The Center for Total Quality Franchising®

Member Login

What is a Health Insurance ‘carve-out’? Should I consider it?

Answer: When businesses face challenges getting enough employees to participate in their health insurance benefit (enough to meet the minimum participation rate set by the insurance company), they often use a so-called “carve-out” to offer the benefit to a smaller subgroup of employees.

How Is Your Franchisor Using Your Marketing Fund?

Most franchisees are required to pay into an advertising marketing fund, which the franchisor controls. What is your franchisor doing with all that money, and is it directly benefiting your franchise? In a perfect world, your franchisor would use the funds exclusively for advertising and marketing the brand, and you (and other franchisees) would have input in determining how the money was used. Let’s make this perfect world even better and say that the franchisor would even provide regular reports to you about fund activities. 

Why Your Franchisor May Not Provide the Supplier Benefits You Expect

Many potential franchisees become trusting of their chosen franchisor and go further to make the mistake of believing that their agreement and supply chain is, and must be, a “take-it-or-leave-it” agreement. Significant dangers lurk throughout almost every franchise or distribution agreement drafted by franchisors and suppliers

New Supreme Court Decision Could Make It More Difficult for Franchisors to Negotiate with Franchisees During Chapter 11 Bankruptcy

Franchisors have used Chapter 11 bankruptcy to both restructure their debts and to demand concessions from franchisees. A new Supreme Court decision could take away, or at least blunt, this practice. 

In the past, it wasn’t uncommon for a franchisor to try and use a Chapter 11 bankruptcy filing to secure better terms for itself at the cost of its franchisees. For example, a franchisor might have old franchise agreements that require significant support services and contain royalty rates of 2-4%.  A franchisor filing for Chapter 11 might as well try to force upon franchisees contracts with no support obligations and 5-10% fees.  

Idealistic Dreamer to Burned-Out Business Owner? Avoid that Fate with the Super-Secret Magic Formula to Finding More Time

This story isn’t new. A big dreamer becomes dissatisfied with the corporate life – the strict schedule, limited vacation time, ceiling on earnings, few opportunities to be creative or make a difference, and answering to a boss who doesn’t appreciate the employee’s value – and ventures into small business ownership.  

Chosen Payments Tips, Where Fees Go

Many merchants falsely believe all of the fees they pay go to their credit card processor. If that was the case there would probably be a lot more credit card processors out there today. The truth is, your processor actually keeps a very tiny portion of the transactions.

s2Member®