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Researching a Franchise

To Buy, Or Not To Buy

Here are five questions you need to answer before choosing a franchise.

Kyle Zagrodzky

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If you’re in the market for a franchise, there are loads to choose from. Those looking to become part of a franchise have to sort through everything from childcare to pizza, salons, gyms and medical facilities. That’s a lot to narrow down.

As potential franchisees make sense of all the information and start finalising their top picks, they often neglect to notice a key factor in the decision process: How many questions do franchisors actually ask them?

People making a choice as big as becoming a franchisee have so much on their minds and so many questions to answer that they may not focus enough on the way franchisors interview them.

Not all franchises are created equal, and the way a franchise gets to know you will tell you a lot about its culture. Ideally, you want to work with a franchise that is as interested in you as you are in it. The questions they ask (or fail to ask) can tell you a lot.

Above all, franchisors shouldn’t just want to take your money. They should be as deeply invested in building a successful business as you are, and the questions they ask say a lot about the kind of experience you can expect.

Here are five questions a franchise should ask potential partners:

1. What is your professional background?

Franchising is such an interesting business model because it attracts people from all kinds of backgrounds. There isn’t just one type of person who becomes a franchisee, so a good franchise will want to understand your previous experience to make sure you have what it takes to be a successful part of their business.

Some franchises look for a particular segment of past experience, but most will look at each franchise candidate individually.

If a franchise doesn’t care about your past experience, it’s a sign that they’re not choosy about who becomes a franchisee — which also means they aren’t as likely to be invested in your success.

2. How much time do you have to spend on the business?

Every franchise will have different guidelines for how much time a franchisee should expect to spend on the business. Some franchises are higher maintenance than others. It all depends on the type of product and service, the franchise’s culture of how involved each franchisee will be personally, and how easy or complex the business is to set up and run.

A basic mall kiosk will be easier to manage from a distance, but a retail unit that will be built from the ground up as a standalone store will require more time and legwork. Make sure the franchise cares and asks how much time you’re willing to commit.

how-to-choose-a-franchise-to-invest-in

3. What do you hope to accomplish?

If you expect a franchise to be profitable in a month, and the franchise generally isn’t profitable for a year, it’s better to get that out in the open before you sign on the dotted line. Great franchises know how to manage expectations so that franchisees can stay positive and know what they’re signing up for.

Franchising isn’t a magic bullet of profitability. It’s a business like any other, and most businesses take time to earn profits.

The franchisor should also want to know if you have plans for expansion, since that should lead to in-depth conversations about territories and development. If a franchise makes promises that don’t seem reasonable, take a step back, and do some more research. It’s better to work with a company that is up-front about what you can expect than one that makes assurances and might not be there with support after you’ve joined
the team.

4. Why are you interested in franchising?

People get into franchising for all sorts of reasons. Sometimes they have always dreamed of entrepreneurship. Sometimes they want to take more control of their careers. And sometimes they are looking to segue out of another career.

The thing is, most people aren’t actually well-suited to running a franchise. Franchisees need to have a unique personality that can walk the line between visionary and team player. If you want to call all the shots, do things your way and build a brand from scratch, you might be happier with start-up entrepreneurship. If you are looking for the support of operations systems, sales practices and complete marketing and training tools, franchising is a better way to go.

Franchising doesn’t offer a guarantee of success, but merely a template for running a successful business.

A good franchisor recognises that and will only work with people who are a great fit for the franchising life.

5. Why are you interested in this particular franchise?

A lot of people get into franchising because they think it’s a sure bet for running a profitable business. However, the allure of profitability shouldn’t be the only reason you’re interested in a franchise. If you’re lactose intolerant, you aren’t the ideal person to open an ice cream shop. However, if you’re lactose intolerant and the ice cream shop sells products made exclusively from coconut, almond and soy milks, you might be perfect.

Running a business is about making money, but to do that well, you have to be passionate about what you’re pitching. The best franchises know every franchisee is passionate about the brand, not just the profits.

Kyle Zagrodzky is president of OsteoStrong, the health and wellness system that boosts bone and muscle strength in less than 10 minutes a week using scientifically proven osteogenic loading concepts. OsteoStrong introduced a new era in modern fitness and aging prevention two years ago and has since helped thousands of clients between ages 8 and 92 improve strength, balance, endurance and bone density. In 2014, the brand signed commitments with nine regional developers to launch 500 new locations across America.

Company Posts

With Hundreds Of Franchise Options Out There, Choose The One You Can Trust

If you’re looking to invest in a business venture that offers you years of experience in the industry, the trust and loyalty of its customers, and franchise support from an expert team – then Hi-Q is the one for you.

HI-Q

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What you’ll become a part of

Since opening their doors in 1999, Hi-Q has gone from strength to strength, growing a humble three store enterprise into an extensive 130-store franchise network with a unique multi-product and multi-services automotive offering.

Hi-Q’s approach to business is centred around being ‘the one you can trust’ to their customers, their suppliers and their franchisees.

“That has always been the key driver in everything we do,” says Sean Harrison, Hi-Q’s Managing Director. “For example, when it comes to our customers, they need to know they can rely on us to put their safety first.

