Emerging Franchisors: Don't Make this Mistake when Measuring Your Franchise Success!
When politicians want to put a favorable spin on some of their economic achievements they usually rely on skewed data points over select measurement periods. They are politicians after all and they all do it - no matter the party. A most recent example is a political post touting a decline of 2 cents in gasoline prices:
The chart looks good! Right? Well when you zoom out and look at the totality of the data, it’s quite a different story…
When it comes to franchise success, similar to macro economics, you need to zoom out to measure success.
What does this mean for start-up and emerging franchisors? It means that you need to plan and measure franchise success over the right measurement period. We recommend 5 years. What does this mean in practice:
You Need a 5 Year Franchise Growth Plan and Budget;
You need to plan a 1, 2, 3, 4, and 5 year franchise sales budget;
You need to invest in durable brand assets - franchise sales websites, franchise brand story development, third-party validation, broker relations, and winning stories - that build on one another and, in time, form the foundation of a thriving franchise system.
Most emerging franchisors fail because their development and growth plan is short-sighted. Its based on a one year marketing spend and once the dollars are spent (i.e. like on pay per click, portals, attending expos without the right strategy….) there is no reusable brand asset that advances that will help sell franchises in years, 2, 3, 4, and 5.This also applies to the franchisees that you on-board, the support they receive, and the financial performance they achieve over time.
If you’re focused on a 5 year strategy, the best course of action and the fastest growth strategy must be measured over a 5 year period. What may look like slow growth in years 1, 2, and 3 could and, with the right strategy and investment, should turn out to be the foundation for substantial and sustainable growth in years 4, 5 and beyond.
Don’t make the mistake of choosing the wrong franchise success measurement period.
Bee Healthy Cafe - If Chipotle wanted to improve their menu, ordering process, and selections, they would be a Bee Healthy Cafe. After a challenging Multiple Sclerosis diagnosis, the founders of Bee Healthy embarked on a better living, better lifestyle journey that started with family meals and led to the passion of Bee Healthy. This brands fresh, healthy, and innovative 3 step menu (Inside - Outside- On the Side) is a winning formula and great franchise opportunity.
Franchisees Kicking Ass: The Franchisee Is King
Megan Thee Franchisee
The new Popeyes and Megan Thee Stallion partnership extends far beyond the usual celebrity brand endorsement.
Shaq. Jimmy Buffett. Venus Williams. Mark Wahlberg. What do all these people have in common? Sure, they’re all incredibly famous with an impressive list of accomplishments, but their true uniting characteristic — one that not all celebrities can boast on their resumes — comes in the form of two words: franchise owner. Celebrities and franchising have gone together well for decades — the franchisor provides a proven pathway to business ownership, and the celebrity offers powerful influence and heightened brand exposure. Now, celebrity collaborations are making a big comeback in the QSR space, and most recently, Megan Thee Stallion has officially joined the time-honored list of celebrity franchisees thanks to a multi-pronged partnership with the one-and-only Popeyes.
Yo Broker, Sell My Franchise
Raintree Sales' Strong Relationships with Franchise Brokers Led Two to Sign Franchise Agreements with Client Footprints Floors
Franchise brokers sell all kinds of brands, but the strength of the Footprints Floors business model inspired Andy and Michelle Snyder and Don Brammeier to buy in themselves.
Franchise brokers know a good business model when they see one, but normally they pass those investment ideas along to clients. But in the case of Denver-based flooring franchiseFootprints Floors, the brand managed to sell to the salespeople themselves.
Footprints Floors outsources its franchise sales to Raintree Sales, an industry-leading franchise sales and marketing company that prides itself on its strong relationships with franchise brokers. Raintree so powerfully communicated the strength of Footprints Floors’ business model that longtime franchise brokers Andy and Michelle Snyder and Don Brammeier decided to buy in themselves.
While it’s absolutely rare to see franchise brokers commit so completely to a single brand when they represent so many, Raintree’s CEO says it’s a result of the quality brands they represent.
Fortunately or unfortunately, there are a lot of franchises out there. You could go on a stream of options, like like Benjamin Buford “Bubba” Blue could with shrimp.
Dog poop picking up franchises. Pet food franchises. Pet grooming franchises, that are brick & mortar. Mobile grooming franchises. Dog walking franchises. Dog hotel franchises. Cat hotel franchises. Dog training franchises.
Shall we continue?
So, oftentimes, a franchise isn’t created because it is a new idea (should we go down pizza and burgers?), rather, a start-up location has some early success (hint, most likely it is in the operations and branding) and decides they want to grow. But, they don’t want to grow by spending a ton of their own money, rather using others -- called franchisees.
At this point, what do they do? How much should they budget to become a franchise? Can they sell them without being an “official franchise”?
All key information needed to decide whether you want to be a franchise or not.
To grow as a franchise, make sure you have wins in:
Product Leadership Vision Investment Model Potential Profitability Support System for Validation Growth Plan
Building a business plan in each of these areas will help you better understand the viability of your franchise opportunity.
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Nick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.
