
If you look at most franchises, they
began when some smart person figured out a
way to make some money in a business and then
wrote that recipe down and began to invite
others to copy what she or he had done. The
great thing about these sorts of franchises
is that they aren't very risky for the person
joining the franchise. The business is, after
all, proven. Most franchises of this variety
require their owners to do things the
headquarters way. That's because HQ knows it
works and also because the franchisor is
trying to build a national brand, the
foundation of which is consistency.
The problem with this sort of franchise, if
you're an entrepreneur-type, is that they
aren't very much fun. All the good stuff
about opening your own
business - figuring out what
you want to offer and what color the walls
will be - aren't your
decisions to make. They've already been
made.
At the other end of things is starting up and
running your own Mom and Pop shop. There you
have all the freedom in the world to create
this thing just the way you want, but you're
flying solo, with no one else to lean on.
That's why so many start-ups fail.
National Public Radio's
All Things Considered recently produced a
segment on us and our Freedom Franchise.
Listen here*
Our initial fee for a
first time bakery is currently $35,000
instead of $30,000 as expressed in this
story. The NPR story also talks about a
franchisee who generates over $600,000 in
annual sales. As reported in our January 28,
2011, Franchise Disclosure Document, our
franchisees' average system-wide sales for
the period December 2009through November 2010
were $524,570 (bread companies open and
operating for the 12-month period as of
November 30, 2010). Of the 167 bread
companies meeting this criterion, 61, or
36.5%, exceeded this average. A new
franchisee's individual financial results may
differ from these results.
We're trying to find that middle ground
between the advantages of a traditional
franchise and the fun of a
let's-do-it-all-ourselves start-up. Our
philosophy is simple. Let's create Mom and
Pop whole-wheat bakeries where Mom and Pop
know what the heck they're doing! We call it
a Freedom Franchise.
Open a Great Harvest bakery and there aren't
any rules on how to run your store. You do it
your way but within the context of a
community of like-minded and like-talented
and like-spirited owners. When you open a
Great Harvest bakery, you stand on the
shoulders of 200 plus franchise owners and
over thirty years of experience. We call this
the Learning Community. With a Freedom
Franchise, we're trying to combine the fun of
doing it yourself with the quick learning
that comes with being part of a
community.
Read profiles of our current franchise
owners, as well as posts about the practical
application of the Freedom Franchise and the
Learning Community concepts on
The Bread
Business Blog.
We just can't see doing franchising any other
way. In franchising, you always worry about
how you are renewing yourself. The greatness
of that original business idea can be a trap
that can lead you toward thinking the first
way something was done is the best way. By
connecting owners together into a Learning
Community, we can profit from 200-odd minds
and not overly rely on two or three
headquarters types who are charged with
research and development.
That's why we spend a huge part of our
operating budget on things that cause us to
connect one bakery owner with another and
thereby cross-pollinate the best thinking in
the system. A great recipe for trail bread
invented in Minnesota flies across the
franchise system because it is so tasty. A
promo tip pioneered by Washington, D.C. area
bakeries is quickly picked up in the Ohio
River valley and the Northwest because it
produces results. All this keeps us fresh and
is, to our way of thinking, a key source of
our competitive advantage.
You might be asking yourself, does this
Freedom Franchise idea really work? If it's
so great, why don't all franchises adopt this
approach? The main reason is that it's more
difficult to grow at a high rate of speed
with this type of system. And that's OK with
us.
We live in an age when fast growth is king.
Everyone wants to become the world's next
gazillionaire. That's not our goal. Don't get
us wrong, we love to grow. When bakeries
grow, it means more people are eating great
bread. But we don't love growth so much that
we let it blind us to what we want from life
or endanger the thing we've already built. To
us, there is a balance lying somewhere
between stagnation and chaos called
sustainable growth and that's what we're
after.
We're dedicated to
finding the best people in the world who
share our values, our love for life and our
passion to run a great business. Those
values can be summed up by our brief but
heartfelt mission statement:
Be loose and have fun.
Bake phenomenal bread.
Run fast to help customers.
Create strong & exciting
bakeries.
And give generously to
others.®
Our President and CEO, Mike Ferretti,
explains the mission statement and talks
about our whole grain difference in this
video clip that was produced for
distribution to endurance athletes.
Click to play the
movie.
Independent Research on Great
Harvest