FAT-WHYME

True Confessions: What It’s Really Like to Be a Franchisee?

You’ve been talking about buying a franchise for years. Your spouse, family and friends have heard it all-from last year’s plans to purchase a sandwich shop to your latest interest in mobile auto detailing. But this year you’re really serious-whether it’s because your boss is getting on your nerves or because you’re just feeling the urge to be your own boss.

Whatever your reason, if you’re considering becoming a franchisee, chances are you’re wondering, Will owning a franchise be all it’s cracked up to be?

“It was scary,” says Dick Shea, describing his first few nerve-racking months of franchise ownership. After 23 unfulfilling years in real estate sales, a recent divorce, and the realization that he was quickly nearing age 50, Shea decided to purchase a franchise from McLean, Virginia-based Chesapeake Bagel Bakery. “It was a major undertaking,” he acknowledges, “but I finally decided I was going to do something that made me happy.”

It’s this yearning to take control and head toward the future with something you’ve built that’s yours-all yours-that leads many entrepreneurs into franchise ownership. When Shea and his 46-year-old partner, Tim Parker, opened the doors to their Richmond, Virginia, bagel store on March 17, 1994, they joined a long history of entrepreneurs who, just like them, decided being a franchisee was exactly what they wanted. But what actually happens after you buy a franchise?

For most, being a franchisee means rolling up your sleeves and getting down to business. It means setting that alarm for 5 a.m. to get the store ready for the morning rush, cracking open the phone book and making cold calls for five hours straight, and skipping dinner with your family to pull together a last-minute proposal for a crucial client.

“Probably the most important characteristic of a franchisee is a [strong] work ethic,” says Calvin Haskell Jr., president of Portsmouth, New Hampshire-based franchise advisory company Franchise Solutions. “It’s the ability to get up and, day after day, work harder than you’ve ever worked before.”

As a franchisee, you’ll need to put your entrepreneurial drive to work to grow your business. And at no time will a franchisee work harder than during start-up. It’s not unusual for new franchisees to pull 16-hour days, including weekends. Often, new franchisees handle sales, marketing, accounting, hiring and much more all by themselves. And for those who mistakenly think buying a franchise means customers will just roll in with little to no effort on their part, the harsh reality often kicks in-quickly.

After working in an office job for just over one year, 25-year-old computer science graduate John Brown was yearning to be out on his own. So in 1994, he purchased a franchise from Union, New Jersey-based Oil Butler. Today, Brown’s Charleston, West Virginia, homebased mobile oil-changing business services about 70 accounts with the help of one part-time and two full-time employees as well as three family members who provide part-time assistance. While changing oil and checking tire pressure isn’t something he relishes, Brown says he knows that’s what it takes to succeed-and he plans to continue the grueling routine.

“It’s really tough some days,” Brown admits. “You’re on call 24 hours a day, and sometimes you wake up early in the morning, it’s pouring rain, and you really wonder why you’re doing this. But I know that in the end, it will all pay off.”

Indeed, along with the hard work, sweat and tears a franchisee puts in can come some invaluable rewards: recognition, success, rewarding friendships, increased income and a feeling of self-respect. But long hours and pressure from the daily grind can also place a strain on family relationships, say many franchisees.

Ann and Jerry Swanson, franchisees of Bradenton, Florida-based sign-making franchise Signs Now, worked many 12-hour days when they opened their first Tulsa, Oklahoma, store in 1989. Since then, they’ve added two more Signs Now stores, one in Tulsa and the other in Wichita, Kansas. But with the addition of a well-trained staff, improved computer equipment and stronger customer service, Ann, 52, and Jerry, 53, only spend eight hours per day running their business. “The knowledge we’ve gained from running our prior stores, plus the new equipment we’ve purchased, have helped our business tremendously,” says Ann.

Like the Swansons, most franchisees find there is a learning curve before operations begin to run smoothly. “When I started my business, I saw an opportunity to be very creative,” remembers David Hotle, a franchisee with Stevenson, Maryland-based Sandler Systems Inc., a sales and management training franchise. “But I discovered very quickly that all my creative juices and time were being [wasted on] things that weren’t making me a penny.”

After purchasing his franchise in 1992, the former marketing executive spent most of his working hours coming up with new marketing ideas instead of getting out of his St. Louis office and selling his services. When he realized this was hurting his business, Hotle changed his focus and now spends more time hosting seminars and attending networking events. He also hired people to handle the long-ignored filing, record-keeping and bookkeeping.

