Recently, I had the opportunity to interview Mary Thompson, the president of Mr. Rooter and the chair for VetFran, about the VetFran program. It was an eye opening chat, and one that I believe deserves to be advertised as much as possible.

VetFran was founded after Desert Storm in 1991, by Don Dwyer, the founder of the international franchise company, The Dwyer Group. After 9/11, Don Dwyer’s daughter, Dina Dwyer-Owens, the current CEO of the Dwyer Group took it upon herself to revitalize the VetFran program. There are over 400 members of VetFran, all franchisors looking to give discounted franchises to veterans. The current chair of the program is Mary Thompson, the president of Mr. Rooter. So far there have been over 2100 deals given to veterans throughout the years. And Mr. Rooter, Thompson’s own company, has been named by USA Today as one of the Top 50 Companies in American to work with veterans.

“I was a franchise owner before, and I’ve done every job since. I’ve been on every side and seen it from all levels,” Thompson said. “That’s why I’m so passionate. I know I would not have had the success I’ve had without the marine corp. and the franchising business teaching me how. Veterans make the best franchisees: they are disciplined, but follow a system. We are looking for leaders who want to lead toward a common goal.”

Indeed, a marine sword flashes from the walls of Thompson’s office, a flash of deadly silver and ivory handle polished until it glows in the late afternoon sun. Thompson herself speaks on the subject with true passion, as evident by her recent travels to Washington DC to support the new Help Veterans Own Franchises Act.

“The bill is a win/win situation,” Thompson said. “It gives veterans tax credits up to $25,000 of the franchise fee. This money is cash that veterans can then invest back in the company. It pays taxes back into the community. The veteran now has a job, and also has created jobs, and the franchisors end up with a great franchisee.”

As the chair for VetFran, Thompson has spent her time trying to expand the program to its limits. Through her leadership, the website has been redone and a portal is being created to marry veterans with different job opportunities. Their goal is to increase the number of franchisors on VetFran 15%, and they’re already part of the way there to next year’s goal.

“At a recent event, VetFran experienced 4 percent growth at a single event,” Thompson said, relish in her voice. “The greatest thing about the program is that VetFran isn’t just doing ‘the right thing to do.’ VetFran is the right thing to do, but it’s also the smart thing to do. Franchising is a great medium and a great match between veterans and franchisors. Veterans ‘get’ the system. Most people have to be taught that.”

Through her many engagements, like speaking at the Entrepreneurship Bootcamp for Veterans with Disabilities, Thompson has had the opportunity to spread her knowledge about the world of opportunities available for veterans and franchisors alike. Having wounded warrior, Staff Sergeant Shilo Harris there, however, as living proof of her words, made the impact all the more tangible.

“I always have said ‘If not now, when?’ when it comes to VetFran and veterans programs, and Shilo said something that has really stuck with me. He told me ‘That’s not a question, that’s an imperative.’ And he was right.”

Helpful links:

The VetFran website

Information on the Help Veterans Own Franchises Act and how to help:

Despite today’s downturned economy, or perhaps because of it, more and more business owners are discovering the secret of stability and prosperity: franchising. Franchising, though not for all businesses, is an ideal way to grow your company. Franchising allows for the duplication of successful business plans and then applies them directly to your own business. Through the aid and support from the Dwyer Group, you as an owner can spend less time bogged down in the time-consuming minutia of daily business life and can apply yourself to improvement and expansion.

The Dwyer Group is comprised of 7 potential concepts that you might be interested in operating. One of the greatest benefits of working with the Dwyer Group is that you can either convert your existing business into a successful franchise, or you can start from scratch and build your franchise from the ground up. This flexibility allows you the freedom to run your company, while also having support when you require it. Between the Dwyer Group’s proven business plans and excellent training opportunities, becoming a franchisee means starting out ahead and with more connections that you could previously dream.

There are 7 potential franchises that encompass the Dwyer Group, and each one has its own unique benefits and is recession-resistant.

