If there’s one thing that’s fascinated and frustrated me in over a decade as a franchise consultant, it’s the fact that from time to time I’ll see two candidates invest in the same business and end up with completely different outcomes. In some cases, this is the difference between one person growing a multi-million dollar business and the other just not growing. These unmatched pairs have become a bit of a study project for me, because great franchise systems are designed, by definition, to be replicable. Territories and unit locations are meticulously vetted. Candidates are carefully considered until the franchisor is confident they can be successful. Most of them are. But what about those outliers—the ones who take a great concept and run it into the ground? Over the years I’ve made a lot of notes about what divides these two groups so I can better prepare candidates for success. 

Among the questions I get most often as a franchise consultant are “What should I expect during the first year?” and “How tough it is to get the business started?” and “How long before owning this business becomes less work and more reward?” 

Thirteen years ago, I made a total career change, stepping away from a highly-compensated executive role at a worldwide corporation to buy a master franchise in a new-to-me industry. It’s fair to say I didn’t put my toe into the world of franchising to check the temperature. Nope. I hurled myself off the high dive. After that, it was sink or swim, with nothing less than the financial health of my family and the future shape of my career at stake. 

I’m a glass half full guy, but last week I spent half an hour on the phone with a franchisee candidate who was certain the sky is falling. He talked about how terrible the world is right now, how dark the economic forecast, and how much of an uphill climb the near future will be for anyone thinking of investing in a business. His worries and fears—like monsters in the dark—seemed to grow and get more intimidating by the minute. 

In 2020, countless industries and business models went into slowdown or lockdown mode, trying to find a new normal in a world that was, well, not normal. Like everyone else, franchisors, franchisees, and their employees strove to find their way through a tough time. So it was a bit of a surprise, even for those of us with experience and deep knowledge in this space, when 2021 brought what the International Franchise Association’s annual economic outlook called an “exceptional year” of rapid recovery. Faster than anyone could have predicted, franchising was back in business! 

We’re in an era when a slew of workers have had all they can take of the hardships of traditional jobs. They’re dissatisfied with their pay, with their benefits, with the way they’re treated at the office, and with not having the flexibility to create some semblance of work/life balance. 

Do you want to know one of the statements I hear most often as a franchise consultant? 

Pete sits down with Eric Schechterman, the Chief Development Officer at Benetrends Financial to talk about how his company helps franchisees fund their locations.

By Pete Gilfillan, best-selling author of HIRE YOURSELF: Control Your Own Destiny through Franchise Ownership.

Putting together a solid business plan before you file any applications or sit down with a finance company, a loan officer—even with a family member—will help you make a clear, compelling case for funding. It is also the first step to successful franchise management. You've gone through your options and now a plan is the best way to have a clear path and direction when owning a franchise.

Your business plan should include each of these basic components if you want to make sure your franchise management is solid.

Plans and Goals are important, listen to pete and nat's ideas on how you can master goal setting