Doc Franchise Writings and Ramblings

This is a continuation of yesterdays article, "Franchisors, Here's a Criteria You Might Have Missed!"


Due to the tragic problem of ignorance and passivity in our world today, I've been extolling the benefits of reading. Yesterday, we talked about number one: reading sweeps the cobwebs away; it expands us. Today, I'll note three additional benefits.


2. Reading increases our power of concentration.

Through the discipline of reading, the mind is programmed to observe and absorb. It replaces the "Entertain Me" mentality with "Challenge Me." The eye of a reader is more observant, alert, probing and questioning.

After I left home for the last time I found myself in a house full of party animals. Since I lived with just my mom I had become comfortable with solitude and with solitude I found reading. One day, when the house we rented was uncharacteristically quiet I lay on my bed and began reading a book my sister had given me, In His Steps by Robert Sheldon. As I read it was changing my life. Suddenly I realized I was being watched. One of my roommates was at the door staring at me. Finally he spoke up, "So I guess this is why your mind is so much calmer than the rest of us huh?" It struck me that he was probably right.

3. Reading makes us more interesting to be around.

Small wonder the boredom factor in social gatherings is so great! After you've run through the weather, the kids, the job, and your recent surgery, what else is there? Being a reader adds oil to the friction in conversation. Furthermore, it opens to the businessman new avenues of approach to the outside world. It helps to meet the inquisitive and those needful of our products and services on their own ground or expansion of places they wish they could go. We need to read widely, including some periodicals as well as the classics.

4. Reading strengthens our ability to glean truth from Inspired Reading.

In the Bible, in the New Testament section there was one of Jesus followers. His name was Paul. Paul was a late player to the "Party of Jesus" but become one of its greatest advocates. If you have any sense of the Christian faith at all it most likely has much to do with Paul. He was what you might call a true warrior. At one point Paul's faith in Christ had gotten him tossed in the pokey. Only this was serious. This was probably going to be it for Paul. Paul was in the dungeon awaiting death, he asked his friend to - bring the cloak which I left at Troas . . . and the books, especially the parchments. - 2 Timothy 4:13

The "parchments" referred to the sacred manuscripts, copies of what we think of as Biblical Scripture.

But what about "the books"? What books?

Obviously, those volumes he was reading prior to his imprisonment. Right up to death, that capable spokesman for God - that master of logic - was reading. He certainly would have agreed with another great Christian of letters and of reading John Wesley:

Either read or get out of the ministry!

I think the same holds true of businessmen, of franchisees especially. We have the opportunity to be on the cusp of our market segments but we can lose that edge if we don't keep up. Franchisors you need to create a preferred reading list for your franchisees. You need to have a book of the month club.

Can't find the time? Come on, now . . . not even fifteen minutes? Don't know where to start? How about the library? Most every town has one. Heck, go to the second hand book store. They're filled!

They probably even have books with pictures in 'em. (For your kids, right?)

...and I hope I'm sending this to the ones who will read it and comprehend how powerful it is!

The three R's have stood the test of time as reliable criteria for a dependable education. They are poised like disciplined sentinels against one of man's greatest enemies: ignorance. The original blocks of granite, unimpressed by educational styles, unmoved by change, these three solid friends are trustworthy to the end. Like salve on an open sore, they reduce the fever of panic, giving stability when so many voices demand obedience or other voices, just as demanding elicit panic.

But there is a fly in the ointment . . . one chunk of granite is beginning to crack . . . the sentinel is getting sleepy. The enemy has found the chink in our armor. He has discovered that the first "R" is up for grabs in the twenty-first century. And he is smiling.

"Send me a man who reads" is no longer the clarion call of industry or management . . . or sales, for that matter. Nor is the professional person necessarily known today, as he once was, for his breadth of knowledge . . . and that includes franchisee's and franchisor's.

Few current tragedies pain me more. It is now a fact that one half of the students who graduate from college never read another book. Even though a Ph.D. is virtually obsolete in five years unless he or she continues to read, many of them opt for an easier out. It would shock us all if we knew how little the person reads who defends us in court or does surgery on our bodies or gives us financial counsel. Aside from daily doses of TV Guide, a chuckle at "Peanuts" on Sunday, and a quick skim over the sports section, many an American never cracks another magazine or book.

