How to Identify a Profitable Franchise Opportunity

Introduction

Patrick Findaro, co-founder of Vetted Biz, interviews Sabrina Wall, CEO and founder of Franchise Brokers Association (FBA). Sabrina shares her experiences in franchising, her journey as a franchise owner and broker, and insights into the industry.

Franchising

Entry

Sabrina initially got into franchising while researching franchise opportunities to buy. Her curiosity led her to realize the potential available to anyone willing to invest wisely and work diligently. She soon became a franchise owner and broker, eventually founding FBA to help people make informed franchise investments.

Franchise Ownership

Sabrina’s experience as a franchise owner included co-investing with partners where she handled non-day-to-day management tasks while partners were the operational heads. She had various franchises, including tanning, cleaning, restaurant, and hair salon businesses. Her role included providing oversight and supporting immigrant investors in securing their visas.

Investment Journey

Sabrina’s first investment in a franchise was in 2006, assisted by a franchise broker. However, she felt that the broker lacked a personalized approach, which inspired her to enter the industry and create a better support system for franchise seekers.

Franchise Brokers

Dual Roles

Many franchise brokers are also franchisees, which can be overwhelming due to managing both a brokering business and a franchise business. Sabrina managed this by investing through partnerships and supporting specific functions rather than engaging in day-to-day operations.

Franchise Broker Skills

Franchise brokers need leadership, communication skills, and an ability to mentor franchisees. FBA focuses on bringing in brokers who have the ability to lead and inspire, ensuring a successful experience for franchisees.

Training

Training franchise brokers was essential to Sabrina’s mission. After analyzing a study from Florida State University, Sabrina revamped FBA’s training from a three-day course to a five-week intensive program, including ongoing mentoring, which improved franchise broker retention from 50% to 80%.

Industry Insights

Advice for Laid-off Professionals

Sabrina advises laid-off professionals interested in franchising to consult with a franchise broker. Brokers have extensive, practical knowledge and can offer insights that go beyond what one might find through independent research. They guide clients by leveraging a deep understanding of various franchises and market conditions.

Quality of Franchises

Franchise quality can vary significantly. Some brands offer minimal support, while others provide robust systems and relationships with franchise owners. Franchise brokers help prospective owners make informed choices based on experience and detailed analysis.

Franchisor Relations

Emerging Franchisors

Sabrina encourages emerging franchisors to invest in educating themselves on franchising, leveraging tools like the Certified Franchise Executive (CFE) certification offered by the International Franchise Association (IFA). She emphasizes the importance of supporting early franchisees to establish a successful foundation for future growth.

Successful Franchisee Stories

Sabrina highlights a franchisee, Gene, who succeeded with the Painter1 franchise. Painter1 is unique in offering franchisees shared ownership of the franchisor, aligning interests across the system. Gene became a mentor for new franchisees, benefiting financially while helping others grow.

Conclusion

Benefits of Franchising

Franchising provides a corporate structure with the flexibility of smaller businesses, allowing quick adaptation to market conditions. This flexibility was evident during the COVID-19 pandemic when franchisors supported franchisees through collective knowledge and industry guidance.

Closing Thoughts

Sabrina considers franchising a strong business segment that adapts well to market changes and provides long-term relationships. She highlights the value of proactive leadership and collaboration between franchisors and franchisees.