Need Help! Millions available....really!

**Future1** · 03-18-2010 08:22 PM

I have a Canadian business that is just about to explode into a multi million dollar business. I have franchisee folks banging at my door. I can't fill their orders. I need help!

Please do not reply to this if you have not started or ran a franchise system.

I own a fresh new concept Hair Salon (I have two locations), so fresh and creative, CNN and Fox Business News, are wanting to shoot a TV show for best new franchise in America. We can't, we need support and help. We are not ready.

What we need is a SERIOUS PARTNER. If you know anybody, I am confident we will be a $20 million company in 5 short years, and in 15 years an $80 million company.

**paul2145r** · 03-24-2010 08:35 AM

I have done some franchise prep work. The main thing you need to do, to start, is to get EVERYTHING down on paper. From start to finish, walk through every aspect of your business. How to register it in the states that you will be offering it, who to contact regarding any problems that can arise, advertising, promotions, etc.

The best franchise models are the ones that someone with absolutely no business experience can start and run. I'm not saying that is the type of individual that you'll be looking for as a client, though. From the start, I would recommend screening prospects to make sure that they have the capital and business background necessary to keep their branch running for at least 2 years. A high failure rate is a great way to cause stagnation (and the eventual collapse) of a franchise. Success stories mean referrals, new franchisees, and good press. In today's economy, we need all the help we can get to keep the doors open!

Another important issue is branding. How strict are you going to be with salon layout, design schemes, and employee uniforms? There have been various approaches to this, but the majority of the more successful franchises usually have well researched (and fairly strict) standards of uniformity. If you are wanting to go as big as you are planning, then I would do the same. Provide a color palette that franchisees can choose from, but limit the options to two or three different colors/shades. If you have a uniform in mind, find a uniform supplier that can cover all (or most) of your targeted territories. Having one primary supplier will allow you to keep the costs low (repeat business, etc) and will prevent color/logo differences that may arise. I would also recommend finding one or two additional backup solutions, in case issues arise with your primary vendor.

A big benefit of franchising is the ability to buy supplies and services at a discount. Talk to your current suppliers, and make sure that they are able to handle your expansion plans. Check on wholesale/bulk pricing options, and don't be afraid to price check with other large suppliers to make sure that your franchisees are getting the best deal possible.

Up until now, you are used to dealing with customers that walk in the door. You know what they want, and how to make them happy. From now on, you will have to think of your franchisees as VIP customers. They are signing a contract with you, stating that You will be helping Them become a success. Some of them will be clueless, others will be fickle. Every now and again, you'll get the thorn in your side that refuses to listen to reason. All of this is part of the process, and over time you will be able to take all of it in stride. To help with this, make sure to have established boundaries (set in stone within the confines of your Franchise Agreement). The last thing you need is to have franchisees coming to you with problems they are having with their customers, legal issues, etc. Believe it or not, you can be held liable for poor decisions on their part in many jurisdictions. That is why we move on to the next issue: Legal.

My best advice to you- have a REALLY Good lawyer or law firm that has experience in franchising. Your personal and business liability will increase with each additional franchisee that signs on the dotted (or solid) line. A competent lawyer will make every attempt to limit that liability and keep you out of reach of most (if not all) issues that can arise. I'll quote a famous mantra: Be Prepared. Have them go over every aspect of your Franchise Packet/Package/etc to make sure that you haven't written or stated something that can potentially be used against you or your franchisee in the future. Examples: Using the word 'guarantee' in any context, stating a law that doesn't apply in other provinces/states/cities, and so-on and so-forth.

Other than that, have fun with the process. You have reached a level of entrepreneurship that most only dream of. Franchising means that someone else believes so much in your vision that they are willing to put their livelihood on the table just to have the opportunity to work with you. Enjoy expanding the confines of your business into new regions and nations. Don't forget to keep things in perspective, and don't be afraid to roll with the punches. If you have any other questions, feel free to inquire on YE- there are a great many talented and experienced entrepreneurs that are (usually) glad to help. Send me a PM for my contact info if any specific issues arise!