being a franchisee may seem less worthwhile.  The role of the franchising organization may lessen, but the royalties due do not.  However, once contractually committed to a franchising organization, extraction is not always a simple or inexpensive matter.  Therefore, it is much better that anyone considering becoming a franchise owner understand the long term implications of entering into a franchising contract as well as having a clear idea of just what the ongoing costs are really paying for.

The Reality of Royalties

It is in the best interest of any franchisor to make sure that its franchisees are well equipped to successfully own and operate a franchise under the brand name.  That being the case, many franchisors take a hands-on approach to establishing new franchises and offer a lot of direct interaction.  Many franchisors will provide training and support, especially during the start-up stage and the first few crucial years.

All franchisors collect royalty fees from their franchisees.  Though the percentage varies from company to company, ongoing royalty fees are something that every franchisee faces.  During that initial period of heavy franchisor involvement, it can be easy to fall into the mindset that those royalty fees are paying for an ongoing level of similar support.

In many cases the franchisor will indeed continue to offer a high degree of support.  However, if the franchise owner begins to view that support as something that is due him or her because of the royalties he or she pays, then that owner may become sorely disappointed.

The truth is, the ongoing royalty fees are simply compensation to the parent company for continuing use of its name and business model.  Anything else provided by the franchisor will either be provided by contractual agreement or by fees assessed as other than those labeled as royalties.

Other Fees
To help minimize confusion on this matter, and to protect themselves, most franchisors itemize the fees that will be assessed.  It behooves any potential owner to understand what fees their franchisor will collect prior to entering into an agreement.  There may be additional ongoing fees to cover marketing, support and other facets of franchisor involvement.
It falls to the franchisee to decide if the fees assessed by the franchisor are reasonable.  A wise investor will try to think 5 to 10 years into the future.  If he or she can picture viewing those ongoing fees as more of a burden than the value they will provide, then he or she would do well to reconsider committing to that franchisor.

The concept behind the use of waste oil in vehicles is not a particularly complex one.  The process is relatively inexpensive to the motorist, and is fairly simple to maintain, adding to its appeal and growing popularity.  The general concept involves making very slight modification to an existing diesel engine allowing it to run on filtered waste cooking oils rather than on traditional fuel.

From an environmental perspective, waste oils burn cleaner and drastically reduce the carbon footprint of the motorist.  From the restaurateur’s  perspective, this is trend is a great boon in the day-to-day operation of the restaurant business.  These environmentally and economically sensitive motorists have the potential to alleviate or even completely remove the cost of waste oil disposal.

The best part is, there is absolutely nothing required on the restaurant owner’s end.  All of the work in filtering and processing the waste oil for use is done by the motorist.  All the restaurant owner need do is conduct business in a normal manner and give the desiring motorist permission to siphon oil from the waste bins.

The intrepid entrepreneur can turn this arrangement even more to his advantage.  Many of these environmentally conscious motorists are quite proud of what they are doing (at reasonably so) and are more than willing to proclaim their bold venture into environmentalism.  As such, a smart restaurant owner will attract these motorists to their business, either via advertisement or marquee letting these environmentalists know that the owner supports and is willing to assist them in their cause.

Once these connections have been established they can be used to make a bold marketing campaign for the restaurant.  Most, if not all, of these motorists will be more than willing to decorate their vehicle with a bumper sticker or magnetic decal in exchange for free waste fuel.  Imagine the impact and the statement made by a vehicle sporting a vivid decal decrying “This vehicle is powered by waste oil from Joe’s Restaurant”.   Not only is the restaurant name being shown all around town by this intrepid motorist, but the owner is getting out the message that he cares about the environment and the community.
Waste oil can be used to make a very  powerful statement for a very nominal price.  Not only can an ingenious owner avoid the costs associated with oil removal, but can do so in a conscientious way.  As an added bonus,  with a minimal effort he can turn that waste to his advantage as a marketing tool.

Have additional franchising questions? Get more franchise information with a real business example at<a href=”http://filtafryfranchise.info”> Filta Fry </a>.  Additionally, you can get more information about an emerging franchise by going to <a href=”
http://ezinearticles.com/?Filta-Franchise—Learning-From-Your-Experiences&id=3138009″> filtafry</a>.

Use a Net

No, we are not advocating snaring new clients by force.  We mean Filta’s quality online intranet, the FiltaNet.  This expansive online resource not only provides a wealth of practical advice and information, but provides a means for you to connect with other Filta owners.  There is no substitution for practical experience gained in the field.  However, there is no need to gain that experience on your own when you can just as easily learn from that of others.

On FiltaNet you can discuss potential clients with other owners who have had dealings with other members of the same franchising organization.  You can find out what has worked (or hasn’t worked) for others in the past.  You can gain insight into the specific needs of the business you are dealing with, so that you can custom tailor your pitch to provoke a positive reception to your Filta services.  With FiltaNet you are never alone in your efforts to grow you business.  You can rely on the strong support of a vast network of experienced and successful Filta owners to help guide you in strengthening and expanding your own business.

Pick Up the Phone

During the early stages of your business you had the guidance and support of your in-field trainer, as well as the assistance of your Business Development Manager in pitching your services to new clients.  Though it may have been reassuring to have your BDM holding your hand on calls and ensuring that you had a healthy repeat business base to start out with, there is no need to feel that you are in it alone now.  Filta remains dedicated to helping you grow your business and is available with further assistance and support any time through their toll-free number.  If you are feeling lost, or need some pointers on how to market you business better then help is just a phone call away.