It's amazing! Before kids are in school, they can give you the day, hour, and channel for a dozen different TV programs, but have trouble struggling through Dick and Jane Play with Spot into the second and third grades. Little Leaguers can spit out the batting averages, RBIs, and stolen base totals for each of their favorite baseball pros (er...so can I for that matter) . . . but stick a copy of Tom Sawyer in front of them (or their parents!) and boredom strikes like summer monsoon lightning in Phoenix, Arizona. A growing number of California high school grads have trouble comprehending basic application forms for employment.

Enough about the problem; let's consider the benefits. I can think of four and will give them to you in two parts. Here's the first:

1. Reading sweeps the cobwebs away.

It enhances thinking. It stretches and strains our mental muscles. It clobbers our brittle, narrow, intolerant opinions with new ideas and strong facts. It stimulates growing up instead of growing old.

Francis Bacon's famous rule is so true, so good:

Read not to contradict or confute, nor to believe and take for granted, nor to find talk and discourse, but to weigh and consider. Some books are to be tasted, others to be swallowed, and some few to be chewed and digested.

Reading expands us. It scratches those itches down deep inside. It navigates us through virgin territory we would not otherwise explore. Tomorrow I'll share three additional benefits. Until then, try reading something expansive!

Part of the challenge many franchise organizations have is that the franchisee's they have do not even review the documents, the training's nor the many magnificent business tomes that would enrich their experience and create greater awareness and savvy for their chosen work.

Until next time, someone out there pick up Greg Nathan's paperback, The Franchise E-Factor. You'll be better for it.

I'm often confronted with people who have had relatives and friends who had made attempts into business, some with a more entrepreneurial bent into their own, independent business and others that became franchisees. If I am presenting them with an opportunity in franchising most invariably the acquaintance had a bad experience or was in the midst of one. Typically after a long and protracted exposition on this person's accomplishments, skills and education a question follows relating to what happened.
I have no response about the person because hearing someone's monologue about someone they know, like and perhaps admire is never the whole story. What I will do with them is provide them with components that I believe every business person must possess in an attempt to get them to do a gut check to see if they have these or have displayed them in the past. I will tell you without them and you will have a challenge succeeding. Here they are:

Are you a decision-maker?: I put candidates through a process sale and I make them follow each step. I do this to determine A) Can they follow a system/instructions and B) Will they come to conclusions about the homework they complete. Can they make decisions. In small business decisions constantly need to be made, and many times you don’t have the luxury of time to digest all the information you would like in order to do it. You will have employees and vendors who will look to you to be confident and timely and provide the resources necessary to accomplish the objective set forth in your decisions. Are you a decision maker or do you over-think and procrastinate your way to nowhere?

Do you have learning and adaptation capacities and some basic business skills?: There are so many skills critical to business success–sales, marketing, accounting acumen, communication, delegation (NOT abdication) and leadership come to mind. You must be able to execute a daily game plan that translates into a monthly strategy and into a quarterly development and then read what just happened. The ability to learn and adapt is a trait some have and others simply do not. The franchise system provides you with the 90% solution but there is always real life and it requires your ability to adapt and use what you brought to the table in order to create the right response. In the military you are taught to start and finish a task by understanding the steps to the end game. They are taught a code of conduct that establishes their baseline, and on top of that they’re taught their military occupational specialty, leadership development, and other skills that they can lean on in business. Hopefully in your business background you had similar experience. If so, a franchise or small business ownership situation will tax that training, skills and learned responses.

Do you persevere or procrastinate?: Every business owner should realize that between successes and accolades there are dark days. Much of this foreboding occurs right at the outset, when you are a brand new franchisee. Do you have the mental toughness to stick it out? Are you a complainer? If so, do NOT become a franchisee. Just don't. Stop now. I mean it. You need to see the situation for what it is; a current condition that has solutions and you must determine you, your resources, skills and presence of mind are bigger than the situation and you will do what it takes to succeed.

Look if owning a business was an easy decision to make, everyone would do it, but being the boss isn’t for the faint of heart. Frankly, most people never get out of the blocks because they want life laid out for them and somehow they feel paying a fee means someone will just turn on a cash machine for their paltry efforts. I hope this isn't you.

A veteran franchisee understands that a firm and focused desire to succeed is critical to any operation. This means defining the goal and the primary milestones or objectives in accomplishing that goal–and learning to keep your focus as you continue to strive for that goal even when you face unforeseen obstacles or impediments.

