Don't Buy a Franchise In a Hurry
I have been a franchisee for more than a decade. We don't make as much money as a lot of people in the community seem to think, but we do make more than 90% of the households in America. I read all the horror stories on Blue MauMau, and contrast how people are buying bogus franchises with how we got into our system.
People talk about dealing with sales people who want to sign them up for that deposit or franchise fee. People talk about how THEN they might work in a store "for a few days", or go to a training that takes a week or two.
And they think that a week or two will make them into business people???
What is really scary are the poor folks who decide to buy a franchise BECAUSE THEY ARE GETTING LAID OFF. That is a TERRIBLE motivation because the fearful job-losing employee will want income IN A HURRY. Franchising has been around for decades, perhaps a century, and yet the job-loser will feel pressure to find the franchise and buy it in as little as a few weeks. No, no, no. It can take YEARS to find the right business opportunity.
About that salesperson and that fee: For contrast, in the McDonald's system you have to be approved as a Registered Applicant before you will be considered to buy a store, and you don't pay the fee UNTIL you buy a specific store. And to BECOME a Registered Applicant you have to first prove yourself to be operationally qualified.
You might work in the stores for a year, not a week. You go through four levels of courses and you don't just walk in and attend the course. You have to prove yourself operationally qualified and pass an assessment as to your operational knowledge, before even being allowed into the course. You can't just read manuals in your office or at home, you have to prove yourself in the restaurants. And this is BEFORE you are ALLOWED to pay a franchise fee to acquire a restaurant.
Contrary to sentiment from some of Blue MauMau's columnists and commentators, I am NOT a big fan of "due diligence" to the extent that it implies that if you just hire enough consultants, you can indeed walk right into a business that you knew nothing about 2 weeks ago, and the "diligence" will save you and make your success guaranteed.
Nope. People do come into McDonald's from outside but they gain their own knowledge of the industry before they buy a store. They don't throw it over a consultant's transom and ask if it is okay. And let's face it, most McDonald's franchisees came with prior McDonald's experience.
Corporate franchisor employees aspire to become franchisees (and often do). General Managers with decades of experience buy their stores when the prior franchisee retires. Whether or not they buy their parents' stores, second and third generation franchisees DO buy McDonald's stores.
I am VERY skeptical when people who know NOTHING about an industry except what the franchisor told them, or that plus what they looked up on the internet in two days, think they can run a successful business in that industry just because it is a franchise. And I am ESPECIALLY skeptical about folks who were employees all their lives and who, now that they are laid off, think they will magically be transformed into employers overnight, by virtue of a franchise.
Folks, being laid off doesn't qualify an employee to be a business owner. Being dissatisfied with how your employer treated you as an employee doesn't make you qualified to be an employer yourself. People who run successful businesses have often been entrepreneurial all their lives, they didn't become transformed just because they couldn't find a job. (Lots of them quit good jobs because they preferred to be on their own, the opposite of going on their own because they couldn't find a job.)
So: Don't buy a franchise in a hurry. Be darn careful about buying into an industry you didn't know much about UNTIL you became interested in a franchise in that industry. Be careful of franchisors that want your fee NOW, and then they'll find you a location later.
Franchising can be lucrative because owning a business can be lucrative. Buying a franchise is buying a business. Just because a business is a franchise doesn't guarantee success. Oh yeah, and "concept" isn't worth squat. It's all in the EXECUTION!
Great Blog Beany
Right business franchise opportunity?
Within the current economic scenario, you will find franchises doing business everywhere. It is only natural to become attracted by the huge business potential. With so many options out there, spotting and buying the right franchise business can be quite difficult.
So what makes the right business franchise opportunity? While it is important to pick a brand that has wide visibility and is a pioneer in its field, it is equally crucial to put your money into something that matches your skill level, fits with your lifestyle, and rightly complements your business goals.
After a self evaluation, it is time to chalk out a business strategy. The strategy as a whole can be broken down into three separate parts: an entry strategy, long-term planning, and an exit policy. Finding the right business franchise opportunity falls into the category of entry strategy. This strategy also includes the buying of the franchise and starting the business.
Right Franchise Opportunity
is one who is honest with you. That wants you to succeed. That isn't into selling franchises but into helping you reach success. No gouging.
All franchises have the possibility of being lucrative and they all have the possibility of failing. Most of the time the making or breaking of a franchise is the franchise owner and his ability to overcome problems that present themselves, not to mention staying dedicated to the franchise at all times. There are three basic types of franchises, including wholesale distribution, products, and services. The type of franchise you should pick is not the one that has the supposed possibility of making you the most money because this simply won't work. The most lucrative franchise for anyone is the one they find enjoyable and don't mind dedicating all their free time to making a success.
You obviously are not taking any mind expanding pharmaceuticals
Where did you find such drivel?
Richard you are too tolerant
Be fair; she thinks she has an audience of idiots. People either come here to be educated or they were recently 'educated' and that would give them a head start to whatever she wants to sell. But this nice lady did present one piece of wisdom worth remembering ... but I can't remember what it was.
If you are working with a rogue zor
all the dedication will not help. You'll always loose. The rogue zor is the only one that makes quick money. The quick money is your X $$$. : (
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Making Sure the Skills and Understanding Are There
There are excellent points brought out in this op-ed piece. Working in a franchise system can help franchise buyers understand what they are getting themselves into and to better hone their entrepreneurial skills.