Rainbow International- Rainbow International is in the smoke, fire and water restoration industry. This industry is both recession-resistant and profitable. In addition to those basic services, Rainbow International also offers mold removal services, biohazard clean up and commercial services. With a Rainbow Franchise, you will receive full training and support, and will receive help from our national accounts and marketing team in order to help you get the optimal number of jobs for your business.

Glass Doctor- Not only is Glass Doctor the largest fully franchised residential, business and auto glass franchise company in the U.S. and Canada, they also have the ability to make your existing glass company skyrocket. With a Glass Doctor franchise, you will have access to experts in specialty glass services that can drastically increase your client base. Through a franchise with the Dwyer Group, you will have access to discounts and rebates on all that you need to run your company, and access to special, proven business systems that will streamline your company and maximize results.  

Aire Serv- Aire Serv is a leader in the heating and air conditioning industry, an industry that is both competitive, profitable and always necessary. By opening an Aire Serv franchise, you can learn how to increase profitability, have access to our cutting-edge research and learn to expand your existing company into something much greater. With over 175 locations worldwide, there are hundreds of franchise owners in a support system, as well as the entire Dwyer Group team, who will provide help and information on running a successful business. 

Mr. Appliance- Mr. Appliance is the largest fully franchised appliance repair company in the world. By opening a Mr. Appliance franchise, you are getting the chance to benefit from fifteen years worth of experience in servicing high-end appliances and operating successful businesses.  The industry is both dynamic and competitive, and many people previously owning appliance repair services have made the switch to a Mr. Appliance franchise and seen their companies really take off.

Mr. Electric- Mr. Electric is an electrical home service provider with impeccable connections. Already the official electrical home installation partner of the Home Depot, this powerful alliance has helped our franchise owners become leaders in the industry. With this franchise, you will be able to provide special electrical services like solar patio lighting, security lighting, custom projects and much more. As a franchise owner in such a successful business, you will be allowed the freedom of running your own business with the security of support from other franchise owners and headquarters just a phone call away.

Mr. Rooter- A leader in the plumbing industry, Mr. Rooter allows you to build a successful franchise due in part to the training and business services you will receive on your induction into the franchise family. With a long, illustrious history, Mr. Rooter was founded in 1974 and has grown to over 300 franchise locations across the United States, Canada and Europe. Opening a Mr. Rooter franchise means that you will have access to important help that will allow you to focus your time on improving efficiencies and performance. As always, being a part of one of the Dwyer Group’s franchises also means that you will receive the immense discounts and rebates available through the Dwyer Group’s many connections. 

The Grounds Guys- The newest franchise opportunity in the grounds and lawn care industry, The Grounds Guys franchise comes with all of the systems, training, support and tools to become a fully profitable and competitive franchise. With all franchise territories in the United States open, opening a franchise has never been more accessible. Regardless of your experience, you will receive top of the line training  and you can focus on streamlining your business to maximize profitability.

Whether an existing business owner or a new one, any one of these franchises can help you take your business to new, impressive heights. Having the support of other franchisees and the invaluable training and resources from the Dwyer Group means adding layers of security and aid that are difficult to find in smaller, non-franchised businesses. Many franchise owners have praised the system, stating that they are able to devote their time to actually running the business and expanding it, rather than simply putting out fires as soon as they spring up.

Convinced? Click here to get started.

Getting to know a little more about you as a prospect is one of the first things franchises are interested in. The initial franchise application process is a screening mechanism by which franchisors begin to determine your interest and qualifications.

Today, it is common to find initial franchise application forms on franchisors’ websites – but most will be happy to send you one as well. This is a good stepping off point for beginning the communication process. You should not only take this very seriously, but also expect to spend some time gathering the information and completing the application.

Most franchise applications include many of the same requests for information, and it can get quite detailed.

One of the fundamental requests you’ll discover will deal with the specifics of your current financial situation. The franchisor will want to know about your personal assets (and liabilities), for example, because they want to make sure you have enough financial resources to operate the business in case it runs into unforeseen financial difficulty.

And it won’t just be your financial status the franchisor is concerned with. You will probably also be asked about your spouse’s financial state. Some franchisors will want to know if you have financial partners or backers. These are all important questions.

