It's Time to Fish or Cut Bait for our Franchisor and Franchisee...
RECAP: In my last post, our Franchisee found himself delving deep into the world of franchise brokers (aka: consultants), in an effort to determine if this was the best route to ensure his success as a future franchisee. He had already explored a number of online websites and "portals," and had read a number of books and articles detailing the franchise experience.
Meanwhile, our Franchisor, was busy conducting her due diligence as well, however she was busy trying to choose between the "do it yourself" (DIY), "franchise packager," "piece it together" or the "mega consulting firm" models.
It's been approximately six months since I first decided that I wanted to be my own boss and began researching the franchise model in earnest. I can honestly say that I've learned more in the past six months than I ever imagined, and I am very thankful that I took the time to really understand what I'm getting myself into.
Although I'm definitely feeling a mixture of excitement and fear, I know that I'm ready to take the plunge, and not a moment too soon I might add. My employer just announced yet another round of layoffs, and I can't tell you how comforting it is that this time I don't have to spend the next two months sweating it out every day wondering if I'm next to get the axe.
After speaking with numerous individuals and considering all of my options, I've decided to engage one of the larger franchise brokerages. I know full well that this particular organization represents only a fraction of the franchise options available and that the consultant I'll be working with stands to earn a large commission from the franchisor when I purchase a franchise, however I really like the fact that she has been in the business for over ten years, and I believe she is genuinely interested in ensuring a good fit for me. Of course it doesn't hurt that I called a number of references and they all had nothing but glowing praise for her. It's time to bit the bullet and make it happen!
So...I just got off the phone with my franchise consultant and the first thing she asked me to do was to complete a "quiz" to determine if I'm even suited to become a franchisee. What's really interesting about this is that in all the time that I've been doing my research, I always just assumed that I'd be a great franchisee...however, I never actually took the time to quantify this assumption.
To check out the quiz I took, click on the following link: http://www.entrepreneur.com/article/44202
EDITOR’S NOTE: If YOU'RE interesting in franchising as well Mr. or Mrs. blog reader, perhaps YOU should click on the above-listed link and take the quiz as well!
To be continued...
After thoroughly considering all of my options, I've come to the conclusion that I would be totally nuts to try to become a franchisor on my own. I know that other people have done it, and I certainly respect their efforts, however after reading multiple articles and books about the franchisor experience, this is just NOT something that I'd like to attempt without a net. The good news is that I have secured the necessary capital to really give this a good run, and for me, that amount is $800,000. Sounds like a lot, doesn't it? Well it certainly is, however I have no desire to "boot strap" my franchise, and from my perspective, I'm looking at this more as an investment than an expense.
EDITOR’S NOTE: Click on the following link for a great article that helps to summarize the difference between an investment and an expense: http://www.entrepreneur.com/article/206186
Given my level of capitalization and my penchant for seeking good, sound advice, I've decided to go with what I previously defined as a "mega consulting firm." I spent several weeks interviewing various employees of the top mega franchise consulting firms (from the CEO on down), and I settled on what I believe is a great choice. For me the benefits are many, as what I was really looking for was a one-stop-shop that would be able to provide everything in-house. In addition, this firm has so many relationships with so many seasoned providers, that if I can't find what I need in-house, I know I can count on any referral partners to be "best of breed."
During the interview process this particular consulting firm began by asking me "two key questions: 1) Is my business franchisable? 2) Is franchising the right strategy for me? Talk about two great questions! They shared with me that these questions can only really be answered after evaluating my business and determining how franchising fits with my specific goals and objectives. This is known in the franchising arena as a "strategy and feasibility analysis." Further, they shared that they have identified "a series of twelve (12) predictive criteria that they use to assess the readiness of a company for franchising and the likelihood that it will achieve success as a franchisor."
EDITOR’S NOTE: If YOU'RE interested in becoming a franchisor Mr. or Mrs. blog reader, perhaps YOU should click on the following link and review the "Twelve Criteria of Franchisability" for yourself: http://bit.ly/1rCwbTt
To be continued...
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