Incorrect expectation is the chief reason for disappointment in life… and business. With so many franchise concepts in so many industries, searching for a franchise can be a daunting task.
Aside from finding something that is a good fit for you, your skills, your future and the community in which you will operate, how do you even know if the company itself is worthy of your time, effort and money? What should you expect from your investment?
The good news is that investigating a franchise is great because it’s an investment vehicle that allows you to actually talk with people who have made the investment already. This way you are not just reading spread sheets, brochures or listening to testimonials from people who may be paid actors.
Once you engage in conversations with the franchise representative of the company you’re considering, you will receive a plethora of information boasting about the greatness of the company.
They’ll probably also say why they happen to be the best in their industry and why this is the perfect time to get involved with them. They will probably even throw in a comment about being recession resistant, too.
The voluminous, detailed manuscript about the franchise you’re considering is called the franchise disclosure document (FDD). If you have not heard of this item yet, you certainly will as you plunge into your franchise search.
Although the FDD looks like an overbearing prospectus from a public company, it is really a document that makes the company transparent for the prospective buyer. It is your best friend during the due-diligence process.
You must understand the information given in the FDD. The best thing about the document is that is provides the contact information for every franchise owner in the company at the time of printing, including a list of units that have closed their doors or sold.
However, after distilling and digesting all the information disseminated by the franchise company, the very best way to gain clarity on the franchise and correctly set your expectations, is by talking to their franchisees.
This process of validating the franchise is the single most important thing you can do in your franchise search and it may save you from franchise failure.
Moreover, you’re permitted and encouraged to contact existing franchisees. Great franchise companies want franchise owners to come in educated and with eyes wide open, so there are no surprises.
I have some tips to help with making these calls and face-to-face visits. You need to plan on calling and, when possible, visiting a number of the existing franchisees. Talk with a sufficient number of the existing franchisees to ensure you have a sense of the prevailing attitudes of the group.
You should begin making these calls after the sales person from the company gives the go ahead. (Remember the franchise company is evaluating you on how you follow systems so please follow their process for investigation.)
Find unhappy people
Though you want to find the overwhelming majority of franchisees to be happy and supportive of the franchisor, it is important to try to find an unhappy franchisee during your investigation. When you do, not only listen to the complaints but also try to determine what makes this franchisee different from the rest.
If you find that you identify with the positive ones, and feel the negative franchisees are not at all like you — that’s a good sign.
Remember, evaluating franchise owners is similar to assessing a sports team. The players span a bell curve, meaning that 20% of the players will be the top of the heap, superstars. Next, 60% will be average and doing just fine. Then the other 20% will be under par and sitting on the bench.
You want to emulate the superstars but also know why the under-par performers are not pulling their weight. This will help you define if the franchise is right for you or not.
When you make the call, introduce yourself as a potential franchisee. State the name of the sales person you are working with so that they know you are not the competition spying on the company.
Also, franchisees with businesses very close to your area of interest might have future plans to expand into your area, so often they will attempt to taint the success of the franchise.
I suggest to first talk to franchisees who are far away from where you plan on opening, in order to get a real sense of the company, then talk to local franchisees to see what’s happening in your local market.
If the local owner has some negative things to say, you can hold that up against the other information that you’ve gathered to understand the real, average situation within that franchise company.
A good way to approach this is to begin by calling franchisees with as much history as possible. We want to know early if your financial goals can be achieved. Then call owners with one to two year’s history and focus on break-even expectations. Finally, call a few owners who have just started, as they’ve received the most recent training, and have had recent interactions with the corporate office.
Please note, franchisees from systems that are undergoing significant growth may get inundated with calls from potential owners. It may take a while to connect with these owners. This is a good sign — it means they are out building their businesses and not sitting at home watching daytime TV soaps. Don’t get discouraged, be persistent.
I highly encourage you to make the most of these phone calls. This process may save you lots of time, money and heartache in the long run. I have a list of 39 questions to ask existing franchise owners. Email me for a free copy or go to my website to download the questions.
Enthusiastically following the system I’ve outlined in this article will save you from incorrect business expectations and disappointment in the long run — you’ll thank me later.
Choose A Job You Love, And You Will Never Have To Work A Day In Your Life
Join Col’Cacchio’s 26-year-long love story.
