hi I’m Evan Carmichael welcome to another edition of ask Evan today I’m
another edition of ask Evan today I’m
another edition of ask Evan today I’m answering the question from one of my
answering the question from one of my
answering the question from one of my readers Bashir who wrote in with a
readers Bashir who wrote in with a
readers Bashir who wrote in with a question about franchising so he said
question about franchising so he said
question about franchising so he said your personal opinion regards to
your personal opinion regards to
your personal opinion regards to franchising as a tool to grow as well as
franchising as a tool to grow as well as
franchising as a tool to grow as well as franchise and advantages and risks so
franchise and advantages and risks so
franchise and advantages and risks so thanks for the question Bashir
thanks for the question Bashir
thanks for the question Bashir franchising can be a great way to grow
franchising can be a great way to grow
franchising can be a great way to grow your business it really depends on the
your business it really depends on the
your business it really depends on the company that you’re running franchising
company that you’re running franchising
company that you’re running franchising is a great way to grow quickly because
is a great way to grow quickly because
is a great way to grow quickly because you’re not using your own money to
you’re not using your own money to
you’re not using your own money to expand you’re using your franchisees who
expand you’re using your franchisees who
expand you’re using your franchisees who have to invest capital to buy your
have to invest capital to buy your
have to invest capital to buy your franchise and it’s to be a quick way to
franchise and it’s to be a quick way to
franchise and it’s to be a quick way to rapidly grow at your business some of
rapidly grow at your business some of
rapidly grow at your business some of the things to think about with
the things to think about with
the things to think about with franchising first you have to have a
franchising first you have to have a
franchising first you have to have a really successful location yourself and
really successful location yourself and
really successful location yourself and a lot of people try to franchise too
a lot of people try to franchise too
a lot of people try to franchise too early they franchise with just an idea
early they franchise with just an idea
early they franchise with just an idea and they haven’t really proven it
and they haven’t really proven it
and they haven’t really proven it themselves too much and then if you
themselves too much and then if you
themselves too much and then if you haven’t built a successful business
haven’t built a successful business
haven’t built a successful business yourself with your first location it’s
yourself with your first location it’s
yourself with your first location it’s gonna be really hard to have other
gonna be really hard to have other
gonna be really hard to have other people be successful because they’re
people be successful because they’re
people be successful because they’re gonna be copying your model and if your
gonna be copying your model and if your
gonna be copying your model and if your model isn’t bulletproof and works
model isn’t bulletproof and works
model isn’t bulletproof and works amazingly well then it’s not going to
amazingly well then it’s not going to
amazingly well then it’s not going to work for somebody else and you have to
work for somebody else and you have to
work for somebody else and you have to remember that the franchisees are
remember that the franchisees are
remember that the franchisees are probably not going to be as successful
probably not going to be as successful
probably not going to be as successful as you are so whatever your first
as you are so whatever your first
as you are so whatever your first location is that’s gonna be probably the
location is that’s gonna be probably the
location is that’s gonna be probably the most successful location in the system
most successful location in the system
most successful location in the system until you maybe move into bigger markets
until you maybe move into bigger markets
until you maybe move into bigger markets but it has to work and a lot of
but it has to work and a lot of
but it has to work and a lot of entrepreneurs is franchise
entrepreneurs is franchise
entrepreneurs is franchise too soon so make sure you have one
too soon so make sure you have one
too soon so make sure you have one really successful location you can bring
really successful location you can bring
really successful location you can bring people to you can show them how it works
people to you can show them how it works
people to you can show them how it works and it’s an easy way to give an
and it’s an easy way to give an
and it’s an easy way to give an incentive for somebody to want to look
incentive for somebody to want to look
incentive for somebody to want to look at that one location say hey I can do
at that one location say hey I can do
at that one location say hey I can do this and I can make a lot of money as
this and I can make a lot of money as
this and I can make a lot of money as well so it has to be highly profitable
well so it has to be highly profitable