Again, the franchisor wants to be sure that you, your spouse, and your partners are prepared to make the financial commitment necessary to start and run a franchise business successfully.

Beyond finances, you’ll encounter detailed questions concerning your experience, education, background, and even aspirations. These questions are designed to help the franchisor determine whether or not you meet their profile. In other words, they want to know if you’re the kind of person they think will be able to run the business successfully and fit into their franchise system. They do this not only to protect their brand but also their existing franchisees.

Successful franchise organizations depend on franchisees who follow the franchise system completely. As a result, they don’t want people who they perceive as too independent, or people who won’t play by the book because they like to experiment and try out their own ideas. In one sense, franchising is not for those who think outside the box. In this business, there’s no need to reinvent the wheel.

Franchise applications are kept confidential and neither the franchisor nor the prospect is bound in any way by the submission of the initial application. Again, take the time to fully and accurately complete the application and return it to the franchisor promptly. You can then expect a quick response and most likely a telephone interview with a franchise representative.

What you can expect to find – and be asked – in a typical franchise application form:

• Detailed personal information: including all contact information and other biographical and character background
• Business interests: they’ll want to know if you ever owned a business, have been involved in any kind of litigation/arbitration, or have any partners
• Location preferences: will usually ask for cities/territories you’re interested in and any alternates you would consider as well as if you are open to relocation
• Detailed employment history: where you have worked, what you did, for how long, and annual compensation
• Educational background: and any other pertinent training/experience
• Personal financial statement: assets, liabilities, net worth, source of income, and total income
• General inquiry: many franchisors will want to know what you already know about them, their franchise opportunity, and why you are interested

You get only one chance to make a first impression. So does the franchisor.

That’s why, after selecting which franchise brands to investigate, it’s so important to evaluate the franchisor’s response at every point of contact. Whether that contact is by email or by phone, the way a franchisor responds to your initial inquiry is often (though not always) an indicator of how they will treat you if you become a franchisee in their system.

The first contact is usually online, through the franchisor’s website. In most cases, you initiate the communication by filling out an online form. Franchisors will request your basic financial information (net worth, liquidity), history in their industry, management experience, requested locations, and more. Their primary purpose is to weed out those who do not qualify, most often based on their finances.

There is no reason to divulge too much personal data at this stage. Franchisors are merely trying to save their time and yours. If you don’t possess the required net worth and liquid assets, there is no point in the franchisor following up. It’s the first screen.

In fact, some franchisors will disqualify prospective franchisees based on how they fill out the online form. Their thinking is this, and they have a case: “If this person can’t even follow directions and properly fill out a form, how will they ever follow our franchise system?”

Most franchisors today will follow up your initial inquiry with automatically generated emails, slowly introducing you to the concept – and further qualifying your capabilities, timetable, desired geographic area, and level of interest in their brand. These emails are crafted to evaluate your response at each stage, as well as to inform you further about the franchise opportunity.

Then there’s the website itself. Is it easy to navigate? Is there one-click access to a separate franchise page? Is the material laid out cleanly and clearly? Is there a FAQ page? Does it answer all or most of your important questions? Are there testimonials from franchisees? The website is designed to entice qualified prospects by providing enough information to keep them interested, but not give away the store. That will come later in the initial phone call with a franchise sales representative.

The first stages of contact with a franchisor should be a time for you to get answers to your biggest, most important questions: “How much money can I make?” “Is there a territory available where I want?”

This is also a time to determine if your personal and financial goals and values match those of the franchise organization. These are the people you are considering partnering with for 5 or 10 years or more years to build your financial future. Their culture, and your fit with it, will be crucial in building a healthy, long-term relationship.

A good franchise organization is interested in the long term, in the revenue generated over the years through ongoing royalties – not in collecting one-time franchise fees. (These are supposed to cover only the franchisor’s costs involved in training you and helping you get started on the right foot, marketing, and a premium for the brand name and operating system – which is what you’re buying). Why does McDonald’s, for instance, stand head and shoulders above its competitors? Not so much because of the quality of its food as the power of its brand and the quality of its operating system.

