A business suited to being franchised is one that can be duplicated and offer a return on the money invested, according to one local restaurateur.
‘Franchising is a highly regulated industry,’ said Chris Newcomb, who is partners with his father Don Newcomb and Debra Bryson of Oxford in a company known as Newco Dining. ‘You have legal responsibilities and fiduciary responsibilities. You’ve got to be able to deliver what you promise.’
Newco Dining operates Newk’s Express Café and sells franchises for the fast casual dining restaurant that has locations in Flowood, Oxford, Hattiesburg, Southhaven and Tuscaloosa. The company developed McAlister’s Gourmet Deli in 1989, franchised the concept and later sold it in a management buyout in 1999.
‘Franchising a business means coming up with a strategic plan, legal documents, quality controls, operations manuals, marketing and training,’ said Mark Siebert, chief executive officer for Chicago-based iFranchise Group, which helps new and established companies expand through franchises. ‘You’ve got to be able to duplicate every concept of the business,’ he said.
Cleve Barham, owner of Fine Eyes eyewear boutique in Ridgeland, said he’s drawn up legal documents to franchise Fine Eyes, but has put that idea on hold. The work done so far has been costly, and he’s still got operations manuals and details of other procedures to work out, he said.
‘It’s been more expensive than I thought it would be and the attorney led me to believe,’ Barham said.
Barham said the bottom line is he’s not sure he wants to veer off from his primary business of fitting high-end eyewear.
‘Franchising would be opening another business,’ he said.
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