There are many great franchises out there. Some have amazingly well put together strategies, training, and business systems. But businesses are driven by people with vision, skills, perseverance and determination. Is that you? If it is then get on board, daylight is wasting!

John is a 26-year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates and can be reached at docfranchise@gmail.com. or direct office 480.838.1641

Owning a franchise doesn't qualify you as a better entrepreneur. What might be the things that provide you with the right foundations to succeed in your business and other businesses in the future?


A good friend and franchiser that I know told me recently, "John, we're in the business of finding already qualified franchisee's or successful multi-unit business owners and putting them into our business. You'd be doing us and them a favor if you could point out the things that create the best-looking franchisee's; someone we and other development franchises and Master Licensee's would be attracted to.

This is my first attempt at it. It is based on my years as a Covey Certified Trainer. That training, though somewhat faded through the years has always stuck with me. I've found that a person can rarely handle more than 5 or 6, maybe 7 steps in a process or strategy (though many are broken down into many further subsets it is a great place to create top of mind memory). Besides, if most franchisee's would get just 2 or 3 of these right they'd improve their business 100 fold.

The second component of this was my own personal experience and hundreds of hours of discussion with other multi-unit and area development franchisee's as well as a few Master Licensee's. Their revelations as they moved along the maturity continuum has been revelatory.

1. Create and nurture a positive relationship with the franchiser.

The fact is that a franchisee only benefits from the relationship with their franchise company if they realize it is symbiotic and fraternal. You got into this for your definition of "the long haul," and they brought you into their system in the hopes that you would be a value to the brand. Start with realizing that creating unity will serve your personal purposes more fully than constantly driving wedges between the two of you.

2. Walk in their moccasins a few miles on a regular basis.

It is natural when things are not going our way to aim our scorn and criticism at the big target, the franchise company. But, you need to be mature enough, bright enough, and for the sake of point 1, intelligent enough to realize understanding their position and perspective will help feed the mutual benefit paradox more than simply aggravating them and your own nervous system by another trip to the "whine" bar.

In the midst of pressure I've often watched as franchisee's revert to a completely and fully non-tenable position, "Franchiser YOU got me into this! YOU fix my problem." No! First, no matter what, just like you don't want the government owning companies or running health care (and NO! You don't if you ever want a car that runs or not have to wait 6 months to get into the doctors office!) you do not want to be even more beholden to your franchiser. Secondly, it's your business! You are in business for YOURSELF just not by yourself. They system works best when the franchiser coaches and not acts as partner/operator with you. Every franchise should have a huge sign at the entry of their business opportunity, "No Childish behavior tolerated!" Act as an independent business person and be proactive relating to your business issues.

3. Use the benchmark tools your franchise system provides - benchmark against success and NOT failure!.

If you are in trouble you do not need to be comparing yourself to the other losers in your system or similar systems. Spending time on BlueMuaMua.com doesn't help your situation. Review your systems successes regularly. Check with them to determine what action steps they've taken in order to ensure their successes. Adapt winning business strategies to fit your businesses needs.

4. Take every opportunity to be involved in your franchises gatherings, conventions, meetings and training's.

Commit to being a part of discovery and mentoring in your franchise system. There is always someone who needs your help (not your whiney) and there are always great business solutions shared or available in meetings. Take copious notes. Ask for clarification. Redundantly resound all those aspects of the meeting that touched off positive thinking processes within you and blow off the negative. Take the high ground and use it to your advantage.

5. Be a source for affirmation and solutions - Eventually you will need to offer your skills and talents to your franchise system

Look, it's obvious that a new franchisee enters their system more needy at the start. That's to be expected. But you should also come into the system realizing, (again) this is YOUR business - YOU open the doors every day - YOU pay the bills (everyday) - YOU hire and fire and YOU benefit from the quality of your ability to absorb solutions. for the franchisor’s support. Ultimately, (here is a lesson in walking in their moccasins) the franchise companies prays your involvement in the system makes the system that much better. That takes your involvement. It takes you moving from diapers (deep needs assistance) through training pants (I can walk and feed myself thank you) to maturity. The goal is maturity.

6. Be a systems based franchisee and not a talent pool slave.

Most franchises have employees (though, admittedly, not all) And, though you hire for success, never abdicate the success of your business to the people within it. Franchising sets itself apart, regardless the market, product or service offered by the franchise system. Revert back to that system, which includes employee, human resource and management policies and make sure that the system is adhered to in the face of pressures by the individuals to change the business. Often sadly, people will come and go in your business. The business itself must live and thrive! Stay the course of the business system.

