For many people, franchising is a much better way to do business than starting up their own company. After all, with franchising, you get to work with a proven business model, get support and advice from the parent company, and get to join a winning team. And, at the end of the day, you – hopefully! – get to turn a profit!
But franchising is not the right choice for everybody. In fact, there are plenty of people out there who are pure entrepreneurs – who enjoy building a business from the ground up.
So, how do you know if franchising is the right choice for you?
You need to start by asking yourself if you are OK with taking orders. And, be honest with the answer, because plenty of people aren’t!
Franchising is not exactly the same as owning your own business. Sure, you’ll be responsible for all of the daily issues, but there will be plenty of times when you don’t get to call the shots. There will be times when you have to take orders from the corporate office – like when it comes time to train your employees, handle PR, and market new products and services.
Many franchisees like that hierarchy, because it means that they don’t have to be completely responsible for everything. Other people don’t like it because they want to do everything their way. If you fall into the latter group, franchising may not be a wise move.
Once you’ve decided that you have the right mindset for franchising, you need to find the right business opportunity. After all, there are plenty of franchising possibilities out there. If you fall in with the wrong one, it can be a major financial hit.
That’s why quality research is so important.
In fact, when it comes to franchising, the work starts before you make an initial investment. Any franchise you open has to be backed up with solid research.
Lloyd Claycomb and his family, for example, does their homework in identifying the trend of frozen-yogurt and capitalize on it by opening four Cherry on Top store, a rising 25-store-strong F&B franchise in the fro-yo niche and plan for the fifth one in Phoenix, AZ.
One more thing: You need to look at more than just potential profits. Researching a franchise opportunity means researching the company itself. Do you agree with their business practices? Do you feel comfortable implementing them yourself? Do you think that you can work well with the higher-ups in the corporation?
After all, you might be the franchise owner, but you’ll still be operating under a parent company. If you think there are flaws with their business model, think you might be able to do things better yourself, or don’t think you can establish a good working relationship with the corporate office, you may want to find a new opportunity.
About the Author: Lesley D’Arcy – As a Franchise Recruitment Manager at Mortgage Choice, Lesley D’Arcy is responsible for recruiting franchisees to greenfield (new) opportunities. Her career in franchise recruitment spans over 15 years where she has worked with many major franchise brands. Lesley has a wealth of experience in recruitment of franchisees and builds on this experience by unearthing and developing the latest and most innovative ways to help franchisors build their networks. This experience has given her the skills to become an expert in the field of franchise recruitment, excelling in lead generation, screening, qualifying and selling to prospective franchisees.
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