We made a decision to seek Area Developers rather than single unit operators. In addition we targeted synergistic industries like painting, parking, paving and property management. Our model is a great “Bolt On” concept for most commercial service companies mainly because of the rapid scalability and low cost of entry. We have formed a National Supply and Support agreement with Sherwin Williams (click for link to press release) and strong relationships with national brands to inject additional value to our model and to support our franchisees. We utilize PR to drive business to our franchisees as well as to further promote the brand on a National level.
Q: Are franchisees more qualified now than ever before? Why or why not?
There is a large pool of potential franchisees available due to the economy, but only a small portion of these will be right for franchising. By focusing on pre-existing business owners we tend to get a more qualified candidate as they are already running small businesses. At WDL we insist that our candidates are well educated about the franchise industry. I feel that “An educated consumer is my best candidate.”
Q: Do you predict that franchising has changed from this point on? If so, how?
I absolutely believe that franchising has changed and will continue to morph due to the lack of financial liquidity in the marketplace. It is now much more difficult to get candidates funded. As a result, qualified franchise candidates with organic funding have the luxury to negotiate much stronger deals and have vast choices. There is more of a focus on promoting your brand and maximizing the leverage of all the avenues, both traditional, non-traditional, and digital.
Q: Anything else you think is interesting or important to know about franchising and/or We Do Lines in particular?
When considering whether to invest in a franchise, a candidate has to answer some common sense questions: Is there a marketplace for the franchised product or service in the area I intend to operate? Is the timing right for the product or service in that marketplace? Is it “on the economy?”
The second thing in the timing fork is the “man in the mirror” calculation. Is this the right time in my life to take on this challenge? Do I have the necessary equities to succeed in the business model? To be successful, each candidate must possess four personal equities:
1. Intellectual. You have to be smart enough to be able to run a small business.
2. Sweat. You have to work harder for yourself that you ever worked for someone else.
3. Intestinal. You have to have the guts to invest in yourself.
4. Actual. You have to be able to afford to capitalize the business.
3. Intestinal. You have to have the guts to invest in yourself.
4. Actual. You have to be able to afford to capitalize the business.
These equities back up on each other. You need the actual funds to start the business, the guts to invest the funds, the sweat to make sure every dime works for you, and the intellectual smarts to choose wisely where to invest your funds. A responsible franchisor must assist the candidate to discover whether he is the right fit for the model and in possession for the necessary equities. At We Do Lines, we take seriously the notion that the franchise is ‘awarded rather then sold.’ This presumes a large degree of ‘want to’ by the franchisee and willingness to judge the opportunity realistically.
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