well so it has to be highly profitable before you think about expansion the
before you think about expansion the
before you think about expansion the next thing to think about is you have to
next thing to think about is you have to
next thing to think about is you have to really have everything documented so
really have everything documented so
really have everything documented so it’s a lot of work on your part you got
it’s a lot of work on your part you got
it’s a lot of work on your part you got to figure out for each new location
to figure out for each new location
to figure out for each new location here’s exactly what you have to do to be
here’s exactly what you have to do to be
here’s exactly what you have to do to be successful and again remember that the
successful and again remember that the
successful and again remember that the franchisees are not going to do
franchisees are not going to do
franchisees are not going to do everything exactly as you say unless you
everything exactly as you say unless you
everything exactly as you say unless you specifically lay it out so they’re not
specifically lay it out so they’re not
specifically lay it out so they’re not going to think the same way as you think
going to think the same way as you think
going to think the same way as you think so you have to really be specific as to
so you have to really be specific as to
so you have to really be specific as to what they have to do and do that
what they have to do and do that
what they have to do and do that every step and so it’s a lot of work
every step and so it’s a lot of work
every step and so it’s a lot of work creating the paperwork to have all that
creating the paperwork to have all that
creating the paperwork to have all that put together and then the final thing to
put together and then the final thing to
put together and then the final thing to think about with franchising is a lot of
think about with franchising is a lot of
think about with franchising is a lot of entrepreneurs who go that route you find
entrepreneurs who go that route you find
entrepreneurs who go that route you find that most of your time is spent no
that most of your time is spent no
that most of your time is spent no longer running the business but managing
longer running the business but managing
longer running the business but managing the franchisees and you have to do a
the franchisees and you have to do a
the franchisees and you have to do a good job at the beginning to qualify
good job at the beginning to qualify
good job at the beginning to qualify your franchisees and make sure bringing
your franchisees and make sure bringing
your franchisees and make sure bringing the right people on board so you’re not
the right people on board so you’re not
the right people on board so you’re not just bringing somebody on because they
just bringing somebody on because they
just bringing somebody on because they have the money to do it you want
have the money to do it you want
have the money to do it you want somebody who you’ve done interviews with
somebody who you’ve done interviews with
somebody who you’ve done interviews with and you feel they’re in the right stage
and you feel they’re in the right stage
and you feel they’re in the right stage of life to do it they have the right
of life to do it they have the right
of life to do it they have the right experience to do it they’re willing to
experience to do it they’re willing to
experience to do it they’re willing to listen to your advice on how to keep
listen to your advice on how to keep
listen to your advice on how to keep going and if you get the wrong person
going and if you get the wrong person
going and if you get the wrong person you’re gonna spend too much of your time
you’re gonna spend too much of your time
you’re gonna spend too much of your time just managing that person and they’re
just managing that person and they’re
just managing that person and they’re not gonna see success and you’re not
not gonna see success and you’re not
not gonna see success and you’re not going to see success you’re both just
going to see success you’re both just
going to see success you’re both just gonna have a miserable time so you have
gonna have a miserable time so you have
gonna have a miserable time so you have to think do you want to be in that
to think do you want to be in that
to think do you want to be in that business of just managing franchisees
business of just managing franchisees
business of just managing franchisees because that’s what you’re gonna end up
because that’s what you’re gonna end up
because that’s what you’re gonna end up doing right so you have your one
doing right so you have your one
doing right so you have your one location and you might even open a few
location and you might even open a few
location and you might even open a few more yourself and most of your time is
more yourself and most of your time is
more yourself and most of your time is gonna be spent managing your franchisees
gonna be spent managing your franchisees
gonna be spent managing your franchisees and a lot of entrepreneur friends of
and a lot of entrepreneur friends of
and a lot of entrepreneur friends of mine didn’t expect that and they ended
mine didn’t expect that and they ended
mine didn’t expect that and they ended up either closing down a lot of the
