Why Successful Franchises Are Picky About Taking Your Money

Why Successful Franchises Are Picky About Taking Your Money

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If you’re currently vetting franchises and choosing where to invest your money, a franchisor who isn’t vetting you back should be a big red flag.

Franchisees are the brand ambassadors of franchised brands. They are the operators on the ground who make sure that customers have a great experience with the franchise, and they’re the people who make sure the franchise’s carefully developed systems and processes are followed.

Related: Pay Attention To The Small Print

High expectations

Top franchisors also expect a lot from their franchisees. For example, John Nicolokakis, CEO of Roman’s Pizza, insists that every store prominently displays the franchisee’s name and cellphone number. If you aren’t willing to be available to a customer, day or night, you aren’t a good fit for Roman’s Pizza. This level of commitment is mirrored by the franchisor though.

“We have a lot of loyalty towards our franchisees, and we will always go the extra mile for them, which is why our first franchisees are still with us, 20 years later,” says Nicolokakis.

“But we expect excellence from them as well – and will be completely transparent if something isn’t operating according to our expectations.

“Great franchisees are irreplaceable. This is why we spend so much time vetting new candidates, it’s why we will always give first option of a new site to an existing franchisee, and it’s why we are so focused on maintaining an open and transparent relationship with our franchisees.”

 

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Related: 3 Secrets To Franchising Success

Transparency and loyalty

Nicolokakis isn’t unique in his approach. When Brian Altriche, founder of Rocomamas and Spur franchisee, wanted to purchase his first Spur and set it up in Southgate Mall, he had to wait while every franchisee in the area was contacted and given first option at the site.

Only when everyone said no was he able to join the franchise. Spur Group is an excellent example of a franchisor that is extremely loyal to its franchisees, but also expects nothing but the best from its members.

Franchisors that are too eager to take your money without making sure that you understand exactly what the brand expects from you, and are willing and able to deliver that level of service, might not offer you adequate support when you need it most.

Nadine Todd
Nadine Todd is the Managing Editor of Entrepreneur Magazine, the How-To guide for growing businesses. Find her on Google+.