Maybe it’s a guy thing, but I wouldn’t want to stare at someone for 30 minutes while working out.  (Curves) (Ladies Workout Express)

 

 

 

 

 

 

Interesting nuggests of information about the UPS Store outlets…

Since the acquisition, a UPS spokesman says, overall sales have grown “impressively.” The company doesn’t break out results for its retailing chain. But sales data reviewed by The Wall Street Journal show that domestic UPS Store outlets averaged about $295,000 in revenue last year. Five of the stores had more than $1 million in sales subject to royalty. That number excludes the sale of stamps and other postage and some weekend delivery charges. Mr. Mathis adds that same-store sales, a key indicator, rose last year.

As for capping prices franchisees can charge, the company says it did so because “our research showed that the high rates franchisees were charging simply didn’t sync with what customers were willing to pay.” Customers also found differences from store to store confusing.

Hat Tip, as usual: Paul Steinberg in the forum

While I can understand that pricing consistency is an important marketing tool, it hasn’t hurt McDonald’s or other fast food franchsies that drift from the menu and $.99 specials often. It would be clever for the UPS stores to try and open up “eBay drop off” concept and co-brand it….similar to Dunkin’ Donuts, Baskin Robbins, and Dunkin’ Deli. It would generate a lot of PR, drive business, and reposition the brand as a high-tech, small business friendly store.

Winmark Corp (formerly Grow Biz), franchisor of the retail stores Play It Again Sports, Once Upon a Child, Plato’s Closet and Music Go Round, has a new franchise concept called Wirth Business Credit. It’s mission is to help small businesses lease equipment.

Leasing can have many advantages for a small business owner: preservation of capital and credit for other expenses and investment in growth, simpler bookkeeping and tax reporting, tax advantages, improves financial ratios, etc.

Why would someone choose to lease from Wirth Business Credit over any of the other many leasing companies? I don’t know, unless their rates are cheaper and terms are more attractive. However, I doubt whether the tight structural constaints of a franchise is the best means to compete in a business where most sales comes down to price and, to a somewhat lesser extent, customer service.

Wirth charges around 9 percent to 14 percent today compared to a bank prime-lending rate of 8.25 percent, Morgan said. Winmark and its franchise owners earn a profit by building fees into the interest rate, much like points that are added to a home mortgage loan…..

Wirth President Mark Hooley said the company stands out from rivals because of its local presence, its automated leasing system that provides approvals in four hours or less, and the ability to finance up to 100 percent of equipment value…..

Wirth franchise owners pay an average of $60,000 to do business in a certain geographic area, including franchise, computer and marketing fees. In exchange, the company provides the brand, the business model, cash for leases, training, marketing and the collection of overdue leases.

I especially agree with the final comment in the article:

“Financing can be complicated and challenging,” Faras said. “But my part of the business is really about sales. You have to already understand sales.”

It often comes down to sales in a franchised or startup business.

There seems to be a constant flow of articles on discount broker franchises lately. Having recently gone through process of purchasing property using a friend who happens to be an excellent broker, I can recognize the value of paying 5-6% commission for that diamond-in-the-rough selling broker (or using a buyer’s broker who will split their commission with the seller’s broker) who is unconditionally looking out for your interests and not their personal wallet. Without that exteme level of certain dedication and loyalty, I would balk at paying the full commission to a selling broker and I would likely seek the services of a discount broker. As competition from discount brokers increase, more buyers and sellers will be able to command a commission rebate from their broker as well.

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• 2 (comments on the article by Redfin, a Seattle and San Francisco real estate services website)
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• 6 (newgroup discussion thread)

Great advice from Paul Steinberg in the forum:

March 20 ‘06 issue of NRN cover story states that KFC franchisor-mandated remodels ($250-500K per unit) may force smaller franchisees to sell; www.nrn.com

When buying a franchise, remember to ask about any upcoming mandated capital improvements. Particularly in the hospitality industry, many franchisors have a schedule for upgrades/remodels; this is necessary to keep the brand image fresh.

What appears to be a “bargain” price from a selling franchisee may cost more than an “expensive” alternative outlet if the higher-priced outlet has the current decor and the cheaper outlet will be needing a facelift.

GNC’s same store sales for franchised locations were up almost 5.9% during the 2nd quarter from a year ago. The 1st quarter sales were up 1.5%. At least it’s better than 2003 and 2004 when franchisees experience double digit quarter drops in same store sales.

Just a reminder – there are many great discussions going on in the forum.

Maybe this will save you time if you are asked to give a best man toast in the future. I know I spent a lot of time trying to think of something to say, time that would have been better spent on business, frankly. I gave a best man toast in a wedding this weekend in Cincinnati. I liked the way it turned out, so here it is:

I’ve known Tom now for more than 10 years.
We first met at Miami University. We were both rushing the same fraternity.
At a fraternity party, Tom, being the gentleman that he is, offerered me a drink…I accepted…and we’ve been friends and brothers ever since.

The elements of Tom’s character that make his such a good friend to those of us at this table and in this room
are

• his loyalty,
• his honesty without exception – he cares enough about you to tell you the truth rather than what you want to here,
• his quick wit, his charm, his fantastic sense of humor, his magnetic and engaging personality
• and the list goes on……and on…

But most importantly…
the list goes on through the eyes of Ashley
who looks at Tom and sees
the man of her dreams…
the man who she wants to spend the rest of her life with.

I wish both of you a life together of health, wealth and bliss
that you both deserve.
Cheers.