Strategizing Franchise Ownership Risk
Michele Dean | Virginia
Entrepreneurs and established industry pros, alike, become wary when evaluating opportunities within the context of current operations. Easy expansion capital, minimized growth risk and grand investment opportunities aside, not every business model promises high royalties and ease-of-financing.
To franchise effectively is to invest intuitively: At times, planning royalty strategies well before franchise outlets are even considered can be surprisingly effective. Some soon-to-be franchisees subvert the process even more–sweeping across several locations for ownership, but ultimately taking a backseat administrative role.
Take on Risk
Understandably, some franchisees who reap industry rewards on their first attempt aren’t new to risk and reward management.
For financial professionals like Michele Dean, a laser-like focus for new opportunities is an inherent tool of the trade.
While Michele’s franchising story is indeed a tale of success, her most inspiring maneuvers can teach aspiring franchisees a thing or two about balancing risk. Specifically, they can unpack the “long-term” strategies we don’t normally see.
Michele bought her first franchise seven years ago. Keen on fostering a new revenue stream underscored by reliable scalability, her sights eventually landed on essential service businesses. This was a wise decision off the bat–certainly. Still, even the most grounded approaches to franchise ownership face pitfalls.
In Michele’s case, the biggest pitfall was one of desynchronization: After acquiring her first franchise, she’d need to leverage its individual growth alongside additional acquisitions. Not only would she need to maintain her current obligations–she’d also need to leverage them with her current franchisor’s needs on the other end.
Most franchisors, entrepreneurs and small business owners face tough-and-go situations when trying to grow. It’s simply natural, especially when a given industry’s climate requires an eye for opportunity and the initiative to pursue it before it escapes.
Before franchising, Michele held the VP position of CapitalOne’s Third party Risk Management. Having garnered over a decade of financial management expertise, Michele’s skills greatly impacted a number of third-party risk programs, audit programs, compliance programs and cost-reduction programs with Retail Bank executives.
Ever a “numbers person,” it wasn’t long before Michele’s know-how led her to evaluate the very risk management models her organizations were grounded in. Before long, she’d enter the franchising world as a newcomer in term alone–as she was well-equipped to make vital, initial decisions.
Michele’s initial franchise partnership was certainly a big step, but it was becoming weightier by the year. To invest in new partnerships, she’d need another decisive strategist–one with a good sense of balance when it came to tightropes interconnecting industry franchises. And Careyann Golliver was the answer.
The communications with potentially new franchise partners were tough–very tough. The pressures surrounding the franchising data were everywhere: She needed to make decisions and deals, but she didn’t want to share a sizable chunk of the industry’s valued information. She was set on a low-investment venture, first and foremost–one which complemented her current strategies and successes, rather than replacing them.
She walked away from these franchises, when all was said and done–trading for extra risk in dedication to her goals. Quick on her feet, however, she’d soon transform this risk into reward alongside Careyann.
Michele’s current franchisor, meanwhile, had been acquired. Now was the time for action, as having a plan before selling both businesses, down the road, could guarantee a comfortable retirement.
Careyann and she pursued a crash course in self-discovery. Then, they took a deep dive into Michele’s current skill sets, goals and underlying requirements her ideal business would need to meet. She followed the pathways laid out before her by the America’s Franchise Matchmaker™ Proven Process, soon maximizing her strengths:
She matched with service-based franchise concepts, solely. Each of these held great growth potential when nurtured by a financial pro, too, which put Michele’s many past franchising rodeos to good use.
Her chosen business had a directive for local mom-and-pop business acquisitions, giving her plenty of leadership and networking opportunities within the essential needs industry–a $100B+ growth pool.
Michele and Careyann’s approach to management-based franchise financials reveals a truth underscoring the pursuit of franchise ownership:
Having a blueprint for success can make all the difference–especially when it’s co-created with one masterful in the art of franchise matchmaking.
with Big Potential
“When I found Franchise logic I was looking to purchase a new compatible franchise to add to my business portfolio. I was wowed with Careyann’s responsiveness and drive for results especially – because that’s my personality too! Careyann listened to my needs/wants and found me several Franchisors that were good options…..and then one GREAT option that I purchased.
As a direct result of working with Careyann, I found the experience super easy. She understood my sense of urgency and took feedback well in order to present the optimal business for me.
I recommend Franchise-Logic to anyone who really truly wants to purchase a business, as Careyann will find it for you!“
– MICHELE DEAN | VIRGINIA