Many new franchisors fall down in the franchisee set-up phase. This is the phase where the new franchisee has paid their fees and is now entering the system. They will either be getting equipment or building out a location. Smaller franchisors often find it difficult to hold the hand constantly with the new franchisee as the have questions, feel somewhat nervous and anxiety sets in. Wouldnt you be nervous starting your new business?

The best thing a new franchisor should do is to constantly ask the new franchisees what they can do better to assist them. Sure they will ask for the world and if you give them everything well that is not good either as:

A.) You will go broke Trying

B.) If you give them everything you will make them Weak

When we first got started setting up franchises in 1997 we learned the hard way, but by mid 1999 we had it pretty well figured out. Here is one of the critiques we got from a new franchisee, which helped wake us up. We asked what could we do better in the initial phase of start-up? Here is what they stated:

When a person has been approved he could use someone to walk him through the whole process. I could have also used a list of vendors who were building my truck bed, getting wheels etc. A payment schedule, laying out when one would need to have what money ready would be extremely useful. When you read the UFOC it appears that the money should get paid up front, but really it gets laid out in bits and pieces. I want to know clearly and up front how it will go, when I can expect the various parts of the transaction to happen-at least in a chronological order if not a specific date. And when the bed is finished, the truck body company [mobile franchise business] should call ME first as well as Howard [equipment vendor and main supplier] and you [franchise founder]. I was still out west when the body on my truck was actually finished. Had they contacted me first I would have stayed and waited saving time and money and getting my business started sooner.

By doing extensive critique reviews we were able to prevent lawsuits and continually better our system and streamline the process. If you run a franchise company you would be well advised, by me, to do the same. Think on this in 2006.