Key Takeaways, Insights, and Facts from the Article “Franchise Entrepreneurs Sell Their Soles” Written by Jenny Lee of The Vancouver Sun and Posted on Vancouversun.com on August 2, 2011
Brian Curin, the President of Flip Flop Shops and a fellow Vancouverite, recently signed a master franchise agreement with Doug Kingston of Langley, BC, who will open 30 Flip Flop Shops in Canada over the next 10 years.
Brian and Doug sat down with Jenny Lee of The Vancouver Sun for an exclusive interview, where they shared a ton of great advice for entrepreneurs interested in franchising their own concept. Brian is an authority on the subject because he was part of the team that grew Cold Stone Creamery and Moe’s Southwest Grill. Their insights can be summed up in these 10 rules for prospective franchisors:
1. A good franchise concept is one that is unique, simple, easy to operate, and scalable.
2. Find a niche concept and a proprietary way of doing business.
3. Do not underestimate the money and work needed to establish a franchise company. Expect to spend six to 18 months and $100,000 to $200,000 to set up the legal framework.
4. Hire a good franchise lawyer.
5. Do not sell a franchise to the first person who comes along, if that person does not possess the qualities needed to succeed in the business.
6. Franchisees are often people who have been laid off or mothers looking to get back to work, so just because you know how to do something doesn’t mean anybody without experience can just do it. Take the time and care needed to create a comprehensive training and operations manual, and make sure all franchisees receive ongoing support.
7. Remember to include disclaimers about checking with the local municipality on matters related to hiring, disability, liability, and insurance.
8. Make sure your franchisees can actually make money — and keep the franchise fee low.
9. Say no to a potential franchisee in the wrong market.
10. Consider boutique-type franchise concepts that have broken away from department and drug stores because these are multi-billion-dollar opportunities that are often neglected and not given the attention commensurate with their potential.
A Fun Fact About Flip Flop Shops: It seems counter-intuitive but sales are strongest in the winter because there’s more mall traffic and people are planning vacations. And in the winter, you can even buy lambswool-lined flip flops and slippers.
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