Filta Group Articles » Start up

Should You Go Multi Unit?

Brad Swanson — Wed, 03 Mar 2010 17:46:15 +0000

For some, one is never enough. Ambition comes very naturally to certain people and perhaps those same people have the funding to make things happen- and this is where multi unit franchising may be a really powerful tool for investing in a very profitable long term future. When you bring together someone who is gifted with ambition, resources and realistic expectations, you have someone who may really benefit from a multi unit franchise.

Understandably, not everyone is going to have a look into franchising and decide that they want to take on more than one territory, store, or location all at once- but some do. For those people, multi unit just makes more sense. Another group that sometimes considers multi unit franchise didn’t start out that way, but perhaps discovered the location that they found themselves in, the franchise they’d bought really worked out well, and from an economics standpoint- more locations equals more profits. The realist also says that it brings about more issues in management, staffing and overhead, but at the same time, for many, this is a risk that pays off in some big ways.

One of the best things to have going for you is in fact already being a franchisee with a given company, and having a great working relationship. The franchiser is the one that is going to be in your corner, particularly if you have been a success within their umbrella. More often than not, franchisers are very encouraging of this method of business because it does mean more profit, and usually they offer a wealth of resources to those seeking to expand.

Also, the relationship you have with your current supplier may take on a whole new light as more locations mean more volume of order- which often comes with some exceptionally nice discounts for higher quantity. Banks tend to favor second locations and more also, if the franchisee has an already established business that is turning a nice profit or a stable one.

A key thing to remember when thinking about going multi unit is that you have to be realistic and conservative. If you’ve got the capital to open more than one location at a time, you still need to be sure of many things- for instance, not every location is going to work out well and that can really cause financial distress on your entire system. This is where demographics and studies of the area are going to come in particularly useful as you will have to have a very clear understanding of the areas in which you plan to expand and what sort of profits you can realistically bring in from them.

Multi unit franchising may seem like a steep hill to climb for some, and for others it may be exactly what they seek out to grow. Depending on your long term goals, capital and the passion you have for your work, you may find that multi unit franchising is just the thing for you.

Basic Concepts in Franchising

Brad Swanson — Mon, 01 Mar 2010 17:45:08 +0000

Anyone looking to start up a business has probably at least considered the option of entering into a franchise arrangement with an already existing brand. If you are one of the many out there who are looking to explore available business options, but don’t know where to look first, then you probably have a lot of questions regarding just what franchising is all about. Understanding a few basic concepts about franchising can help you make an informed decision about your business options that is right for you.
First and foremost, let’s take a look at just what it is that is meant by franchising. When someone starts a franchise they pay for the use of an already existing brand name, product or service and business model. The company who has ownership of the existing patents on the brand name, product, service, etc. is referred to as the franchisor. The individual paying for use of these patents is the franchisee. The franchisee usually pays the franchisor a one-time start-up fee as well as ongoing royalty fees for use of the franchisors patented names, goods, services, etc.
To get a clear understanding of just what a franchise really is, one needs only think about some of the most popular fast-food chains, grocers and motels. McDonalds, Wal-Mart and Super 8 are all examples of businesses that are owned by individual investors but which operate under brand names controlled by franchisors. The very success of those entities listed above should shed some light onto why franchising is such an appealing option for people looking to start up a business.
There are a number of advantages that come along with franchising that are not available to those who chose to go into business for themselves on an independent basis. Franchisees enjoy the benefit of brand recognition, meaning that the public is generally already aware of what the franchisee’s business will be offering and often already have a positive view of the business. Independent business owners, on the other hand, have to work very hard over a number of years to establish that same level of trust with their customer base.
Franchisees also have the benefit of being able to work under a business plan that has already been proven to be effective. This eliminates a lot of the trial-and-error inherent in business ownership and can save the franchisee from making costly, even fatal (for the business) mistakes. In many ways, a new franchisee starts his or her business with an accumulated level of experience as if he or she had already been running the business for many years.
However, there is a cost for these benefits. Franchises are generally more expensive to start-up than their comparably sized independent counterparts. This is because, on top of the regular costs of finding location, purchasing supplies, etc., the franchisee must also pay a franchising fee to the franchisor. Franchisees must also give over a percentage of their revenue to the franchisor as a royalty fee for use of the franchisors name and other patented aspects. The franchisee may also be contractually obligated to pay regular fees for advertising and other services by the franchisor, regardless of whether the franchisee feels that those services are beneficial or useful.

