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Joe Barbat on Integrity In Franchising

May 20th, 2011 Comments off

Joe Barbat CEO of Wireless ToyzPartnership Integrity

Partnerships can pose another type of legal problem. Many new entrepreneurs take on partners to get started. This is a great way to share costs. But be sure to take time before you sign the franchise agreement to protect you and your partner:

  • Put the partnership in writing
  • Define each person‟s role in writing
  • Establish buy/sell valuation rights and terms in writing in case of a future dispute

Do you notice a theme? Put it in writing. This may require an attorney‟s help, but it will be time and money well spent. Another thing to write down is your goals. It helps to have a shared vision of the company and expected growth.

Franchisee story: Two young cousins wanted to open a retail business together. They convinced an uncle to put up the funds for their “partnership.” Since they were family, the uncle and his nephews agreed to the deal with nothing more than a handshake. At first, everyone was very excited. Everything started off great, the cousins even moved in together. Then they got mad at each other — so mad that one moved out in the middle of the night. Then the other got mad and locked the door to the business. After a few days of hoping they would work things out, the franchisor declared them in default of the Franchise Agreement. There were no winners here.

Management Integrity

More important is the integrity of the franchise brand’s management team. Management integrity is important when things don’t go exactly as planned. You can learn about a management‟s integrity by asking about previous difficult situations and how the management team reacted to solve each situation. If you can‟t get answers from the franchisor, ask other franchisees for their insight. This will enable you to understand how the management will solve future challenges and problems that will arise.

About Joe Barbat

As a leader in the wireless retail industry, Joe Barbat founded Wireless Toyz in 1995 and grew the organization to a multi-location national franchise.  Now Joe Barbat focuses on providing quality information and advice for franchise candidates that are interested in creating a better life through owning a franchise.  Questions, thoughts, and comments about your franchise search experience are fielded by visiting the Ask Joe Barbat section of the website.

Joe Barbat “Don’t Skip These Steps” Franchise Tips

May 20th, 2011 Comments off

Joe Barbat CEO of Wireless ToyzBased on my personal experience when working with franchise candidates, I strongly recommend that when you are researching franchise brands and opportunities, DO NOT SKIP THESE STEPS:

  1. Ask the franchisor’s representative specific questions about the business.  This means that you should create a list of the questions that are important to you and take your time when contacting the franchisor to ensure that your questions are answered thoroughly.
  2. Thoroughly read the Franchise Disclosure Document (The FDD is the information that the franchisor is legally obligated to provide prior to the signing of a franchise agreement. The structure is dictated by the Federal Trade Commission to ensure uniformity.)
  3. Interview current franchisees (They are listed in the FDD) regarding their experience with the franchisor.
  4. Interview former franchisees (They are listed in the FDD) regarding their experience with the franchisor.
  5. Visit as many current franchise locations as possible and conduct an on-site assessment to see if the day to day operations are a fit for your lifestyle.
  6. Read articles in business publications about the franchise, the franchisor and its franchisees.
  7. If the franchise is publicly traded, review the annual report.
  8. Check to see if the franchise has been reviewed by a credible third party, such as Entrepreneur Magazine’s Franchise 500, FranSurvey, Franchise Business Review or Inc Magazine’s Inc 500, and compare the results.

You want to make an informed business decision about the business that you are intending to purchase. Your research will help you calculate your opportunity cost: the risk you take with your investment capital, your time, and your potential to derive an income from another job or business. Not only that, you want to secure the value of your assets for the time in the future when you may wish to sell the business.

About Joe Barbat

As a leader in the wireless retail industry, Joe Barbat founded Wireless Toyz in 1995 and grew the organization to a multi-location national franchise.  Now Joe Barbat focuses on providing quality information and advice for franchise candidates that are interested in creating a better life through owning a franchise.  Questions, thoughts, and comments about your franchise search experience are fielded by visiting the Ask Joe Barbat section of the website.

