Be Wary of the Passionate Franchise Founder
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Free PDF Download The Traits That Define Good Leadership - By Ed Teixeira |
When a candidate visits a franchisor's corporate headquarters, particularly a small or medium franchisor, there are several reasons to meet with the franchise founder(s):
• A new or medium size franchise doesn't have the accomplishments or track record of a mature franchisor. As a result the individual who started the franchise can add credibility to the franchise.
• The founder typically built the business from the ground up and has hands-on experience in operating and growing the business. This can provide knowledge to a candidate.
• Franchise candidates recognize the founder as a true entrepreneur compared to franchisor staff.
• They want to meet the key decision maker in the organization.
Although, these are valid reasons and may have merit, there is the potential for the franchise candidate to be overly influenced in his or her decision-making after meeting the person who started the franchise.
The individual who started a franchise that was built upon their initial business operation has a great deal of pride in their accomplishments. This pride on the part of the founder can manifest itself in a high level of confidence in the franchise opportunity. They may unwittingly or by design impress a candidate in a way it overly influences their decision about purchasing the franchise.
Jeff Johnson, CEO of FranSurvey, which has surveyed franchisees on behalf of hundreds of franchisors, feels that franchise candidates should focus on the quality of the franchise investment. "During the franchise process a candidate will meet some very charismatic people, including the franchise founder. This is why it's important for candidates to focus on the quality of the investment. The best source of that information is from existing franchisees."
When meeting with a franchise founder here are some tips that a candidate should keep in mind:
• A successful business and a subsequent franchise operation is usually the result of hard work, risk and significant sacrifice by the founder. In a similar vein, operating the franchise may be much more difficult than whatappears.
• The enthusiasm and self confidence of the founder can be contagious. The franchise candidate should maintain a realistic attitude regarding their own strengths and weaknesses.
• Since the franchise founder has achieved success operating the business they may portray operating the franchise as being easier than it really is.
• Promises of unwavering franchisor support by the founder, although well intentioned, needs to be validated by existing franchisees.
• Unfortunately in some franchise organizations the founder may not be in touch with the bad as well as the good in the franchise operation.
Individuals who convert a business into a franchise are understandably proud of their achievements. Most franchise founders have a strong desire to build their franchise company into a highly successful organization. Prospective franchisees need to keep these factors in mind when meeting with a franchise founder.
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Free PDF Download The Traits That Define Good Leadership - By Ed Teixeira |
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About the Author: Ed Teixeira RSS for Ed's articles - Visit Ed's website Ed Teixeira is a franchise expert with over 32 years in the franchise industry. During his career, Ed has operated franchise companies in diverse industries. He has conducted franchise transactions in Asia, Europe and South America. Ed is the author of "Franchising From The Inside Out" and has spoken on the subject of franchising in the United States and overseas. Ed is currently the President of FranchiseKnowHow,LLC which operates a website that publishes newsletters for franchisees and franchisors.He also provides consulting services. FKH is located in Stonybrook, NY. www.franchiseknowhow.com Ed can be contacted at 631-246-5782 and at franchiseknowhow@yahoo.com. Click here to visit Ed's website. How Franchisee Startups Can Accelerate Sales Growth How to Negotiate Your Franchise Agreement The Franchise Contract Understanding the Personal Guaranty Creative Franchise Marketing Can Help Boost Franchise Sales How Franchisees Can Gain More Time and Develop Their Employees |
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