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Nick Bibby's picture

Where do I begin re: 'the franchising way to grow'?

The complexities of quality franchise decision making are not found in simple, over-arching 'business statements'.

If nothing else, franchising is a highly personal endeavor that first requires an understanding of the human element that gave birth to the concept under consideration. And, as I've stated for years, not holding this basic premise is the reason: 1) that most franchisors fail, 2) that 'DIY' kits are assault weapons in the hands of amateurs, and 3) that peripheral fine tuning (legal and accounting) is worthless prior to the completion of true feasibility investigation (not a sales presentation) and the production of a 'franchise strategy' that is both written and understood.

It's not the length of time in business, it's the proof that your stuff works. It's not necessarily OPM or OPT, it's whether or not 'others' will benefit your system. It's not............., well you get the picture.

I don't work (past feasibility) with most folks that call me about franchising a business because they're not going to make it. But they can go down the street and have their fools' gold nicely rubbed. It's not the fact that most 'want to be franchisors' throw their money away that bothers me, because that's a real conscious decision. What triggers my flame is the potential and actual wake of destruction the ill-suited can produce when set loose upon 'want to be franchisees'.

Nick Bibby is an international franchise consultant and a program developer dedicated to excellence in entrepreneurship. 

Barbara Jorgensen's picture

"That DIY kits are assult weapons in the hands of amateurs"

Your logic why franchisors fail.
Was Wall Street in the hands of amateurs? How about the banks? CEO's of the automobile industry? YOu are putting the blame on the zees. When the possibility the people at top don't know what they are doing. Even Greenspan admitted there was a flaw in what he did.
In my opinion a good leader is one who admits when they made a mistake and trys to correct it. A good leader has the best interest of those below him and wants them to succeed. (Which seems rare in many franchise systems.)

Perhaps you should re-read his comment, Ms. Do.

His reference to assault weapons was about amateur franchisors that use DIY (do it yourself) packages for franchising a business. Nick said nothing offensive about franchisees. On the contrary, he said that it makes him mad that they get hurt at the hands of bad franchisors that don't know or care about what they are doing.

Why don't you re-read what he wrote as a 'do due diligence' exercise.

Barbara Jorgensen's picture

I totally misunderstood what Nick was saying

I apologize Nick. I did not know what your acronyms meant. Still don't.
I should of asked you questions before writing. It is just so many zors blame the zees for failure and it upsets me. Your comment was good.

Ray Borradale's picture

Hi Do, no

I would love to agree with you but I see Nick's comments as he being contacted by idiots that come up with a stupid concept and decide to franchise it to unsuspecting zees because it is stupid and someone else should carry the risk knowing that way they still get an earner.

On your second point; in my lifetime I have had some involvement with a number of very wealthy business people and money is blind power.  

Some have been amazing with drive, talent and focus who deserved their wealth.  Others ... you have got to wonder what devine inspiration created such injustice.  The latter have 2 things in common - lotsa money and they are obnoxious as a way to cover their limited intelligence.

I've met CEOs who headhunt brilliantly, their foresight is pure talent and their strategic thinking is a gift.  Others .. the best example in this country at the moment would be John Fletcher.  He reportedly received a $27M payout from Coles/Myer for wasting a fortune and was then told to "just go away".  

Then he bought into a failing franchise system in the belief that the idiot that had been running it into the ground would be able to provide the franchising and industry experience to turn it around if he had some of his money. [duh]

Now he finds he bought a big black hole and the information provided prior to signing was misleading and/or pure crap. I sorta like this story a lot because here you have a moron tied to an investment that is going down the drain and he holds on for dear life to his investment in the hope that some miracle will return his money ... all the while throwing more money into the big black hole.  And he is a Zor.  I just do get off on irony.

One of the nicest people I know is also one of the wealthiest.  On rare [and drunk] occasions my demolition man will brag; "I worked 100 hours a week for 30 years because I'm not that smart - and I always knew it - but I could always smell a good deal and I can smell bullshit and I was always too busy not to walk away from bullshit".  In truth; he won't spend a cent without a painstaking investigation and he loves to haggle at a bloody flea market.

Never over/under-estimate the quality of senior executives, politicians, professionals and the wealthy ...... in large numbers.

Barbara Jorgensen's picture

Ray what you wrote

shows how much I do not know about business. It is fasinating yet cut throat.
Your last story about the guy who worked for 30 years is a great story about someone with street smarts.