Develop Yourself

Always remember that this is your business.  You are a part of it, the most vital ingredient in fact.  You can’t hope to grow your business without growing yourself in the process.  Make developing your demonstration pitches a part of your plan for business growth.  Push yourself to develop better presentation and speaking skills.  Nevertheless, don’t be afraid to ask for help.  Filta wants you to succeed with your Filta franchise and has given you a great support structure to lean on.  Use it as you strive to improve your marketing techniques.

This really is that good.

As a Filta franchisee, you’re entire business hinges on mobility.  You are in your van and on the road every day, traversing the entirety of your territory and burning up the gasoline.  We are quickly entering into the time of year where gas prices are going to edge up and up and up.  Every penny increase at the pump eats away at your profits.  Meantime, every day you are hauling away pounds of a potential fuel source from the businesses you service, probably without giving it a second thought.  However, one savvy Filta owner, Richard Hamilton of Little Rock, AR, realized that what he was removing from fryers wasn’t waste oil, it was liquid gold.  His innovative solution to rising fuel costs is something that could revolutionize your Filta franchise.

Richard’s Revelation

There is a newly growing trend amongst conservationist in the area of biofuels.  Still relatively unknown to the general public, but rapidly gaining attention, is the ability to convert diesel engines to run on waste oil.  That’s right, the same oils you dispose of for you clients can be used to power your Filta van.  That is just what Richard Hamilton did.  He bought a diesel van for his franchise and converted it to run on the very same waste oil that he gets paid to remove from the restaurants in his territory.  While most of us pay out the nose to keep our vehicles gassed up, Richard is getting paid to fuel his.

What is Biodiesel Conversion

The premise of using waste oil to fuel diesel engine is not a new one.  Diesel engines were actually originally designed with such a use in mind.  However, pressures from petroleum manufacturers and other factors switched the emphasis over to what we now consider traditional fuels.  Nevertheless, the capabilities of diesel engines to run on vegetable oils is still there.  It take only a slight reworking of the fuel system to take advantage of this.
It works like this.  You use a secondary tank in your vehicle to house your filtered waste oil supply (which you filter through a simple process on your own property).  Your vehicle can then be fitted with a switch allowing you to transfer from your regular diesel fuel tank to the waste oil tank.  This is necessary because cold waste oil is too thick to be used for ignition.  You have to start and stop your vehicle on diesel fuel, but during actual travel, it’s all locomotion via free fuel.

The Cost

You may be thinking to yourself, “That’s an interesting idea, but it sounds complicated and expensive.”  The fact of the matter is quite the opposite.  Shops that can do the conversion are becoming more accessible all the time, and the cost of having a diesel vehicle converted ranges around $2k-4k.  However, the process is so simple to do that anyone with a reasonable level of automotive knowledge and technical skill can get a kit for $1.5k-2.5k and do the conversion themselves.  A quick look at your fuel costs will quickly show that the conversion will pay for itself in no time at all.  After that, you’ll be making money while you make money.  It really is a win-win situation.

You know that you are offering services that can help save these businesses money.  So how do you get past the initial wall of unreceptive mentality so that you can convey the benefits of using FiltaFry and FiltaCool to help eliminate waste and cut cost in their businesses?  Let’s look at some ways you can change your approach and improve your chances of landing those new clients even in a suffering economy.

Focus on Savings

While there is a big trend toward environmental conscientious business practices, when the economy is lagging business owners are not nearly as concerned with putting on a good public image as they are with just maintaining their profits.  As such, now is not the best time to lead in with how eco-friendly FiltaFry and FiltaCool products and services are.  This isn’t to say that these aspects shouldn’t be mentioned, but shift the focus away from the environmental aspect and lead in with cold, hard facts and figures as to how Filta can save the business money immediately.
You will get a lot further if you start your pitch with mentioning how FiltaFry can reduce their cooking oil cost by half, while simultaneously reducing their energy usage and decreasing their liability for work related injuries.  If the business is a likely candidate for FiltaCool filters, mention rising food costs and how your filters can reduce the amount of produce and other perishables that they have to discard by 10% or more, while also extending the life of their cooler, reducing maintenance costs and energy bills.

Be Conversational

If you are used to delivering your pitch by rote, learn to be a bit more flexible in your approach.  Rather than launch directly into the pitch, try to engage the owner or manager in conversation.  Ask questions about how much they typically spend on cooking oil, and on their perishable foodstuffs.  If you can get them talking about costs, then you provide yourself the perfect opportunity to demonstrate how your service will benefit them in a way that strikes right at the heart of their greatest concern – maintaining the profitability of their business.

Don’t Take No for an Answer

While you can’t win anyone over by being pushy, you also won’t get far if you aren’t willing to assert yourself.  Chances are that 4 out of 5 times you are going to get a “no” at first.  Don’t get discouraged.  Try to get the owner or manager talking so you can at least tell them about the savings benefits of your services.  Again, come at them with figures and always insist on giving them a free demonstration.  The benefits of using FiltaFry and FiltaCool are obvious and in most cases a simple demonstration of their effectiveness is all that is needed to change the opinion of even the hardest skeptic.