Hairhouse Warehouse franchise overview

National Franchise Manager for Hairhouse Warehouse , Peter Collins, provides an insight into what makes a successful franchisee in the hair and beauty products and services arena. Investment in the Hairhouse Warehouse system requires funds of around $400,000 and the following personal and professional qualities.

Skills prerequisites:
Hairhouse Warehouse looks for applicants that have a combination of the following:
- Small business experience;
- Team leadership;
- Strong customer focus;
- Basic accounts keeping skills; Good communication skills; and
- Passion and energy.

Ideal franchisee:
Someone who shows a real passion for the business – no matter what it is. We look for ‘intrapreneurs’ – people who are entrepreneurs and can work within a system. We don't actively pursue people with hair industry experience as candidates. We tend to rely on our systems and support teams more than someone who 'knows the industry', and potentially change our system to match their ideals.

We look for someone who has shown long-term commitment previously with regard to time spent in and on the business. It’s critical that the franchisee spends as much time as possible in their store for it to perform to its potential. They are team leaders, and this can't be done offsite. We want people who can match our passion and drive, so they can replicate this atmosphere in the store and amongst their staff.

On the flipside question of difficult franchisees, Peter offers this: “For me it’s all about communication. Because of the close working relationship we have, there shouldn't be an issue that we can't sit down and talk out as business partners. If it gets to the stage where the franchisee will not communicate and they’re potentially harming our brand, then we’re willing to help them exit the system as soon as possible.”

Top three most important questions asked of franchisees during the interview process
1. Describe the relationship between franchisee and franchisor.
2. What will you do if things aren't going to plan?
3. Explain how you will make your store the best in the group.

What franchisees shouldn’t ask:
What are the minimum hours I can work in the store?

Short-term goals (within the next six to 12 months)
Hairhouse Warehouse’s strategy for the new calendar year will be to open three stores per month for the ten months of possible construction.

We’re also currently working on setting in place our international rollout strategy with all legal processes set in place by the first quarter. This will allow us to further investigate the current crop of international applicants, while further reviewing the relevant markets.

Conclusion
As the franchise sector continues to expand and mature in Australia, the challenge for franchisees to find the quality franchisor, and vice versa, will continue to grow. The sincerity of the motivation offers an insight for the franchisee to the future direction of the business and the subsequent rationale for being a part of the network.

If any of the issues raised above give an indication that the motivations are insincere, short-term or not aligned with your expectations, my advice is to walk away.

For the franchisors reading this article, it’s important to continue to think about differentiating your franchise system from the rest of the pack to make your business accessible and attractive to the best franchisees. The competition for the best people will only intensify over the coming years as supply and demand realign.

See the buying a franchise page for additional information.

24/07/2007

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