Keys To Franchise Success by Konstantinos Sarris-Tzamtzis

Now, my name is Konstantinos Sarris-Tzamtzis but you can call me Konstantinos. I come from Athens and I have named my presentation “Keys to franchise success”. First, let me introduce myself and the company. My company is FC&D. This is an acronym of Franchise Consultancy and Development. It is one of the oldest firms specialized in consultancy and development in franchise and licensing in Hellas, the Balkans, Cyprus and South-East Europe. The initiation of activities started in 1989 and the main office is in Athens. FC&D serves franchisors, franchisees as well as licensors and licensees. We have developed more than 95 brands with 1 548 units nationally and internationally, (you can find our clientele list on our website www.fcd.gr ). We cooperate with major consultants worldwide, with brokers and network developers. And finally, FC&D is a member of the Greek Franchise Association.

So, let’s start the presentation. To understand and follow the presentation you need to know that the aspect of the presentation, the position of the presentation is the one of the franchisee; not the men or the women who sell the franchise but from the franchisee’s point of view.

First of all it is necessary to make sure that you have enough money. A lot of problems arise because we think that something is a fantastic idea and we have the possibility to make a lot of money. But there is the possibility that we might not have money, even 1 lev. So it is necessary to determine how much you have to invest, how much you are willing to risk and how much you will need to live on for at least 12 months. For me and for my partners it is necessary to share our experience. It is necessary to advise you to think that if something happens and you don’t have a single customer you need to have money for approximately 12 months.

Secondly, make sure you understand the initial investment that is required. A lot of people think it is necessary to have 10 000lv for example or more. But it is not that easy and you need more money than that.

Third one: make a careful and rational decision about buying the franchise. The franchise decision is necessary to be done after a serious consideration and serious thought. Listen to your attorney, accountant and consultant! And do not be pressured by the franchise selling person!

Next one: follow the system. Franchisees often get their business up and running and then begin to change it. They add or modify existing products, advertising, hours, services, and even the quality and consistency they are licensed to deliver. This violates the franchise agreement and puts you in jeopardy of having your franchise terminated. By following the system you preserve the brand and protect your investment and that of your fellow franchisees.

Next one: do not neglect your family and friends. Why? Be prepared to work long hours but also make sure to budget time for your family and friends. We should never forget about the family and we never forget about the friends. Do not forget to acknowledge the sacrifices your family makes! Of course, allow your family and friends share your new life!

Next one: be an enthusiastic franchisee or a master franchisee. Why? Because the success of every business is linked to the level of enthusiasm you bring to the job. For example, suppose you buy a system: a single unit or a master license. It is necessary to be passionate about this, it is necessary to express your feelings wherever you are, whatever you are talking about because it is necessary to believe. So it is necessary to be enthusiastic about it.

Next one: enthusiasm also brings a level of excitement and energy to the operation that everyone can feel including your customers and staff. Do not forget about your staff: you, your family, your friends and also your staff. Let your staff in on the fun; acknowledge their good work with recognition or a raise.

Next one: recruit the best and treat them with respect. Do not forget that you are the one, the single master licensee or franchisee but you are not working alone. You need more people with you, so recruit the best and treat them with respect. Why? Because good help is hard to find and it is essential. To keep the good staff you have hired you need to rotate routine and boring jobs. Be fare, do not show favoritism and work with your staff to prepare the schedule! Treat your employees with respect and do not allow them to be disrespectful to any other employee! Keep employees informed about new marketing and other promotions. Don’t hide anything from your employees. Tell them everything, and always the truth. Remove hassles - ask employees, which procedures are working and which aren’t. Make their work days challenging and provide timely performance review and wage salary increases. The most important is the last one: the raise. Acknowledgement is good for everyone but if it comes together with a salary raise it is fantastic, isn’t it? OK, so don’t forget about that and it might be a small one, it is not necessary to add an enormous amount of money, but even a small one it is perfect.

Teach your employees: in franchising training should be continuous as employees are your frontline. Training classes are a good way to show your employees that they matter to you. Get all the training you can from the franchisor. Don’t be afraid to ask the franchisor for a second, or third or continuous training. Why? Because this is the job of the franchisor: to train you, to train your staff so don’t be afraid to ask them. Regularly train and retrain all of your employees. May be you think, OK I have trained the same thing four times, why is it necessary to train it once more? My experience started in 1989 and every time I learned something new. Even though it might be the same headline as the previous one you still learn something new. Hold refresher and advanced classes on a regular basis. Alert your franchisor when you need additional training. Take advantage of every training opportunity whether it is offered by the franchisor or by local schools, trade associations and other sources. For me training is the most important aspect and parameter of franchising.

Let’s talk about customers. Give customers great service. In our days the problem is not to find a good product, you can find the product anywhere you like, even on internet. Go to internet, make the search and I think you will find a fantastic number of opportunities. So what is the most important thing? - The service to the customer. The most important thing you can do is to get everyone smile. Let the customer know you are happy they have chosen your business. Once again: let the customer know you are happy they have chosen your business. Do you understand what this means: that you are happy with this business. It is not necessary to wake up early in the morning to take the bus, to get to the workplace; what is necessary is to express yourself.

Get involved with the community, always with the local community. Customers like to shop in places that support them. I suggest you sponsor a Little League team, support a civic or youth group. Give tours of your business for school groups. Why? Because young people go to schools and may be when they grow up they will be your new customers. So this is necessary in order for the community to know your brand, to know your service, to know your product, to know your system. Set up a kiosk at community events. You can take the idea from this exhibition, take the advertising materials and go to the community event and use them there.

Another aspect: stay in touch with you franchisor and also with other franchisees. Stay in touch, don’t stay behind and maintain communication. You have mobile phones, you have internet, you have Skype. You have everything you need in order to communicate with him or her. So stay in communication. Letters, newsletters, emails, phone calls, faxes, training classes, regional meetings, conferences and conventions: always follow these events. Also, communicate with other franchisees, I suggest you to do so. Even in the pre-contract period or as soon as after you sign a contract. Why? Because before you sign a contract you will know a lot of things from the experience of the old franchisees. You will get experience from them, it might be a single experience but it is an experience you never knew before. So it is necessary for you to have all the information. The time we live now is described by only one word: information, nothing else. As I have already told you, you have the possibility to buy a lot of things. So the point is not only to find the right product or service, but also to find the right way to sell it. Who is the best salesman? Can you imagine the best salesman or the best salesman you have already seen? The right salesman trains himself or herself and this is a person who is enthusiastic about their job.

One of the most important things when considering a franchise is the details. What I mean is you always work hard from morning till night but you never see what the results of your job, of your effort are in general. Success is in the pennies, if you watch your Euros they will take care of themselves. Minimize cost and maximize sales. It is very easy for us to say so, but some of us, may be the majority of us forget to minimize the cost and maximize the sales. Nowadays, when there is crisis worldwide, we came to understand that it is necessary to minimize the cost, but now it is too late if we are not well prepared. Watch out for shrinkage, this is the merchandise that is missing or unaccounted for. A lot of merchandise, a high volume of merchandise stays in the shop or in the warehouse and no one can take care of it. Work hard every day and choose your time away from the franchise wisely.