Draft Day in the Franchising World
Today is Draft Day – It’s practically a National pastime, and I think to most die-hard NFL fans, it is. Twitter is all abuzz with the predictions of who’s going to which team. What round will this person get picked up? What if this person doesn’t get drafted until a later round, what does that mean for his career? There is a lot of research and statistical data behind each prediction – and I’ll tell you what, it’s fascinating!
In franchising, we have our own “Draft Day”. Usually, this part of the process follows after you’ve attended a Discovery Day – or, in our case, a Campus Visit. This visit allows you to meet with the franchisor one last time before you make the ultimate decision of whether or not to go forward with purchasing the franchise.
For every candidate, Draft Day is a big step and a very important one. Before you get to Draft Day, you need to complete your due diligence. Here are few things to consider before being drafted:
Research the Franchise – Ask questions of current and former franchisees. Ask them how they feel about the franchisor? Do they feel they receive good support? Do they feel they have a voice in the direction of the company? Do they regret their decision to purchase or are they looking to purchase an additional territory? Talking to someone besides the Franchise Development Specialist will open your eyes to the opportunity before you.
Visit their Facilities – Go and see the operations for yourself. Getting an inside look can tell you a lot about an organization. Are they based out of a trailer in the middle of nowhere or are they operating out of a state of the art office building? This will reveal the financial health of the business.
Meet the GM – Or, in this case the CEO. Meeting the head honcho will give you much better insight into the heart of the organization as this is the person that sets the tone for the team. What are their goals for the franchise – long term and short term? What do they feel is most important for their franchisees? How do team members feel about their CEO? Is this someone you trust and believe in?
Not completing thorough due diligence and choosing the wrong team can cost you. When it comes time to purchase a franchise ask yourself, are you joining the next Super Bowl team or are you on a team bound for a high first-round picks in next year’s draft?