8 Advantages of Investing in a Franchise

Opening your own business can seem scary when you are first starting out, but it does not have to be. There are actually plenty of advantages of investing in a franchise business, as opposed to opening a brand new business.

Roni Deutch Tax Center recently authored a guest blog entry for FranchiseBusinessReview.com explaining 8 of the biggest advantages of opening a franchise. You can find a few items from the list below, or click here for the full text.

1. Tried and True

When you invest in an already created business model, you can have confidence the business will be successful if you work hard and follow the franchisors instructions. Franchised businesses typically have a proven track record of success, and can support nationwide expansion.

2. Trusted Brand

Another big advantage of owning your own franchise business is that you are investing in an already recognizable brand. Unlike other small business owners who have to build up recognition and a reputation, your business is likely to already be nationally known and recognized.

3. Higher Success Rate

According to the Department of Commerce, franchised businesses are more likely to avoid failure. Therefore, investing in a franchise business can be considered a more secure investment then opening up a new business.

4. Quick Cash

Getting financed for a franchise business loan can be drastically easier than it would be if you were seeking a loan to start an independent business. Banks know the lower risk involved in a franchise investment and love to be involved with secure and profitable ventures.

8 Habits of Successful Business Owners

Last week the Roni Deutch Tax Center had another guest blog entry published on FranchiseBusinessReview.com. The new article explains 8 common habits of successful business owners. You can find a few items from the list below, or check out the full blog entry at FranchiseBusinessReview.com.

1. Always Motivated

Everyone knows that you need motivation and drive to be successful in life. However, it is important to remember that when you’re running a small business you need to be able to not only motivate yourself, but motivate your employees as well.

2. Goal Oriented

Successful business owners are goal oriented, they know what they want to achieve and how long it will take them to get there. Additionally, having clear goals for both yourself and your employees will help keep everyone motivated.

3. Time Management

When you own a small business, time equals money. If you want your business to be a success you will need to understand time management, and be able to plan how to best utilize your own time and the time your employees are on the clock.

4. Money Management

In addition to managing time, as a small business owner you also need to be able to properly manage your money. Although money should not be the only reason you open a business, you do need to be able to judge what is profitable and what is not. Fortunately, there are tons of accounting programs that can make money management a lot easier.

Common Franchise Myths Debunked

The Roni Deutch Tax Center had another guest blog entry published on Franchise Business Review.com. This new article debunks a haldful of common franchise myths. If you have ever been mislead to believe that Starbucks is the worlds largest coffee franchise, or thatall chain restaurants are franchises, then you will want to check out this informative new guest blog entry.

All Chain Restaurants are Franchises

Whenever people see a chain restaurant, from Outback to Olive Garden, they always assume it is a franchised unit. However, there are two business models that these chains commonly use. The first involves selling franchises, and the other involves hiring individual store managers to run corporate owned locations. You might be surprised to learn that the following chains do not franchise: Cheesecake Factory, Lone Star Steakhouse, O Charleys, and Bob Evans.

Buying a Franchise Means Guaranteed Success

Although your odds of success are statistically higher with a franchised business, there are no guarantees. Even with a proven business concept, no business venture is without risks. Hundreds of franchised businesses do close every month, however studies show that the most common reason a franchise fails is because they do not follow the system.

It’s Wasteful to Invest in a Franchise, Just Open your own Business

All franchises have an initial fee that must be paid to open a location, and some people may view this as a waste of money. However, studies show that nearly 95% of franchised businesses remain open for at least 5 years, and 94% of franchise business owners consider themselves successful. The money you give the franchisor lets you in on a proven business model that will make your business much more likely to succeed.

Starbucks is the Worlds Largest Coffee Franchise

As we mentioned earlier, there are two business models used by large chains, and although many people assume Starbucks franchises their stores, they actually do not. The only Starbucks locations that are not corporate owned are those inside hotels and grocery stores.

Continue reading at Franchise Business Review.com…

5 Tips on Obtaining Insurance for your Franchise Business

Earlier in the week, FranchiseBusinessReview.com posted another guest blog from the Roni Deutch Tax Center. This month’s guest blog explains five tips on finding the best insurance policy for a franchised business. You can check out a few of the tips below, or read the full article at FranchiseBusinessReview.com.

