Reprinted with permission from Successful Franchising
Magazine
TRUE CONFESSIONS OF A FRANCHISE SALES
EXECUTIVE You never know when you’re making a memory! By Jerry
Wilkerson
I was fortunate to sit in on the final meeting of a
recent franchise transaction. It was after the 10-day waiting period
during which a prospective franchisee can change his or her mind and withdraw
the offer to contract with simple notice. The franchisor is a client of
mine. The Senior Vice President, a friend of mine, had invited me to
participate as an “observer” at this meeting. It was a most enlightening
experience, and one I will not soon forget.
Tom, the soon-to-be franchisee, admitted an anxious, yet ardent
emotion coursing through him. He reached for the checkbook, stopped for a
moment, and spoke, “It’s not that I’m nervous about the money and
signing this check over,” he fretfully stated. “What’s bothering me is the
fact that I’m about to give up my job, my income, my families’ financial ability
to live on the chance that running this new franchised business, rather than my
existing store, will be better economically for us all.” A thin line of
perspiration beads blushed across his forehead. He loosened his tie and
opened the shirt collar. I poured a glass of water from a chrome pitcher
the franchisor had provided and handed it to the young man. He declined
the drink.
The VP leaned forward and rested
an arm on the solid rosewood table, focused his eyes on the fellow, and said,
“We appreciate your concern,” in an understanding, almost paternal, fashion,
“and realize this is a big step. You’re giving up the business you built
over the past eight years and moving into a revolutionary new store within the
same industry. It’s a leap of faith for anybody. I want you to know
that we’ll always be there with you form this day forward.”
The potential new franchisee was, in fact, an existing business
operator who was joining the franchise chain as a conversion unit owner.
During the ensuing conversation, he indicated his industry was changing so
rapidly that he needed to revise the entire business system and improve his
purchasing power to continue a thriving operation. “We’re going
to bring you up to date on technology,” the Senior VP affirmed. “You’re
never going to be behind the learning or market curve again. Our training
continues for the life of this partnership. If you have a problem, we have
a problem, and we’ll be there to help solve it.” His words seemed to
comfort the young fellow.
Having been in franchising for nearly two decades, my colleague
clearly understands the value of a franchise. He knows what he must do to
embrace the new franchisee while alleviating his or her apprehension. As a
skilled professional, he is also well aware that some people are so indecisive
that their favorite color is plaid.
The VP then summoned words of knowledge. “You know, Tom,
the easiest challenges are the ones you dream up for yourself, the mountains you
decide to climb. The tough ones, the lousy ones, are the ones you don’t
get to choose, the mountains that other people put in your way. Well, Tom,
we are going to help you remove those mountains so you can climb as high as you
wish in this industry.”
The two men talked back and forth about the business, the retail
environment, the technology changes in the industry, the manufacturing advances,
the constant bottom line enhancement the franchisor brings to the system, and
all of the continuous value enrichment a franchisor convey to the
relationship.
For an individual working by himself, it is difficult to
calculate with any resolve where business is going today. A sole
proprietor in our consumer driven business world cannot gather, promote, or
advance without steady and constant information, data, and marketing input form
within his or her industry. The environment of the day’s trade momentum
changes a fast as tides of an ocean.
I am aware that the main business of a franchisor is not to see
merely what lies ahead at a distance in commerce, but to do what lies ahead
clearly with conviction and industry trade confidence upon which the franchisees
can build their businesses. The franchisor must be familiar with the
marketplace inside out. The Senior Vice President then added
with zeal, “You know you’ll have other franchisees in your metro market to help
pool promotion dollars which will enable you to advertise on electronic media as
well as in print. Have your ever run a spot on TV Tom? As a single
storeowner, you probably couldn’t afford it before. Everything changes
today.”
His words were encouraging and heartening to the new franchisee,
who seemed more at ease with himself. Yet, the check still lay unsigned in
the book.
It was then that I remembered something this franchise
development professional had explained to me many years ago at an IFA
convention. I wondered aloud, “What about never closing the deal?
Remember, you have to get the check every month. The franchisor must
continue to earn that check through the life of the agreement.
The sales VP picked up on my observation. “That’s
right. With a franchise, you never really sell anything. You don’t
close the deal with this check,” he stated, pointing to the man’s bank
draft. “You simply start the relationship process with that check.
Every month we have to earn another check, give you a reason to send us your
royalty payment. It is our responsibility to keep you in business,
profitable, and persistently build your bottom line potential with new products
and services.” My friend was on a whirl. “This is what you’re buying
into, why you send us the monthly check, and what validates our franchise system
year after year!”
The young man turned to me and asked me what I would do.
“My best advice: fall in love with what you do for a living,” I told him.
“If you’ve already done that, get on with your business at a higher level of
awareness and added success potential through the franchisor’s system and new
training. But I’m not listed on the UFOC, so, don’t listen to
me.”
Then I recalled something very clever I once read that seemed to
fit the moment; “Life is like a moving vehicle with no brakes. If you
spend too much time looking in the rearview mirror, you’ll hit a tree out the
front window. That’s why your rearview mirror is smaller than your front
window.”
The new franchisee signed the check. Grand opening will be
this summer.
Jerry Wilkerson is
the former president and executive director of the International Franchise
Association in Washington, D.C., and founder of Franchise Recruiters Ltd. ®, an
international franchise management executive search corporation with offices in
Toronto and Chicago. He is about to enter his 30th year of franchising,
and is a strategic partner with the iFranchise Group.
