According to Entrepreneur.com, approximately 300 new franchise concepts are launched every year. The introduction of these newbies, along with other brands that fall under the category of emerging franchises, actually make up the majority of all opportunities.
Many experts agree that approximately 80% of all franchises have less than 100 units. That makes for an extremely competitive landscape, as each of these emerging brands vie for the attention of potential franchisees.
To succeed in the world of franchising requires continual improvements to the brand’s business model, growth strategy, systems and processes. To that end, I believe controlled growth is key to both initial and ongoing success for emerging franchise brands.
Having worked with many, many entrepreneurs exploring franchising as a business growth and expansion strategy, I’m often asked the question, “How does a new franchise company sell franchises without brand recognition?” Here are my thoughts…
Initially, the founder is the brand. It’s his or her passion for the business. It’s how he or she treats customers and employees alike. It’s how the business is promoted within the local market. Not just through typical advertising efforts, but through solid grassroots, organic efforts.
The initial franchise candidates are actually the “low hanging fruit” of the original business. These are the customers that inquire whether or not the business is a franchise and how they can learn more about owning their own. Most are interested because the business appears to be thriving and they’ve seen the owner (founder) time and again, always smiling and shaking hands. Public Relations efforts should ensure this occurs.
They admire the owner a great deal and will base their decision to open a franchise location, on the potential of establishing a relationship with the owner. They’ll compare the opportunity to other franchises and justify to themselves that they’re in on a ground floor opportunity with a direct line to the founder. As such, they feel their probability of success is greater because their location will be in the home office city and if they need help, they could easily approach the founder and the home office because of the proximity to their franchise location.
Ideally, the next few franchisees will also be in the same market as the original business and the first franchise location. It’s prudent to only expand locally until brand awareness begins to be achieved in the market and immediate suburbs or outlying towns, some semblance of an ad cooperative is developed for economy of scale, and support systems are perfected. Now the concept is ready to expand outside the initial market or hub.
However, it is often financial suicide to entertain requests from candidates all over the country. Instead, development efforts should be concentrated on one or two cities relatively close to the home office city. For instance, if original business and home office is in Houston, the natural progression would be to promote the opportunity next in San Antonio/Austin and Dallas/Fort Worth areas, and smaller markets in between.
My rule of thumb: Early-stage development should occur less than a 4-hour drive or a 2.5-hour flight from the home office market. Essentially, being able to provide hands-on support but still having the ability to make it back and forth in the same day or with just a one-night stay. Managing time is critical during initial development efforts.
As these markets start to become established with franchise locations, it’s advisable to promote the concept in another two or three markets. Maybe, explore another “hub” and “spoke” scenario. Let’s say, Greater Atlanta as the next hub.
Expansion efforts should be the same as they were in Texas and expansion out of that market shouldn’t occur until development moves from Atlanta to the suburbs – for instance, to Roswell, Alpharetta and beyond, for example to Savannah and Augusta. Then, as that occurs, the opportunity could be promoted close by in Nashville, Charlotte and Birmingham. Now, you see the spokes of national expansion beginning to form.
While this is going on, maybe inquiries start coming in from the Rocky Mountain Region. The Greater Denver Area would naturally become the hub as the gateway to Wyoming, Utah, Montana and into Idaho. Initially, locations should be developed in downtown Denver and out to the suburbs – Boulder, Centennial and even into Fort Collins and Colorado Springs. All the while building brand awareness.
It’s all about controlled growth and the founder exhibiting tremendous restraint in expanding too fast and in areas far away from his core group and subsequent hubs to be able to provide ample support, create ad cooperatives and build the brand geographically. Chances of franchise success are far greater at all levels of the franchise organization within the parameters of a controlled plan of development.
So, to answer the often-asked question directly, I suggest everyone in the system having a clear understanding of the founder’s vision. If it includes anything but a controlled development plan with his or her firm commitment to actively participate in the franchise sales process, the chances of selling the first ten to twenty franchises will be a frustrating, monumental task.
The results? Most likely the brand will immediately miss franchise development goals. Stakeholders will be upset as expectations are repeatedly missed. Before one knows it, the franchise system is scrambling to recover. Resources will be thrown at various ways to turn things around. Decisions will be reactive to the next fire that is burning or of a knee-jerk nature out of shear frustration. Little if anything will be done proactively with a plan. It’ll be akin to playing not to lose instead of playing to win. Although, I’m not sure what a tie relates to in business, so I must consider anything less than a win, a failure.
To many, Sunday is considered the end of the weekend. To me, it’s the start of a new week, a new beginning. I love the quiet and solitude of Sunday mornings as I’m awake by 5AM.
I use the time to think about possibilities as I catch up on reading, reviewing the many publications, newsletters & blogs to which I subscribe. Sunday afternoons are typically reserved for family time. Today that will include a traditional Italian family dinner at home – antipasto, lasagna, and garlic bread, all complemented with a bottle (or two) of Chianti.
Preparing for the week ahead is reserved for early Sunday evenings. This ensures a stress-free start to the week ahead. It goes a long way toward achieving goals.
Doing so actually helps plan for free evenings during the week. This allows me to maintain a work life balance as family commitments & events are firmly in place on my calendar, not to be interrupted by work.
“Sunday. Take it slow and give your soul a chance to catch up with your body.” ~ Anonymous
The last few hours before bedtime is my time to unwind. It’s personal time. I highly recommend for others to make sure to take similar time for themselves.
