NFIB

In The Black
08/ 13/ 2002

by Ivan Sylvester

For a small business owner dreaming of expansion, franchising is an enticing concept. But even though the International Franchise Association counts 320,000 franchised small businesses in 75 industries, it's not an easy transition from single shingle to nationwide presence.

For Jet-Black International owners Andy and Doug Hoiland, it's been a 15-year journey from one driveway repair business to 124 Jet-Black franchises in 23 states. The Burnsville, Minn.-based brothers ran their small business for six years before attempting to franchise.

"The first key is to run your own successful business," Doug says. "I'd recommend at least five years of honing your own system before trying to franchise."

This is because most people interested in buying a franchise want all the kinks worked out, so the franchisees will open and become profitable as soon as possible.

No matter how good your business idea, it won't franchise if it's too complicated. And the business can't rely on you or your personality to work--it must be repeatable and you must be able to train strangers in your methods.

"We learned you have to keep the system really simple," says Doug. Jet-Black's focus is on quick, quality work with their specially formulated asphalt sealer. That set the company (at www.jet-black.com) apart from the seal-coating offered as a sideline by most paving companies.

Another point to consider before you franchise is if you are able--or want--to run a franchise system. You'll have to build a support and training system for your franchisees and guide them through opening their franchises.

"Just because you're successful in your own business doesn't mean you'll be a successful franchisor. It's a whole other business," Doug says.

For him, franchising is more enjoyable than running a single location because he gets to enter into long-term relationships with franchisees, and watch them grow.

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This article originally appeared in the August/September 2002 issue of MyBusiness magazine.

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