Archive for the ‘NewFranchise News’ Category

Franchise Leaders in Supplemental Education: A Tale of Two Different Tutors

Friday, October 3rd, 2008
The Americans are now spending more than $ 4 billion annually on tutoring for their children and the number is only expected to grow in coming years, as parents are increasingly spending their money for educational enrichment and rehabilitation.

The two leaders of the U.S. in further education are industry franchise Kumon Math and Reading Centers and Sylvan Learning Centers. Kumon currently has 1238 centers in the U.S., around the world with a total of 26,138. Sylvan has more than 1075 centers in the U.S. and 75 in Canada. Although both have experienced years of established success, they are each uniquely different in many aspects of its business practices and operations.

The franchise and the Kumon method of learning began in 1958 in Japan where high school math teacher Toru Kumon’s son was having problems with math in second grade. Kumon created a series of spreadsheets for mathematical his son to work after school. With daily practice, Kumon’s son gradually improved and later excelled in his math skills. Today, Kumon franchisees apply this method of daily practice and self-paced improvement of the children in math and reading. Kumon representative Deven Klein said: “Any organization Kumon is based on a father’s love and concern for their son.”

Sylvan Learning Centers franchise was founded in 1979 by W. Berry Fowler, a secondary school teacher in Anaheim, California. Fowler himself has been a struggle for students whose life was changed for the better, when a university professor diagnosed and helped him with his reading difficulties. Fowler was the aim of providing extra help and individualized attention to the many students falling behind in school; to test students individually and provide mentoring programs tailored to their particular needs. “Sylvan tutors are trained and certified and love to teach,” says Sylvan company representative Greg Helwig.

Helwig claims, “Sylvan’s strong and positive track record of more than 25 years clearly establishes this tutoring company apart from any competitors.’s Long experience is, along with almost 100% brand and high customer satisfaction. Innovative programs like Sylvan in line, with mentorship delivered live over the Internet, Sylvan and the new pre-K reading program also Sylvan Unlike other providers of tutoring. ”

Unlike the strong national and regional marketing that has helped bring Sylvan “almost 100% mark,” Kumon has been based mainly through the last half-decade on the “word of mouth” to promote and grow their businesses. Jenny of Kumon Cherrytree representative said that this is word of mouth advertising that has been the driving force behind its expansion, and it is not uncommon for parents to have returned over the years to register additional brothers in their programs.

Whereas the more traditional educational methods Sylvan resembled guardianship in a classroom style, Kumon Math and Reading Centers employ a more independent learning program. The curriculum consists of hundreds of short assignments. A student must master each concept before fully learn a new one. Each assignment is the time and classification. Students must reach nearly 100 percent accuracy within a period of time before advancing to the next level. Through this practice repeated independent, student of master each skill before moving on to the next.

Students go to a Kumon Center once or twice a week for about 30 minutes per item in the home and completes the daily assignment of short duration (10-30 minutes per item) on other days of the week. The instructor evaluates each child’s progress week to ensure growth and academic goals are being met. It is not a quick fix, is a long-term program and can take up to one year for a child to catch up to grade level.

Both franchises referred to the benefits of a parent to take his son to use their services.

Helwig Sylvan said: “When parents take their children to Sylvan, they’re getting the support of the entire system of Sylvan. Sylvan perspective of diagnosis and in downtown drives an individualized tutoring that goes beyond the tasks of drilling and support to ensure that every child achieve mastery skill. Interaction with other students who are also receiving individualized tutoring creates a positive peer / group dynamic that adds to the positive outcomes. All this is backed by a guarantee. ”

Klein of Kuman said: “Apart from the unique educational method and philosophy mentioned, I think that really Kumon fosters a strong, positive parent-child relationship. We will not hesitate to say to parents who have to be very involved in the process, and if they can not, should not enroll their children. Kumon is a daily program of about 20 to 30 minutes per day. Therefore, on non-day center, the student completes the daily lesson in home, based on their individual curriculum. In encouraging and supporting the child to do the daily lesson, the father is really capable of participating in the child’s progress through the leaves of Kumon. Many parents even enjoy the option on the home of classification so they can immediately check if your child needs to correct their errors or explain a concept. This routine creates a strong link in the parent-child relationship. ”

