Interview

Telanda Sidari has 20 years of business experience with almost a decade in the franchising industry—from business ownership to sales, Sidari has first-hand experience in the emotional steps involved when buying a business. Contact Sidari at Telanda@TheFranchiseConsultingCompany.com or visit www.thefranchiseeducator.com

What are the most common misconceptions about investigating franchises?

Two things come to mind. The first is that researching or investigating a franchise is a commitment to the franchise. It’s not. An investigation is not a buying decision—it is a learning and measuring process. An investigation is a process where both sides learn about each other. This allows the client to learn everything he needs about the business model and culture, as well as to speak to current franchisees and gain a feel of the corporate culture.

Buying a business is a big decision. Franchisors structure investigations so that potential franchisees get a full picture and see if the client is able to follow the structure. If an offer is made and the client chooses to accept, it should be a well-informed decision.

Another common misconception is that buyers think a franchisor’s decision to sign them on as franchisees is a given. This can be detrimental to the process, because it puts pressure on the buyer to purchase throughout the whole process.

How do you guide a client through the investigation process?

We start by getting to know the client. We want to understand who he is, what he wants, and his short- and long-term goals. This way, we look at businesses that match his criteria in his area. Throughout I assist, guide, educate, and provide additional resources and tools. My goal is to make sure he understands what he is getting into, how the process works, and how to get an offer. If he accepts the offer, then I assist with the next steps.

How do you help a client narrow his choices?

We have check-in calls to see where a client is in his investigation and to talk about any concerns. We discuss what he likes, what he doesn’t, what would he still like to learn, any surprises that have arisen, and anything else on his mind. This is about the client, so we need to keep evaluating and keep the lines of communication open. I ask clients to write down their questions, because they will think of them at random times. I encourage them not to rule out any possibilities until we’ve had at least two calls. That said, I prefer clients wait for Discovery Day—the final step of the structured investigation—to commit.

What topics do you typically discuss with a client who is considering a franchise purchase?

Generally, I want to help the client see how the business will affect his life now and in the next five years, so we discuss many things but here are a few of the most important. Budget: What can the client afford? Everyone has a different comfort level when it comes to money. I like to introduce clients to third-party financing early on, so they have a clear understanding of all the options—and the pros and cons of each. I want to make sure there are no surprises or misunderstandings.

Timing: It’s important to create a plan based on the client’s needs. Is this something he wants now or in two years? How many hours a week does he work? Does he travel a lot for his job? Are there any big changes coming up in the next few months (i.e. a move, a possible layoff)?

Feelings: Is a client truly motivated, or is owning a business a “maybe?” Is his spouse onboard? What does he need to make a decision? Is he good at making big decisions?

Goals: What are his goals? What does he want to achieve from the business financially, personally, and professionally?

How does your background help you guide clients?

First and foremost, empathy. Years ago, I was in their shoes—I made the switch from marketing at a Fortune 500 company to franchise ownership. I say upfront that this is a big decision, and I am not here to pressure anyone. But I will challenge them and push them outside their comfort zones, so they can explore all possibilities. Now in the franchise industry for 10 years, I help people navigate the process and figure out what is right for them. When a client sees a light at the end of the tunnel, I know I’ve reached my goal.