1851 Magazine sat down with Tom Spadea at the International Franchise Expo to discuss how franchisors can leverage their Item 19 when marketing their franchise opportunity. Read the full article and watch the video below.
In most cases, it makes sense to require an Item 19. For franchisors, if they don't have a strong Item 19, then they should be questioning why they are franchising in the first place. If you don't have an Item 19, you need to be really careful about what story you're telling. It's just not plausible that you're not going to talk about numbers in the franchise sales process.
There's a real problem in the last couple of years because people are working with "franchise chop shops" to start their franchises. Launching a franchise shouldn't be about plugging some pieces into a template. This is dangerous and can set up a franchise for failure.
Patience is really the key in franchising. If you want to grow your business and make 2-3 times profit in 5 years, don't franchise. Open 2 or 3 more units. But if you want that shot at 50 or 100 times growth, franchising is the best business model for that. But you have to be patient!