Considering Franchising? 10 Questions To Determine The Right Fit

๐™๐™๐™š ๐˜ผ๐™ข๐™š๐™ง๐™ž๐™˜๐™–๐™ฃ ๐˜ฟ๐™ง๐™š๐™–๐™ข๐™Š๐™ฌ๐™ฃ๐™ž๐™ฃ๐™œ ๐™”๐™ค๐™ช๐™ง ๐™Š๐™ฌ๐™ฃ ๐˜ฝ๐™ช๐™จ๐™ž๐™ฃ๐™š๐™จ๐™จ

According to The UPS Stores’ Inside Small Business Survey (April 29-May 5, 2018) approximately two-thirds (66%) of Americans dream of opening a small business.ย  ย The company conducted the research as part of their initiative to celebrate “Small Business Month” in order to capture Americans’ feelings about starting and shopping at small businesses.ย  2018 survey respondenets revewled that they would operate a small business as a home-based business (56%), followed by brick-and-mortar (30%) and then an e-commerce business (20%).ย  It found 3 out of 4 Gen Xers dream of owning their own business compared to Baby Boomers and Millenenials and over half are eagere to open a business in the coming year.

Dr. Luke Pittaway, Ohio University College of Business Copeland Professor of Entrepreneurship commented that โ€œIt should come as no surprise that Gen Xers (born 1965-1984) are the generation that feel the most optimistic and most willing to branch out and start their own small business,โ€ said Dr. Pittaway. โ€œThis portion of the workforce is most likely well established in their career, financially equipped and starting to think about how theyโ€™ll spend the final stages of their career. In many cases, even when Gen Xers and Boomers reach retirement age, instead of grabbing their golf clubs or boarding a cruise ship, theyโ€™ll be looking for their next professional act. More and more weโ€™re seeing that later career stages and retirement is the time professionals open a small business, and for many itโ€™s the first time.โ€

๐˜ฝ๐™ช๐™จ๐™ž๐™ฃ๐™š๐™จ๐™จ ๐™Š๐™ฌ๐™ฃ๐™š๐™ง๐™จ๐™๐™ž๐™ฅ ๐™ˆ๐™ค๐™ฉ๐™ž๐™ซ๐™–๐™ฉ๐™ค๐™ง๐™จ

For those working in corporate America and not yet nearing retirement age, there are a multitude of reasons they will leave their job or start a business while transitioning out.

โ–ธBuild an asset for future saleย 
โ–ธLifestyle flexibilityย 
โ–ธFair reward โ€“ work hard and make money for themselves rather than the company
โ–ธEmotional fulfillment of building their own dream
โ–ธSatisfaction and happiness in day-to-day activities
โ–ธDevelop an asset to pass on to family members
โ–ธCreate an opportunity to work with family
โ–ธRemove threat of job loss
โ–ธReplace lost income stream

๐˜ฝ๐™ช๐™จ๐™ž๐™ฃ๐™š๐™จ๐™จ ๐™Š๐™ฅ๐™ฉ๐™ž๐™ค๐™ฃ๐™จ

It’s not always easy to come up with a great business idea. Even if you were to envisage an excellent business concept, it can take a long time to get it off the ground and gain traction. Many aspiring entrepreneurs get discouraged and give up long before success is on the horizon.

Opportunely, franchising offers a way to invest in achieving dreams of business ownership by providing an established and proven concept. Franchisors award all the tools to run the business providing the system is followed and the effort is put forth.

๐™๐™ง๐™–๐™ฃ๐™˜๐™๐™ž๐™จ๐™ž๐™ฃ๐™œ๐™๐™ž๐™œ๐™๐™ฉ ๐™๐™ž๐™ฉ ๐™๐™ค๐™ง ๐™”๐™ค๐™ช?

Franchising is not a business or industry in itself but an efficient distribution business strategy by the Franchisor leveraging growth through its stakeholdersโ€™ resources of knowledge, experience, effort, purchasing power and finances.ย  Itโ€™s more of a strategic partnership of those having similar goals & unified thinking among the brands participants.