up either closing down a lot of the
up either closing down a lot of the franchisees or taking them over again so
franchisees or taking them over again so
franchisees or taking them over again so they could just be the entrepreneur and
they could just be the entrepreneur and
they could just be the entrepreneur and not have to worry about other people
not have to worry about other people
not have to worry about other people owning operating it so the the biggest
owning operating it so the the biggest
owning operating it so the the biggest Pro is that you are able to expand very
Pro is that you are able to expand very
Pro is that you are able to expand very quickly using other people’s money you
quickly using other people’s money you
quickly using other people’s money you don’t need to go out and raise capital
don’t need to go out and raise capital
don’t need to go out and raise capital you don’t have the money yourself
you don’t have the money yourself
you don’t have the money yourself necessarily yet because you’re you’re
necessarily yet because you’re you’re
necessarily yet because you’re you’re trying to go through the your profits
trying to go through the your profits
trying to go through the your profits originally so using other people’s money
originally so using other people’s money
originally so using other people’s money to quickly expand the business you get
to quickly expand the business you get
to quickly expand the business you get more branding that the cons are you know
more branding that the cons are you know
more branding that the cons are you know the you have to manage all these
the you have to manage all these
the you have to manage all these franchisees ongoing nobody’s gonna run
franchisees ongoing nobody’s gonna run
franchisees ongoing nobody’s gonna run it as as good as you do and yeah you
it as as good as you do and yeah you
it as as good as you do and yeah you basically are running this organization
basically are running this organization
basically are running this organization that you don’t have full control of
that you don’t have full control of
that you don’t have full control of anymore so a lot of people don’t like
anymore so a lot of people don’t like
anymore so a lot of people don’t like the franchising model I think it’s a
the franchising model I think it’s a
the franchising model I think it’s a tracted from the beginning but once they
tracted from the beginning but once they
tracted from the beginning but once they get into it they thought they’re into
get into it they thought they’re into
get into it they thought they’re into kind of completely different world I
kind of completely different world I
kind of completely different world I would I would suggest if you’re still
would I would suggest if you’re still
would I would suggest if you’re still interested in doing it going to talk to
interested in doing it going to talk to
interested in doing it going to talk to people who have done the franchises and
people who have done the franchises and
people who have done the franchises and I talk to franchisees and I try to talk
I talk to franchisees and I try to talk
I talk to franchisees and I try to talk to the franchise owners as well don’t go
to the franchise owners as well don’t go
to the franchise owners as well don’t go up and talk to somebody from McDonald’s
up and talk to somebody from McDonald’s
up and talk to somebody from McDonald’s but find a smaller franchisee somebody
but find a smaller franchisee somebody
but find a smaller franchisee somebody who might be in a
who might be in a
who might be in a similar type of business to what you’re
similar type of business to what you’re
similar type of business to what you’re trying to do and just get their
trying to do and just get their
trying to do and just get their experiences and thoughts and see if
experiences and thoughts and see if
experiences and thoughts and see if that’s something that you still want to
that’s something that you still want to
that’s something that you still want to do or not so hopefully that helped
do or not so hopefully that helped
do or not so hopefully that helped thanks for the question it’s it’s always
thanks for the question it’s it’s always
thanks for the question it’s it’s always good to try to get as much knowledge as
good to try to get as much knowledge as
good to try to get as much knowledge as you can about something before you jump
you can about something before you jump
you can about something before you jump into it if you guys like the video who
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it makes gonna do more for you and if you have a comment about this video or
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you have a comment about this video or you have a question for your own
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you have a question for your own business I’d love to hear from you if
business I’d love to hear from you if
business I’d love to hear from you if you want to leave it in the comment
you want to leave it in the comment
you want to leave it in the comment section below so thank you and I’ll see
section below so thank you and I’ll see
section below so thank you and I’ll see you on the next episode
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