“ Franchising at its core is as simple as having relevant systems others can follow - which is much easier said than done ”

“ Franchising at its core is as simple as having relevant systems others can follow - which is much easier said than done ”

As a former Franchisor with over 20 years of franchise experience, I learned that success doesn’t come without some pain & failures. It was through those failures that I garnered my deep franchise knowledge and grasp of the critical link between efficiency and profitability. 

FAILURE SUCKS! It hurts, it’s embarrassing but don’t ever let it break you. 

“I Know it Hurts” link to video 2:35 https://www.dhirubhai.net/posts/darrylsangster_i-know-it-hurts-but-learn-to-welcome-activity-6641482909788229632-XDho

I recently surveyed my network of franchisors to gather some data. My research centered around lead generation, awarding franchise licenses, and the overwhelming sense of being alone that can be so suffocating for franchisors who don’t know where to turn for reliable answers or who to ask for help & support.

THE LACK OF SUPPORT was a statement I heard multiple times. The world of the franchisor can be a lonely one and few have the financial resources for an Executive CEO, let alone a coach, consultant, mentor, and teacher that they can lean on, trust and turn to for answers. Everything from reining in staff spending as the franchise grows, to re-building or creating franchise systems, to the legal requirements for doing business with franchisees. Struggling with system optimization questions such as, what systems are required, how do I create 50 microsystems all working together, what training is required for staff and franchisees? There is a myriad of decisions that arise for a franchisor which many had not expected, on top of a lack of time. 

THE SLEEPLESS NIGHTS & HIGH STRESS levels stem from a long list of factors. Here’s a list of the key ones - but this list only touches on a portion of the challenges most franchisors face:

  • Not enough time in a day regardless of how many hours I put in;
  • Feeling alone, unsupported and uncertain as the leader;
  • Inefficient systems that are broken or not being followed by staff or franchisees;
  • Lack of control - over staff, franchisees, spending - any number of things;
  • Unsure who to trust and turn to for help in building the franchise;

INCREASED LEAD GENERATION was an obvious one I heard multiple times. Every franchisor wants more leads and most need more leads. Enticing the right leads to click or call can be challenging - and expensive if you don’t know who you want to reach or how to reach them. This is only the beginning, yet very few people I heard from had a structured internal system beyond paying to buy leads, only to learn that the lead will not communicate after the initial click or call. Most franchisors are hammering the lead with the wrong initial message right out of the gates - ‘we have the best franchise and here is why you should join’. Communicating with the lead on an emotional level is not only important but critical to the lead as you begin to build a relationship and qualify. 

EXPANSION WITH DUE DILIGENCE. Some franchisors are so desperate or hungry for growth that they award licenses to anyone who waves a Franchise Fee at them. As tempting as that is, it’s extremely risky to do business with someone you know very little about. Remember once you let them into your franchise, you are committed to them for 5-10-15+ years, regardless of the fights, tension, or stress the franchise partnership can cause. They will be representing your brand, your hard work and it's extremely important to ensure your franchise has an efficient franchise awarding system in place to ensure that only excellent partners become franchisees, and flawed or weak leads are disqualified and don’t slip through the cracks to become franchisees. When I was starting out with my own franchise, I must confess, I’m guilty of issuing a franchise license out of desperation and temptation. Having done this myself within my own franchise system, I’m in a position today to share this failure of mine with you, in hopes that you avoid making this franchise fail yourself. There’s a lot to be said for learning from the mistakes of others!

FRANCHISE EXPANSION IS JUST LIKE DATING. Show interest, ask questions about what’s important to them, engage in authentic conversion about what matters to them, and genuinely get to know the lead. In 2018 I found myself back in the dating world in my 40’s and armed with my business experience, I’m telling you that successfully developing a professional relationship with someone is not unlike developing a romantic one. In the dating world, if you come out of the gates all hot and heavy, aggressive, and only talking about yourself, you will have little to no success. The same holds true in getting to know a franchise lead. Don’t ask nor expect your new franchise lead to give you their SIN # and financials the first time you speak with them. You may have had short term dating success applying your aggressive, all-about-me, tactics in your 20’s but when it relates to franchise leads, you will have zero success if you take that approach. Communicate first, ask questions, and learn about their wants, needs, interests as you try to build a relationship to find out if you're a good match. Start with a coffee date and good conversation including some laughter, before agreeing to another date, because chemistry and authenticity can not be faked - on a date, or when inquiring about a franchise opportunity.

Don’t be seduced by the Franchise Fee they’re holding up. Slowing down the process earns their respect and shows your integrity. Follow a Franchise Awarding System that starts with an expression of interest. 

YOU ARE NOT ALONE! I know it can feel that way, but it doesn't have too.

