Lesson #5: Learn The Fundamentals of Franchising
Lesson #5: Learn The Fundamentals of Franchising
“It was my philosophy to treat the franchise owners as partners,” says Joyce. It was with that attitude that Joyce set out to build hid coffee empire. After realizing that he had on his hands a profitable business that could be replicated across the country, he set out to implement a fair and equitable system of franchising. For roughly half a million dollars, 25 percent of their own assets instead of loans, anyone with a bit of business expertise could open up a Tim Hortons franchise. That money would provide everything within the building, the signage outside, and seven weeks of training at Tim Hortons headquarters in Ontario.
Today, only five percent of the company’s stores are corporate, while the rest are locally and operated owned franchises. With average profit margins ranging from 15 to 20 percent, owning a Tim Hortons franchise is a promising venture. In fact, more than half of all franchisees own more than one unit.
However, it has only become a profitable chain because of Joyce’s efforts. In fact, it was Joyce who first created a ‘Donut University’, a central training facility where new franchise owners could go to learn the ropes of running the business and operating in the fast-paced environment. He also established regular meetings, a toll-free phone line, and field evaluations to provide support to his franchisees. He was willing to do whatever it took to get his partners off the ground and running.
Despite the fierceness with which he ran his business, in expanding his franchise Joyce strove to always play fair. When a man from Nova Scotia once applied for a Tim Horton’s franchise and was turned down, he opened up a competing Robin’s Donuts store nearby and saw his business explode. This time around, management at Tim Hortons became interested in the man, and sought to open their own outlet nearby. Joyce, who had already left the company by this point, called his friends inside the business and convinced them to cancel the plans. He said it would be unfair to open a store and put out of business someone who had once tried to be part of the Tim Hortons franchise team.
In November 1996, Joyce became only the second person ever to receive a Lifetime Achievement Award from the Canadian Franchise Association. It was by understanding the needs of his franchisees and going above and beyond to meet those needs that Joyce saw his franchise expand.
Lesson 5 Learn The Fundamentals of Franchising
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Joyce was Tim Hortons’ original franchisee, but it would not be for long. After working under Horton for a few short weeks, Joyce immediately realized that he was on his own. “It was clear that he didn’t know the business all that well and couldn’t help me with any of the problems we were having,” says Joyce. “Tim had no expertise whatsoever, so the burden fell squarely on me.” As a franchisee who had little support from Horton, Joyce began to understand exactly what it would take to run a successful franchise. And, that is exactly what he set out to do after Horton’s death.
“It was my philosophy to treat the franchise owners as partners,” says Joyce. It was with that attitude that Joyce set out to build hid coffee empire. After realizing that he had on his hands a profitable business that could be replicated across the country, he set out to implement a fair and equitable system of franchising. For roughly half a million dollars, 25 percent of their own assets instead of loans, anyone with a bit of business expertise could open up a Tim Hortons franchise. That money would provide everything within the building, the signage outside, and seven weeks of training at Tim Hortons headquarters in Ontario.
Today, only five percent of the company’s stores are corporate, while the rest are locally and operated owned franchises. With average profit margins ranging from 15 to 20 percent, owning a Tim Hortons franchise is a promising venture. In fact, more than half of all franchisees own more than one unit.
However, it has only become a profitable chain because of Joyce’s efforts. In fact, it was Joyce who first created a ‘Donut University’, a central training facility where new franchise owners could go to learn the ropes of running the business and operating in the fast-paced environment. He also established regular meetings, a toll-free phone line, and field evaluations to provide support to his franchisees. He was willing to do whatever it took to get his partners off the ground and running.
Despite the fierceness with which he ran his business, in expanding his franchise Joyce strove to always play fair. When a man from Nova Scotia once applied for a Tim Horton’s franchise and was turned down, he opened up a competing Robin’s Donuts store nearby and saw his business explode. This time around, management at Tim Hortons became interested in the man, and sought to open their own outlet nearby. Joyce, who had already left the company by this point, called his friends inside the business and convinced them to cancel the plans. He said it would be unfair to open a store and put out of business someone who had once tried to be part of the Tim Hortons franchise team.
In November 1996, Joyce became only the second person ever to receive a Lifetime Achievement Award from the Canadian Franchise Association. It was by understanding the needs of his franchisees and going above and beyond to meet those needs that Joyce saw his franchise expand.
Lesson 5 Learn The Fundamentals of Franchising
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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