Remember, you are betting a large portion of your financial future on the brand you choose, so be selective. There are about 3,000 franchise brands out there in virtually every business sector. So if you get the feeling that the people you encounter at the brand of your choice are not the type you’d like to deal with for the next 5 or 10 years, consider other brands. Yes, it’s about making money… and it’s also about lifestyle, values, and goals, and the people and organization you will feel comfortable with in the long term.

Franchising is a great business model and with so many concepts and brands out there to choose from, research and due diligence are a big part of your assignment.

Of course you’ll receive a wealth of information from the franchisor detailing and outlining almost every facet of the system and operations, but there is one other area of research that you owe it to yourself to uncover (many franchises even require that you do this).

Once you’ve narrowed your franchise brand choice, you’ll want to talk to some existing – and even former – franchisees about what it’s really like out there in the trenches every day running the business. This is part of your due diligence and it’s imperatively important.

Item 20 of the franchisor’s Franchise Disclosure Document (FDD) will feature a list of both current and former franchisees. Pick a few of them and sit down and call them to inquire and discuss. You may even need to arrange a time to talk with them in more detail – remember, some franchisees are extremely hands-on and busy running their stores. But they will do their best to arrange to speak with you.

As you call and talk to franchisees, you’ll be able to ask any questions you have and you’ll most likely get frank and candid answers from them. It’s worth your time to contact these people to determine if they’re happy with their investment, the support they’ve received from the franchisor, and if they are happy with the income level they have achieved. Likewise, if they have left the system, you want to know why, and if they knew then what they know now would they still invest in the franchise system. Above all, don’t be afraid to ask any question. This is your life and financial future you’re talking about.

To help get you started, here are some basic and fundamental questions you should be asking these franchisees:

1. How happy are they with their franchisor? Ask them to describe their overall level of satisfaction.
2. What type of business background, business experience, education, and/or skills did they possess before becoming a franchisee? How important was that?
3. How long did it take for them to realize a return on investment? This can help you determine, approximately, how long it would take you to start seeing real profitability – and help you analyze what you’ll need in the interim.
4. Did the franchisor properly estimate the amount of operating cash that was needed in the beginning?
5. What about unexpected or hidden costs? What were they and how did they affect the franchisee and their operation?
6. Have their earnings met with their expectations? This could be a delicate area of discussion, but it’s important for you to find out as much as you can.
7. Did the franchisor provide adequate and thorough training to get them up and running?
8. Were there any problems with the territory, cannibalization of sales, competition?
9. Any restrictions that have affected their business? Limitations on products and services that can be sold, vendor requirements, etc.
10. How has ongoing franchisor support been for marketing/advertising/employee training?

Start with these questions and you’ll probably have a few more of your own. This due diligence is something that you will be glad that you did.

Are you utilizing your methods of social media correctly? Are you employing social media in a way to keep and attract customers’ attention and interest, or have you become the page that people click “Ignore” or (Gasp!) “UNLIKE”?

Below, I hope you all will find valuable ways to keep the customer first and foremost in the mind. A business is NOTHING without customers, and building your customer following can start, or continue, with online social media.

That golden, goopy, sweet and delicious honey:

Cover up that vinegar with some honey!

Dear Abby [Insert franchise name here]! A primary reason customers look to connect with companies via social media or by Google is because they need you to fix something. If you provide it, they will come. Have the easy-peesy answers to simple questions available at their convenience, but also invite them to ask you directly via an @name tweet or message on Facebook. A great way to boost your following is to simply provide a fun tip each day.

A GREAT example is @MrAppliance. They search for comments on Twitter with “broken” or an appliance name, and respond directly to those users with, “No need to make food in the microwave. Look up the nearest Mr. Appliance and give them a call. We can fix it!” You have to give people a reason for sticking around and remaining a fan of your page or Twitter account.

Good PR is a two-way street! How to improve a service if there is no feedback? People REALLY like to feel like their opinions matter (AND THEY DO!) When you invite them to comment on service, it makes them feel more valued and not just your average, run-of-the-mill customer. If you invest more interest in their opinion, you have a friend/customer for life. Not to mention those wonderful “how are we doing?” posts you can put on Facebook and Twitter, fearlessly inviting the world to see how your customers view you. Those companies with guts are able to handle anything, even a bad review. Ask how you can improve it!

