Shobajo advises on franchising

Chief Executive Officer of Information Technology (IT) training outfit, HIIT, Mr. Kayode Shobajo, has identified passion and competence as keys to successful franchising, especially in developing economies like Nigeria, reports CHARLES OKOH.

Shobajo who was speaking on “Leveraging Digital Tools to prepare entrepreneurs and franchise manager for the 21 century economy” in Lagos, also said developing mentor spirit by franchisor is vital to the success of any franchisee.

He said with a perfect relationship between the franchisor and franchisee byway of leveraging on technology or digital tools, facilitate the expectation of the franchisor.

“The infrastructure, the operating system, it is not the franchisee that will begin to suggest to the franchisor the accounting software or package, which is the ICT or digital tools he ought to have installed before selling his franchise,” he opined.

In addition, Shobajo said with the digital tools available to the franchisor, they can monitor electronically their outlets.

He called for proper enlightenment on the need to consult adequately by the franchisee before entering into any contractual agreement.

“Passion is the most important requirement. If you are to buy my own franchise and you are not passionate about it, I would not talk to you even if you bring a billion. When you begin to have dispassionate persons around you as partners, they will end up pulling you in another direction,” he said.

Shobajo said a franchisees that refuses to listen to the franchisor will always have problems, warning that being a franchisee does not make a person a shareholder of the franchisor’s company unless shares of the company has been purchased by the franchisee.

He said there are product distribution format and business format franchise.
“With product distribution format franchise you do not have many things in common with the franchisor; they just brand it with their colours like you have in the petrol station and they do not care how you keep your accounts, but when you keep a business format franchise, it is do it the way we do our thing,” he said.

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