Independent To Franchise? Opinions Part III

1. A group of Denver lawyers have started a class-action suit against Xerox regarding the 5065. I intend for find out if I can offer any helpful information.
2. Although we had Xerox switch out our 5065, it is still running into the same problems as our other machine. These problems are indicative of the model and others have the same problems.
3. I got some valuable information about pricing desk-top publishing jobs and how to market design work.
4. One of the winning ideas in the ideas exchange would work great but I do not have a large press to do the work suggested. We are planning to implement the idea through one of the members of our NJAQP chapter who has the press to do the work. We plan to ask other chapter members if they would like to be part of the marketing idea and will run a larger volume for other interested shops.
5. I learned of an interesting plan for prepaying the first half of a loan which would reduce the amount of interest paid and put more into paying off the principle.
6. I talked with other printers about the types of testing they use in their shop for job applicants.
7. The New England Chapter chair who owns a print shop in New Haven, CT knows my son is attending college in New Haven after working for us in our shop for almost 4 years. She is looking for someone to do some computer work for her or for the chapter and wants my son to contact her about the part-time work. And if he is not interested, he can give her some suggestions of other students who might be interested.

1. To help me find good workers. It is true I have to find the employees, but once I find them, they can help me screen, evaluate, train and keep those employees.
   Franchises and independents both do an equally bad job in this area. Both use selection tools with the same infrequency, relying instead on intuition and the ability for the owner to size up the person. Once employed, workers are rarely evaluated, never trained and kept uninformed on an equal basis. I see no overall advantage to the franchise on this issue, although the franchisor typically will have an edge in knowing the tools to use. However, the same tools and instruments are available to the independent. The franchise may have a more active training program, but the independent can also find worker training. Neither the franchisee nor the independent truly use worker training to a great extent.
2. Measure the output and performance of these employees. I do not see an advantage to either franchise or independent on this issue. Importantly, I don t even think this is the question. It is not the measurement of output of workers which is the issue. Many shops bog down from the sheer weight of measurements without providing the necessary production leadership. It s leadership, not measurement which is the key, in my opinion.
3. Provide name recognition. I have lost customers to Alphagraphics and Insty-Prints and do not know how to go back and retrieve these customers.
   All printing is local. Name recognition on a national scale rarely does any good for the local printer. Now, I didn t say name recognition didn t do any good. Only, national name recognition. Pretty Fast Printing has, in your community, the same opportunity for name recognition as any of the major franchises. Customers do business with people who solve their problems regardless of franchise. Now, during a start-up, the package of name, look, signs and advertising typically provides the franchisee with a better start than what I have seen typically among independents. After years of operation within a community, changing the name of Chicagoland printer s shop would be of little benefit.
   
   As an aside, I was interested in the number of replies we had of franchisees who had to live DOWN the name recognition provided by previous franchisees of the same company.
   
   However, that said, this is the one area where franchisors do have an ability to improve upon their product offerings. I m not sure we have seen it yet within our industry, a la McDonald s or Ford, but some franchisors are trying hard and having some success.
4. Provide assistance with established systems: accounting, billing, job filing, credit and collection policies. Systems of accounting, billing, job filing, credit and collection not only are available to independents, accounting is accounting. Accounts receivable are accounts receivable. If one has been in business for a number of years and not yet solved these problems, it is problematical that a franchise will solve them. Once again, upon start-up, the franchisee probably has a faster time in implementing adequate systems only because they don t have to reinvent the wheel. However, it is my experience that most printers, franchise or not, desires to reinvent the wheel in their own image. Again, no particular advantage to you over what is otherwise available.
5. Equipment purchases. Our purchase of a Xerox 5065 was a disaster. I am still fighting with Xerox. 6.) With a major franchise, maybe Xerox will pay more attention. Besides they can make a more attractive pricing deal with the major companies. 7.) Help in buying equipment. Besides getting a better deal they know what makes money and what does not.
   
   

   Franchises can, from time to time, provide some good deals, but so can NAQP and others. Franchisors have more success in assisting their franchisees with financing the equipment, however and from that standpoint they have an edge. They also tend to have some edge in securing an initial package of equipment. Unfortunately, some franchisors have vested interests in getting you to purchase certain equipment, etc. which, in my opinion, nullifies the advantage many times.
   
   As for specific equipment, a franchisee is subject to the same pressure as an independent in buying equipment. And, as much as the industry loves to hate suppliers like Xerox, we also must remember that we also make a lot of money at the same time from their inventions. If one adds up all the pluses and minuses, we are much better off with them than without them. So, some deals go bad but the vast majority are good.
   
   That said, the franchise does has some advantage in assisting with resolving disputes with some vendors, but I m not sure they have an inordinate amount of power versus NAQP or other trade associations. That is because I believe companies making markets within our industry are concerned about all customer relations, not just those with franchise companies.