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Franchisee Advice

What it Takes to Make it in Franchising

Janine Allis, founder of the international franchise, Boost Juice, recently visited South Africa and shared her views on what it takes to make it as a franchisee.

Chana Boucher




Q: What in your opinion makes a franchise business successful?

We believe it is the ‘Ps’ – people, product and position. People need to have a desire for what they do, that’s what is needed to grow a business. Our product has made the business transferable to other countries. We always look at what is available in the country before we launch. Having the best position is critical. The Boost Juice franchise is very much a walk-by concept so it is essential to find a location with high traffic. Apart from those three aspects, it is also important to market yourself properly. Whenever we open a new branch we have a big launch so that people can see us and taste the products. One other aspect is getting feedback from people. It is good to get this so that you can find ways to turn a disgruntled customer into a fan.

Q: What do you look for in a franchisee?

We look for like-minded people. We are not just interested in selling franchises, we want to find the right people with the right attitude. They need to have some business experience but the most successful franchisees have passion and an attitude to succeed. If you think franchising is going to be nice and easy then don’t get into the business. It takes a lot of blood, sweat and tears before you get the flexibility of being your own boss.

Q: So you do think there is flexibility in owning a franchise?

For the first two years you have to be involved in the business to run it. Retail is detail and you have to manage cash flow and expenses tightly.

Q: What are some of the most important qualities a franchisee should possess?

In a franchisee interview I look for the right attitude. Also I favour a husband and wife team as one will usually work on the business while the other still earns an income. This means there is less financial pressure in the early stages and they will usually have different skills that can complement each other. If the franchisee has no business experience, I recommend doing a few short courses, it is particularly important to have a basic understanding of accounting. Boost will teach you how to run the franchise, deal with customers, use the technology and improve sales but we don’t teach accountancy.

Q: What about getting outside help from a bookeeper?

It is a big mistake to hire a bookeeper; instead you should find an expert on software like Quickbooks. They can teach you how to do the basics so that you are handling every invoice and paying everyone. The products are amazing for small businesses. If you do your own accounts you will pick up mistakes that quite possibly a bookeeper wouldn’t. It is vital to take the time to learn. Don’t just say that you are too busy in the store, if you are not doing your own accounts you are losing at least 20% of your profits.

Q: How important is it for a franchisee to be an owner manager rather than employing a manager to run the store?

Many franchisees can be owner managers of one or two stores, but a good owner manager is one who can leave their store to go on holiday and it continues to run efficiently. To do this you need to hire the right people. I’m a firm believer in hiring the right people. A great manager is a leader. By having the right people, systems and processes in place, they give themselves options after two years. This could be buying another store or having a significant amount of flexibility. But some people don’t ever get there because they are unable to lead or hire the right people.

Q: Why do you think it is better to be part of a franchise than opening an independent business?

The international statistics are positive. Only one out of five independent businesses survives, while four out of five franchise businesses survive. Apart from that, by being a franchisee you are part of a network which has better buying power. You also contribute to a marketing fund, which means you get more bang for your buck, and you are part of a group of people on the same journey – you get head office support but also interact with people in the same situation as you. You should get to know the other franchisees so that you can get together and help each other out. As a franchisee, you have other people thinking about product development, using resources you couldn’t afford if you were to open ‘Joe’s Juice’.

Q: How can a franchisee ensure they are choosing the right franchise for them?

They need to look within and think ‘What am I passionate about?’ We find that our franchisees are usually interested in health and fitness and have a sparkle in their eyes. Once you have identified what you are passionate about, you need to look at what’s available, and then at the franchise itself. How long have they been around, how many company-owned stores are there, the structure, do you like the people and can you find solutions with them?

Q: How important is it to invest your own money in a franchise?

Whether you are investing your money or money from a bank, it’s still your responsibility. The best option is to borrow the least possible as paying off a loan adds to your monthly expenses. Using your own money takes a bit of the pressure off.

Q: What advice can you give franchisees?

You need to have the right attitude. We have a saying, ‘Don’t be a VERB, rather SOAR’. VERB stands for Victim Entitled Rescue Blame and SOAR, Solutions Ownership of problems, Accountability for outcomes, Responsible for your own success. The outcome from this response is more positive. Being accountable for your own business is powerful. Saying it is my fault when something goes wrong gives you incredible power. I hate the word ‘try’ – you have no option but to do it.

Q: How much research should a franchisee do before buying a franchise?

They need to do an enormous amount of research but should beware of ‘analysis paralysis’. I know of some people who spend up to five years researching a franchise, and never get around to actually buying it. You need to look at financials, the brand, the business and do your own site research – you can sit at the site and do headcounts for a few hours.