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

That we’ll always strive to offer them expert, friendly service and top of the range products, while also keeping up-to-date with the latest technologies and advancements in our field.”

An acclaimed and awarded brand

Hi-Q has again and again proven themselves to be a leader in the industry.

They’ve been voted South Africa’s No.1 tyre retailer for eight consecutive years (2010 – 2017) by consumers in the Ask Africa Icon Brands Survey, the biggest of its kind in Africa – a clear indication that they are respected and trusted by their customers.

Business support

Hi-Q Franchisees all have the support of an expert and knowledgeable team with years of experience in the industry, who are available to guide them on their business venture. This includes areas of business such as marketing/promotional, commercial, organisational structure, tools and equipment, sales and more.

Franchisees also have access to various skills training opportunities for members of their team.
Hi-Q is invested in providing their network with the tools needed to thrive and grow in an ever-challenging market.

Relationship with Goodyear

Hi-Q has the support and backing of international tyre of multinational premium tyre manufacturer, Goodyear, and its full value proposition. This means access to incredible promotional and marketing opportunities in partnership with the brand.

Franchising opportunities

Hi-Q has embarked on an extensive expansion plan and have identified areas of opportunity to extend their Franchise footprint growth countrywide.

You’ll find more information on our website www.hiq.co.za We’d like to invite those who are interested to become part of our team to contact 011 663 2431 or bernie_andrews@goodyear.co.za

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

The Digital Headaches Of A Franchise Marketing Team

Here are my top 5 tools that can help control and regulate franchisees marketing with minimum friction.

JG Bezuidenhout

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Franchise marketing teams already know that managing campaigns for a business with multiple locations and/or stores is a time-consuming job.

When it comes to online marketing, many franchisees are frustrated with the mother brands’ national campaign strategy, as it may not suit their immediate needs. This often means they embark down the dangerous route of “rogue” or unapproved campaigns.

This is a huge risk for any brand as there is limited to no control over the message and quality of creative, often resulting in brand CI and best practices not being followed.

Rogue advertising can be totally avoided by a franchises’ marketing team by employing tools that allow them to set up a managed process where franchisees can advertise through. With a managed approval process (preferably automated) it is easier to manage “rouge” content.

Here are my top 5 tools that can help control and regulate franchisees marketing with minimum friction.

1. Create a consistent Facebook content experience whilst still allowing your franchisees to post to their own page

Facebook location pages makes it possible to, as an alternative, allow every store to open a Facebook page, each with different versions of your logo as their profile picture, as well as incomplete profile data or even old or past promotions as their cover image. You as a brand manager can set up each store as a location page on the brand’s main FB page.

The pages can all be linked to the main page and if you change the profile image or cover art, it will automatically update all the other pages. There are also a number of other marketing advantages to this, but most importantly for me was the ability to manage them all from a single interface and clean up all the old and abandoned pages that just confused customers.

2. Manage social media content

Gain is extremely simple to use and connected to all the popular social media platforms such as Facebook, Twitter, LinkedIn etc. As a user, you can create posts or ads and schedule them all from the same window. Once said posts are scheduled, the marketing team can preview the content and approve it for publication or request changes all within a matter of seconds.  Best of all, nothing will get posted without your approval.

3. Free professional looking content in a template

Pablo is an old favourite of mine! It supplies predefined size templates where a user can use free professional stock photos and quickly overlay text. The feature I love most on this tool is the “insert logo” feature, which with the click of a button can overlay a banner or brand element that creates consistent content experiences. Once done, you can export the image and post it to gain for approval. Simple right!

4. Create email alerts for when your brand is found online

Talk Walker alerts is a nifty tool and acts like your personal internet detective who constantly crawls the internet for keywords that you define. I like to use my clients’ brand names and sometimes even my competitors just to keep tabs on their activity. Once set up, you receive daily emails with links to the content in question.

5. Pre-approved marketing creatives and targeting with machine learning optimisation

Lead Gener8or tool can define a bespoke target audience per store and lock advertising geographical areas to prevent any cannibalisation. Once completed, franchisees can execute pre-approved marketing campaigns as and when they wish on any of the integrated channels (SMS, Email, Facebook, Google and Youtube), without any further involvement required from the marketing team.

Powered by big-data machine learning, campaigns are automatically optimised while in flight. Marketing teams can monitor all campaigns in real time. This tool really is a game changer for franchise marketing teams and brand managers.

With these tools correctly implemented into your business, the digital headache of your franchise’s marketing team can subside and focus on what you do best, delivering results!

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Company Posts

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.

Col'Cacchio

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Vital Stats

  • 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

colcacchio-pizza-franchise-dessert

  • 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.

Related: 300 Business Ideas To Inspire You Into Entrepreneurship

#FoodwithaStory

“Our journey started with a single restaurant on the foreshore with the aim to serve the very best pizza around” – Greg Mommsen, Business Development 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 Development 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

Related: Got An Awesome New Business Idea? Here’s What To Do Next

Visit www.colcacchio.co.za or call Tarryn Godley on 084 800 7264 and let’s get this adventure going.

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