Opinions expressed by BIZ Experiences contributors are their own.
Few events hold as much potential for the would-be businessowner as a franchise trade show. Innovative business systems andideas are presented in an exciting, festive setting.
But buying a franchise can be intimidating, especially in thedazzling atmosphere of a show packed with thousands of people. Toget the most out of this gathering, you must know what to expectand take the time to prepare.
Step 1: Find a good trade show. Watch for ads in thebusiness section of your local newspaper, or check businesspublications at the public library. Large shows drawing a widesampling of legitimate franchisors, such as BIZ ExperiencesMagazine's Small Business Expos, are typically held only inmajor metropolitan areas.
Step 2: Decide what you are shopping for. Know what typesof businesses interest you before you go. Do you love cars and wantan auto-related business? Do you enjoy customer contact and dreamof a retail store, restaurant or similar business that requiresface-to-face interaction?
What is your financial situation? Do you have the money andcredit to start a retail shop, or are you looking for a low-costinvestment such as a homebased business? Decide these things now,and once at the show, you can concentrate on franchises that fityour criteria.
Step 3: Plan your attack. After you arrive and registerat the show, sit down and take a few minutes to examine the list ofexhibitors. Mark the companies that interest you; as you stop bytheir booths, check them off to make sure you haven't missedanything.
Many franchise shows also hold seminars such as "How to Buya Franchise" and "Financing Your Franchise."Schedule time to attend the ones that sound useful. This may be themost valuable part of the show.
Step 4: Cover ground quickly. Talking too long withexhibitors can eat up all your time. To avoid wasting time withexhibitors whose programs are inappropriate or too expensive foryou, prepare a list of "knock-out" questions to eliminatethose companies quickly. If you have limited cash, for example,asking about the size of the investment or the financialqualifications will eliminate franchises you can't afford.
Remember, a franchise trade show is designed for initial contactonly, so don't expect to have any in-depth discussions. Leaveyour business card with franchisors so they can send you moreinformation.
Step 5: Ask the right questions. Aside from yourknock-out questions, other areas to cover include:
- What are your growth plans for the next three years?This gives you an idea of the franchisor's commitment toexpansion. If you get a vague answer or a bombastic statementsuggesting the company expects to take over the world, beforewarned.
- What does your training program involve? How long is itand where-in the field or at headquarters? What does it cover?Solid training is the mark of a good franchisor.
- What industry organizations do you belong to? Use thisinformation to investigate the franchise company's trackrecord.
- One controversial question to avoid: How much money can Iexpect to make with your business? Franchisors can'tpinpoint this; there are too many variables involved. They do,however, know how existing franchisees have fared, and somecompanies will give you this information if you ask for it.
Step 6. Follow up on the follow-up. Expect a follow-upcall or visit from franchise companies you showed serious interestin. This is your chance to explore the investment in-depth; askevery question that occurs to you. The franchisor will also providewritten information, such as marketing materials and the UniformFranchise Offering Circular (UFOC), a disclosure document thattells you much of what you need to know.
Be thorough and skeptical in evaluating the information thefranchisor provides. Don't just rely on the franchisor'sstatements; seek out other franchise owners and watch them inoperation. Talk to them, too. Are they happy with the business andthe franchisor? Was the training useful? Did they make asatisfactory living from the business last year? Would they makethe same investment knowing what they know now? The questions areendless, but other owners can provide the best evaluation of theinvestment you will find anywhere.
Step 7. Get professional advice. Finally, getprofessional help from a lawyer and an accountant in reviewing theinvestment, the UFOC, the contracts and other paperwork involved.Remember, no matter how many frachise companies assure you theirsis a simple business, a franchise investment is extremely complex.A penny spent here is a pound saved later.
It's a Wrap
Becoming self-employed can be scary, but it still beats beingunemployed-just ask David Cobleigh.
Cobleigh spent 17 years with BMW of North America, where heheaded the western regional credit department, before he was let goin December 1990. BMW wanted to centralize operations at itsheadquarters in upstate New Jersey, a move the California-basedCobleigh didn't want to make.
Today, he's back in the driver's seat, owner of an AIMMail Center franchise in San Dimas, California. But the road toentrepreneurship was long and bumpy.
Cobleigh, 57, was unable to find another job for more than fouryears, with one interviewer after another telling him his previoussalary was too high. He even took $6-an-hour temporary jobs incredit departments to prove he was willing to work for less money,but he still got no offers.
Then one interviewer finally told him what Cobleigh believed wasthe real reason he couldn't find work: He was over 50."The upsetting thing was that the guy saying it to me was myage," he says.
In 1993, Cobleigh attended an BIZ Experiences Magazine SmallBusiness Expo in Los Angeles, where he talked to representativesfrom AIM Mail Centers. He was intrigued by the concept, but stilluncertain about working for himself, so he decided to keep lookingfor a job. In 1994, however, Cobleigh returned to the show andexplored franchising more seriously.
"I knew I didn't want to get into food service.It's too hectic, with too many employees," says Cobleigh,explaining why he chose a postal service center franchise. "Ididn't want the hectic seven-days-a-week, 24-hours-a-day kindof thing. At this point in my life, I wanted somethinglow-key."
Of course, opening his franchise in May 1995 was anything but."There were boxes of merchandise everywhere; it was likeChristmas," he recalls. And that feeling of excitementhasn't faded: At press time, the holidays were approaching andCobleigh was revving up for his busiest season.
Though he's still getting used to the challenges of businessownership, Cobleigh is happy with his choice. "It's aconstant adjustment-the mental processes you go through arephenomenal-but I love it," he says. "I really feelthis was meant to be." -Holly Celeste Fisk
Game Plan
To a newcomer, it appears to be a sea of suits and booths. But afranchise trade show veteran recognizes the scene as a sea ofpossibilities, seeing below the surface to that moment when anexhibitor and attendee flirt with the idea of forming a long-termrelationship as franchisor and franchisee.
But what are franchisors looking for when they gaze out at thatocean of would-be franchisees? Irl Marshall has been anInternational Franchise Expo (IFE) exhibitor for four yearsrunning. Here, the president and CEO of commercial and residentialcleaning franchise Duraclean International Inc. reveals what helooks for in an attendee.
BIZ Experiences: Obviously, thousands of people pass yourbooth during a trade show. What initially catches your attentionabout a show attendee?
Irl Marshall: How they dress, what they say, how theypresent themselves, whether they make eye contact. If you want tocrystallize it, we're looking for people who have anall-consuming dream, who are committed to doing what'snecessary for success.
BIZ Experiences: How can you tell which show attendees mightbecome successful franchisees?
Marshall: Basically, it's a hunch. Because of ouryears of experience, we can sense which people are serious andmotivated, and we try to very quickly come to a conclusion as towhether we want to spend time with them.
BIZ Experiences: What is the most important question showattendees can ask?
Marshall: The one question I like to hear is "Whyshould I buy a Duraclean franchise?" That question quicklyopens a conversational dialogue, allowing the attendee to qualifywhether we're the type of franchise they're interestedin.
BIZ Experiences: What advice can you give show attendees sothey're not overwhelmed by the hundreds of companies exhibitingat the show?
Marshall: [Many attendees] think the more information youget, the better off you are, which really isn't true. You needto [be selective about the information you gather], which takessome planning.
You may start with dozens of different ideas, but when you gethome from the show, you should have a short list of six or sevendifferent companies that truly interest you. -JaneanChun
Andrew A. Caffey, a lawyer in the Washington, DC, area, isformer General Counsel of the International Franchise Associationand an internationally recognized specialist in franchiselaw.
