Is Franchising for Everybody?

Is Franchising for Everybody?

 

Steve: My name is Steve Rockwood, and I’m the marketing manager at PureDriven. Today we are going to talk about is franchising for everybody. I’m joined by my co-host as usual Chris Swanson CEO at PureDriven. Chris, would you like to say hello to the audience?

 

Chris: Hey everybody and Steve how are you as well? It’s been a little while and so it’s exciting to get back together and talk and so I’m pumped to have the conversation today about franchising.

 

Steve: It is actually replaced you with a different Christopher two podcasts ago. So if anyone was listening and heard Christopher as the name of the guest that we had and thought he sounds a little different is because it was a different person. We have a rule on the show. You have to be called Steve or Christopher or you can’t talk I guess.

 

Chris: Exactly. Well, it’s a great name. So, you know, I’m happy that a Christopher replaced a Christopher.

 

Steve: Yep. It happens especially at PureDriven. It seems like we hire in threes. There’s three of everything so that’s how we do it. So today we’re talking about is franchising for everybody and we’re talking more about on the business owner side, not so much a company side so not hey, I want to turn my business into a franchise but more of hey, I want to start investing in a franchise and start running it. So that’s actually the topic for today. So Chris my first question on this topic for you is what are the benefits of becoming a franchise?

 

Chris: Well, I think the key of all this stuff is to know first of all who you are. Steve we talked to franchisees all the time who owned, you know store retail location, restaurant and there’s a lot of surprises because no matter what in people’s minds there’s an assumption that when you get into the franchise business and you become a franchisee that it’s automatic that everything has been taken care of for you that you just need to show up in some cases not even show up. You just push a button everything can happen the marketing is in place all the branding all the inventory is going to just you know, supply chains going to go smooth in the reality is as we call that kind of an intrapreneur. The reality is, is you really are still having to manage that and run that; and to do well at it at least what we’ve noticed that success follow the process that the franchise is giving you your you know, your corporate brand. And so that’s the first thing I want to say Steve is that’s important because if you have the mindset going into it that hey, you know, it’s just easy, well that’s going be a problem. I will tell you some of the biggest benefits are some of those risky things that we get into a business kind of encounter. A lot of times you’ve got the support already in place. You know, what insurance is should you have you know, what’s the proven process that’s in place, you know supply chain- you know, where can I order things from? Having a person that you can talk to if you have issues, an annual conference is pretty common. So the benefits are ultimately some financial freedom. If you follow that process and so that really is kind of the key and you know, either way just going to with the right mindset is always important. Be positive but be realistic and know that you can’t just expect somebody else to take care of everything for you and have success in this industry.

 

Steve: Yeah, I got you. And that is one thing I’d like to touch on the benefits is just the legal and the financial side. You and I both own businesses and I know I am just was lost when it came to the legal side of things and the first year of accounting I had no idea what I was supposed to do. So having someone there to tell you how to do it and that’s done it before would be massively helpful.

 

Chris: Yeah, that part of it is definitely priceless and what happens we see with season. There’s a there’s kind of like a scale that happens. I’ll say you get new franchisees in they come in a lot of times with most part they’re like, oh yes, whatever corporate will tell me what to do and then usually what starts to happens is you start getting franchisees who are disenfranchised and they start getting unhappy with the franchise because they feel they’re not being supported the way they want and then you get the real season franchisees ago, man, that was invaluable having them behind us was this kind of like this flow of thought process and it’s really interesting to me how people go through that through the years with particulars brands chains and management changes. So it’s not this like slam dunk easy, I got a package business and that’s the way I go. In a way I feel and that’s really important because, what a lot of times when you’re making the decision to get in with a brand and they’re telling you oh, we’re great brand you can make us money and so on and so forth and you’re going through all those disclosure documents and all that what I see quite often when people leave they’re asking ‘Should I do this?’ is what does the marketing structure look like? Because one of the key differentiators that I find pretty consistently is, you know, who did a lot of different types of burgers, Steve out there, but who can tell the best story about their burger? Who can say this is really a unique burger who can you know, say their unique retail shop? Different than everybody else? Obviously whoever is able to do that through marketing and communicating that message and branding is often this more successful owner and if you don’t have the support from corporate for that marketing structure that’s going to be a problem. In the last 10 years we’ve seen that marketing system really be the paradigm shift has been powerful and fast and hard frankly for a lot of the brands because they don’t know where they should make their investments and supporting at the local level the franchisee and they don’t know what the best things they can do for the franchisee and the franchisee is saying, ‘Well, there’s things that I want to do and its so fragmented now that seems true. You used to put your ads on radio or television, maybe did some drops. Now it’s like I got to do 50 things it feels like to be successful. So point of that is if you don’t have that marketing support, and that’s not marketing telling you this is exactly how it’s going to go, that’s typically marketing having good strategy, working with you, making adjustments, being able to change channels that you’re advertising on quickly, being able to have the creative behind you and content behind you, that’s really what we look for.

 

Steve: Yeah, and I just want to give a quick mention to ReMax. They have an amazing platform for their agents that I’ve seen before and I’ve work with a few people that use it, and they have so many options for marketing and they make it so simple for the agents. It’s really amazing for someone that just became a real estate agent to have access to all these different marketing tools that with a lot of franchises they probably wouldn’t have. So just want to mention that that if anyone hear is a Remax agent, you guys have it really good.

 

Chris: And there’s a lot of you know, just quickly on that, there’s a lot of brands that are kind of starting to figure out the need for content creative to quickly stream down to their franchisees at the local level. And again, whether you’re a multi store owner or about the short corporation or just an individual who ones one or two. This is important stuff because, you know, where the eyeballs are now, where the ears are is really where you want to be when you’re putting a message out. It’s the first most important part of marketing, and so if you can’t get there, you don’t the support of your brand, that’s going to be problem.

 

Steve: It is, and my last question for you Chris, if anyone here is listening and you aren’t a franchisee yet, but you’re really thinking about trying it, Chris who is franchising a good fit for?

 

Chris: Well, you know franchising is great for those people who want to own a business that has an established structure and you can do that a lot faster too, you can grow a lot faster with franchise. If you like having some freedom and flexibility, but love having some established rules instead of have to figure out those rules on your own, that’s the perfect person for franchising. So you know, really it comes down to, at the end of the day really soul-searching and asking yourself the question; but I will tell you it requires good old-fashioned hard work. Don’t ever walk into this thinking your this is going to be easy. If it turns into an easy deal and you made great money wonderful, but that is the exception, not the rule.

 

Steve: That is very true. And I’m sure if you’re trying to own your own business, you probably have that work ethic already. So hopefully if you do you can look in the mirror and say yep, that sounds like me and if you don’t, then maybe you’re going to do something else with your career, but I think that’s very helpful. Chris you have anything else to add on that topic or should we wrap this one up?

 

Chris: No, that’s great Steve, and just everybody out there, if you’re seriously considering about opening a franchise, becoming a franchisee, just do your homework as everyone says. There’s a lot of resources and a lot of people that help you. Don’t make any fast decisions based on you know rumor or knowing that this is a company that automatically guarantees results, things like that. We see a lot of that kind of stuff that and you really want to just do your homework and know that you’re ready to do.

 

Steve: All very true. Thank you for that Chris, and if you are a business owner that you’re trying to think about franchising your actual business already and not becoming a franchisee, becoming more of a franchisor we do have a podcast episode on that as well. So just go to PureDriven.com/podcast and you will definitely find it pretty quick. That’s all we have time for today everybody. Thank you for joining me today Chris as always and thank you everyone for listening to the podcast. We’ll catch you next time right here on ATM.

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