There’s Truth Within the Franchise Spin. Here’s How to Find It.

duediligence1 (FranchisePick.Com) Related stories: Make & Take Gourmet: Meal Prep Franchisor Takes Failures in Stride, Why the Meal Prep / Meal Assembly Kitchen Franchises are Failing. Part 3, Patrons of Failed Franchise Blast Make and Take Gourmet Franchisor Bellso

There are franchise opportunities that enable thousands to live the American dream of business ownership and financial independence. There are others that entrap would-be entrepreneurs into their worst nightmares, costing them their savings, homes, reputations, marriages, and more. How can you tell the difference?

Franchise Tip #1: Don’t put aside your skepticism. In fact, put it on steroids. Double or triple it. Contrary to what the franchise salesmen tells you, scrutiny does not kill the Success Fairy.

Franchise Tip #2: Assess credibility. Remember that much of your initial decision and future happiness is dependent on the honesty of the organization you join and of those who run it. In addition to analyzing the typical aspects of concept, market, cost, etc., assess the credibility of what’s stated in the franchise marketing and corporate communications.

Franchise Tip #3: Ask lots of hard questions. Take frequent steps back. Write down assertions made as fact and independently verify or disqualify them later. Read between the lines of press releases, franchise marketing materials and interviews. Inconsistencies may tell you a lot about the credibility and/or honesty of the company and those who run it.

Scrutinizing public statements: Is their story consistent?

Here’s a current example. The June/July 2008 issue of the CNY Business Exchange features an interview with Michele Bellso, founder and president of the small NY-based Make & Take Gourmet meal prep franchise:

Michele Bellso, founder and president of Make & Take Gourmet, says the company isn’t even close to reaching its full potential. Since May 2006, the company has grown to include 15 stores in five Northeast states, including two in Onondaga County, six in Rochester and one in Auburn, Watertown, and New Hartford.

…We are on track to have 100 stores in three years,” Bellso says…”

The franchisor states that they have 15 new franchise stores and will have 100 stores in three years. A review of the company website and a Google search of articles shows a wide range of inconsistencies:

March, 2007: An article on Bellso stated “between 60 and 70 Make and Take franchise-owned stores will open in 2007.”*

November, 2007: A company press release stated that they’ve “already opened 23 locations across the country.”**

May, 2007: An interview with Bellso stated she has “15 stores in five Northeast states”***

June, 2007: The company website lists 13 stores open with one “coming soon.”

* * * * *

Questions to ask:

What happened to the 60-70 franchises that were to open in 2007?

If 23 stores opened by Nov., 2007, why are there only 13 locations in June, 2008?

Are these inconsistencies the result of unforeseen circumstances, poor planning ability or a penchant for exaggerated claims?

Before you take out that second mortgage to buy a Make & Take Gourmet franchise, you’ll want to have good answers to these questions.

WHAT DO YOU THINK? SHARE A COMMENT BELOW.

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Cena Meal Prep Franchise by the Numbers

February 24, 2008 by Sean Kelly  
Filed under CENA

(FranchisePick.Com) Related Articles: Cena Meal Prep Franchise by the Numbers, Cena Meal Prep Franchise Boasts Slump-Defying Sales Model, Cena Meal Prep Franchise by the Numbers

Cena, a growing meal prep (”Meal Assembly Kitchen”) franchise opportunity was founded by foreign language teacher Tammy Badinger, who opened her first unit in 2005 and began offering franchises within less than a year. Unlike many others in the industry, Badinger is pretty proud of her numbers. We’ve extracted the Cena franchise and industry numbers from a recent article (Meal-prep chain serves up success) in the Spokane Journal, transposed them for no good reason, and display them here for your review and comments (please leave below):

2005: Year first store opened

2006: Year first franchise opened

22: Cena locations currently open

7: Cena franchises to open this month*

17: Cena franchises to open in 2008*

1,123: meal-preparation outlets in the U.S. in 2006 **

1,353: meal-preparation outlets in the U.S. in 2007**

14: entrees available at Cena stores at any given time

$260: Typical cost to assemble 12 meals that serve 2-6 people each

$4: What that comes out to per serving

$15: Typical cost of a Gourmet to Go pick up meal for 2-3 people

$5-7: What that comes out to per serving

$200K: Estimated cost to open a Cena franchise location

$170,000: The cost of inventory, equipment, and furnishings.

$30,000 The Cena franchise fee
5% Ongoing Cena royalty fee (on gross sales)
2% Ongoing Cena marketing fee (on gross sales)

10: # of years of franchise agreement

3-4: # of employees of typical Cena meal prep franchise outlet

1200 - 1800: square footage of average Cena franchise location.