“As a Leader, Boss, Franchisor - You are Not Alone” link to video 5:31 https://www.dhirubhai.net/posts/darrylsangster_as-a-leader-boss-franchisor-you-are-activity-6654163460219289600-bdaW 

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TO ACHIEVE FRANCHISE EXPANSION & GROWTH the answer is found in the combination of pieces (Franchise Lead Generation, Qualification, Nurturing, and Awarding Franchise Licenses) all working together in one unified system. The product I recommend to my clients interested in expansion & growth is my 5-Stage Franchise Awarding System, fully customized and implemented specifically to their franchise system. Below is a glimpse into my 5-Stage Franchise Awarding Program:

1?? Stage 1: Inquiry - Getting a lead to contact you is the very first challenge because franchising is a numbers game and you need to entice potential leads to click or call and take action in your concept. You may have an amazing Franchise, but ultimately, no one will ever know until you entice that potential lead to take action. Most of the time, inquiries come from online leads, people visiting your website, clicking your social media posts, or they are referred to check you out, which leads them to search google and land on your site. If all they want to know is how much money can they make, they are likely not a good candidate. You're looking for a quality franchisee, just as much as they are looking for a quality investment.

2?? Stage 2: Qualification - This is where you start to dig deeper and learn about the lead. Aim for a few structured zoom calls to get to know each other. Start to ask difficult questions around finances and vision. Qualification is all about diving personally and financially into their world to find the answers to who they are and whether or not you believe that you could actually open them up a franchise. At this stage, you are in essence trying to convince yourself that a deal is possible with this lead. If they’re not willing to go through this process, it’s a good sign that they’re not a good fit.

3?? Stage 3: Interviewing - At this stage, you can start to get into the FDD - Franchise Disclosure Document, and delve into how your franchise business makes money. Followed by inquiring about how their lifestyle aligns with what will be required for the success of their franchise. This is the stage where both parties begin to emotionally commit and make decisions as both parties continue to conduct due diligence on each other as Franchisor and as potential Franchisee. During this Stage, interviewing is “Reading the Lead” and “Getting to Know the Lead”. At this stage, you should feel quite confident that your lead is financially capable of investing in your Franchise and that you could actually see yourselves as business partners in the future.

4?? Stage 4: Validating - By Stage 4, you will have a really good idea of who your lead is, their story, and your plan for their franchise. The ability to make decisions is a key component to every successful business, regardless of the franchise, product or service offered. Decisions are the backbone and Stage 4 forces decisions to be made. A Discovery day is invaluable and the lead must come out to your Head Office/Support Office to spend the day with you - which gives both parties a chance to get to know each other in person and further decide if they want to do business together. In our Post-Covid world, hosting a virtual Discovery Day will suffice, however nothing truly beats the in-person benefits of a Discovery Day. The right franchisee will see the value of this investment of their time and money. Either at, or following Discovery Day, the lead needs to decide if committing to your Franchise is in their best interest, and make the decision to pay the Franchise Fee and Sign Franchise Documents. The Franchisor needs to decide if this Lead is someone the Franchisor is confident can have a working professional relationship over the next 10 plus years. Business is inevitably bumpy, so it is imperative that you feel you can respectfully resolve future business problems, errors, mistakes, with this lead. Could you see yourself granting this Lead a 2nd or 3rd Franchise down the road?

5?? Stage 5: Awarding - The new Franchisee (formerly known as the lead) made the decision at the end of stage 4 to sign your franchise agreement documents and pay the initial franchise fee, thereby advancing them into Stage 5 - Awarding. As Franchisor, this is your commitment stage, your time to make a decision to accept this new Franchisee into your system or turn them down. In most cases, if your Franchise Awarding System is efficient and is designed to learn about the lead, extract information from the lead, and qualify the lead throughout the journey, then your decision to accept the new Franchisee into your system is virtually made for you. As Franchisor, fully execute the Franchise Agreement documents and welcome the new Franchise Business Partner into your family. Awarding the franchise is just the beginning. Now it’s time to buckle down and get them onboarded and set up for success by transferring your new franchisee into your Franchise Onboarding & Setup System. Do you have a system in place to ensure your new franchisees are poised for success even before they open their Franchise for business? 

TRYING to DO IT ALONE is the BIG TRAP

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“Crazy Busy” link to video 1:35 https://www.dhirubhai.net/posts/darrylsangster_do-you-ever-feel-like-your-weeks-are-crazy-activity-6658459097517608960-5dUy

Unfortunately, without support, most franchisors flounder in survival mode, struggling as they try to do it alone. They wonder how being successful became such a burden because they have no time to consistently improve and implement systems to meet demand and manage growth. All the time, they’re terrified of the consequences of having inefficient and out of date systems in place, because they understand how quickly things can change in franchising - whether it's by taking on the wrong franchisee, losing a key franchisee, dealing with lease issues, or internal staffing drama or external supply chain issues. The fear of losing franchisee confidence in the system, which leads to employees and/or franchisees not following the systems, leading to system-wide breakdowns and a complete lack of control, is a real and ever-present fear for franchisors.

Individual Coaches, Consultants, Mentors & Trainers can be helpful - if you can find the right ones. Too often many are good at telling you what’s wrong with your franchise but don’t have actual Franchisor experience to help provide solutions to overcome those hurdles. Or worse, they lock you into long term contracts causing financial frustration and band-aid solutions that do not resolve the problems which only arise again a short time later. It’s important to remember that the business landscape is dynamic and all franchise systems need to evolve while being fluid enough to work together with all other micro and macro systems within your franchise.

