• What warranties will I give and Operations Manager would be assigned national advertising.
what risk is there in the written to monitor my performance including 2. Securing of national fleet
warranty? a regular review of the operational accounts.
• What do I do if a customer breaks statistics. For an upfront fee of $7000 3. Group purchasing discounts.
down out of town? plus an agreement for the equipment 4. Inter-center warranty claims assis-
• What is the acceptable parts cost purchase, plus an agreement to pay 7% tance.
as a percentage of transmission of sales for the next ten years, lo and 5. In-house technical hot line assis-
repair pricing? behold another franchisee was added to tance.
• How will I know if my labor costs the list of an international transmission 6. Business review and counseling.
are too high? franchisor! 7. Resale of business when owner
• What are the industry measuring wants out.
sticks to evaluate my shop’s per-
formance? Real Life Experience So, here’s the big question: Do
• If my production people have tech Our franchised shop got off to a you believe that the price you will pay
problems, who can I call? great start. After three successful years monthly to your silent partner is worth
• How long will it take until I I opened four more franchised shops it? The franchisor is a master when it
develop a good reputation? with partners. Then the proverbial hit comes to “Track A,” implementing a
the fan. The respected name of our fran- profitable business model. Is the fran-
chise was maligned by some bad opera- chisor equally valuable in the ongoing
Answers, Answers, tors many hundreds of miles away. business activities of your transmission
Answers
Overnight we were tarred by the media shop? Lots of franchisees say “Yes.”
with the same brush as “con artists”, What do you say?
The franchisor had answers and and crooks”. We almost went bankrupt. The franchisor presents a business
practical help for all of these and more. A franchisor must have a respected offering to the entrepreneur - the busi-
The franchise salesman came to our and recognizable name. Our franchisor nessman wannabe; the appeal is not to
town, reviewed the possible locations never got its “good name” back. We the aspiring transmission technician.
and selected one. He knew the need for became “Independents” shortly there- In the next edition of GEARS we will
sign visibility, vehicle access, parking, after. trace the development of “Independent”
and building appearance. He sold me a transmission shops that emerge from
complete package of industry-proven the technical expertise of gifted techni-
equipment, an initial stock of soft parts, The Key: Mutual cians.
and a big pole sign with the familiar
Ongoing Benefits
What are your thoughts about fran-
franchise logo. I was buying name rec- chising in the transmission business?
ognition, a good reputation. In order for a franchise to work in I’d like to hear from you as we explore
The franchisor provided a com- the long term, there must be ongoing this very old controversy. We need
plete business package that included all mutual benefits for both the franchi- to hear your story. If you are a happy
the forms and procedures necessary to sor and the franchisee. The franchi- franchisee, or if you’re glad to be an
run the business. Included was a two sor’s benefit is the ongoing stream of Independent, send me your take on this
week intense training period to whip royalties that accrue from the franchi- issue as we attempt to present the alter-
me into shape. I learned the “right way” see’s sales. A secondary benefit is the natives in a fair and balanced way.
to answer the phone, get customers in, added location to the shop chain which Paul Mathewson
sell the work, and collect the money. enhances the franchisor’s image.
mandmtransmission@shaw.ca
The franchisor arranged “Grand The franchisee’s significant, ongo- 705 942 2005 (Canada)
Opening” offers and ongoing first ing benefits are as follows: 906 440 4600 (Michigan)
class professional advertising copy. An 1. Pooled, professional, effective,
GEARS January/February 2010 49
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