Three Reasons Why You’re Buying A Franchise

Say what you want, but these three reasons are behind your desire to buy a franchise:

1. You want to belong to something that’s larger than you, i.e. a network of successful franchisees. It’s admirable.
2. You want to be led by someone larger than you, i.e. a franchise coach, and other successful franchisees. It’s different.
3. You seek relationships with like-minded successful people, i.e. you want to operate a franchise just like they do. It’s admirable and different.

Emotion drives buying decisions

I’m not making up these reasons to have something for my blog. I’ve studied the process for more than 30 years. As I’ve researched articles and books, I’ve asked countless franchisees, “Why did you decide to buy that franchise?” As the former CEO of a major franchise company, I listened carefully to franchisees who told me what triggered their buying decisions. The reasons almost always were based on observations that fed into their emotions.

“When I saw the Bible on your desk, I knew this was the right franchise for me,” more than one franchisee told me. Fortunately, I don’t keep a Bible on my desk for show. I read it. But that’s no reason for anyone to buy a franchise.

Experts agree with these reasons

Recently, I reached out to an expert on this topic to get his thoughts about the reasons why people buy franchises. Fred Berni is the founder of Dynamic Performance Systems, a Canadian-based company that helps franchisors select the best franchise candidates using personality profiling. He told me, “I agree (people buy franchises because) they want to belong to something larger than them, and they want to be led.” As for seeking relationships, he continued, “It would be a big factor in their decision, but not the primary motivator. They want to perceive themselves as entrepreneurs, but are uncomfortable with actually being one. They ‘need’ the support that a franchise gives. There’s a good reason for the expression, ‘in business for yourself, but not by yourself.'”

People buy emotionally first, logically second

Even that expression taps into emotional drivers. It works because people buy emotionally first — logically second. And that’s what gets so many franchisees into trouble!

Emotions lead people to buy the “hot franchise” — a term frequently used by people searching for franchise opportunities. But when it’s time to actually operate the franchise successfully — profitably — they realize they can’t, or they don’t want to, or they can’t afford to, or that the product or service really isn’t something they’d like to sell. And that’s when it all falls apart. If only they had paid attention to the logic before they signed the franchise agreement. But that’s not human nature.

Fooling yourself as to why you’re buying won’t work

If you’re buying a franchise, don’t try to fool yourself. It’ll catch up with you and you’ll end up on the wrong side of the business. You can’t deny your emotions. You’re going to buy what appeals to you — regardless of the reason.

Maybe it’s because, as Fred Berni says, you want to see yourself as an entrepreneur. It’s a prideful thing to be an entrepreneur! America, we’re told, was built by entrepreneurs and thrives because of entrepreneurs. The richest people in the country are entrepreneurs. (It’s just a hunch, but if we take a second look, we might discover the poorest people include many who were also entrepreneurs).

People buy to be admired; to be different

You want to be an entrepreneur because you, too, want to be admired (like the guy who drives a Rolls Royce), or you want to be different (like the guy who drives the Hummer), but if you fall short of performing successfully as an entrepreneur, you’ve got a serious problem.

So go ahead, buy the “hot franchise,” but do yourself a favor. Justify it first. Figure out what it will take to be “admired” and “different” before you buy the franchise. ‘Cause as much as he may want to, and as good as he may be at leading you, the guy with the Bible on the desk in the CEO’s office isn’t showing up on site and operating your franchise for you!

Register now for free tele-seminar

. . . Register immediately for my free franchise tele-seminar: How To Buy A “Hot” Franchise And Not Get Burned!  I’m giving subscribers to my blog the first opportunity to sign up for the tele-seminar and get an unbelievable package of information about franchising — all free. Later this week I’ll begin promoting the tele-seminar to thousands of prospective franchisees and once the available slots are filled the tele-seminar will be closed. So this is your early notice — sign up now and take advantage of this opportunity. 

Photo image by: DanieVDM

Categorised in: Buy a Franchise

This post was written by Dr. John Hayes