Q&A

Q: After visiting a franchise exhibition, what should I do next?

 

ÉLISE BILLY
Principal solicitor, EXB Legal
A:  The key next stage is research. You should narrow down to the franchises that were of most interest. After contacting them for further information, they will let you know of the next stage in their recruitment process, and may send you a more detailed prospectus. Your research should include internet research, financial research (on the franchisor and on any franchisees for whom you can get information), speaking to as many existing franchisees as possible, liaising with the franchise department at your bank, and getting legal advice on the franchise agreement for your chosen franchise. The bfa can also give you advice and, in particular, can point you to guides on becoming a franchisee and to seminars you
can attend. 

Before making your decision, you need to be sure that becoming a franchisee is right for you, and that the selected franchise is a good match for you. The business should meet your financial expectations, and be in an area that interests you and matches your skill set. Once you have a shortlist, you will also want to compare them to similar franchises. You should assess the support and package offered and the management team (although personnel could change).

 

KEVIN COX
Franchise director, Destination Alliance
A: Very few people have the chance to make the type of investment required for a franchise more than once, so you must get it right! Firstly, and most importantly, sit down and very carefully analyse how much you can afford to invest – let’s be very blunt about it, as attractive a proposition may be, if you cannot afford to purchase it, run it until it starts making money and continue to support your family, then there is no point even dreaming about it!

From the gazillion brochures you collected, you will now perhaps have whittled it down to 20-30 that are affordable – next you must ask yourself what you want to do. If you are a talented manger and leader of people and derive a great deal of satisfaction from driving teams then a one-man business may not be right for you!

From the final short list, speak to each franchisor, visit the ones that excite you and make a very careful decision – if you do not feel comfortable, walk away and start again!

Q: What should a franchisee be looking for in a franchise’s marketing package?

 

NIGEL TOPLIS
Managing director, Recognition Express, and ComputerXplorers
A: Most successful franchise businesses rely on two key aspects of business management – sales activity and marketing activity.
Sales activity is short term – instant response – and includes things such as networking, gaining referrals, dealing one-to-one with customers, after sales service, etc. It is about gaining rapport and engaging the customer or prospect such that you get a sale fairly quickly.

Marketing is very much more medium to long-term and is about setting the foundation of the business – creating brand awareness and generating exposure for the business – ensuring a much larger group of prospective customers know who you are and what you do.

Marketing is the very basis of any successful business and a good franchisor will have programmes, systems and collateral to ensure that the franchisee can build the business from the bottom up.

A good franchisor will provide several levels of marketing support, from which the franchisee can select.

Depending on the business (b2b, retail, food, ‘man in a van’) the support may cover some or all of these:

• Contact management system – critical to maintain an up to date\
• Customer database
  
• Product literature
• Additional ‘hard’ collateral – detailing services and value added proposition
• Centralised marketing programmes – to generate appointments on behalf of franchisees
• Networking opportunities
• Advice on gaining referrals
• Monthly e-mail promotions for the franchise
• Extensive product catalogue 
• Comprehensive range of awareness cards for franchisee mailing
• Marketing planning support 

GRAHAM MONK
Partner, SmartGrowth
A: Sales are the engine that drives every business and the fuel that powers that engine is marketing. As a franchisee you’ll need to implement proven, results-based marketing as and when it’s needed – it might be for things like seasonal dips in demand, the impact of a new competitor opening in your territory or to attract new clients – you’ll have to become a marketing expert overnight.

Remember a franchise is meant to be a turnkey solution, so you need to ask: Is there a launch strategy? Does it have a proven track record attracting prospects and turning them into paying customers? What is the proposition ­– the ‘hook’ that generates consumer interest? How does it compare with the competition? What happens after the launch? Given the business has been going for a few years I’m presuming that there is a mine of other marketing materials, which address lots of different issues that you might encounter in the coming years?

Before you buy a franchise make sure that it has marketing strategies and executions that will help you build a successful and profitable operation! (If it doesn’t have them and you do decide to go ahead I can recommend some good books about marketing that you will need in the near future...).