Tag: College of Business
Solid Connections are Essential in Franchising

Solid Connections are Essential in Franchising

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By Kathleen Gosser, Ph.D.

Learning is a continuous process, and can come from many different avenues in franchising. Your franchisor will provide you with the information you need for your brand and formal education can provide the business acumen needed to run a business. But there are also other resources for learning and growth in the franchising industry.

Major Franchising Associations

In today’s online world, there are so many resources to guide you in your franchising adventure.

The International Franchising Association (IFA) produces a robust website, with so much information in general and directly from franchisees. Connecting with the IFA is a great source of education. Further, becoming a member gains you access to experts across the industry, who you can learn from as well.

Peer Support

In my experience, franchisees are always willing to help other franchisees. Some franchise organizations have associations that are specifically organized for franchisees to help one another.

Kentucky Fried Chicken (KFC), for example, has associations across the country. KFC’s founder, Colonel Harland Sanders, encouraged the franchisees to form their associations to help each other. These associations provide educational programming, mentoring and other forms of support.

Business School Community

Becoming a part of a university business school community also provides valuable growth opportunities. Often times, there is more learning among the students than even from the course materials or the professors. Lifelong connections can be made in this setting. Business school education focused on franchising—such as the Franchise Management Certificate program from the College of Business at the University of Louisville—can provide critical, practical information on running a franchise business.

Being an avid learner is a key to success as a franchisee. With technology driving so many advancements in our world, staying in touch with fellow franchisees and continuing your own learning will make a difference in your business.

For more information on the Franchise Management Certificate from the College of Business at the University of Louisville visit uofl.me/2WCGeMI. 

Dr. Kathleen Gosser (PhD, University of Louisville) is an experienced leader in the franchise industry and a passionate educator. In her 30 year career in the franchise industry, she has enjoyed numerous roles, including leadership of customer satisfaction programs, operations measurement, employee recognition, training and team member engagement efforts. She also had direct P&L accountability as the Region Coach of 10 restaurants in Louisville, Kentucky.

This blog post was originally published on Fransocial.
Business Knowledge Equals Business Results In Franchising

Business Knowledge Equals Business Results In Franchising

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By Kathleen Gosser, Ph.D.

Buying a franchise provides you with the business format including products and branding; however, your franchisor expects that you have the business acumen it takes to run a great franchise, take necessary risks, follow all legalities and maximize sales and profits.

Is all of that business knowledge given to you with your franchise agreement? Sadly, no it is not.

It is up to you as the franchisee to have that knowledge to run a great business. The current marketplace is highly competitive and without deep knowledge of basic business skills, it will be difficult to succeed. 

What business knowledge should you have to supplement your franchisor support? 

Know the Legal Landscape

The first step is to ensure you understand all of the legal fabric of franchising. This includes a thorough knowledge of the Federal Disclosure Document and the franchise agreement. While ensuring an attorney evaluates all documents, it is important that you as the franchisee understand what these documents mean as this is your investment and livelihood that could be at risk.

Understand Financials

You also need to have a strong understanding of financials. This includes knowing what it takes to make a return on your investment. You’ll need to understand where to get the investment dollars you need in the beginning.

Then, managing a Profit and Loss statement is a critical role for every franchisee. Knowing all the manageable expenses in the P&L and how to minimize costs while maximizing profits AND taking care of your employees and customers is a skill that takes time. Knowing how to leverage labor costs and manage cost of goods sold are two areas of the P&L that will make the most difference in your profitability. Before you embark on a franchise adventure, having a clear foundation of knowledge in this area is imperative.

The Knowledge to Succeed

These are just two areas that require extensive business familiarity. While you could learn this in the marketplace, it will take a great deal of time. A solid business school education will provide the springboard you need to success quickly.

For more information on the program, visit uofl.me/2E7vHTf.

Dr. Kathleen Gosser (PhD, University of Louisville) is an experienced leader in the franchise industry and a passionate educator. In her 30 year career in the franchise industry, she has enjoyed numerous roles, including leadership of customer satisfaction programs, operations measurement, employee recognition, training and team member engagement efforts. She also had direct P&L accountability as the Region Coach of 10 restaurants in Louisville, Kentucky.

This blog post was originally published on Fransocial.
Franchisee Leadership Makes A Difference

Franchisee Leadership Makes A Difference

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By Kathleen Gosser, Ph.D.

In order to ensure consistency, your franchisor will have established standards and procedures for their franchise locations. The goal of the franchisor is to guarantee uniformity so that customers have the same experience at each location. To ensure compliance with these standards, your franchisor will most likely have regular audits.