Be sure to fit it in after taking care of the things you need to get done such as getting the kids to bed, putting out the trash, etc. Essentially, make your last responsibility YOU! You can do so by…
Stop staring at the clock.
Taking a walk.
Praying for others.
Counting and reflecting upon your blessings.
Taking a hot bath with salts or bubbles.
Reading a book.
Meditating.
Doing yoga.
Listening to calming music.
“Let Sunday be a rainbow for the entire upcoming week.” ~ Anonymous
We don’t know what others may be going through, and especially during the holiday season when loneliness and depression are amplified. Let’s be there for them as we can. Let’s be thoughtful. Let’s be kind. Let’s be aware. Let’s make a difference.
It’s hard to believe Christmas is two weeks away. Many will, or already have shut down until after the ball drops in Times Square. But for current and aspiring entrepreneurs that’s most likely not the case.
All of the basic definitions and descriptions of being an entrepreneur aside, questions come to mind…
Even with work life balance seemingly achieved, can entrepreneurs actually shut down for extended periods of time? Or, do entrepreneurs find or make enough time every day to keep their minds stimulated whether for motivation, inspiration, or to drive thought and creativity?
I’m of the opinion that an entrepreneur’s mind requires almost constant stimulation, even when they’re relaxing. I believe it’s the entrepreneurial mindset to be productive regardless of what they may doing on a particular day.
A successful entrepreneur is quite efficient with his or her time. Certainly, they’re not ones to waste time. On the contrary, they will make time to achieve balance, fitting in things that are important to them, but not at the expense of their goals and obligations for the day. For instance, waking up at 4AM to workout, read or meditate several hours ahead of starting the work day or before the rest of the family awakens on the weekends
It’s their efficient use of time that enables them to fit in the things an entrepreneur can’t completely shut off. Like the nourishment and health benefits gained from food, water, and exercise, an entrepreneur’s mind needs mental nourishment. This is typically gained by consuming information for knowledge or that which may provide motivation and inspiration.
Just as our bodies require food & water everyday, an entrepreneur’s mind needs frequent stimulation. And just as we snack to quell a hunger pang, an entrepreneur needs to keep his or her mind fueled accordingly.
Even reading a motivational or inspirational quote or two, or watching a five-minute video will satisfy the entrepreneur’s hunger and thirst for anything that might help in his or her business endeavors – or possibly spur a new idea. One can only imagine what created the idea for the pet rock that generated millions of dollars in sales in its very short history.
Many find this time of year to be a low spot in their lives. Maybe it’s the stress of the holiday season or the end of year realization that goals have been missed. Or, thoughts turn to loved ones that are dearly missed…
Please know that whatever is weighing on your mind, there are bright spots as well. People that love you and that you love as well. There are solutions, no matter how dire your situation may appear. The key is to communicate! Talk to someone. Anyone. Just don’t keep it bottled up inside.
Certainly, the past couple of year has had us facing many uncertainties which, quite frankly took us on an emotional roller coaster. Mostly, the driving force has been fear. I’ve realized my own fear once I was able to admit being scared. Hey, at my age and the fact I’m not in good shape, I must be realistic. So, I’ve worked through my fear and in doing so, maybe I can overcome it. As fear is such a strong emotion that easily grips the soul, it will take time and patience to overcome such a grip.
Little by little I look forward to continuing to pry it away as fear is replaced by courage gained from confidence that fear is just a challenge to be conquered. The great thing is that some of the challenges don’t have to be tackled alone. Instead, collaborative efforts aligned with common goals truly exemplify the phrase, ‘strength in numbers’ and it’s that strength that ultimately conquers fear. Easier said than done? Possibly, but the alternative is being overwhelmed by fear and that, I’ve recognized is not living.
Loneliness, Depression, Fear: All Contribute to Mental Health Issues
Some, but not nearly enough has been written about entrepreneurs & celebrities and their battles with mental health. Loneliness and depression continue to occur within the ranks of both groups at an increasing rate and although failure (or fear of failure or a drop from superstar ranks) may be a driving force, it’s often not the sole deciding factor.
Is it the quest for perfection? Is it a blinding passion that nothing else is visible? Or a control issue where no one can do it better, so it’s dealt with alone?
Questions must be asked… Are current efforts enough to slow down the alarming rate of suicide among entrepreneurs – and often more in the spotlight than entrepreneurs, celebrities? As successful as they were, what were the deciding factors leading to the suicides of chef and TV personality Anthony Bourdain and fashion designer Kate Spade?
The deaths of Bourdain and Spade by suicide have thrown the spotlight on celebrities and depression. Instead of bringing them happiness and freedom, for many, being sought-after, rich and at the top of their game leads to an identity crisis and ruminations on their self-worth.
Recently, Naomi Judd, one-half of the iconic country music duo The Judds, reportedly died by suicide after years of struggling with mental illness.
This is a topic that must be brought front and center as we continue to grow as an entrepreneurial society with approximately 60% of the labor force in some type of self-sustaining endeavor whether it’d be as freelancers, sole practitioners, professional service providers, contractors, solopreneurs, and increasingly, musicians, artists, and authors.
Why is suicide more common among entrepreneurs, celebrities and creatives?
Noted Bollywood actor and television star Sushant Singh Rajput committed suicide a couple of years ago. His demise came as a shock to many as it was the fourth death of a famous personality from the Hindi film industry to pass away within months of each other.
