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!
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!
Hats still off to Debbie Moss and her amazing team that make the IFA annual convention so cool--I can only guesstimate that there were upwards of 2500 people at this event in Orlando Feb. 11-14 but they make it look easy. An APP that we could download this year and last is BEYOND convenient. You can see at a glance where and when everything is going to be happening then just click on what you want to attend and it makes a little calendar for you. Wish they had that the year I slept through the First-Timers Reception which I was an Ambassador to!! Jim Amos, CEO of Tasti D-Lite, pictured to the left, received the Hall of Fame award, the highest honor one can receive in franchising. Although he left me out of his thank you speech :-) I still adore him and it seems most everyone else does too. No dry eyes in the house as a fantastic video of his young years was viewed along with his military accomplishments and then business. A terrific gala topped the program off with The Franchise All-Star Band (franchise people with REAL talent) and a song dedicated to ME-Unchained Melody sung by the incredible Ron Taylor of Sandler Sales Institute.