On Franchise Negativity

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Roger Ebert Rush Should Be Horse-Whipped For Insulting Obama
 

 
Some people feel that I’m a bit negative with regards to franchising. I’m fine with that, as they’re typically not the ones that I’m trying to protect. Maybe if the franchise industry wasn’t so fluffy all the time…

 

Merriam Webster defintion of fluffy

(Courtesy of the Free Merriam-Webster Dictionary)

 

While some of the fluffiness has gone by the wayside, some of it most certainly has not. Words like, “Turnkey,” are still used quite too often in franchise marketing literature. And, once in awhile, some of the newbies in franchising quote very old, and totally unproven franchise success rates. Lame.

 

 

Someone Has To Do It

 

 

I don’t like spin. As a matter of fact, Spin Sucks.

 

I prefer reality. (I didn’t used to, but that’s another story.)

 

In franchising, the reality is this; new franchise units need to get sold, and sometimes they’re sold to the wrong people.

 

The flip side of the equation has to do with who’s buying the franchises. Not everyone that’s looking for franchises to own right now–as you’re reading this blog post–should be looking at franchise ownership as a path to success in the first place.

 

In a perfect world, only people that have the right personality for franchise business ownership should be buying them. And, only the best people–the most qualified, (not only financially) should be sold a particular franchise. But, that’s not happening all that much. Which is why I do what I do.

 

My Mission;  

 
To make franchising more transparent by aggressively informing all who wish to become franchise owners that there’s definitely risk involved, and then teaching them how to lower it through articles, ebooks, published books, podcasts and my top-notch advisory services. I’m out to create a brand-new generation of super-successful franchisees!  

 

At the same time, I’m gently (sometimes) encouraging franchisors to only choose the best of the best franchise candidates, thereby increasing their chances of mutual success, which in turn, will lower the failure rates in franchising. 

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I love preventing mistakes. For example, I get calls from people that seemingly have their minds made up on specific franchises, all the time. I love getting those calls. I’m able to offer ideas and tips that can help them sleep better at night, once they’ve made their decision. Sometimes, the people that call me for advice are doing a great job with their searches and their research. I tell them as much, and wish them luck.

 

More times than not, however, the people that are getting really close to signing their franchise agreements…their franchise contracts, (which are usually 10-years in length) are missing several steps in the franchise buying process, and are about to set themselves up for failure…or at least, very tough times.

 

I can usually fix that, if they call me in time.

 

Stay tuned, because very soon, I’ll be offering a way for any US franchise buyer to contact me before they do anything. Before they sign anything.

 

Soon.

 

 

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Filed Under: before you sign it, Franchise Purchasing, negativity

Franchise Infographic; The Evolution of Franchising

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The folks over at Sonus sent a great Franchise Infographic over to me on Friday, and it’s one of the best I’ve run across this year.   That’s because it includes some great stats—and even some trends that I feel it’s important for you to know about.   Such as;  
 

 

 

 

  •  A brief history of franchising
  •  Franchise business economic outlook
  •  America’ top 10 franchises
  •  Notable healthcare franchises
  •  Hearing-loss franchise opportunities


 

 

Here it is!

 

 

 

 

 

 

 

via

 

Sonus Franchise provides the professional structure, support and resources to reduce the risk that many fear about private practice. It provides the tools to manage and expand existing private practices and it allows seasoned practice owners a great method to transition a private practice to a new audiologist owner. Sonus Franchise is committed to making all locations successful. From branding and marketing assistance to the industry-first medical franchise model, they will provide all the tools necessary to run a business more effectively, efficiently and profitably.

Plan your business and impress investors with Business Plan Pro Premier

Filed Under: 2012 Franchise Trends, Franchise Infographics, the top 10

40 Important Questions To Ask Current And Former Franchisees

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Have you read my book, yet?

 

Joel Libava's franchise book, barnes and nobole

(That’s me, at a Cleveland, Ohio Barnes and Noble.)

 

If you have, surely you remember all 40 questions that I included for you to ask franchisees of the franchise business opportunity you’re looking into, right?

 

Well, if you;

 

A. Haven’t bought my franchise book yet

 

Or

 

B. Don’t remember each and every stellar question that I included–don’t worry; I’m going to refresh your memory.
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When it comes to doing franchise research, you have a few choices going in;

 

1. You can wing it. In other words, you can figure it out as you go. (That sounds like a great plan, huh?)

 

2. You can go online, or even head over to your local library, and see what type of information is available concerning franchise due diligence.

 

3. You can ask the franchise development director of the franchise you’re interested in how to go about doing research on their franchise.