Suicide is not a new issue, especially not in celebrity circles. These tragic deaths are also not limited by lines of work, ranging from boxers, designers, politicians and writers to actors, musicians and yes, entrepreneurs. What about influencers that have achieved celebrity status along with becoming rising stars in this relatively new class of entrepreneurs?
There was a string of influencer suicides in 2021. All unfortunate and tragic occurrences that took young lives, they left entire fan communities in mourning for their favorite stars who had secured places as standing icons of inspiration across fields, from beauty to travel to farming to sports. But what often goes ignored when reviewing these moments of tragedy is the kind of impact the internet is having on our mental health, every single day.
It isn’t just online celebrities or creators partaking in influencer cultures who are burdened with the impossible expectations and virtual validation that the internet has become the one-stop destination for. Sadly, it can happen, and is happening, to many of us plugged into social media.
There is no conclusive line on whether all these influencer suicides came about as a result of social media impinging on mental health. But there is no doubt about the fact that a direct or indirect correlation between our use (or abuse) of the internet and offline consequences.
So, why do wealthy people kill themselves? Don’t they have it all?
The reality we often forget, however, is that celebrities are human beings, just like us. “We only see one version – one of glamour, fame and fortune,” explains Nance Roy, Ed.D, Chief Clinical Officer at The Jed Foundation. They may struggle with relationships, finances and illness. Adds Dr. Roy: “Celebrities may feel more pressure to perform, to be perfect and to keep up their image for fans, often making it more difficult for them to reach out for help.” Another critical point: a person rarely takes his or her own life because of just one reason. “Suicide is complex, and we often don’t know all the factors involved.”
Bullying, even of celebrities and other notable individuals is certainly a contributing factor as it is for our younger generations. In fact, the 10th leading cause of death in the U.S. and 2nd among people aged 10 to 34 (a person dies every 11 minutes), suicide was identified by the National Institute of Mental Health as a major public health concern. Suicide rates increased 35% from 1999 to 2018, briefly declining in 2019. However, reports of depression and anxiety – risk factors for suicide – had increased during the pandemic.
Talking About Mental Health
We need to reduce the stigma faced by people experiencing a mental illness. How? As Martin mentioned, we need to talk about it. Stigma remains a major barrier to treatment and care. Dr. Fink agrees: “How do we grieve and process except by speaking and sharing with others?” When people die of cancer, their illness is almost always part the public conversation. From his Haitian roots, Dr. Arty provides a global perspective: “As a world community, we need to be bold and unashamed in discussing this sensitive and painful topic. The discussion itself may save a life.”
Dispelling myths is also key. A common myth? “Asking someone if they are suicidal will not increase the risk that they will die by suicide,” clarifies Dr. Roy. Inquiring about potential self-harm in a compassionate way may instead provide an opportunity for the person to express their feelings and reach out for help.
Even before the pandemic, millions of Americans were experiencing stress, trauma, anxiety, and heightened levels of depression. The COVID-19 pandemic exacerbated those conditions, creating an unprecedented mental health crisis across our country. Communities of color, frontline workers, health care workers, and individuals with eating disorders have been disproportionately impacted, and the rate of depression across the country has more than tripled compared to rates in 2019.
When entrepreneurs are facing failure, what happens next?
Sometimes no matter how well we plan and how much effort we dedicate to something, we fall short of our goal and the end-result causes a variety of challenges and problems. Ultimately, it can adversely affect financial position, reputation, relationships, team spirit and much more. It can also start to spiral into personal life and affect family, health and overall well-being.
Unfortunately, such situations are often perpetuated by denial by placing one own’s head in the sand.
Well, when our head is in the sand, our most vulnerable ass-et is sticking out in plain view. Some will laugh. Others will point and snicker, definitely telling others. And a few will take advantage of the situation and current position of vulnerability. Sadly, we put ourselves in that position. Not because we swung and missed. Not because we didn’t see the forest for the trees. And not because we just flat-out saw something that wasn’t there. Instead, it’s because we didn’t keep our head high, accept the situation, learn from it and move on, and with laser-focus. That is exactly what entrepreneurs do when faced with failure.
‘Why’ is a question that is always asked by those left behind or hurt by these suicides – the answer or answers would never make sense to someone who loves life.
If you or someone you know is in crisis, please call the National Suicide Prevention Lifeline at 1-800-273- TALK (8255). It’s free, confidential and available 24 hours a day, 7 days a week.
I look forward to thoughts on this with hope the discussion continues. Thank you!
Thinking ahead to the quickly approaching holidays, my mind wandered off this morning to the mindset of entrepreneurs and especially work/life balance, mental health, and other things that clearly could adversely affect entrepreneurs, and at a time when we need them most.
As it’s been said that entrepreneurship will drive our country’s recovery and growth over the next few years, we must do all we can to help support both today’s current and aspiring entrepreneurs alike. To that end, let’s revisit an article previously posted here on Acceler8Success Cafe about entrepreneurs and holiday weekends.
Entrepreneurs and the Holidays
We often hear about entrepreneurs being incessant about working long hours, never taking a day off, missing family functions, and essentially not having lives outside their own minds, and their work. Many have asked me if all of that is true? Well, for the most part it’s not true. Yet, there is some truth. Sure, some of it is myth as people just love superheroes and the stories about their seemingly superpowers including being able to function on little to no sleep.
