That modified line from William Shakespeare's Hamlet (written about 1600), sort of makes sense today if you have ever walked down the path of franchising. I have seen it be very difficult, though with the potential for great rewards.
The real question is, should you utilize franchising as a means of distribution of your product or service? Does it necessarily mean that you should franchise your business concept just because your business model is duplicable? I think that the answer to that question is a resounding NO! Not everybody has what it takes to develop and successfully manage a franchise system. A quick read of Michael Gerber’s book, E-Myth, will tell you all you need to know about that.
Think about it like a big box with a kitten in it. Everybody loves kittens, and if I asked you to be in charge of keeping a kitten in the box, you would have no problems doing that. What would happen if I threw in another 10 kittens for you to manage? Could you do that too? Some could and some couldn’t. Regardless of your kitten management skills, eventually, some of the kittens would start climbing out. Eventually, you would have kittens all over the place. Herding kittens is no easy job.
Here is a short list of some of the activities (kittens) that you will have to learn to do (to herd) simultaneously.
- Manage one or all of your existing locations
- Locate a qualified franchise attorney that you enjoy working with
- Find a company to help you develop an operating manual of your procedures
- Develop your system standards
- Grow your existing business
- Complete the FDD questionnaire for the franchise attorney
- Get your logo registered with the trademark office
- Endure a financial audit for the FDD
- Purchase every domain name that closely resembles your company’s
- Review rough drafts of your new FDD and Franchise Operations Manual
- Manage one or all of your existing locations
- Develop a franchisee training program
- Determine how you will market your concept to desirable candidates. (It doesn’t matter how many people have told you to franchise, as soon as you are ready to offer the opportunity to prospective franchisees, everybody disappears.)
- Put your marketing efforts into action
- Screen the prospects
Interview the prospects - Manage one or all of your existing locations
- Grant the franchise, sign the contract and collect the money
This is when it really starts to get time consuming
- Help your new franchisee locate a suitable site
- Work with the franchisee on the build out of the site
- Manage one or all of your existing locations
- Conduct a franchisee training session
- Attend the grand opening
- Screen, interview and close additional prospective franchisees
I am sure that the list above is not comprehensive, but it gives you an idea. It looks really difficult, and it is. Not everybody is cut out of the same mold, so not everybody is up to the task. That degree of multitasking talent is rare and requires a great deal of energy.
Many business owners are very creative and can generate great ideas for products and businesses. They may even be able to open a small business and provide their product or service to their community. However, when it comes to the multitude of activities that must be completed simultaneously in order for a business to develop, market, grant and manage franchises, the list of truly qualified business managers becomes very short. That is to say, you may not want to franchise your business concept just because your business model is duplicable.
Here is the good news. If you are reading this, then you probably already have a business of your own, which means that you are an entrepreneur. That means that you are one of a unique breed of people whose natural born personality traits include the ability to multitask at high levels, as well as an abundance of energy. If you are this person, then you have a much higher probability of success and you are more likely to reap the benefits, both financial and emotional, of operating a franchise system.
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