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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.

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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Company Posts

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

As the leader in the tyre replacement and service industry, we are invested in providing our network with the tools needed to thrive and grow in an ever-challenging market.

HI-Q

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Vital Stats

This is an invitation to all innovative entrepreneurs who are seeking new and exciting opportunities – here’s your chance to become part of a winning team.

As the leader in the tyre replacement and service industry, we are invested in providing our network with the tools needed to thrive and grow in an ever-challenging market.

The Hi-Q Way

  • Hi-Q’s been voted the 1 tyre retailer by South African consumers in the Ask Africa Icon Brands Survey from 2010 – 2017.
  • Over the years Hi-Q has established itself as ‘the one you can trust’, with customers, the network and suppliers.
  • Hi-Q prides itself on first-class service, a multi-product/multi-brand offering as well as ground-breaking product innovations such as TyreSurance on all tyre brands.
  • Hi-Q has an extensive network of over 130 franchisees
  • Hi-Q has the support of the Goodyear value proposition.

If you are looking to join a new franchise and you share Hi-Q’s values and vision, please get in touch.

visual-2-hi-q

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Puré Frooty Ready To Launch In South Africa

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.

Pure Frooty Smoothie

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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.

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.

Related: Why Your Franchise Should Adopt A Shared Value Business Model

The four values we pride ourselves in are:

  1. Convenience
  2. Consistency
  3. Quality
  4. Customer Satisfaction.

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.

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. The business model revolves around a free-standing vending machine which needs to be visited to refill and maintenance. 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. 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.

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. 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.

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.

Related: SA Fast Food Franchising On The Rise

Everything is done with a computer which leaves little to no room for errors. It is self-order and very user friendly.

A vending machine which 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.

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