Apples-to-Apples and Hitting It Off
How do you go about finding the franchisees who are the “apples-to-apples” with whom you need to speak.
As you progress through the formal investigation process with a franchise company, after you’ve read the Franchise Disclosure Document, listened to your representative discuss the “nuts and bolts” of running the franchise and how the franchise company will train and support you … it’s time for you to start talking to existing franchise owners.
Talking to existing owners is called the “validation” phase of the investigation process and it’s perhaps the most important phase of the investigation.
Most franchise companies will provide you with a list of franchisees whom they feel you would most benefit from calling. No surprise, that list will be a list of their most successful franchisees. If you were in the franchisor’s shoes, you’d give prospective franchisees the same kind of list, right?
There is absolutely nothing wrong with calling the list of “top performing” franchisees … in fact, you should call them. You should call all of them!
But … you shouldn’t call any franchisee before you realize you are searching for the apples-to-apples comparison you need to be able to determine if the franchise is, indeed, right for who you are, your skills, your market and your resources.
Makes sense, right?
So, how do you go about finding the franchisees who are the “apples-to-apples” with whom you need to speak?
Start with the list your franchise rep gives you, if, indeed, your rep gives you a list.
Then, look at the list of franchisees in your Franchise Disclosure Document and focus on the franchisees who are operating in markets with demographics similar to yours.
Why is that important? Simple.
It’s great to speak with a franchisee operating successfully in Los Angeles … if you are going to operate in the same market or in NYC, Boston, Philly, Dallas, Houston, etc.
But, if you are going to operate in a smaller market, let’s say Waco, Texas, you really should talk to franchisees who are operating in markets of similar size.
OK, so it clearly makes sense to talk to franchisees operating in the same type of market as in which you’ll be operating … but, there’s more you need to do.
You need to constantly ask yourself as you talk to franchisees:
“Am I more like this person or less like this person?”
When you talk to the top performing franchisees (regardless of what market they are operating in) … ask yourself, “Am I more like this very successful franchisee … or, am I less like this successful franchisee?”.
Likewise, when you talk to a franchisee who is disgruntled, unhappy, not achieving what he or she hoped to achieve, is blaming the franchise company for their displeasure and lack of success, you really, really need to be asking yourself, “Am I more like this whiner or less like this whiner?”.
Another factor that is vitally important in the validation process is what I call “hitting it off.”
Its human nature … people like other people who are more like themselves than less like themselves. Birds of a feather flock together, as the saying goes.
Discover various concepts at our expos and see if you can hit it off with them in person.
