The Value Equation

Over the years as a franchise consultant I found myself being asked the question, “Who is a franchise good for?” In order to answer that question I made long, rambling presentations about the value proposition behind franchising and who benefits the most and who might not be a good fit for a franchise, but in all my rambling I slowly uncovered the seeds of what eventually became the basis of The Value Equation.

You see, Franchising focuses on using your soft skills over your hard skills to put you in charge of a business you likely have no experience running. This non-standard application of a skill-set allows the franchisee to apply what they know in a non-traditional way – which is one of the main points covered under fit factor. As I began to mull over the intricacies behind the marriage of various skill-sets applied to a franchisor’s income producing platform, I started thinking more about the perceived benefits of a franchise system, the courage required to step out and start one, and the differences in profit share between a traditional start-up, a franchise start-up, and just being an employee. I actually placed these three together for the first time in a presentation I made for the US Embassy in Bahrain. They were hosting a five-day virtual event centered around using the US Free Trade Agreement to economically empower women in the region and they asked me to take part in the part centered on franchising.

Eventually my thoughts hit critical mass, and I started thinking not just about franchising, but all the things covered in The Value Equation. Skills, fit factor, profit share, perceived value, and courage, they all came together in a way I knew I had to write down. I hope you enjoy taking The Value Equation course.