Like things aren't bad enough with 100 degree heat all over the country, crappy stock market performance and an election coming up where neither candidate is, say, unscary. Gilbert Poon, a Middlebury, CT. of Tempe, AZ. based franchisor GameTruck had a car accident that totalled his truck and damaged his GameTruck vehicle as well. Poor Gilbert had enough on his plate with that--he spoke to the franchisor and said he would have to cancel all his scheduled upcoming parties. ""NOT SO FAST" said Scott Novis, the company CEO. Between corporate and a great Indianapolis franchisee, equipment was loaned and sent immediately to allow Gil to fulfill all his party commitments. I have been in franchising for 30 years--and the best systems do this! Help their zees and rally other zees to help each other. No wonder franchising's slogan is "you are in business for yourself but not by yourself".
What can one say? I was one of those caught in the "bubble" of 2000. My Dad, may he rest in peace, told me in no uncertain terms to dump everything I had because it was hugely overvalued. What did he know? All he had been through was the Depression, when his parents lost 6 apartment buildings, and WWII where he won 3 medals. Why listen to him? Oh yeah that. Happy Father's Day and appreciate your Dads because they are likely a lot smarter than you. I lost a bundle by not listening to mine.
And now my friend Les Walgreen (yes that Walgreen) remarks that Facebook has already lost the equivalent of two whole Walgreen companies!! What is going on people? As a franchise expert I look and listen to franchisors every day struggling to keep their brands going and thriving. More importantly I look at their franchisees who struggle at the street level. What company that "might have future big revenues" can be worth $19 billion? Go buy a sandwich or a cookie from a nice franchisee and come back down to earth!
Just when you thought that you couldn't find one more burger chain out there, here comes another-and a really good one too! The secret? If the meat is awesome, and the buns and bread fresh, one can make a very creative and outstanding burger. Especially if one understands what the consumer and the franchisee want. The franchisee wants to partner up with a franchisor who "gets it"--and the best way to do that is find someone like Michael Ansley who is not only the CEO, founder and franchisor of Bagger Dave's Legendary Burger Tavern but is also a multi-unit franchisee of Buffalo Wild Wings. Who would know more the challenges facing franchisees? And the customer? They just want that delicious food-hot and fresh in a nice environment at a decent price point. Do that and you got yourself a winner! Nice work Michael and team.
Enjoyed helping to host a luncheon Wednesday for a group of very sharp franchise suppliers so they could show off their wares to franchisors. The seminar is called Over the Top, and the lunch, held at Benny's Chophouse of Chicago, was delish--but the info was even more so. 19 franchisors got quite an education on where things are today in terms of lead generation and knowledge of who your franchisee candidates are and how to speak to them. These lessons came from FranConnect, Greenbaum Marketing and Management 2000--all speaking about different disciplines in the sales process. One thing is for sure....if you can't get potential candidates to your website you are doomed. AND, they need to click all the way through--or there is no point. That's where SEO and all that good stuff comes in. We see here that SEO can be utilized in our press releases, hopefully sending eager beavers right to the website of our client--however, after that, then what? If you can't close the deal, and if the zee can't get the financing, all is for naught. Yes getting those SEO terms down etc. is all good and well, but in the end, can your model hold up? Can you sell it? And can your franchisee make money? Those are the real first steps! This seminar is happening in Phoenix and Atlanta as well.
Franchises cost money--there I have said it. You pay a franchise fee, and usually a royalty of about 5% and an ad fund fee of 2%. There is a reason this--you are "buying" a name, a brand, or the opportunity to get in on the ground floor of a coming brand--if, and only if, you help the system grow. The training, the tools. the outsourced vendors like ad agencies, PR firms, the baker! This is what you are buying. If you are a new franchisee still struggling go to your franchisor for help and guidance.
Too often about 1/3 of the franchisees in a system (we don't know why but it seems this number is pretty consistent) complain and blame their franchisor for all their problems. Sometimes it was just a case of poor due diligence on the part of the franchisee. They didn't get enough info before they bought--they didn't really see and "feel" the company and the concept--was it something they knew they could do for many years to come? Sometimes not.
A good franchise prospect does their due diligence on the company and with the zees--and now I suggest they should do this on themselves too!! See the lifestyle that might lie before you for 10-20 years. Is this the real you? Your family on board with it? Just because the pretzels look and smell delish doesn't mean you should be selling them after smelling them!! Think things over carefully. Like a marriage, you and your franchisor are in for the long haul--hopefully.
For franchisors who have a lot of these 30%--look into Franchise Rescue Team. Started by attorney Anthony Calamunci, this is a group comprised of several long time franchise experts that will come in for a flat fee and get these franchisees moving up or moving out!