Article
Franchisees talk do-over: What they wish they knew before opening their franchise
Managing employees is a major aspect that new franchisees often don’t realize or prepare for when signing a franchise agreement. That, and the fact that running your own shop means dozens of daily decisions, are big eye openers.
June 20, 2017 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
Amal Agha knew about business and finance when she opened her first franchise, a Rita's Water Ice in New Jersey. What she and her partner/husband didn't know was how much of being a franchisee involves managing people, and hiring and retaining employees proved to be the biggest challenge.
"We wish we had had more training on staffing up and being prepared on what employees will put you through," Agha shared during a panel session, "What I wish I knew before buying a franchise," at the International Franchise Expo held last week at the Jacob K. Javits Conference Center in New York City.
Agha, who along with her husband also runs a Philly Pretzel Factory store right next to their Rita's store in Eatontown, was one of four panelists sharing insight on unexpected challenges in operating a franchise at the annual conference.
Another lesson learned, she shared, was the need to do onsite inspections when buying established franchises.
"I wish we had done a full inspection of what was in the store and if things were working properly. Things needed repair, so I would have done a thorough check on everything."
Workforce management was also cited as a prime challenge by Louise McKeown, who operates two Camp Bow Wow franchises (one in New Year and another in Philadelphia), as well as Allison Wilson-Maher, who operates a Primrose School franchise in Philadelphia, and Kelsey Healy, who operates a Frutta Bowls in Marlboro, New Jersey.
Finding and hiring dependable employees, and dealing with the daily management responsibilities can be a formidable task, said the panelists, as owners often have to jump in when an employee fails to show up or calls in sick or just disappears from the job.
"I was pretty well equipped [to run her business]," shared Wilson-Maher, noting she was well versed in the Primrose philosophy given she opened her school five years after buying a franchise and attended three weeks of corporate training and spent one week working at a school as well as attending Primrose events and conferences.
"Primrose talks you through everything, lots of training, to be prepared as much as you can, but nothing prepares you for all the things, making decisions day to day," she said.
"Staffing is always an issue, and I would have been more mentally prepared for it," she added.
While Healy worked in every aspect of Frutta Bowls' corporate stores, from the back end to the counter and even managed a store for a few weeks, there was a learning curve and unexpected lessons. She is the first franchisee of the new concept which plans to open 100 franchises this year.
For her the big eye opener came during the store location decision making process.
"I wish I knew negotiating better, as a 22-year-old I was not experienced, and so I wish I had pushed more in that aspect," she said.
For McKeown staffing has been the "toughest thing." Her decision to operate the pet boarding businesses came from her own quest to find boarding for her pets, and she made a transition from working in a corporate role to running her own business.
"It's very eye opening as you're hiring, firing, working a 24-hour-a-day business. When people don't show up, you have to show up," she said. "It can make or break you. If you have a great staff, you're golden." One key to success she has learned is to consistently motivate and engage with her staff to "keep them working with me."
Yet, when asked if they would not have made the franchise deal if they could go back in time, none of the four said yes.
All, despite the many lessons learned and challenges, are very happy to be running their own business.
"Every day is unpredictable, and it can be hard to get a routine, but you get used to the chaos," said Agha with a laugh.
McKeown, noting she deals with disgruntled customers given many people view pets as "children," advised potential franchisees to consider that an owner has to be present in their business at all times.
"If you can't do that, don't go into it [a customer facing business]."
Looking for more great insight and expert discussion on franchising? Attend the upcoming Restaurant Franchising & Innovation Summit taking place July 18-20 in London. This event will feature innovative chains and their strategies in growth, from menu innovation and beyond. The Restaurant Franchising & Innovation Summit will help franchisors be more progressive in many areas of their business to attract both investors and customers.
About Judy Mottl
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