You might be wondering, “Who is Raintree, and why does it matter to me? Raintree is an outsourced Franchise Development Organization (FDO) — otherwise known as a Franchise Sales Organization (FSO). The role of an FDO is to recruit Franchise Owners for franchisors.
By outsourcing the marketing and sales of franchises to an FDO, franchisors are able to focus all of their energy on existing franchise owners, to better ensure they are operating more efficiently, and ultimately are more profitable.
For this reason alone, you’ll often find some of the strongest franchise models right now happen to be affiliated with an FDO. But they’re also strong because they understand the necessity of only awarding franchises to candidates who fit the mold.
Good FDOs truly act as stewards of the franchise brands they represent. They work with the franchisor to develop the profile of an ideal franchise owner, and work diligently each day to filter through candidates, allowing only those who meet the requirements to progress through the franchise discovery process. Ultimately, they only present candidates to their franchisor partners who have first gone through weeks — and even months — of qualification and education.
Ultimately, Raintree is responsible for making sure that we uncover the necessary evidence that proves you possess all the skills, background and personality traits to match the franchise brand in our portfolio that you’re investigating.
And if you do, our subsequent responsibility is to ensure you are given all the information and education necessary to make an informed investment decision on your end.
In our early days as a franchise development organization, we were so excited about almost every franchise brand who inquired about partnering with us. They all looked so shiny. We partnered with and invested in brands that had amazing branding, strong marketing and where the Franchise Owners seemed to be happy. And sure, a few of these brands got really great traction and started growing around the country.
But many of our early franchise partnerships failed. Our strategy was uniform across all brands, but the results varied greatly. In the first few years, we slowly learned the hard lessons on what separates high quality from low quality franchise brands. We sustained losses totaling somewhere north of $1 million.
With lighter wallets, we sat wondering why. Soon enough, we’d come to learn an important lesson: It wasn’t the strategy that was broken. It was the quality of some brands.
In carefully going back and analyzing why some brands won big, and why some brands lost, we developed both a qualitative and quantitative assessment to help us better predict the future performance of the overall franchise model. These indicators now allow us to more precisely predict whether the franchise model is likely to become the next big brand in franchising.
Last year, I reviewed 219 applications from franchise brands looking to partner with Raintree — either for FDO representation, or investment into their brand.
Guess how many we approved?
One. That’s one (1) out of 219. The rest either didn’t like my terms, my Australian accent — or in the great majority of cases — they didn’t meet our very strict criteria that we use to determine if a brand is truly elite or not.
Most unknowing Franchise Owners invest in brands that don’t encompass these traits. Indeed, brands of this quality are hard to find. But in going through the process with Raintree, you can be rest assured that all franchise options presented to you have already successfully gone through our vetting process.
Over the coming days and weeks, I’ll send you a number of articles designed to arm you with the knowledge you need to be able to better understand if the franchise(s) you’re investigating (whether they are Raintree-related or not) are of the type of quality that have allowed us to find significant success in franchise investments with over the past several years.
You’re about to embark on one of the most important journeys of your career, and your life. Be studious. Be smart. But most of all, enjoy it!