Compare Quotes

Never sign up for the first insurance quote you get. Most franchisors will recommend an insurance agent to use, but you should still seek out at least two or three additional quotes before making a final decision. Also, be sure to compare more than just the fees. You should decide on an insurer based on the quality of their coverage, not who has the lowest monthly fee.

Look For Package Deals

Most insurers have bundle packages that give you a discount for having them handle all of your insurance needs. If you already have insurance for your car or home, you should try calling your insurance company to see if they offer a discount for adding business insurance to your package.

Be 100% Honest

Never provide false or misleading information to an insurance agent with the hope of lowering your premiums. You could end up with the wrong type of insurance which could cost you thousands in the long run.

Lookout For Overlaps

Avoid duplicate or overlaps in your insurance policy. You want to make sure you are only paying for what you need, and not paying for coverage you already have.

Pictures from the RDTC Convention 2010

The third annual Roni Deutch Tax Center convention was held in Reno, NV last weekend and earlier today I was able to add a handful of pictures from the event to my Flickr photo stream. Below are a couple of pictures from the convention, but be sure to check out my Flickr album for the full set of pictures.

Franchising Consultant Recognized at Annual Convention

Earlier today Franchising.com published a new press release about Alex Cunningham, a franchise consultant whom I recognized in my speech at the Roni Deutch Tax Center's 2nd Annual Franchise Convention in May. Check out a clip from the release below, or read the full story here.

The Consultant of the Year Award recognizes Alex Cunningham for strengthening the Roni Deutch brand by selling 20 Roni Deutch Tax Center franchise territories in Florida and New Jersey in 2008-2009. To continue his success and to keep the momentum going forward, Cunningham is currently working on additional development deals in Connecticut, Louisiana, Texas, and New York that could total more than forty new territories for Roni Deutch Tax Center.

"It is a tremendous honor to receive this award," said Alex Cunningham. "To win the Consultant of the Year Award takes an incredible amount of effort, discipline, and energy. This award is not only for me, but for the great entrepreneurs I have worked with that have seen the immense opportunity in this industry."

For over two decades, Alex Cunningham has specialized in helping mid-level executives transition into franchising, and has built partnerships with over 85 companies, as well as helped pair more than 1,000 entrepreneurial prospects with franchises that closely match their experience, long-term goals, and passion. He has the expertise and knowledge to consult extensively with national franchisor operations, and help potential franchisees match their goals and qualifications to the "best fit" franchise opportunity.

Reasons to be a Multiple Unit Franchise Owner

WatchMeFranchise.com, a blog sponsored by RDTC Inc., posted an interesting article last week on reasons why it is beneficial to be a multiple unit franchise owner. Check out a portion of the article below, or check out WatchMeFranchise.com for the full version.

1. More Profitable

The biggest reason to open multiple units of a franchise is because you have the opportunity to make much more money. There is only so much money to be made from owning a single location, but if you begin to expand then the income possibilities are essentially limitless.

2. Franchise Incentives

Depending on the franchise you own, there may be incentives offered by the franchisors for owning multiple units. Incentives could be a reduced price, free services for your store, or even prime store locations. Franchisors will usually offer these incentives for multiple-unit owners, as it saves them time and money as well for you to have multiple locations.

3. Advertising Savings

If you own multiple franchises, you can save on advertising by running one set of ads, but providing two (or three, or four, etc.) contact sections. You have probably seen this in ads all over the place, but had never considered it as an advantage to the franchise owners.

4. Multiple-Unit Management

Managing one store can be hard enough at times; so many people get quite concerned about the idea of managing multiple stores. However, most multiple-unit franchise owners will decide to hire a store manager for each location. That way, as the owner, you become more of an over-seer and will not need to handle as many day-to-day operations.

5. Higher Success Rate

It has been proven that multiple-unit franchise owners have a much higher success rate than that of single-unit owners. While all franchises have a statistically higher success rate than other small businesses, multiple-unit franchisees have an even higher success rate.

9 Hot Franchise Trends in 2009

WatchMeFranchise.com, a blog sponsored by Roni Deutch Tax Center™, recently posted an entry on 9 hot franchise trends to watch in the new year. Below is a quote from the entry, but you can read the full text by clicking here.