Make sure that you meet with the franchisor and talk to them face-to-face as well as other franchisees who will give you the ‘warts and all’ information.

Q: What would you say is the biggest challenge for franchisees?

Staffing is a big challenge. Don’t settle for mediocrity, find people who are bubbly and hard working. Always do a reference check, but if this is their first job determine whether or not they are confident, and have numbers acumen. You may get it wrong sometimes, but be sure to fix it quickly.

Q: What are some of the most common mistakes franchisees make?

Thinking that it is easier than it actually is, not doing their own accounts, mismanaging their expenses and holding on to staff who should have moved on. One other mistake for female franchise owners is not replacing themselves when they have a baby. If you don’t find a replacement you can expect your business to go down by at least 20%.

Franchisee Advice

6 Questions Before You Discount

Try this checklist so that discounting doesn’t give you nightmares.

Richard Mukheibir




For some retailers, discounting is a way of life. Most, though, begrudge the thought of discounting – and I completely identify with that.

It was not until last year that we ran our first company-wide discounting, our “Spring Clean” campaign. It took Trevor Locker, our Chief Operating Officer, to convince me that there are times when discounting makes great business sense – just as there are times when it could spell business disaster.

Here is the checklist of questions which we hammered out as a guideline to successful discounting that will let you sleep peacefully at night:

1. Is this a stock clearance?

Some businesses stock ranges that have a very short shelf life, such as clothing that quickly goes out of fashion. If this is your market, you need to learn to accept that some of the goods you have bought in will be less appealing than others to your customers. The sooner you shift them out of the store through sale discounts, the sooner you can replace them with goods that repay you with a full profit.

Related: What To Know About Franchising Your Business

2. Is this a cashflow crunch?

If you are reluctant about devising quick discounts on selected ranges to generate enough cash to pay the rent, you are right. This is a red flag that your business could be in trouble. Pay attention and spend time focusing on how you will recover once you are past this immediate crisis – otherwise you are in a downward spiral.

3. What are you celebrating?

Maybe you have a business or seasonal anniversary that you want to celebrate. Selected discounting in this situation can help you reward repeat customers and consolidate their loyalty as well as attracting new customers into your business.

4. Is your promotion a win-win?

Long-term repeat discount promotions can have a negative impact on even your most loyal customers. Effectively you are training them to wait for your discounts – unless you set up a win-win strategy such as partial discounting. A great example of how this can work is Steers’ Wacky Wednesday. Customers win when they come into the branches for a discounted hamburger. Steers wins because customers still pay the normal price for cool drinks, chips and so on, sales that the company probably would not otherwise make on a quiet midweek trading day.

5. Are you joining the herd?

black-fridayBlack Friday is a classic example of this. Some retailers have felt stampeded into offering discounts because they worry that everybody else is. The jury is still out on whether this new trading phenomenon increases sales overall or just moves them out of December and into November. To benefit most, you need to have stock that you want to clear or loss leaders that you have bought in at prices that do not cripple you financially.

Related: 5 Last-Minute Tips For Small Retailers To Boost Black Friday Sales

6. Do you own your own sale?

Our company-wide “Spring Clean” concept sale was a great example of finding a reason to discount that worked for our branches, our customers and our brand and meant that our discount was not drowned out in the marketplace.

We encouraged customers to bring us unwanted goods from their homes and benefit from freeing up the cash value.

At the same time, we also attracted customers into the stores to pick up bargains from stock that we wanted to clear. Running this promotion at a time of year when many other retailers are quiet promotionally meant that we owned the spring-clean discount concept and it highlighted our brand across the market.

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Franchisee Advice

What To Know About Franchising Your Business

For many businesses, franchising is an excellent route to growth, opening up new opportunities and markets. Laurette Pienaar, National Franchise Manager at Nedbank, unpacks why it’s worth considering this route.

Nadine Todd




Vital Stats

  • Player: Laurette Pienaar
  • Position: National Franchise Manager
  • Company: Nedbank Limited
  • Visit:

What type of business is ideally suited to the franchise model?

Franchising has been proven successful across all industries, including the automotive, food, entertainment and retail industries. However, several key qualities ultimately determine a concept’s ability to successfully become a franchise.

Firstly, the business model must be scalable and able to be repeated in several locations. Secondly, there must be demand for the products sold and, thirdly, the franchise model must be proven as profitable.

Related: (Infographic) 7 Digital Marketing Strategies For Franchises

Why is franchising a good growth option?

Franchising is often used as a cost-effective growth strategy for businesses. A key benefit of this strategy is that no capital layout is required for a new franchised store as opposed to corporate-owned stores.

