One of the biggest ways to kill a business is by...
In 2002 I started my business and it took off with great success. I didn’t feel like I was working. I loved what I was doing. Our service was helping kids gain confidence and pursue their dreams. Appreciation and accolades from parents poured in. I felt fulfilled spiritually, not to mention that I was making a good income. My schedule was flexible and I was able to be home with my baby and toddler. There was no need to pay for daycare. I was at home for my kids and was able to build strong, healthy attachments that are so critical now as they enter their teens. I wanted to share this great joy with others.
I hired a franchise coach, went to seminars and read dozens of books. It took 2 years to create my franchise system. In 2009, I awarded my first franchise and have awarded 4 more since then. It’s been a wonderful journey and I’ve learned so much and I will continue to learn every day.
I’d love to share what I have learned in my five years as a franchisor.
The franchisee must have confidence in our brand and must embrace our brand culture and values. They need to be willing to follow our brand’s systems and rules. They should have family support.
Not everyone loves the same type of work activities that I do. It’s extremely important to paint a clear picture of the daily activities in our business model. The franchisee should list their strengths and weaknesses to decide which activities they want to do and which activities they will hire someone else to do. They need to calculate this cost into their cash flow projections.
As a franchisor I must be careful about earnings claims. I can provide a history of our earnings, but the franchisee must understand that success comes from their own efforts. They must be willing to take full responsibility.
The franchisee must understand the importance of local marketing. Our business is a service performed at the client’s home. There is no brick and mortar with a street sign. The franchisee needs to understand the marketing activities they will need to do and they must be comfortable with it.
Our trainers must be patient with training. They must explain clearly, give examples, allow for practice and check for understanding. We must follow up with a quality assurance program.
Always be available. The franchisee must feel comfortable seeking help or advice at anytime. Some people will not ask for help. They will flounder and feel isolated. Others may seek a lot of help. We need to be careful that we do not do their work for them because we run the risk of enabling them.
Use the operations manual and keep it up to date. It is an excellent resource. Notice that all franchisees have different needs and communication styles. Embrace their differences while keeping consistent in operations.
No Special Deals. The franchise fees, branding contribution and royalty fees must be the same for all. Negotiating special deals will create resentment among franchisees.
Keep ahead of the competition.
Embrace technology. It changes so quickly and there is always a better and more efficient way to make procedures easier.
Now I am enjoying the success of my franchisees. It's very rewarding. If you are sitting on the fence about buying a franchise don't wait too long. Take the leap and enjoy the benefits of the fruitful and fulfilling world of franchising.