Franchisees and fellow franchise field reps,
Are you using Skype? Never heard of it? You can put a small webcam-microphone combo in your pocket and look at your franchisees while you talk to them if they have one. They can at least see you, if they don't. If they do have one, they can walk the laptop around if they have wireless internet and show you thing they want you to see, like a broken machine or something on a computer screen.
Franchisees can see each other with Skype. This is important if franchisees are in remote areas and aren't close to other fellow franchisees. Sure they talk on the phone, but they feel like they are getting to know the other person better when they see them.
Use Skype to have meetings. Travel costs are going up. One of the best webcams is $100 or less. That is cheap compared to holding a meeting and getting people all together. Maybe your company would pay for part of the cost in exchange for you visiting as often. YOu can have one franchisee on the line, or as many as your want. Having a meeting, but somebody can't make it because they just broke their leg? Have them log in to Skype and you have your webcam hooked to your laptop and it will be the next best thing to being there.
Skype is free. Free. You can talk to your franchisees AND see them, AND it is free anytime of day.
Some company used to advertise "The next best thing to being there" I don't remember who it was, but it should have been Skype.
Fran
Wednesday, February 27, 2008
Franchisees-Death, Taxes,Royalties, Part 3 Death
Franchisees or franchisees to be,
Death is inevitable. We all know that. Please set your franchise up with that in mind. The franchise company I work for has had several unexpected deaths of franchisees the last two years.
One franchisee was killed in a freak accident. His family didn't know much about the business, the franchise went into probate since he didn't have a will. The franchise business he had worked so hard to build went down to nothing and the doors were shut.
Another franchisee had cancer and had time to set things up properly, but didn't. He did have a will, but not a trust. It was a mess once again, the family wasn't prepared to take over the business and a buyer was hard to find.
Like not offering accounting advise, I will not give law advise, except to say, please consult both a lawyer and an account when setting up your franchise. The old saying "expect the best, but prepare for the worst" would be a good rule of thumb.
Don't let your family down after working so hard to build your business.
Fran
Death is inevitable. We all know that. Please set your franchise up with that in mind. The franchise company I work for has had several unexpected deaths of franchisees the last two years.
One franchisee was killed in a freak accident. His family didn't know much about the business, the franchise went into probate since he didn't have a will. The franchise business he had worked so hard to build went down to nothing and the doors were shut.
Another franchisee had cancer and had time to set things up properly, but didn't. He did have a will, but not a trust. It was a mess once again, the family wasn't prepared to take over the business and a buyer was hard to find.
Like not offering accounting advise, I will not give law advise, except to say, please consult both a lawyer and an account when setting up your franchise. The old saying "expect the best, but prepare for the worst" would be a good rule of thumb.
Don't let your family down after working so hard to build your business.
Fran
Tuesday, February 26, 2008
Death,Taxes, and Royalties Part 2 Taxes
Hola from New Mexico,
Franchisees have inevitable events to face. Among them are Death, Taxes, and Royalties. In part 1 we decided that Royalties are like taxes, the money isn't yours.
Taxes, it is that time again. It amazes me how the same business tax code can be interrupted so many different ways. I can visit the same same operation, with the same amount of employees, and in the same ballpark income wise, and the variation of expenses is amazing. I won't go into what I think you can and can't write off your taxes for a tax break, because I am not an accountant, but I do have some tax advise.
First of all pay what you owe. That shouldn't have to be said.
Second, send in your franchise income tax reports by April 15th. Unless it can't be avoided, do not get an extension until Oct. 15th. How can we figure out how you did last year if we wait until you get everything put together by April 15th. Let alone October 15th. I have people wanting me to help them plan a fall budget in September who haven't even put everything together from the year before. They won't have it together until October 15th!
Third, get a good tax accountant. Not just your brother-in-law that is a CPA. Get someone that knows all the ins and outs of the law. I have seen I and E statements for years and I can easily tell if they are using a good accountant. You may be leaving money on the table or your may be on the IRS hit list depending on your accountant.