But while some are willing and content to follow an operations playbook, franchising isnโ€™t the right option for every would-be business owner. The Forbes Coaches Council suggests prospective franchisees ask themselves the following eight questions before investing.ย  (Forbes Coaches Council is an invitation only, fee-based organization consisting of leading business and career coaches.)

๐Ÿญ.ย  ๐˜ฟ๐™ค ๐™”๐™ค๐™ช ๐™๐™š๐™š๐™ก ๐˜ผ๐™ก๐™ž๐™œ๐™ฃ๐™š๐™™ ๐™’๐™ž๐™ฉ๐™ ๐™๐™๐™š ๐™๐™ง๐™–๐™ฃ๐™˜๐™๐™ž๐™จ๐™š’๐™จ ๐˜พ๐™ช๐™ก๐™ฉ๐™ช๐™ง๐™š?

You may not be aware that each franchisor has an ideal franchisee in mind and like any company they have their own โ€œcultureโ€.

Culture fit is critical to succeeding in any venture, and part of that is how success is measured.ย The franchiser has already identified and enacted the criteria it considers relevant, and there usually isn’t a lot of room to change that.ย Aligning with that methodology will be crucial to one’s ability to be good, profitable community partners and enjoy personal satisfaction in the business. –ย Lynita Mitchell-Blackwell,ย Leading Through Living Community

๐Ÿฎ.ย  ๐˜ผ๐™ง๐™š ๐™”๐™ค๐™ช ๐™‹๐™ง๐™š๐™ฅ๐™–๐™ง๐™š๐™™ ๐™๐™ค ๐™‹๐™ช๐™ฉ ๐™„๐™ฃ ๐™๐™๐™š ๐™’๐™ค๐™ง๐™  ๐™๐™ค ๐™‚๐™ง๐™ค๐™ฌ ๐˜ผ ๐˜ฝ๐™ช๐™จ๐™ž๐™ฃ๐™š๐™จ๐™จ?

A franchise location is a business that is all set-up (systems-accounting, payroll, POS, IT; operations, marketing, HR, etc.) for someone to run but the franchisee still needs to put in time and effort according to the model.

The allure of franchising is that you have a ready-made system for success. In reality, it’s still up to you to sell and make it work. New businesses are about cash flow and customers. Franchises helpย you shortcut the business framework, and you pay for that expertise with your franchise fees, but don’t be lulled into the sales pitch. You still have to grow it. –ย Jodie Charlop,ย Exceleration Partners

๐Ÿฏ. ๐˜ผ๐™ข ๐™„ ๐™Š๐™ ๐™–๐™ฎ ๐™’๐™ž๐™ฉ๐™ ๐™‡๐™ž๐™ข๐™ž๐™ฉ๐™š๐™™ ๐™๐™ก๐™š๐™ญ๐™ž๐™—๐™ž๐™ก๐™ž๐™ฉ๐™ฎ ๐˜ผ๐™ฃ๐™™ ๐˜พ๐™ง๐™š๐™–๐™ฉ๐™ž๐™ซ๐™ž๐™ฉ๐™ฎ?

You may be accustomed to looking at a situation and suggesting improvements.ย  Problem-solving skills wonโ€™t be needed here if it modifies the model. One franchise area develop manager tells potential franchisees that he doesnโ€™t want them to bring him any suggestions for changes for at least a year after award.

Opening a franchise means that there’s a formula by which the business operates. Branding, operating procedures and training for employees are often included, which provides you with an established baseline by which to run your business. On the other hand, you’re limited with regard to creativity, may have on-going franchise fees and often have less flexibility with regard to location and expansion. –ย India Gary-Martin,ย Leadership For Life

๐Ÿฐ. ๐™’๐™๐™–๐™ฉ ๐˜ฟ๐™ค๐™š๐™จ ๐˜ผ ๐™๐™ฎ๐™ฅ๐™ž๐™˜๐™–๐™ก ๐™๐™ง๐™–๐™ฃ๐™˜๐™๐™ž๐™จ๐™š๐™š’๐™จ ๐™‡๐™ž๐™›๐™š๐™จ๐™ฉ๐™ฎ๐™ก๐™š ๐™‡๐™ค๐™ค๐™  ๐™‡๐™ž๐™ ๐™š?

