Success in franchising a business begins with truth not fantasy.
Successful business owners deal with facts not fancy and that’s how decisions about franchising a business should be made. But unfortunately, many entrepreneurs have been sold into the idea of franchising a business because it’s tempting. If you’re a prospective franchisor, bear this in mind: a respected, long lasting franchise brand is usually the result of careful analysis and decisions based on facts.
To successfully franchise a business, all the pieces must be present and properly assembled.
Demand Feasibility – Reject Salesmanship
Before franchising a business a serious feasibility study should be insisted upon. In too many cases a feasibility study is glossed over in the excitement of getting the franchising process underway. That’s a mistake. Worse yet is the situation in which a consultant or advisor twists feasibility into nothing more than a pitch to encourage franchising the business. If you sense that a consultant is talking about franchise feasibility but not delivering an honest assessment, then find another advisor. Smart business people will see the difference between honest franchise feasibility and salesmanship. Note: Bibby Group has never said to a prospective client: ‘You should franchise your business”. A consultant should mentor until ownership sees all sides and can make its own informed decision. Make an honest assessment before franchising your business.
Here is one last caveat. Successful entrepreneurs too often believe their achievements in business means they have the inherent skills to franchise on their own. That’s rarely true. Franchising a business is filled with traps and pitfalls. Just because a person is successful in business does not mean they are adept at franchising a business. The reasons are many and have nothing to do with the person’s skill in business. Franchising is generally not a DIY project.
Any business can be franchised, but often it’s not a good idea
Serious prospective franchisors appreciate our thoughtful approach to decision making. While we don’t encourage franchising a business, we are not afraid to advise against it if there are reasons to do so. Choose a consultant who is interested in YOU not just a fee. It’s important to understand that prospective franchisors can be blindsided by certain types of encouragement. Read this article. If you’re thinking of franchising a business you’ll shake your head in agreement while reading.
These client endorsements on the subject are testament to our concern and our approach. After careful study you alone should make the decision whether or not to franchise. Then it’s time to plan. Your plan must be excellent or the loss of time, money and energy will overwhelm you and you will quit.
Franchising a business demands proper structure and organization
Organization and paperwork are important to all businesses and franchising is no different. The pieces must fit together perfectly. Know that not every employee is a good match for a franchise organization. We’ll help you understand the kind of talent you need to avoid relationship problems in the future.
The Franchise Disclosure Document (FDD)
Specific legal documents are required to comply with federal and state laws. While many franchisors dislike this part of the business, we see the FDD as the backbone of the franchisor’s statement. You need an attorney who is an expert in franchising. Insist on that. It’s a complicated field.
Building the franchise network
When franchising a business, you reach your potential through the right mix of strategy, operations, marketing, training, support, relationships, and legal structure. Only when these elements are melded together will your franchise network grow and be strong. We will help you develop the best practices possible with these goals in mind.
Both new franchisees and new franchisors need mentoring as they grow
Successful franchising requires a great deal of problem solving after the launch. If you’re spending time wrestling with problems that a mentor could help solve then you are doing yourself and your franchisees a disservice. We’ll provide expert counsel so that you can sleep at night. Your franchisees need you for training and support in order to succeed. You need support as well. Our job is to provide that. You’ll have a friend who knows you and your business. One who has already been where you plan to go.
Making a comeback after franchising a business
Many new franchises stall and they do so for many reasons. Age, planning, services, relationships and litigation are just a few. If management is fighting fires it is not able to focus on planning. There are three choices when things are bad: jump ship, ride it down, or solve the problem with a new plan. If you choose the last option, we can help. We’ll do the triage, stop the bleeding and work out a new plan. This demands absolute commitment, but if you’re up to the task we’ll be there.
Franchising a business demands strong relationships
Franchising can be hard on relationships. To say differently is a lie. One of the worst illnesses for a healthy concept is the onset of hard feelings. To fix the problem calm must prevail and neutral ground has to be found where the parties can meet. We understand relationship counseling. Read this article on Franchise Relationships. Our message is cooperation not litigation. We are experts at analyzing franchise problems and we are a good alternative to litigation. If you are already franchising and are suffering bad relationships, you know it’s a nightmare. We can probably improve the situation if you are honest and willing.