Fourth, Use the information you generated for the IRS to make the next year business year better for your franchise. Take a hard look at expenses. Could some of those be cut back. Was it lack of business, or were you over spending?
Taxes and Royalties, it could be worse.....
Fran
Franchisees have inevitable events to face. Among them are Death, Taxes, and Royalties. In part 1 we decided that Royalties are like taxes, the money isn't yours.
Taxes, it is that time again. It amazes me how the same business tax code can be interrupted so many different ways. I can visit the same same operation, with the same amount of employees, and in the same ballpark income wise, and the variation of expenses is amazing. I won't go into what I think you can and can't write off your taxes for a tax break, because I am not an accountant, but I do have some tax advise.
First of all pay what you owe. That shouldn't have to be said.
Second, send in your franchise income tax reports by April 15th. Unless it can't be avoided, do not get an extension until Oct. 15th. How can we figure out how you did last year if we wait until you get everything put together by April 15th. Let alone October 15th. I have people wanting me to help them plan a fall budget in September who haven't even put everything together from the year before. They won't have it together until October 15th!
Third, get a good tax accountant. Not just your brother-in-law that is a CPA. Get someone that knows all the ins and outs of the law. I have seen I and E statements for years and I can easily tell if they are using a good accountant. You may be leaving money on the table or your may be on the IRS hit list depending on your accountant.
Fourth, Use the information you generated for the IRS to make the next year business year better for your franchise. Take a hard look at expenses. Could some of those be cut back. Was it lack of business, or were you over spending?
Taxes and Royalties, it could be worse.....
Fran
Friday, February 22, 2008
Death, Taxes, and Royalties Part 1 Royalties
Franchisees,
Please pay your royalties to your franchisor. I don't know how strict other companies are about collecting their royalties and at what point they send your delinquent butt to collections, but the fact is that they shouldn't have to.
I shouldn't have to call you and talk you in to, or threaten you to pay your royalty fees. The fact is, it's not your money. You have just started thinking it is your money, and that you can use the money for other things. Once again, ITS NOT YOUR MONEY.
When you bought the franchise, actually you didn't buy anything. You were licensed to do business as....... Anyway, you signed a contract agreeing to pass along the % of sales royalty fees for the right to use the name, brand, operating procedures, etc.
Think of royalties as taxes. You never say, wow I took in $2,000 last month in taxes that I can spend on a new car, boat, marketing, or anything else. You don't get excited about tax money that was collected because you know you have to just pass it along to the state, county, and city.
You know it isn't yours to spend, and you know if you don't pass it on, a day of reckoning will come. You can't tell the IRS that you haven't sent your quarterly money in because your car broke down and you need to hire another employee. You can tell them, but it won't matter.
Start looking at whatever % you pay in royalty fees as taxes. This will help you when you are tempted to spend it instead of passing it on.
Fran
Please pay your royalties to your franchisor. I don't know how strict other companies are about collecting their royalties and at what point they send your delinquent butt to collections, but the fact is that they shouldn't have to.
I shouldn't have to call you and talk you in to, or threaten you to pay your royalty fees. The fact is, it's not your money. You have just started thinking it is your money, and that you can use the money for other things. Once again, ITS NOT YOUR MONEY.
When you bought the franchise, actually you didn't buy anything. You were licensed to do business as....... Anyway, you signed a contract agreeing to pass along the % of sales royalty fees for the right to use the name, brand, operating procedures, etc.
Think of royalties as taxes. You never say, wow I took in $2,000 last month in taxes that I can spend on a new car, boat, marketing, or anything else. You don't get excited about tax money that was collected because you know you have to just pass it along to the state, county, and city.
You know it isn't yours to spend, and you know if you don't pass it on, a day of reckoning will come. You can't tell the IRS that you haven't sent your quarterly money in because your car broke down and you need to hire another employee. You can tell them, but it won't matter.
Start looking at whatever % you pay in royalty fees as taxes. This will help you when you are tempted to spend it instead of passing it on.
Fran
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