During validation there is the opportunity to speak with numerous franchisees by phone and visits are certainly arranged once the franchisor knows their brand is under serious consideration.

Visit with other franchise owners in the same chain you’re considering. Shadow them for a day. Find out what their typical day looks like, what challenges they face and what their family life consists of while managing their business. Does that lifestyle fit your outlook for the next three to five years? If not, look at a different business. –ย John Hittler,ย Evoking Genius

๐Ÿฑ. ๐™’๐™๐™–๐™ฉ ๐™†๐™ž๐™ฃ๐™™ ๐™Š๐™› ๐˜พ๐™ค๐™ง๐™ฅ๐™ค๐™ง๐™–๐™ฉ๐™š ๐™Ž๐™ช๐™ฅ๐™ฅ๐™ค๐™ง๐™ฉ ๐˜ฟ๐™ค ๐™๐™ง๐™–๐™ฃ๐™˜๐™๐™ž๐™จ๐™š๐™š๐™จ ๐™๐™š๐™˜๐™š๐™ž๐™ซ๐™š?

Most franchisors have great support system in place with internal and external sources.ย  Some have what can be considered support personnel that control rather than support.ย  This is a question that can be asked of current franchisees during the validation phase.

The right franchise can lead to success. The wrong franchise can lead to suffering. Franchises can be helpful in providing resources, marketing and support.ย The biggest determining factor to consider is if the home office has the heart to help the franchisees succeed. –ย Ken Gosnell,ย CEO Experience

๐Ÿฒ. ๐˜พ๐™–๐™ฃ ๐™„ ๐™Ž๐™ฉ๐™–๐™ฎ ๐™ˆ๐™ค๐™ฉ๐™ž๐™ซ๐™–๐™ฉ๐™š๐™™ ๐™€๐™ญ๐™š๐™˜๐™ช๐™ฉ๐™ž๐™ฃ๐™œ ๐™Ž๐™ค๐™ข๐™š๐™ค๐™ฃ๐™š ๐™€๐™ก๐™จ๐™š’๐™จ ๐™„๐™™๐™š๐™–?

A franchisee needs to be able to follow a system already in place.ย  Those wanting to modify the current protocol or create a new one will not be happy long term.

Not all entrepreneurs are good at running the play that someone else calls. In the franchise model, much of the ideation and strategy work has already been done, which is a huge benefit. Look back over your career to determine if you struggle to stay engaged and motivated when you’re executing someone else’s idea. The successful franchisee has to be okay coloring inside the lines to some degree. –ย Trellis Usher,ย T.R. Ellis Group LLC

๐Ÿณ. ๐™’๐™๐™–๐™ฉ ๐˜ผ๐™ข ๐™„ ๐™’๐™ž๐™ก๐™ก๐™ž๐™ฃ๐™œ ๐™๐™ค ๐™‚๐™ž๐™ซ๐™š ๐™๐™ฅ ๐˜ผ๐™จ ๐˜ผ๐™ฃ ๐™€๐™ฃ๐™ฉ๐™ง๐™š๐™ฅ๐™ง๐™š๐™ฃ๐™š๐™ช๐™ง?

Most franchise experts would say that theย franchisee in not the entrepreneur but rather the franchisor who developed the concept.

