Panel Answers Questions About Buying a Franchise

Q: Are banks more apt to finance a franchise?
A: "They [franchise systems] have a more proven track record. Most small businesses, especially the restaurant business, may have a 90% failure rate as opposed to coming in with a plan and experience behind you [as a franchise]. - Billy Fox, Jr., founder of J. Gumbo's Down Home Cajun Cookin' franchise

Q: Is there a personality profile of someone who does well?
A: "In franchising, you have to be a people person. People skills are important...." "If you are a consummate entrepreneur, you will be in constant conflict with your franchisor." - Prof. Wayne Jones, University of Louisville, who is an ex-franchisor executive and teaches franchising

Q: What are the most popular franchises of late?
A: "The trend I see is into the service sector. To give you an example, I have a client that owns a franchise called Young Rembrandt's..." - Thom Crimans, franchise broker with FranNet

Q: The first caller said he thought he did his homework [in selecting a good franchisor and yet failed] but it's almost like you can't do enough research.
A: "Do your own homework. Talk to some of the owners. Both that are happy and not happy. Track them down and get some information." - Dr. Wayne Jones

A: "There's nothing in the offering circular that tells you what the business is about so you need to talk to franchisees." - Thom Crimans

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