“The Ostrich method” does not work well in business generally and particularly in franchising.

Burying your head in the sand and hoping your problems will go away will NOT WORK.

Being in denial of re-occurring issues in your franchise will only lead to a massive blow out of the issue …whatever it may be.

Remember, that since March 2008 when the new disclosure changes occurred, you must disclose

ALL YOUR FRANCHISEES’ CONTACT DETAILS – Past and present.

There’s no picking the best of the bunch to act as advocates to franchise prospects as has happened in the past.

Typical “Ostrich triggers” for  Franchisors are ; Read the rest of this entry »

Have you ever considered franchising your business? Not every business is suitable for franchising and not every business owner is the right person to be a Franchisor.

Creating a system requires both an investment of finance and time and external professional direction. No business should proceed down the franchising path without a full analysis and awareness of their business.

Some Pre-Franchising FAQ’s

 Q. Can I put together my own franchising system? Read the rest of this entry »

The Australian National Mediator Approval Standards defines mediation as ;

“A process in which the participants, with the support of a mediator, identify issues, develop options, consider alternatives and make decisions about future actions and outcomes. The mediator acts as a third party to support participants to reach their own decision.”

Mediation is used successfully with relationship issues, workplace relations between employees, B to B disputes and certainly in franchise disputes. Read the rest of this entry »

Are you enticing new Franchisees?

…..and if so are you breaching The Franchising Code of conduct?

“Want to go to Hawaii?” the headlines shout.

Is this an advert for a travel company or an airline?

No, this advert appears in the Business and Franchise Opportunities in a newspaper column. The “carrot” is, if you buy this franchise for $ 200K, you will also get a “free holiday.”

This type of advertising for new franchisees is disturbing and hopefully not the beginning of a new trend. Read the rest of this entry »

Some Franchisors can find formulating KPIs to be a confronting exercise but the benefits to both Franchisor and franchisee from having measurable performance targets should not be underestimated.

Establishing KPI’s in your franchise often means going back to basics, and exploring the fundamentals of your franchise.

Are your franchisees achieving what they want from their business? or are they complaining that they can’t make any money?

Is your system flawed? and if it is are you brave enough to firstly acknowledge that there is an inherent problem and THEN seek professional advice to restructure?

Read the rest of this entry »

How many of you know of a disillusioned franchisee? Let’s face it, the current affairs programmes are full of them.

A Franchisee is a business owner who owns a franchised unit, for example a Bakers Delight, Subway and many many more less well known brands.(please note I am not suggesting that any Bakers delight or Subway franchisees are disillusioned!)

As a franchising consultant, I see a fair few franchisees, and due to the nature of my work, many of them are very disillusioned.

Read the rest of this entry »

Much is discussed by franchising “experts” and government bodies about introducing more legislation to improve the world of franchising.

But how much would increased legislation actually reduce franchisee risk?

Potential Franchisees are advised to seek professional advice from a lawyer, accountant and consultant. How many lawyers and accountants are really “au fait” with franchising practice?

How many professionals would admit to clients that their franchising knowledge is minimal?

And how often do potential franchisees not seek any advice at all?

Read the rest of this entry »

The International Franchising Association Code of Ethics states that the following points are essential ingredients in good franchising;

Trust, Truth and Honesty – Are the foundations of franchising. 

Mutual respect and reward – Result in winning together as a team. 

Open and frequent communication – Successful franchises thrive on it! 

Obey the law – This refers to all laws including compliance to the franchise system. 

Conflict resolution – Deal with potential conflict swiftly and effectively.

Read the rest of this entry »

I don’t want to be a Franchisor anymore!

As a Franchisor have you ever felt like that?

The answer to that could depend on:

• The length of time that you’ve been a Franchisor.
• The number of franchises in your network
• Your initial reason for franchising in the first place
• The level of support you have from family
• Your internal management structure.
• The strategic planning within your business
• Your commitment to goals
• Vision
• Succession planning

This is a lengthy topic, but one that my day-to-day contact with Franchisors leads me to believe deserves attention.

It is well acknowledged in the franchising sector that Franchisees go through developmental stages;

Initially there is dependence on the Franchisor.

