Thinking About Franchising? If you’re interested in franchising, carefully examining the background of and the contractual arrangement offered by a franchisor is just the first step. On a broader level, ask yourself how well or how easily a franchise can be integrated into your existing business. One successful CertaPro franchisee, Chris Wheeler, CEO of CertaPro, Rhode Island, says the franchise has more than met his expectations. In fact, since buying his first franchise less than five years ago, he’s purchased another. But he doesn’t think that the franchise would be a good fit with an existing home improvement business. “This is the kind of business that you need to get into and have your head in it 24/7 for the first couple years,” he says.
Scott Keegan, general manager of CKH Industries, New Windsor, N.Y., has had no problems integrating an Owens Corning Basement Finishing System franchise into his existing siding, window, and door business. Keegan was first attracted to the franchise by the brand name, the innovative product, and the protected territory. His success with the first convinced him to purchase nine more, which now generate four times the volume of his other lines combined.
As many contractor/franchisees do, Keegan runs the franchises as separate businesses under the larger company umbrella. He formed separate sales and production departments for the Owens Corning franchise, while leveraging existing functions, such as financing, that the businesses could share. Another key consideration is how well the franchise will lend itself to cross-selling with existing lines. “You want to look at a business that has repeats and referrals, so that as you build the business you can capitalize on the goodwill you’ve created,” CertaPro’s Chase says.
And the character of the franchisor can also be vital, he points out. Look for a business that’s well established and “has a good set of values. One that delivers more than a brand name,” Chase says, “and where the staff has field experience and knows what it’s like to be out on the line.”
And, of course, make sure you get the promised marketing, training, and other support that many franchises promise. Visit and talk to other franchisees, both those who are successful and those who have left the business.
Don’t Fight the System Of course, buying the world’s best franchise — one that features a good product, an established brand name, effective and integrated business systems, and strong, ongoing support — in no way guarantees success. For one thing, you must embrace the franchisor’s system. A number of franchisors say the same thing: Time and again they see franchisees pay what can be a hefty fee and then fight the system.
“One common denominator in success is commitment,” Russo says. Successful franchisees embrace the program. The contractors who send their sales and installation people for the full complement of training, those who run the company ads, “they’re the ones who succeed.”
Marketing as the franchisor lays it out is key, Wiggins says, but franchisees don’t always follow the carefully crafted program. “We tell them what to do, and then they go home and talk to their sister-in-law who thinks she knows something about marketing, who tells them something different,” Wiggins adds.
Perhaps most important are a contractor’s personal characteristics. It’s a truism that franchising isn’t for everyone. So who is likely to benefit most from a franchise? Chase sums up the successful franchisee as goal-oriented, tenacious, and a strong leader who is introspective and precise.
“You’ve got to set goals and work hard to attain them,” he says, “and that has to be demonstrated somewhere in your life. Most [home improvement] franchises are not one-man bands. They involve leadership of trade labor. You have to lead and want to lead,” Chase adds. “Great franchisees are people who look in the mirror and ask what they can do better and how.” —Jay Holtzman is a freelance writer based in Jamestown, R.I.