Fact and Fiction with Franchise Ownership
Fact and Fiction with Franchise Ownership
Buying a Franchise is Safer than Starting a Business from Scratch. Almost every potential franchisee I talk with has heard this. And it is factual. The whole point of a franchise is that you limit your risk by buying a system that is already established. The instruments for success already are in place and there’s no need to spend years reinventing the wheel with product, pricing, marketing, and so on.
But don’t make the mistake of thinking that “franchising is safer” means “franchising is safe.” There are no guarantees. As we state in the franchise book - The Educated Franchisee - ‘Risk is not the same for everyone’. The location of your business, the time you have to devote, your management skills, and changes in the marketplace will affect your business.
Franchising gives you the opportunity to work for yourself, but not by yourself. A good franchisor will provide a proven business model that has worked for many franchisees. They will teach you how to be competent working within that model. Additionally, a respectable franchisor will offer on-going training and support.
In many franchises, especially if territories don’t overlap and franchisees don’t compete with one another, your fellow franchisees will constitute another wonderful resource, assisting you get trained in your particular franchise.
So you will work for yourself, but not by yourself. But don’t interpret this to mean that you call the shots and the franchisor is there to help you no matter what. The franchisor has rules and procedures that are designed to protect you and your fellow franchisees. And remember that the only business model the franchisor knows how to support you on is the model you purchased. If you depart from that model and things aren’t working, the franchisor will tell you to get back to the model. It’s advantageous for the system, and honestly, you can’t ask the franchisor to know how to assist you be prosperous in an altered model. One of the most crucial parts of your franchise education is to understand this: You must know how to lead while following. Lead your employees and your business but follow the system. Anything other than this will defeat the purpose of buying a franchise.
Owning your own business means making money while working the hours that are best for you.
How many times have I heard “flexible hours” cited as someone’s reason for wanting to buy a franchise. That’s fine - as long as you realize that’s a long-term goal for most franchises (or any other business, or a new job, for that matter). Having a business involves hard work. The long vacations and extra time with family may come in time, but new franchisees should expect to put in a lot of overtime, at least for a few years.
And not only will you not make money right away, you’ll need to invest money. You will need to pay an initial franchise fee, and, contingent on the business, you may have to sign a lease, pay for signs, inventory, marketing, salaries, and royalties, all before you’re making any money. It may require several months to several years for a franchise to begin making a profit.
Before you invest in a franchise, look hard at yourself. If you have some tolerance for risk; are willing to follow a system and work hard; and have sufficient capital to carry you until you make a profit, franchising may be the vehicle that assists you reach your goals. Just be smart and realize that, unfortunately, there is no magic bullet.
Fact and Fiction with Franchise Ownership - To learn more about this author, visit Rick Bisio's Website.
Like this article? Share it with your friends
Gathering great franchise information and choosing a proven franchise concept is perhaps the best route to successful business ownership. There are many advantages to buying a proven business but many people are surprised to find out that buying a franchise does not ensure success. This is a fairly frequent misperception. This article studies some of the facts - and misperceptions.
Buying a Franchise is Safer than Starting a Business from Scratch. Almost every potential franchisee I talk with has heard this. And it is factual. The whole point of a franchise is that you limit your risk by buying a system that is already established. The instruments for success already are in place and there’s no need to spend years reinventing the wheel with product, pricing, marketing, and so on.
But don’t make the mistake of thinking that “franchising is safer” means “franchising is safe.” There are no guarantees. As we state in the franchise book - The Educated Franchisee - ‘Risk is not the same for everyone’. The location of your business, the time you have to devote, your management skills, and changes in the marketplace will affect your business.
Franchising gives you the opportunity to work for yourself, but not by yourself. A good franchisor will provide a proven business model that has worked for many franchisees. They will teach you how to be competent working within that model. Additionally, a respectable franchisor will offer on-going training and support.
In many franchises, especially if territories don’t overlap and franchisees don’t compete with one another, your fellow franchisees will constitute another wonderful resource, assisting you get trained in your particular franchise.
