Last night I attended a franchise development seminar by Jersey Mike’s Subs. I didn’t just show up – I was personally invited. It was a great experience with the Jersey Mike’s franchise development team, and with their Houston-area Area Developer and two franchisees. You could just feel the culture of Jersey Mike’s shining through in their passion, pride and enthusiasm for the brand.
You’ve probably noticed I haven’t mentioned names here… It’s because Jersey Mike’s is one of the few franchise brands that I’ve been around where it truly is a team in every sense. And, if you recall the acceptance speech at IFA2013 by IFA Entrepreneur of the Year. Jersey’s Mike’s CEO, Peter Cancro, he stated the award wasn’t for him, it was for Jersey Mike’s. Yes, culture at it’s finest!
It was my honor to be invited to last night’s event. I learned a great deal and was proud to be in the room, and to be involved in franchising as their passion truly puts franchising in a great light. And, if you know anything about Jersey Mike’s and all they give back to the community you’ll realize that I could write and write about those efforts as well. Absolutely remarkable.
Thank you, Jersey Mike’s – You truly lead by example!
Many, including myself, refer to franchising as an industry… even though we know it’s really not an industry. A business model is probably one of the better definitions, but what does that really mean?
When referring to a franchise, even many within franchising choose from a variety of terms as a point of reference – franchise organization, franchise system, franchise company.
Of course, there’s also the varying terms relating to the franchise relationship – franchisee, franchise partner and not to mention the slang, zee. And to the other side of the relationship – franchisor, head office, corporate office, parent company… and yes, zor.
And what’s the difference between franchisor and franchiser?
And, franchise locations are independently owned and operated. Yet, the franchise relationship is interdependent… or at least it should be interdependent and not dependent or independent upon… Well, you get it, right?
Now let’s look at the people serving the franchise community. Yep, franchise community is another reference for the franchise list above but let’s move on. Franchise consultants, do they sell or consult? How about franchise brokers, sales agents, sales representatives, and again, franchise consultants. Whew!
Moving down the chain there are franchise suppliers, service providers and vendors… What’s the difference? Preferred or approved? Is there really a difference?
Of course, there are references to segments within franchising such as master franchising and sub-franchising… Which one is correct? And, isn’t the sub-franchisor actually the master franchisee? I guess it all depends on which end of the relationship one is on.
How about now – confused yet?
Franchise services means what, and providing services to who? Franchisee to end-user? Franchisor to franchisee? Franchise service provider to franchisor and/or franchisee?
Same can be said of franchise marketing, right? Does marketing in a B2B or B2C scenario but within a franchise environment mean that it’s franchise marketing? Or, is franchise marketing actually marketing to franchise candidates?
Speaking about franchise candidates, when is a candidate actually a candidate and not a lead or just an interested party? Does this fall under franchise sales or franchise development? And who’s in charge – the VP of Franchise Sales, VP of Franchise Development, or VP of Franchising?
And then there’s reference to franchise professionals. Is a franchisee a franchise professional? How about if the franchisee is a multi-unit franchisee with 25 locations? How about a franchise attorney? Franchise service provider?
If a franchise executive is a franchise professional, at what level of management does one begin to be considered a franchise professional? How about within the franchise organization itself? Secretary, if their support is purely administrative as opposed to an admin that actually communicates with franchisees?
Oh, and should the CEO of a franchise company be considered a franchisor as we often refer to them as such at franchise events?
Ironic how franchising is the replicating of a system with focus on consistency in image, appearance, product and service from one location to another. Yet, there’s little consistency in the terminology used to define many aspects of franchising.
Yes, today is Small Business Saturday and I urge you to support local business everywhere. That being said, please remember that franchises are small businesses as well, and are locally owned and operated. Unfortunately, despite efforts to educate American Express about franchising, they still found it necessary to place limitations on franchising’s involvement by excluding franchises with over 100 locations.
I’m concerned about the local franchisees of BrightStar Care, Rita’s Italian Ice, Red Mango, Nothing Bundt Cakes or of the many other franchise brands whose franchisees invested their hard earned money and savings to develop a business in their local area, just like the Mom & Pop proprietors have done. A small business is a small business. Period.
Franchising is very much small business and AMEX would certainly have a different opinion if all franchises stopped taking the American Express Card! Yes, please visit and support local businesses, including franchise locations, but as a true sign of support for ALL small business owners, about your American Express Card, please do leave home without it!
And, it’s not like American Express wasn’t made aware of franchising’s role in small business.
Last year I wrote numerous articles and actually had multiple phone calls with senior executives at AMEX. All appeared to be on track for including franchising in Small Business Saturdays. I even followed up with phone calls mid-summer to make certain last year’s debacle wasn’t repeated. I was assured all was in order, that they did their research and yes, franchising would be well-represented in this year’s Small Business Saturday event. Well, shame on me for following up, but not following through. You can be assured that will not happen again.
