Franchising a Business is both an Art and a Science
Franchising a business is a difficult journey on many levels. It requires insight, savvy, a good model, and certainly good guidance. Therefore, we approach franchising a business by examining whether or not a prospective franchisor should even take the journey. Carefully consider all of the following questions and elements.
Should you really franchise your business?
We ask a lot of questions. If you or your business are not good candidates for franchising you’ll know our opinion very quickly. If a consultant is selling you on franchising your business (which will be true in almost all cases) rather than asking lots of questions, start asking yourself why. Protect yourself, your money and your future and NEVER let anyone talk you into franchising a business. If you and your concept are quality candidates for franchising, we’ll work to uncover and discover that truth. If not, give our input some thought.
Franchising a business is like constructing a jigsaw puzzle. Hence, all the pieces must be present and they all must fit together perfectly.
Demand a truthful feasibility study focused on facts.
We were THE FIRST CONSULTANCY EVER to insist on franchise feasibility while others were (and still are) selling prospects on the idea of franchising just to earn a fee. Now, as is the case with so many of our methods, others imitate us in calling for feasibility. But when you look closely, they are still in a sales mode. The difference between honest feasibility and salesmanship is always evident. We have never told a client to franchise a business, but we have often advised against it. Always question whether you are being sold on franchising or if are you being presented with facts.
The decision to franchise a business is enormous. Take your time.
Serious prospective franchisors appreciate our thoughtful approach to decision making. As stated, we don’t tell people they should franchise, but we’re not afraid to advise against it if there are good reasons. Prospective franchisors often misinterpret complements about their business as signals to franchise. Read this article and you’ll understand how these complements can cause problems.
The failure rate when franchising a business is high. Give yourself every chance to succeed by doing things right from the beginning.
The Franchise Disclosure Document (FDD)
Specific legal documents are required to comply with federal and state laws. Many franchisors dislike this part of the business, but we see the FDD as the backbone of the franchisor’s statement. Therefore, we teach new franchisors how to use it to their advantage.
Your job is to mentor your franchisees. Our job is to mentor you.
If you’re wrestling with problems that can be solved with the help of a mentor then you’re wasting valuable time and doing yourself and your franchisees a disservice. Develop a friend who knows you and your business so you can sleep at night and grow your franchised network.
How to make a comeback after poorly franchising a business.
Franchisors stall for many reasons including concept, planning, services and relationships. If you’re fighting fires then you can’t focus on the planning and growth which is your job. There are three choices when things are bad: jump ship, ride it down, or solve the problem. If you call us, we’ll evaluate the problem and help you create a new plan.
Franchising a business demands strong relationships.
We understand Franchise Relationships. One of the worst illnesses for a franchise is the onset of hard feelings between a franchisor and their franchisees. If you’re suffering as a result of bad franchise relationships, you know it’s a nightmare and you know things have to improve. The first step is establishing calm and neutral ground so that people can begin to talk. Once people can talk, real issues can be exposed and improvements can be made. Franchise best practices are the result of both art and science. Here is further information and our consulting services for Franchise Best Practices.
Based on my experience with different franchise consultants, the Bibby Group’s approach is unparalleled. They understand the importance of the human element in franchising, and tailor their work accordingly. There is simply nothing ‘boilerplate’ about their approach. That was truly evident when I realized that the advice we were given initially created fundamental problems in our program and finally needed a different kind of advisor. Bibby Group came in, broke down our system, identified the holes, and very effectively changed our program from the roots up. They threw out the “boiler plate” and affected a program that was ‘us’. We have a trusted friend and advisor – and we are growing our franchise network.