Franchising works for everyone!
Even though it’s wrong, it’s easy to get the idea that franchising works for everyone because the media say so. Newspapers, magazines, television news shows, websites, and other forms of media love a good franchise success story, and so do viewers, readers and visitors.
Know the Facts
What’s not to like? Franchising is one of the best ways to start and develop a successful business in America, or almost any place in the world. But this fact remains: Franchising is not for everyone, and it may not be for you!
People think that because it’s a franchise, someone else runs the business for you. Someone else (i.e. the franchisor) makes the decisions, builds the business, hires the people, attracts the customers, sells the products and services, and even collects the revenues, making sure to pay you, the franchisee, a profit. But it doesn’t work that way.
Who Creates Successful Franchises?
Franchising requires an active, thinking person (i.e. a franchisee) who can make decisions and who has the ability (with the franchisor’s training, ongoing support and guidance) to build and operate a business. It is never an autopilot business, although it’s not the same as starting an independent business from scratch. Independents do not get the training and guidance of a franchisor, and in most cases, it’s the training and guidance that produces successful franchisees who in turn produce successful businesses.
3 Reasons Franchising May Not Work For You
It sounds easy, and many franchisors and franchisees make it look easy, but there are good reasons why franchising may not work for you. Here are a few of those reasons for your consideration:
- You’re not in control. If you’ve got to be in control, don’t become a franchisee. While you do control many of the variables in your business, you do not ultimately contralto he business. The franchisor does. If you can’t follow directions, franchising is not for you.
- It’s not a democracy. You’re one of many in a franchise. You may get a vote, but you may get out-voted. And even if you’re in the majority, you may not get things your way because it’s not a democracy. It’s the franchisor’s business; and the franchisor must make decisions for the good of the entire franchise network, not just you, and not just the people who think like you.
- You can’t always do it your way. Got some unique product you’d like to sell in your franchise? You’re not allowed. Want to set your own opening/closing hours? You’re not allowed. Want to change the colors of the company logo? You’re not allowed. Get the idea? You will do most things the franchisor’s way, and not necessarily your way.
Did you notice that all three issues are related to the same theme? Control! Franchising works because first and foremost, good franchisors know how to build a successful business, and they know how to teach and guide franchisees to replicate their success. Franchising doesn’t work when franchisees are allowed to do what they want, when they want . . . so if you’re the type of person who must maintain control, then you must avoid franchising. It won’t work for you!
Understanding your personality, and matching it to a franchisor’s operating system and philosophy, is one good way to protect yourself before you invest in a franchise. And that’s why I lead all of my coaching students to the Franchise Navigator, a free assessment that tells you if franchising will work for you, and advises you as to the types of franchises that make sense for you. I am an affiliate of the Franchise Navigator, and if you invest in a franchise that the Franchise Navigator recommends to you, I will receive a commission.
Tags: Ideas and information
This post was written by Dr. John Hayes