STRATEGY NO.

6:
CHANGE MINDSETS TO THAT
OF A “FRANCHISOR”

Presented by: Michel A. Lanogon

HOW SUCCESSFUL FRANCHISORS THINK
BY: JOSELITO G. SAMSON, CFE

KNOWLEDGE OF THEIR ABILITY TO SEE THE

PASSION FOR
STRENGTH AND BIG PICTURE.
WEAKNESSES TEACHING
KNOWLEDGE OF THEIR
STRENGTHS
AND WEAKNESSES:

These successful franchisors know and

then acknowledge that, indeed, they have
strengths and weaknesses. Fully knowing
what their core competence is, they are
open to delegating tasks in areas where
they are weak.
KNOWLEDGE OF THEIR
STRENGTHS
AND WEAKNESSES:

Franchising to them is a unique industry

that requires specific expertise to plan
out and build the right organizational
structures. At the outset, these
entrepreneurs understand the value of
getting things right.
PASSION FOR TEACHING:

Franchise entrepreneurs like to share their successes via

teaching or mentoring their franchisees. This trait is
critical to building a long-term and mutually satisfying
franchisor franchisee relationship that is based on trust,
exchange of ideas, openness to suggestions and yes,
replicating the successful business model. More than
the documents that bind franchisor to franchisee, a
harmonious relationship will ensure a fruitful and
profitable partnership, especially because franchisee
suggestions, when coursed through the franchising
system, are valuable listening posts for customer
feedback and preference.
ABILITY TO SEE THE
BIG PICTURE:

One of t he big ge st mi st a ke n no tio ns

th a t e n tre pre ne urs ha ve whe n
e mba rki ng int o fra nc hi si ng is t hink ing
a b out the bu si ne ss a s c osti ng ve ry
li tt le e ffort a nd mone y bu t re turni ng
huge p a yba c ks.
ABILITY TO SEE THE
BIG PICTURE:
On the contrary, franchising requires thorough study,
needing, at the very least, a Franchise Business Plan,
Franchise Agreement and a Franchise Operations
Manual. Setting up a Franchise System is meticulous
and will require additional investment. A potential
Franchisor must assess his current company structure,
cost structures, operations, training capabilities and
supply chain to determine if it can handle additional
operating units generated from selling franchises.
ABILITY TO SEE THE
BIG PICTURE:

As for the "huge payback", this will not be

realized on the first, or even, on the second
year of the franchise offering. During these
times, you are still developing efficiencies as a
franchisor, putting in place your franchise
support systems and are still learning the ropes
of managing the system. What you will get
during these stages of development is an
increase in the number of branches/stores as
well as sales volume generated from newly
opened franchised units.
ABILITY TO SEE THE
BIG PICTURE:

Franchisors should also give careful

thought about selecting and awarding
franchises. A franchise term is usually from
three to eight years, it is crucial that you
get the "right franchisee" since they will be
your "partner" in growth. Therefore, it is in
your best interest to ensure that they too
experience profitability and success.
Eventually, they will be your best-selling
proposition.
ABILITY TO SEE THE
BIG PICTURE:

Franc hising is an effective strategy for

compa nie s looking to expand their
business. But having the right mindset
as a Franc hisor will dictate whether or
not one will be a success or a failure in
fra nchising. An honest assessment of
one's mindse t and objective will spell
the diffe renc e between failure and
succ ess.
THANK YOU FOR
LISTENING!!!