Loans Extended Into The New Year

Brad Swanson — Thu, 28 Jan 2010 17:27:33 +0000

Originally slated to end with the new year itself, Congress has extended a number of Small Business Association loans. For the time being, they are only extended until February, but for any small business owner, including franchisees, this is great news. The loans themselves were created through last year’s Recovery Act and guarantee the SBA loans from seventy five percent to ninety percent- a move which is going to enable many to move forward when things were looking most dire in recent years. Many who had been placed on a waiting list are going to be able to get help that they had perhaps been afraid would not come, and many more may benefit from this as well.

The Recovery Act itself created a couple of provisions that were quite popular- but they are very temporary. There is talk about the House’s Jobs for Main Street Act, which was passed mid-December and will potentially extend the deadline until September. Tony Wilkinson, president of the National Association of Government Guaranteed Lenders in Stillwater, Oklahoma states that, “The conventional credit market will not near normal until sometime in 2011 because the typical small business will walk in with negative trends on his financial statement,” commenting on the recent issues amongst small business owners in regards to access to credit, “But that’s why the SBA programs are important, because lenders can say, ‘Hey, this is a survivor who will probably make it.’”

The program, which originally began in February of 2009 has already made a great deal of progress. Bringing $16.5 billion to small-business owners and brought more than 1,200 lenders back into SBA loan programs, the benefit is clear, but it is not without its downside. By Mid November, the funds were almost gone, and lenders began to react- approving as many loans as they could under the provisions. This lead to a lengthy waiting list which the extension seeks to remedy. The waiting list itself contained 1,069 small businesses, for a total of 530 million dollars in loans. Those people that felt that they’d missed the deadline and had been put on the waiting list can now breath a sigh of relief with this extension.

For many, these provisions are going to help in ways that are too numerous to count, but the implications on those seeking start up funding for small businesses and franchises are great. It does seem as though this is one of the programs that really shows potential for helping small business owners make it through the credit crunch and be able to give back to the economic cycle. A number of small business owners already helped by the provisions are working their way back to financial stability and if these funds prove beneficial- it seems that other such programs may be on the table for review as well. The extension also brings a bit of hope to that, because it does show that the government is taking into account the needs of small business owners, and their vast impact on both the local economies and on a national level.

Turn Waste Oil Into a Marketing Opportunity

Brad Swanson — Sat, 05 Dec 2009 20:02:18 +0000

All restaurant owners are familiar with the hassle and potential expense of disposing of their restaurants’ unwanted used cooking oils. However, many are unaware of a new trend that offers to alleviate this burden of restaurant ownership. In the face of rising gas prices and a push toward environmental consciousness, many motorists are turning to advancements in automobiles converted to run on waste oil as a solution. This growing trend offers an exciting prospect to restaurant owners. In fact, with a little bit of ingenuity and inventiveness, the advantage offered by the use of waste oils in vehicles can be expanded well beyond the realm of simply having a free means of waste oil disposal.

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 Filta Fry . Additionally, you can get more information about an emerging franchise by going to http://ezinearticles.com/?Filta-Franchise—Learning-From-Your-Experiences&id=3138009″> filtafry.

Franchising Considerations

Brad Swanson — Tue, 01 Dec 2009 19:23:51 +0000

While the allure and benefits of entering into a franchising arrangement are great, there are some considerations to make when deciding if operating a franchise is the right decision for the individual business owner. Placing oneself under the umbrella of a larger financial entity can help allay risk and offer a greater chance of success, but it also limits the autonomy of the business owner and is not without its own costs.

Financial considerations are the most obvious. The initial costs for starting a franchise can often exceed the costs of establishing an independent business. Beside the cost of building a business from the ground up, there are additional franchising fees that must be paid to the franchisor up front. Often a franchisor will expect the franchisee to start their business at a specific standard of operations, utilizing equipment or procedures that are more costly than if an independent business owner were to “start small” and work his/her way up.

Beyond the initial start-up costs and franchise fees a franchisee agrees to pay royalty payments for the use of the franchisor’s trademarks. This means that for the duration of the contract, for the life of business, a percentage of the franchise’s monthly gross goes to the franchisor. This reduces the overall profits of the franchisee and can be considered an additional operational expense that is not incurred by the independent business owner.

Some franchising contracts also stipulate that the franchisee pay a marketing fee to offset the cost incurred by the franchisor for marketing campaigns and market research. The costs to the franchisee for such marketing is usually substantially less than the cost of comparable advertising, if done by an independent business. However, the franchise operator has no say in how the marketing is conducted or how advertising funds are spent.

