Are You a Franchisor with a Number of Franchisees?

by Robin Elliott on November 7, 2011

295815_2525979551393_1826087276_nIn my experience working with a number of franchisors  and those who sell distributorships or dealerships, I have found that most of them experience the following:

1. Most of the people buying franchises are employees, not entrepreneurs.

2. As a result, their understanding of the real world of business and is far from accurate and so their expectations are usually idealistic and unrealistic.

3. Based on their expectations, these franchisees spend most, if not all, of their money on the franchise and leasing expensive cars. They want to run before they walk. After all, they are now wealthy business owners!

4. So they start off with a bit of a cash flow problem, and they generally proceed to be persuaded to part with the rest of their money by slick advertising salespeople.

5. When they don’t get the results they were expecting from the advertising they bought, cash flow is getting tight, and things are taking longer than they expected, franchisees first feel embarrassed, and then they start to panic.

6. Panic leads to fear, which produces one of both of the normal reactions: Fight and/or Flight.

7. FIGHT: They blame YOU, the Franchisor, for “misleading” them, and they start to gang up on you. They want their money back. They tell everyone it’s your fault they’re not making money. FLIGHT: They hide. Instead of making calls, beating the bushes, and prospecting, they hide in admin, paperwork, movie theatres, networking meetings, seminars, and drugs and alcohol. They don’t return your calls.

8. Both of these reactions simply add to their problems, and so it’s a downward spiral. And of course these negative franchisees talk to other franchisees and affect their attitudes and expectations as well. This is not a problem you, as a Franchisor, want, because sooner or later, you start hating your franchisees.

What is the solution?

1. Third Party Intervention. The Franchisees don’t have a problem with a “Rescuer” once they have accepted the role of “Victim”. They have to pay for this solution, or they won’t listen.

2. The Rescuer has to come with a REAL, proven solution – one that can be applied with no cost, risk, or selling. They’re not in a mental state to sell anything.  And the solution has to work as fast as possible.

That is my role. I teach the Franchisees (and the Franchisor) how to increase sales and profits with proven systems that cost nothing or next to nothing to implement, carry no risk, and can work fast.

These solutions are unconventional. We use Joint Ventures to differentiate the business from the competition, piggyback of existing resources, and leverage resources that are usually overlooked. I have 24 years of experience and a glittering track record. Plus, your name / the name of the franchise is kept confidential, so you (the Franchisor) always look like the hero. You move from the role of Persecutor to Rescuer because you introduced me.

Here’s the best part: You can get the franchisees to pay for my service if you like, so it doesn’t have to cost you a cent!

For more information, contact me

Robin Elliott   LeverageAdvantage.com

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