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THE FRANCHISE WOLF (aka ‘THE FIXER’) is the best way for me to articulate what I do and how I help Franchisors. As the Franchisor equivalent to The Wolf (aka ‘The Fixer’) in the classic Hollywood movie PULP FICTION, there is a scene where Jules (John Travolta) and Marsellus (Samual L. Jackson) find themselves in a very messy crime scene situation. Facing the reality of their problem and after a bit of panic, they make the call to The Wolf (aka ‘The Fixer’). When Mr. Wolf arrives, he is calm, in control, and has dealt with problems like this in his past. He asks for a cup of coffee which he sips while giving instructions, direction, and guidance on what to do and how to execute to ensure the problem is fixed, the mess cleaned up, and the situation resolved. Minus the crime scene, I am THE FRANCHISE WOLF (aka ‘The Fixer’) for Franchisors.

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THE DOUBLE BARREL APPROACH for Franchisor Success. My PPF Method (Placing Partners First) along with my SFG Franchising System is the Double Barrel Approach I have created to Fix & Solve problems for Franchisors. My process is built upon the foundation of serving Franchisors through Coaching, Consulting, Mentoring, and Teaching Franchisors how to build and utilize more efficient systems.

“A combination of 20 years of Franchise Experience, plus a Former Franchisor, plus my PPF Method (Placing Partners First), ensures my clients achieve results & expansion” - Darryl Sangster

THE 2 MOST POPULAR programs I offer that produce the Quickest Results, are the Franchise Sales & Awarding Funnel (5-Stage Franchise Awarding System) AND Done for You Franchise Sales.

Imagine Having a FORMER FRANCHISOR Supporting You

NO RISK and NO COMMITMENT. My promise to my clients is this - I do not use contracts and I only work on a MONTH-to-MONTH basis, ensuring you are never locked into a contract, whereby giving you FULL CONTROL over your investment in me and my programs;

The SFG Franchising System is a collection of deliverable, teachable programs I developed to support franchisors and help them go from frustrated & stressed to empowered & confident.

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If you’re ready to execute on the vision you have for your Franchise, let’s have a quick chat and get on a call.

Expediting the Journey for Leaders to Transform their Franchise System into a Thriving Business that Fuels Expansion

  • Unsure How to Attract GREAT franchisees
  • Frustrated with Breakdowns in your Franchise System
  • Tired of Feeling ALONE & OVERWHELMED with Problems
  • Unsure How to Improve your existing Franchise Systems
  • Frustrated with your Franchise EXPANSION Results
  • Not sure who to Ask or Trust for Assistance & Help
  • Struggling to BALANCE personal life with work demands
  • Exhausted from Putting Out Fires all-day
  • Frustrated with Internal Breakdowns 

I Help Franchisors ELIMINATE Stress & Frustration

I built a Multi-Million dollar franchise system under the Franchise brands Sangster’s Health Centres & Sangster’s Organic Markets that incorporated:

? 42 Retail Franchises ? 1 Franchise Head Office business ? 8 Corporate Retail businesses ? 1 eCommerce business ? 1 Supplement Manufacturing business ? 1 Distribution Warehouse business ? 1 Real Estate Leasing & Negotiation business;

?? WON the Highest Franchise Award in Canada, the CFA Award of Excellence ??

BOOK YOUR CALL WITH ME IF….

? You are an Entrepreneur, Business Owner, Franchisor or Executive Team Member interested in the further development and expansion of your Franchise System; 

? You want the support of an experienced franchisor as your advisor to help you get results and to keep you accountable as your Coach + Consultant + Mentor + Trainer;

? You want access to someone with Real Franchise Experience & Knowledge; 

THE FRANCHISE WOLF YouTube Channel is a place to watch and learn Free Informational Video's, Educational Tips, Practical Advice & Proven Solutions for Franchisors! Click to learn more ...

?? email: [email protected]

?? web site: https://SangsterFranchiseGroup.com

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Eugene Mikheev

Founder & Project Manager @ VR ARENA | Software Product Management

4 个月

Darryl, it's interesting ??

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Doug Warren , BA,MBA,CFE

Franchise Development Professional

3 年

Always informative. I recommend Darryl. He would be a great asset for any chain wanting to expand

RICHARD YAREMKO

Director of Business and Market Development | GDM | MBA Candidate @ Athabasca University

4 年

Great article with relevant information that also applies to all multi unit businesses.

Darryl Sangster

MASTER THE ART OF FRANCHISING. Coach. Course Creator. Speaker.

4 年

#entrepreneur?#franchiseowner?#businessowner?#franchisors?#franchisebusiness?#franchising?#businessowners?#businessmastery?#businessownership #leadership #consultant #mentor #trainer #coach #sales #franchisor #businesscoach #entrepreneurs #entrepreneurial #business #entrepreneurlifestyle #entrepreneurlife #successmindset #growthmindset #businessowner?#growyourbusiness #businessgrowth #businesssuccess #entrepreneurmindset?

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