Connie Fife, Evan and Jeff Five discussed on Up Or Out with Connie


Ladies all around the world lesson up where looking for you, the time has come to be unstoppable together. The danger of executive women is worrying were not enough obsessed with perfection failing to perform your in the right place. It's now time to be unstoppable together with Connie five. She was the director of the United States chamber of commerce and C E O of the girl scouts, sit down squat down or lie down. It's time for up or out all business with Connie five, your unstoppable diva and care of the five group helping women in leadership achieve excellence and be unstoppable together. Hey, it's Connie fife in your year with upper out with Connie and Jeff. So this is Jeff five, and he is now a co host of the show, and he already seen him around couple of times, but were back here again today, and we're interviewing Evan tackle now, Evan, he, he's so awesome. I've asked him to come back again because he is returning guests on the show, but Evan Hackel he is a CEO of both engaged consulting which is in leading management consulting firm, which is focused on franchising relationships and toward old training, which is a leading trading company. In what else franchising. Evan has started the Radovan franchise businesses himself. He is bought a bankrupt franchise system with seven hundred million in sales, and within four years was able to turn that around enjoy two billion dollar business. Now, everyone has also been a franchisee. And between all of his thirty five years in franchising, he started work with and has been involved with over seventy five different franchise businesses. So he knows it all we knows the pros and cons. He's here to help you understand what to look for when you're buying a franchise, what to avoid. So Evan, welcome to the show, a terrific debater pledge yourself looks shepherd in the franchising and we were talking and franchising seems to be really a, I guess, an interesting way for people to start a business because there's so many entrepreneurs now. And I mean a couple of years ago, they were saying by twenty eighteen sixty percent of people were going to be entrepreneurs. I don't think that number right now, but they are definitely looking at that number to continue to craze and most entrepreneurs were legal. They start looking at franchises. So what what's what's the pros and cons of that. Know? Obviously someone in the industry. Chazal. Having said that, and I think branch ising is incredible business model about eighty percent of all franchising businesses out there are to be avoided. And there are just a lot of bag. A lot of bad players. A lot of bad systems. Am. So a lot of people ask me well as franchising a great business model or is it a bad business model? Oh, am I answer to that is yes, it can be a great business model and it could be a bad business model. And what I mean by that is that when it's done right, and when the franchise or in the franchisee are aligned, they're not fighting. They're working together when the franchise or is providing the right kind of support. The franchisee is getting tremendous value. They're getting the Power of the brand. They're getting massive advertising much more than they could do on their own. They're getting training systems are getting operation systems all while worth paying any of the royalties in advertising fees. If they have they're getting more for what they're paying than than they would if they were business by themselves. The problem with franchising is that a lot of franchise overs. Are not good at working with their franchisees. All the franchise would themselves merge. Ahead on the big bridge and and there are some people by the way that are not good franchisees. I should on the table too, because if you're a franchise, if you decide to be a franchisee, you're saying to yourself, I am willing to to support a or is decision even when sometimes I don't agree. And the reason it always they're not always there. No, that's harder of the problem with franchise. It. Her some franchise systems don't do a great job of vetting franchisees, which we can talk more about later. And what happens is, you know, think about the boat where everyone's rolling. All right. Bulk goes really fast when everyone's rowing in the same direction when people all rowing in different directions about goes in circles. And that's the same thing that happens in franchising. Okay. So you can sit back as a business person and you will not agree with everything a franchise or dust you want. We'll Balat at the same token. If you don't support those initiatives than the whole system's gonna get hurt, you're going to get hurt. Everyone's going to get hurt because it's at boat going in a circle because everyone's rolling in different directions. When you join a franchise system, you wanna make sure that you fundamentally agree with their mission, their vision culture, what they're doing. Because if you don't support the franchise or fully, the system gets hurt, and when the system gets hurt, it hurts everybody. And that's the difference between great franchise systems where franchisees are making a lot of money and franchise ORs are doing well and franchise systems where there's slow grown a lot of franchisees or leaving or because they can't get their supply. Port. And what happens is this is very interesting. When you think about great businesses, one of the things great businesses are able to do is are able to change there are able to adapt to the world as things happen. When a franchise system is dysfunctional and the franchisees are not listening and not supportive. Then the franchisor starts to move to mediocrity while we can't get our franchisees to do this little thing, how could we get them to do this big thing? Right? And that puts everyone's business in jeopardy. Stabbed me they're familiar with fantasizes. What is the percentage percentage franchises said do become successful with? Okay, so that's a very arbitrary thing. Okay, so what I, what I say to people and this is my personal opinion is about eighty percent of franchise systems out there. I would not personally invest it. Wow, that's a number you a very high number. Having said that the predominance of the ones that I would invest in are the are the bigger players more season players. So maybe the percentage of franchises is not, you know, when you look at the total I'm talking about and maybe let me take a few seconds here and give you some some key. Things that people need to look for in that franchise system. Okay. The number one statistic that I can determine to determine whether or not you're healthy franchise system is one that no one else ever looks at, and that is what percentage of the franchisees actually attend their national convention. So there are franchise systems that will be in the fifteen twenty percent range, right? But the good systems are in the eighty percent or plus and the reason why this statistic. And if you're looking to buy a franchise, you want to ask this question is so important is because it's a definition of engagement. Okay. If they care about the system, they're going to take time to come to the national meeting if they're disengaged, upset, frustrated, don't care that much. Then they're not going to spend the money and they're not gonna go. So that wants to Tissot will tell you a tremendous amount about the system because to make changes and to make adjustments, they need to have people engage. They need wants to engage in, engage with is involvement. So the franchise or needs to involve their franchisees, listen to them because they're doing it every day and they are in their thoughts and input can make the system better. Similarly, the franchisee has to be engaged. They have to be listening to the franchise or paying attention to the message and take responsibility for doing their part or who at the biggest part of doing that part's going to going to the national meeting. So I had a client who came to me big national brand at the knocking to mention the brand will be out shortly. Her can, and they felt they needed to revamp the look of their businesses in the food service businesses. And that they were outdated and they want to change the look of the business. Whereas a pizza place, I'm not going to say what I can. I'm going to give any clues. The only had twenty percent of their franchisees coming to the meeting. So they came to me to help them get more. They wanted to improve their attendance because their franchise requirement, it

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