Now for the perfect job, the franchisor:
- Hijack a concept that sells (regardless of profit), create an alternative product with not a creative bone in your body or differentiator (other than price) to separate yourself from the leader. Good models are Subway/Quiznos, Dunkin Donuts/Tim Hortons, Gold’s/Curves, Taco Bell/Taco Johns, McDonald’s/Burger King, Red Lobster/Long John Silvers, Dominos/Papa Johns, Midas/Meineke, Kinkos/UPS Store, Carvel/Baskin Robbins.
- Find a big franchisor law firm that writes bullet-proof UFOCs/FDDs. “Put in two CYA clauses for every claim your broker will make.”
- Get a referral from your law firm for that less-than-respectable banker that can build a contract based on UCC and not common law.
- Sell the concept to unsuspecting franchisees who are naive and in a place of vulnerability (immigrants mostly, displaced corporate America , mom and pop hopefuls) to finance your venture (mostly because anyone with a brain won’t touch such a business plan).
- Then watch the money come in. Schedule your 12 weeks of vacation per year, buy your VIP box at your favorite stadium and start shopping for yachts. It’s only a matter of time until you have the cash flow to live like a king.
- With some of that initial franchisee deal money, hire some bloke who can’t otherwise make it in the real world to be your marketing officer (sort of like Quiznos hired Steinfort, some young 30 something who’s only experience was in telecommunications!).
- Introduce them to the other brilliant creative minds on Madison Ave. and the party will now begin! All you have to do is attend dog-and-pony shows, make a decision and whatever you choose is paid for by the franchisee!
- If you need more ad money, simply raise the rates on your ad royalties and make it retroactive to every FDD/UFOC (that confirms it’s coming out of the franchisee pockets of course). No one can object because if they do, you can pull their franchise!
- Cut an ironclad kickback agreement with your vendors and dictate to each franchisee that they have to buy from that vendor. If they refuse, threaten to pull their franchise and thus their livelihood.
- Hire average salespeople (yes men) who will do exactly as you instruct them in coloring the truth just enough to the franchisees to get them to sign. Those from the mortgage industry, timeshare sales, car sales and any other large ticket, one time products make great fits. They’re used to instilling the confidence necessary to maket the sales and because it’s only one-time, they don’t have to worry about repeat sales. Salespeople with integrity and honesty are considered bad prospects.
- Spend all your time building your marketing programs to sell more franchises, letting the other stuff work itself out. You don’t need rockstars for this, average blokes from the local community do just fine. If you hire too much IQ, you suffer someone questioning your motives and the long term. Remember, your job is to sell franchises, not worry about how they do as a business. If they fail, you have the opportunity to sell another in the same region. And because you the majority of your money on the initial sale, their success or failure is absolutely of no concern to you.
Stop by tomorrow to learn how to build your internal staff to accommodate your new high roller lifestyle. We’ll teach you just what type of people can help you build your kingdom with the life savings of the naive who are seeking to survive.
Bloody