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A keep it simple - Franchise

Written by: Andrew Edwards

Article Overview: The success of Microsoft has been to invest, effort in producing a good software package. That product is then duplicated across the globe onto every PC on every desk. That is the recipe for success that I try to copy in building a great franchise. 1) Have a long term goal in mind for your business. 2) Break the business down to the basics and build a working model with systems in place that have a proven track record. 3) Then find a way of marketing this to effectively copy the success on to others. 4) Harness the power of networking to build the brand far beyond what the original business on its own could have achieved.

A keep it simple - Franchise

Introduction

Many entrepreneurs seem scared at the idea of franchising. The day to day challenges of business seem enough of a challenge without complicating matters further by worrying about putting complicated networks together. For me the key is found in a quote by Dudley Daniel who said “Start the way you want to finish” He was speaking in the context of church planting, but the same principle applies equally well to franchising a business. If you know what product you have and what you want to achieve then you can plan to reach your goals step by step. In the clichéd of eating an elephant, one does it only bite at a time. The problem is not to get side tracked and loose the big picture of what you are trying to achieve long term.

Long Term Goal

As the business owner and architect your job is the “Big Picture”. To start with one has to get involved in the nitty gritty details of running the business, but this should never remain the goal. The Goal is to setup a successful business that has the potential to be duplicated. If you can’t achieve that then move on, and find one that you can. Why flog a dead elephant? Life is to short and there are too many other better opportunities.

Systems that Work

The key to a business that has potential to be copied, is, that it has solid workable systems. These system should be bullet proof and if possible idiot proof. The idea is to keep it simple, but instill a sense of importance to the systems being adhered to. If the systems are in place and they are effective it makes for a smooth operation and minimizes everyone’s stress levels, most of all the customers. Rather take more time in the beginning getting the systems to really work and be effective. The biggest headache will be trying to undo them once you have already duplicated them.

Copy your Success

Once you are sure that the system is working and the business has had time to build up a track record, it is time to look at moving into the next phase. Make sure that the business has a recognizable brand and identity. At this stage the whole business is small so it doesn’t seem worth the effort or cost, but remember start how you want to finish. If that means getting brand experts in to help setup the look and feel, of a top player in your market then that is the way to go. Why duplicate garbage, or build a network with no class and poor image? Remember again it’s the big picture. The big question at this stage is how can this concept be duplicated effectively? What marketing medium or process will allow the duplication process to flow smoothly? The eBook the “ideavirus” can be very helpful in stimulating creative new ways at looking at this problem. Each business is different and there will be a unique solution that will solve this problem. Don’t rush the process, but find a medium that works for you. Often the traditional way of doing things is not the most effective, plus that will only make you the same as your competition.

Build a Brand Network

Once you have found a way to duplicate your success you are entering into the most powerful stage. That is the power of networking. One person facing a problem can only draw on the strength they have as an individual. Two or more combine their strengths to form a powerful team that will always outperform the individual. The power of the internet comes from networking many computers together. Take away the connections between all these computers and its power is so greatly reduced that it has no power at all. This is the power that the franchise network has over the one man show businesses. Sure there are some great small businesses that have never copied themselves, but they are the minority. Having a national or global presence will always open more opportunities and markets. The internet has also made marketing globally the easiest it has ever been in history. Plus new powerful tools are being added daily to help the network builder.

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how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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