I was surprised to discover this week that franchises provide 5% of all jobs in New Zealand. That’s right, 1 in every 20 jobs is in a franchise. The most obvious are the fast food chains that we see whenever we travel locally and internationally. I remember being quite disappointed walking along Patong Beach in Thailand years ago, and seeing McDonald’s. However, since being made aware of the number of franchise jobs in New Zealand, which apparently is the highest percentage in the world, I have started looking around and there they are all fast food outlets, childcare, couriers, healthcare, house building, motor vehicles and …
The last one, motor vehicles, got me thinking, partly because I worked for the head office of a major multi-national for quite a long time, and it got me thinking about how the dealers were treated. As a franchisee, are you a customer? If my experience is anything to go by, you are not treated like a customer. More likely, you are being constantly dictated to and told what to do, how and when to do it, just like an employee. There is a big difference, however, because you are the one paying for the privilege, not the one being paid!
Over the past 12 years I have worked with a number of franchises and, despite having set processes, brands, and varying levels of franchisor support, their results have varied greatly. Why? To start with, each involved different personalities, capabilities, energy levels, commitment, resources and markets. For many franchisees it was their first venture into business ownership, and the reality of the challenges was a shock. Add in changes in the market, loss of key staff, insufficient capital, break up of relationships, illness or accident, and adverse circumstances, quickly drain the excitement of owning your own business.
In my opinion, one of the keys to success is that both the franchisor and franchisees succeed together. If the franchisor’s major source of revenue is from selling new franchises rather than making their franchisees successful, I wouldn’t advise buying a franchise! Not far behind that, consider both the leadership style and culture of the group. How do they fit with your personal values?
Now for the good news! – Experience On Tap continues to provide general management support to franchisors and franchisees, as we have for the past 12 years, but now we are able to provide specific franchise industry support. Our services are appropriate for existing or potential franchised businesses, including those looking to enter the New Zealand market.
Be sure to visit our good friend Dave’s website http://www.experienceontap.co.nz/about-us/ and http://www.experienceontap.co.nz/how-we-help/ and get a FREE, No OBLIGATION evaluation – all you have to do is ask.
Dave Wylie – Telephone: 09 534 4844
“If we are together,
nothing is impossible.
If we are divided, all will fail.”