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Crain’s Detroit Business

Franchises get in touch with fees and feelings

More support boosts franchisee's success

By Laura Bailey

• October 21, 2002

 

Statistics show that 50 percent of all franchisors fail largely for the same reasons marriages fail: They didn't learn how to foster a partnership.

In this case, the spouse is the franchisee. And like a marriage, a successful franchisee relationship is two parts communication and one part support.

Troy-based Allegra Network L.L.C., formerly known as American Speedy Printing, learned that neglect can prove fatal. When it filed for bankruptcy in 1992, the company didn't understand that a franchisor's success relies on having happy franchisees, said Jerry Bergler, former vice president and CEO…

For instance, Sony and Tim Williamson broke a contract in March with their first franchisor because of its “unethical” behavior, Sonya said.  Because they still wanted a franchise, the Williamsons purchased a HandyPro franchise in June.  It’s proved to be a better experience. 

…Keith is very fair and goes above and beyond what he promises to the franchises.” Said Sonya Williamson, …

They’re not greedy.  Basically there’s enough for everybody.  Keith is very fair and goes above and beyond what he promises to the franchises,” said Sonya Williamson, referring to Keith Paul, owner and president of Plymouth-based HandyPro Franchise Inc.

To help during the tight startup weeks, franchisor Paul provided about $1,000 in software that the couple couldn’t afford to buy.  Recently, Paul sent an employee to Dallas to fill in for a sick worker so the Williamsons wouldn’t loose a big contract, and he split the employee’s wages with them.

“He really wants it to work for us; they were more personable,” Sonya Williamson said.  “I didn’t always agree with the franchise concept because I always thought they were greedy, but he want it to work out for us.”

Paul said he thinks such support is important, although he said he’s surprised at the amount of time he spends attending to the franchisees.  HandyPro sold its first franchise a year ago.

David Lequia, owner of the HandyPro Handyman Service in Macomb Township, bought it a month ago.  He was attracted, in part, by the amount of support offered for a relatively low franchise fee of $15,000.

For example, he lets headquarters direct his advertising because he’s still uncertain about how to best reach potential customers.  Its important to Lequia, though, that he’s allowed to cut that umbilical cord as he matures.  “Entrepreneurs want to have flexibility.  We want to be able to adjust for changing times, changing situations,” Lequia said.  “It’s a good feeling to be in charge of your own destiny.”

 

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