Are there some people who just effortlessly fit into the franchising formula, while others don’t? Experts say you can bet on it. “Some problems occur when people who buy franchises have previously been in high management positions,” says Don Foltz, senior consultant for The Franchise Centre, an Englewood, Colorado, franchise consulting business. “All of a sudden, it dawns on them that they have to follow a system and everything has to be done by the book.”

Franchisees who have a penchant for breaking the rules or doing things their own way often have problems with their franchisors. These franchisees frequently complain about lack of control over management decisions and policy changes.

While a natural instinct to think on your own can be to any entrepreneur’s advantage, it’s still necessary to work as a team player, say franchise experts. After all, the reason you buy a franchise is to take advantage of the franchisor’s years of expertise and tried-and-true systems.

Haskell says the best franchisees are those he likes to refer to as ‘intrapreneurs.’ These people are driven by an entrepreneurial desire to be profitable, yet also have the ability to work within a franchise system. “The ideal is for people to be able to work within a structured environment,” says Haskell. “People who are too entrepreneurial just won’t follow systems.”

Do you have what it takes to be a successful franchisee? Do you think you’re ready to take the franchise plunge? Despite the inevitable hard work and long hours, many franchisees say the hassles are well worth it. Because for them, becoming a franchisee has been the fulfillment of a lifelong dream.

About the Author

Nelson Davis was born in Andalusia, Alabama (near Montgomery) and grew up in Niagara Falls, New York. From the age of fourteen on, his burning desire was to get into radio broadcasting. Nelson’s career began with a high school internship program and part-time announcing job at a local radio station. From Niagara Falls he moved to a larger station in Ottawa, Ontario, where he continued his formal education with business courses. In addition to disc jockey duties, he became a program director and host of various television shows.

Eleven years later found Nelson in Los Angeles with his hopes of becoming a game show host transformed into learning the production side of television. Freelancing as a discussions show host and producer, he produced and/or directed such diverse projects as a series for PBS, commercials for presidential candidate Ronald Reagan, and a film in Africa.

Mr. Davis joined the NBC TV Network in 1980 as Manager of Mini-series, eventually becoming Director of Daytime Programming. One of his early jobs at NBC TV was Censor for The Tonight Show with Johnny Carson. Between NBC and starting his own production company in 1988, Mr. Davis was involved in many interesting projects as a producer. He was hired by Merv Griffin to produce the pilot episode of Jeopardy to bring it back to television; he was Executive Producer of Name That Tune for its rebirth in 1984; and he helped launch the Fashion Channel.

Mr. Davis began Nelson Davis Television Productions with the idea of bringing together special television programming with sponsors who wish to reach a niche audience. His first weekly series was “MAKING IT! Minority Success Stories”. The show has been on the air since March 1989 and has received over twenty-five awards and citations from all levels of government and business organizations, including two Emmys as Best Public Affairs series. “MAKING IT!” is broadcast in several California markets and is seen by satellite and cable viewers across the country.

In 1989, Nelson Davis TV Productions also created and co-produced Campus All-Star Challenge, a quiz series for historically black colleges. Sponsored by Honda and broadcast on BET for five years, the program has enabled cash grants of over $2.3 million to be awarded to participating schools. Nelson Davis TV Productions is also proud to have produced children’s specials built around oral storytelling, and Black History Notes, which celebrates Black History month.

Nelson is committed to combining his knowledge of television production and marketing to use TV as a medium to communicate positive messages and enable economic empowerment. Among community organizations, Nelson serves as: Los Angeles Area Vice President of the Academy of Television Arts & Sciences; Board of Advisors member for the National Association of Women Business Owners; Board of Directors member of the Pacific Coast Regional Small Business Development Corporation; Member of Santa Monica College Associates. Mr. Davis has also been active with Big Brothers.

RECENT AWARDS
Media Advocate of the Year Award- U.S. Small Business Administration
Supplier of the Year Award – Southern California Regional Purchasing Council
Entrepreneurial Dream Maker Award – Women’s Enterprise Development Corporation
Minority Advocate of the Year Award – U.S. Small Business Administration
Two Emmy Award winner – as Executive Producer of “MAKING IT!”
Entertainment Award – Los Angeles Mayor’s Minority Business Committee

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