Shelly Sun
speaker
1,448 appearances
6 recordings
1 series
first heard Nov 2011
last heard Nov 2015
Shelly Sun’s voice in public audio — every appearance, attributed to the second.
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Appearances
have a franchisee that fails, I think that's hard for the entire organization because it feels like a failure.
Regardless of whether it was our failure or their failure to follow the model or use the model, it still is very hard on the employees to know that they lost one that they were rooting for and supporting.
And so I think there's a lot of hidden costs that go with having a franchisee fail that –
are really important to think about all of those costs.
So when you think about a $30,000 franchise fee compared to the hundreds and hundreds of thousands of dollars of lost morale and lost resources and opportunity cost of putting those resources elsewhere, I think it helps set things in perspective to make sure you're not making bad short-term decisions that really dramatically cause your long-term potential to be hampered.
Well, I mean, just thinking about even just the chapter that you just referenced, because I think that the success of a franchise system is all about the franchisees that are in the system.
And so I think one thing that took us a little while to figure out but that really serves us well today is
is building that franchise sales process to validate that your candidate will follow a system.
So at each stage of our sales process, we actually give homework.
And so if they won't follow the homework and do what we're asking them to do before they write a check, they likely won't do so after they write a check and become a franchisee.
So
really becomes a great way for us to add one more layer to a good interview of a franchise candidate to make sure they're going to be a good cultural fit
and ultimately have an opportunity to be successful.
Any franchisee who won't follow the model, A, I don't know why they become a franchisee in the first place, but it happens, to be able to have a way to spot check their ability to follow directions and follow the system and listen is important, I think, before they ever become your franchisee.
And then I think for a franchisor that really wants to succeed long term is really understanding how they make money.
I'm always amazed when I go to a conference and they ask about, you know,
what's the number one way that franchisors make money?
And 90% of the hands go up in the room and they're all yelling, franchise fees, franchise fees.
And really the right answer, which it always gets to that, is it's about royalties and that recurring revenue stream.
Well, the initial franchise fee you can get just for showing up and just signing an agreement.
Showing 1361–1380 of 1,448 · page 69 of 73
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