Fran X | What Causes Franchisees to Fail?

The Next McDonald's (Big Idea)

Should You Apologize to Your Franchise Development Team?

No matter the franchise sales budget, positive PR, broker conferences and marketing initiatives, strong KPI’s, Item 19’s and validation sells franchises…

You knew this. We all do, and we all need reminders...

Your 2022 and 2023 franchise development opportunities and challenges are being seeded right now with the wins, losses, resets, and frustrations that your franchisees are currently experiencing.

At the leadership level, how are you influencing all of this? Are franchisees struggling with sales? Are franchisees struggling with marketing initiatives? If you surged resources and franchisee support today to help lift their sales 5%, 7%, or 10% in 2022, what would the ROI on that investment look like? How would that positively impact your royalties? How would that impact your Item 19? How would that impact your future franchise sales?

Now is the time to align with your franchise development team. If not, you may owe them an apology.

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Killer Brands

Snapology - In the childrens’ enrichment and education space, Snapology continues to lead with innovation and an ever-growing curriculum platform and experience that covers everything from LEGO® play to robotics and coding. Snapology franchisees have options when developing and building a Snapology business and can choose between an ultra low start-up cost mobile business or a fully branded retail discovery center. Now, a part of the Unleashed Brands family, the depth of the Snapology leadership team continues to grow.

Franchisees Kicking Ass: The Franchisee Is King

The Great Franchisee: Tony Peterson, Footprints Floors*, Portland

The construction industry veteran is opening his first business with the fast-growing flooring franchise.

Last year, after more than 30 years in the construction industry as a development and project manager, Tony Peterson decided it was time for a change. Peterson, whose job required frequent travel, wanted to spend more time with his family, and he decided to finally pursue a lifelong interest in business ownership.

So, how did Peterson leverage his impressive construction resume into a new career as a business owner? By becoming a franchisee with Footprints Floors*, the 50-plus-unit residential and commercial flooring and tile installation franchise.

Peterson says Footprints Floors offered the perfect opportunity for him to continue working in an industry he knows and loves while taking back control of his time and lifestyle. We talked to Peterson to learn more about his journey to franchise ownership.

READ MORE

Yo Broker, Sell My Franchise

Lessons From Franchise Execs: Catherine Monson, President & CEO of FASTSIGNS International; Chair of the International Franchise Association

This franchising powerhouse shares the four best practices every franchisor should follow, along with other wisdom from her 41-year career.

Catherine Monson is a franchise fan of the first order, which probably doesn’t come as much of a surprise. She’s a powerhouse within the industry. Currently, the Chair of the International Franchising Association, she’s been recognized repeatedly for her contributions to the industry throughout her career. She knows what it takes to win at the franchise game.

Wry and witty, Monson started in the industry back in 1980, or as she likes to modestly phrase it, “more than 20 years ago.” After becoming CEO of FASTSIGNS International in 2009, she has seen the brand expand to a 762-unit printing giant with a presence in eight countries.

Additionally, FASTSIGNS is part of the Propelled Brands portfolio, with Monson overseeing My Salon Suite and NerdsToGo.

To hear about how Monson advises franchisees looking for the right brand, as well as some of the challenges she’s overcome during her career, watch the video above, or click here to watch it on YouTube.

Read the rest here.

The Bottom Thoughts

What causes a franchisee to fail? Unfortunately, it isn’t just one thing -- but back casting all the way back to the first time you said “hello” is a good starting point for gaining insights into how to avoid a failed franchisee later.

For franchisees, trust us, the zor doesn’t want you to fail -- even though it may feel like that sometimes. You closing your location hurts their FDD, hurts their growth, hurts their image. They would much rather have you succeed and win.

Back in the old days -- you know, back when the zor was courting the zee -- something was a miss:

1. Did the zor say yes even though they knew it was a risk?
2. Did the zor say yes because of pressures to sell franchises?
3. Did the zor not set your expectations?
4. Did you not set the zor’s expectations?
5. Did you convince the zor to say yes?
6. Did you know your heart wasn’t in it, but moved ahead anyway?

Back casting helps the zor. Back casting also helps the zee figure out what to do the next time around. Back cast to:

1. Qualification Stage
2. Discovery Day
3. Capital on Hand
4. Time to Open
5. Sales at Open
6. Sales Dip Point
7. What Happened When the Sky Started to Fall

Failures happen, but the more you learn, the better chance you have at preventing the next one.