Franchising your pizzeria concept may seem like the ultimate prize, but don’t make a move until you’ve
asked yourself these five key questions. By Sean Brauser
STARTING A FRANCHISE
Romeo’s Pizza ( romeospizza.com) started fran- chising about 10 years ago and currently has 35 stores. There have been many ups and downs over
the past decade. As with anything, the grass is always
greener on the other side. Some days I’ve wished that all
of the stores were franchised, and some days I’ve wished
that none of them were!
Many restaurateurs see franchising as the ultimate
prize. In some cases, they may be right. With franchising, you can grow quickly for less money—and with
less responsibility—than you can by opening restaurants
yourself. But you will have to maneuver around many
obstacles before you achieve success. In this article, we’ll
look at five key questions you’ll need to ask yourself in
order to make a better informed decision about franchising your pizzeria concept.
1 WHAT IS FRANCHISING? Before you adopt the franchise model, you’ll need to
understand what franchising really is. First, it is a financing model. It’s a way to use other people’s money to grow
your brand and income. After all, if you had all of the
money in the world and every store was generating cash
flow, why would you even consider franchising? But most
restaurateurs do not have that kind of money. So, to gain
momentum quickly, they sell franchises.
Which leads me to the second point: Franchising is selling. Selling is a totally different skill set from running a
restaurant. Professional salespeople spend a lot of time
cultivating leads, making calls, doing follow-ups and
closing the sale. Selling franchises requires all of those
skills. Do you have those skills, or will you need to hire
someone and bring them into your company?
Since franchising is selling, you will need a sales system.
How will you cultivate leads? Will you use a lead source,
such as Franchise Marketing Systems? How much will
you charge for the franchise, and how much in royalties
will you need to take to maintain a supportive environment? These are all questions related to franchise sales.
Without a system in place, you will waste a lot of time
and end up frustrated.
Franchising is selling.
Selling is a totally different
skill set from running a
salespeople spend a lot
of time cultivating leads,
making calls, doing follow-ups and closing the sale.