Why people buy franchises? Maybe...
We love Seth Godin....
The answer to, "is that the best you can do..."
is always no.
A better question is, "what resource would enable you to do even better?"
When the cost of the resource (time, people, money, freedom, boundary easing) is worth the benefit, then sure, go for it. If you can't make it better, hire someone who can.
Posted by Seth Godin on January 22, 2014
Franchises and Profit
Every franchise partner or potential franchise partner inevitably asks "How much money can I make?". Pointed and valid question, but its not always easy for Franchisors to answer.
The truth is; profitability is dependent on your overall ability to manage and control variable costs, the location and traffic patterns, market trends and the effects of the local economy, as well as many other items outside the franchisor’s control.
So what can the franchisor control to help you be as profitable as possible?
- Location Services; location selection, lease negotiations; a good franchisor learns and understands the market. They help negotiate the best rate - best landlord improvement allowance to help you get up and running
- Training; a good training program is integral to your success and your understanding of the business. Franchisors can't teach acumen, but they can teach all aspects of their business from top to bottom. Ensure the franchise you choose has a multi-level training program outlining financial, operational and marketing protocols.
- Furniture and Fixtures; pick a franchisor that negotiates the best price for you! not them! Franchisors make money off of selling you everything you need. That's the business, but choose a franchisor who has a fair mark-up, one that has been diligent in selecting the materials for build-out, equipment package, the contractor, Architectural and Mechanical and Electrical engineers. A good franchisor has developed a system that has all of these relationships in place and utilizes those relationships to their advantage. Ask your franchisor about architectural costs, more often than not, they are not required....
- Branding; this one goes without saying.......but just because you buy a recognized name, doesn't mean you'll be making money. A franchisor's brand is one thing, but as mentioned above, find a franchisor who cares about you and your ability to make and maintain a profit. We've seen plenty of brands rise and fall because they haven't made it about you, but them.
- distribution; or cost of goods sold. inherently, franchises have a product to be sold. Ask yourself where this product comes from, what makes it unique to other suppliers, most of the time, its cost. Your franchisor should have tremendous buying power on these products and pass it along to keep you competitive
Rob Hilditch, VP of Business Development, Joey's Franchise Group
Joey's Restaurants | MVP Modern Barbers | Homes & Land Magazine
1-800-661-2123
Passion in Franchising
"Working hard for something we don't care about is called stress; working hard for something we love is called passion.", Simon Sinek.
At Joey's Franchise Group, we take PRIDE in our system.....
P - passion is,
R - required
I - in
D - delivering
E - Excellence
Joey's Franchise Group Partnership Program
Did you know that our Franchise Group owns several Canadian based franchise concepts. Our diversity in franchising builds our network across several vocations and industries. This gives us tremendous acumen on franchise systems and enables us to find the perfect franchise just for you.
We have systems with investment levels as low as $75,000 up to $500,000. Check our systems out individually here;
Www.joeys.ca , two restaurants to choose from. A full service Joey's Restaurant or our fast casual concept, Joey's Urban.
Www.mvpmodernbarbers.com, a hip modern salon for men. No fluffy pillows here!
Www.hlcc.ca, Homes and Land Magazine Canada, a printing, distribution and advertising franchise for Canadian Real Estate
"Our Franchise Partners are the reason for it!",
Call Rob Hilditch, VP of Business Development - Joey's Franchise Group
800-661-2123
What to look for in a franchise!
When you're doing your due diligence and research into a franchise company, you should consider the Four C's!
Character - meet the management team, are they of good character? Have you spoken to existing franchise partners?
Consistency - how has the brand longevity been? Are they profitable?
Competency - how many years experience do they have in the brand in their vocation? What's the managements background? Understand the operations background of the business?
Chemistry - ultimately, the franchisor is your partner, you need to work together! Do they give you the warm and cozies? Or, are they someone you will argue with all the way through the process.
"Our Partners area the reason for it!", Rob Hilditch, VP of Business Development, Joeys' Franchise Group.
Leadership in Franchising
The most important part of franchising is instilling trust in your franchise partners. If you have their trust, they will follow you anywhere.
At Joey's Franchise Group, we take pride in calling our franchisee's, partners. We don't exist without them and we stand shoulder to shoulder with them while they learn the Joey's franchise systems.
"Our partners are the reason for IT! ", Rob Hilditch, VP of Business Development, Joey's Franchise Group
1-800-661-2123