A Franchise is Granted, Not Sold!
We have said it many times before but an article that appeared in a New Zealand newspaper the other day brings the topic to the fore once again. It is up to prospective franchisees to convince the franchisor that they are worthy of being granted a franchise, not the other way round.
The gist of the article is that no responsible franchisor will “sell” a franchise to an applicant, no matter how much money he/she can put up. Rather, the onus is on the prospect to convince the franchisor that he/she makes a good fit. Because some people tend to forget that, we bring you edited extracts from the article mentioned above. (Publication details: nzherald.co.nz – 04h00 AM Friday June 11, 2010).
When All Black great Eric Rush wanted to become a franchisee of New World, a supermarket chain based in New Zealand, he asked former team mate Robin Brooke for advice. Brooke told him that becoming a New World franchisee is almost as tough as becoming an All Black all over again. “It’s a tough thing – not everybody gets there” he warned.
Said Rush, “I think the attraction for me is, I like a bit of competition and they said it’s pretty tough to get in – not many get through (the evaluation process). And that was just like a red flag to a bull.
“Knowing that you can’t just walk in off the street and buy a supermarket, it doesn’t matter how much money you’ve got, which is the way I like it. It’s a lot of the same principles as being an All Black. It’s a different club to get involved with. It’s a great bunch of guys.”
It takes up to 3-1/2 years to qualify to own a New World store. When asked how his job of three weeks was going for him, Rush said with a broad grin, “Good, good, I had four hours off last night.”
According to Rush, during the initial period 18-hour days are the norm. “It’s expected of you, it’s a very rigid training regime” he says and continues “the hard work starts only now. It’s a bit like making the All Blacks. You do all that stuff to get into the team and actually that’s when it starts because people are watching you, your performance is judged all the time.”
On balance, it must be worth it because Brooke is in the process of selling the New World store he owned and operated for the past four years, only to acquire a bigger one in another town.