Franchisors should think of awarding franchises as a marriage—especially considering 10-year franchise agreements last longer than many marriages in the United States, School of Rock CEO Rob Price said.
“It is as important as capital structure. It is as important as your initial hires. It is as important as your partners, your vendors, your liability insurance,” Price said. “One wrong move in this regard can undermine you for…years.”
He continued, “If you reflect that this is a marriage versus a partnership or vendor relationship or transaction, it will reframe your mind.”
At School of Rock, Price’s executive team members take turns talking to candidates, because a chief financial officer will have different questions than a founder or CEO. Among other questions, he listed three he finds significant:
- “Why are you doing this?”
- “What do you think this experience will be like?”
- and, what Price says sounds silly, “Rolling Stones or the Beatles?”
“The answer doesn’t matter,” he said. “Do their eyes light up? What I want to know is did they have energy, even if they know only one song from those groups. So, passion for your concept is the most important thing.”
“We close our discovery day with me trying to tell all of the attendees why they shouldn’t do it,” Price said. Additionally, a successful month for him is when he eliminates all candidates. “That means you’re showing scrutiny and discipline and forbearance, and I think that that’s very important.”
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