The narrow degree of creativity afforded the franchise owner is not
limited to the realm of advertising, either. All aspects of the franchised unit must conform to the overall scheme of the franchising business. Most franchisors have standards of appearance and presentation covering all aspects of the business from general site design, down to employee uniforms. There is little or no leeway for alterations or additions to the overall business or how it is conducted. In order to use the brand name an owner is contractually obligated to follow the brand’s established mode of operation.

Many franchise contracts also specify explicit sources for business supplies. These suppliers have been selected to insure a consistency in the ability to meet the demands and the quality standards of the franchise. While this alleviates the need of the owner to establish such sources independently, it also places a limit on flexibility. Such suppliers may not always be the cheapest or most convenient source of materials.

Further considerations to take into account when deciding if franchising is a viable business option center around the overall commitment that a franchise contract entails. Once agreed upon, an owner may find him/herself locked into a lengthy contractual obligation with a company that is not well suited to his/her individual business goals. Furthermore, an owner who is incautious in selecting a stable franchisor may find him/herself tethered to a sinking ship with little means of extraction.

It is important for a potential owner to approach the issue of franchising with clearly defined goals and expectations. While the benefits of operating a franchise are great, there are constraints that are not placed upon the independent business owner. It is important that any potential owner establish whether or not the benefits of franchising outweigh the limitation on an individual basis and keeps in mind that there are no guarantees of success either way.

Finding a Franchise That Offers a Good ROI

Brad Swanson — Mon, 30 Nov 2009 19:03:35 +0000

With any investment it is always wise to have a good estimate on the expected return on that investment (ROI) before making any actual monetary commitment. Franchising ventures are no exception to this general rule. In fact, when considering whether or not to buy a franchise, this projection because even more valuable to the potential investor.
Unlike investments into real estate or stocks, the decision to buy a franchise entails not only a substantial financial commitment, but also demands a great deal of time and energy on the part of the buyer. Any speculated return on investment should account not only for the amount of money invested into the business, but also compensate for the time spent establishing and running the business. As such, for a franchise to be viewed as potentially successful the expected earnings from the business should be significantly higher than the returns from a similar financial commitment to a passive investment.

It is important to understand that, when purchasing a franchise, higher initial investment does not necessarily translate into higher returns. A great deal comes down to the ability of the owner to effectively manage the franchise and the marketability of the franchise in the purposed area of business. For example, if the community consistently prefers hamburgers, then no amount of money invested is going to move fried chicken. Conversely, if the hamburger market of the same fictional locality is already fairly saturated, it’s going to be very difficult to attempt to edge into the market.

When deciding to explore the earning potential of a particular franchise, there is some very basic and very important preliminary research to be performed. An excellent first step is to request a copy of the company’s Franchise Disclosure Document. As a general rule, these documents relate information regarding the earnings of various franchises across the geographical boundaries of the franchise organization and can help in projecting an estimate of ROI for the area proposed for the purchased franchise.

The Franchise Disclosure Document will also give information regarding current and previous franchise owners. Conversing with owners within the region that the buyer proposes to do business, as well as owners in similar regions, can offer great insight as to what sort of return on investment can be expected. These same franchise owners can also form a backbone of a vital and invaluable support network for the new owner.
As mentioned above, another major factor in a franchise’s earning potential lies in the owners own capabilities to effectively run the franchise. It is always wise to seek out a franchise that utilizes previous experience and existing skills. A person with an extensive background in restaurant management is obviously going to fare better as a restaurant owner than as a gas station owner.

Above all, it is important to keep realistic financial goals in determining what franchise is most suitable. Taking into account the market in the proposed area, the earnings of franchises operating in similar locations, the time required to operate the proposed franchise and the owner’s ability to run the franchise in an effect manner can provide a good estimate of what one might expect to see in the way of return on the investment made into the franchise and the overall viability of the business.

Filtafry Steps To Success

Brad Swanson — Sun, 29 Nov 2009 16:47:12 +0000

From the moment that you take in the literature on this franchise, you realize that there is definitely something different about Filtafry. Being able to simply see the brochures and to read what they offer is one thing, but also, as you look through the various offerings they have, you begin to really get a sense of something good going on. There’s a strong sense of stability, of values and of things that are very clearly working out well for the franchise itself as a whole- from the high praise received from some top end clients, to the success stories of many franchisees. They, just like yourself, at one point took a look through the information to figure out if the franchise was right for them.

What is different?

