business 101

Franchising Tips

by Erinn Morgan

Market forces like challenges with managed care, burgeoning competition from chains and mass merchants, and high rent costs for prime business locations have many independents taking a second look at franchising.

Consider these options and opportunities when making your choice.

1. ABSORB EDUCATION

Most franchisors provide education materials for their new franchisees. "If you go into business on your own, you don't have that resource," says John White, OD, who owns a Pearle Vision franchise in Paramus, N.J. "Plus, your accountant and lawyer are always on the clock."

Most franchisors have systems in place to get your questions answered and needs met. "You can call up these people any time with questions," says White. "They will even fly in and spend two days here, organize the store for us, and give us feedback."

2. UTILIZE COMPANY PROGRAMS

Franchisors offer many benefits to give their partners a business boost, from product support to assistance in joining managed care panels. White suggests that franchisees utilize their franchisors' help in getting on the panels they want and need.

For Elaina Zavilensky, an ECP who runs eight Cohen's Fashion Optical franchised stores in the New York area, an appealing benefit of being a franchisee is an increased advertising budget, which she puts to good use. "We get more advertising dollars than we ever would have on our own," she says.

Others point to strong product buying and inventory management programs as their favorite franchise features.

One other common franchisor benefit to take advantage of is continuing education and product previews offered "There, we reveal things like our new marketing strategies and preferred vendors' new products," says Scott Finn, vice president of business development at Sterling Optical.

3. BUILD A RELATIONSHIP

Attending company meetings, plus working with franchisors on education and issues you may be having will all help solidify your relationship with the franchisor. Having a good rapport with your franchisor will help your cause—and your bottom line.

"We have a great relationship with our franchisees and also our franchise advisory committee," says Bill Vaughan, vice president of franchise operations at Pearle Vision. "We are always looking to make better decisions, so we look for their input on decisions.

4. MAINTAIN YOUR VISION

While most franchisors set guidelines for things like décor and merchandise mix, there is still room for individuality—which some franchisees say is an important factor to success. "We have had a lot of freedom," says Pennie Platt, who, along with husband Steven Platt, OD, opened a Sterling Vision franchise in California, Md., last year. "As long as we don't go hugely outside the box, they have never had a problem with me doing anything on my own."

Since this couple built their store from the ground up, there were a lot of decisions to be made. Platt notes: "They had two color schemes available for the stores, and I wanted the more high-end look with mahogany and burgundy. We wanted to stand out with something different. Sterling worked with me and gave me the leeway and said it's okay 'as long as it's within our guidelines.'" EB