I might be dating myself by recalling the anti-drug ads from the ‘80s and trying to relate them to franchising. The relevancy in my mind comes from the fact that restraint and saying no to something that feels good in the near term but will cause long-term pain is much easier said than done. By Tom Spadea
A strong start for new franchisees is essential for a healthy and growing franchise system. One of the best ways to kick-start a new business is with a big grand-opening marketing blitz. Emerging brands that try to be conservative with the required grand-opening marketing spend do so at their own peril. By Tom Spadea
Seems like a simple enough question. However, I think many franchisors forget they are in two businesses. One is the underlying subject-matter expert on the service provided to consumers, such as a restaurant, gym, roofing, and so on. But the second, and increasingly more important as your system grows, is the business of franchising. By Tom Spadea
It is not an easy transition to go from running a traditional business serving customers locally to building a franchise system with an eye toward exponential growth. One of the key factors in the success of a founder is their mindset and understanding of what they are really building. By Tom Spadea
For many franchisors, the goal is to get your system and your agreements to the point that you no longer need to entertain addenda or changes to your franchise agreements. But for new brands, that is just not realistic. By Tom Spadea
As the old saying goes, the best time to plant a tree was 20 years ago. The next best time is today. Many emerging and startup franchisors hold off on collecting their brand fund fees because they don’t have a plan for the money, and they are still getting used to being franchisors. By Tom Spadea
Effective communication is not just about what is said or written, but how well it is heard, understood, and retained. As a franchise lawyer, we spend many hours with our clients, trying to turn their business model and vision into readable, unambiguous, and enforceable agreements. By Tom Spadea
Many systems are tempted, as they update and renew their FDDs, to lean into more restrictive clauses and aggressive enforcement programs against wayward franchisees. By Tom Spadea
Why do customers buy from your franchisees? That should be the question at the root of every decision a franchisor makes. Does the system continue to deliver the brand promise that created the original profitable unit that pushed the founder into franchising? By Tom Spadea
Many of our franchisor clients are run by a dynamic and charismatic founder with the vision and passion to lead the brand through the wild and unpredictable ride of franchise growth. By Tom Spadea