Franchise Development Leaders: Gary Occhiogrosso of Franchise Growth Solutions

Founder and managing partner of Franchise Growth Solutions Gary Occhigrosso is no stranger to franchising. The former Dunkin’ franchisee and seasoned franchise consulting veteran has been working in the industry for 35 years. Today, Ochiogrosso not only runs his own consultancy, Franchise Growth Solutions, but also manages Franchise Moneymaker.com,  hosts a New York-based radio show and teaches franchising and entrepreneurship as an adjunct professor at NYU. He shared his insight on just what franchisors and franchise development professionals should keep in mind when it comes to keeping a franchise brand robust in 2019 and beyond.

1851: How did you first get into franchising? 

Occhiogrosso: I got out of the radio business in my early twenties. I grew up in a family of merchants—we had Italian pastry shops in New York. I liked the food business but I didn’t want to do what my family was doing at the time because they really didn’t have a business, they had a job. And with radio, I learned about marketing and creating systems you could duplicate. So I opted to go into the Dunkin’ business as a franchisee at age 24 in 1984.  I was on the franchise advisory council and the advertising committee and I stayed with the company as a franchisee until 1988. 

Next, I launched my first consulting practice in franchising and had a variety of clients including Blimpie. My real break as a consultant was with Ranch*1, a grilled chicken concept, on which I worked with the founders to launch franchise opportunities with the brand. I helped them develop to about 60 units. Eventually, I became the president of TRUFOODS, LLC, a multi-brand franchisor. We purchased heritage brands and would apply best practices in franchising to turn the brands around and refranchise them before launching Franchise Growth Solutions in 2016.

1851: What do you love about the industry?

Occhiogrosso: I’m a student of Micheal Gerber, who wrote a book called “The E Myth Revisited” that I think is a manual for people who want to be in business for themselves. I tie that into franchising because franchising is a system and in my opinion, the greatest business development tool ever invented because franchising gives individuals an opportunity to be in business for themselves. Even if they have limited experience, those working as franchisees can control their own destiny and create their own lifestyle. I don’t know of any other industry that affords ordinary people the opportunity to do extraordinary things, so that’s what I love about the franchising industry. 

1851: What do you wish that you could change about the industry?

Occhiogrosso: As a consultant and a coach to franchisors, I wish that I was able to change the approach that some consultants and franchise development professionals and firms use to attract entrepreneurs into the idea of becoming franchisors. Sometimes, the whole story isn’t told. So consultants, when they sit with a prospective new franchisor, should give them the true cost of launching a business, not just the little piece they’re involved with. 

I’d also like to see the myths changed, particularly the myth that if you buy a franchise you’ll automatically be successful, or that every franchisor is destined for greatness. I think that franchisors and the folks in the business of awarding franchises need to be more transparent with the good, the bad and the ugly so that the franchise prospect has a comfortable environment in which they can check out the opportunity. It’s so important for candidates to not only decide whether the opportunity is good—whether the company is successful—but also, whether or not it’s a good fit for them. I would like companies to spend less time selling and more time educating franchise candidates. 

1851: What is the biggest challenge franchisors are currently facing in franchise development and what are you doing to overcome it?

Occhiogrosso: In my opinion, very often, the biggest challenge franchisors face is themselves. 

When someone decides to open their business to franchising, in most cases, they’re really good at what they do, at their “widget,” and their vision. For example, the bagel shop guy really does make the best bagels around. But what they need to understand—and what I believe franchisors need to embrace and my biggest challenge is in terms of business education—is that, when someone goes into franchising their business, they’re actually in a different business than they were originally. Think restaurants: While a new franchisor is still in the restaurant business, they’re now also in the franchised restaurant business, and that’s very different.

The other challenge I believe all franchisors are faced with is finding qualified franchisees and generating leads to find those qualified franchisees—and then accepting the cost associated with that. I think that when we talk about cost per acquisition or lead generation, I very often have to tell emerging franchisors things that they don’t want to hear. My analogy to that is: We all believe we have the most beautiful baby, and that if we enter a picture of our baby in a “Who’s Cutest?” competition, we’re just sure our baby is going to win. But, there’s a lot of babies in that contest. You have to set yourself apart and create points of differentiation within your brand. 

1851: What do you think will be the biggest trend in franchise development will be in 2020?

Occhiogrosso: It really is all about finding the right franchisee and the right fit, and how that’s happening today in franchise development is different than it was 10 years ago. One of the biggest trends currently is that franchise buyers are far more educated by the time they actually contact franchisors. So, franchise development in 2020 will be about understanding and embracing the idea that, when a development professional gets that inquiry from the prospect, their role is to educate and onboard that prospect from the very beginning. They have to create value, communicate the company’s culture and look for synergy. They have to really impart the culture of the franchisor onto the prospect before they sign up, meaning the vetting process needs to become more granular. 

I also think today’s advertising channels are fragmented. Back in the day, franchises were sold through print advertisements; today, brands need to use their websites in a more productive manner. Yes, there’s print, there’s trade shows, there’s local outreach and more community-minded approaches to gathering new franchisees—but you need to really find people who are brand lovers, people who are not just investors and can simply write a check, but who also have a real passion for the brand. When you work with start-up and emerging brands like I do, the franchisees become as much a part of the development process as the franchise development people do at the company. 

What franchisors are focused on now in the vetting and selection process is finding a brand lover. How that’s done is through getting better at telling the brand story and really selling the benefits of becoming a franchisee as opposed to simply selling the features of the franchise. 

In terms of franchise development, understanding that potential franchisees come in more educated than ever before, and that they have more choice, is crucial. Creating opportunities where franchisees have more of a seat at the table is important. It’s about telling that story and making franchisees feel like they’re part of the system instead of just a worker or glorified manager. 

1851: What's the No. 1 thing that sells franchises?

Occhiogrosso: Genuine transparency for the franchise prospect and having profitable franchisees who can validate properly because again, people are learning about the brand online before they ever even contact the franchisor. Candidates learn all about the brand before they ever call the franchisor, so when they call, it’s basically to hear the culture of the company and to hear the story and to get validation from profitable franchisees. 

That’s what sells franchises—it’s not sheer growth for the sake of growth or fancy brochures, it’s profitable franchise operations with people that are passionate brand lovers and are engaged with the brand on every level. 

For me, companies that practice a thorough vetting practice; that nurture their qualified leads; that practice placing their assets behind the success of the franchisee—companies that are constantly innovating and growing their brand—are the ones that are the most successful.