Well, let’s dispel right now that entrepreneurs are anything more than human. Let’s dispel the myths that they can function without sleep, without rest, without knowing when to shut down for a day or two. But what we can do is learn from what makes them successful by ensuring sure they have the freedom and flexibility to do what they want to do, when they want to do it. It’s all about being positioned to have choices.
Award-wining author and entrepreneur, Richie Norton says it best, “Entrepreneurs don’t have weekends or birthdays or holidays. Every day is my weekend, my birthday, my holiday. OR every day is my workday. Mostly it’s a choice.”
Strategic Coach is one of the world’s leading organizations focused on entrepreneurial success. Within their resource section of its website is a blog post, Putting the Focus on Freedom. Of all the information about entrepreneurship that I have researched and read over the years, the opening question and statement in this post has become, in my mind the foundation of entrepreneurship to me:
“Why did you decide to become an entrepreneur? For most entrepreneurs, the answer is freedom. They wanted more freedom of time, money, relationship, and purpose when they took the leap to starting their own business.”
Another great organization focused on entrepreneurial success is The Lonely Entrepreneur. What I love about this organization and the writings of its founder, Michael Dermer is the reality of entrepreneurship and the inner workings of an entrepreneur’s mind.
There’s an article on The Lonely Entrepreneur website that always comes to my mind as a holiday weekend is in sight, What is an Entrepreneur? Dealing with the Holidays. This particular statement is embedded in my mind:
“As entrepreneurs, we have enough stress throughout the year trying to win customers, bring on employees, raise money and sign deals with vendors. We may have enjoyed, or even taken advantage of these breaks in our “past lives,” but once you become an entrepreneur, we can’t understand how this ever made sense. Most of us also don’t understand how the world could be so insensitive to our efforts by taking time off when we need to get shit done.”
I highly value both organizations and certainly, I respect both Michael Dermer and Strategic Coach founder, Dan Sullivan. I know that both strive to help entrepreneurs succeed. Both have approaches that make sense. Both speak and teach from personal experience and long distinguished careers of helping others succeed – thousands upon thousands! Yet, each comes from a different angle, so to speak. But I do appreciate that!
It truly has been a blessing and a privilege to have been exposed to both organizations. I have learned so much, and yet, have so much more to learn so I’m extremely grateful to see both founders’ continued efforts and commitment to entrepreneurial success. For me, it helps me balance perspective in my own work, and balance in my personal life.
Freedom. Choice. Balance.
Freedom is defined as the power or right to act, speak, or think as one wants without hindrance or restraint.
Choice is defined as an act of selecting or making a decision when faced with two or more possibilities.
Balance is defined as a condition in which different elements are equal or in the correct proportions.
Do you see where I’m headed with this? Are you wondering, what does freedom, choice and balance have to do with entrepreneurs and holidays, the basis and title of this article? To some it may mean nothing. To others, as it does to me, it speaks volumes. But what it means to you is the correct answer.
At 7:53 A.M, SUNDAY, DECEMBER 7, 1941, Pearl Harbor, Hawaii was attacked by the Imperial Japanese Navy. The first surprise attack wave targeted airfields and battleships. The second assault targeted other vessels and shipyard facilities. Many United States service men & women were injured or lost their lives on December 7, 1941. Let’s continue to keep all of them and their families in our prayers on this day of remembrance.
The following two paragraphs are from The Modern War Institute at West Point article, WHY DOES AMERICA REMEMBER PEARL HARBOR?
We remember Pearl Harbor because it was a pivotal moment in the modern history of America and the world. How America responded to Pearl Harbor would determine the outcome of the Second World War. But more than that, it would determine the fate of a dream that freedom and liberty could endure in this world.
It was a collision, not of two navies or two countries, but of two ideas. On one side, a nation in the midst of an era of repression and nationalist aggression. On the other, an idea, not even two centuries old, that people should be free and able to govern themselves. Could democracy win over totalitarianism?
A Proclamation on National Pearl Harbor Remembrance Day, 2022
On National Pearl Harbor Remembrance Day, we honor the memories of the 2,403 service members and civilians whose lives were cut short on that tragic December morning. We reflect on the resilience of America’s Armed Forces, who withstood the attack and built the most capable fighting force the world has ever known. In the wake of tragedy, these brave women and men — the Greatest Generation — answered the call to defend freedom, justice, and democracy across the Pacific, throughout Europe, and around the globe. Today, we carry forward their spirit of unity and their enduring resolve to protect the United States against those who seek to do us harm.
This commemoration is also a solemn reminder that our country is capable of achieving great triumphs coming out of dark moments. From the death and destruction at Pearl Harbor came victory over the forces of fascism. Fierce battles with the Axis powers gave way to diplomatic partnerships with strong allies. And from the darkness of World War II came the light of liberty and the establishment of a rules-based international order. Today and every day, we remember that the great and defining truth about our Nation and our people is that there is nothing beyond our capacity — we do not break, we never give in, and we never back down.
The Congress, by Public Law 103-308, as amended, has designated December 7 of each year as “National Pearl Harbor Remembrance Day.” Today, let us commemorate the patriots who were wounded and who perished on December 7, 1941, and continue to fulfill our sacred obligation to care for our service members and veterans and their families, caregivers, and survivors.
On this day of remembrance, I’m proud to share the American Flag for which it stands. I’m also proud to recite out loud the Pledge of Allegiance. Please join me in doing so. Even at a whisper or reciting it to yourself, speaks volumes…
I pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all.
