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Ratner Companies Interview
 May 10th, 2006Small Business 101: Buying Into a Franchise < United States > Interviewer : Interviewers Interviewees : Tom Fihe (Vice President of Franchising) If you are thinking about starting your own business, you probably have tons of questions about where to start. Get advice from Small Business 101 to learn more about the basics of entrepreneurship. Tom Fihe is the lead franchise planner and developer for Ratner Companies. Responsible for launching an area development approach to franchise agreements for Hair Cuttery, he has worked to develop a strategy for executing Hair Cuttery development throughout most of the United States. His primary duty is promoting the appeal of Hair Cuttery to potential investors. In addition to marketing the concept, Scott is responsible for developing an organizational design and culture that supports franchise potential. This includes providing project management of internal support services including real estate availability, store design and brand consistency. A friend says that Subway requires a $125,000 investment. Is that the normal price?
Investments range dramatically from millions to thousands of dollars. It depends on the concept. A Hair Cuttery investment is approximately $150,000 and a popular food service concept could be a couple million dollars. What kind of qualifications are franchise companies looking for when evaluating applicants? Is it simply down to money or are they looking for expertise in the industry or in franchising generally? I like this question! When I consider potential franchisee, I look for whether the person has an understanding of franchising. It's not always experience in the industry. Oftentimes, as with Hair Cuttery, the franchisee should have an understanding of how to operate a business (not just the hair business. I'm also looking to see if you have ample liquidity to invest in the business (the criteria of which are set by the franchisor). And certainly, there has to be a fit/trust between the franchisor and the franchisee. Make no mistake, though, financial capability is a key to determining the success/failure of any business and it's the same in franchising. What are the fastest-growing franchise chains in the U.S. today? From the March 20, 2005 edition of Franchise Times's "Introducing the Fast 55" article: 1. Dippin'Dots 2. Super Wash 3. Wireless Dimensions 4. Certified Restoration Dry Cleaning 5. RCI Holiday Network Each of these companies has grown their units by over 1000% in the past five years. |