1. Woman-Focused Franchises

Franchises that focus on women and are run by women have grown a lot in popularity over the last year and are expended to continue to do so in 2009. These businesses can include anything from women’s health centers to women-targeted clothing stores.

2. Fun Food

Crazy food franchises have grown a lot trendier over the past year as well. By offering something different then the normal fast food like menu, these businesses can reach out to crowds that are tired of unhealthy, processed foods. Additionally, by letting consumers create their dishes, such as yogurt shops that let you create your own custom dessert, they can connect with customers of a more creative level.

3. Green Business

It is no surprise that green-thinking businesses made our list. Nowadays any business can be labeled “green” just by stating their cups are made of recycled materials or their food is organic. However, it is more than trendy, as green businesses often build very loyal customer bases that do not mind paying a “green” surcharge.

Continued at WatchMeFranchise.com…

Chicago Franchisee Featured in Ind US Business Journal

Molly Kumar, a Roni Deutch Tax Center® franchisee in Chicago, IL, was recently featured in this article in the Ind US Business Journal. Below is a quote from the article, but you can read the full version by clicking here.

Molly Kumar is a franchisee with Roni Deutch Tax Center in Chicago. In January, along with her husband, Bruce, and business partner, Sohan Joshi, Kumar opened one of the first Roni Deutch locations. As such, they are members of the chain’s Founders Club, which features the first 50 franchisees and has a special lead generation program. Chain founder Roni Deutch made her name running a California-based tax resolution law firm for close to two decades before opening the first Roni Deutch Tax Center herself in Fair Oaks, Calif., in June 2006.

The concept was launched as a tax preparation chain in 2007 with the first franchise location. According to the company, licenses for close to 300 locations have been sold. Deutch says her chain has a “double-pronged mission” – to eliminate the need for tax resolution by providing Americans with professional tax return preparation, and to provide a recession-proof business opportunity for entrepreneurs seeking a piece of the booming tax preparation industry.

“This young lady, Roni Deutch, she is absolutely phenomenal,” said Kumar. “She wants to be the best of the best. … She gives so much of herself and the loyalty is automatically given back to her.

“She makes you feel part of a family. She is someone who will not only be there for my successes, but also if I fail,” she added. “Because of this we want not only our success we want RDTC success.”

In their first tax season this year Kumar and her husband have already found this success, handling more than 700 clients and ranking as the third best franchise in the chain.

In the cluttered landscape of the tax preparation industry – the Kumars estimate there are approximately 25 such businesses in their region – they believe Roni Deutch sets itself apart.

Roni Deutch Tax Centers, in addition to tax preparation services also offers debt resolution, payroll, bookkeeping and identity theft protection.

The Kumars aim to firmly establish their Roni Deutch Tax Center business through their first location, but preliminary plans are to open three or four more locations by 2010.

Molly Kumar is a native of Mumbai and has spent the last three decades working in the retail industry with companies such as Nike, The Limited and The Container Store. She currently works for Macy’s furniture division.

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The world history of taxation.

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Investor confidence more optimistic than consumers.

9 hot franchise trends in 2009.

How to give and receive at the same time.

Religion, tax and Senator DeMint: abortion, proposition 8, and the visitor center.

Local Franchisee in Multi Unit Franchise Magazine

The summer edition of Multi Unit Franchise Magazine featured an interesting story on one of my local Roni Deutch Tax Center® franchisees, Heather Spell. You can click here to download a PDF of the article, but my favorite part was the following quote from Heather about what she does for fun in her free time. “Dine out, visit my vacation home in Hawaii, and of course, work! If work isn’t at least a little fun, then you probably shouldn’t be doing it.”

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Tax law professor expelled from Republican party post for supporting Obama.

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Looking to hit 7 figures and beyond? Learn from 3 women who are already there.

Advantages & disadvantages of owning a franchise.

Are men the new women? Only if hyperbole is the new logic.

The new tax bill.

Business Tips Video on WatchMeFranchise.com

In addition to my own personal blog, the Roni Deutch Tax Center® also sponsors WatchMeFranchise.com, a business and franchise video blog. In addition to videos with individual franchise owners, they also post a monthly business tips video with advice for small business owners. Embedded below is the newest video that covers 10 common mistakes that new business owners make.

