FranDev Players: Kay Ainsley, Managing Director MSA Worldwide

Kay Ainsley is a seasoned industry professional who knows what it takes to develop a successful franchise brand.

After starting her career in franchising as the director of international development for Domino’s Pizza, Ainsley found herself in the same role for Ziebart International, where she created development programs and sized up new international market opportunities. Today, she’s the managing director of MSA Worldwide, an industry leader in the domestic and international franchise advisory space servicing big-name clients like McDonald’s, Edible Arrangements and Firehouse Subs.

1851 Franchise caught up with Ainsley to discuss how MSA Worldwide has become a key player in consulting emerging brands.

1851 Franchise: How did you get into franchising?

Kay Ainsley: A long time ago I worked for the ad agency that was in charge of Domino’s Pizza International expansion, and I created the program that propelled their international development. I was at an IFA event when I met [MSA managing director] Michael Seid, he was looking for someone to partner with and we talked about franchising and everything kind of fell into place. It’s been 23 years and we’re still partners.

1851: Are there any keys to consistent franchise growth?

Ainsley: You need a process and you need to put all candidates through that process. From there you eliminate the people who don’t meet your criteria and focus on those who are able to close. As a franchisor, you should constantly be reevaluating who you want in your system, and who that person is varies from brand to brand. 

So, having a profile is key. Are you looking for the single unit owner to operate or a group to do area development? Who are you looking for and what are you selling? Today we see more and more people looking to do area development with a commitment to multiple units, but that doesn’t necessarily work for every franchisor. 

For new franchisors, staying close to home is important. In the early days you don’t know what operating as a franchisor looks and feels like and you want to make sure your first franchisees have the tools they need to be successful. If you’re only 100 miles away, you are able to support them that same day if they need you. But, if you have to hop on a plane, that’s a little bit harder and a little more costly.

In the early days their royalties are smaller, and they need more help. But that won’t always be the case as you grow.

1851: What are the biggest hurdles to successful franchise growth right now?

Ainsley: One of the biggest hurdles to franchise growth during COVID is the fact that you can’t actually meet people to consult with them, and it takes longer to get someone open and operating. Franchisors are looking for new ways to provide support to existing franchisees and looking for ways to recruit prospective franchisees.

One way that franchisors have been making that connection is with virtual Discovery Days. The only hurdle with that is that you need to make sure it's structured in a way that you get the same results that you would have gotten during an in-person meeting. 

1851: How did the COVID crisis affect franchise growth opportunities?

Ainsley: On a more positive note, COVID has made a lot of people sit back and think, “I don't know what the future of my company looks like, and I might be better off to start my own company.” And with franchising, even if they don’t have the experience of owning their own business, they have the support of the franchisor behind them.

1851: Are there any common mistakes you see franchisors making when trying to grow?

Ainsley: Franchisors sometimes get hung up on approving somebody just because they need the fee because they’re undercapitalized. If you need to sell three franchises to keep the lights on and you’re changing criteria to take on people who might not meet your standards just to meet those needs, you might run into trouble. Relationships could suffer because expectations are different than reality, or it could be that the franchisor doesn’t have the ability to provide adequate support and their internal staff is stretched thin. You’re kind of building a house of cards at that point.

Another big one is going too far from home. You should be open to turning someone down because they’re far away. The other thing is, franchise sales are consultative sales. Franchisors lead prospects through the process — you learn about them, they learn about you and you want to be willing to say no to people who don’t fit properly. To build that rapport and make that decision, you need to only have one person assigned to one candidate. You don’t want that candidate passed from person to person to person as they’re doing their due diligence because that creates a disconnect in the candidate’s mind. 

I tell companies who are evaluating franchising their brands that before becoming a franchisor, they need to budget enough money to do adequate lead generation. If they don’t have the ability to do that, they sometimes falter. Without the money to do PR and lead generation, they never get that good stiff wind at their back to take off. We get them to the starting gate, but if they can’t hire anyone to get leads out for them they’ll limp along and five years later they’ll still be limping. 

1851: What are your biggest goals/plans for 2021?

Ainsley: We’re planning to keep doing what we’re doing. We’re fortunate in that there is still an interest in franchising. We work with people and companies who are evaluating candidates and see the value of franchising as a method of expansion. I’m looking forward to working with new companies and creating franchise opportunities for others.