Disillusioned Franchisees
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.
Franchise Education
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?
Good Franchising Practice
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.
I don’t want to be a Franchisor anymore!
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. Continue reading
Franchising considerations
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. Continue reading
What’s so special about franchising?
Franchising, when executed properly, can be the most powerful method of building a business empire. It is a perfect example of the power of leverage.
Every franchisee is a self employed person in their own right. Every franchisee, as a small business person, is equally motivated to succeed in their own business within the franchise system. The Franchisor has created a win-win situation!
A business that franchises should ideally be driven by a desire and a need to service clients. Continue reading
Franchisee Feedback
I’ve posted a blog asking for Franchisor Feedback on the biggest daily 
challenges they face in Franchising.
Being a consultant to both Franchisors and Franchisees I certainly see both sides of the coin.
I have become passionate about making sure that only people really suited to franchising, proceed with the process. I have seen so many unhappy franchisees who are in, to put it bluntly, rotten franchise systems, where the only thing the Franchisor cares about is lining their own pocket.
Franchising should be so much more, and this is why Continue reading
Franchisor feedback
As an ex-franchisor myself, I recognise that being a Franchisor can 
sometimes be a lonely place.
Not all Franchisors have Franchise consultants on hand who understand their day to day challenges. Accountants are great business advisers when it comes to figures and general business matters – but let’s face it, most Franchisor headaches result from Franchisor / Franchisee relationships, and I don’t think Accountants usually have the answers to those sorts of issues.
I’m really interested to hear back from Franchisors about the day to day challenges you have in running your business. Continue reading
Is Franchising passive income?
Any person thinking that they can get into Franchising as a way of exiting business and having complete passive income should think again.
This rule applies to both potential Franchisors and Franchisees alike.
Some potential franchisees imagine that because they are buying into an established, systemised business, that their business will thrive with little effort from them personally. Conversely, they believe that as they will have huge support from The Franchisor it will result in less personal effort. It doesn’t quite work this way.
Every business needs input and effort. Continue reading
Can only large companies franchise?
Some of the best “franchise-able” businesses I have come across have been businesses with relatively low turnovers but high profit margins. 
Some businesses I am approached by have been turning over large sums of money.
However, when we stop to have a look at some of these businesses in detail we find that their processes are extremely complex with a high level of skill/training and expertise needed.
This immediately reduces their “franchise-ability” potential. Continue reading
