The Inside Scoop
Signing the Franchise Agreement
Besides loving the Cold Stone product, Frerich found the people
at the corporate office (which Frerich generally refers to as
"The Creamery") to be helpful and enthusiastic about the
product and the franchise opportu-nity as a whole. According to
Frerich, when she was in the thick of her due diligence that
summer, she found out Cold Stone was opening a flagship store in
New York City's Times Square. Believing this development would
greatly raise awareness of the concept in the Northeast, thereby
increasing the chance of success if she jumped onboard at that
time, she made her decision. Frerich recalls what a positive
experience it was working with the franchisor during her research
as well as after signing on. "The Creamery is very selective
in whom they award franchises to, so there was a bit of a process
there even once we decided on Cold Stone," she says.
"They had to make sure it was the right fit." Once Frerich had her stamp of approval from the franchisor, she
signed her franchise agreement and was off to choose a location,
sort out leasing agreements, and hire a contractor to build out her
shop. The franchisor was key in finding her Westfield, New Jersey,
location, assisting Frerich in the whole process. Working with
contractors was another new experience that she had to master in
the busy nine months between signing the franchise agreement and
opening the doors. "Every day was a learning experience,"
she says. "The nice thing about it was [that] there was always
someone at The Creamery to support me and help me through
it." January 2004: Attending Ice Cream UniversityIt was one thing to taste the ice cream in San Diego, but
Frerich was in a whole new world when she attended the one-two
punch of the Cold Stone annual franchisee convention in Las Vegas,
followed by two weeks at Ice Cream University in Scottsdale,
Arizona. "It was one of the greatest experiences throughout
this new adventure with Cold Stone," Frerich says. Content Continues Below
After a week spent soaking up the wisdom of veteran franchisees
in Las Vegas, Frerich immersed herself completely in the Cold Stone
way of life for the two-week course. "It was great talking to
people in Las Vegas, jotting down ideas and sharing my challenges
with my fellow franchisees-[in-training]." Her days were
filled with hands-on training, serving customers in a real store,
and classroom instruction-while she spent her evenings studying for
the final exam at the end of the course. After finishing with the
highest exam score and being named the Scoopa Cum Laude, Frerich
left the place bubbling with enthusiasm and with the camaraderie of
her fellow franchisees-in-training. "I was fired up,"
recalls Frerich. "I wanted to jump right in." Spring 2004: The Final StretchIt was crunch time for Frerich—the spring saw her building
out her store, setting up equipment, hiring a staff, and trying to
do it all while not pulling her hair out. "I was coming down
to the store to see what progress was being made, bringing coffee
and doughnuts to stay on the good side of the contractors,"
she says. "But there was a point where [I thought]
'I'm this 5-foot 2-inch female coming to a construction
site where I have to let them know they're working for me, and
that I have expectations and have to challenge [the contractors] if
they aren't being met." Not only was she learning how to manage contractors, Frerich was
also getting her building and business permits in order, another
element she was learning as she went. "I was hiring a crew
[then, too], so not only did I have a building, but I also had
personalities and energy to fill that building." Hiring and
training her staff was one of the biggest challenges prior to the
grand opening, she says. Fortunately, having had hands-on training
at Cold Stone's Ice Cream University, Frerich had experience to
draw on when training her crew during the roughly five days she had
with them before the grand opening. "I was very proud of my
crew because it is a lot to learn-and they did a great job. As soon
as the customers started to come in, they knew what had to be
done," she says. And if they didn't, Frerich was right
there beside them to work it out together. "That was the
biggest thing. They knew I wasn't asking them to do anything I,
myself, wouldn't be willing to do." | ONE STEP AT A TIME | Michael H. Seid offers aspiring entrepreneurs advice for each
stage of the franchising process: - CHOOSING
FRANCHISING: Your entire life will change. Make sure that
you like the business and would be proud to own that type of
business-and that your family supports you. Finally, says Seid,
"Be certain your economic expectations are
realistic."
- SIGNING THE
FRANCHISE AGREEMENT: Get a lawyer who specializes in
franchising as your advisor. Read the franchise agreement from
front to back-note the boilerplate, which will be important in the
event of a dispute. Says Seid, "Be prepared to walk away from
the franchise if the agreement does not meet your needs or reflect
the salesperson's promises."
- TRAINING AND
DEVELOPMENT: "Don't be passive during training. Ask
questions," says Seid. "You are paying for information
that enables you to open, manage and operate the franchise. If you
don't fully understand anything, ask the franchisor if you can
extend your training."
- THE FINAL
STRETCH: Find time to relax a bit, as it will probably be a
long while until your next free day. "While it may seem like
an inopportune time, [a break] will release some of the built-up
stress, allow you to focus on the future, and feel good about
yourself and what you will be accomplishing," says Seid.
- GRAND
OPENING: Disasters always happen, so during development,
make friends within your local franchise community. "The joy
of a great franchise system is that the other franchisees are not
just neighbors, they're family, and they will usually do
whatever it takes for you to succeed. That includes loaning you
replacements for the three staff that did not show up. Rely on the
franchise system, not just the franchisor."
- THE NEXT
STEP: Get all the information you can from the franchisor,
your lender and other multiunit franchisees before you make your
decision to grow. "Running two locations is no harder than
running one location. Running three locations is harder than
running 50. Ask anyone who has been through the growth cycle about
the pain of growing from two to three," says Seid. Get a
business advisor, franchise consultant or franchise lawyer, and
make sure you have a management team in place that can help you
grow.
Michael H. Seid is managing director of Michael H. Seid &
Associates, a West Hartford, Connecticut-based management
consulting firm specializing in the franchise industry. |
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