Now then, having founded a franchising company, I’d say that it’s perhaps one of the toughest types of businesses to operate. It’s hard to keep everyone happy; the franchisees, the end users, the potential buyers, shareholders, and the government regulators, and suffice it to say someone is always getting their feathers ruffled along the way. You see, franchising companies are growth engines, their job is to expand, conquer and dominate the market share. I suppose you can tell just by my choice of words that I am “ALL IN” when it comes to this business model.
Okay so, recently someone asked me what the best way to set up a major national franchise sales campaign. Specifically, I’d like to talk to you about the “divide and conquer” approach or setting up master franchises or area developers. Setting up a major sales program nationwide to find area developers, master franchises, or first in anchor franchisees in major DMAs is a different challenge than having a franchise sales depart simply target and area and start selling franchises.
Now obviously, master franchising is different than one parent company selling each unit individually throughout the country and world, that’s a lot to keep track of and it makes for a huge organization, one spread out and hard to control, sure you can do it, but think of the breadth of the project. Master franchising is therefore a better option, as instead you are looking for partners that can become their own Franchisor licensing your brand and business methods.
So, you are looking for heavy hitters with experience, so in many regards you are looking for successful entrepreneurs, or downsized golden parachute corporate types, who have contacts, access to capital, and the talent to run things, as they make killer master franchises. For them you will need to explain your marketing battle plan, show them a map of another area you’ve done as you set up franchises and filled out an area.
Once you secure the deal with your master franchise or area developer you need to give them the tools to do that themselves, with your best advice, that’s how serious franchisors ought to approach this challenge. Without a solid marketing plan and strategy, you have no business being in the franchising business. You must run this like a military operation, be dedicated to the cause, and once you start you can’t stop, you have to go all the way, and at that point you will be “all in” and now you know how it feels to strap yourself onto a rocket in the franchising sector. Please consider all this and think on it.