Interesting little battle shaping up in the fast-food realm, and it isn't between restaurants -- it is within one. According to the Associated Press, Burger King (BKC) franchisees are suing the company over its recent $1 double cheeseburger promotion.

The reason for the lawsuit is that the franchisees are losing money on the deal because the company is setting maximum menu prices, which Burger King is not allowed to do. The National Franchise Association (NFA), which represents more than 80% of Burger King's U.S. franchise owners, says that the promotion is forcing restaurant owners to sell the quarter-pound burger at a 10-cent loss. One Burger King franchisee said that the burger in question typically costs franchisees $1.10.

Continue reading Burger King franchisees sue over $1 burgers

Burger King franchisees sue over $1 burgers originally appeared on BloggingStocks on Fri, 13 Nov 2009 11:20:00 EST. Please see our terms for use of feeds.

There are certainly many advantages to getting a franchise. You receive leverage from higher marketing dollars, an existing platform that increases the speed to market, a brand, and helpful techniques and systems to improve success.

Great, huh? Well, as with any investment, there are risks. And, you need to get a sense of these before acquiring a franchise.

This means conducting an extensive due diligence. So, here are some tips:

Continue reading Entrepreneur's Journal: The hidden dangers of getting a franchise

Entrepreneur's Journal: The hidden dangers of getting a franchise originally appeared on BloggingStocks on Sun, 25 Oct 2009 17:40:00 EST. Please see our terms for use of feeds.

Krispy Kreme Doughnuts' (NYSE: KKD) stock has had a nice run of late. It's doubled so far on the year-to-date frame. Is there something to this story? Before, there was nothing. Krispy Kreme has been a very troubled business, and it would be very difficult to convince me otherwise. But, have things changed?

Well, net income did drop in Q1. Krispy Kreme said it made t $0.03 per share. Last year at this time, the doughnut guru earned $0.06 per share. Although the profit decline isn't attractive, I liked the comps. Same-store sales at company locations increased over 2%.

Continue reading Krispy Kreme's stock is up this year -- buy after Q1 report?

Krispy Kreme's stock is up this year -- buy after Q1 report? originally appeared on BloggingStocks on Thu, 04 Jun 2009 16:20:00 EST. Please see our terms for use of feeds.

Starting a business can take months -- and can be expensive. Also, it's tough to anticipate some of the problems you'll run into. That's why buying a business can be a good alternative.

So where do you get financing? One approach is to get a Small Business Administration loan.

Basically, this is like any other business loan. However, the main difference is that the loan is guaranteed up to 85% from the SBA, which is a federal program. Because of this, there are usually advantages versus conventional loans, such as:

• Longer terms (10 years for the business, and 25 years if there is real estate involved).
• Lower interest rates (prime rate plus 2.25% to 2.75%)
• Lower down payments (20% to 30% or so). In fact, the down payment also includes seller financing.

OK, what does it take to get such a loan? Let's take a look.

Continue reading Entrepreneur's Journal: Using an SBA loan to buy your dream business

Entrepreneur's Journal: Using an SBA loan to buy your dream business originally appeared on BloggingStocks on Sun, 17 Aug 2008 18:00:00 EST. Please see our terms for use of feeds.

Rocky Mountain Chocolate Factory (RMCF) provides some sweet relief originally appeared on BloggingStocks on Fri, 11 Jul 2008 13:37:00 EST. Please see our terms for use of feeds.

Though you probably could manage to have Starbucks [SBUX] erect a store in your living room if you could demonstrate the commercial value of that location, Starbucks does not sell franchises, contrary to what many believe. Joshua Kennon of About.com discusses Franchise Value (as opposed to franchising in the sense of a company that sells the right to run locations to individuals) in an article using SBUX as its case study of an excellent business with very strong brand awareness and loyalty.  

A friend of mine, visiting Seattle for the first time some years ago, backed me into a corner insisting that Starbucks just had to have some extra-special ingredient that forced her to keep going back for more. Caffeine? I ventured. No, not that, she insisted. Maybe she was on to something after all: a little something called brand awareness?

No you can't have your own Starbucks, but ... originally appeared on BloggingStocks on Fri, 30 Jun 2006 17:15:00 EST. Please see our terms for use of feeds.