 

4. You can choose to call no franchisees. And do no real research. And just buy the damn thing.

 

5. You can subscribe to this franchise blog, so you won’t miss out learning 40 of the best questions to ask franchisees that (as of this writing), are available anywhere.

 

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In the next few weeks, I’ll be going through all 40 questions that you must ask the franchisees that you’re going to call. I’ll share the questions, tell you why it’s so important to ask them, and show you how to use the answers that you’ll be getting to your advantage.

 

You want to be a wildly-successful franchise owner, right?

 

You want to lower your risk, correct?

 

Let’s get started!

 

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Top 40 Questions to Ask Current And Former Franchisees 

 

 

1. What is your professional background?  

 

The reason that I want you to ask this question of the franchisees that you’re going to be calling is a fairly simple one; I want you to see if the franchisees that you’ll be calling have backgrounds that are similar to yours.

 

I’m not suggesting that you’re going to call a franchisee or two, and find out that they came from the same industry as you, and that they even held pretty much the same position. (If a coincidence like that does happen–great! But, don’t expect it.)

 

What I am suggesting, is that it’s possible that some of the franchisees that you connect with will have similar general backgrounds to yours. For example, let’s say that you just got downsized from a position of VP of Manufacturing at a Fortune 500 company. As luck would have it, the 3rd franchisee that you called was also a VP of Manufacturing. That’s great! You’ll have an instant bond. You’ll find that it will be relatively easy for you to get crucial information from this franchisee. That’s because you’ll have lots of stuff to talk about–and none of it will have to do with franchising, if you get my drift.

 

If you can form an instant and meaningful bond with a couple of the franchisees that you’ll be talking to, you’ll get the answers you need to make a decision on the franchise opportunity you’re looking at.

 

Finding out a franchisee’s professional background can open up a lot of doors for you.

 

Doors that need to be opened.

 

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Subscribe now, so you won’t miss any questions that you must ask current and former franchisees.

 

 

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Filed Under: Franchise Purchasing, Franchise Research, top 40 franchise questions

There is So Much Pressure

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Starting a business is a pressure-filled experience. There’s no way to avoid it. Forget the money part for a moment. The commitment to become the owner of your own business…to own what you do– is huge.

 

Once you’ve written that check, you’re an owner. It’s yours. There’s no going back. No redo. No waking up the next day to find that it was all just a dream.

 

Being your own boss was your dream, remember?

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Don’t Add To The Pressure

 

You’re going to feel chest-crushing pressure from day one. If you took out a small business loan, there’s pressure to repay it.

 

If you tapped into a portion of your IRA or 401(K), you’ll feel some pressure.

 

 

 

 

If you invested in your business, without you’re spouse’s blessing, the word, “Pressure” doesn’t quite describe what’s going on in your mind–and in your home.

 

And, if you bought the franchise that you’re now the proud owner of because you couldn’t find a good job… that’s way too much pressure to deal with as you begin your entrepreneurial journey.

 

So don’t become a franchise owner because you couldn’t find a job. It’s really a lousy reason to do it.

 

And the pressure may end up being too much for you.

 

Become a small business owner because you want to. 

 

And, read my book, Become a Franchise Owner!

 

You’ll learn how to reduce your risk, and deal with the pressure.

 

Free Book Chapter!

 

 

Filed Under: Become a Franchise Owner!, Franchise Purchasing

The US Small Business Administration Has Several 50+ Entrepreneur Resources

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If you’re 50+, and you’re not quite sure how your retirement years are going to play out, the SBA has an information page set-up just for you.

 

sba.gov website

 

From SBA.Gov;  

 
“According to a USA Today/Gallup poll, 63% of American adults plan to work in retirement; two-thirds say enjoyment of work is the key reason.”

 

One way for the 50+ crowd to achieve that, “Enjoyment” factor, is to do something entrepreneurial. People that are 50 years old or more have a lot of work-related experience to draw from. While there’s certainly a learning curve involved in owning a business, the potential for it to be shortened definitely exists with an owner that’s experienced and has worked through lots of different work-related challenges.

 

 

Wisdom

 

 

“We don’t receive wisdom; we must discover it for ourselves after a journey that no one can take for us or spare us.” — Marcel Proust

 

If you’re 50 years old, or older, and you’re starting to rethink retirement–how it’s going to look, feel, and taste, click the link below. maybe you’ll get some ideas…

 

SBA.Gov 50+ Entrepreneurs 

 

(Disclosure; I write about franchising for the SBA.Gov Community)

 

 

Starting Costs Calculator 

 


Filed Under: 50+, Entrepreneurship, Franchise Purchasing, SBA.gov, Small Business

Are You Sick of Making Your Boss Look Good?

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The last time I worked for someone else was in 2000. Coincidentally, it’s the last time I remember feeling really, really, resentful about someone else’s success. (Which I helped create.)