SALE ON AISLE 8! Let’s face it, people LOVE bargains, coupons, ANYTHING to save them money. The primary reason customers connect with brands is to take advantage of promotions or coupons, so bring it to them in the simplest of ways, a click away!

Customers are willing to “like” a page with the hopes that the brand will “thank them” by giving them a discount or special offer. When you’re creating these offers, aim higher than the mundane and average, “10% off…” Make sure it’s something unique and is an offer people will want to cash in.

Guarantee a coupon for following on both Twitter AND Facebook. Host contests on Twitter with trivia related to your concept and award the first 10 people who respond with the answer and your @direct name! Make sure you are reaching out to people in the way they WANT to be reached out to; the new-age of social media is upon us, people!

Make ‘em laugh, make ‘em laugh, make ‘em laugh! Okay, no one likes a sourpuss with absolutely NO sense of humor…But a class clown isn’t exactly what we are shooting for. You want to show the world your personable side, without losing their confidence in your brand.

There is no harm in posting a link to something funny (within good taste/reason), to a recipe or to something you support (like The Ronald McDonald Charity House, Relay for Life, etc.). Don’t bombard them with opinion, stay out of politics, but make them realize you aren’t an automaton that posts blogs, never reads comments, doesn’t care what people are thinking, etc. Have a blog that details what you did with your family, post pictures of the grandkids; essentially help them to get to know you.

But here comes the vinegar…

R.E.S.P.E.C.T. I was always taught, religion and politics are NOT dinner conversations. Don’t make following you on Twitter or Facebook an awkward or embarrassing fact. I know I have deleted a cousin or two who spouted off religion-related rants or politic-fueled fodder just because I didn’t want others to see it!

Be Switzerland. Make sure you allow your followers their rants about your service (or praises!). If you invite it, it will be given. Treat each and every comment as if it will help your image, (and you would be surprised, bad comments help too!)

Don’t start pointing your finger or criticizing the customer, because who knows, maybe they will remain loyal to you!  Instead of censoring their messages because it’s not nice, have a public discussion with that customer on how to improve!

I. Am. A. Robot. Another reason people’s fingers hover over that “Unfollow” or “Unlike” button is because they can’t get around your updates and Tweets to see others! Don’t flood the screen with information.

A Tweet or three a day will suffice. A question or blog update twice or thrice a week will do. Don’t change directions so many times that you lose their interest. You can even have a theme per week, if it floats your boat! You know your audience best, so go from there!

Tumbleweed Tweeter. You know those old Westerns where, to emphasize nothingness, a big tumbleweed floats across the screen? Do NOT be that tumbleweed! You are emphasizing to your customers that you CARE, therefore you need to actually be there… I know, it’s a shocker.

You want your image to be between a season veteran grandpa of five and a helicopter parent. Show you care enough to let them comment freely on your brand, while also emphasizing that you are there to help with absolutely anything they need. (Pretty spot on, don’t you think?)

If you start something, like a blog, Twitter account, Facebook or something else, maintain it! Nothing annoys people more when they go to the trouble to find you online, only to have you disappear on them. What was the point?

Anyone who’s thinking about starting a new business is going to need to create a business plan. Why? Well banks and lenders require one for starters. But also because business plans are one of the crucial foundations for the beginnings of a business. And the franchising industry is no different.

Business plans are smart. They provide a road map to where you want to go and signposts for how you are going to get there. Writing a business plan causes you to consider challenges, risks, and opportunities that will be coming your way.

Because you are choosing to purchase a franchise, your business plan will be a little easier to create than someone who is starting a business from scratch. For example, many franchisors already have business plan templates – or elements of business plans, at the very least – that you can use and adapt. And you’ll be able to obtain much of the financial information that’s necessary from the Franchise Disclosure Document (FDD).

Basic business plans can be boiled down to five main sections. These are the main things lenders will be looking for.

