At its core franchising is the licencing and individual operation of someone else’s proven business system.
My old boss – Moshe Gerstenhaber, who launched Kall Kwik in the UK – suggested that it could easily be renamed system leasing because in fact the franchisee buys a licence to duplicate an existing and successful system from a franchisor for a specified period. It is then incumbent upon the Franchisor to continually nurture and develop the system and provide support to and for the network.
In short, the business system is always LIVE!
What does franchising mean for me?
Crucially, if you become a franchisee, you will be in business for yourself BUT not by yourself.
Instead of having to solve every problem on your own, the Franchisor should offer you proven operating methods, know-how, corporate identity, trademarks and help with everything from marketing to recruitment and procurement.
That’s why most franchises succeed where most small business start-ups fail.
As such franchising is an increasingly attractive lifestyle and career option for thousands of people – from diverse backgrounds.
Just in our brands we have an ex-greengrocer, airline steward, cattle rancher and footballer, as well as those with marketing, sales and business operations experience.
Investing in yourself
If you buy shares in a company you invest in the skills of its management team.
But when you take up a franchise you invest in yourself. Finding out about yourself though can be much harder than discovering the trading record of a public company.
Therefore, franchising isn’t a get rich quick scheme.
Yes, the rewards can be great but building a business takes determination, drive, dedication, energy and hard work.
More than that I think is also takes passion.
If you are a person motivated by achievement, enthusiastic about providing a first-class product and/or service, with the courage to meet the tough challenges of running a business then franchising could be just what you are looking for.
However, before you even contemplate moving forward there is a lot of appraising to be done – none more critical than a rigorous self-appraisal.
Do you have the necessary commitment and desire?
It goes without saying that becoming a franchisee must be a wholehearted commitment and will likely change your lifestyle significantly. So be realistic about yourself; about your financial resources and about your own skills and abilities.
Also, don’t be over-critical because no-one is perfect. Be realistic about what you are good at, what drives you, what limits you have.
From my experience if you want to become a successful franchisee the one thing you’ll need is an enterprising personality.
It helps if you are reasonably outgoing, with a positive outlook, enjoy problem solving AND have considerable energy.
Ideally, I would want you to be a self-starter, goal orientated and a team player – someone who can be entrusted with responsibility and who has the mind set to see things to a successful conclusion.
Be honest with yourself – are you that kind of person?
Hey, there is nothing wrong with being tired at the end of a hard day – BUT if you’re knackered at 5pm then you may have a problem.
Interestingly, entrepreneurs generally do not make good franchisees.
Franchising relies on teamwork and working to a proven and successful system whereas most ‘entrepreneurs’ tend to be somewhat ‘maverick’ and want to ‘re-invent the wheel’.
So, if you don’t have the discipline to work to a system nor to learn a proven method of doing business then you are probably best off not looking at franchising.
But if you do have the passion, energy and drive and are prepared to work in a system and understand the benefit of team dynamics then you could be a very successful owner of a business franchise.
