Franchising: Give Yourself a Chance
Franchising: Give Yourself a Chance
Everyone wants to be there own boss. The desire runs deep in America and with big business downsizing and outsourcing and sending jobs overseas, the demand for top franchises and business opportunities is only going to increase.
These aspiring entrepreneurs, in all likelihood, have never owned a business and as a result look to franchises with a proven business model as a possible alternative to starting a business on there own.
Owning a franchise is not a guaranteed path to success
Buying a franchise will be one of the costliest purchases you will ever make, yet most people get caught up in the excitement of being their own boss and fail to properly validate, with authority, their franchise decision. You had a positive experience with the MAACO transmission shop down the street and you love the hamburgers at McDonalds and the fruit basket you purchased from Edible Arrangements as a gift was a big hit with mom. All good reasons to continue to frequent these franchise brands but not a good reason to buy their franchise opportunity.
Owning a franchise is a serious business and lifestyle decision that should be researched and validated thoroughly.
Where’s your Passion?
The right franchise business will enhance your life. You should buy a business that is personally fulfilling because it nourishes the most important aspects of your personality. It suits the way you like to do things and is a reflection of who you are. Your innate strengths are front and center to the operation of the franchise.
If you buy the right franchise, you should:
Look forward to going to your place of business every day.
Feel energized and excited about what you do.
Be proud of the work you do or the services you provide.
Be completely optimistic about the future of your franchise.
People are different in their needs, desires, interests, skills, values and personalities. Different franchises and even different aspects of that franchise satisfy different people. Think about what you want to do before choosing a franchise and not just whether it’s a good business.
Concentrate on Who You Are
When selecting a franchise to purchase, don’t limit your search to franchise industries in which you have worked before; consider transferable strengths and skill sets. What are your business strengths? Are they in Operations, Management, Marketing, or Customer Service? Do you want a franchise business with few employees or many employees? Restaurant franchises or Coffee franchises require long hours. Do you want a traditional 9:00 to 5:00 business? What suits you best – a business to business franchise or a business to consumer franchise?
Many franchise buyers are most comfortable looking at franchises in industries in which they have prior experience. The most successful franchisees are those who match not just their experience, but their strongest skills to a franchise model that requires constant use of customized skill sets.
Researching your Franchise
You have identified your strengths, your skill sets, and interests and you have narrowed your search to 3 viable franchise opportunities. You’ve done a financial audit to assess your financial resources and you have a clear understanding of your risk tolerance.
You need to become up close and personal with two important documents – the Uniform Franchise Offering Circular (UFOC) and the franchise agreement or contract. Have your franchise attorney review these documents as well.
How Much Can You Make?
Unless your franchise publishes an earnings claim in the UFOC, the best source of information on your franchise will come from current franchisees. Be prepared to ask relevant questions during the investigation process. Some questions to consider would be:
Are you happy with your decision to buy this franchise?
How long did it take you to break-even?
How long have you owned this franchise?
Were the costs associated with your purchase about what you expected?
Did the franchise company provide adequate training?
Do they continue to support you when you have questions?
Were there any surprises that you could share?
What is a typical day for you?
Is it hard finding and hiring employees?
What is the hardest thing about running this franchise?
Would you buy this franchise again?
Finding a Franchise Attorney
Ask current franchisees which franchise attorney they used or look for franchise attorney listings under “Suppliers” or “Resources” in print and online franchise directories.
You may want to purchase the ABA’s Forum on Franchising Directory of about 2,000 attorneys who specialize in franchising. Its $35, and available at www.abanet.org/forums/franchising.
Your Final Assessment
Franchising does offer a proven system or business model for doing business. It does limit your risk a bit in that it eliminates trial and error and guess work while in the early stages of starting and running a business. You will have to work hard and be persistent with business strategies that get you the best results. Always keep reality in mind and don’t shoot for the stars. Choose the right franchise for you and always be prepared for the worst.
Franchising Give Yourself a Chance - To learn more about this author, visit William Bradley's Website.
