Ricardo Maio, CEO of Infinity Brands
“Getting franchisees to listen and trust their investment in you when you are just in your early 20s can be a massive challenge,” says Ricardo Maio, the CEO of franchising management agency Infinity Brands. “I overcame this by knowing the systems and procedures more than anyone else. I provided trust in the form of knowledge and getting the problems resolved”.
For most of his life Ricardo was immersed in his family’s business, where he gained insights from his father. “I was exposed to many business discussions around the dinner table. On school holidays I would sometimes work in the workshop or the stores.”
When he finished secondary school he went to study for a BCom degree with “no real purpose”, but this changed when his father and uncle decided to open a franchise. “That night I was tasked with helping my uncle open a store – I was 22 years of age.”
The mix of on-the-job learning and his tertiary education has led him to the point where he has a wealth of knowledge on franchise management and is happy to share that knowledge. He believes business should be exploring franchising because it allows you to expand with the help of others and create a national footprint for your brand, which opens up even more opportunities for you to expand your business.
Here he offers three reasons why you should consider franchising and takes us through the challenges you might face.
I feel that a franchise model is more in line with a sharing economy. This gives the opportunity for many people to profit and benefit from the model. Investors can greatly benefit from your franchise model. Not only do they benefit financially but they form part of a community of people that have the same issues and problems. People that they can turn to for advice. Business is hard and it’s nice to have someone to turn to for help. It’s also nice to help others prosper.
Sometimes it is a challenge for the franchisee to trust that the franchisor understands their business. They need to take the necessary advice so their business can grow within the bigger framework of the franchise.
Respect is required both ways. Both the franchisee and the franchisor bring value and their own skills to the relationship and it has to work as a mutually beneficial relationship.
You don’t start your business on top of the mountain so you won’t get fast momentum from the start. There is a bit of an uphill battle that needs consistent pressure that builds up that momentum. Consistency in your message to your customer will then turn into momentum and then you don’t stop when you have momentum.
If you are a start-up you need to do this by trading in your time but once you get momentum, convert your money to buy you time. This could be a full-time sales team, or software automation.
I don’t think there is such a thing as perfect. You want franchisees that are going to push you to be better so they will be demanding or “difficult” to work with. You will hear from them constantly but they are the ones that will push you. What is important is that they share their passion for the brand with you. That they understand your roles and the relationship the franchise model provides.
South Africa boasts a very healthy franchise sector, with up-to-date technology usage, and setup costs are reasonably affordable. Most equipment is locally sourced which doesn’t incur high costs. Labour, taxes and rental costs are much lower in South Africa compared to the rest of the world. South Africa’s population is fairly large middle-income citizens that spend their money on takeout or luxuries.
I think many industries can be improved by adopting franchising models. They force a formalisation of an industry. They collectively push the boundaries of ideas and processes. I feel that strong franchise systems also provide the consumer with trust. In a growing economy, more and more customers are looking for businesses that they can trust. This is great for anyone looking to franchise their business or for someone to be involved in a franchise business.
Every challenge is just an opportunity to learn and improve. This mentally took a while to acquire but it’s an asset in my Swiss army knife of business knowledge. Challenges would be from knowing nothing about corporate law, CPA logistics and process, all the way to signage and the methods that they use to apply vinyl. There are just so many opportunities for learning. Getting franchisees to listen and trust their investment in you when you are just in your early 20s was a massive challenge. I overcame this by knowing the systems and procedures more than anyone else. There is no person that can tell me how every aspect of the business worked. I provided trust in the form of knowledge and getting the problems resolved.
Franchising can help expand your business – so can advertising in a digital magazine