Franchisors disclose secrets of success
A “culture of communication” is crucial to a successful franchise deal, three franchisors told a Wichita State University forum Thursday.
Dave Goebel, chief executive of Applebee’s International, Bud Gates, chief executive of Gates Enterprises, and Pat Neville, president and chief executive of Beauty First, were the guest speakers at the fourth franchising forum at WSU’s Center for Entrepreneurship.
All three said success between a franchisor and franchisee is a people issue, a personal relationship.
That relationship begins internally with the people helping run the franchise, and it must be as strong with the corporate office for a franchise to succeed.
“You’re betting on people,” said Gates, who runs B.G. Bolton’s restaurant and is a former Pizza Hut and Rent-A-Center executive. “You have to ask yourself, ‘Is this management trying to get me to the promised land in 10 years?’ ”
That promised land won’t come without good people “at your left hand, your right hand and looking at you across the table,” said Goebel, a former Boston Market franchisee.
“You’ve got to wake up in the morning confident that you’ve surrounded yourself with great people.”
The three successful elements of the franchise system are cash flow, idea flow and preemption, Gates said.
“Cash flow because you’ve got the whole world you want to expand to and you’ve got X amount of capital resources,” Gates said. “It’s a great way for a franchisor to fuel growth on the franchising side.
“Fifty percent of the great ideas in the franchising system come from the franchisor rather than the franchisee.
“And preemption… getting to marketplace with your idea quickly is better. The person who gets there first, if they execute the concept well, has the advantage.”
Goebel emphasized due diligence — potential franchisees need to know their franchise agreement front and back.
Plus, there must be a bond with the franchisor.
“You have to look for a personality match,” Goebel said. “You have to have a feeling that you’ll enjoy working with these people and that all of your personalities match.
Related posts:
- Franchisees Select Favorite Franchisors Chain Leader: If it’s true that the recession’s depth...
- Making A Match With Franchisees And Franchisors Salt Lake Tribune: Jodi Rowell, a Syracuse-based consultant for...
- Franchisors Embrace FAST(TM) Scholarship Program Incenting Prospective Franchisees With Accelerated Success Program PR Newswire: Designed to help new franchisees get a...
Related posts brought to you by Yet Another Related Posts Plugin.
