FranX | Case Closed: How to Solve a Franchise Murder Mystery

The Next McDonald's (Big Idea)

It seems like validation is always a suspect when it comes to franchise brand murders and, many times, it’s a silent killer!

Worse than the franchisees that complain are those that say nothing and are indifferent. Indifference equates to lost opportunity, and every franchise brand needs to look out for and hear the quiet franchisees.

They may have a lot to say, and they represent your greatest opportunity to build a base of raving - super-validating - fans.

Don’t miss out on the opportunity!

News You Can (Actually) Use

• Big Money is Going Vegan
• Hotels Can’t Staff Up

Killer Brands

Everyone loves their home and what could be better or more important than a garage that you love!

Sure, there are garage flooring brands out there but Lifetime Green Coatings is one of the best emerging franchise opportunities. The Lifetime Green Coatings team controls exclusive manufacturing sources of green eco-friendly industrial-strength coating products and deliver a business model that fits perfectly with new construction and new home construction add-ons that builders love.

Plus their FDD includes a detailed Item 19 with data and numbers that include gross profit and adjusted profit numbers.

Franchisees Kicking Ass: The Franchisee Is King

The Great Franchisee: Alok Rai, Lightbridge Academy*, Brooklyn, NY

Alok Rai worked in finance technology for over fifteen years with brands like Morgan Stanley and Bank of America, but when he and his wife decided it was time to own a business for themselves, Rai looked to his parents’ success as owners of a private school in India. Now Rai and his wife are two of the newest franchisees with Lightbridge Academy*, the early education and child care franchise with more than 100 centers open or in development across the U.S.

Read his story here.

Yo Broker, Sell My Franchise

Should Your Business Have Multiple Units Before Franchising?

Having multiple units before franchising will increase your credibility, improve your cash flow and fine-tune the proven business model you’re trying to sell.

Don’t tell that to Glen Bell, though. In 1962, Bell opened the first Taco Bell restaurant in Domney, California. Two years later, he decided to franchise, and retired Los Angeles policeman Kermit Becky became his first franchisee, opening a Taco Bell restaurant in Torrance, California. In 1970, Bell took the franchise public — and the rest is franchise history. Today, the quick food restaurant serves over two billion customers each year at 7,072 restaurants, with more than 93% owned and operated by independent franchisees and licensees.

Massage Envy is yet another example of a successful brand that took the franchise dive right out of the gate. After opening a single Massage Envy location in Scottsdale, Arizona in 2002, founders Leonesio and Shawn Haycock immediately started franchising. Today, the membership-based massage franchise brand has more than 1,000 locations across the country.

“I think it just depends on the franchisor and the business they’re selling,” said Corey Elias, director of franchise development at Franchise Captain. “If it’s a truly unique model with no competition, it might make sense to franchise immediately, so nobody has time to compete,” he said. “There’s a company called Smash My Trash that’s probably the fastest-growing brand I’ve ever seen. They go to dumpsters with this machine that they use to smash down the trash, which provides a big cost savings to companies’ trash hauling fees. In a year, they’ve sold 350 franchises.”

The Bottom Thoughts

"Would you buy this franchise again?" Sir Prospect asks. "Um, maybe," Madam Franchisee says.

And just like that, the murder of Bob's Bagels -- once noted as the fastest growing franchise east of the Mississippi -- has begun.

Now, for the most part, Bob's Bagels was not a bad franchise. Point of differentiation -- bagels that didn't have the hole in it. Unit Level Economics -- category leader. Cost to get in – reasonable. But when Madam Franchisee was not happy with the support she got when Cathy's Coffee (that also sold bagels) opened down the block, Madam was willing to tell others.

So, what do you do when validation starts heading south? You hire Detective Franchise.

1. At your next meeting, talk about how negative and positive validation can help/hurt the bottom lines of all franchisees.
2. Do surveys to ensure you have a pulse on your brand’s mood.
3. Build great stories/content/video around those who scream from the rooftops.
4. Listen, listen, listen. Understand what is at the root of the problems that are creating noise.
5. Try to solve those problems.
6. Celebrate your achievements with awesome PR.

Validation can be a brand killer (or murderer). You are in control of what happens next.