So you will work for yourself, but not by yourself. But don’t interpret this to mean that you call the shots and the franchisor is there to help you no matter what. The franchisor has rules and procedures that are designed to protect you and your fellow franchisees. And remember that the only business model the franchisor knows how to support you on is the model you purchased. If you depart from that model and things aren’t working, the franchisor will tell you to get back to the model. It’s advantageous for the system, and honestly, you can’t ask the franchisor to know how to assist you be prosperous in an altered model. One of the most crucial parts of your franchise education is to understand this: You must know how to lead while following. Lead your employees and your business but follow the system. Anything other than this will defeat the purpose of buying a franchise.
Owning your own business means making money while working the hours that are best for you.
How many times have I heard “flexible hours” cited as someone’s reason for wanting to buy a franchise. That’s fine - as long as you realize that’s a long-term goal for most franchises (or any other business, or a new job, for that matter). Having a business involves hard work. The long vacations and extra time with family may come in time, but new franchisees should expect to put in a lot of overtime, at least for a few years.
And not only will you not make money right away, you’ll need to invest money. You will need to pay an initial franchise fee, and, contingent on the business, you may have to sign a lease, pay for signs, inventory, marketing, salaries, and royalties, all before you’re making any money. It may require several months to several years for a franchise to begin making a profit.
Before you invest in a franchise, look hard at yourself. If you have some tolerance for risk; are willing to follow a system and work hard; and have sufficient capital to carry you until you make a profit, franchising may be the vehicle that assists you reach your goals. Just be smart and realize that, unfortunately, there is no magic bullet.
Fact and Fiction with Franchise Ownership - To learn more about this author, visit Rick Bisio's Website.
Like this article? Share it with your friends
| |||
 |
No article feedback found. | ||
|
Leave Your Feedback | ||
|
|||
 Benefits and Responsibilities of Franchise Ownership
| |||
| The benefits and responsibilities of being a franchise owner are vast. Though you get a system of business to start with, but you will be responsible, if any term of the franchise agreement is broken. The support of... |
|||
|
Franchising Advantages in a Bad Economy
| |||
| This article discusses the half full half empty aspect of opening a franchise business in a weak economy. |
|||
|
Do You Need Experience to Own a Franchise?
| |||
| Many people think that because they don’t have a formal education or do not have a lot of business experience, then their options for business ownership are very limited. However, that isn’t necessarily the case wit... |
|||
|
Why buy an existing business?
| |||
| With a multitude of options to choose from, the relevant question will be which type of small business you should wish to acquire. It can become somewhat overwhelming with all of the possibilities. |
|||
|
Pros and cons of franchise ownership
| |||
| There are various pros and cons of franchise ownerships. While it’s true that starting a franchise is better than setting up a stand-alone business; it’s equally true that franchise business has its limitations. So,... |
|||
| |||
Anne BarrAnne 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 |
|||
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 |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
 Rick Bisio (Visit Rick's Website) As one of the most respected franchise consultants in the United States, Rick Bisio has guided thousands of people to great decisions regarding business ownership and franchising. Rick has owned both franchised and non-franchised businesses. He has bought, sold and invested in businesses and worked as an advisor to others seeking the same. (Full Bio) Mr. Bisio is also the author of the acclaimed franchise book. (Learn more – The Educated Franchisee). The Educated Franchisee is an extension of the work that Mr. Bisio does on a daily basis in his franchise consulting business. In this book Rick freely shares his experiences and advice regarding business ownership and franchising. Rick also authors a monthly newsletter. (Sign up– The Educated Franchisee Newsletter.) Rick is a regular speaker on the topics of business ownership and franchising and currently lives on a small resort island in Florida with his family. If you wish to speak directly with Rick Bisio in order to discuss franchising, please feel free to Rick at (941) 778 4660 or email at rbisio@educatedfranchisee.com. Always remember – there is nothing more expensive than ignorance.
|  |
 |
|
|
 |
|
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
 |
 | ||
|
||
 |
||
 |
||
|
| ||
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 |
 Franchise & Distribution Internet Marketing Campaigns Reference Check Form Your Life Your Legacy Performance Improvement Plan |
|
 | ||
 |
Top 50 Franchising Blogs
Top 50 Franchising Blogs | |
 |
Top 50 Marketing Blogs
Top Blogs To Watch In 2008 | |
| ||
 |
|
|
|
|
||||||||||||||||||
 |
|
|
||||||||||||
