Even if you're acquainted with running a business, you may
not understand the ins and outs of franchising. So what's the
most important factor for success as a franchisee? Is it outside
education (in the form of university or International Franchise
Association programs), training within a particular system or
plain-old hands-on experience? Can franchise education reduce the
learning curve of a new franchisee?
Franchise Zone spoke with Lee Sanders, director of franchising
for Allied Domecq Quick Service Restaurants and member of
the board of directors for the University of St. Thomas Franchise
Institute, about whether franchising education is a significant
advantage . . . or a big waste of time.
Franchise Zone:How
important is education to success as a franchisee?
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Lee Sanders: To be an astute
buyer of a franchise, it's important to know what you're
buying and to understand the industry and business you're
getting into. Education is very important even once you're in
the business, because no matter what the category, the commercial
market is very competitive, and education is critical to keeping up
with competition.
What's more important to franchise success: a formal
outside education or hands-on experience?
Hands-on learning. But by that I mean hands-on learning through
the franchisor's formal process, not hands-on learning as in
just start to work and you'll figure it out someday.
Why hands-on?
Because a franchise is a business model. Most franchises are
business-format franchises-you're buying a format, a model, a
system, and you should use that exact system because that's
what's been proven to work. The only way you can get the exact
hands-on training and usage of that system is through the
franchisor's formal process pertaining to the exact business
you're buying.
Is it the franchisor's responsibility to provide
education?
That's something the franchisee should expect the franchisor
to provide, and it's one of the many, many points you should be
evaluating a franchisor on: "What depth and breadth of
training and services do I get from my franchisor?"
Do you think business degrees specializing in franchising are
worthwhile for franchisees?
I think they have a lot of merit for executives on the
franchisor's side or for executives who want to be franchisees.
But the standard B-school training doesn't really [cover]
franchising as an industry or a business model to any great degree.
And if you have a good, solid B-school background, but you
haven't really taken classes in franchising, you're still
not going to be particularly well educated about what a franchise
system can and can't do.
The University of St. Thomas franchise institute participates in
those B-school programs, and I see a great demand for
[franchise-specific classes]. Formal degrees in franchising
comprise a growth area of business education, because franchises
represent a high percentage of businesses in the United States.
Why are franchise education systems growing in
popularity?
Because franchising itself has grown so dramatically in
popularity. These systems mirror what commerce in the real world is
all about. Some colleges will slowly realize there is demand and
bring product to market, while some institutions on the leading
edge are already doing it.
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