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Researching a Franchise

How To Choose The Right Franchise

There are an awful lot of franchises available out there. So how do you choose the one that’s right for you?

Jeffrey Hayzlett

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The most successful franchise owners are passionate about what they do. Don’t choose a franchise that offers services you wouldn’t personally want to do, even if it’s a lucrative franchise.

With thousands of business opportunities to choose from, the hardest question is not, ‘Where do I start?’ but rather, ‘Which is right for me?’ We are faced with new business opportunities every day, and not all are the right fit.

We-recommend-tickWe recommend: Jean-Pierre Seger Gives His Franchisor Perspective

If you are considering starting a franchise location, here are the questions you should ask yourself:

1. What are my conditions of satisfaction?

I have three conditions of satisfaction. If a business opportunity doesn’t meet at least two of the three, I won’t do it. For me, I need to have fun, to learn and to build wealth. I also need to apply these criteria to picking the right franchise opportunity.

Having a clear understanding of your conditions of satisfaction allows you to quickly say yay or nay to any business opportunity that comes your way.

If you’re not going to have fun, what’s the point? And speaking for myself, if it’s not going to make me money, I’m out.

2. What is my end goal?

End-goal

Because my conditions are so defined at the start, I know that with any business opportunity I am going to have fun, learn and build wealth. But I also need to define what my end goals will be.

Is your own end goal to provide for your children? Then accept or turn away any business opportunity based on the answer it provides you to that question.

Are you in it for the fame? Then you need to make business decisions that increase your exposure at, first, a local level, then a regional one, then a national one and so forth. In my book, Think Big, Act Bigger, I mention how entrepreneurs need to find a bigger pond to take their businesses to if they’ve outgrown the pond they’re currently in.

I had a great measure of success in my home city of Sioux Falls, South Dakota, so the whole state became my ‘bigger pond’. Then I realised I had 49 other states out there in which to get even bigger.

That became my end goal, and it should be yours, too.
Every business decision you make, from the time you take to select a franchise, to the day you leave it, should be aimed toward obtaining your end goals.

3. What will I not do?

After you’ve determined what your conditions of satisfactions and goals are, the next question is what will you not do? Does the idea of flipping burgers turn your stomach? What about pest control? If there are things you know you won’t do, or won’t enjoy doing, chances are you won’t want to own a business that offers that service, even if it makes really good money.

At the same time, if you’re a small business owner, or an entrepreneur getting your business off the ground, you may have to do things that you didn’t have to do in your cushy C-suite office. I’ve had to clean my own bathroom, for instance. Did I want to do that? Not particularly, but it still had to get done.

We-recommend-tickWe recommend: How Spur Overhauled Its Supply Chain

Don’t expect your employees to do the things you want them to do if you’re not willing to do them yourself. Doing the things you normally wouldn’t have to do isn’t necessarily a bad thing. It just gives you a different perspective that will come in handy when your business takes off.

4. What are my passions?

If you thrive on helping people, then your focus on finding the right franchise should include that. If you love animals, consider starting your search with franchises that deal daily with pets.

With hundreds of options out there, it’s important to keep your list of passions short, sweet and to the point, otherwise you will bombard yourself with information.

Along the way, remember that your ‘job’ should stop being a job. Being passionate will take your franchise far, because you love what you do.

5. How involved am I going to be?

franchise-involvement

If you’re thinking that owning a franchise is simple, and you can work a few hours here or there, you’re sadly mistaken.

Owning a franchise is a lot like having children — you have to feed it money, time and people. You also have to clothe it by maintaining and caring for your property.

You’ll have people to manage and bills to pay, too, so to assume that you can buy into and then walk away from your new business is asking for trouble.

We-recommend-tickWe recommend: Where Your Tyres Meet the Road with Supa Quick

Yes, there are some opportunities like this that exist, but those are the exception, not the rule. Be truly honest with yourself, because if you’re not, you could be throwing your money down the drain.

With hundreds of choices in franchises to get into, your future will thank you if you do your homework. There are plenty of resources available online. Start with Franchisezone.co.za to learn about great opportunities.

Jeffrey Hayzlett is the author of Think Big, Act Bigger: The Rewards of Being Relentless (Entrepreneur Press, 2015). He is the primetime television host of C-Suite with Jeffrey Hayzlett and Executive Perspectives on C-Suite TV and is the host of the award-winning All Business with Jeffrey Hayzlett on C-Suite Radio. He is a Hall of Fame speaker, best-selling author, and chairman of C-Suite Network, a network of C-suite leaders.

Company Posts

Don’t Tread On Toes – Why Investing In A HIQ Franchise Will Offer You More Opportunities

Are you looking at investing in a tyre replacement and service industry? Look no further than the Hi-Q franchise.

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Vital Stats

Established in 1999, Hi-Q is a successful and diverse multi-product, multi-brand leader in the tyre replacement and service industry with a network of over 130 franchisees nationwide.

