Tips for becoming a successful franchise owner

Sandwich Baron founder and CEO, Sally J’Arlette-Joy, gives tips on how to be a successful franchise owner:

“Franchisees can usually earn a comfortable living and in some cases, an exceptional living, if they adhere to 10 basic rules which have been gleaned from my 20 years’ experience running outlets. Abiding by these tips, has seen many franchisees earn reliable livings through good economic times and bad, while not following them has resulted in some franchisees failing,” says Sally.

1. Run the shop yourself.

There aren’t many, if any, instances of successful manager-run Sandwich Baron outlets. You’re unlikely to make it, unless you’re personally running the business on the shop floor. There are examples where franchisees think the business is doing well, only to find once their bookkeeper completes the books, that their stock is being stolen to fund somebody else’s business.

2. Take personal responsibility for the performance of the store.

‘Do you plan to run the shop yourself?’ This is always my first question to any prospective franchisee. Unfortunately, some people don’t believe me when I say they must run the store personally. Once it’s up and running, some leave their business under the control of a manager and when it begins to lose money (as it will), they blame the manager and staff. The real reason for the loss is their own absence. You can’t expect a store to run itself or be run by the staff. Take personal responsibility for the performance of your store.

3. Sign up for some financial training.

Stock theft is but one example of what can happen, if you aren’t constantly tracking your business. While some franchises have a wonderful system to help you build a successful store, you need to supplement that with basic business skills of your own. If you don’t know accounting basics, or how to interpret financial documents; or for that matter, how to hire and fire employees – you’d better learn. Otherwise, you’re going to encounter trouble. It’s especially important to track your food costs, as a percentage of revenue.

4. Computer literacy training.

Sandwich Baron franchisees have a slightly older age profile than other franchise systems; and often have no idea about the digital age and the marketing tools available, via social media. After their financial training, a computer literacy course should be next on the list. With technology advancing at an accelerated pace, you must learn how to keep abreast – unless you want to become a dinosaur. Occasionally attend thought-provoking seminars, short courses at business schools and read voraciously.

5. Customer service.

If you don’t like people, don’t be in the food business. Communication skills are vital in this industry. It’s not unusual for some franchisees to back-off on dealing with customers, through previous unpleasant experiences – but realise you’re going to have to overcome that resistance. Business isn’t about what the competition is doing or even the prices you charge; it’s all about your customers.

6. Don’t buy a franchise just for money.

If making a lot of money is your primary motivation, you’re unlikely to have the necessary passion for this industry.

7. Take control.

To make money, you must have controls in place. Without these, you’ll most likely fail, as people take advantage of you. Take full advantage of any training and tools you receive to build a business, but remember the ultimate success or failure of your store, is largely your responsibility – it’s part of the appeal of entrepreneurship.

8. Always have a positive frame of mind.

It’s important to have the right mental attitude always, to achieve your goals. Your attitude impacts on your performance, relationships and staff.

9. Never stop marketing.

Above all else, the sales and marketing is also your responsibility. Put a plan in place and market your product continuously; analyse the effectiveness and share your ideas with management and your fellow franchisees. Remember that word-of-mouth recommendation based on customer service, is the most effective marketing tool you have.

10. Financial expectations:

Franchisees charge royalty fees to be part of their franchise – and then there are all the other costs for staff, food, rent, utilities, etc; so keep that in mind, as it plays a massive role in what profit you actually get out.

*Supplied by, Nomsa Zwane, junior account manager (edited).

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