The Virtual Implosion of the Franchising Business as Performed by Disgruntled Ex-franchisee Under the Direction and Guidance of Franchising Forums and Blogs

One bad apple does spoil the whole bunch according to some blog sites and franchising forums on the internet. Recent threads and comments posted on these forums assail the companies that are giving many individuals an opportunity at the American Dream. These forums, usually frequented by ex-franchisees or disgruntled franchisees, should give concern to businesses and companies looking to protect their brand and image.

The advent of the internet, people and companies can now post damaging and sometimes inflammatory comments on any given person or subject without fearing legal recourse. But what affects are being felt by the franchising community under these allegations and postings? Under the guise of ‘outing’ bad franchisors the underlying tone and sometimes editorial slants of these sites may be causing more harm than good. Are these forums responsible for the decline in franchising or are they the ‘white knight’ out to protect would be entrepreneurs?

Franchising has always and will continue to be a vital segment of our economy, offering entrepreneurs a vehicle of established success towards their financial independence. This March 16, 2008 report put out by PricewaterhouseCooper shows the growth and rise of the franchising industry in the United States over the past few years. The overall consensus is that the franchising industry is doing fine, but can forums and blog sites undermine or cut into these statistics?

U.S. franchising expanded by more than 18 percent from 2001 to 2005, adding more than 140,000 new businesses and 1.2 million new jobs to the nation’s economy, according to a new economic impact study by PricewaterhouseCoopers for the International Franchise Association.

Direct economic output of franchises grew by more than 40 percent to $880 billion in 2005, the latest data available.

In sheer numbers, the jobs and payrolls of franchised businesses were greatest in California, Texas, Florida and Illinois. Franchising accounted for the largest share of state output in Nevada, Arizona and Florida.

Franchised businesses provide more jobs than the durable goods manufacturing industry and financial activities sector, according to Matthew Shay, IFA’s president and CEO.

The study shows the rate of growth in employment was three times higher for franchise businesses than for the economy as a whole.

Following are possible consequences that companies under fire may endure from inflammatory comments posted on these franchising forums. These consequences just may alter the above report for the worse.

Companies under fire will see a significant decline in their lead flow. The potential negative press given to these companies will deter many potential entrepreneurs from examining the company further with an open mind and without all the facts. A disruption in leads eventually leads to a disruption into sales of companies looking to expand their concept or ideas. In any economy, sales are what keep the lights on and the economy moving forward.

For existing franchising companies these sales help drive the other services they may provide such as marketing, financing help etc. When the revenue begins to fade, drastic measures are undertaken by the company to make ends meet. Extreme measures usually result in layoffs adding to unemployment figures. Support programs may see a cut or disruption adding to the decline of the company brand. Closure of the company not only affects the management and employees but the community in which they do business.

The effects usually are not regulated to the franchising business at hand; vendors are also impacted by reduced sales to the franchising company. Support, materials and supplies are drastically reduced in order for the franchise company to stay open. Credit terms and buying power of the affected franchising company also are affected. The list of possible consequences goes on and on, but for some companies the damage to their brand and public image may be irreversible due to postings on franchising forums and blogs.

Several organizations have been established to assist potential franchisees and existing franchisees maneuver the world of franchising. The International Franchising Association (IFA) and American Association of Franchisee and Dealers (AAFD) are organizations that look to establish fair guidelines and practices for both the franchisee and franchisor. Both these organization and others like them, offer valuable resources and insight for entrepreneurs looking to go into a relationship with franchise companies. Franchise attorneys can also assist would be entrepreneurs in contractual negotiations and/or grievances.

Not all forums and blogs cater to the negative most forums and blogs contain valuable and helpful information for individuals seeking to go into business for themselves. They may find others who have taken that road and gain further insight into any particular company. There are countless web sites and portals for entrepreneurs to gain more knowledge about the franchising community. Forums and blogs that cater to one side of the story are just that one sided. Do your due diligence in researching franchising companies before moving forward with your dream. When entrepreneurs open businesses they contribute to the overall success of the economy and society at large, not to mention living the American Dream.

Dairy Prices are quickly becoming a concern for business associated with specialty coffee segment. Lattes, cuppaccinos and other espresso drinks main ingredient is milk. Prices vary from coast to coast but the national average is around 4.10 a gallon for 2%. This increase has caused some chains to increase the cost of their drinks to make a profit.

As dairy prices continue to rise heading into 2008, forcing coffee chains like Starbucks to raise their prices for a cup of joe, Cuppy’s Coffee has found a way to outdo the competition. Cuppy’s Coffee is happy to accommodate those looking for top quality coffee drinks at a lower price with the 12oz. cup selling for an average of $2.60. With 51% of the U.S. population drinking coffee on a daily basis, according to the National Coffee Association, Cuppy’s Coffee continues to take growing share of this market.  Excerpt from Today's Restaraunt News

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ELITE MANUFACTURING, LLC AND CUPPY'S COFFEE AND MORE 'CORRECTION' ON CONTRACT SCAM

Elite Manufacturing, LLC has been trying to contact me the last three weeks in order to mail the remaining balance of our down payment, but my cell phone is not functioning properly that's why they can't reach me. Elite also tried there best to contact by e-mail and have no success. Elite and I agreed on the terms of re-payment and I thank them for there due diligent and there concern on there clients well being. Down payment problem was resolved and I wish Elite Manufacturing, LLC continued success.

Cuppy's Coffee and More did nothing wrong. They help me every step of the way to get one of there franchise build. No lender want to finance a start-up so we wind up cancelling the project. We also wish Cuppy's Coffee and More conttinued success.