With the support of international tyre giant Goodyear, Hi-Q has established a solid reputation of ‘the one you can trust’, and the Hi-Q approach and philosophy is embedded in this.  We have the trust of our customers, our network and our suppliers – that’s why you can trust us to take you and your business to the next level.

When you’re working with people’s safety, trust forms the most significant part of the equation

Hi-Q introduced the original and innovative TyreSurance initiative – the only aftermarket tyre damage guarantee product that backs the consumer no matter the brand of tyre. Each Hi-Q Franchise offers a broad range of brands within the different product and service categories that customers know they can trust, and at prices they can afford. Product and services include tyres, exhausts, shocks, batteries or brakes, wheel alignment or balancing, and a 10-point safety check.

We have identified areas of opportunity to extend our Franchise footprint growth. If you are looking to join a new franchise and you share in our values and vision, we would like to hear from you.

For further information on how to become a franchisee, call us on +27 11 394 3150.

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Related: We Want To Invite You To Join Us On The Hi-Q Journey And Become A Franchisee

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Researching a Franchise

Be In The Property Business For Yourself, Not By Yourself

Why property franchising makes good business sense in today’s market.

Keith Broadfoote-Brown

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Opening a real estate franchise has been a thriving and successful business model in South Africa for decades. Despite the challenges currently facing the South African economy, property will continue to prosper and provide entrepreneurs with an opportunity to own their own successful businesses and become leading members of their local business communities.

“The residential property market is a dynamic, thriving industry offering substantial career opportunities.

Joining a property franchise business gives entrepreneurs the opportunity to align themselves with reputable, established businesses with a national footprint who have invested in their brands and have access to international networks,” says Russell Berkman, Franchise Director at Jawitz Properties.

While the property industry is competitive there is still great potential for growth. Worldwide, franchising has proven to be one of the most successful business models with failure rates well below those of starting a business from scratch.

Related: How to Become a Property Franchisee

For the franchisee, it is one of the most intelligent ways of starting and growing a business and by combining the proven business formula of the franchisor with the entrepreneurial drive of the owner-franchisee, the likelihood of a successful business venture for both parties is increased significantly.

According to Keith Broadfoote-Brown, the owner and Principal of the Jawitz Properties Ballito franchise in KwaZulu-Natal, property franchise still makes good business sense in today’s market.

The benefits of being a property franchise owner

Becoming a property franchisee gives a businessperson unlimited potential to succeed in the property industry as the success achieved is a direct result of the effort, commitment and drive put in. It means being self-employed within an organisational structure and offers the same structure and benefits to sales and rental consultants.

“It gives you the opportunity to leverage your business’ success off the intellectual capital, brand, expertise and know-how of an established business that has a proven business model, IT platforms, marketing expertise, training and self-development programmes as well as having access to years of experience in these fields.  My mantra is ‘be in business for yourself, not by yourself’,” says Brown.

Skills needed to succeed as a property franchisee

The most important competencies would be to have an entrepreneurial character and business skills such as financial literacy, HR/people skills and marketing acumen; a people’s person with a resilient and driven personality. Experience in real estate is always beneficial but not required as it is all about using business skills, marketing acumen and entrepreneurial tenacity to make your mark.

Related: How Brigid Prinsloo Made (A Lot Of) Money On Airbnb

Brown explains, “Absolute professionalism and integrity and a fierce determination to exceed your client’s service expectations are essential. And you must be able to develop a highly competent sales team, explore new opportunities for your business and operate as a team player within a franchise structure”.

Current state of the property market

The property market in SA currently reflects the economy and is weighted in favour of buyers, so sellers need to be very realistic with their price expectations. Buyers are buying where they perceive good value and value is indeed the key driver in the market today.

The opportunities are strong for buyers to invest in this ‘down’ market and conditions are also ideal to upgrade one’s home. In every region and in every suburb there are homes offering good value and these are selling well, despite the tougher trading conditions.

Opportunities outweigh the challenges

“The opportunity for real estate professionals is to find and secure the well-priced, good value, properties as they are selling!

It is also an opportune time to enter the market as a franchisee or new agent/intern as I am firmly of the view that great estate agents learn their profession well in a tough market and when the market improves, as it surely will, these sales professionals will have a solid grounding and strong foundation on which to build their real estate careers.

Challenges are to manage costs in these tough trading conditions. To keep motivated and continue to consistently drive the very basic activities needed to succeed in real estate,” says Brown.