This changes to independence where the Franchisee can feel that they no longer want to be a Franchisee. They can “do it on their own”

Ideally, the Franchisee, with guidance, works through this stage and the end result is interdependence, which is the ideal working relationship between Franchisor and Franchisee.

Greg Nathan refers to these stages as The Franchise E-Factor.

However, little has been researched or documented on the development stages of a Franchisor.

We would LOVE to have your contributions and personal experiences as Franchisors on this topic and have prepared a questionnaire, which you can complete anonymously on this subject.

Please download the questionaire by clicking here and return to us.

http://franchisingplus.com.au

Author ; Carolyn Dufton Dip.Bus(franchising)

Carolyn is the principal of FranchisingPlus. FranchisingPlus is a franchising consultancy advising and mentoring on all aspects of franchising on a national and international basis.

The content displayed is franchisingplus copyright and can only be re-published with the permission of the author. www.franchisingplus.com.au/contact.htm.

Many people have aspirations of franchising their business but have absolutely no idea at all of the reality of doing so.

 Some people have franchised their business but are not calling it a franchise when legally they should. They think they can choose how to categorise their business, whereas the reality is that franchising is a highly regulated industry. If a business falls within the technical definition of a franchised business, one cannot choose to call it anything else and therefore all franchising procedures should be implemented.

 Others sensibly admit that they know nothing about franchising but would like to know more.

 Franchising can indeed be a minefield. The worst “minefield experiences” are with businesses that have attempted to franchise themselves with no professional advice or input from the experts.

 They have opened themselves up to potential litigation by breaching the Trade Practices Act every which way. Disgruntled franchisees will have no problems “bringing the Franchisor down” as a result of sloppy legal and operational documentation or lack of it. The sad part is that the rectification of such cases often costs the Franchisor much more in the end than if the business had sought professional advice from the very start.

 Potential Franchisors tend to be very entrepreneurial. They have big plans for their businesses.

This is great, when the Franchisor has;

• Created a proven profitable business system

• done their homework
• researched franchising as a business system.
• Is prepared to invest in franchising advice to create a professional system.

 BUT unfortunately and all too commonly it is sometimes just a case of ;

• A business trying to sell a “good idea” rather than a proven business operation.

• A business gambling on the success and selection of their franchisees on a hunch.
• Territories being chosen with the flick of a pen and no research data.
• The franchising documentation is created with the help of the local conveyancing lawyer.(at best)
• An attitude of “Everything will work out fine.”
• ” I can do it myself. I don’t need help. Think of the money I will save.”

 There certainly are fantastic opportunities available for a good Franchisor who is keen to achieve a  “win win” situation with potential franchisees.

It is crucial however that any potential Franchisor should consult with experts on how to structure the new franchised organisation in order not only to comply with legislation but just as importantly,   to create a harmonious and potentially very profitable enterprise.

 It is advisable, that before a business launches into the franchising process; they should produce a thorough business plan to self assess their viability to franchise.

There are products available to help Potential Franchisors self assess the suitability of their business and themselves to franchising. Franchising is not just about the business, it’s also about the Franchisor’s ability to create and maintain relationships.

 If the business owner then/still feels that they have a potentially “franchiseable ” business, they can then proceed to the next stage, which is for a franchising consultant to research and explore with full consultation with the client, the feasibility and viability of franchising the business.

 Franchising is a very specialised area and it is not for the half hearted. Any business vaguely considering franchising should research everything that can be found about the topic. 

Most importantly, businesses must do their sums. They must know how much the process is going to cost.

Time and money spent on franchising a business professionally and with lengthy consultation and consideration is truly an investment. If done professionally, the returns both financially and personally, should far exceed the expenditure.

http://franchisingplus.com.au

Author ; Carolyn Dufton Dip.Bus(franchising)

Carolyn is the principal of FranchisingPlus. FranchisingPlus is a franchising consultancy advising and mentoring on all aspects of franchising on a national and international basis.

The content displayed is franchisingplus copyright and can only be re-published with the permission of the author. www.franchisingplus.com.au/contact.htm.