When Franchise Failure Isn't Failure

As COO of a franchise company, it was my role to work hands-on with the franchisees who were struggling.  I had a guy I coached from Mississippi named Eddie. I worked my butt off trying to help Eddie get it and win. In his past career, Eddie sold potato chips off the back of a truck and made about 50K a year.  Despite my and his best efforts, Eddie failed. After 3 years in business, I couldn't get him over the hump of making 35K.  Eddie struggled to pay his bills.  Eventually Eddie made the decision to shut down and go back to work.  He lost his savings, but not his home.  

I decided to call Eddie two years later to see how he was diong.  Eddie told me that the skills he learned in business helped him nail a six figure job in pharmaceutical sales (with no previous background in this industry) He also told me he replaced the savings he had lost in less than 2 years. He is sitting better than before.  The last thing Eddie told me was that he had no regrets.

I am also a product of a failed franchise.  I lost my savings when I was 25 years old. 

Once I had a conversation with my roommate from college's wife Juliet.  She received an MBA from one of the ivy league business schools.  I said, "One of my regrets is that I didn't get my MBA when I had the money and had the chance.  I would have liked to see how I stack up against the best."  She said, "No you don't.  While we are studying how to run a business, you were out there doing it.  You do what others just read about."  That healed me.

I am a consultant to franchisors and franchisees.  I can talk as the voice of experience.  I've been there.  I am thankful I don't talk theory.  Being there has helped me secure a good financial future for my family.

Sometimes failure is success when you look back on it.  But it certainly doesn't look that way when you are failing.

I hope this helps someone.

Joe Mathews
Franchise Performance Group
co-author of Street Smart Franchising