Kumon regular monthly tuition ranges from about $ 80 to $ 110 per item, and there is a time of a registration fee of $ 30 to $ 50. Topics covered include math and reading. Sylvan instruction a regular time cost can range from about $ 48 to $ 58 per hour. Their skills assessment test is about $ 175, and there is a $ 50 registration fee per program. Their curriculum includes: Reading, Writing, Mathematics, Study Skills, SAT / ACT Prep, Advanced Youth Scholars Program, and courses for high school credit. Prices may vary from center to center within each franchise.

For prospective franchisees looking for a low-investment tutoring franchise, Klein said that the low investment costs of the Kumon franchise sets it apart from other franchises education: “Our initial investment (defined as three months from opening Center) is estimated to be in a range from $ 10,038 to $ 30,353. This is a relatively low initial investment for U.S. franchise systems. In fact, there has been ranked in the top 500 franchises by year since the magazine Entrepreneur as a leading franchise low investment. We have put in 8 ranking in this category in 2006. ”

The franchise fee for Sylvan Learning Centers is $ 40 thousand to 48, with a projected total investment of about $ 180 to $ 300 mil. Helwig states, “Sylvan franchisees are supported by 25 years of experience, processes and systems, nearly 100% mark, strong national and regional marketing, and an expert field staff to consult with franchisees to ensure that are employing best practices to build a strong and successful business. ”

And what do these two franchises more pride in themselves?

“Sylvan helps children develop the skills to do better in school and the confidence to do better in everything else,” said Helwig. “The fact that the impact of Sylvan lasts a lifetime and can truly change a child’s life is the most important part of what Sylvan offers.”

Klein shared about this Kumon Math and Reading Centers: “Kumon is proud to see the majority of our students have a love of learning and developing life skills to help society. These skills include focus, perseverance, patience and compassion. Our students develop not only good mind, but good hearts. For our franchisees and employees, is much more than just seeing our students master math and reading. We are very proud that our method of teaching implies that the student participates in setting learning objectives, because it is very pleasant in this way – we know this from watching our students. We take pride in the fact that all our actions and decisions are made in the best interest of the child. “

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Franchisees Speak Out About Their Franchisors

Thursday, September 18th, 2008

Franchise Business Review, a national franchise market research firm, recently published its findings of an industry-wide survey of franchisee satisfaction. According to its chairman, Eric Stites, franchisee satisfaction is one of the most important factors in any future franchisee to consider before buying a franchise.

To measure the satisfaction of the franchisee, Franchise Business Review surveyed franchisees from nearly 250 franchise companies, representing 45000 franchisees. Franchise companies surveyed were all sizes, including small businesses with as little as 10 franchise owners, as well as very large franchise companies with several thousand locations. Franchises were evaluated in five areas: training and technical assistance, franchise system, the franchisor and franchisee relations, financial opportunity and overall satisfaction.

“Our franchisee satisfaction survey is one of the largest studies conducted in each franchisee satisfaction and the results speak volumes about businesses that made our list of 50 Franchises,” says Stites.

From first to tenth, the most valued Franchise 50 are as follows:

* Heaven’s Best Carpet / Clean Upholstery
* FASTSIGNS International, Inc.
* Budget Blinds
* Concrete cutting precision
* 1-800-GOT-JUNK
* Parmasters gold training centres, Inc.
* Computer Troubleshooters
* CertaPro Painters
* Truly Nolen of americas
* Tax Centre americas

The survey results, Stites said, were full of surprises and “surprising comments from franchisees, both good and bad.” Many of the long-established franchise systems ratings traditionally not measure or calculate franchisee satisfaction in his scoring formula. Franchise Business Review’s top 50 offers some new franchises facing the new company are real winners in the eyes of its franchisees.