First up, you’ll need a concise and informative introduction section. Here you want to describe the business and the kinds of products or services for sale. You should evaluate your market and territory and include that information here. Analyze your competition. Discuss the operational approach you will take and the challenges and risks you’ve identified with taking a business into this market.

Second, describe your management approach. Outline your management structure and philosophies. Detail all of the management positions/roles and talk about the individuals who will be serving in these positions. Explain what makes them unique and qualified to excel. Your management team is going to be critical to your franchise’s success.

The third section of your business plan should be the marketing plan. Here you want to explain how you’re going to reach customers and get them through the doors of your franchise business. Outline all of your marketing and advertising plans. Discuss the value of your products and services and why they offer a unique advantage to your company.

Next, include financial projections. Here is where you’ll want to include pro forma financial statements such as income statements, cash flow projections, and balance sheets. The idea is to use this data to point to how you project the business to do once it opens. Your projections should be very conservative and take into account as many variables as possible. Remember, projections are difficult to make – especially in a start-up business – so include as much information as possible in this section.

Finally, include a section that details your financing needs. Here you should provide, in detail, a complete analysis of your start-up costs. Discuss how much capital you will need (and where you plan to get it) to cover your operations from day one until you begin turning a profit. This section is important even if you are not borrowing money.

Creating a business plan forces you to think deeply about the business, analyze numerous options, and formally project a course of action. You’ll learn more and you’ll understand more about operating a business. And for that, you will be glad you did it.

Franchise trade shows are a great source of information as you consider which brands to invest in. At these shows, which take place all over the country throughout the year, you can kick the tires, taste the food, and handle the products. Most important, perhaps, you can meet live representatives from dozens, or even hundreds of brands, depending on the size of the show.

The Grounds Guys will have MANY trade shows for 2011! Don't miss out!

Whether national, regional, or local, these shows offer a golden opportunity to ask questions – not only with franchise sales representatives, but often with franchisees as well. Most shows also provide educational seminars and sessions where you can meet franchise experts and specialists. You can also learn a lot from other entrepreneurs seeking the right brand for themselves and compare notes, impressions, hopes, and fears.

IFA Annual Convention – In terms of sheer size and scope, the biggest show is the International Franchise Association’s (IFA) annual convention. IFA shows generally offer sessions such as The A to Z’s of Buying a Franchise; How To Franchise Your Business; Financing Your Franchise; Opportunities in Franchising for Minorities & Women; and Franchising for Veterans 101. Other shows sponsored by the IFA include:

• International Franchise Expo (IFE) – Also endorsed by the U.S. Department of Commerce, this annual show is held in April in Washington, D.C.

• West Coast Franchise Expo – This annual October event draws more than 200 franchise brands from more than a dozen states in the West and offers a complete conference program.

• Franchise Expo South – Hundreds of franchisors attend to showcase their brands. This show draws both attendees and exhibitors from Latin America and the Caribbean.

• Franchise & Financing Expo – These are held at different times of the year across the country, sponsored by the IFA, the SBA, and local Chambers of Commerce. Sites include Arizona, Atlanta, Boston, Central Virginia, and North Texas. As the name indicates, these shows are an opportunity to learn about financing and meet lenders face to face.

• Franchise Opportunities Seminars for Women and Minorities – Conducted by the IFA’s Diversity Institute, these one-day events, held in cities across the country, seek to introduce franchising as an economic development tool. They are held in cooperation with Congressional representatives, mayors, local governments, the Urban League, the SBA, Small Business Development Centers, the Minority Business Development Agency, and other partners. They include franchisor exhibits and seminars on franchising fundamentals, legal aspects, financing, funding, and technical assistance. For a list of cities and dates visit the IFA’s website.

Further information on many of these events can be found at the IFA website and at www.mfvexpo.com, which produces most of these shows.

How to get the most from these shows

1. Before you attend – Go online and/or phone the sponsoring group to get a list of the franchise companies exhibiting. Choose the brands you want to learn about in advance, and research them online before the show. Don’t lock in on your selected brands to the exclusion of new opportunities that may catch your attention once you arrive.

