Quote:
Originally Posted by Flawless_CED
Interesting thread.
OP- I know you mentioned that you went from poker to FG franchising without any prior restaurant experience, but was wondering if you had any prior relevant business experience at all or came into it entirely green from poker? Once you become a franchisee of FG do they basically outline all the key financial indicators or numbers for your business that you have to focus on? I'm assuming they streamline all your POS integrations, bookkeeping, all systems/processes? Just am wondering how much of what you have learned in the business now came directly from FG and the assistance/information they provide as opposed to just having to learn it on your own.
This aspect interests me since I just launched my own gelato brand/business 7 months ago in East Africa without any prior experience whatsoever and the idea of coming into a franchise system where most of these things have already been figured out for me (procurement, production, logistics, marketing, suppliers, HR policies, etc) sounds like heaven. Just am curious how many of those things a franchise like FG would already have sorted out in large part for their franchisees vs how much you have to involve yourself in. Feels like I'm forced to reinvent the wheel and adapt it to third world conditions, in an entirely different market, with different rules, different culture, etc.
Prior to launching my own brand though I did shop around a bit trying to find other companies to franchise with but found none that had any interest in allowing a 27 year old with no prior business experience to help them open a branch in Africa. Decided that the time spent trying to convince a company to let me franchise, coupled with the added costs built into franchising with them, were not going to be justified in the grand scheme of things, especially since the market out here is so underdeveloped that even a top brand like Baskin Robbins wouldn't have that much more brand recognition than a newly created brand. Nonetheless, would still be a huge weight off my shoulders having the bulk of the systems/processes already established.
Flawless-this is very involved, and really you have questions on 2 subjects:
What does the franchisor really supply to the franchisee in terms of business support and structure?
and
Would it be a benefit to franchise a brand in a foreign market?
I will answer a couple of the basic questions about our experience, before we move on to the bigger questions: First, I am quite a bit older than you are, and worked for many years in the corporate world. I gained significant experience in other aspects of business (construction, both commercial and residential, balance sheet responsibilities and compensation based on such, and extensive customer service success in sales) BEFORE I became a professional poker player. I also had partners that added to our skill set as a team that made us attractive to FG as a franchisee-so although I had been a grinder for a couple of years before this venture-we did bring a business background to the table-(but I don't think this would have helped us open a single unit in a foreign market-more on this a little later)
To answer your question about the overall structure and financial guidance you receive when you buy a franchised business, it is important to know what the franchisor is interested in what they want nothing to do with:
The franchisor is interested in making sure you constantly and reliably supply the brand experience to all customers. As such they will supply you with very rigid structure about the product and procedures you use to reach this goal.(procurement is included in this)
The franchisor is interested in making sure they get their correct franchise fee on your sales. As such they pick a required POS system that they are in control of that allows them to accurately monitor sales (you will buy it and pay the monthly fees)
The franchisor does not want to be involved in the day to day running of your business As such you are responsible for your own processes like accounting, managing relationships with your suppliers (even though they pick the suppliers-you establish your own credit relationships), and with your employees. You will responsible for pricing and payroll. The franchisor will want NOTHING to do with your HR.
The second part of your question really centers on the relative value of franchising in a foreign market, both to you a franchisee and to the franchisor. I think it is important to remember that most of your problems getting a brand to partner with in your market is more about the challenges of the franchisor to support you than a personal slight. Unless you were coming to a brand with a desire to open a significant amount of locations(read >100) it would be difficult for them to provide you with the support you would desire to be able to recreate the brand in your market. This also speaks to the question of the value a brand would bring to a single location in a foreign market. Unless there is a significant ex-pat community with ties to the brand, I think you will have the same success building your own brand, if you have the skill set to provide the level of product you desire.