Have you heard the phrase Never trust a skinny chef? While there are plenty of great chefs in all sizes, this phrase does offer some caution. You might not want to be quick to trust someone who serves you food that they don’t eat themselves.
The same can be true of a franchisor. Don't trust a franchisor who hasn't owned a franchise. If a franchisor has executives who are also owners, franchisees can feel greater trust that the business plan can be successful. The franchisor is putting their money where their mouth is and backing up their model.
So, if you are considering buying a franchise, it's worth knowing if the CEO or other executives are also franchise owners. Here are some of the top benefits of working with a franchise system where the CEO also own franchise units.
The CEO Feels Your Pain
When the franchisor also operates unites, then they feel your pain! They know exactly what the industry is doing right now because they are experiencing it alongside you. This firsthand experience can help them better identify with your struggles and work alongside owners to develop solutions. The CEO isn't just sitting in an ivory tower, but they are going through the grind with you.
Because the CEO is an owner, they are intimately aware of the challenges that impact profitability, turnover, and other key business success metrics. They will ultimately make choices that optimize success for franchise owners instead of just focusing on what's best for the franchisor.
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The CEO Has Faith in the Business Model
A CEO with a franchise location of their own is like a gold seal of approval on the business model. Of course, every CEO believes in their franchise. However, when they invest their own capital and energy into a franchise location, it’s because they truly believe it is a worthwhile investment.
Owning and operating units in a franchise business can serve as a showcase of the franchisor's successful business model. It demonstrates that the business works and can be replicated successfully.
When CEOs own units, they also have insight into how the business model is working (or not working). This allows the CEO to made adjustments to the business model as needed and enhance the end-user experience.
The CEO Can Test New Concepts First
When an executive owns a franchise in their system, their offices can serve as good testing grounds for new concepts, products, technology, or services. CEO ownership allows for a safe sand box for refining the business model or penetrating new markets. This can help the franchisor have smooth launches and provide franchisees with the best support and guidance possible.
Many times, there are hiccups when launching a new idea, and these growing pains could be detrimental to a small business. But when the CEO works out all the bugs first, it helps business owners roll out new ideas successfully.
The Franchise Model Can Support Absentee Ownership
Franchise CEOs and executives are busy people. Often, they don't have much time for the the hands-on work of running a franchise location. When a CEO owns a location, it proves that the franchise can be run at a high level even when they are not present. In other words, the model can be successful under absentee or semi-absentee ownership.
Many owners prefer to be hands-on, especially in home care services. However, for some, it's just not how they want to run their business. It's valuable to know that absentee or semi-absentee ownership is possible under the franchise system. The ability to own a business without working in the business can be a huge benefit of owning a franchise.
Once the foundation of infrastructure and staff is solid, absentee or semi-absentee owners can look elsewhere instead of focusing on the day-to-day of the business. This allows them to run other businesses or open other units.
Caring's CEO: Jeff Salter
Caring Senior Service is run by the founder and CEO, Jeff Salter. He started a home care business in 1991, after realizing the need for home care services in his community. At the time, this type of service simply didn't exist to support senior citizens.
Jeff opened up several home care offices before opening his model up to franchising in 2002. Today, he still owns and operates multiple Caring locations across the US. His offices often serve as test locations for pilot programs to help further the Caring franchise. Jeff really does put his money where his mouth is and fully believes in the model.
And he's not the only one! Our VP, Ian Klaes, also owns multiple Caring Senior Service units across the US. Together, they show that franchisor-owned units can be a beneficial addition to a franchise system.
If you're interested in starting a business in home care, we invite you to learn more about Caring Senior Service. We hope that you can feel confident working with a franchisor that has such commitment to the success of franchise. To learn more about our franchise opportunity, tell us about you.