A Tale of Two New Franchisees
Entrepreneurs who choose to become franchisees enter the industry with a double dose of excitement because statistics prove that ‘it’s only a matter of time’ until they begin to see success and start making money.
While the franchise model continues to prove itself across thousands of different concepts and brands, the success of individual franchisees lies largely in their own hands. Before a new franchise concept can operate, it first needs to open. While the paths may be similar, each journey can be very different.
Take, for instance, two restaurant professionals who recently signed Franchise Agreements:
|This entrepreneur had been working in QSR and fast-casual restaurant concepts for years. The goal was to learn the ropes and eventually become a franchisee. This person knows operations inside and out and worked hard to make their dream a reality. Fast forward a number of years and this person achieved their goal: They signed a Franchise Agreement to own and operate their own restaurant franchise.||This entrepreneur has a degree in marketing and been a business professional for the past 15 years. For ten of the past fifteen years, this person worked on the corporate side of three different multi-unit restaurant franchise concepts, each time crafting marketing campaigns that were very successful. After much consideration, this person also signed a Franchise Agreement to own and operate their own restaurant franchise.|
So which new franchisee is better prepared for the road ahead and more likely to open a successful restaurant? Toss a coin! Most people are shocked to hear that the outcome of such a major career decision comes down to a simple coin toss. Surely that can’t be possible – right? To a surprising extent, it is.
Because of each one’s past business experience, both will likely be successful once their restaurants are open. The tipping point will come down to how much development experience each one has (or learns) once the Franchise Agreement has been signed but before real money starts flying out the door. Whoever is well versed in calculating development timelines and realistic costs, in understanding all of the intricacies and the ‘right’ resources that go into getting their restaurant built, and whoever effectively manages the timeline, resources, and on-site challenges once the clock starts ticking will definitely have a more successful restaurant opening.
The task of getting the doors open is an important component of franchise success and yet many newer franchise professionals don’t realize just how much is involved until the tally of costly mistakes becomes painfully obvious. Many are left weary, financially strapped, and scared.
This scenario plays out across the board for concepts that operate from brick and mortar locations: restaurants and breweries, fitness concepts, beauty and healthcare/wellness concepts, entertainment concepts, you name it.
Doctors, dentists and orthodontists are becoming franchisees of chiropractic, men’s health, and dental concepts. Professional athletes are in the game too. Each knows their craft very well but few are familiar with the build-out tasks of getting their locations open.
If you or someone you know is joining the franchise ranks, NOW might be a great time to look into the National Franchise Institute’s Brick & Mortar Franchise Success program. A great concept, a proper plan, the right knowledge, and experienced resources will make all the difference so your success extends beyond simply getting the doors open but building your legacy (and your bank account) in the process!
To your success…