How to Evaluate Franchise Support
How to Evaluate Franchise Support
That's a great question. One of the main benefits of being in a franchise system is that you don't have to figure everything out on your own. With a little research, you'll find a wealth of information about levels of support. That information will help you pick the franchise system that's right for you.
Before you get started, take a few minutes to think about the word "support" and what that looks and feels like to you. Does it mean someone holding your hand through the pre-opening phase, or does it mean someone handing you a manual and checklist and letting you go? Does it mean an "in-market" field support person living in your market, or are you willing to accept less frequent visits from field staff who fly in from a home office? The better you understand what's important to you, the more likely you are to get it.
Next, check the UFOC for lawsuits, closures, and transfers of existing units. While not a direct indicator of level and quality of support, they can at least serve as an early warning system. If a company has high levels of lawsuits or closures, it's a good indicator that you'll want to look at everything a bit more closely - including support.
Then, review the list below to determine which items are most important to you. Once you've reviewed the list, start talking with the prospective franchisors and their existing franchisees. The more people you can talk to, the better. Finally, look for it in writing. Does the franchisor have manuals for training you? For training your employees? How often are they updated? Do people use them? If not, why not?
Finally, remember that no franchise system is going to have everything. A young franchisor will generally have fewer of these, and that's why it costs less to get into their system. A more mature franchisor will generally have more of these, and that's why it costs more to get into their system. Here's the list:
Protection of Intellectual Property
* Trademarks and copyrights
* Willingness and ability to protect intellectual property from infringement
Real Estate
* Verification of suitability of potential locations
* Preparation of construction documents
* Preparation of signage construction documents
* Relationships with contractors
* Lease negotiation
* Construction oversight
* Discounted pricing on materials
* Checklists to help keep you on track
Purchasing and Distribution
* Vendor screening
* Vendor negotiations
* Vendor management
* Getting the product to you
* Getting it to you at a cheaper price than you could on your own
Marketing
* Clear, intelligent marketing and advertising plan
* Branded marketing and advertising materials
* Ability to produce custom materials for you if needed - how much does it cost, and how long does it take
* Development of a marketing plan for your business
* Guidance to help you maximize your return on invesment on marketing dollars
* Grand opening support
* Regularly-scheduled marketing coaching
* Discounted pricing for media and printing
* Advertising cooperatives
Operating Systems
* Outlines the standard procedures for running your business. Usually in manual form.
Training Systems
* Initial training at the franchisor's training location - how long? How good will you be when you're done?
* Ongoing pre-opening training - does the franchisor have pre-approved training locations, either franchisee or company-owned, where you can continue practicing what you learned at your initial training?
* Grand Opening Training - does someone come out to help you make the final push to getting your business open? How long do they stay? How long have they been with the company and what is their level of experience?
Business Operations
* Visits from field staff.
* How often do you see someone?
* What happens when they come?
* Back office support staff
* Maximizing profitability
* Budgeting and forecasting
* Local, Regional, National, and/or International workshops and conferences
Enforcement of Standards
* How clearly do they communicate standards? Are they written down? Talked about regularly?
* Is there a clear, objective system for measuring compliance to standards?
* How often are standards checked to verify compliance?
* Once a franchisee or vendor is found to be in non-compliance, what action does the franchisor take, and how quickly do they take it?
* Do they leave room for innovation within acceptable guidelines?
Above all, remember this: This is your business, not the franchisors. Support to them might be giving you all of the advice and resources you need to be successful. Support to you might be much more hands-on. Every franchisor has franchise partners who will not be satisfied unless the franchisor does things for them.You have to find a balance between advice and tools, and getting the job done.
How to Evaluate Franchise Support - To learn more about this author, visit Bob Richman's Website.
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I've narrowed my search down to three franchises. All of them promise great support. How can I get a better idea of what I'll really get from each of them?
That's a great question. One of the main benefits of being in a franchise system is that you don't have to figure everything out on your own. With a little research, you'll find a wealth of information about levels of support. That information will help you pick the franchise system that's right for you.
Before you get started, take a few minutes to think about the word "support" and what that looks and feels like to you. Does it mean someone holding your hand through the pre-opening phase, or does it mean someone handing you a manual and checklist and letting you go? Does it mean an "in-market" field support person living in your market, or are you willing to accept less frequent visits from field staff who fly in from a home office? The better you understand what's important to you, the more likely you are to get it.
Next, check the UFOC for lawsuits, closures, and transfers of existing units. While not a direct indicator of level and quality of support, they can at least serve as an early warning system. If a company has high levels of lawsuits or closures, it's a good indicator that you'll want to look at everything a bit more closely - including support.
Then, review the list below to determine which items are most important to you. Once you've reviewed the list, start talking with the prospective franchisors and their existing franchisees. The more people you can talk to, the better. Finally, look for it in writing. Does the franchisor have manuals for training you? For training your employees? How often are they updated? Do people use them? If not, why not?
Finally, remember that no franchise system is going to have everything. A young franchisor will generally have fewer of these, and that's why it costs less to get into their system. A more mature franchisor will generally have more of these, and that's why it costs more to get into their system. Here's the list:
Protection of Intellectual Property
* Trademarks and copyrights
* Willingness and ability to protect intellectual property from infringement
Real Estate
* Verification of suitability of potential locations
* Preparation of construction documents
* Preparation of signage construction documents
* Relationships with contractors
* Lease negotiation
* Construction oversight
* Discounted pricing on materials
* Checklists to help keep you on track
Purchasing and Distribution
* Vendor screening
* Vendor negotiations
* Vendor management
* Getting the product to you
* Getting it to you at a cheaper price than you could on your own
Marketing
* Clear, intelligent marketing and advertising plan
* Branded marketing and advertising materials
* Ability to produce custom materials for you if needed - how much does it cost, and how long does it take
* Development of a marketing plan for your business
* Guidance to help you maximize your return on invesment on marketing dollars
* Grand opening support
* Regularly-scheduled marketing coaching
* Discounted pricing for media and printing
* Advertising cooperatives
Operating Systems
* Outlines the standard procedures for running your business. Usually in manual form.
Training Systems
* Initial training at the franchisor's training location - how long? How good will you be when you're done?
* Ongoing pre-opening training - does the franchisor have pre-approved training locations, either franchisee or company-owned, where you can continue practicing what you learned at your initial training?
* Grand Opening Training - does someone come out to help you make the final push to getting your business open? How long do they stay? How long have they been with the company and what is their level of experience?
Business Operations
* Visits from field staff.
* How often do you see someone?
* What happens when they come?
* Back office support staff
* Maximizing profitability
* Budgeting and forecasting
* Local, Regional, National, and/or International workshops and conferences
Enforcement of Standards
* How clearly do they communicate standards? Are they written down? Talked about regularly?
* Is there a clear, objective system for measuring compliance to standards?
* How often are standards checked to verify compliance?
* Once a franchisee or vendor is found to be in non-compliance, what action does the franchisor take, and how quickly do they take it?
* Do they leave room for innovation within acceptable guidelines?
Above all, remember this: This is your business, not the franchisors. Support to them might be giving you all of the advice and resources you need to be successful. Support to you might be much more hands-on. Every franchisor has franchise partners who will not be satisfied unless the franchisor does things for them.You have to find a balance between advice and tools, and getting the job done.
How to Evaluate Franchise Support - To learn more about this author, visit Bob Richman's Website.
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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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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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