Making the Right Decision When Buying an IT Franchise: When the Honeymoon Is Over

by Chuck Lennon

Everyone wants to meet Mr. or Mrs. Right. Unfortunately too many people make the mistake of getting swept off their feet by a pretty face or a charming personality, and end up with someone who’s not quite right for them. When I first met my wife Stephanie, friends and family alike were surprised that I fell for such a quiet woman, since I had previously been attracted to those who were the “life of the party.” I realized that I had been searching for the wrong person all along. What I really wanted — and needed — was a woman of substance, one who would be there for me through all of life’s ups and downs.

At this point you may be wondering if you’re reading the right document. After all, aren’t I supposed to be talking about buying an IT franchise?

I Thee Wed

I believe that finding the right IT franchise opportunity is a lot like finding the right spouse. After all, your franchisor is essentially a business partner that you’ll need to count on for many years to come, in both good times and bad. Just as it’s easy to fall for that pretty face or charming personality, it’s also easy to be swayed by a flashy ad campaign or a good sales pitch.

Franchise consultant Joel Libava believes that while “investing in one’s own franchise is a lower risk proposition than investing in a pure start-up,” he does caution that “buying the current ‘hot’ franchise is not the way to become a positive franchise success statistic, nor is skipping the most important part of the franchise purchase
process—the research.” In other words, you need to engage in a fair amount of due diligence to ensure that you’re “tying the knot” with a franchisor that’s going to be there for you when the “honeymoon” is over—after you’ve opened your doors for business, day in and day out, for many years to come.

Just as you should spend a significant amount of time getting to know someone who might someday be your spouse, you should also spend significant time getting to know your potential IT franchise partner. Rather than jumping in head first, you should take some time getting to know the corporate team that runs the company, as well as the systems and support these people provide to help franchisees like you hit the ground running and achieve success for the long term.

For Better, For Worse

If you’re like many people who are considering buying an IT franchise, you’re coming from a corporate IT job, or you’ve been an entrepreneur in a different industry. Either way, you’ll benefit most from a franchisor that provides a comprehensive foundation upon which to build your new IT business—as well as continued support for as long as you own the franchise—in the following areas: 

• Financial management, including budgeting, cash flow projections and P&L (profit and loss) analyses
• Employee management, including recruitment, screening, hiring and termination
• Operations management, helping you establish good operational practices from the start and reinforcing those practices as you build your business
• Technology management, to ensure that you’ll always have the latest technology solutions and product offerings to deliver the most value to your customers
• Sales and marketing management to help you acquire customers quickly and keep them coming back

One other important aspect you’ll need in your future franchise partner is solid franchisee support. When you need answers quickly—for instance, when you’re encountering challenges in the office or when your employees need technical guidance in the field—you need a franchise partner whose support team answers your calls immediately and has the answers you need right away. Above all, your franchisor should always be focused on your continued success, helping you through difficult times, and celebrating with you during the good times.

For Richer, For Poorer

One of the main reasons for buying a franchise, as opposed to starting a business from scratch, involves the availability of proven sales and marketing systems to help you attract new customers and grow your business. Leveraging the power of an established and successful franchise network can result in a powerful competitive advantage for you in a crowded consumer marketplace. The franchisor you partner with should have systems in place to help you maintain and deliver on a brand promise.

Sales and marketing go hand in hand, and in today’s world it’s all about integration across multiple media—online and offline, print and electronic. The sales and marketing support you receive should start with a recognizable business identity system, along with a variety of marketing collateral to establish your professionalism and keep your business name at the top of potential customers’ minds. Also important is a website that encompasses both a national and local presence, allowing you to establish a competitive differentiation in your marketplace.

You should only consider franchise companies that are actively engaged in helping their franchisees attract prospects, qualify leads and turn those leads into customers. This is accomplished through such tactics as planned direct marketing campaigns and search engine optimization strategies that include nationally negotiated keyword-purchasing programs for you to take advantage of in your market area. Another important piece of the marketing mix is a customer newsletter, developed by your franchisor but customizable for your specific business, that features topical technology and business articles pertinent to today’s business professionals. A monthly publication such as this helps to position you as the local IT expert and keeps your company top of mind when businesses need IT assistance.

In Sickness or In Health

The IT industry is ever-changing, with new updates, new programs and new tools appearing every time you turn around. If you’re busy running a successful IT business, when do you have time to keep up with the latest changes and trend — not only in technology, but in sales and marketing as well?

In most marriages, each spouse takes on different chores to keep the household running. As an IT service provider, your job is to help your customers focus on their core businesses and not on their IT issues. By the same token, your franchise partner’s job is to take the burden of tracking business, technology and marketing/sales trends off your shoulders so you can focus on operating and growing your business while still maintaining your competitive edge.

At the very least, your franchisor should be an active member of the International Franchise Association (IFA), an organization that promotes best practices in the industry. Better still is to align yourself with a franchise company that is actively helping to advance the industry you’re about to join. For example, a company whose executives hold leadership positions in key technology organizations and participate in industry events demonstrates its commitment to supporting the interests of its franchisees. That commitment is further evident in companies whose executives conduct their own ongoing research into the latest in information technology products and services, and maintains strategic partnerships with leading companies, to keep franchise owners like you equipped with the most up-to-date tools in the marketplace.

Your New Extended Family

When people get married, more likely than not, they’ll acquire a new extended family — the in-laws, the siblings, even their spouse’s friends — who will play a part in their life together. Likewise, when you buy an IT franchise, your fellow franchisees should be a part of your life.

Before you say “I do” to a franchise company, talk to current franchise owners as part of your due diligence. At the very least, find out how happy those owners are by reviewing franchisee satisfaction and buyer experience scores published by such organizations as the Franchise Business Review and AllBusiness.com. Learning that the majority of franchisees regret their decision to join that particular franchise network should serve as a red flag warning to you. On the other hand, if the majority of owners you talk to extol the virtues of their franchisor and the efforts that company puts forth to help them grow their businesses, you’ll know you’re making a sound business decision.

But this should not be the only time you talk to other owners. A franchise company that is committed to building a strong franchise network provides opportunities for franchisees to meet for the purpose of sharing ideas and best practices, and to help and learn from one another.

From This Day Forward

A franchise can be a great way to increase your likelihood of achieving success. But not all franchise management companies are created equal. Believing everything you hear from the person trying to sell you a franchise is not the best way to find out if that franchise management company possesses the same values as you.
If you are seriously considering a franchise business as a long-term commitment—and not just something to do until a new job opportunity comes along—make sure you choose a partner who is a leader in the franchise industry as well as a leader in the IT industry. From the day you start your new business until 10, 20 or 30 years down the road when you’re ready to pass the business down to your children or to sell it to someone else, you’ll want a franchisor that has a solid history of helping its franchisees succeed.

Just as you would spend time getting to know your potential spouse, spend time getting to know your potential franchise partner. Use some of the ideas in this article to build your own checklist, and really research the company before making a commitment. It will be time well spent, and could help you find the franchise partner that truly is Mr. Right.

Chuck Lennon
President
TeamLogic IT

Learn more about TeamLogic IT at topfranchises.franchisebusinessreview.com.
 

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