Recently, as I working with a startup franchisor client, we were discussing franchise relationships. We spoke about franchisee and franchisor depending upon each other – the basis of the interdependency between franchisee and franchisor.
The examples of potential issues that could come up in the franchise relationship resonated well with our client. He stressed that he fully understood the need for open, transparent communications in order to address any issue while minimizing the potential for misunderstanding.
More importantly, he pointed out it was essential that he and his team be there for their franchisees from day one, AND every day thereafter. He went on to say that he wanted his franchisees to have a positive experience for as long as they were part of the brand.
He expressed his thoughts about the importance of the same being a structural component of building a strong culture for the organization. One that he believes should carry into each franchise location, and into each market.
I was in heaven as I immediately thought about an article I had written for the International Franchise Association publication, Franchising World back in 2014. The article focused on positively memorable experiences for franchisees. I wondered, had he read the article?
Well, he admitted that he had and that a copy was kept in his files as part of his research as he explored franchising his brand. He was adamant that creating positive experiences for franchisees would be paramount to his brand’s success, and ultimately to franchisees’ success.
He went on to tell me that in all the conversations he has had with franchisors, not one mentioned creating positively memorable experiences for their franchisees. Of course, most had mentioned the importance of the franchise relationship and that happy, successful franchisees were essential to franchise growth. They just hadn’t classified it within an experience factor.
I’m proud to say that our client thinks the franchise experience factor should be front and center. He intends to make it so as his brand, Taco Crave launches into franchising in 2023 with the most delicious Mexican street tacos I have ever tasted.
Positively Memorable Experiences… They’re Not Only for Customers!
A recent Google search for the phrase, “positively memorable experience” revealed results that were exclusive to customer experiences, and TripAdvisor.com garnered one-half of all results with the phrase. So, what causes customers to be so emphatic about their experience that they deem them “positively memorable?” Further, what implores them to share their thoughts so openly within a public forum?
To answer these questions, we must first examine the definitions of the words that make up this phrase as shown on Google:
Positively: In a positive way, in particular; with certainty, so as to leave no room for doubt; used to emphasize that something is the case, even though it may seem surprising or unlikely.
Memorable: Worth remembering or easily remembered, especially because of being special or unusual.
Experience: Practical contact with and observation of facts or events.
Now that we fully understand the meaning of these words, their impact when joined together truly makes sense, not only as a powerful phrase, but as a compelling statement. Clearly, this is a statement we should strive to hear from customers at every location within our franchise systems; such a clear, concise message is something we want to share every chance we get. It speaks volumes of the relationship between customer and business, one that both sides can agree on as a benchmark for excellence.
Utilizing this phrase as a filter, ask yourself if your franchise relationships merit the same sentiment. Better yet, imagine if your franchise relationships were deemed as being “positively memorable experiences.” Is this possible or even practical to consider? Of course, it is!
The Beginning of the Experience
Pick one franchisee and think back to the time when he or she (or they) first inquired about your franchise. What made him want to continue through the next steps of your franchise sales process? Now, think about what that franchisee must have been feeling along the way through the due diligence and validation processes. Imagine how she must have felt when she shared with family and friends what he was going to do. Then, after signing and remitting a check for the franchise fee and committing to the initial investment along with a five, ten or twenty-year term, imagine how he justified his decision to these same confidants.
Do you think this was all part of a positively memorable experience? I believe most within franchising would agree that this is the case, or the franchise sale would not have occurred. Yet too often the positively memorable experience diminishes from this point forward. Sure, there are many happy, satisfied franchisees across many great franchise systems. But how many, during or after the fact, would actually say the experience was positively memorable?
Moving the Positively Memorable Experience Forward
Just like at many of the hotels mentioned in the search results on TripAdvisor.com, there must be clearly defined criteria — a filter of sorts — that every customer, and in this case, every franchisee, must go through at every stage of the relationship and on a daily basis. This is essential to creating positively memorable experiences. Here are five tips that will help move toward this end.
Understanding the true meaning and spirit of interdependent franchise relationships. This must be shared and exemplified at every point of contact with franchisees.
Developing the right culture at all levels. Be careful — culture is also defined as bacteria. This takes time and commitment, and is a reflection of how people, whether franchisees, employees, suppliers or others, are treated at all times.
Creating an environment of truth, trust and transparency based upon open, two-way communication — the cornerstone of creating the right culture. Think of a three-legged stool that could hold a great deal of weight when fully intact yet would immediately fall under its own weight if one leg was compromised.
Establishing your franchise system as family. Treat them as such but understand that this is not the typical type of family of yesteryear with subservience to the head of the household. Mutual respect is paramount.
Building an environment of bottom-up profitability and growth with all parties to the franchise agreement and other related agreements focused on mutual goals and objectives. All must sing from the same hymnal, and not just for dress rehearsal; be sure to give them the hymn book.
“Certainly, validation and multi-unit ownership are strong indicators that positively memorable experiences exist within a franchise system.”
Another way to confirm the existence of these experiences is simply to ask your franchisees: Would you do it all over again? However, as a franchisor you must first earn the right to even be taken seriously if you ask this question. That starts and must continue by consistently working through the criteria identified above.
As you head down the path of creating positively memorable experiences with each franchisee, be sure to consider all touch points, even those beyond the obvious mediums of in-person, by phone and via email. Think digitally. How do you interact with franchisees on Facebook? How do you come across to your franchisees in LinkedIn discussion groups? Is there common courtesy? Are you proud of the interactions within these platforms?