However, in order to excel in today’s world, a franchisee should have his/her own leadership footprint in the operations—going above and beyond the minimum standards set by the franchisor.

By definition, franchising means you are provided with a business plan that has a proven track record of results. Your franchisor will provide you with this business model, which will guide you in getting your franchise up and running. 

What is Leadership Footprint?

It is your mark as a franchisee on your business. You own the culture of your establishments. Though your franchisor will have goals and a vision, you should too. You should share your values with your teams so they understand and recognize your leadership.

You also should have your own strategic vision of where you want to take your franchise in the future. 

Having an annual operating plan as well as a 3- or 5-year vision is critical for success. Your franchisor will have goals for the entire system, but only you can know what you expect in your own operation. 

Defining Your Strategy

Understanding how to write a mission statement, vision statement and strategic plans is essential for success. You may be able to survive a year or two, but to be truly successful, you need to define the roadmap for where you are headed. This would include goals around sales, profits, people and growth. 

This is the type of information you won’t necessarily learn from your franchisor—and yet another reason why additional education from an accredited b-school is critical in your journey. With a program like the Franchise Management Certificate from the College of Business at the University of Louisville, you can learn the necessary skills to create a strategic plan as well as learn proven leadership theories.

For more information on the program, visit uofl.me/2E7vHTf.

Dr. Kathleen Gosser (PhD, University of Louisville) is an experienced leader in the franchise industry and a passionate educator. In her 30 year career in the franchise industry, she has enjoyed numerous roles, including leadership of customer satisfaction programs, operations measurement, employee recognition, training and team member engagement efforts. She also had direct P&L accountability as the Region Coach of 10 restaurants in Louisville, Kentucky.

This blog post was originally published on Fransocial.

franchise, business
What You Won’t Learn From Your Franchisor

What You Won’t Learn From Your Franchisor

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By Kathleen Gosser, Ph.D.

So, you have entered into a franchise agreement with a well-established and successful franchisor. You have an entrepreneurial spirit, capital and drive. You believe that you are on your way to infinite success due to the guidance and support you will receive. You are all set… or are you? 

A signed franchise agreement does not guarantee that your franchisor will teach you all you need to be a successful business owner. While you will receive a proven business model, there are many facets to running a business that you may not receive from your franchisor.

Department of Labor Impact on Franchisee Training

In 2016, the Department of Labor (DOL) provided insight on the interpretation of “Joint Employer.” The Wage and Hour Division of the DOL views joint employment in the franchise world to mean an individual worker is an employee of both the franchisee and franchisor.

This law has significant impact on the support, training and guidance a franchisor will provide.

There are provisions to make the final determination that include directing or controlling the work performed, employment conditions (hiring and firing), repetitive work (very often present in franchises) and the work is performed on the premises. In light of this interpretation, many franchisors are backing off the support they provide in terms of Human Resource guidance and advanced leadership skills training. 

An Education Gap in Franchising

There are other constraints in place that prohibit franchisors from providing all the information needed to make strategic decisions as a franchisee. Gaps in franchisee education include how to ensure you remain profitable, including managing labor and cost of goods sold, or how to fund your franchise and growth is not always readily available information. For example, while pricing recommendations can be made, the franchisee has the right to price however he/she chooses in the marketplace—thus an area where guidance could be extremely beneficial.

The Business School Proposition

How do franchisees find the information they need to be successful? Aside from gaining and learning from hands-on experience, they have to search for it. There is a great deal of information online; however, it takes some digging. There are courses available through the IFA as well. 

But nothing matches the education that can be earned from a business school.

Coupling a great franchise with sound business principles is a recipe for success. Business schools impart the knowledge you need to better understand the higher level strategic needs as well as the franchisor business model.

To meet this education need, the AACSB-accredited College of Business at the University of Louisville recently launched an innovative, one-of-a-kind Franchise Management Certificate, with the first cohort starting coursework in February 2019.

For more information on the program, visit uofl.me/2z6cmhL.

Dr. Kathleen Gosser (PhD, University of Louisville) is an experienced leader in the franchise industry and a passionate educator. In her 30 year career in the franchise industry, she has enjoyed numerous roles, including leadership of customer satisfaction programs, operations measurement, employee recognition, training and team member engagement efforts. She also had direct P&L accountability as the Region Coach of 10 restaurants in Louisville, Kentucky.

This blog post was originally published on Fransocial.

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