Is a Franchised Business Right for You?

Making the Right Decision

Franchising is an increasingly important part of the world economy.  One out of every twelve businesses is a franchised business and the growth in franchising shows no signs of slowing down. 

The business world has become increasingly complex and competitive.  These changes are helping drive the growth in franchising because good franchised systems provide a leg up on the non franchised competition.  Franchised systems include management experience, access to shared services, improved buying power and a myriad of other benefits not available to solo mom and pop shops.  However, your success in a franchised business is not guaranteed even in a good franchise system.  Think through the following to help your self decide if a franchised business is right for you.

·         Do you understand and value what the franchisor brings to the table.  Take a step back and look at the relationship from the 10,000 foot level.  A franchised business relationship is in many senses a partnership.  It’s important to have a clear understanding of what your partner brings to the table.  This will help to avoid misunderstanding down the road.  Make sure that you identify at least three or four significant items that you will benefit from.  If you can’t identify this many things you either don’t understand your partner or you have a potentially bad deal in front of you;

·         Make that being in business is for you.  Are you ready to take responsibility for your results?  Does the traditional job market hold you back?  Are you ready to accept the increased upside that comes with business ownership as well as the lower certainty that comes with an employer’s paycheck?

·         Are you willing to follow a system?  If you want to blaze your own trail franchising is not for you.

·         Is your family behind you?  They’ll be affected so get the involvement and buy-in.

·         Are you willing to perform a variety of tasks?

·         Have you completed a detailed personal business inventory?  It is critical that you think ahead a couple of years to identify the kind of life you want in the future.  Will the franchise you are considering deliver the life you want? Avoid buying into a “hot” trend or preconceived ideas about what owning the business would be like.  Do research on yourself and on the company.  Are they in alignment?

I hope this information was helpful.  If I can assist you in evaluating business ideas call (888-586-5182) or email me.  We can discuss your particular goals and kick ideas around.  No Cost! No Pressure! No Sales Pitch!