7. Be a positive and shining light in the community where your businesses live.

Your business, and its physical presence should create warmth and a smile to the residents of that area. What do you do in order to win their hearts? What are their concerns? How do you marry your business to their interests; their work; their families and their success as a community? You want better employees? Be viewed as a place where good attitudes, good responses, good works and deeds and good things (to be interpreted as things I as a member of this community value) happen. Find time to sponsor, to donate and not just money and things but make sure that your face and that of your employee team, even your personal family are given to do good things.

You wish to be in control of your business? I want that for you. You want to grow? You should! You want to be viewed as successful? Then take positive, affirming steps. Listen, Learn, Ascribe yourself to those who are successful. Take control by acting like the owner of your franchise business. Take responsibility for it's successes and figure out how you can prevent going back through failure again. Hopefully these 7 things will give you a basis for that success. - impacting your own franchise units, the franchisor, and other franchisees is a sure-fire strategy for your current and future successes.

John is a 26-year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates and can be reached at docfranchise@gmail.com. or direct office 480.838.1641

I love technology. It intrigues me. It keeps me excited and ever learning. Technology has also changed the face of business in spectacular ways. It has enabled businesses to embrace a greater community, it has increased productivity, and simplified communication. There are so many positives that they would be hard to name here in this post.

There is one aspect of technology that I find sad, and that is how it has made us lazy regarding personal contact or “face time” with customers and prospects. Email makes it so easy and efficient. But, you know what they say, “out of sight, out of mind.” In business this situation can be the kiss of death. If your entire relationship is email and text based, there is virtually no relationship.

Never believe that expediency is a better choice than relationship.

Electronic customers take on a different dynamic. Customers within a few hours drive are worth having face time with. When they are both a distance and treated with a steady diet of E-Mail you are in jepoardy.

Companies like the investment company Edward Jones, does not allow it’s advisors to use email with their customers. They do allow personal, voice and snail mail contact only. This effort is rewarded repeatedly. Here are some other things that I do to make “face time” work for me:

Coffee Clutch Time: When a person contacts me to see how we might work together, I typically suggest we meet over coffee. This way I can size them up better and try to understand their motivation. I’ve struck up some terrific business relationships this way.

Network meeting: You can use these events to spruce up your sales skills and put a face to a name. It gives you a chance to help someone on the spot. It also is an opportunity to create dialogue and open up lines of communication with potential partners.

In-person presentations: It has been my experience that an in-person presentation is your most powerful ally. I can demonstrate my desire to serve their business needs and I desire it enough to get out of my office and shake some hands. Virtual relationship is an oxymoron. A physical business shows you’re a real business.

Ignore email: I actually did not believe this until I took a lesson from a marketing wizard. Purposely visit customers or at least make phone calls when you get electronic messages. Showing up to chat WILL get you more business. It certainly ensures you will be taken seriously. I can’t tell you how many times I’ve taken something in person to a client that I could have just as easily emailed only to get other projects given to me on my way out the door. Seeing you reminds them of other ways that you can help. In today's virtual discussion environment, it is so rare that it also creates a certain amount of felt need to make sure your time was not wasted.

“I’m in the area” opportunities: Sometimes, when “I’m in the area” I call to see whether I can pop in to say howdie. These friendly requests always brings a smile and some great conversation.

New service meetings: Recently, I emailed a number of old files and offered to bring them a coffee and discuss what I’m offering these days that might be of help to them. A number of them took me up on it, and this effort resurrected some old business.

The point here is not to rely on convenience to grow your business. It’s not about you - it’s about your clients and customers and nothing tells them you care as much as hearing your voice, feeling the palm of your hand in theirs and listening to your laugh when they tell their latest jokes.

John is a 26-year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates and can be reached at docfranchise@gmail.com. or direct office 480.838.1641

The proliferation of B2B franchises - service based franchises - coaching and consulting franchise opportunities has created a whole new category and level of need for financing.

It's been hard enough if you were a capital based franchise (we need build-out, equipment, vehicles, etc.) For a time it seemed all small business capital had dried up. It is a bit better but not a lot.

