Franchising.com News for Franchises
Multi-Tasking: What It Takes To Be A Successful Multi-Unit Franchisee - Twenty years ago, franchising meant buying the rights to and opening a single unit or business. But a changing trend has taken hold during the last two decades. Today, it's not uncommon for a single franchise operator to have 5, 6, or even dozens of units. FRANdata research notes the number of multi-unit operators now tops 34,000, and those operators control more than 155,000 franchised units in the U.S. It's a growth strategy that has proven effective but it should be approached with caution.
Multi-unit operators are generally wired differently then their single-unit counterparts. Successful multi-unit operators are typically experienced, skilled, professional business executives who have chosen franchising as their business model. They possess the skills, training, capital, infrastructure, and vision to operate numerous units and have the ability to continue adding units to their portfolio--without stressing their organization or their stomach.
Service Based Franchising: Where The Action Is - Last week we ended our discussion of service concepts with the point that many of these businesses are based on customers making the choice to trade money (surplus) for time (deficit). The example we used was maid services, where time-starved customers spend money to buy time they can spend with their family and friends.
Other examples of businesses built on services that customers could perform themselves but choose to pay someone else for include lawn and landscaping services, residential painting, oil change, and installation of home entertainment systems.
Service Based Franchising: What Franchisors Want - When you first consider franchising as a business model, one of the choices that arises is which type of business, in which sector, suits you best. One basic choice is to make is goods or service; another is retail or home-based.
In previous months, we've explored ways to find the sector, and the franchisor, most likely to give you the best chance of success. More recently, in the previous four weeks, we've discussed the attributes franchisors look for in franchise candidates in the retail sector and in the home-based sector. Here we apply the same lens to the services sector.
Let's begin with the similarities. All franchisors want candidates who follow the system, pay royalties on time, possess marketing skills and savvy, know how to run a business, show leadership and growth potential, are good communicators, and are expansion-minded, community-oriented, and willing to give back to the system. Franchisors look for these skills whether you choose a service, retail, B2B, or other concept.
There's A Payoff For Home-based Franchising - As we examined last time, home-based franchising can be a great business model, but it's not for everyone. Working from home takes an organized self-starter who can get the job done despite what's going on around them. But for those who are self-motivated, can multi-task, and can balance working and living in their home, the benefits of a home-based franchise can add up to big success.
The choices for home-based franchising are varied and wide - and seemingly growing more by the week. These days there are all kinds of home-based franchise opportunities. Just a few examples include home decorating, home repair, home cleaning, healthcare, as well as a number of pet services. Most of these home-based franchises typically require a lower investment and often offer a more specialized service than their retail and commercial kin.
Home-Based Franchising - Overcoming Obstacles - Working from home. It sounds like a great idea to many people. A home-based business removes the need for a long and often frustrating commute through daily rush hour traffic. It can offer flexibility in your schedule like never before. No corporate red tape or office politics to bother with. You can exercise and workout from your home because the "office" is just in the next room. The list of positive attributes could go on.
What's more, today there are literally dozens of home-based franchising opportunities for you to explore - depending on your interests, skills, and abilities. As if all of that were not enough, the initial investment for a home-based franchise is usually significantly lower than, say, a retail franchise that requires leasing space and purchasing expensive equipment and supplies.
The Traits And Attributes Of A Successful Retail Franchisee - Last week we discussed the obstacles involved in becoming a retail franchisee. This week, we examine what traits and attributes franchisors with retail concepts look for in their franchisee prospects and candidates.
Follows the system - The franchisor's operating system has been developed, refined, tested, and proven over time in many locations. It works. And it's one of the major reasons you signed on to become a franchisee. The wheel has been invented. Your job is to ride it as agree to do when you sign the franchise agreement. Franchisors know that a customer entering any of their retail locations expects the product or service to be identical with that of every other location - and they expect their franchisees to deliver it the same way every day. Replication is the secret sauce of franchising. However, if you have what you think is a better idea, share it with your franchisor.
What Franchisors Look For In A Retail Franchisee - Last night, you and the family celebrated your birthday with dinner at your favorite sit-down restaurant, a well-known franchised brand. After the usual great meal -- including a hearty greeting from the host and the owner -- you stopped in at your favorite ice cream emporium, also a franchise. (We won't name names here; you know what you like!)
On the way home, your kids said they wanted you to own a restaurant and ice cream store "just like the ones we ate in tonight!" You laughed it off, but the next morning on the way to work, stuck in traffic, you began to wonder… "Wouldn't it be great to be in charge of my own business, serve great food, and become a place people love to come to for a good time? And think of all the money I could make! Is this something I should do?"
The Right Fit - Franchise Culture - It sounds cliched, but leadership really does begin at the top. It's the attitudes and behavior of the CEOs, VPs, and other executives who set the tone for how well the franchise brand operates and grows. What's modeled at the top trickles down to all other areas of the brand. Optimism, integrity, teamwork, and recognition are all characteristics of strong leadership.
Amazingly, leadership and a culture of healthy productivity are not that difficult to create. As you review franchise brands - talking to both franchise executives and franchisees - keep an eye out for the following signs.
The Right Fit - Franchise Leadership And Culture - Let's face it, if you are looking into franchising, there's a pretty good chance that one of the reasons is that you are in search of a "culture" or leadership style that is a better fit than your career has been providing you thus far. Maybe you're coming from a background of working for a heavy-handed boss or a system that rejected forward thinking. You're beginning to see that strong leadership and a good cultural fit are important for your personal and professional success. Many franchise brands can offer this.
When you begin searching for a franchise that might be a good fit for you, you will definitely want a sense of the system's culture and its leadership style. For example, when you begin dealing with the sales person, take careful note of their attitude, tone, and overall personality dynamic. Do they seem to really believe in the brand? Do they seem truly interested in telling you about the brand and determining if you would be a good fit? Chances are these "gatekeepers" are a reflection of the entire system.
Nontraditional Locations - One of the best ways for a new franchisee to get in on the action in franchising is by choosing a nontraditional location. Why? For starters, try reduced franchise fees, lower overall startup costs, smaller real estate fees (none for kiosks), fewer employees, and for some, the option of beginning part-time.
"Nontraditional" locations include airports, college campuses, sporting events, concerts, stadiums, hospitals, military bases, government offices, convention centers, highway rest stops and turnpike plazas, even large companies - anywhere large numbers of people congregate, pass through, or live.
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