- Joining fee: R125 000
- Monthly management fee: 6% of turnover
- Monthly marketing fee: 2% of turnover
- Total investment: approx. R2.5m to R4.2m (turnkey) Size: 140m2 to 350m2
- Unencumbered cash (before loan): 50% of total investment
(Above figures exclude VAT)
“Owning your own restaurant is like owning your own future.” – Dominic Dempers, Franchisee Durbanville, Belvedere & Meadowridge Cape Town
We’re looking for passionate franchisees who will love our brand as much as we do.
Why you should join this delicious success story
- Assistance with site selection & lease negotiation
- Store design & build
- Full training provided for management and staff
- Marketing & operational support
- Product innovation & menu development
- Efficiency in all systems
- Healthy margins.
“Our journey started with a single restaurant on the foreshore with the aim to serve the very best pizza around” – Greg Mommsen, Business Developer Director
“Watching this brand grow and empowering people has been immensely rewarding. We have staff that have been with us for over 20 years. It’s like a family, we work hard, we laugh, we cry, we celebrate and of course, we eat a lot of pizza.” – Michael Terespolsky, Founder and Managing Director
“Becoming a franchisee is an amazing opportunity to join the family and become part of the Col’Cacchio success story. We’re 100% behind out franchises at every step, making sure that we all continue to learn and flourish” – Greg Mommsen, Business Developer Director
“It has been filled with challenges along the way, but all the rewards have made every moment worth it.” – Michael Terespolsky, Founder and Managing Director
Visit www.colcacchio.co.za or call Tarryn Godley on 084 800 7264 and let’s get this adventure going.
Smoothie Franchise Opportunity: Puré Frooty Is A One-Of-A-Kind Smoothie Franchise Business
Looking for the next greatest franchise opportunity? Puré Frooty Smoothie is a highly perfected Australian business model launching in the South African market that doesn’t require extensive shop fitting or a large workforce.
- Brand: Puré Frooty
- Established: 2017
- Website: www.purefrooty.co.za
Puré Frooty Smoothie is a unique business model to the South African market. A delicious, fruit filled smoothie will be created at the touch of a few buttons.
An Innovative Franchising Concept
This innovation in the healthy smoothie industry is ground breaking for South Africa. The machine is manufactured in Australia by a highly skilled team. It took six years to perfect this business model for the consumer market.
The vision of Puré Frooty Smoothie is to offer convenient on-the-go smoothies for anyone. The experience and quality will always be of the highest standard. We aim to be a staple convenience in malls, schools, office parks and hospitals. This is a platform that will allow for self-growth for passionate entrepreneurs.
Our mission is to create a unique customer experience. We want to satisfy the nutritional needs of customers by providing quality smoothies. Puré Frooty Smoothie will be packed with all the goodness a smoothie should offer.
The four values we pride ourselves in are:
- Customer Satisfaction.
Why Consider This Franchising Opportunity
Extensive research into the business model and market
Puré Frooty Smoothie was an idea, researched widely, by people looking to simplify the business process for the consumer and business owner. There was a gap in the market for simplified customer service and a demand for a quicker turnaround time.
Simplified process for setting up a business
For an entrepreneur it can be very overwhelming to start or buy a new or existing business. There are so many crucial decisions that need to be made from the beginning and new concepts to adapt to.
Puré Frooty Smoothie simplifies that drastically:
- Free-standing machines: The business model revolves around a free-standing vending machine which needs to be visited to refill and maintenance.
- No shop-fitting required: There is no need for shop fittings or a large work force. All that is required is an inside space for the machine with a power supply.
- Minimal human resources needed: In terms of a work force, you could either do it yourself or have one person to assist you. There is also a part time involvement where refill station teams can refill and maintain the machine.
- Cashless business: The business is completely cashless so there are no worries of a note jam, full cash canister or insufficient denomination rand values. More importantly the machines would do a higher turnover than an ordinary vending machine so safety of no cash is important.
- Easy tracking of stock and performance: A cloud-based system is linked to the point of sale which allows you to monitor your performance and stock from the back-office platform at any given time.
- Efficient handling of maintenance: With a live point of sale system, the business is linked to a software which monitors the operations of the machine. Should anything malfunction an immediate notification will be sent with a diagnostics report.