Top 3 things to consider before entering the industry

According to Brown, his top 3 considerations are as follows:   

  1. You need sufficient start-up capital as the initial investment in starting the business and the monthly expenses to run the business can be substantial. The income from sales and rentals may be slow in the early years, hence the need for good planning and sufficient start-up funds.
  2. Owning one’s own business means the buck stops with you! A well thought out and well implemented business plan is key. The first 2-3 years consist of long hours and could potentially be financially strained, as in any start-up business, but the rewards of owning your franchise and being ‘master of your own destiny’ are worth it!
  3. This is a tough business for tough-minded people. Having an initial mindset of ‘it is harder than I think’ rather than ‘it will be smooth sailing’ is a better approach and will prepare the franchisee for the hiccups that will surely come along.

Property franchising makes good business sense

The end result of being a successful property franchisee is financial security. Owning a brand office assures the owner of having an asset and the credibility, back-up and brand promise assures clients they are in safe and professional hands.

“I would definitely recommend being part of a major brand rather than a being a small real estate entity, especially in this competitive industry. Property is a challenging industry that, like everything else, goes through cycles, influenced by factors like inflation and interest rates, among others.

Drive, initiative and resilience are therefore essential qualities for a successful property franchisee. Absolute professionalism and integrity and a fierce determination to exceed your client’s service expectations are essential,” Brown concludes.

Related: Want To Start A Property Business That Buys Property And Rents It Out?

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Researching a Franchise

Col’Cacchio – Benefits Of The Franchise Model

Six key benefits of the restaurant franchise model – and what to look out for when considering a franchise.

Russell Otty

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For investors looking to the restaurant industry and considering a franchise knowing it has a proven track record and is therefore possibly a lower risk, there are a few key things to be aware of about the benefits of the franchise model, which if investigated, can also point to a franchise that is not for you.

Russell Otty, Chief Operating Officer of the Col’Cacchio Group, shares some of these key benefits and indicators of whether a franchise is for you:

1. Making the cut as a franchisee gives you the confidence that you are making the right decision

You may think psychometric testing, three days in a restaurant following a franchisee around, and a panel interview with the senior management of the franchisor, is a bit over the top, but the franchisor that puts you through your paces and assesses your ability and commitment to running the business, is doing you a huge favour and may even help you see this is not for you. It goes both ways, and after an intense courtship, you should know if you want to try a long-term relationship.

Related: Col’ Cacchio: A Passion For Pizza

2. Assistance with location selection and negotiation of the terms of your lease

One thing you can do to limit your risk is to not open a restaurant in the first place if your rent is not going to be reasonable or you simply won’t get customers through the door. The franchisor will vet and approve the site – they will have extensive insight into what has worked or not worked location-wise for their brand, and can assist you to weigh up the area and it’s potential to attract customers.

The commercial terms of a lease is very important – you can’t be too ambitious about turnover targets, and having the backing of a franchisor can be beneficial if a landlord becomes unreasonable.

3. Staff training and development tools on hand

Consistency is important with restaurant franchises, as a customer visiting a brand anywhere in the country, goes there knowing exactly what they are going to get. This is best achieved with solid training, perhaps access to resources such as training videos, and regular visits from franchise managers.

You should check with your franchisor what level of training and franchise support you will have on an ongoing basis. Ask about the ratio of field trainers and operations managers to the number of franchisees in the group. You want the franchisor in your restaurant in some shape or form, two or three times a month, whether it be the training manager, the regional franchise manager or the national operations manager.

4. Access to supplier networks to manage your input costs

Negotiating basket pricing with distributors regionally and nationally, the franchisor will leverage their buying power on your behalf. They should assist to manage your suppliers and make sure deliveries happen on time, and ensure that product quality remains consistent. They can also negotiate to ensure your input costs do not increase before the next menu launch – so you can ensure your margins remain intact.

5. Brand loyalty and locality marketing

When you buy a restaurant franchise, you gain a group of customers who know who you are, the food you serve and the way you make them feel. The money you will pay towards marketing each month gives you insight into the broader restaurant market, the experience of what is working across a number of sites, and how best to keep the attention of new and existing customers.

Some franchisors offer locality marketing assistance – your site and area has specific needs that other outlets may not have, or there may be events in the area that can be leveraged to run special offers. Ask if the franchisor offers this as a service, as it can assist you greatly to have an advantage over other restaurants in your area.

Related: Beginners Guide To Digital Marketing In South Africa

6. Business development insights

The franchisor has access to insights gained across the group, and the systems that they have in place to track costs and increase profit margins, can be of huge assistance. If you are looking for business support, a franchise manager can be the one sitting with you telling you that you spent R2 000 too much on cleaning this month or saying you need to wait till next month to make that purchase. The level of business support you will have access to, is an important factor to consider, depending on the level of support you may require.

Recipe for success

Nine times out of ten, a restaurant franchise that fails, fails because the franchisee loses interest or lacks the commitment to make it work. Selecting the best franchise for you as the investor, or as a restaurant entrepreneur, is the most important first step you can take towards success, so do the homework.

Don’t assume that because you are buying into a successful brand that it will be a success – business is not an exact science – you need to do your own due diligence and take responsibility for your business, because it is after all your own investment.

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