An insight into franchising from a Franchisee's perspective

Written on the 15th of March 2011 by Will Fulton

Buying a franchise is a great step if you are a first time business owner - especially if you’re coming out of a successful job in a similar field to that of your target franchise. That was my motivation for getting in. I also figured it would take way too long to set up endless business systems so why reinvent the wheel? I did very little due diligence prior to getting into ActionCOACH and have some perspective on this approach with the benefit of 5 year’s hindsight!

Here’s what you may want to be thinking about…

A key task as you look at what’s available is to consider how motivated you are towards DOING the work with your target customer base versus FINDING the work from your target prospect base. This distinction between operations and sales is important as you will want to evaluate what systems you will be relying on the most from your franchisor.

It’s sometimes said “your business is about what you are LEAST good at”.  So, if you are fairly outgoing and confident with FINDING work, then have a look at how strong the franchise’s systems are for delivering a high quality product or service to their customers (and any points of difference between them and their opposition). This will be important to you as you find new customers with your sales skills. Sometimes getting customers may be a relatively straightforward process, but customer retention and delivery may be compromised without solid back-up systems.

On the other hand, you may be very confident with the delivery side of your service or product but be less confident about drumming up SALES with your new customer base. If this sounds more like you, then the marketing and sales systems of your target franchise should probably be looked at in more detail. How well and to what extent your franchisor generates leads or clients for you will let you know how reliant you’ll need to be on either them or you.

Talking to other franchisees in the network is another great indicator of life in the system. This is one step I did do before getting into ActionCOACH.  I was already quite keen to join ActionCOACH but talking with others really cemented the decision. Think up some good questions before you phone around.

Overall, I have found that self-reliance is the hallmark of all the best franchisees. Too much reliance on the franchisor breeds a “feed me” mentality; too much dependence on the operator rather than the franchise system can sometimes breed resentment. Do your homework and give yourself enough (some!) working capital to get started.

Best wishes with your decision and back yourself to be the best!

This article was contributed by Will Fulton from ActionCOACH.

Will Fulton has seen the franchise system from many angles. He has been a franchisee with ActionCOACH for 5 years winning many awards including 2007 Australasian Coach of the Year. He’s also a Director of Advanced Cabinet Solutions who licence joiners to manufacture using a unique system for waterproof cabinet construction. He has trained franchisees in all stages of franchise ownership from induction training through to experienced operators. This has taken him to the USA, UK, Ireland, Australia as well as NZ with his training systems. In addition to his franchising activities, he operates an internet company and is a keen property investor.

An insight into franchising from a Franchisee's perspective

Written on the 15th of March 2011 by Will Fulton

Buying a franchise is a great step if you are a first time business owner - especially if you’re coming out of a successful job in a similar field to that of your target franchise. That was my motivation for getting in. I also figured it would take way too long to set up endless business systems so why reinvent the wheel? I did very little due diligence prior to getting into ActionCOACH and have some perspective on this approach with the benefit of 5 year’s hindsight!

Here’s what you may want to be thinking about…

A key task as you look at what’s available is to consider how motivated you are towards DOING the work with your target customer base versus FINDING the work from your target prospect base. This distinction between operations and sales is important as you will want to evaluate what systems you will be relying on the most from your franchisor.

It’s sometimes said “your business is about what you are LEAST good at”.  So, if you are fairly outgoing and confident with FINDING work, then have a look at how strong the franchise’s systems are for delivering a high quality product or service to their customers (and any points of difference between them and their opposition). This will be important to you as you find new customers with your sales skills. Sometimes getting customers may be a relatively straightforward process, but customer retention and delivery may be compromised without solid back-up systems.

On the other hand, you may be very confident with the delivery side of your service or product but be less confident about drumming up SALES with your new customer base. If this sounds more like you, then the marketing and sales systems of your target franchise should probably be looked at in more detail. How well and to what extent your franchisor generates leads or clients for you will let you know how reliant you’ll need to be on either them or you.

Talking to other franchisees in the network is another great indicator of life in the system. This is one step I did do before getting into ActionCOACH.  I was already quite keen to join ActionCOACH but talking with others really cemented the decision. Think up some good questions before you phone around.

Overall, I have found that self-reliance is the hallmark of all the best franchisees. Too much reliance on the franchisor breeds a “feed me” mentality; too much dependence on the operator rather than the franchise system can sometimes breed resentment. Do your homework and give yourself enough (some!) working capital to get started.

Best wishes with your decision and back yourself to be the best!

This article was contributed by Will Fulton from ActionCOACH.

Will Fulton has seen the franchise system from many angles. He has been a franchisee with ActionCOACH for 5 years winning many awards including 2007 Australasian Coach of the Year. He’s also a Director of Advanced Cabinet Solutions who licence joiners to manufacture using a unique system for waterproof cabinet construction. He has trained franchisees in all stages of franchise ownership from induction training through to experienced operators. This has taken him to the USA, UK, Ireland, Australia as well as NZ with his training systems. In addition to his franchising activities, he operates an internet company and is a keen property investor.

What makes a good franchise opportunity

Written on the 26 May 2011

Want to buy a franchise, but not quite sure what to look for?  Here is a quick guide to help you evaluate the franchise opportunities you are considering.  

A good franchise opportunity will have all of the following things:

Well-known respected brand

While it doesn’t ensure success, buying a franchise of a well-known brand will certainly be a lot easier than investing in one that hasn’t established itself yet.  

An established company means brand awareness and guaranteed customers for your franchise, which will save you a lot of work and stress.

Experienced franchisor

Something that goes hand-in-hand with a well-know brand is an experienced franchisor – if they’ve built their business into a successful franchise, they obviously know what they are doing.

Look for a franchisor that has a variety of experts in the management team (a franchise expert is essential, and so is marketing and finance), has been working with the business model for a long time and has streamlined systems and processes.

Good location

You know what they say – location is everything.  You need to be able to operate your franchise business from a place that suits you and suits your target market.

Make sure your location isn’t already full of your competitors and that you have a large enough marketing area and population to attract new customers.  When it comes to your premises, make sure you can afford it and also that it meets the needs of your market.

Quality product

If the franchise doesn’t have a good product, you’re wasting your time and money.  It needs to be high-quality, marketable and priced competitively so you have a chance at success.

The franchisor should invest a significant amount of their profits into research and development so they can continuously improve the product.  It also helps if they and you are passionate about what you are selling.

Profitability

When it comes down to it, money will be the most important factor in your decision to buy a franchise – if it’s not profitable, then it’s not a good franchise opportunity.

Once you get past the initial enquiry phase in the franchise process, you will get access to detailed financial information about the franchise.  Get an expert to go over the information with you to find out if the business is profitable – look at things like franchise fees, residual income and resale value of the business to determine if it is a worthwhile investment.

Support

The main reason why people choose franchise businesses over starting from scratch themselves is because they don’t want to go it alone – so make sure the franchisor offers adequate support.

You will need initial and ongoing training on the products, the industry and running the business, as well as technical and marketing support and access to a franchise manager to help you overcome challenges and keep you motivated.

Suit your situation

This is probably the most important part of a good franchise opportunity.  It’s essential that you choose a franchise business that suits your personality, your schedule, your goals, your budget and most importantly your skills.

If you’ve done some research into a business and aren’t sure if it’s for you, go and chat to some of its most successful franchisees and find out what they are like.  If you have a lot in common with them, then you’re on the right track.  Also, it’s important that you be honest with yourself about what you can do, what you can afford and what you want to achieve.

A final word of advice - make sure you do your research so you can make an informed decision about the franchise opportunity.  Choose one that meets the criteria above and you’re off to a great start!