100: # of regular customers spending $150 a month needed for a franchise to be profitable [Badinger]

9: # of months it “generally takes” for franchisees to reach profitability [Badinger]

25- 65 Age range of typical customer, predominantly women with families. [Badinger]

6: # of Cena Franchising corporate employees.

+20%: Cena Franchising corporate revenue goal for 2008.

0-1: Number of years operating history prior to franchising
* Projected **Easy Meal Prep Association

Are you familiar with the Cena or the Cena franchise? Is Cena succeeding where other meal prep franchises are struggling? Leave a comment; share your thoughts.

Cena Meal Prep Franchise Boasts Slump-Defying Sales Model

February 24, 2008 by Sean Kelly  
Filed under CENA

(FranchisePick.Com) Related Articles: Cena Meal Prep Franchise by the Numbers, Cena Meal Prep Franchise Boasts Slump-Defying Sales Model, Cena Meal Prep Franchise by the Numbers

When other “meal prep” or “meal assembly kitchen” franchises seem concerned with holding on to what they’ve got, meal prep franchise Cena is planning to increase corporate revenue by 20% in 2008. Cena Franchising Founder Tammy Badinger plans to open 7 new franchise locations in the next month, and 17 total this year. Cena’s founder claims they know how to get customers in the door, and maximize their revenue by offering a variety of options, according to an article (Meal-prep chain serves up success) in the Spokane Journal:

Badinger says Cena should outperform the industry.
She says that Cena stores have profit centers that in some cases bring in as much revenue as the meals themselves, making the franchises unique in the industry. Those profit centers include full wine shops, bakery products, side dishes, and facility rentals.
Cena even sells its own signature coffee, an all-organic, free-trade blend roasted here by 4 Seasons Coffee Co., of Spokane. The coffee is fresh roasted to order for each Cena outlet.
Badinger says Cena prides itself on its selection of “a little better wines at very competitive prices,” and franchisees are encouraged to help customers pair wines with meals.
Cena outlets also can serve wine in the stores, so customers can sample wine as they put meals together.
Cena facilities can be rented for private parties, Badinger says. Corporations sometimes use a facility as a new twist on an office party, or as a team-building exercise.
“When you’re done, you have something to take home,” Badinger says.
She says franchisees also are encouraged to hold special events such as local wine tastings.
The events, she adds, aren’t very profitable, but introduce potential customers to the Cena concept.
“Our forte is getting people in the door,” she says. “Cena is a fun place to be. You can have a glass of wine and get some work done.”

…In addition to having customers put together meals themselves at the stores, Cena also offers a service, called Gourmet to Go, in which it prepares meals for customers to pick up, and that segment of the chain’s business is growing, Badinger says.

Read the entire article.

Are you familiar with the Cena or the Cena franchise? Can this schoolteacher - who franchised within a year of opening - succeed where others are struggling? Leave a comment; share your thoughts.

Cena Meal Prep Franchise Claims Business is Booming

February 24, 2008 by Sean Kelly  
Filed under CENA

(FranchisePick.Com) Related Articles: Cena Meal Prep Franchise by the Numbers, Cena Meal Prep Franchise Boasts Slump-Defying Sales Model, Cena Meal Prep Franchise by the Numbers

Despite reports of slowing sales, franchisees in distress and the cooling of the “meal assembly kitchen” franchise before it finished preheating, the founders of meal prep franchise Cena are bullish on growth, according to this article in the Spokane Journal:

Meal-prep chain serves up success
Spokane-based Cena has sold franchise rights for 33 outlets
What began here as a single meal-preparation store on the North Side in 2004 has quietly become a fast-growing franchisor with 23 outlets in 17 U.S. states and one Canadian provinceTami Badinger, who owns the company, called Cena Franchising Inc., with her husband, Bruce, says the couple always planned to create something more than a single store.

We knew from the moment we thought of it, we wanted to franchise,” she says.

The following year, they sold their first franchise, to a couple in Elk Grove, Calif.

Now, with 22 franchise openings plus the original store under their belts, the Badingers plan to expand further, despite industry projections for slow growth in their niche. Seven Cena outlets are expected to open across the U.S. within the next month or so, and franchise rights have been sold for four other new stores, bringing the total number of franchises the company has sold to 33.

In all, Cena Franchising expects to open about 17 franchise outlets this year, Badinger says, giving it a total of 40 outlets. Read the entire article.

Are you familiar with the Cena or the Cena franchise? Can this schoolteacher - who franchised within a year of opening - succeed where others are struggling? Leave a comment; share your thoughts.


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