THE F WORD EVERYONE DOES IT, WHY SHOULD YOU?

The F Word Everyone Does It, Why Should You?

You can sense it from a distance everywhere you go. The Coronavirus has caused financial distraught for many large and small businesses. Right about now, you are likely thinking that if you were franchised this would not be happening. In all actuality, this is happening to the large franchises also. There is a difference in the financial effects that is felt by small businesses versus the big brand franchises. Seriously, everyone is affected by this pandemic, the difference is that the franchisee and franchisor are able to lean on each other. They focus on combined strengths and plan new ventures to institute and continue business and making money. 

The hospitality industry does not stop due to a pandemic. The virus has caused a slow down, but has not stopped all. You know that there are many types of business categorized under the hospitality label. You can be sure that the big brands are sitting in their thinking rooms and planning the next step. This means that there will be more of the same names at the top of buildings. Boring! We need more, we need new.

It Is Not Starting Over, It Is Beginning Anew

The opportunity to create new projects, new businesses and new ideas is right now. But…too many people are suffering from the F word, Franchising. The truth is that this F-word is not a bad word or terrible idea.  However, you do not necessarily want to challenge the top franchises. If franchise is a possibility for your business, you may want to consider researching some smaller brands. 

Franchising is not a terrible factor in the business world.  Working together with a franchise that has the reputation, a well known product and the means to move forward is what most businesses need now. Not all franchises are all huge and known worldwide. There are smaller franchises that are able to stand up to the competition. The hospitality industry contains many forms of coffee shops, smaller and more intimate restaurants, motels and more.

When you consider big brands and franchises, it may feel as though there is no chance to bring new, no chance for improvements. Au’ Contraire! If a franchise has a history, is an authentic product or process, then the franchise should be considered. A franchise is not what it once was. Many have determined that method did not work. Today, the franchise is there to help minimize the start up, to give a name immediately and to help you succeed. It is not just their pockets getting lined any longer.

The brand franchise enables the business to sell their brand exclusively. It is not the same product or process that is being promoted down the street under the same old, same old. This franchise helps you to make improvements. They want you to succeed so that they succeed. Their plan is to make a popular business into more. A franchise means to have multiple businesses selling your product. 

Due to the Coronavirus, many brands are feeling a drastic pinch to business now. Franchisers have scaled back efforts of their sales. Sales to franchisees, however, are steady due to the disenchantment of the employment situation. People want the security of having their own business and being their own boss. 

When the franchisee sells the brand product or even branded intellectual property, both the franchisee and the franchisor gain. The franchisee is able to have the product or process in their inventory and legally use and sell said product. The franchisee will pay a small percentage of the total monies made monthly, to the franchisor. The franchisee may use the name of the franchisor, or continue to operate under their own business.

Big Or Small, Short Or Tall

Do not get confused here, franchises come in large and small possibilities. A franchise will help a new business to get off the ground while using a brand that is already well known, or just the name itself. 

1. The franchisee can and will benefit from the experience and knowledge that is shared by the franchisor. 
2. The franchisee will also benefit due to the franchisor providing the training and assistance. 
3. Franchisees learn the best business practices and brand techniques that have worked elsewhere
4. The franchisee may have the sole rights in the district or area they are in, to be able to sell said product.

This F-word is not what you were expecting, huh? Brand names, franchisors and franchisees simultaneously work together for the good of all. By having the opportunity to manage a brand under your own business is the dream millions have sought. This F-word is an opportunity to share the “playbook” of success together, as a team. 

Being part of a franchise in the hospitality industry is not the dreaded aspect you may have dealt with in the past. Today, franchises fully understand that if you do not succeed then they do not succeed. Not only will they lose monthly fees, but also they lose a store that radiates their brand. They need that just as much as you need to feel good about the prospect of staying in business no matter what virus hits or which epidemic tries to stop businesses from prospering.

Let’s Think About This

Today, as we come to a post pandemic period, it is not just the big brand names that are sprouting up and opening doors for business. There are many smaller franchises that are following the lead. For current businesses, there are many opportunities out there that can be researched. The big brands have begun to move further away from the smaller towns. This obviously is opening the doors for new brands and smaller franchises to open. 

Working with a franchise can help you benefit from the experience and get a better sense of safety in business. No franchisor wants you to fail. Be cautious though, as there are some that only look after their own pockets. 

When you have narrowed your list of possibilities down, make a list and begin calling them. You should be able to speak to the franchisee owner and touch base, get some answers to questions, find out the nitty-gritty details, as much as they are allowed to share. There is even a good probability that you will find more than one that you may have some commonalities with. Instant friends and mentors. The best aspect of touching base with these franchise owners is that when you start up, they will be available at any time to help.

The Time Is Now

Even in the midst of this bizarre scenario the world is facing, franchisors should be there to assist the franchisees. Whether that is by letting them know about possible loan options available to them. They will rally around and celebrate even small advances forward. They may even have some ideas that can keep you going on a temporary basis until this pandemic is over. Possibilities that many are making a go at include

1. Delivery options
2. Curbside pick up
3. Social distancing possibilities

Now we have businesses that are able to open at up to 50% of capacity. The hospitality industry is beginning to advance back to almost normal. This is the time that we all need to adapt to the circumstances around us. When you are a member of a franchise, you are able to share your thoughts and ideas with others. It is likely that one or more have thought about the same idea. Between all, you can implement and report back to each other how each idea worked. Business may be slow, but you and other franchises do not need to close up shop.