From consultants to capital, these are the resources that celebrities need at their disposal when becoming entrepreneurs in the franchising industry.
There are a lot of things that celebrities deal with in life that those who live outside of the spotlight don’t have to face. And it’s not all fame and wealth—celebrities face burdens like a lack of privacy and constant attention. That’s why when they make the decision to get involved in the franchising industry, they would do well to take advantage of a few of the extra resources at their disposal.
“When you’re thinking of celebrities who want to get involved in the franchising industry, you need to first figure out what their main motivation is. What are the reasons that they want to buy this business? Is it one more investment that they want to get into in order to expand their portfolio, are they strictly looking to make money or do they genuinely think that it’s a cool brand to be a part of? Knowing what celebrities are trying to achieve as franchisees is critical to understanding the best resources that they’ll need to have at their disposal,” said Rick Robinson, founder of Services for Franchising.
Here are three resources that celebrities should keep in mind when investing in a franchise:
1. A Consultant Who Respects Their Privacy
Aspiring business owners often turn to consultants whether or not they’re famous. But celebrities should also keep in mind that those consultants need to be mindful of their privacy.
“One of the first things that come to mind—and I’ve worked with sports figures and celebrities in the past—is privacy. There are a lot of celebrities out there who may not want their business deal to be in the spotlight, so that’s something that needs to be considered,” said Lonnie Helgerson, President of Helgerson Franchise Group.
Robinson agrees, citing privacy as the first thing to keep in mind when working with a consultant. But the consultant’s role won’t stop there as a resource—it’s also up to them to show their celebrity client the different opportunities that exist within the franchising space.
“Celebrities need anonymity. They need to be working with someone who won’t be blabbing to everyone about their business and their plans. It’s important that they have a consultant at their disposal as a resource who’s someone that they can trust,” said Robinson. “Consultants are also a great resource for celebrities looking to buy a franchise because we represent such a wide range of clients. When celebrities think of franchising, they often think of food first. But there’s so much more out there that they can get involved with that might be a better fit for them down the line.”
2. The Professional Athletes Franchise Initiative
Another resource that exists in the industry for professional athletes specifically is the Professional Athletes Franchise Initiative. Established to help athletes seamlessly make the transition from one field to another, PAFI offers a lot of help.
“When it comes to professional athletes, there’s an organization called the Professional Athletes Franchise Initiative. Together with the IFA, this organization has a few summits every year where franchisors come in and make presentations so that professional athletes have options to look into. It’s a great way for this group of celebrities to be introduced to all that franchising has to offer,” Robinson said.
3. Access to Capital and a Strong Team
Whether or not you’re a celebrity, there’s one resource that’s needed to become a franchisee that’s consistent across the board: capital. But while money isn’t typically an issue for celebrities looking to invest, it is important to determine the best use of that capital, and equally important to pay close attention to the team the celebrity builds, which will ultimately help manage the business.
“Celebrities typically have money that they’re willing to invest. So, when they decide to purchase a franchise, it’s often an agent or representative that’s reaching out for information. That’s where the importance of their team comes in—from their agent to their consultant, celebrities want to make sure that they have the right people in place to help them first find the best investment opportunity for them, and then help them manage that investment,” said Helgerson. “Money isn’t typically the issue here—the bigger issue is whether or not they’re a good match for a specific investment. That’s why celebrities need to be managing their expectations and their growth goals. It’s not about the flavor of the moment, it’s about the best investment in the long run.”