Creating a Franchise
Creating a Franchise
The first question you have to ask if you are considering creating a Franchise system is “why?”
“Why?” is the most underrated question in the world, regardless in what language it is asked. We often blindly follow paths that are firmly worn into the fabric of society, by those who have gone before us, under the unqualified assumption that this is the “right” path or the “only” path.
Building a Franchise system should not be embarked upon lightly. It is not an easy path and not always a profitable path. It’s a pathway that picks up people, their partners, children and associates, along with their individual dreams, goals, and aspirations and, as an undoubtable requirement on any journey, their baggage.
As a Franchisor you have to be strong of character and also be prepared to help those less courageous than you are. People who buy a Franchise are braver and more courageous than those who never go into business, but they are not as brave as you, the creator of the Franchise. You will need to be firm, but understanding. You need to be a leader but not a boss, open minded but focussed, altruistic but protective of what is yours.
Franchising is the finest system of business growth for many businesses, but not for all. Other methods of expansion can be much easier and more lucrative. A whole range of considerations need to be investigated besides the obvious legal and accountancy fields.
Your own attitudes, aptitudes, commitment and psychological make-up cannot be determined in a spreadsheet, nor in a Franchise Agreement. The process that is used to select appropriate Franchisees also needs to uncover all of these personally traits; picking the wrong Franchisee can spell disaster for him and his family. This error would be at the minimum end of a collateral damage scale, with the failure of the full system a possibility, at the other end of the scale.
Most franchise consultants and advisors come from a legal or accountancy background and are focused on these areas of building a franchise system. Obviously, getting the legal structures in place and guaranteeing that the legal requirements will stand any attack is of major importance. But a franchise system is not a legal system; it is a business system that operates within strict legal parameters.
Other franchise consultants may also come from a limited business background with very little breadth of experience or knowledge. Others may have taken a course or two in franchising or marketing but, again, their breadth of knowledge may be lacking.
Establishing a franchise system needs to be considered carefully from a wide variety of perspectives. There are a large number of people who will be affected if you win or fail and these must be taken into consideration before commencement. A good franchise system must be a truly symbiotic relationship between the Franchisor, the Franchisee and the consumer. If one party is succeeding, or suffering, the system is doomed to disaster.
It is very important that one always examines “The Worst Case Scenario” in every endeavour. Be honest and look at the ‘WCS’, not only from your personal perspective, but also from that of those who will also be affected in some way by the, hopefully, fictitious disastrous worst case event. Once you have examined this carefully and come up with a contingency plan that will mitigate the fallout, you put this piece of paper in a drawer and never have to look at it again. You will now know that should the worst happen it is not a life-threatening event for any of the potential victims.
Most franchise developement and consultants will have had many years of experience in working with individuals and companies in developing Franchise systems. The decision to go Franchising is not theirs; it is you, the client, who will make that decision but it is the duty of the consultant to ask their clients to be aware of the consequences of their actions in a franchise environment.
Creating a Franchise - To learn more about this author, visit Colin Mackie's Website.
Like this article? Share it with your friends
Creating a Franchise
The first question you have to ask if you are considering creating a Franchise system is “why?”
“Why?” is the most underrated question in the world, regardless in what language it is asked. We often blindly follow paths that are firmly worn into the fabric of society, by those who have gone before us, under the unqualified assumption that this is the “right” path or the “only” path.
Building a Franchise system should not be embarked upon lightly. It is not an easy path and not always a profitable path. It’s a pathway that picks up people, their partners, children and associates, along with their individual dreams, goals, and aspirations and, as an undoubtable requirement on any journey, their baggage.
As a Franchisor you have to be strong of character and also be prepared to help those less courageous than you are. People who buy a Franchise are braver and more courageous than those who never go into business, but they are not as brave as you, the creator of the Franchise. You will need to be firm, but understanding. You need to be a leader but not a boss, open minded but focussed, altruistic but protective of what is yours.
Franchising is the finest system of business growth for many businesses, but not for all. Other methods of expansion can be much easier and more lucrative. A whole range of considerations need to be investigated besides the obvious legal and accountancy fields.
Your own attitudes, aptitudes, commitment and psychological make-up cannot be determined in a spreadsheet, nor in a Franchise Agreement. The process that is used to select appropriate Franchisees also needs to uncover all of these personally traits; picking the wrong Franchisee can spell disaster for him and his family. This error would be at the minimum end of a collateral damage scale, with the failure of the full system a possibility, at the other end of the scale.
Most franchise consultants and advisors come from a legal or accountancy background and are focused on these areas of building a franchise system. Obviously, getting the legal structures in place and guaranteeing that the legal requirements will stand any attack is of major importance. But a franchise system is not a legal system; it is a business system that operates within strict legal parameters.
Other franchise consultants may also come from a limited business background with very little breadth of experience or knowledge. Others may have taken a course or two in franchising or marketing but, again, their breadth of knowledge may be lacking.
Establishing a franchise system needs to be considered carefully from a wide variety of perspectives. There are a large number of people who will be affected if you win or fail and these must be taken into consideration before commencement. A good franchise system must be a truly symbiotic relationship between the Franchisor, the Franchisee and the consumer. If one party is succeeding, or suffering, the system is doomed to disaster.
It is very important that one always examines “The Worst Case Scenario” in every endeavour. Be honest and look at the ‘WCS’, not only from your personal perspective, but also from that of those who will also be affected in some way by the, hopefully, fictitious disastrous worst case event. Once you have examined this carefully and come up with a contingency plan that will mitigate the fallout, you put this piece of paper in a drawer and never have to look at it again. You will now know that should the worst happen it is not a life-threatening event for any of the potential victims.
Most franchise developement and consultants will have had many years of experience in working with individuals and companies in developing Franchise systems. The decision to go Franchising is not theirs; it is you, the client, who will make that decision but it is the duty of the consultant to ask their clients to be aware of the consequences of their actions in a franchise environment.
Creating a Franchise - To learn more about this author, visit Colin Mackie'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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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey'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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