What IS franchising?
Some time ago, Joe Mathews of Franchise Performance Group asked a group of franchise industry colleagues: What is franchising? Whether you are thinking about investing in a franchise, franchising your business, or providing services to the franchise industry, it’s critical to gain see past the one dimensional “Be your own boss! Control your destiny!” portrayal of franchising, and understand the real nature of franchising, and the philosophies that lead to true franchise success.
In this series, I’ll share with you a variety of the opinions and insights from a wide range of personal and professional perspectives, and invite readers to share their own views as well.
WHAT IS FRANCHISING?
The way that I look at franchising is that it doesn’t have much to do with the distribution of products or services. It’s all about a franchisor’s ability to lead and motivate a group of independent business owners toward a common philosophy and goal. We tell our clients that when they get into franchising, they need to move away from the mentality that they’re in the restaurant, pest control, lawn care, etc. business. They’re now in the people business.
I’ve seen great business concepts fail in their attempt at franchising simply because the owners didn’t understand this. I’ve seen mediocre concepts thrive as franchise systems because their owners understood how to lead and motivate franchisees.
Dave Hood, President, The iFranchise Group
Franchising is a promise. When made by and between mutually commited people that share vision, values and ethics, it can be provide the quintessential model for that over-used expression, “in business for yourself, not by yourself.” Franchisors must become masters of properly managed expectations, their own as well as those of their franchisees. When each party properly understands what the other does (and should) expect from the relationship and then fulfills accordingly, franchising as a business model performs at its best.
Stan Friedman, Executive Vice President, Wing Zone Franchise Corp.
I would define franchising as a method of duplication through training.
Regardless of the product, service or system the franchisor is the trainer of franchisees to implement their already successful concept. Of course with any group of trainees there are periods of “refresher” courses and new material/subjects added to the curriculum.
WHAT DO YOU THINK? SHARE YOUR DEFINITION OF FRANCHISING BELOW.
Sean Kelly has 20 years of experience as a franchise marketer, consultant and a prolific writer on business start-up and growth topics, including franchising issues, how to find the best franchises, franchise disputes, franchisor marketing, franchisee marketing, and the top new franchises emerging today.