Here are links to last year’s articles which I will build upon for 2013…
A couple of years ago, I started a discussion on the IFA Linkedin group about the then upcoming IFA Convention. I inquired as to who would be attending the event, and what they were hoping to bring back to their franchise organizations. Many franchise professionals shared their reasons for attending which ranged from seeing old faces to building relationships to improving franchise sales to learning more about social media. All great reasons. But one response in particular really shined through. It was a response from franchise veteran, Michael Seid.
Reflecting back, I know many smiled as I did when reading his response. Actually, it was his personal recollection of how IFA Conventions have evolved since the first convention some 25 years ago, and his reference to people and events that made it special.
Well, as this year’s IFA Convention quickly approaches, I thought it might be inspiring and thought-provoking to revisit Michael’s response and share it once again. Enjoy!
“1985 was in Miami if I recall and that was not my first so it may be longer than [25 years]. If I recall the attendance at my first convention was measured in the hundreds – not like we have now in the thousands. It was a much different association – we have come a long way with programming and content and member services. A lot of the founders were still around. I just got a great biography of Joe Francis from The Barbers who was very active years ago. If you did not know Joe you missed a great man – really a fine individual who went out of his way to give guidance to anyone who asked for his help. His son is still very active in the IFA. It’s a great quick read if you have not seen the book. Joe is gone 15 or more years.
The culture of the IFA has not changed. You can still corner an experienced member as a new comer and they seem always to be thrilled to mentor and give advice. I remember asking Fred DeLuca a question when I was new in the association and he spent two or more hours giving me his advice. That has not changed at all as most members today will do the same for a new comer.
Looking back at what has changed – No franchisees back then. That was a major difference Steve Lynn and Jim Bugg made that happen). No PAC to speak of (Sid Feltenstein changed that). No franchise appreciation day (Bernie Browning‘s idea). No Education Foundation only an education committee (I think Sid Feltenstein is also responsible for that). No thought of diversity or minorities in franchising (Ron Harrison). No VetFran (Don Dwyer‘s idea during the first gulf war). No Second Tuesdays (if it was not Lane Fisher and Scott Lehr then they were responsible for making it grow as it has). Who would have thought we would be looking at using franchising to provide products and services to the poor in the emerging markets and yet today we have the Social Sector Franchising task force. No CFE (John Reynolds). No one would have thought of a franchisee ever being chairman (Steve Siegel was the first and Doc Cohen the second). No franchisees or suppliers forum leadership on the board (Joyce Mazero if I recall was the first Counsel of Suppliers chair on the board and Jeff Kolton was the second – although we had no vote then. Supplier membership on the Executive Committee did not exist (I had that privilege when I was supplier chair to be the first because of Gary Charlwood).
I remember the IFA chair years ago saying that he would never let a mattress salesman (his word for suppliers) ever being on the board. Suppliers got a board vote when Gary Charlwood was chairman). No suppliers elected to the board in their own name for six years (I was privileged to be the first and Lane Fisher the second). No women as chairman (Joanne Shaw was the first and Dina Dwyer the second). No major investment in research (Mike Isakson). I think Jim Amos when he was chair actually creating the first IFA long range strategic plan. When Don DeBolt became president of the IFA we were near bankrupt and look at the great financial condition we are in now (Russ Frith as Treasurer did an amazing job). We did a lousy job in lobbying years ago and now we have a huge public affairs team. We dealt with Coble and LaFalce holding hearings on relationship laws in Congress and those days are gone.
Yes a lot has changed over the years. We owe a debt to a lot of some very smart folks who were in the leadership back then who kept adding great elements to make the association better. Along the way we had some who were less than stellar also but for the most part, we have been fortunate by those who chose to be in the leadership. Lets not forget the amazing job Debbie Moss has done in growing and professionalizing the convention supported by a really professional team of staff.
Still with all of the change, growth and the better financial condition of the association, the culture of the IFA has not really changed. I expect that many of the members/leaders from years ago who have not been active in the IFA will be at the 50th anniversary. Some of them will be surprised and pleased how far we have come.”
It appears Chick-fil-A has been quite successful with this unique business model, so why haven’t more franchisors followed suit? And, for the ones that have, why haven’t they succeeded?
With respect to a recent article’s reference to average franchisee profits, are there potential issues with Financial Performance Representations in the franchisor’s Franchise Disclosure Document?
Here’s a thought as I compare Chick-fil-A to other franchises… Should Chick-fil-A really be considered a franchise?
Hey, don’t get me wrong… I admire a company that affords individuals the opportunity to earn significant income, provides a great product and customer experience, and stands by its convictions (Closed on Sundays for religious reasons). My questions are entirely focused on the franchising aspect. Is it really a franchise?
Is the Chick-fil-A model more successful from the perspective of failed locations than other franchise chains?
From a business standpoint it appears there is much to be learned from Chick-fil-A. So, why aren’t more franchisors developing similar business practices, even beyond the franchise practices.
Looking to keep this positive… and really looking forward to all thoughts, insight and perspective!