The concept was a novel one- someone could go around, in a van and filter cooking oil, increasing the life of the oil itself and then, disposing of it in a more environmentally friendly way. One franchisee even converts his waste oil to bio diesel to run his vans! As well though, this service, performed once a week not only saves food service professionals money, but it also increases the performance and life of their fryers. As you can see, that’s an idea that really is beneficial so of course, the service itself caught on fast. So fast, in fact that the company began franchising out almost right away. The differences don’t end there, though.

How’s it work for Franchisees?

The franchise itself has always been a more hands on sort of franchise- more than just wanting you to do things the way that they have seen work, they offer the most comprehensive training and support of any franchise out there today. This gives you greater freedom, actually than it sounds because with that weight lifted off of your shoulders you are able to do things in a way that makes sense to you. And all of that with a relatively low overhead- after all, if you are running your business out of a van, perhaps keeping the books in your home office, what more do you really need? Included in the start up package is everything you need to succeed, and with a high level of guidance and encouragement, all that’s left is for you to supply your own drive and ambition and see how far that can take you.

Becoming a success with Filtafry may not be easy- nobody ever said that good things came easy, and we’re certainly not going to start now. However, this is one franchise that does everything in their power to give you the tools and training that you need to make a success out of your business. After all, if you are successful, then the franchise itself is successful and can continue building on their already excellent reputation of a long standing commitment to not only providing an environmentally friendly solution to waste oil management, but to their franchise owners as well.

The Filta Commitment

Brad Swanson — Thu, 26 Nov 2009 08:44:34 +0000

When you start a Filta franchise you do so with the backing of a competent team of professionals. The leadership of the Filta Group has been tested and proven over time. This collection of remarkably talented individuals possess the skills acquired during the launch of the very first FiltaFry venture and add to it the knowledge and experience gained through every new franchise established throughout the world for over a decade.

The dedication, knowledge and experience that has made FiltaFry such a spectacular success since its birth in 1996 is the same driving force that back each and every franchisee through the excellent Filta management team. Filta’s expert management team is unparalleled in the understanding of just what is needed to aid any individual with the necessary desire, drive and determination to become a successful Filta franchise owner. They stand committed to pass the extensive knowledge on to each and every new franchisee, in the hopes of continuing to make Filta a leader in the industry of eco-friendly kitchen solutions.

Filta Dedication

The commitment to excellence that is exemplified in the Filta management team is a trait that they also value and seek out in potential franchisees. It is this dedication that has seen Filta featured in the Franchise Times Top 55. In 2007 Franchise Times ranked Filta number 33 in the list of top movers in. year-over-year growth. In 2008 Filta saw themselves at number 26 on that same list. There can be no clearer indication that Filta provides a quality service with the potential for major growth and extensive market potential on a global scale.
The Filta leadership embodies the expertise and know-how to see this company and its many franchisees continue to grow and flourish. It is Filta’s ardent wish that each and every one of its franchises not only succeed but that they do so beyond expectation. Filta remains dedicated to providing the tools to help its franchisees realize their full potential.

Marketing You

One of the way Filta strives to help its franchisees succeed is through tireless national market campaigns. Filta works hard to ensure that the food service community is up to date with all the latest Filta advances and that they stay excited about what Filta franchisees have to offer. To this purpose, Filta continuously promotes the FiltaFry and FiltaCool services in advertisements and articles in trade publications such as Nations Restaurant News, FR&L, Food Management, Restaurant & Institutions, Restaurant & Hospitality and QSR. Filta also advertises online at the Food Management, the NRN and the R & I sites. Filta representatives promote the brand at foodshow exhibitions across the nation, such as National Restaurant, Ass’n Show, SW Food Expo, Florida Restaurant & Lodging Show and the Worldwide Expo.

Filta is dedicated to growing the brand and creating awareness of the many ways that Filta can help improve the environmental impact of commercial kitchens, while improving safety and reducing costs. Filta knows that the more the food service knows about the Filta products, the more receptive they will be to the franchisees in their area. Filta remains committed to opening the door and providing its franchisees with every possible tool to help them succeed in their businesses.

Examining Filta Ownership

Brad Swanson — Mon, 23 Nov 2009 20:23:17 +0000

If you are contemplating Filta ownership, you probably have some questions regarding cost and potential returns on your investment into the business. It is important to have a good idea of what you can expect from your investment before you even consider committing yourself. Let’s take a look at some of the realities of Filta ownership and answer a few common questions that potential franchisees often ask.

What Are the Associated Costs?