Franchised stores are also proven to be more successful than corporate-owned stores. This is mainly due to the fact that the franchise owners have a vested interest in the store, whereas corporate stores are supervised by a manager. Franchising is therefore also a great way to build your brand.

What should business owners focus on?

Franchisors should set up good infrastructure to support their franchisees, including good upfront and ongoing training to both the franchisees and their staff, the correct legal advice and assistance, and a strong operational team to assist franchisees daily.

Many successful franchisors provide support by expanding through vertical integration, which provides franchisees with logistics, supply chain security and product consistency.

Several franchisors advocate a structure with both franchisee and corporate-owned stores. This enables a franchisor to keep in touch with the daily challenges franchisees experience and new products and solutions can be tested at a corporate store before being rolled out to the franchise network.

How can franchising consultants assist business owners?

Franchise consultants provide daily operational support to franchisees. They are responsible for daily store visits to assist with quality checks, process flows, supplier relationships and, often, financial assessments. They are a helpful soundboard on any improvements to be made in the business model and can convey suggestions to the franchisor.

Related: The Secret Sauce To Great Franchise Leadership

What challenges should business owners be aware of?

Businesses looking to franchise need to ensure that their business is teachable to others. Overcomplicated products and systems may deter franchisees from investing in your brand.

Franchisors have to do ongoing introspection regarding their company culture. For example, does the culture promote innovation and inspire franchisees and consumers, which ultimately is a culture worth investing in?

New franchisors’ selection criteria for franchisees are often not sufficiently thorough and comprehensive. For a new franchisor, it is important to choose good quality franchisees and to have strict selection criteria to ensure that your brand remains reputable and stable during fast-expanding cycles.

What lessons can be learnt from SA’s successful franchises?

Businesses looking to expand through franchising should consider setting up several corporate-owned stores first. This assures potential investors that your business is based on a proven model with a track record and supportive infrastructure.

There is not always a one-size-fits-all model. Many franchisors have created custom models to accommodate and adjust to the need of a specific property or consumer market. A great example of this would be the food industry where many franchisors offer shopping centre concepts, drive thrus and kiosk or express concepts. Consider this when developing your model.

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Franchisee Advice

Develop Digital Marketing Competency In 3 Simple Steps

Conquering the digital revolution needn’t be daunting. Polish up your tech skills and watch your digital marketing prowess increase throughout your franchise.

Diana Albertyn




As a franchisor, digital marketing may be proving to be a challenge due to the unique structuring of the business.

“The very nature of franchises is ‘structured’, however, when it comes to marketing, that structure often lacks,” says Marcela De Vivo, Founder and CEO of Gryffin Media.

Franchisors and franchisees often struggle to reach common ground when looking to achieve different marketing goals. While the franchisor needs to control the brand in its entirety, the franchisee wants to market their business using particular strategies suited to their location.

Research has found that smartphones are the biggest influencers of 82% of users when they make their in-store purchase decisions while. It’s for this reason that the importance of digital marketing for franchises has increased.

Here’s how to harness its power of influence, amplify foot traffic and solidify brand loyalty:

1. Recruit digital natives and early adopters

As much as you’re the leader of your franchise network, there are franchisees in your chain you could learn from. The global increase in millennial franchise owners means it is highly likely that you’ll be able to identify early digital adopters within your franchise network.

“The best people to learn from are those who have been in your shoes before,” says Matt Forman of the Franchise Centre at Griffith University.

“Encourage and support their efforts and use them as case studies to demonstrate to the rest of your franchisees the value of digital marketing, and how to do it right.”

2. Invest in training your team

“Each digital competency level requires more education and resources in order to integrate digital marketing with your physical stores,” says Forman. For this reason, regularly investing in continuous training for your team so as to ensure they keep abreast of any new and emerging trends.

Proactivity and adapting to the constantly evolving digital landscape led KFC to open a LinkedIn account for its founder and mascot Colonel Sanders. KFC’s out of the box tactic is a fresh approach to what has long been considered a B2B platform, under-utilised as a B2C platform.

3. Apply custom targeting techniques

The discovery of new and small businesses is being fuelled by Google searches, social media and online reviews, making these platforms a goldmine of invaluable tools.

Leveraging certain custom targeting techniques like easily searchable keywords and exposure on other reputable and high-traffic websites, gives your franchise’s digital marketing efforts a boost. This results in an effective campaign, favourable reviews and meaningful and lasting interactions with consumers “whether it’s a reply to a Facebook comment or a retweet,” says Entrepreneur’s Emily Conklin.

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