WHY IS THE SUCCESS OF FRANCHISING SO AMAZING
WHY IS THE SUCCESS OF FRANCHISING SO AMAZING
Anyone that seriously looks at the growth rate of franchising as a method of marketing will agree that the growth has been phenomenal to say the least. Going back over 150 years ago when Singer Manufacturing began offering distribution licenses to individual in the promotion, sales, training and repairs of their sewing machines, who would have thought franchising would be what it is today? Over 2,500 businesses have expanded regionally, nationally or worldwide in the offer of their system of doing business.
Based on the present growth of franchising, by the year 2010, franchising will exceed $2 trillion. After the Federal Trade Commission in 1979 enacted Rule 436 which requires a franchisor to provide full disclosure to a potential buyer of a franchise, the FTC wanted to monitor the growth of franchising. Extensive studies were done and one amazing fact that was unexpected was revealed. The failure rate was only 3.7% in franchise businesses. The question was asked why so low?
The answer is very simple. Franchisors spend a great deal of time improving their system of doing business and documenting every aspect of the business so that franchisees benefit. Franchisors build their “Marks” so that the general public becomes knowledgeable concerning the products and services of the business. Most importantly, the Franchisor screens and qualifies every individual who makes an inquiry into the franchise business. A Franchisor has a profile of who they want as a franchisee. Not everyone can qualify or fit the profile. These individuals are not awarded the franchise.
Once a franchisee is selected an intense training program is provided that offers both classroom and hands on training. Every aspect of the business is presented in detail from pre-opening assignments, inventory control, accounting, advertising, marketing, hiring, daily procedures, purchasing equipment and supplies and much more.
To enforce the training, the Franchisor loans a copy of the operations manual to the franchisee. This manuals contains everything relating to the business from ad layouts to forms, specifications for equipment, and step by step procedures in the operations of the daily business. The Franchisor’s operation manual can be several hundred pages to well over five hundred pages. Some Franchisors provide pre-opening manuals, marketing manuals, and employee manuals.
In addition, to the training program and operations manual a franchisor will even be present for 2 to 5 days when the franchisees business is ready to open its doors for business. This support gives the franchisee a comfort zone for his business.
After the business has operating for several months, the Franchisor will visit the franchise operation to ensure that procedures are being followed and the business is maintaining the image that the Franchisor wants projected.
WHY IS THE SUCCESS OF FRANCHISING SO AMAZING - To learn more about this author, visit Ken Hollowell's Website.
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WHY IS THE SUCCESS OF FRANCHISING SO AMAZING? Series 3
Anyone that seriously looks at the growth rate of franchising as a method of marketing will agree that the growth has been phenomenal to say the least. Going back over 150 years ago when Singer Manufacturing began offering distribution licenses to individual in the promotion, sales, training and repairs of their sewing machines, who would have thought franchising would be what it is today? Over 2,500 businesses have expanded regionally, nationally or worldwide in the offer of their system of doing business.
Based on the present growth of franchising, by the year 2010, franchising will exceed $2 trillion. After the Federal Trade Commission in 1979 enacted Rule 436 which requires a franchisor to provide full disclosure to a potential buyer of a franchise, the FTC wanted to monitor the growth of franchising. Extensive studies were done and one amazing fact that was unexpected was revealed. The failure rate was only 3.7% in franchise businesses. The question was asked why so low?
The answer is very simple. Franchisors spend a great deal of time improving their system of doing business and documenting every aspect of the business so that franchisees benefit. Franchisors build their “Marks” so that the general public becomes knowledgeable concerning the products and services of the business. Most importantly, the Franchisor screens and qualifies every individual who makes an inquiry into the franchise business. A Franchisor has a profile of who they want as a franchisee. Not everyone can qualify or fit the profile. These individuals are not awarded the franchise.
Once a franchisee is selected an intense training program is provided that offers both classroom and hands on training. Every aspect of the business is presented in detail from pre-opening assignments, inventory control, accounting, advertising, marketing, hiring, daily procedures, purchasing equipment and supplies and much more.
To enforce the training, the Franchisor loans a copy of the operations manual to the franchisee. This manuals contains everything relating to the business from ad layouts to forms, specifications for equipment, and step by step procedures in the operations of the daily business. The Franchisor’s operation manual can be several hundred pages to well over five hundred pages. Some Franchisors provide pre-opening manuals, marketing manuals, and employee manuals.
In addition, to the training program and operations manual a franchisor will even be present for 2 to 5 days when the franchisees business is ready to open its doors for business. This support gives the franchisee a comfort zone for his business.
After the business has operating for several months, the Franchisor will visit the franchise operation to ensure that procedures are being followed and the business is maintaining the image that the Franchisor wants projected.
WHY IS THE SUCCESS OF FRANCHISING SO AMAZING - To learn more about this author, visit Ken Hollowell'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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Dianne CramptonDianne Crampton is an executive leadership coach, team consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. - Visit Dianne Crampton's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith'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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