Tweet

Entrepreneurship and Franchising: Perfect Together

Written by: Flo Schell

Article Overview: For years we’ve been reading articles about a franchisor’s desire to select franchisees that are not too entrepreneurial…that are in fact interdependent rather than independent. In order for most prospective franchisees to take the leap into business ownership…they need to develop an entrepreneurial spirit.

Entrepreneurship and Franchising: Perfect Together

For years we’ve been reading articles about a franchisor’s desire to select franchisees that are not too entrepreneurial…that are in fact interdependent rather than independent.

There is truth to this of course. Franchising as a model requires that franchisor and franchisee work together as a team. The franchisor is expected to provide the proven model, trademark, marketing image, branding, and systems…the franchisee is expected to provide intimate knowledge of their specific region, strong marketing efforts and a “follow the rules” mentality.

But in order for most prospective franchisees to take the leap into business ownership…they need to develop an entrepreneurial spirit.

Consider a prospect from my own experience in franchise sales. This prospect was well-qualified in many ways to take on franchise ownership. There was only one problem. He had a really hard time making a decision on whether or not to buy in to the opportunity.

Now, let me set the stage. He had done a thorough job of due diligence. He had reviewed the UFOC with his attorney and his spouse. He had created a list of questions for franchisees of the system, asked them, and received responses.

He had even visited two or three of these franchisees…getting a real-life feel for the workings of the business and the pros and cons of the franchise system.

Yet he felt unable to come to a decision!

As I guided him through this decision making process, I finally said this: “Your due diligence has been superb. You’ve done everything you can possibly do to get clear on this opportunity. Even though you may feel there is still one more question that will make this perfectly clear…there is no such magic question. It is truly time to come to a decision.”

“May I help you to put on your entrepreneur’s hat?”

“You know,” I continued, “each of us has to have a good bit of entrepreneurial skills in order to move into our own business.”

“Imagine that you do decide to move forward. As a franchisee, you will be required to make immediate and even long-lasting business decisions with as much confidence as possible.”

“Maybe you’ll be faced with a decision on the type of loan to pursue and its terms…or a decision on whether to lease or buy your space. Maybe you’ll be asked to make build-out decisions quickly so that you can open your unit in time for peak opportunity.”

You get the picture!

Owners of both independent and franchised businesses are called upon to make entrepreneurial decisions each and every day. Decision making is part of the package called “business ownership”.

So put on your entrepreneur’s hat, please, while pursuing the franchise purchase decision.

It may be what convinces your franchisor that you are the right one for the system.

Related Articles
  Financing Your Franchise Business
  Why Owning a Franchise is a Better Way to Business Success
  18.0 Conclusion: Entrepreneurs and entrepreneurship in Africa
  The Top 7 reasons why Franchising is Better than a Brand New Business
  17.0 What Needs to be Done - Mainstreaming Entrepreneurship: Entrepreneurs and entrepreneurship in Africa

Article Tags: business ownership, due diligence, entrepreneurial skills, entrepreneurial spirit, franchise ownership, franchise sales, franchise system, franchisee, franchisor, hard time, intimate knowledge, leap, marketing efforts, marketing image, mentality, own business, pros and cons, prospective franchisees, reading articles, ufoc



Related Forum Posts
Re: SmartWoman seeks Fiesty Woman Writers - @shri: Perfect! Yes, I'd be interested! I will email you privately as you described and follow up. Goodie! Vicki
Re: Hi there! I'm Shanuna Cortez - Welcome Shanuna to the club. We will like you to post and let us know more about British Entrepreneurship Society
Re: Hello everyone! - Hi Michelle, Welcome to the club. You will find all the information you need on Entrepreneurship here. What are your business?
Re: Re Franchise etc - [quote="bmueller47":e0j0nu4t]Can you see a shift of various types of franchises? What I am thinking about is that today it is more difficult to create franchises, that has great appeal. More and more people want to have their business, but no interference of someone else.[/quote:e0j0nu4t] Not sure what you mean exactly but it is certain that more and more people want to have their own business but not more and more people know what they really want to do, or how to do it. And that's what franchising is all about. Franchising is not for an entrepreneur. An entrepreneur will do his own thing. People who buy franchises want a turn key business, with a proven model. Franchising in the US had never been that good. I don't have the exact numbers in mind but I know for sure that franchising is growing more and more as people are getting more and more aware of this business model.
Franchising vs. Licensing? - What is your opinion on Franchising vs. Licensing? Which is better?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

You Have A Website What Now

Entrepreneurs and the “Oh! No!” Trap

What Aweber Can Do For Your Online Business

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.