Franchising can be very personally rewarding and financially lucrative, if you get it right the first time; and this can be done with the right assistance. The franchise industry is less forgiving of legal, operational and financial mistakes.
We were acquired by a Canadian firm, however, we did not sell our passion for franchising. Instead of retiring, we decided to make use of the many executive lessons learned, and the many consulting service contacts we had made, to embark on a new mission: To help you and other entrepreneurs to avoid the major, expensive errors in judgment that we experienced and solved.
Throughout our franchising journey, we uncovered and documented 33 of our most costly mistakes. Looking back, if we would have done those things right, we could have saved over 2 million dollars. We want to provide you the opportunity to enhance and maintain the profitability of your business.
As an example, my company made an early and easily correctable error. At the young age of 30, I considered myself an accomplished entrepreneur. As such, and against sound advice to the contrary, I hurriedly determined that all I had to do was prepare a Franchise Disclosure Document, run an advertisement, and sell a few of franchises. I proceeded to do just that.
Now, of course, I realize that much more is required to prepare for franchise expansion. For one thing, I did not fully appreciate the need to fully analyze and discuss with someone of knowledge, each and every aspect of the Franchise Disclosure Document (FDD). I should not have treated the FDD as a goal within itself. The FDD describes every operational phase of your franchising system and each section presents an early opportunity to analyze, discuss, create or discard dozens of operational methods and decisions; Decisions that could make or break the entire venture.
You must carefully work with an experienced advisor like Franchise Growth Partners to thoughtfully answer all of the questions in the operational sections of the FDD, to determine and analyze: (1) whether you and your business are suitable for franchising; (2) how you want to organize your system; (3) how you intend to market and sell your franchises; (4) the costs of selling a franchise compared with the initial licensing fee you intend to charge; (5) the basis of your continuing monthly or weekly royalty and what percentage or flat fee will be charged; (6) what operating standards you will impose on your franchisee; (7) the total investment cost required of your franchisees; (8) the extent of the training and ongoing support you intend to provide; and (9) a dozen or so other important factors.
We will use the core activity of the FDD as the hub from which to determine and design the various financial, structural and operational aspects of establishing and developing a successful franchise system. Using our 12 Comprehensive Learning Modules, and by way of our “discussion” method of working with you, we will have the opportunity to explain, and show you how to avoid, the 33 basic problem areas. And, we will be with you all the way, from document preparation, state registration and the sale and set-up of your initial franchisee.
After that phase, we are confident we will have developed the rapport and confidence that will further result in a long and successful growth partnership.
We have arranged to work with experienced attorneys who provide us with the legal framework within which we insert the carefully considered aspects of your franchise system. When finished, we forward the FDD to that same attorney for his legal review and any other suggestions he or she might have. We consider this the perfect blend of consultant and attorney in building this complex and useful document. Should you also want to retain your own personal attorney, you are free to do so and we will offer the same degree of assistance to you and your counsel.