Many will refer to all of this as being great in theory, and not really practical. But just think what could happen if every touch point were seen as another opportunity to create or enhance positively memorable experiences. How would that change the culture of your system? How would that lend credibility toward growing your brand? Think of the ripple effect.
Live it and breathe it every day for optimum results!
Over the past few months there have been a multitude of franchise events. From conferences to tradeshows, there has been no shortage of information being shared about franchising.
I’m certainly proud of the efforts to provide education about franchising. I’m a firm believer that education is essential and key to achieving long-term success within franchising.
For those within the industry, it goes a long way toward ensuring franchising remains as a leading business model. And for aspiring entrepreneurs considering franchising as the next step in business growth or as a career path, education is key especially considering required investments and the interdependent nature of franchise relationships.
Unfortunately, I’m still concerned about confusion around franchising, some of which I have addressed with American Express and their Small Business Saturday program. Of course, there are other instances, as well.
One in particular are the terms routinely used in and about franchising. I had addressed the same in a previous article at Acceler8Success Cafe. I believe it’s appropriate to share again today.
Are You Confused by Franchise Terminology? (April 2022)
Many, including myself, refer to franchising as an industry… even though we know it’s really not an industry. A business model is probably one of the better definitions, but what does that really mean?
A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system. Technically, the contract binding the two parties is the “franchise,” but that term more commonly refers to the actual business that the franchisee operates. The practice of creating and distributing the brand and franchise system is most often referred to as franchising.
When referring to a franchise, even many within franchising choose from a variety of terms as a point of reference – franchise organization, franchise system, franchise company, franchise brand.
The IFA definition continues:
There are two different types of franchising relationships. Business Format Franchising is the type most identifiable. In a business format franchise, the franchisor provides to the franchisee not just its trade name, products and services, but an entire system for operating the business. The franchisee generally receives site selection and development support, operating manuals, training, brand standards, quality control, a marketing strategy and business advisory support from the franchisor. While less identified with franchising, traditional or product distribution franchising is larger in total sales than business format franchising. Examples of traditional or product distribution franchising can be found in the bottling, gasoline, automotive and other manufacturing industries.
Of course, there are also the varying terms relating to the franchise relationship – franchisee, franchise partner and not to mention the slang, zee. And to the other side of the relationship – franchisor, head office, corporate office, parent company… and yes, zor.
And what’s the difference between franchisor and franchiser?
Confused yet? Maybe the IFA definition will help clear the air:
Franchising Is About Relationships
Many people, when they think of franchising, focus first on the law. While the law is certainly important, it is not the central thing to understand about franchising. At its core, franchising is about the franchisor’s brand value, how the franchisor supports its franchisees, how the franchisee meets its obligations to deliver the products and services to the system’s brand standards and most importantly – franchising is about the relationship that the franchisor has with its franchisees.
Franchising Is About Brands
A franchisor’s brand is its most valuable asset and consumers decide which business to shop at and how often to frequent that business based on what they know, or think they know, about the brand. To a certain extent consumers really don’t care who owns the business so long as their brand expectations are met. If you become a franchisee, you will certainly be developing a relationship with your customers to maintain their loyalty, and most certainly customers will choose to purchase from you because of the quality of your services and the personal relationship you establish with them. But first and foremost, they have trust in the brand to meet their expectations, and the franchisor and the other franchisees in the system rely upon you to meet those expectations.
Franchising Is About Systems and Support
Great franchisors provide systems, tools and support so that their franchisees have the ability to live up to the system’s brand standards and ensure customer satisfaction. And franchisors and all of the other franchisees expect that you will independently manage the day-to-day operation of your businesses so that you will enhance the reputation of the company in your market area.
And franchise locations are independently owned and operated. Yet, the franchise relationship is interdependent… or at least it should be interdependent and not dependent or independent upon… Well, you get it, right?
Franchising Is also a Contractual Relationship
While from the public’s vantage point, franchises look like any other chain of branded businesses, they are very different. In a franchise system, the owner of the brand does not manage and operate the locations that serve consumers their products and services on a day-to-day basis. Serving the consumer is the role and responsibility of the franchisee.
Even more confusing is the difference between a franchise and a license. The IFA explains it correctly below but it’s still confusing unless you can follow the bouncing ball:
Franchising is a contractual relationship between a licensor (franchisor) and a licensee (franchisee) that allows the business owner to use the licensor’s brand and method of doing business to distribute products or services to consumers. While every franchise is a license, not every license is a franchise under the law. Sometimes that can be very confusing.
Now let’s look at the people serving the franchise community. Yep, franchise community is another reference for the franchise list above but let’s move on. Franchise consultants, do they sell or consult? How about franchise brokers, coaches, sales agents, sales representatives, and again, franchise consultants.
Is there embarrassment in being involved in what really is a sales process? To that point, is a franchise sold or awarded? If awarded, along the lines of receiving an award at the Oscars (no Will Smith / Chris Rock jokes, please!), maybe the term should be presenter?
Of course, there are references to segments within franchising such as master franchising and sub-franchising… Which one is correct? And isn’t the sub-franchisor actually the master franchisee? I guess it all depends on which end of the relationship one is on. In any event, these terms aren’t being used as frequently as in the past. Maybe it’s because correctly defining these relationships were confusing. Again, unless you could keep up with the bouncing ball.