2. At the show – Once inside, stop in at the booths of the brands you have chosen. Bring a list of your three to five most important questions and try to get some one-on-one time with the brand’s representatives. Take notes; lots happens at these shows, and you can review your notes – as well as franchisors’ printed and digital material home – when you get home.Get business cards from the people you meet, and leave your card or contact information with the brands you like. Try to get a sense of the culture of the brand from the reps you meet, and how they respond to your questions.

3. After the show – Review the materials you have collected, sort out your impressions, comparing your experience to your expectations. See who contacts you first–quick follow-up usually is an indicator of a franchise organization that has its act together–and of how they will treat you later if you sign with them.

If you are looking to franchise with The Dwyer Group, come and visit us at these trade shows for 2011:

The Grounds Guys:
Congress 2011
Mid-America Horticultural Trade Show
New England Grows
CanWest Horticultural Show
Nursery/Landscape Expo
GIE + EXPO
SIMA 14th Annual Snow & Ice Symposium

Aire Serv:
Comfortech

Glass Doctor:
GlassBuild America
NACE

Mr. Appliance:
ASTI

Mr. Electric:
Electric West
IEC National Convention

Mr.  Rooter:
Pumper & Cleaner Environmental Expo International

(We will attend more, but these are shows we have booked at the moment.)

Visit LeadingTheServiceIndustry.com for more information on trade shows.

Youth in franchising? Millennials at the helm? Can younger people with relatively little business experience (or money) learn to manage a successful franchise operation?

A combination of several factors says yes – out of necessity for both prospective franchisees looking to make a living in a tough economy, and for franchisors seeking to expand their system in an era of tight credit. This confluence of economics and demographics has led to a rise in the numbers of younger people signing on as franchisees.

First, the demographics of youth. Generation X (born about 1965 to 1976) are now about 35 to 45 years old, hardly qualifying them as “youth.” So let’s focus on the next group, Generation Y, also known as the Millennial Generation (born about 1977 to 1990). As of 2010, this group ranged in age from about 20 to 35 years old. Millennials also are a big group, dwarfing Gen X and about the same size (70-plus million) as the post-Second World War Baby Boomer generation (born 1946 to 1964).

Age doesn't factor into changing the world.

Millennials account for more than 25 percent of the adult population in the U.S. That number is growing as the oldest of the Baby Boomers are beginning to retire, or at least look at it seriously. That’s a scary prospect for franchisors, who are working to fill that gap by developing recruitment and training programs aimed at the Gen Yers/Millennials.

For many in this group, whose tail end is just graduating college or have recently done so, the job market in 2010 is dismal. Just as they come of age and look to begin their working careers, unemployment is at record highs and large companies are laying off employees by the tens of thousands. With employment prospects dimmer than in generations, Millennials are forced to seek alternatives to traditional corporate careers.

Many Gen Yers choose to attend graduate school to bolster their credentials in the hope that the employment market will improve by the time they’re done. Others are eager to get started in business; they do the math and realize that the price of graduate school and the price of becoming a franchisee are not that different – and that franchising pays a lot better than grad school, important when you’re facing the prospect of paying off undergraduate student loans.

Of course most college grads and twenty-somethings don’t have the financial resources for a franchise fee, opening costs, and surviving the first crucial years. Nor do they have the business experience or the people and life management skills required to succeed in business – which is one of the reasons many will choose franchising over starting out in business for themselves. What they do have in spades, however, are energy, enthusiasm, an eagerness to learn, fresh ideas, and perhaps most important, parents and relatives willing to finance their entry into a franchised business.

Some of these parents are the same Boomers who are preparing to retire. Those who are franchisees might want to turn the business over to their offspring, and can offer training, support, and mentorship as their children learn the business. Others are seeking to give their children a good start in business and realize that the franchise model provides that training and support, and that mentoring can come from experienced franchisees within the system. And others, whose retirement savings have been severely reduced by the Great Recession, must not only work longer (which means fewer opportunities for younger people to advance), they also, suddenly and unexpectedly, must find ways to make more money for their Golden Years. Investing in a franchise through their children is one way to do that – especially in a time of reduced confidence in the stock market.