Today, non-capital intense businesses whose primary needs are working capital, capital for growth (more territory, expansion of marketing efforts, etc.) and only minor capital expenditures compared to manufacturing and retail types still may require capital in addition to their candidates capabilities.

Where do they go? Where does anyone go? Are there alternatives?

Before you run out and begin your search for capital, you may want to consider an approach that many businesses — particularly start-ups and small businesses that may not yet qualify for loans or be able to attract venture capital — have used with more than a little bit of success. It's called bootstrapping. Bootstrapping or booting refers to a group of metaphors that share a common meaning, a self-sustaining process that proceeds without external help. The term is often attributed to Rudolf Erich Raspe's story The Surprising Adventures of Baron Munchausen, where the main character pulls himself out of a swamp, though it's disputed whether it was done by his hair or by his bootstraps.

Today we refer to bootstrapping and it means finding money and resources by any means possible, including begging, borrowing, bartering, sharing, and leasing everything a company needs.

In short, bootstrapping is guerrilla financing.

So, who bootstraps? Many companies do. In fact, some estimates put the total at 75 to 85 percent of all start-up businesses. Three fundamental rules for effective bootstrapping are

• Hire as few employees as possible. For many companies, employees are the greatest expense. When you add up salary, benefits, overtime, and other employee-related expenses, it doesn't take long for any budget to feel the pinch. Bootstrappers avoid this pinch by hiring (and paying) as few employees as possible.

• Lease, share, and barter everything you can. No, you don't have to pay cash for everything that you need for your business to run. Many companies share facilities, equipment, and even employees with one another to spread out their respective costs. An increasing number of firms also have discovered the wonderful world of bartering, the trading of goods and services to other companies in exchange for the goods and services that are needed.

• Use other people's money. Why use your own money when someone else will let you use his or hers? We're not talking about getting a loan, we're talking about convincing a vendor to allow you to pay 30 or 60 or even 90 days after you receive your goods from them. Or, on the other hand, obtaining payment from your customers before you deliver their goods or services. In each case, you have an opportunity to use someone else's funds to your advantage — for a while, at least.

Some of the more common approaches to bootstrapping are:

• Seeking funds from friends and family.

• Getting a home-equity loan.

• Offering equity to employees and vendors in lieu of salary or cash payments.

• Bartering for goods and services.

• Tapping your credit cards.

• Convincing vendors to accept extended payments.

• Starting your business part time while working a full-time job.

• Getting an extra job.

• Working from home or in your garage.

• Sharing offices with another company.

• Encouraging customer financing (deposits and early payments).

• Looking for angel investors.

• Pooling founders' savings.

Although the need for bootstrapping tends to go away as a business grows and becomes more established — and therefore becomes more attractive to conventional lenders and investors — any company, no matter how big or how small, can benefit by applying bootstrapping techniques in its day-to-day financial activities.

One of the greatest dangers as businesses become more established is the growth of overhead — the costs of facilities, administrative personnel, equipment, utilities, office supplies, furniture, and so forth — at a rate far faster than the growth of a company's sales. This is a recipe for poor profits, sluggish growth, and loss of competitive edge.

Bootstrapping can help keep your company lean and mean while keeping overhead in check and profits high.

John is a 26-year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates and can be reached at docfranchise@gmail.com. or direct office 480.838.1641

The odds are against success. The numbers don't lie. The challenges facing the operations of a larger small business development compared to a smaller business component is significant enough that it is best to start smaller, ensure your grip on the business model and then grow from there.

These are all expressions I have used. For the most part I still believe these...IF we were talking 5 years ago I would stand by them, in front of them, behind them and arm myself on all of the information that supports them.

Today is a different day however.

Reading newspapers, listening to the radio, or watching TV today is like drinking from a fire hydrant. There are massive changes in the conditions of our economy. The changes mean franchise companies, particularly new and emerging franchisor's need to rethink their sales and development strategies.

Here are some recent headlines:

* Economy Weakens as Deeper Job Cuts Materialize
* Manufacturing Shrinks Most in 26 Years
* U.S. Slips into a Recession
* Jobless Claims Skyrocket
* World Markets Slump on Economic Fears

In a discussion with several franchise executives recently, the question surfaced, "How can we expand in this market?" I quipped that I was excited about franchise growth in the next few years. I explained that the rules have changed and that smart franchise companies will capitalize on the current economic climate and trends. When my optimism was challenged, I shared why I feel this way.

Why be optimistic?

