I knew it would come, in fact, I was waiting for one of my news feeds to have brought me a story about it a long time ago. An American serial entrepreneur, Jim Piccolo, has not only jumped into the world of franchising (for what seems the first time), but he has also leaped into the ‘new’ fandango world of digital marketing. Digital marketing is a relatively new field which has grown off the back of the rise of social media and all the channels that it opens up for business owners in marketing their businesses online.
Piccolo reportedly expects to invest $45million in starting the BizziBiz Franchise business, with the franchisee paying $18,000 for a franchise with two employees and $25,000 for a franchise with unlimited employees. The franchisee will in essence be selling localised digital marketing – i.e. encompassing social media, search marketing, free and paid media, and blogging.
As ever, I am more than pleased to hear of new and innovative franchise models, but I do still hope that certain rock solution keystones are in place:
- The Franchisor can recoop what he has invested in building the model
- The franchise model is sustainable long term
- The Franchisee can recoop his investment within a relatively GOOD period of time
- The franchisee’s profitability is secured (i.e. the model isn’t based on a loose wing and a prayer)…obviously matched with a hardworking, amibitious franchisee!
- The Franchisor makes money in the long term success of the franchisee (and not in the upfront fees and/or a wish for a quick exit at a high return)
So, I wish Piccolo the best – its great to see a digital marketing franchise take to the stage – I will be very interested to watch how it progresses and grows over the next year.