 

Let me explain…

 
Supercar Run New York 09.jpg

 

 

I was one of several managers who contributed to the bottom line in the automobile franchises that my boss owned. You’ve heard of, “Multiple income streams,” right? Well, my boss had them. He owned 5 different franchises at the same time, and 3 out of 5 did pretty darn well.

 

He was part of a new breed of automobile franchise owners that were starting to appear on the scene back then; in this case, he was the nephew of an old-time car guy. And, he was very difficult to work for. He seemed to have 3-4 different personalities, and I never knew which one he’d bring in to work.

 

 

He Had a Big House

 

 

His house was big. His wife was well-kept. And, he wasn’t really a nice guy. (Got the visual?)

 

But, he looked good. He wore nice clothes. He was well-groomed. His cars were always spotless.

 

He owned a big house because he made big money. But, he didn’t make a lot of money because he was an amazing businessman. He made a lot of money because he had a good management team. Well, some of his managers were good. Some were real jerks. And mean, too.

 

 

Hate

 

 

Things were not going well there. Business was down, and one of the franchises was on the brink. It wasn’t a very pleasant situation to be in–as a manager. But, the owner didn’t seem to be sweating all that much. He was still Living The Dream. But, I wasn’t. I was really starting to hate the guy. He was putting a tremendous amount of heat on us to keep increasing sales, and they just weren’t there. (Sales don’t happen unless there are customers willing to part with their money. ) The, “Customer” part was definitely missing.

 

I was getting sick of the whole charade. I was working in a franchise that was about to close. (Or get sold) The staff was unhappy. ( And, worried.) But the owner wasn’t; he was doing what he always did. He was coming and going all day long, enjoying the good life. The good life I’m referring to is the one in which he still had a ton of income coming in from his other franchises. He still looked good, and I knew that I didn’t. I was miserable. And, I was sick of making my boss look good. I knew that I had contributed to his wealth–and I had nothing to show for it. (Except high blood pressure and a few grey hairs.) I really hated my life.

 

 

Some Relief

 

 

The day that I was fired was a scary one. As weird as things had gotten, (I left a lot out) I really wasn’t expecting to be called into The Office that Monday morning. When the GM told me that my services were no longer needed, I felt two things, simultaneously;

 

1. A massive amount of fear.

 

2. A huge sense of relief.

 

The fear part had to do with being out of a job, and along with it, having no money to take care of my wife, and my little Franchise Princess.

 

The relief part? It was like a 300 lb weight had been lifted from my shoulders. All the crazy, and really dysfunctional things that I had gone through as an employee of this automotive group, were not going to be part of my life anymore.  That was a good thing, because it really sucked working for this guy. The General Manager who fired me was no treat either.

 

 

Presently

 

 

I’m my own boss, today. I’ve been self-employed since 2001, after being recruited by my late father. I love working for me.

 

And, I never get sick of making my boss look good, anymore.

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Do you need some great reasons to become your own boss? Look 

 

 

Filed Under: careers, employee, the boss

Free Franchise Webinar: Getting To Yes or No With Great Franchise Due Diligence

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franchise due diligence

Proper due diligence can go a long way in almost any major life decision. It’s crucial to get the facts, and as I wrote in my book, “All franchise buyers need to become Fact-Gathering-Machines.”  The research phase is all about facts; it’s certainly not about emotions. That comes later, as you start to visualize yourself as the owner.

 

 

Most of the people that I talk to about becoming franchise owners have one thing in common; they’re confident about their ability to do research. (Or, at least they come across that way.) Interesting. I wonder where they learned how to properly research a franchise-type of business. Especially since 99.9% of them never actually owned one in the past.

 

 

These are the same people who after taking my online franchise quiz, are asked if they’d like some guidance, and decline it.  I just don’t get it. Is it ego? Are some people just stubborn? Or are they cheap, and don’t want to pay for professional, real-world guidance? (That’s right; I said it. Cheap!)

 

 

Why would someone who’s never owned a business before, try to go out and invest in one without proper guidance and coaching? It’s not like buying a franchise is like buying a $300 Network Marketing  Anti-Aging Cream Kit! Franchise business opportunities can cost upwards of $300K. Why risk it?

 

 

 

 

If you, or someone you know, would like to get some valuable tips regarding franchise due diligence, join Direct Capital for a free webinar this Tuesday, (February 21st) at 1:00 PM EST. I’ll be presenting several crucial pieces of information on how to research franchises. You’ll pick up several things that will prove valuable as you get to a Yes or No decision on a franchise.

Go here to register  

 
Starting Costs Calculator

 

Filed Under: Franchise Research, webinars
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