Franchising How To’s with David Essuman
My name is David Essuman; I am a real estate investor and run a few successful franchises in Idaho and Utah. I also offer coaching to clients about franchising and investing in real estate. I coach because I love seeing people becoming successful and living out their dreams, so I prepared this quick guide to show you how easy it is to own and profit from your own franchise.
Have you ever wondered just who owns that Taco Bell or 7–11 down the street? Well, it could easily be you; with a little bit of cash and the right location and team, you can run a popular franchise of your own, becoming a millionaire in the process. Read on to learn more about how owning and running a successful franchise is not out of reach.
What is a Franchise?
Many large successful businesses decide to license their storefront, recipes, and practices that made them successful to people who want to get ahead rather than expand the company. So they allow people to buy into the company for a fee and a percentage of the profits. Some franchises can cost as little as a few thousand dollars upfront, while more famous names like KFC are quite a bit more.
How to Choose a Franchise
When I am hunting for franchises, I usually search for what has shown consistent year-over-year growth for the last five years. You can find all the information you need here, just click on a franchise you like, and you will find charts, fees, financials, and more.
I usually go for businesses that have startup fees up to $350,000. This is the amount I am currently comfortable risking in this type of business; your risk profile might be different from mine, but considering your risk is important to keep in mind.
My other preferences require that the businesses be service-oriented, have a small buildout footprint (they do not require a lot of land or equipment, i.e., additional upfront costs), and that they align with my lifestyle. So, I typically look for a franchise with all-around low costs that allow me to hire other people to take care of the day-to-day operations.
Best Ways to Hire and Retain Talent
Lifestyle is essential, right? Working in one store every day is just not feasible with my many other endeavors. Also, there are great people out there searching for jobs with amazing bosses like you or me. When hiring, if my employees do not have any leads, I go to Zip Recruiter or Indeed. I post simple and straightforward ads for talent so they know exactly what they are getting into. Most importantly, I schedule video calls with potential employees so I can get a good feel of how they will fare at my store.
Remote Franchise Ownership and Management
Let’s say there are enough Cinnabon stores in your area, but you still want to buy into the franchise. Of course, you can; you will just need to manage it remotely. This may seem like a larger-than-life task, but it can be done.
After choosing a great manager and team that shares the company’s vision, allow the employees the autonomy to be leaders in their respective positions. In other words, resist micromanaging and try to keep check-ins down to once a week.
You can hold weekly check-ins or meetings over Zoom or make a special trip to the store. During your brief weekly meetings, go over things that need to be done, the business plan, any concerns, and areas of excellence. The last part helps employees feel connected to you even though you may be on the other side of the country.
Getting in Touch
That’s it; buying into and running a franchise is a lot easier than most people would think. If you would like to sign up for a coaching session about the franchise business or investing in real estate, contact me through DavidEssuman.com.