In times of great upheaval come opportunities. If you read past the doom and gloom I am sure you've read that statement as well. Millionaires were born out of the decade that followed the Great Depression. While it is true that the Crash of 1929 brought unprecedented misery and economic hardship to many, during the same period opportunities were created for the creative, quirky and fearless. The worst course of action as that time exhibited is to do nothing, go about your business and not create a strategy that doesn't recognize the current reality.

While caution should be exercised in positions of leadership, don't ignore the obvious. American workers are going to have to change their lives dramatically. Many people - out of necessity - will have to consider starting a new business, purchasing an existing business, or following the more prudent path of franchising as a route to a new career. Their jobs have, literally, disappeared and reality has finally slapped them so hard that they realize things will never be as they were; security will never be in a company, a position, in a career path again!

On the financing side of the equation while the days of freely tapping home equity and 401(k) plans are gone, many individuals still have the financial resources and/or the ability (courtesy of the U.S. Treasury) to qualify for the recapitalization of existing SBA loan programs to fund their startup. There is money to be had.

Back to the Franchise Companies

The biggest challenge for emerging franchisors in these uncertain, yet dynamic, economic times is how to fund their franchise expansion. Franchise companies face several challenges in today's economic environment:

1. Lead costs are above historical averages.
2. The cost of franchise support is higher as well.
3. A poor choice of franchisees will kill your future growth.

All of these things make Master Licensing and Area Development more attractive growth strategies for newer franchisors who lack the ability to fund an aggressive, rifle-shot franchisee recruitment program and build the infrastructure required for ensuring proper progress and success for new and individual franchisees.

The more responsibility a franchise company must take on to secure the future for the masses of their franchisees, the greater downward pressure exerted on front-end expenses before revenues are produced.

The inability to invest in ubiquitous operational support in the first two years of new franchisee operations is the leading cause of franchisee failures, which in turn cripples the future franchisee validation necessary for recruiting new franchisees. This dynamic creates a death spiral. Emerging franchises who attempt to grow and develop their business from a centralized point create more risk for themselves and their franchise system.

Master Licensing (ML) and Area Development (AD) alleviate significant amounts of the cost burden associated with newer franchise systems. By definition ML's and AD's take on the key responsibilities and costs for providing training and support. With an AD strategy in place:

1. The bulk of the franchisee recruiting costs are funded by an AD or these can be centralized and made a component of an off-loaded relationship with a franchise development company. Either or both ways, it reduces franchiser overhead and provides more focused effort with less pressure on the corporate funding sources. If this is done properly, it will revolutionize recruiting.

2. The resources associated with providing a high-quality support system are delivered and managed by a qualified ML/AD. Not only is this more cost-efficient for the franchisor (because the costs of building a support infrastructure and managing recruiting locally are borne by the ML/AD), but the quality of support to franchisees can be geographically proximate, more focused on business nuance and decidedly more personalized.

The key to success in enabling this growth strategy is in understanding the basic operating principles of Master Licensing and Area Development, including how to recruit and manage them, as well as how to properly structure the agreements. The three mistakes most franchisors make in structuring a program are:

1. Assuming that an Master Licensees is the same type of candidate as a franchisee, only with more capital. Some of the most successful ML's I have known over the years are those who did not necessarily have the best balance sheet, but rather an adequate one; however, they had the core talent, enthusiasm, and skills necessary to drive an organization.

2. Creating a development schedule that is too aggressive. This will drive your AD's to choose franchisees based on meeting a timetable, rather than on purely on their qualifications, which leads to a lower quality of franchisees. They will always want better franchisees because the focus on branding for them is now personal. Craft an agreement that allows them to focus on the best things.

3. Assuming that an AD/ML can do both recruiting and operations. I have never, never seen this structure work over the long term. Offload development to a professional organization that takes responsibility for a significant amount of the lead costs and understands the needs of the ML's/Ad's.

There are many other things to consider in designing a franchise growth strategy for these challenging economic times, but having 10-100 (depending on your organization) qualified Area Developers reduces your company needs for funding recruiting and allows you to focus capital expenditures on improving your franchisor operating system.

This can ultimately fuel profitable growth for emerging franchise systems, something they could not have come close to replicating internally. If you are looking for an organization who can provide you with the tools to make this adjustment in your system you know where to find me!


John is a 26-year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates and can be reached at docfranchise@gmail.com. or direct office 480.838.1641