IRS and Eighty Five Percent discussed on Up Or Out with Connie


It was optional for people to do this upgrade. Yeah, I was wondering about that if it was it was mandated or if it was something that people had a choice to deal. So of course they wanted more people to do it so they keep with the brand of the franchise? Yeah. And most franchise systems, there's a revolving period of time of mandatory. Okay. Because not everyone is coming at the same time, right? So in less you inspire, it's hard to get everyone to to do everything at once will they came to me to get improve attendance, so I call them and talk to franchisees in. I hear the same thing I hear from everyone not making as much money as like it's expensive to go. They'll. Tell me everything I missed. So I don't really need to go. And I hear these things very commonly. Okay. By the way I can tell you system after system after system court cord a graphically there's a word. I'm not saying it right definitively will get the profitability of those people that attend conferences as a franchisee versus those don't are two and three times higher than those adult. I done the math because that's part of what I do when I when I talked to my clients is, okay, let's look at the group that go. Let's look at the group that Goco who are growing faster. It's always those. They're going to have the most promptly it's always those go because they are. They were engaged in the process, their more gauging the thereby end till the wizard aren't gone. They're the ones that like, oh, I could do it myself. I don't agree with what they're doing. So I mean, they're clear. That's what a breakdown is a meeting that any business. I mean, if you don't have that clear. Made people could agree to disagree you have to have you have to have that. In there is not then that's that's a whole nother issue. But yeah. So when we when we finish the story because I think this makes an important point. So they had already designed their new restaurant design will not loved it. Okay. How much input did you get from your franchisees? None zero. And and I said to them, you know, when I looked at their meetings, I said, you do these meetings, all you're doing is talking at them. Yes, I said, so what have we change this meeting and instead of you selling them this one design, what if you build three different designs and ask them to critique it and give you recommendations or who? And if what, if the call of action to come to the meeting wasn't come to the meeting because it's a normal meeting, but come to the meeting because we're designing the new prototype for the future, and we want your input or and they ended up with eighty five percent attendance. They could have had more, but the hotel they ran in the two nearby sold out. Okay. And what ended up happening is they ended up with the design that was totally different than the design? They had picked guy and they realized that the input. Actually made a better design will and had more people sign up to be pro types than they thought we're going to buy in the first place all because of engagement. Right. And and that simple change. So part of the issue in franchising is this issue engagement. I wanna talk about the other thing that people need to look at. So the first thing I talked about is utilize that statistic of what percentage of the franchisees attend. That to me is very critical. Obviously, if you look at a franchise or will you know if your franchise or you should be paying attention to what percentage attend and if it's they're not coming, you should be nervous Seraphin. So. So for you, what you do sit where if somebody was considering buying franchise that information, those assistance they is that public information, is that something that you talk to. The potential future ranch is in say, you know what? Let's take a look at which franchise you're looking at and see where their involvement is and see how the franchisees both interacting seeing where you know the engagement is going on back and forth. So is that something that you provide to them terms of if aren't as IRS? What I do in my consulting businesses, I help franchisors create better relationships with their franchisees through engagement guy, help them get more people to come to their conferences. I helped them make their conferences more interactive. I helped them with all of their communication within the system. I helped them create too. I flows I, I helped him with regional networking groups. I helped them do planning and strategic planning by involving their franchisees. That's what I do. I don't get very clear on that. So aren't listeners weren't confused. I'm giving advice for someone by because I know you have listeners. That would consider buying franchise. Absolutely. And I encourage people to buy franchises. I just encourage people to buy the twenty percents that are really good. And so what's that? What's the second part? You said there was something else they should be on the lookout for that's the size of the franchise system. So I have a saying in business that says that there's a point in many businesses where you're too big to be small and too small to be big. All okay. So when the franchise deci of franchise, a person decides the franchise, their business and they're super small, they're five, ten fifteen units. They can be pretty successful. Everyone knows everyone. It's not that hard to operate. They're selling franchises. They're making a little money, right? But that next level when they moved from there to trying to get to fifty to a hundred is a very difficult point for them. Okay. First off. Most small franchisors are dependent on the franchise fee to make a profit running after sell franchises, or they won't make money. There's not enough money from royalties coming in to be standalone profitable, so that franchise or is focusing on selling franchises more than they are running the franchise business because they have to sell franchises to make payroll. Okay. So what I say to somebody looking at the smaller systems in a smaller system by the way can be fantastic if it's the right people is isn't well funded. And when you're looking at the franchise discovery document, which is a public document that every franchise or is required by law to share with perspective like you wanna look at the financial statement and you want to know, is it a positive statement? Meaning they got a positive net

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