“Heaven’s Best, our main winner,” Stites said, “was one of the biggest surprises.” With over 15 years of industry experience of the franchise, Stites had never heard of Heaven’s Best before: “Here is this franchise company with more than 1000 localities which has franchisees who are very happy and make money. Most of these franchises are working an average of only 30 to 40 hours a week, and when asked, ‘If I had to do it all again, and you knew what you know today, would you invest today? “88 percent of its franchisees said ‘yes’ and 10 percent said “probably (the average is 40 %).’”

Franchise Trade spoke with Heaven’s Best CEO Howard Cody just one day after having had the opportunity to review your company survey results. Of course very pleased and ecstatic, Howard embodies in his words and his enthusiasm company slogan “A company you can trust.” Howard is happy to see that his firm commitment to “honesty and integrity in everything we do” – and his genuine concern for their operators and customers alike – has not gone unnoticed by its franchisees grateful.

Heaven’s Best franchise began in 1983, and according to Howard, “the number of our franchises has doubled over the past five years, and we plan to double the size again within the next five years.” Howard does not doubt the fact that Heaven’s Best is only looking for franchisees who are “good fit” with his company. “We realize that not everyone is cut out for it. And we are looking for a hard worker, someone who is honest, has a clean-cut appearance honest and serving our customers.”

Even with Heaven’s Best of immense satisfaction by its franchisees, Howard expressed his desire for the company to fight for more, in his words, “How can we improve further? How can we do better for our operators and customers?”

In addition to the prizes awarded to the top 50 franchise companies with the highest levels of franchisee satisfaction, Franchise Business Review has also awarded 22 franchise companies with “Best in Class” in its industry. Budget Blinds was rated “Best in Category” At Home Services Industry category and ranked third overall in the Franchise Franchise 50 2006 Satisfaction Survey based on feedback from 439 franchise owners (69%).

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Good News for Franchise and Small Business Owners

Wednesday, September 17th, 2008

Two press releases – one from the Office of Advocacy, U.S. Small Business Administration (SBA) and the other Franchise Business Review – hold good news for the franchise and small business owners alike.

Franchise Business Review, a national franchise market research firm, has just published a new report showing that 72% of the franchisees cree que su opportunity for growth is very strong to very strong. The report is an industry-wide survey of franchisee satisfaction compiled from responses from more than ten thousand franchise owners in the U.S. and Canada.

“The economy may be weakening in many places but franchisees are very positive about their growth,” says Eric Stites, president of Franchise Business Review, June 2006 release. “If we consider the little-known fact that the top 50 public franchise companies have exceeded the S & P 500 by 70% over the past six years, one can understand why franchise owners are so optimistic. The media attention communication is always in the ‘doom and gloom “of the economy … Meanwhile, the franchise industry is booming! More people should stop watching the stock market tumble and consider buying a franchise business. ”

The 2006 Report on the Franchise Industry satisfaction is available for free download on the Franchise Business Review on the site in http://www.FranchiseBusinessReview.com.

Since the SBA was more good news for small business owners in general: His newly published study shows that families owning small businesses were more likely to be at the top levels of income and wealth than those who did not owner of a business (demographics over the period 1992-2001 were considered). However, their comparative share of income and wealth fell during the same period, a decline of about 42.5 to just under 40.6 percent of total household wealth.

In 2001, small businesses with owners of homes were more than twice as likely to not owning business to be high-income households, and over eight times more likely to be high wealth households. (Households with 50000 dollars or more total household income in 1992 U.S. dollars are classified as high income. Households with $ 1 million or more dollars of net worth in 1992, are classified as high wealth.)

Dr. Chad Moutray, chief economist of the Office of Promotion, was quoted in the June 2006 release as saying, “Business ownership has traditionally been a route to prosperity for Americans. This study confirms that the 1990s were not different. ”

The actual complete copy of this report shows some other noteworthy results. These include:

* Households with more than a small business is more likely to be high income and high wealth holders than those with only a small business. (In 2001, 37.6 percent of small business owners who owned and managed multiple businesses are high wealth households, while only 16.6 percent of small business owners that owns and manages a single business were high wealth households.)
* The number of households owning small businesses has remained fairly stable at around 12 to 13 million households. (In 1992 there were 12.6 million households owning small businesses; In 2001, there were 13.2 million euros)

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