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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Anne Barr
Anne 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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The Evan Elite Authors program is currently in beta phase. For details please contact us.
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Colin Mackie
(Visit Colin's Website)
Colin Mackie has had over 20 years of
experience in the franchise sector within
Australia and has acheived a number of
records that still hold today in this area
of business.
Colin's main expertise is in the area of
franchise development where his comapny
will assemble all of the required
documents after
a fair, equitable and viable franchise
concept has been investigated and accepted
as the best form of franchise system for a
particular business of industry type.
His personal business experience is
exceptional and covers such a wide area of
business types that his knowledge is often
seen as unequaled by many of his
associates.
One area where his company excells is in
the area of Franchisee Selection. Colin
feels that you should never 'sell' a
franchise, but select people who, after
investigation, will have an above average
potential for success.
Colin and Enterpise 21 have also developed
a system of personal development that is
essential in getting the attitude of
Franchisees and staff into a place where
sucess will be acheived much more easily
and with a much more positive attitude.
Colin is available for events and
workshops by request.
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