The simplicity and beauty of franchising is that it is basically a form of business where instead of starting uneasily and trying to decipher things on your own, you’ll already find plans and formats that have been applied and tested before. The guidelines already exist and are available for those who seek them. As an owner of a franchise business, all that’s required of you is to make yourself fully aware of the tricks and the trade and the rules of the game, then simply follow them correctly.
To begin with, starting a franchise business will entail paying an upfront fee. This fee will give you access to the already established brand name of the franchiser as well as his specific guidelines to running a franchise business in the current marketplace.
There is also a monthly fee paid to the franchiser, which is known as a ‘royalty’ payment. In exchange for this payment, the franchiser will provide you with help and aid when you are in need of them.
Your franchiser can also act as a personal guide in maneuvering your way through the business world by helping you determine which location is best to set up shop, providing you with training courses, helping in promotion and marketing of the business and finally, being there to help you with any other work related issues along the road.
All in all, franchising has a lot more security than building up your own business from nothing. Almost all details are laid down and mapped out beforehand, leaving very little to worry about. You will simply be required to follow rules and procedures and work hard at making your business a success.
The US department of Commerce indicates in a study carried out over 7 years that more than 90% of all franchises turn in a profit steadily. Compare this to businesses set up by individuals outside of franchising, where up to 80% of them end up biting the dust and disappearing as quietly as they came on the business scene within an average time period of 5 years. This high failure rate is usually a combination of naivety regarding the business world, poor knowledge of the product and its potential and general lack of experience. While trial and error are good learning experiences, banks aren’t too patient when shutting down your business operation, if the cash isn’t coming in as quickly as it should be.
However, with franchising there will be certain restrictions on the business operation. There will be predetermined tools set for your disposal between suppliers and computer systems, all of which have been handpicked by the franchiser. You will also be operating under certain conditions that ensure to the franchiser that his reputation will remain intact and suffer no damages.
This maybe very difficult for highly independent entrepreneurs who value their freedom a great deal.
So while you’ll be going into business for yourself, franchising is still a form of partnership where all parties involved have to cooperate and work hard to ensure their business’s success.
Franchise Made Simple - To learn more about this author, visit Sebastien Page's Website.
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Anne Barr
Anne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations,
networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business
ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Sebastien Page
(Visit Sebastien's Website)
Sebas
tien Page is Director of Marketing for
Wo
rldFranchising.com, the most
comprehensive information resource for
potential franchise buyers. The company
also publishes franchise best sellers such
as Bond's Franchise Guide, and Top 100
Franchises Guide. Before joining
WorldFranchising.com, Page was Marketing
Manager for Franchise.com where he
successfully led the Marketing Department.
Sebastien Page is very active in the
franchise community and he often writes
about franchising, sales and marketing.
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