Back to the IFA definition:
The definition of a franchise is not uniform in every state. Some states for example, may also include a marketing plan or community of interest provision in the definition. The definition of what is a franchise can vary significantly under the laws in some states and it is important that you don’t simply rely on the federal definition of a franchise in understanding any particular state’s requirements.
Put another way, in a franchise a business (the franchisor) licenses its trade name (the brand, such as BrightStar Care or Sport Clips) and its operating methods (its system of doing business) to a person or group operating within a specific territory or location (the franchisee), which agrees to operate its business according to the terms of a contract (the franchising agreement). The franchisor provides the franchisee with franchising leadership and support and exercises some controls to ensure the franchisee’s adherence to brand guidelines.
How about now – confused yet or are things starting to appear clearer? But wait…
Moving down the chain there are franchise suppliers, service providers and vendors… What’s the difference? Preferred or approved? Is there really a difference?
Franchise services means what, and providing services to who? Franchisee to end-user? Franchisor to franchisee? Franchise service provider to franchisor and/or franchisee? Or are they suppliers as is the reference to an IFA committee of franchise service providers that are referred to as suppliers?
Same can be said of franchise marketing, right? Does marketing in a B2B or B2C scenario but within a franchise environment mean that it’s franchise marketing? Or is franchise marketing actually marketing to franchise candidates?
Speaking about franchise candidates, when is a candidate actually a candidate and not a lead, prospect or just an interested party? Does this fall under franchise sales or franchise development? Or back to the sale versus award question, should it fall under franchise awards. And who’s in charge – the VP of Franchise Sales, VP of Franchise Development, or VP of Franchising? And along the line of the many creative titles nowadays, maybe VP of Franchise Awards??
Then there’s reference to franchise professionals. Is a franchisee a franchise professional? How about if the franchisee is a multi-unit franchisee with 25, 50 or 100 locations? How about a franchise attorney (or is it franchise lawyer)? Are they franchise service providers or seemingly ridiculous to say, suppliers?
If a franchise executive is a franchise professional, at what level of management or leadership does one begin to be considered a franchise professional? How about within the franchise organization itself? How about others within the franchise corporate office if their support is purely administrative as opposed to an admin that actually communicates with franchisees?
Oh, and should the CEO or others senior executives of a franchise company be considered a franchisor as we often refer to them as such at franchise events? And if a franchisor operates corporate locations, should they also be considered franchisees? Yes, that’s a stretch… sorry, but I often hear franchisors claim their locations are treated just like franchise locations and remit the same fees for marketing and hold positions on franchise advisory boards, etc.
Let’s take a last look at the IFA definition:
Investing in a franchise or becoming a franchisor can be a great opportunity. But before you select any franchise investment and sign any franchise agreement, do your homework, understand what the franchise system is offering and get the support of a qualified franchise lawyer.
Although this author firmly believes the International Franchise Association does a great job on behalf of franchising and I’m not sure I could even think of franchising without their tireless efforts to protect franchising, I do believe some efforts must be focused on minimizing confusion around franchising rather than adding to it.
From personal experience with highly educated senior executives at American Express around their ignorance about franchising, my concern always reverts to the individuals investing their life savings not clearly understanding what it is that they’re agreeing to. I’m also concerned that because of confusion, many don’t even consider a franchise as a viable opportunity. But then again, as many franchisors claim and heavily promote, a franchise is like a family, I’m ecstatic more franchisees don’t have BurgerIm as their “family” name.
After all, isn’t it ironic how franchising is the replicating of a system with focus on consistency in image, appearance, product and service from one location to another? Yet, there’s little consistency in the terminology used to define many aspects of franchising.
Note: The IFA definitions referred to above may be accessed HERE. All kidding and sarcasm aside, it really is great information and again, I do truly appreciate all IFA efforts!
Prayer is an essential part of every world religion, including Christianity. Most people realize it has something to do with talking to God. Many hope that it might bring much needed assistance or comfort when facing difficult circumstances.
Prayer offers new meaning, purpose, hope, and a sense of guidance or control. These perceptions may help instill a fighting spirit, which has been reported to be an important factor in healing. Prayer can enrich the quality of one’s life and also bring a feeling of peace.
Growing up, I was taught that praying for something specific, like a new bike was selfish. However, I don’t believe it’s selfish to pray for the courage AND strength necessary to face challenging times and periods of adversity.
Certainly, praying for hope, and praying for the benefit of others, for each other, for our loved ones should not be considered selfish. In fact, I believe it’s a moral obligation to think of others, to help others, and to pray for others.
In these times of economic uncertainty, public unrest, and a list of challenges too long to list, I humbly request, God, please hear our prayers.
“Prayer is the key of the morning and the bolt of the evening.” – Mahatma Gandhi
As I was researching prayer, I came across a prayer by Pastor Justin Barnett that I’d like to share with you today. Pastor Barnett wrote the following at NeuseNews.com:
I was asked recently to submit a prayer for businesses that would be a part of a National Day of Prayer series for Neuse News. I immediately thought of all the small businesses that are struggling and many that are closed right now. I am intimately acquainted with the struggles of small businesses and small business owners. My grandfather opened and ran a small family business.
Later, my dad ran this same small family business. Throughout my childhood, my father was up early to work and home late from work, trying to keep the family business going. I saw the stress in his face, the same stress that drove him to chain smoke cigarettes all day long for many years. I remember the tension that troubles with the business placed upon my family. My heart and my prayers go out to those businesses that are struggling right now.
With this in mind, I offer this prayer. I invite you to pray with me, as you read it.
