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To ensure consistent quality, some franchisers set up elaborate training programs. I Can't Believe It's Yogurt, a chain that will soon have 115 yogurt parlors in 25 states, has set up Yogurt University at the company's Dallas headquarters. Similar to McDonald's Hamburger U., the school gives new franchisees a ten-day indoctrination into every aspect of the business, from how to choose a good location for a store to how to make yogurt the company way. During the final stage of training, students go into franchise stores where instructors observe as some prospective franchisees play the parts of salespeople while others act as temperamental customers. The object: to show the students how to handle unexpected demands.
Still, efforts to impose too rigid a formula can backfire. Says the Commerce Department's Kostecka: "Some of the biggest disputes arise because a franchisee doesn't want to follow the system." To foster creativity and diversity, Hair Performers, a 240-shop chain, encourages its franchisees to fashion their own hairstyles. Owners like Bill and Peggy Howard, who run a Hair Performers shop in Atlanta, take pride in the awards that their stylists have won in hairdressing competitions.
Just as the franchiser should check out the potential franchisees, the reverse also applies. Consultant Kushell gives this advice to would-be shop owners: "Talk to existing franchisees who have lived with the system for a period of time, and make very sure that the franchiser loves them as much in June as he did in January. Talk to people who have been in the system three, five or ten years." Kushell also suggests working in an established outlet for a day or two.
For all the potential profits, running a franchise is arduous work and not a task for a halfhearted investor. Donita and Bill Rachell worked twelve to 14 hours a day for months while establishing a Maids International operation in St. Louis, training the cleaning teams and soliciting clients. Says she: "It's a lot of headaches, I wouldn't kid you about that, and it tries your patience some days. You're giving up the security of a paycheck, and you put everything you worked for on the line."
Franchisers show no signs of running out of ideas. The newest hot concept is piggyback franchising, in which stores operated by one chain also sell the products of another franchised firm. Baskin-Robbins ice-cream counters, for example, can now be found in 15 Wendy's restaurants. Three Dairy Queens sell Mister Donut products. 7-Eleven stores, which already peddle their own sandwiches and hot dogs, now feature Church's Fried Chicken at five locations and Hardee's hamburgers at three other stores. The ultimate strategy in this sort of marketing may be to transform a single franchised store into a micromall.