I am Pro-Franchise. I believe in franchising as a business model. I believe that franchising is selfish….
1. The franchise company selfishly wants their franchisees to be as
successful as possible, so the franchise company can make tons of
royalty income.
2. The franchisee selfishly wants to make as much money as possible for their investment of money ands time.
So, if a franchise company awards {not sells} a franchise to a
quality candidate, and the candidate succeeds as a franchisee,
everybody wins. Both "partners" have reached their goals. The franchise
company receives nice royalty income, and the franchisee makes a nice
living.
Good stuff, and it does happen.
Sometimes, though, a franchise looks good on the outside, but really isn't.
Lots of people buy Quiznos or Subway because they perceive that it will be an instant success.
"They
always seem to have cars in their parking lots, and there is always a
line of customers waiting for their subs. MMMMMMMMMMM. I am sure I can
make tons of money"!
Then after they purchase the franchise,
reality sets in, and the 16 hour days, and the 7 day a week commitment
begin to take a toll.
{As does the HR function. Turnover..geez, just finding quality help is a life mission in that type of business}
That is not being negative. That is the reality.
So, the potential for failure is usually high, because most Quiznos or Subway owners have never been in the restaurant business.
This fact increases the % of failure rates that are seen.
The fault can be blamed on both parties.
- Franchise Dev. managers that need to "sell" to make a living. They are "selling" in most cases, not "awarding".
2. The franchisees themselves. They decide to find the ultimate opportunity on their own, as opposed to working with a franchise industry expert to help match
them to the right opportunities. I always tell folks when I lead a
seminar on franchising that selecting a franchise because "you have
heard of it", or because it is "hot" is not the right way to get into
business in most cases.
A Quiznos or Subway franchise can be wonderful, for the right person.
"Not
all franchises are created equal. Some our great, some are lousy.
Investigate the options, get the facts, get legal representation from
franchise lawyers, get help from industry experts/consultants, and get
90% of your research information from the current and past franchisees.
Then decide".
Weigh your options!
About The Franchise King®