Joe Barbat Franchise Financing Worksheet

May 13th, 2011 Comments off

Joe Barbat CEO of Wireless ToyzOne of the main reasons that business start-ups fail is that they are under-capitalized.  This reason is also true regarding the failure of new franchise businesses.

Franchisors genuineness want you to succeed.  Because of this reason they are going to inquire about your personal financial history and resources during the evaluation process. Most will require some form of proof in this area.

The thought of having your personal financial history evaluated by another party may discomforting.  Don’t allow this one step in the franchise process to cause you to lose your momentum.  Very much like rappelling past a jagged portion of a mountain, the process of evaluating and communicating openly about financial matters for a new business will become very common for you over time. One critical aspect to keep in mind regarding the financial evaluation process is that its simply information and not a judgment about or against you personally.

Consider downloading and utilizing the Joe Barbat Planning For Success-Adequate Franchise Capital as you begin to explore the required funding for your new business.

About Joe Barbat

As a leader in the wireless retail industry, Joe Barbat founded Wireless Toyz in 1995 and grew the organization to a multi-location national franchise.  Now Joe Barbat focuses on providing quality information and advice for franchise candidates that are interested in creating a better life through owning a franchise.  Questions, thoughts, and comments about your franchise search experience are fielded by visiting the Ask Joe Barbat section of the website.

Joe Barbat Recommends Asking These Questions To A Franchisor

May 4th, 2011 Comments off

Joe Barbat CEO of Wireless ToyzQuite often, franchise candidate’s can become nervous at the thought of asking the wrong questions to a franchisor.  When it comes to finding the right franchise for you, the wrong questions simply do not exist.

Below are some of the most important questions that you can ask a franchisor or a representative from the Franchise during your evaluation process:

  1. How does the franchisor build brand recognition nationally?
  2. How does the franchisor build brand recognition in local markets?
  3. How does the franchisor provide operations training?
  4. How does the franchise provide on-going franchisee support?
  5. Describe your franchise culture?
  6. How does the franchisor facilitate relationships?
  7. How does the franchisor encourage independence with its franchisees?
  8. How are conflicts resolved?
  9. What technologies does the franchisor support or recommend to help franchisees succeed?
  10. What technical skills do franchisees need to be considered as a candidate for the franchise?

In addition to these questions, using the Franchisee Field Manual can also come in handy for finding and using the right techniques for evaluation a franchise opportunity.

About Joe Barbat

As a leader in the wireless retail industry, Joe Barbat founded Wireless Toyz in 1995 and grew the organization to a multi-location national franchise.  Now Joe Barbat focuses on providing quality information and advice for franchise candidates that are interested in creating a better life through owning a franchise.  Questions, thoughts, and comments about your franchise search experience are fielded by visiting the Ask Joe Barbat section of the website.

Are You The Ideal Franchisee?

April 14th, 2011 No comments

Joe Barbat CEO of Wireless ToyzMany franchisors have an “Ideal Franchisee” profile.  This is the set of characteristics that their most successful franchisees possess, and, a criterion by which they use to evaluate future franchisees.

You can create a spreadsheet like the example here comparing your traits to a franchisor’s “Ideal Franchisee.”

List the Ideal Candidate Characteristics for Each Franchisor (EXAMPLE).

Successful Franchisee TraitsHighlight where your personal characteristics and their description of an ideal franchisee match.  Explore these franchise brands further.

Successful Franchisee Trait Worksheet

About Joe Barbat

Joe Barbat founded Wireless Toyz in 1995 and grew the company from a one kiosk service center to a multi-location franchise throughout the United States. As an avid fan of all things Michigan, Joe enjoys snowmobiling, family, and recreational activities, as well as, testing the next hottest technology products to enter the wireless marketplace. Honored by both Crain’s Detroit and Ernst & Young for community involvement and entrepreneurship, Joe Barbat has a passion for developing successful franchise businesses in the wireless retail industry.