Lord, thank you for the small businesses in our communities, for the hard work, the blood, sweat, and tears that have gone into them. For many, their businesses are not just stores or companies, they are the fabric of their lives and the lives of their loved ones. We pray God that You will guide these small business owners and provide for their families during this difficult and uncertain time.
We pray that every small business owner along with their family, will not be overcome by fear and worry, but that each and every one will trust in You and find wisdom and guidance in You. We pray that as they do this, that they will make wise decisions, the decisions that are best for their families, and that they will make these decisions at precisely the right moments.
In the Bible, Solomon wrote, “Commit your actions to the LORD, and your plans will succeed (Proverbs 16:3, (NLT).” We pray that small business owners will follow this Scripture, and that they will commit everything to You, and that You will bless them with success. We pray that the public will see that the small businesses that operate with honesty and integrity, and that seek to treat people, be it staff, vendors, or customers, with kindness, compassion, and respect, are something that we desperately need in our communities. We pray that people will see the great need and the special benefits of supporting local mom and pop businesses and will buy locally.
God, be with our small business owners and their families. Bless them and keep them. In Jesus name we pray. Amen.
God Bless Us All. Have a great day. Make it happen. Make it count.
I know it’s early but… Merry Christmas, Happy Hanukkah, Joyous Kwanzaa, Happy Holidays and any other phrases synonymous with or perceived to be wishing another person good health and well-being at this widely-recognized special time of year.
In my mind, the following by Ben Stein from a few years ago was and still is a very powerful spot-on message… It’s actually exhilarating to read something this heartfelt as opposed to the politically-correct rhetoric written or stated by so many these days. Please Read And Share!!
Apparently the White House had referred to Christmas Trees as Holiday Trees for the first time that year, which prompted Ben Stein, to say, on CBS Sunday Morning…
My confession: I am a Jew, and every single one of my ancestors was Jewish. And it does not bother me even a little bit when people call those beautiful lit up, bejewelled trees, Christmas trees. I don’t feel threatened. I don’t feel discriminated against. That’s what they are, Christmas trees.
It doesn’t bother me a bit when people say, ‘Merry Christmas’ to me. I don’t think they are slighting me or getting ready to put me in a ghetto. In fact, I kind of like it. It shows that we are all brothers and sisters celebrating this happy time of year. It doesn’t bother me at all that there is a manger scene on display at a key intersection near my beach house in Malibu. If people want a nativity scene, it’s just as fine with me as is the Menorah a few hundred yards away.
I don’t like getting pushed around for being a Jew, and I don’t think Christians like getting pushed around for being Christians. I think people who believe in God are sick and tired of getting pushed around, period. I have no idea where the concept came from, that America is an explicitly atheist country. I can’t find it in the Constitution and I don’t like it being shoved down my throat.
Or maybe I can put it another way: where did the idea come from that we should worship celebrities and we aren’t allowed to worship God? I guess that’s a sign that I’m getting old, too. But there are a lot of us who are wondering where these celebrities came from and where the America we knew went to.
In light of the many jokes we send to one another for a laugh, this is a little different: This is not intended to be a joke; it’s not funny, it’s intended to get you thinking.
Billy Graham’s daughter was interviewed on the Early Show and Jane Clayson asked her ‘How could God let something like this happen?’ (regarding Hurricane Katrina). Anne Graham gave an extremely profound and insightful response. She said, ‘I believe God is deeply saddened by this, just as we are, but for years we’ve been telling God to get out of our schools, to get out of our government and to get out of our lives. And being the gentleman He is, I believe He has calmly backed out. How can we expect God to give us His blessing and His protection if we demand He leave us alone?’
In light of recent events… terrorist attacks, school shootings, etc. I think it started when Madeleine Murray O’Hare (she was murdered, her body found a few years ago) complained she didn’t want prayer in our schools, and we said OK. Then someone said you better not read the Bible in school. The Bible says thou shalt not kill; thou shalt not steal, and love your neighbor as yourself. And we said OK.
Then Dr. Benjamin Spock said we shouldn’t spank our children when they misbehave, because their little personalities would be warped and we might damage their self-esteem (Dr. Spock’s son committed suicide). We said an expert should know what he’s talking about. And we said okay.
Now we’re asking ourselves why our children have no conscience, why they don’t know right from wrong, and why it doesn’t bother them to kill strangers, their classmates, and themselves.
Probably, if we think about it long and hard enough, we can figure it out. I think it has a great deal to do with ‘WE REAP WHAT WE SOW.’
Funny how simple it is for people to trash God and then wonder why the world’s going to hell.
Funny how we believe what the newspapers say, but question what the Bible says.
Funny how you can send ‘jokes’ through e-mail and they spread like wildfire, but when you start sending messages regarding the Lord, people think twice about sharing.
Funny how lewd, crude, vulgar and obscene articles pass freely through cyberspace, but public discussion of God is suppressed in the school and workplace.
Are you laughing yet?
Funny how when you forward this message, you will not send it to many on your address list because you’re not sure what they believe, or what they will think of you for sending it.
Funny how we can be more worried about what other people think of us than what God thinks of us.
Pass it on if you think it has merit.
If not, then just discard it…. no one will know you did. But, if you discard this thought process, don’t sit back and complain about what a bad shape the world is in.
My Best Regards, Honestly and respectfully,
Ben Stein
“Imagine all the people living life in peace… And the world will be as one.” – John Lennon
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