On the subject of deciding on a brand new model, multi-unit operators are in search of extra than simply the common unit quantity and an in depth Merchandise 19.
That was the message from a trio of multi-unit franchisees at a session throughout the Worldwide Franchise Affiliation’s 2023 conference Monday, February 27.
Greg Robins, a multi-unit franchisee of Supercuts and Superb Picture, stated digging deep into what’s included within the franchise settlement is important.
“Right this moment, I take a look at the hidden clauses which might be within the franchise agreements to ensure they’re not too onerous and never too broad so I can higher perceive the enterprise mannequin I’m moving into,” Robins stated. “I additionally take a look at the authorized settlement, as a result of there’s all the time a tone, and I’m studying into that.
“Some agreements are like ‘if you happen to inhale, we’ll cost you $50 and if you happen to exhale, we’re going to cost you $100,’” Robins stated. “A few of them can are usually very punitive in some methods. I examine for that to see if it’s truthful and properly balanced.”
In his feedback, Charles Keyser, a multi-unit franchisee of OxiFresh Carpet Cleansing, Sport Clips and Superb Picture, stated he appears on the management and the place the model stands in its class.
“I take a look at who’s in cost and what their imaginative and prescient is,” Keyser stated. “The second factor I actually take a look at is what the worth proposition is. Is it one thing that’s a market chief, or is it one thing that isn’t a market chief, however there’s a subset of that market that it could possibly be sufficiently big in a distinct segment? These are what I search for, in addition to the chance to develop. Sport Clips, for instance had quite a lot of territory that was open.”
Monday’s panel with multi-unit franchisees was moderated by Franchise Replace Media Government Vice President and Chief Content material Officer Diane Phibbs.
Greg Thomas, a franchisee of Nice Clips and Smoothie King, famous an necessary step for giant multi-unit operators is to talk on to the model’s high executives.
“It’s positive to speak to a salesman, and it’s positive to speak to individuals on the cubicles,” Thomas stated. “However when it will get all the way down to it, you’ve gotten to have the ability to speak to the principal of the corporate. At the very least have the principal of the corporate be prepared to get out and shake palms.”
Robins added that liquidated damages in paperwork is a deal-breaker when choosing an organization.
“I can let you know, submit COVID, when you’ve got liquidated damages within the franchise settlement, it’s a non-starter for many multi-unit franchisees,” Robins stated. “We gained’t signal it, ever. We’d like the power to shut poor or underperforming items with none penalty to us. I perceive what it means for the model, however after what we went by means of, it’s a non-starter.”
Connecting with franchisors
As for the way manufacturers ought to appeal to multi-unit operators, Thomas stated corporations ought to try to fulfill in particular person at main occasions, slightly than depend on letters and cellphone calls.
“One of the simplest ways to study your model, whether or not it’s the IFA or Multi-Unit Franchising Convention, is assembly face-to-face,” Thomas stated. “I’m in search of a professional-looking sales space with professional-looking individuals who know their stuff. It’s good to see some individuals from the corporate who actually perceive issues, extra so than simply some eye sweet they could have up entrance. Somebody who is aware of what they’re doing, whether or not it’s advertising or operations. I feel that’s most intriguing.”
“The final two manufacturers that we’ve been concerned with got here from commerce reveals,” Keyser stated. “It’s a chance to speak to the franchisor proper there. We are able to cross the pace relationship actually fast once we’re face-to-face, and get proper to the issues which might be going to matter. I feel that’s the factor with the multi-unit operators, too, attending to what issues. At a commerce present, you get to what issues fast.”
As soon as they do choose a model to companion with, panelists stated coaching and technological testing are the perfect methods a franchisor can help their franchisees with a number of areas.
“Coaching, particularly management coaching, I see that as extremely beneficial,” Robins stated. “Within the salon enterprise, the management has an outsized influence on the influence on the success or failure. I’m in search of the model that provides that management or administration coaching.”
On know-how, Keyser stated franchisors ought to have their new software program rollouts examined and vetted earlier than they’re put out to franchisees.
“No matter business you’re in, when you’ve got individuals on the entrance line who’re making an attempt to offer that prime high quality service to a buyer, they usually’re confused concerning the know-how rollout that’s change into a difficulty, it hurts,” Keyser stated. “It’s very true for giant, multi-unit franchisees. For one location, that particular person franchisee, it hurts the identical, however when you’ve got 20 or 30 items and the software program improve doesn’t go properly on a Friday night time throughout a dinner rush, it’s a significant drawback.”
