Here’s Reality On How To Franchise A Business
‘How Do I Franchise A Business?’ Isn’t The Right First Question.
The most important question a prospective franchisor should ask first is NOT ‘how to franchise a business,’ but ‘SHOULD I franchise my business?‘ Prospective franchisors are usually successful business owners who are used to gathering information with questions such as ‘how do I?’ as opposed to ‘should I?’ But if you’re entertaining the idea of turning a business into a franchise offering, you need to think again. Franchising is a whole new game even for the most successful entrepreneur or business owner, and the facts of life in franchising are, yes, game changing.
Franchising is a river filled with piranha. If you ask ‘How do I franchise my business?’, you’ll get a lot of chattering teeth encouraging you to franchise while eating your bank account and perhaps your good business name as well. Franchise failure is real, and it’s eaten a lot of big names.
Here’s truth in advertising. If you engage us and either you or your business are not good candidates for franchising we’ll give you our opinion on that and give you the reasons why. Unfortunately, that’s not what you’ll find across the franchise consulting industry. What you’ll find instead is a bevy of consultants eager to engage on how to franchise a business rather than asking questions and offering food for thought. Why? Because there’s a large fee involved if you franchise. So, first and foremost, learn to protect yourself.
Never let anyone talk you into franchising. If you and your concept are quality candidates for franchising, we’ll work to help you discover that truth. If you and or your concept are not good franchise candidates, we’ll straight up tell you so. And again, we’ll tell you why. Then it’s your decision to do it or not do it.
Successfully franchising a business is like constructing a jigsaw puzzle. The simple answer to how to franchise a business is that all the pieces must be present and they must all fit together perfectly.
Demand A Truthful Feasibility Study, Not Something Called Feasibility That’s Just A Sales Pitch
We were the first consultancy to insist on franchise feasibility while others were, and still are, selling prospects on the idea of franchising. Now others imitate us in calling for feasibility. But when you look closely, they’re still in sales mode. The difference between feasibility and salesmanship is always evident. We have never told or encouraged a client to franchise a business, but we have often advised against it. When asked about how to franchise a business, we address the ‘should’ before the ‘how.’ Question whether you’re being sold on franchising or if you’re being presented with facts, truth and logic.
The Decision To Franchise Your Business Is Enormous. Investigate Fully!
Serious prospective franchisors appreciate our thoughtful approach to the subject. There are just too many ways to make errors in both the decision to franchise and the actual process of franchising. It’s too easy to be fooled by salesmanship and compliments. Read this article and you’ll understand how compliments can cause problems.
The failure rate when franchising a business is high. Give yourself every chance to succeed by doing things correctly from the start.
The Franchise Disclosure Document (FDD)
Specific legal documents are required to comply with federal (and many state) laws. Franchisors tend to dislike this intricate and expensive 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. For a better look at what you might be facing in terms of federal guidelines, read further here.
Your Job Is To Mentor Your Franchisees. Our Job Is To Mentor You.
If you, as a franchisor, are wrestling with problems that can be solved more easily 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. The most successful franchisors know not only how to franchise a business, they know how to stay on top. Clients appreciate that aspect of our practice.
Can You Make A Comeback After Poorly Franchising A Business?
Many franchisors stall or never get off the ground for any number of reasons including concept, planning, services and relationships. If you’re fighting fires or stuck in neutral, you can’t grow your business. 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 if possible. You’ll have the truth. Many have failed. Could they have been saved?
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.
A large part of building better franchise relationships and keeping them intact is the art and science of franchise best practices. We know and fully embrace this type of consulting. Read more here: 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. Jason Puleio, President, The Barker Lounge