Home » Franchisors

When I recently completed the FTC Sales Compliance Training, I started thinking about the Franchisors I have met and this led me to think about the great concepts that should become franchises.

Sure, there is a lot of paperwork, regulation and expense involved, but Ed Hackbarth didn’t let that stop him when he decided to franchise the Del Taco Chain.

I know a lot about Ed. That’s because I was one of his first employees and though it may have been illegal to hire a 7th-grade student and friend of his son, Ed didn’t pay us to cut and grate cheese. He simply fed us tacos.

Throughout the years Ed and I have stayed close and he has taught me a lot about business. One item, in particular, is his theory about employees.

“If you don’t take care of your employees your labor costs will be through the roof.” He once told me.

“I was the only one to give them a paid vacation plus we paid our employees more than any other fast food franchise.” Ed said.

It’s about employee retention and we discussed the costs of hiring, training and retaining employees.

Today, if you walk in the Del Taco in Barstow, California, you will probably find Ed mopping the restroom floor or wiping tables and people can’t believe that the founder of Del Taco can be found doing manual labor.
His response, “Someone’s got to do it.”

(Below is a pic of Ed and me at his 80th birthday party and celebrating 50 years since starting Del Taco)

You may not be the Ed Hackbarth type with mopping the floors as part of your daily duties, but if you are going to franchise your concept, you should have the same work ethic.

What you are going to need to franchise your concept

You are going to need a Federally compliant Franchise Disclosure Document. Most stated are not registration states, so you won’t need to worry unless you reside in one of those states. We will provide you with a single unit FDD that will get you off the ground.

Why are we different?

Or should I ask, have you ever read an FDD? Attorneys who know nothing about your business compile an FDD. Most are templates written just to get by the necessary compliance issues, but you have to remember that you are writing this FDD for potential Franchisees and they will need to be able to read and understand the nature of your business.

Our attorney is a businessman and he consults with the Franchise Brokers Association, which I am a member of. A Franchise Broker also need to understand your FDD so they in turn can discuss it with potential business partners of yours. Be careful who you choose to preform this work.

You are going to need a Sales & Growth Plan and this will include competition comparisons on both the regional and National level. It will also determine your area of exclusivity.

Why are we different?

We compile information about your competition from alliances with different research groups. This is not brain surgery, but the large Franchisor Consultant will want you to think so and their prices reflect this thinking. Why do you need a National Growth plan when you are starting out Regionally? Why do you need some consultant to fly to your office-on your dime-to sit with you and compile information about your business? You don’t and doing so only drives up the costs. Save your money.

You are going to need a Franchisor Compliant Website. This gives you credibility and shows off your brand. We show you how this should be marketed and we tell you which forms you are going to need in order to present your concept to a potential candidate. We also provide you with the necessary disclaimers, which you will need to be legally compliant.

Why are we different?

We give you a template showing what good franchisors are already doing. Why invent the wheel when it already rolls and works just fine? A website gives you credibility and it is for information purposes. You are not going to sell franchisees with a website alone, so don’t let some consultant fly across the country and tell you about the intricacies of building a website. You need basic information with a little design and graphics work to make it look modern. Save your money.

You are going to need a Starter Operational Manual. I wish I knew how to supercharge a racecar to make it go faster, but I simply do not have the knowledge. Do you? Probably not, so why would you let a Franchisor Consultant talk you into writing your operational Manual when nobody knows your business like you do? Yes, this is tedious work, but you have to be able to convey your thoughts about running your business so others can follow your lead. A consultant will never understand your business like you do so don’t let them increase the fees you need to open your business.

Why are we different?

We give you a template to help you get started then after you write the Operational Manual we review it. The work involved will only help you to uncover missteps and issues that will arise during the course of developing your franchise business. Don’t spend money to let someone else take control of your business. Save your money.

You will need a Strategy Session. This will be done online. We don’t send an attorney across state lines and bill you a huge fee for this work because it’s a waste of time and a loss of your valuable resource-cash. Our success depends on yours and if you do not understand your own FDD then you are going to be like hundreds of other Franchisors who have no idea what their own FDD includes.

Why are we different?

After we write an FDD specific to your business, not a Master Copy that is cut and pasted for any type of business, we spend about six hours with you explaining everything it contains. This is critical to your success because when a potential franchisee asks questions and you don’t know what’s in your FDD, they will be skeptical and will often look elsewhere. Save your money.

You are going to need people to help you promote and sell your franchise concept. This is done with our partnership through the Franchise Brokers Association with a membership of over 200 Brokers and consultants who have gone through comprehensive training. I will represent you to this organization and I will be your cheerleader and sponsor. Together we will find franchisees and together we will grow your business. I will offer continuing support with my sales experience.

Why we are different?

It doesn’t do you any good to have a Franchise concept without a support staff to bring in qualified people who will grow with you. If you think just anybody will be a good fit, you are mistaken and a qualified Franchisee Broker will match the right people with your dream. We do this through the use of scientific testing that is proven and makes for happy people.

Managing your costs will be the most important decision when starting a franchise business. I have seen too many people run out of money and be forced to stop before they have a chance to really launch their dream. Don’t be one of them because there will be unexpected costs and emergencies that you will deal with, but why not get the biggest bang for your money from qualified people who are invested in your success?

Chuck@franchisebrokersinc.com 714 735-7225