Editorial

Pick me! Pick me!

Does it surprise you to know that the very best franchisors only “award” franchises, they don’t “sell” them? It’s true … now let’s look at why.

If you buy, let’s say, a Crunchy Salad franchise, the store may be yours but the name belongs to Crunch Salad and everything, from the food to the fixtures to the customer service, reflects back on the corporate office. When deciding whether someone will be awarded a franchise, the franchisor must determine if the candidate has the ability and skills necessary to follow the system and to present the business in a professional and positive manner.

Franchising is not about throwing something at a wall and waiting to see what sticks. Franchisors don’t award a bunch of Franchises hoping that some of them will be successful. A business that closes tells the public that something about the concept isn’t working and they’ll form a negative opinion about that product or service. Also, and of extreme importance to a franchisor, by law they must list all failed franchises in their Uniform Franchise Offering Circular. A franchisor with a list of failed units will be less able to attract new franchisee candidates to the business.

Finally, in most cases the franchisor makes money on royalties based on a percentage of the franchisees’ revenue. Therefore, the more successful the franchisees, the more successful the franchisor.

Here are some suggestions for your Discovery Day meeting:

Dress to impress. Although you may consider this meeting as an opportunity for the franchisor to “sell” you on the attributes of their business, you are also there to sell yourself. Your attire should reflect this and you will want to look your most polished and professional. Even if the business recommends business casual attire, wear a suit and tie (or the female equivalent) to the interview.

Be likable. A franchise is like a family and the franchisees of a system form a valuable peer group. A franchisor takes this into account when awarding franchises. Be personable, professional, enthusiastic and outgoing. Maintain eye contact when speaking and ask questions that show your interest. Be a good listener. Remember that not everyone is interested in every idea that pops into your head; however, everyone is interested in having you listen to their ideas.

Dale Carnegie, who wrote How to Win Friends and Influence People (which was first published back in 1936!), suggested using the following six methods to come across as likeable:

Become genuinely interested in other people
Smile
People like the sound of their own name
Be a good listener
Talk in terms of the other person’s interest
Make the other person feel important and do it sincerely

Have industry knowledge. One of the main advantages of Franchising is that you don’t need direct industry experience because when you are awarded a franchise you most often will receive comprehensive training from the franchisor on running your business. Having industry knowledge, however, will show that you’ve done your homework and you understand the franchisor’s customer base and competition.

Show you can follow a system. Franchisors are NOT looking for someone who will reinvent the business. If you are trying to improve the concept you are not working on your own business. This is a red flag. Don’t tell the franchisor that you plan to deviate from their tried and proven system. Do tell them they you are impressed with how thoroughly they’ve documented each and every step and that you plan to follow the system to the letter.

If you can’t do this sincerely, franchising really isn’t for you. If you want to take risks, think outside the box, make up the rules as you go along and be a true entrepreneur, you won’t be happy as a franchisee.

Demonstrate your business savvy. Be prepared to discuss your past business experiences, particularly as they will relate to running your franchise. Some important areas to elaborate on include managing people, customer service, and sales and marketing. Success you’ve achieved in corporate America is a good indication of the results you can see as a franchisee. Franchisors will be particularly interested in both what you have achieved in life and your expectations for your new business.

Prove you are financially qualified. No good franchisor wants you to borrow so much money for a business that you’ll never be able to pay it back. Franchisors are focused on success – success of each franchisee and success of the system. They have resources to help them determine the amount of money a new franchisee needs to open and run their business until a break-even point. You will want to do your financial Investigations prior to your franchisor meeting so that you can demonstrate how you will obtain financing.

Fit in. This is sort of like “be likable” but not exactly. You can be a nice person but still not fit in to a particular group. We’ve all said about someone, “He’s a nice guy but I don’t think he’d fit in with our company.” Because this is an intangible quality, I’ve put it last on the list but that doesn’t mean it is of less importance than the other items.

When interviewing, you want your interviewer to feel you have the same values as she does and that your style and personality will mesh with those with whom you will work. You can often find out about the corporate culture from their sales literature, their website or from phone conversations you’ve had with the office staff and the current franchisees. You might hear phrases like, “We’re a very family-oriented business,” or “Everyone here is into extreme sports. We’re going to hang glide on Saturday.”

By forming an opinion of the culture before your face-to-face meeting, you can decide if you will be comfortable in a long-term relationship with these people and also come up with ideas to show that you are someone they’d want on their team. As I always say, if you don’t like wearing chaps and spurs, don’t buy a Cowboy Jim franchise.

Buying a franchise is not like buying a house. The franchisor will closely evaluate you for personality, experience, compatibility, financial stability and business acumen. If you don’t measure up, they won’t risk their business on you. Also, it’s not uncommon in franchising to have two potential franchisees look at buying the same territory. After all the work you’ve done towards finding a franchise you want to invest in, don’t let the opportunity slip out of your hands because of inadequate preparation for your Discover Day. With the right attitude and some basic research, you can make sure your Discovery Day meeting ends with a handshake and a “Welcome to the company!”