How to be a terrible franchisor!

Let's be honest, running a business is tough and running a franchise adds a whole other layer of challenge! Franchising has the potential to be a fantastic way to take what you are already doing well and multiply it so that others can benefit from your tried and test model. However, in my experience, after trying several different times over the years in several different ways, it is incredibly difficult and has the potential for disaster.

I am reflecting on the past 6 years and my various franchising faux pas with the Women's Business Club, failures and fun times as I prepare my talk for the upcoming International Franchise Show. After much reflection I have decided to start with the negatives because once we confront the brutal reality of where things usually go wrong, we can build a solid, robust franchise that has a good chance of success. I hope this helps in some way.

My top 5 franchising mistakes (yes there are many more but make these mistakes if you want to be a terrible franchisor):

1.Defining the business model

Before you can franchise your business it’s essential to thoroughly test the model. My very first franchise attempt was based on my business model that was working swimmingly, however, it was run by me specifically, not by anyone else. The model didn’t work for people with different temperaments, people with different skills and different experience to me. I nearly drove myself mad trying to get my franchisees to do what I did and get the same results that I did! It just didn’t work so I scrapped franchise attempt number one and went back to the drawing board. The model needed to work no matter who was running it. This took a lot more work, time and testing.

2. Pricing the model

Another mistake I made was with pricing the franchise model. Again, it worked for me as a stand-alone but it didn’t work well with the franchise fees deducted from their earnings. In theory, it worked perfectly as I based my calculations on my performance, but no one is going to run my model as well as me, they don’t get it like I do and they don't have the years of experience in my specific model. It’s not reasonable to expect them to get the same results that I can get. The model needs to be priced on averages and tested on a variety of people. Selling a franchise on a best-case scenario is dangerous as you are likely to over promise and under deliver, leaving the franchisees frustrated and ultimately angry.

3. Focusing on the sale

It’s easy to get over passionate about the potential in your franchise and lose sight of mistakes 4 and 5 because you are just so excited to sell your business! It’s a rookie mistake not only for franchisors but for all business owners, to focus on the sale rather than serving your ideal clients with your solution. I have learned from bitter experience that I don’t want to sell my franchise anymore, it’s not for sale. Rather, I recruit franchisees. It’s a recruitment process, not a sales process as I ultimately have to trust them with my brand and reputation, if they get it wrong they can ruin all that I have tried to build.

4. Misunderstanding the franchisees

One of the mistakes that I am not proud of is only seeing a conflict from only my point of view. Franchisees don’t understand how much hurt they can cause when they start wanting to change the business model that you have painstakingly laboured in for years or when they complain and say it doesn’t work but actually haven’t followed the handbook instructions. The bottom line is that there is a lot of harm that your franchisees can do to you and your business but more often than not their complaints and frustrations are completely valid to them. To quickly defuse a situation with a franchisee, validate their feelings! See it from their point of view. Show them that you care and understand. Try to find a solution. Franchising is very much like a marriage, you have to learn to get along.

5. Recruiting anyone

I can’t help but continue with the marriage analogy because you wouldn’t marry just anyone, would you? Well, I hope not! Choosing a franchisee is a similar process and if you want the relationship to last you need to be picky about who you recruit. Not everyone is suitable and not every franchise relationship will work. It is essential to understand exactly who your ideal franchisee is in exactly the same way you would understand who your ideal clients are. Everyone is no one! If you are happy for absolutely anyone to buy your franchise then you are in for a lot of soul-destroying trouble. Play the long game, play to win, play to keep your franchisees around for life as they will become your templates and close family who will attract more of the same.

Find out more about our franchise options at the Women's Business Club at www.womensbusiness.club/franchise

My full talk with tried and test automation keys to build a successful franchise will be available April 2019 at https://www.youtube.com/angeladesouzauk