I read a recent post in Advertising Age which talked about how there is a big trend for celebrities buying into franchises in the USA. At first I was quite taken aback and thought – what on earth? One major thing that jumped up for me: How to Manage Them as Personalities!
As any franchisor will tell you, one of the big things you have to keep in mind when you recruit franchisees – its that you need to be looking for the personalities who are motivated, enthusiastic and cash liquid….but only semi-entrepreneurial. What I mean by this is you want franchisees who will take on all the responsibility for being a business owner…but be happy to toe the line (accept that the bigger decisions are really the franchisor’s to make).
Now, from what we know about celebrities – once they achieve a certain amount of success they don’t really like being told what to do (I accept that that is a very general comment to make of course, but bear with me). However, while I read further in this post from Advertising Age I couldn’t believe how many US celebrities (particular sporting celebrities) are ‘collecting’ investments in franchises!
I think this is a fantastic boost for the model, because with these kinds of people (who have a lot of money to look after) to find franchises as viable investment routes…that says a lot for the brands they buy, as well as the franchise business model as a whole. Obviously these guys choose models where they would hire teams that would manage the operations, so I guess my worry about managing personalities wouldn’t probably be a big problem in the practical day-to-day sense.
What I have tended to forget is the amount of social influence these celebrities have, especially when they have come from some tough backgrounds and many of them see investing back into their communities as ‘giving back’ and providing employment opportunities. The brands are clever about it too – they will approach celebrities who have a particular pull for a specific demographic that fits in with where they are trying to expand. Nothing wrong with that – as long as everyone wins in the end I say.
In closing I thought you may be interested in this list of franchises and their corresponding investor celebs (perhaps the UK could learn from this tactic?):
Have you come across any celebrity investors that you could add to that list above? I’d love to hear from you….please pop a comment on this blog post or share it with me on my Facebook Page here.
Posted in Branding, Business location, Franchise Recruitment, Great Franchisors, New Franchising, The Franchise Market, The Funny Side
Tagged burger king, celebrity franchisee, jimmy buffet, kevin faulk, krispy kreme, magic johnson, multiple franchise owner, venus williams
One of the (many) things I do harp on about to new prospective franchisors is: be specific and very clear about what a good franchisee looks like and then go out and with the precision aim of an assassin….find them, bring them on board and LOOK after them.
Franchisee recruitment is not dissimilar to normal business staff recruitment. You need to be incredibly mindful of the ‘job’ at hand, what the skills are that are needed to carry out that ‘role’ successfully and most of all…look for what the career growth path would be for that individual. The extra element that you want to perhaps plan for in recruiting for franchisees is cultivating a ‘perfect’ franchisee who will end up with the operational, hands-on experience that might well be useful to you in 5 to 10 years time.
What do I mean by this? Well, if you are smart (and I hope that you are) – you are setting up a franchise with two views: 1) To Grow and 2) To Exit. By recruiting some golden nugget type franchisees who have the special ‘putty’ to become fantastic, you will be sowing the opportunity for having a managing director, operational manager or even a team of super-staff who will add value and a glow to the business…making it even more attractive to a buyer. Having a team that doesn’t purely hinge on you or your operational knowledge makes a business very sellable.
Bear in mind, these individuals would not remain as franchisees should they start to work for the franchisor – so you will need to think about what you can offer them that will make the career move from business ownership more enticing. Some suggestions on what to offer them:
(a) Taylored package that is heavily incentivised by their results and input (commission %; target incentives like holidays; etc)
(b) Good company benefits (which are rare to find, especially in the UK, and will therefore be very attractive!)
(c) Small shareholding in the business (relative to their role of course)
(d) Input into how the business grows going forward (i.e. make them an integral part of the executive team)
I’m sure there are many more elements you could incorporate into a package to tempt an existing franchisee into your franchisor fold, all I’m saying is – bear this in mind right from the beginning. Imagine having a team of strong franchisees who (at any point) you will love to be your right hand man/woman? Now compare this picture to merely having the recruitment criteria mindset that anyone with a pulse will be accepted to become a franchisee! (My fury over this point is enough to write a whole post just on this!)
So, what’s my message? When you are planning who you are going to have as part of your network: think long and hard about where you want to be in 5 to 10 years time and how much value you can add by recruiting the right people. By being SMART in your recruitment tactics, you will be growing your business in a much more planned and efficient way (i.e.SMARTER growth!)
Posted in Franchise Recruitment, Franchising Business Practice, Worthy Franchisees
Tagged best practice, business growth, franchise, franchise marketing, franchisee interview, franchisee recruitment, franchisee retention, franchisor practice, smart working, value