FranTrends Ranks Roni Deutch Tax Center®

I am excited to announce that FranTrends, a franchise industry review website, has reviewed my tax franchise business, the Roni Deutch Tax Center. In their franchise verification reports, they rank a franchise companies in 12 key areas then give it a final score. My franchise received a cumulative score of 107.6, which is pretty impressive considering 120 is the highest you can receive. This is especially amazing since my franchise is so new. I am glad to see that we are being well received in the industry. Below is a screen capture of the verification report, but you can see the real thing at FranTrends.

Check Out Watch Me Franchise!

Ever wondered what it would be like to open your own franchise business? Well check out the new Watch Me Franchise blog put together with the help of two new Roni Deutch Tax Center franchisees, Heather and Gentry Spell. The blog has been following the Spells from day one before they even signed a franchise agreement, and will continue to follow them through the end of tax season. Along with videos and pictures of the Spells, the blog also features informative articles and blog entries useful to any one considering investing in a franchise. Check out WatchMeFranchise.com today!

Roni Deutch Tax Center Offering Incentive To Veterans

My tax center recently put out a new press release on the financial incentives being offered to veterans. "Roni Deutch Tax Center, the nation's leading tax preparation franchise, built from the success of its founder Roni Deutch in saving American's millions of dollars in back tax liabilities, announced today it will participate in a national program designed to help military veterans become franchise owners." You can read the full release at Franchise.com.

More Franchises Seeking Charitable Causes

According to the Wall Street Journal, more franchise businesses are adding a new element to franchise owners, a designated charitable cause. The tactic known as cause marketing is a process where businesses link themselves to a special charity or social causes and raise funds through promotions and sales. The tactic isn’t new to big corporations like Nike, Home Depot, etc, but it’s beginning to gain popularity in franchise businesses. Having a designated charitable cause allows companies to unite franchisees in various markets, convey a consistent image, and boost their profiles and bottom lines. "It's increasingly popular among franchise organizations who are trying to penetrate local markets, who are trying to bond with their franchisees and who are trying to help franchisees to attract and retain employees," says David Hessekiel, president of Cause Marketing Forum Inc.

Returning Veterans Becoming Franchise Owners

According to US Franchise News, there is an increasing number of veterans returning from the Middle East who are looking to purchase small business franchises. Currently there are over 350 veterans who own a small business franchise in the United States as a result of the Veterans Franchise Initiative (VetFran), which offers discounted franchise fees to veterans who want to purchase a franchise business. The program was given the Support Sector Champion Award from the U.S. Department of Veteran Affairs at the nation’s capital. "The VetFran program is our way of saying thank you to veterans for their service," said Matthew Shay, president of the IFA. "They deserve our help in pursuing the American dream of business ownership because without them to protect our nation, such opportunities would not exist."

The Roni Deutch Tax Center is also a proud member of the VetFran program. To learn more about the special benefits we offer to veterans, please check out the Roni Deutch Tax Center Franchise website.

US Government Sues Jackson Hewitt

According to the IRS’s website, the United States government has filed civil injunction suits against five corporations that operate Jackson Hewitt tax preparation franchises as well as 24 individuals managing or working at the franchises. The suit claims that the franchises "created and fostered a business environment" at the Jackson Hewitt franchises "in which fraudulent tax return preparation is encouraged and flourishes." Some examples of the fraudulent preparation include phony W-2 forms, fabricated businesses and business, massive fraud involving the Earning Income Tax Credit, etc. The suits also allege that Jackson Hewitt franchise managers and employees got kickbacks from customers to file fraudulent tax returns.
The suit is seeking more than $70 million in losses to the U.S. Treasury Department, as well as seeking court orders barring the franchisees and other defendants from preparing tax returns for others. "When practitioners prepare a false tax return, it has a corrosive impact on the tax system," claims IRS Commissioner Mark W. Everson. "I am deeply disturbed by the allegation that a major franchisee of the nation’s second-largest tax preparation firm is intentionally preparing improper tax returns with inflated refunds. I’m particularly concerned that many taxpayers of modest means could actually end up owing the government thousands of dollars if they claimed an improper refund."