Veterans returning from Iraq and Afghanistan are another youthful segment ripe for franchising opportunities. They are used to following a system, and many junior officers returning to civilian life make ideal candidates and future leaders.

These youthful franchisees appear to have much going for them, and franchisors report their success rate is about on par with older first-time franchisees. Some assets youthfulness has going for it in franchising are a willingness to listen and learn; energy and passion; the ability to work long hours to build their business; fewer preconceived ideas about business than older people (i.e., greater willingness to follow a system); and an entrepreneurial spirit that has been trained to collaborate more than previous generations. Many have started businesses in high school and college, and are better prepared to manage than franchisors might expect. Some have done so with friends, and team up with them as franchisees to share the financial and management burdens of operating a franchise.

Younger people also have grown up with technology, an increasingly important part of managing and marketing a business today. Their affinity for computers is a given, and social media is a part of their everyday lives. And for franchise concepts or brands that employ teenagers (fast food, especially), their closeness in age can help bridge the “generation gaps” so many older franchisees struggle to overcome in their hiring and retention practices.

On the down side, youth is a time of exploration, and franchise agreements run five years or more. Can young people commit for that time when their lives are still taking shape? What if they fall in love with someone across the country, or even in another country? What if they turn out to be incapable of managing people, doing the books, or marketing? While this can occur with older franchisees, at least those prospects have more of a track record, and have done their exploring, and are looking to settle down and settle in.

Young people most likely to succeed as franchisees will enlist experienced, older advisors – whether it’s their parents and family, other franchisees, or by hiring or outsourcing or partnering with professionals who can make up for their youth and inexperience. After all, while enthusiasm can go a long way, it’s nice to know where you’re going. Enlisting the aid and support of people who have already “been there, done that” can help youthful franchisees not only determine where they’re going, but provide them with the operational, financial, and management tools and skills they need to get there.

They can seriously help franchisees, novices or experts, gain skills in building a solid customer base and thus growing their business. It’s on you to make it happen, and here’s how you do it:

• Pre-opening – You’re the new guy in town – so get the word out!
  • Signs should be in the window and calls need to be made to the local media.
  • Walk around the neighborhood to meet owners of other businesses in your area.
  • Advertise opening-day giveaways, coupons, etc. Use social media (Twitter, Facebook) to spread the word.
  • One of the most effective advertising is the two-way Tweet. Make sure you get feedback from your customers! Advertise coupons, ask questions and put a survey out there if you want!
• Grand opening – Raise the roof in your new town!
  • Announce the date well in advance, make it a festive occasion, and above all, provide material incentives:
    • Giveaways to the first (insert a number here) people.
    • Free samples, balloons, flyers, the whole nine yards.
    • Discount coupons to bring customers back.
    • An e-mail signup list to keep them informed of special offers.
    • Promote LOUDLY that you can be followed on Facebook and Twitter!
• Ongoing support – Don’t be afraid to ask for help, advice during a new product/promotion.
  • Be willing to share any problems or obstacles you’re facing in the area of marketing with your franchisors or even fellow franchisees. (Trust me; they’ve seen it all before.)
    • More than likely, they’ll be able to provide you with solutions and suggestions, and the names of experienced franchisees in your area that you can contact – they might also serve as a coach or mentor.
  • Make your franchisor your “go-to-guy” for anything marketing information, tactics, and materials. Although there is an official training period to go through, you can learn so much more when you begin your brand-investigation in your search for the perfect brand.
• National and regional advertising – If you’re part of a well-known national brand, use that to your advantage.
  • Television, radio, and newspaper ads for the brand can only help. Your job is to connect the more generic brand ads to local marketing efforts.
• Marketing materials – Increasingly available on the company intranet, so you have no excuse for not using them!
  • Marketing materials approved by the franchisor can be downloaded, customized for your location and market, and distributed through any local media you like, from print or radio to Twitter or your own website; and, of course, in your store windows and through in-store flyers and coupons.

Although some of this information may be common sense or standard procedure, remember this: even the most experienced pilots consult a checklist before taking off.