The initial Franchising Fee for a single unit franchise covering one territory is $31,000 due at the time you submit your Letter of Intent. Once you are approved for ownership, you purchase an Opening Package for $43,500. This package includes all of the equipment and stock to get your business started, and also covers your 2 weeks of classroom and in-field training. There is an additional $5,000 marketing fund fee, as well, that covers the cost of your Business Development Manager and helps support the costs of marketing your Filta franchise. The total start-up cost of a single unit franchise comes out to $79,500. There is also an option to purchase a multi-unit franchise.

Over the life of your business, there are monthly fees, as with any franchise. The Filta Group charges an 8% monthly royalty fee, as well as a 2% advertising fee. There are also ongoing costs for intranet and Quickbook use ($46) and cartridge replacement costs ($408 per MFU). You are also responsible for supplying your own office space, covering your own insurance and equipment maintenance costs, providing your own gas and other travel expenses and other associated costs of conducting business.

What Will My Territory Be?

As a general rule of thumb, territories are structured around county lines. In order to ensure that your franchise has the ability to meet its full potential, territories are established to take into account the number of businesses in your area, population density and growth trends, and other contributing factors. Filta attempts to establish territorial boundaries to that each franchisee has at least 10 McDonalds franchises within his or her territory.

How Much Business Can I Expect?

Most Filta owners make between 6-8 service calls each day, though it is up to you how many calls you wish to make each day and how many days you wish to work each week. The average service call for the FiltaFry service takes between 45 minutes to an hour to complete. The FiltaCool service requires significantly less time to complete. FiltaCool filters take about 25 minutes to install initially, and only a few minutes to switch out every 3 months after that.

Drive times between calls depend on the size of your territory and the traffic density. Within the average territory, Filta technicians have the capacity to handle an average of 40-45 service calls each week.

How Much Do Filta Services Cost?

The average service call charge for FiltaFry filtration is $66.85 as stated by the 2009 Filta Franchise Disclosure Document. The recommended service charge is $50 for the first 50 pounds of oil filtered, with an added charge of $0.35 per additional pound beyond the first 50. FiltaCool filters are rented at a cost of $12 per month for each filter. The average customer uses 6 filters.

How to Make Waste Oil Work for Your Restaurant

Brad Swanson — Mon, 23 Nov 2009 19:27:58 +0000

As a restaurant owner, you are undoubtedly all too familiar with the problem of waste oil removal. Perhaps, like thousands of others, you find yourself having to pay month after month to have your waste oil bins emptied and maintained, sometimes having to pay additional charges if your restaurant exceeds its normal business and you find your bin full ahead of schedule. Wouldn’t it be nice if you could find a way to make that waste oil work for you, rather than have it be a constant drain on your profits?

There are options for those willing to think outside the box and do a bit of reseach. Not only can you eliminate the cost of having waste cooking oils removed from your business, but you can actually turn that used oil to your advantage. Waste cooking oil, accrued through normal operation of any restaurant, can be turned to profit with a bit of investigation and ingenuity.

The simplest way of turning waste oils to profit is to sell your barrels of waste oil either directly to companies that recycle and reuse such oils, or by contracting with a company that collects and resells to such companies. Waste oil is used for a variety of industrial purposes. Waste oils are used by rendering plants in the production of high energy fats for cattle and pet foods. Used oil is also used in industrial settings as biofuels as a cost efficient replacement to traditional fossil fuels.

Rather than paying a removal service to haul off your used oil, with a bit of digging it could be possible to find a service that will pay you for your oil. Such services sell barrels of used oil to refineries and rendering plants for prices up to $30 a barrel. As such, it is not uncommon for them to be willing to pay in the neighborhood of $10 a barrel for the oil that many restaurateurs actually pay to have removed. These services can be contracted with to run on a regular schedule, coming by at times most suitable for the restaurant owner and giving no penalty for additional unscheduled pickups.

One need not necessarily rely on the availability of a local removal service in the area, either. Many rendering plants and refineries will work directly with the restaurant owner and contract to purchase used waste oil. Some even offer on site pick up of waste oils and may provide cooking oil receptacles for the business. This also offers the restaurant owner a chance of fetching a higher price for his waste oil by cutting out the middle man.

Running a restaurant is a costly and time consuming venture. It is the wise business owner that seeks out every possible potential for profit and for solutions that ease the flow of conducting business. With a minimal amount of research and effort, the unavoidable waste generated by your business need not be an unavoidable expense as well. Waste oil can become an additional source of revenue rather than an additional source of stress.