Like this article? Share it with your friends
Franchising: Give Yourself a Chance
Everyone wants to be there own boss. The desire runs deep in America and with big business downsizing and outsourcing and sending jobs overseas, the demand for top franchises and business opportunities is only going to increase.
These aspiring entrepreneurs, in all likelihood, have never owned a business and as a result look to franchises with a proven business model as a possible alternative to starting a business on there own.
Owning a franchise is not a guaranteed path to success
Buying a franchise will be one of the costliest purchases you will ever make, yet most people get caught up in the excitement of being their own boss and fail to properly validate, with authority, their franchise decision. You had a positive experience with the MAACO transmission shop down the street and you love the hamburgers at McDonalds and the fruit basket you purchased from Edible Arrangements as a gift was a big hit with mom. All good reasons to continue to frequent these franchise brands but not a good reason to buy their franchise opportunity.
Owning a franchise is a serious business and lifestyle decision that should be researched and validated thoroughly.
Where’s your Passion?
The right franchise business will enhance your life. You should buy a business that is personally fulfilling because it nourishes the most important aspects of your personality. It suits the way you like to do things and is a reflection of who you are. Your innate strengths are front and center to the operation of the franchise.
If you buy the right franchise, you should:
Look forward to going to your place of business every day.
Feel energized and excited about what you do.
Be proud of the work you do or the services you provide.
Be completely optimistic about the future of your franchise.
People are different in their needs, desires, interests, skills, values and personalities. Different franchises and even different aspects of that franchise satisfy different people. Think about what you want to do before choosing a franchise and not just whether it’s a good business.
Concentrate on Who You Are
When selecting a franchise to purchase, don’t limit your search to franchise industries in which you have worked before; consider transferable strengths and skill sets. What are your business strengths? Are they in Operations, Management, Marketing, or Customer Service? Do you want a franchise business with few employees or many employees? Restaurant franchises or Coffee franchises require long hours. Do you want a traditional 9:00 to 5:00 business? What suits you best – a business to business franchise or a business to consumer franchise?
Many franchise buyers are most comfortable looking at franchises in industries in which they have prior experience. The most successful franchisees are those who match not just their experience, but their strongest skills to a franchise model that requires constant use of customized skill sets.
Researching your Franchise
You have identified your strengths, your skill sets, and interests and you have narrowed your search to 3 viable franchise opportunities. You’ve done a financial audit to assess your financial resources and you have a clear understanding of your risk tolerance.
You need to become up close and personal with two important documents – the Uniform Franchise Offering Circular (UFOC) and the franchise agreement or contract. Have your franchise attorney review these documents as well.
How Much Can You Make?
Unless your franchise publishes an earnings claim in the UFOC, the best source of information on your franchise will come from current franchisees. Be prepared to ask relevant questions during the investigation process. Some questions to consider would be:
Are you happy with your decision to buy this franchise?
How long did it take you to break-even?
How long have you owned this franchise?
Were the costs associated with your purchase about what you expected?
Did the franchise company provide adequate training?
Do they continue to support you when you have questions?
Were there any surprises that you could share?
What is a typical day for you?
Is it hard finding and hiring employees?
What is the hardest thing about running this franchise?
Would you buy this franchise again?
Finding a Franchise Attorney
Ask current franchisees which franchise attorney they used or look for franchise attorney listings under “Suppliers” or “Resources” in print and online franchise directories.
You may want to purchase the ABA’s Forum on Franchising Directory of about 2,000 attorneys who specialize in franchising. Its $35, and available at www.abanet.org/forums/franchising.
Your Final Assessment
Franchising does offer a proven system or business model for doing business. It does limit your risk a bit in that it eliminates trial and error and guess work while in the early stages of starting and running a business. You will have to work hard and be persistent with business strategies that get you the best results. Always keep reality in mind and don’t shoot for the stars. Choose the right franchise for you and always be prepared for the worst.
Franchising Give Yourself a Chance - To learn more about this author, visit William Bradley's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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