Moderator Carolyn Thurston and panelists Heidi Morrissey and Rob Price host a panel on choosing the right franchisees at the International Franchise Association’s annual conference February 28 in Las Vegas.
Franchisors should think of awarding franchises as a marriage—especially considering 10-year franchise agreements last longer than many marriages in the United States, School of Rock CEO Rob Price said.
“It is as important as capital structure. It is as important as your initial hires. It is as important as your partners, your vendors, your liability insurance,” Price said. “One wrong move in this regard can undermine you for … years.”
He continued, “If you reflect that this is a marriage versus a partnership or vendor relationship or transaction, it will reframe your mind.”
Kitchen Tune-Up and Bath Tune-Up brand president Heidi Morrissey joined Price on a panel about choosing the right franchisees to fit your brand at the International Franchise Association’s annual convention February 28.
Morrissey picks folks who fit her brands’ values so she can further establish a culture among her team and franchisees.
“Culture doesn’t come from the top,” she said. “When you’re choosing these people, you’re choosing your culture.”
Franchisors should remember that feelings need to be mutual. “We always say that we’re kind of approving you while you’re approving us,” Morrissey said.
Once brands have one or a handful of franchisees, they should be involved in the franchisee approval process as well, because candidates are more likely to act differently around a franchisee than a brand executive, Morrissey said.
“We only can judge what people show us, what they want us to see,” she said. “So, whatever they’re trying to show us, we sometimes need to find ways to kind of get behind the curtain a little bit and see what else is there.”
Franchisors can have a list of what they’d like in a perfect franchisee, but there is no one-size-fits-all approach that guarantees if an operator will be successful, Morrissey said.
“We’ve tried personality profiles, we’ve tried all sorts of things,” Morrissey said. “Even within the personality profiles, I’ll have a top performer in every single one. So, there isn’t just one way to be successful in some of the businesses.”
Heidi Morrissey, president of Kitchen Tune-Up and Bath Tune-Up, and Rob Price, CEO of School of Rock, host a panel on choosing the right franchisees at the International Franchise Association’s annual conference February 28 in Las Vegas.
Morrissey also recommended not expanding out of your comfort zone before the brand is totally ready. She said Bath Tune-Up expanded into Canada earlier than it should have.
“Honestly, we probably should have stayed in the U.S. and done a little bit more,” she said.
At School of Rock, Price’s executive team members take turns talking to candidates, because a chief financial officer will have different questions than a founder or CEO. Among other questions, he listed three he finds significant: “Why are you doing this?” “What do you think this experience will be like?” and, what Price says sounds silly, “Rolling Stones or the Beatles?”
“The answer doesn’t matter,” he said. “Do their eyes light up? … What I want to know is did they have energy, even if they know only one song from those groups. So, passion for your concept is the most important thing.”
Price and the School of Rock team take what may feel like a condescending approach to closing out its discovery days.
“We close our discovery day with me trying to tell all of the attendees why they shouldn’t do it,” Price said. Additionally, a successful month for him is when he eliminates all candidates. “That means you’re showing scrutiny and discipline and forbearance, and I think that that’s very important.”