Q: What franchise should I choose?
A: First, check if you want to go into food or services. Then decide how much you are willing to invest and if you have sources of funds other than your money in the bank.
Ask yourself: Are you getting a franchise by yourself, or are you having friends or relatives as partners? If you share the franchise, it is best to have a written arrangement in which you agree on things, including your working capital and who will be the majority shareholder. Most franchisers prefer to deal only with one person – the majority shareholder who can decide quickly without having to convene the board.
Q: Should I hire agents? If I do, will it expand my franchise program faster?
A: The best way to sell your franchise is to get prospects to see how satisfied your franchisees are. These are your best salesmen. Be warned that many brokers are only interested in receiving a commission.
Q: I want a franchise but prefer not to look for the business site myself. Can a real estate broker do that for me?
A: If you are sure about getting a franchise, the franchiser will help you choose your site by giving you a good idea about where to look. It is also a good idea to visit the franchiser’s various branches to see how each measures up. Getting a real estate broker may help, but you have to get the feel of the location yourself because you will be the one putting up the branch.
Q: I am a new franchisee. When I opened, the franchiser sent his staff to help me for two weeks, but the head office ordered too much food for my store. What should I do?
A: Communicate with your franchiser and present your side. It is usual for a new store to monitor its stock regularly to establish how much it needs for its day-to-day operation. Your franchiser should have seen to that.
Q: I applied for a franchise, and the franchise officer set a meeting in which I presented the site I wanted. He then promised to call me – but did not. After a few weeks, I called him to inquire, and he said my site did not pass the company’s standards. That would have been all right – except when I passed by the same site after a week, I found that the company was putting up a branch in a location they supposedly didn’t like!
A: You have my sympathy. I urge you to contact the franchiser and tell your story. There may be things happening that the franchiser is not even aware of.
Q: I have been in business for six years. What amazes me is the non-stop queries from people who want to know if I am franchising the business. I’m not even sure how franchising works!
A: The reason for the inquiries is that people see your business as an excellent opportunity. You may want to consider franchising to expand it.
How does franchising work? First, the business must have a proven concept and go through the test of time. Second, find out if the concept can be replicated. Third, ask yourself if the business will equally be profitable for your potential franchisees. Fourth, document the procedures in operating your business. Fifth, find out what makes your business unique. Sixth, ask yourself if you will be comfortable allowing other people to establish a branch of your business. Seventh, establish support systems for your branches, including training, product research, and site qualification. Eight, get professional help.
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You may contact Armando “Butz” Bartolome for questions and more information.
By email: aob@gmb.ph
FB Page: Armando Bartolome
Linkedin: https://www.linkedin.com/in/franguru/
Website: https://www.gmb.ph