- Human error is eliminated: Everything is done with a computer which leaves little to no room for errors. It is self-order and very user friendly.
Related: SA Fast Food Franchising On The Rise
Why Will Customers Love It
Puré Frooty Smoothie offers a vending machine that can produce a delicious smoothie in forty seconds. An informative touch screen ordering panel which displays all the nutritional information of the smoothie ordered and has the current news and weather.
No time wasted for the consumer. In fact, it’s a learning session disguised as a waiting period. The machine has two wash cycles after every smoothie is made to be freshly prepared for the next smoothie, business hygiene is important.
Consumers live in the fast lane. We are looking for something quick and most times we would like to be healthier. With the hustle and bustle of today’s life every little bit helps. Puré Frooty Smoothie fills that gap in the market.
Interested in Becoming A Franchisee?
Visit our Franchise Info Page for everything you need to know about how to become information a Puré Frooty Smoothie Franchisee owner.
You can also call or write to us:
Phone / 012-942 6360
Email / firstname.lastname@example.org
Want to know more about this franchise? Watch the video below for more.
4 Top Tips To Find Your Best Franchise Opportunity
The President’s recent Job Summit highlighted the critical need to reduce unemployment. The franchise sector employs 369 573 people, 93 percent employed by individual franchisees rather than franchisors.
Several years of strong sectoral growth combined with business opportunities that are often backed by an investor safety net is making franchising the top choice for many who want to own their own business. This assessment is based on the strong foundations of my own experience of establishing Cash Converters nearly a quarter century ago and the recent results of Franchise Association of South Africa (FASA) annual industry survey.
These figures show that the SA franchise industry has grown its turnover by 55 percent from R465 billion in 2014, when FASA conducted its first survey, to R721 billion in 2017. Alongside this, the sector’s contribution to South Africa’s GDP has expanded by 62 percent, from 9.7 percent in 2014 to 15.7 percent in 2017.
The President’s recent Job Summit highlighted the critical need to reduce unemployment and boost the national economy by growing business and stimulating job creation. The franchise sector employs 369 573 people, 93 percent employed by individual franchisees rather than franchisors.
Franchising can be a win-win for franchisees. It enables you to make your dream of running your own business come true as well as contributing to providing much-needed new jobs.
These factors make franchising a particularly attractive option for those wishing to start their own business. But with 865 different franchise systems active in the country last year, the huge range of choice can be confusing.
To prevent analysis paralysis and ensure you can get set to make the most of franchising, I can offer four top tips for selecting the best franchise opportunity for you:
1. Choose a credible brand
As you shortlist franchisors that appeal to you, go beyond what they tell you about themselves and find out about what people are saying about them. Do social media searches to find out how consumers are reacting to the product or service offered, pricing and customer service. Your franchise fee should buy you a halo effect thanks to your franchisor’s good reputation. Too much negativity around the brand will affect the potential success of your franchise, from your ability to attract customers and the turnover and profit you can hope to generate.
2. Look for a proven business model
A worthwhile franchise shares with franchisees the intellectual property it has developed over the years. It has created and grown this business model over time, knocking off rough edges and fine-tuning systems for mistakes as they become apparent. Check the brand’s news history online as well as its own sales material. Be wary of any franchise that claims to be perfect or invincible.
Nobody is – so either it has something to hide or it is fooling itself. Either way, such a brand is not keeping its eyes open to navigate the brand and its franchisees through the changing fortunes of business.
Related: Thinking Of Going Into Franchising?
3. Check the support systems
Getting relationships and systems right is vital in business success. They have become even more important since we founded Cash Converters nearly 25 years ago because the volume of legal compliance has mushroomed. Make sure that the franchises you shortlist offer you support in coping with this and that those running the brand are in touch with what happens on the ground in the franchisees’ stores. At Cash Converters, for example, our front-end support staff are in stores every day and the directors devote three days each month to visiting stores. This ensures that our expertise is available to guide the franchisees through any business issues they face.
4. Follow the recipe
When you sign up with a franchisor, you receive access to its business model, including the “recipe” for running your franchise. This forms a kind of safety net so you do not need to reinvent a wheel when setting up your business. But you cannot complain that the business model does not work if you do not implement it. This is one of those times when you must follow the recipe to bake the cake successfully. If you are not the kind of person who wants to do that, then think again about whether franchising is for you.
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