Five Life Changing Decisions Every Successful Franchisee Makes

What risks are necessary in order to grow to your full potential?

SPONSOREDUpdated 9:09AM • 03/24/16

Taking the leap into new franchise ownership is the beginning of a long road of risks a person pursues as a business owner. Juggling financial compensation with trial and error situations can cause anyone stress, but this is a daily decision franchisees have to make. It’s about figuring out the right balance as a new business owner, and one of the many upsides of franchising is that you’re given the support system of numerous franchisees and a knowledgeable corporate team to answer questions and provide guidance. However, it’s the independent questions franchise owners need to answer that are the real challenge.

We connected with Fishers, Indiana Smoothie King franchisee Chris Sgroi and Wichita, Kansas Christian Brothers Automotive franchisee Jesse Schemm to find out how they landed the franchise of their dreams and what five questions they had to ask in order for them to be successful within their first year of ownership.

Is the risk worth it?

Many franchisees start with a dream of becoming their own business owner, but the question of which route to take in order to ensure success remains. Franchising gives the perception of less risk versus independent ownership but there are still huge financial obligations tied to ownership. It’s about understanding the process

“I hadn’t been exposed to franchising until an ownership opportunity I was pursuing ended up falling through,” said Schemm. “I was aware of the high stakes but the additional support structure offered by the corporate team took away any doubt I had about joining the industry.”

How do you choose the right franchise?

Restaurant? Retail? Service? The options are endless when it comes to franchises but pursuing an opportunity that draws interest and utilizes prior career experience can be made easier with the right guidance. Franchise consulting companies like FranNet are literally created to match individuals with franchise ownership opportunities that fit their career goals and unique personalities. Once the choice is made, it’s up to the individual to find out whether passions and company ideals match.

“With my background in automotive and my strong faith it seemed to match up right,” said Schemm. “My two passions in life are people and cars and it seemed to be a natural fit.”

“You really have to believe in the products that you’re selling,” said Sgroi. “It’s hard to dedicate your life to something you don’t consume yourself. You should be your own best customer.”

Where do you build your first location?

While franchising is certainly scalable across the country, it’s more common for franchisees to open in their first location in their hometown. They recognize a niche and fill the void because no one knows a community better than its residents. Look at successful and unsuccessful business ventures in the area. Get out there and talk to people.

“The geographic placement for us was an easy choice,” said Schemm. “We live in the right neighborhood for a company with values like Christian Brothers. The name resonates here and has given us a quality customer base.”

“When I was considering franchising opportunities, I recognized that juice bars and smoothie chains were basically nonexistent in Fishers,” said Sgroi. “In conversations with friends in the area, the brand name that kept getting brought up was Smoothie King. It’s a healthy choice for the quick-service industry so the idea made sense.”

What’s the best way to get return customers?

So now you have a business. The high of the grand opening has worn off and customers aren’t coming in as consistently as they were within the first few weeks. It’s now about taking care of the regular customers and getting new customers through the door. Easy, right? In a society where Yelp reviews determine the place we’re going to book our next reservation, taking care of customer reviews is vital to the success of a business. Each and every customer should be treated like they are coming back in the door tomorrow.

“Get out in the area and meet your neighbors. Local businesses will use you for referrals so make sure they are aware of who you are,” said Schemm. “Also, make sure you handle every customer complaint with due diligence. Problems are bound to happen on your watch but taking that extra time gives you an opportunity to change that customers rating to a 10 out of 10.”

When do you know to expand?

It’s common now for franchises to require multi-unit deals when signing on for a franchise agreement. A three-store contract could mean three openings in three years, or three openings in five years. Recognizing the time to expand is a personal choice based on the ability to properly staff, demand for the business or service and of course, success of the first location. However for many, expansion within the first year is an obvious choice during the honeymoon period.

“With the success we’ve seen so far, it wouldn’t make since not to expand,” said Sgroi. “We’re already thinking about opening our second location in Carmel about 4-5 miles west and we would like to grow beyond that in the next few years.”

Five Life Changing Decisions Every Successful Franchisee Makes

MORE STORIES LIKE THIS