Franchises can be one of the most rewarding types of businesses to own. If you want to be the ultimate decision maker on all things related to your business, then a franchise is probably not your best choice. Strategize about what you’re willing to give up in exchange for what the franchise offers before you decide. –ย Lillian Gregory,ย The Institute for Human and Leadership Excellence

๐Ÿด. ๐˜ฟ๐™ค ๐™๐™๐™š ๐™๐™ง๐™–๐™ฃ๐™˜๐™๐™ž๐™จ๐™š’๐™จ ๐™‚๐™ช๐™ž๐™™๐™š๐™ก๐™ž๐™ฃ๐™š๐™จ ๐™๐™ž๐™ฉ ๐™’๐™ž๐™ฉ๐™ ๐™ˆ๐™ฎ ๐™‘๐™ž๐™จ๐™ž๐™ค๐™ฃ ๐™Š๐™ฃ ๐™ƒ๐™ค๐™ฌ ๐™๐™ค ๐™๐™ช๐™ฃ ๐˜ผ ๐˜ฝ๐™ช๐™จ๐™ž๐™ฃ๐™š๐™จ๐™จ?

The beauty of franchising is that the system is already established (what employees to hire, how to train them, best marketing practices, products/services to sell, etc.) leaving the franchisee to jump in and run the business according to the training and manual. It is their way or the highway.ย  If it has to be your way, then you will be frustrated.

Franchising, in general, comes with strings attached that include corporateย guidelines on pretty much everything you’re allowed to do or not do. Ask yourself if you’re going to be able to run the business the way you think it should be run. If the answer is no, then franchising is probably not for you. –ย Kamyar Shah,ย World Consulting Group

A couple of additional questions to pose:

๐Ÿต.ย  ๐˜พ๐™–๐™ฃ ๐™ฎ๐™ค๐™ช ๐™š๐™ฃ๐™ซ๐™ž๐™จ๐™ž๐™ค๐™ฃ ๐™ฎ๐™ค๐™ช๐™ง๐™จ๐™š๐™ก๐™› ๐™š๐™ฃ๐™Ÿ๐™ค๐™ฎ๐™ž๐™ฃ๐™œ ๐™ฉ๐™๐™š ๐™™๐™–๐™ฎ-๐™ฉ๐™ค-๐™™๐™–๐™ฎ ๐™—๐™ช๐™จ๐™ž๐™ฃ๐™š๐™จ๐™จ?

Sometimes people buy a franchise because they think it will make them a lot of money but later experience that they do not enjoy the business. Typically franchise terms run from 5 โ€“ 15 years so use the adage, โ€œknow thyselfโ€ when considering your options.ย  Determine your interests and types of businesses you might really enjoy.

๐Ÿญ๐Ÿฌ.ย  ๐˜ฟ๐™ค ๐™ฎ๐™ค๐™ช ๐™๐™–๐™ซ๐™š ๐™– ๐™๐™ž๐™จ๐™ฉ๐™ค๐™ง๐™ฎ ๐™ค๐™› ๐™จ๐™ช๐™˜๐™˜๐™š๐™จ๐™จ ๐™ž๐™ฃ ๐™™๐™š๐™–๐™ก๐™ž๐™ฃ๐™œ ๐™–๐™ฃ๐™™ ๐™ž๐™ฃ๐™ฉ๐™š๐™ง๐™–๐™˜๐™ฉ๐™ž๐™ฃ๐™œ ๐™ฌ๐™ž๐™ฉ๐™ ๐™ฅ๐™š๐™ค๐™ฅ๐™ก๐™š?

Many franchise businesses are based on people relations and customer service. There is interaction with all those at the franchisor headquarters, other franchisees, employees and customers.ย  You will do best if you have a track record of good relationships with employers, supervisors and fellow work associates.

Considering a franchise business is akin to job hunting.ย  Just as you are carefully weighing all the franchise has to offer, they are interviewing you to know if you will make a good addition to their franchise network.ย  Just because you have the amount needed to invest in the franchise doesnโ€™t mean the franchisor will award it to you.ย  One financially qualified candidate considering a senior care resale opportunity bombed at Discovery Day.ย  Several franchisor department heads took him to dinner that evening and he couldnโ€™t hold a conversation.ย  They asked themselves how he would be able to converse with customers and employees if he couldnโ€™t communicate with those at headquarters. He left without an award offer. It has to be the right fit for both parties.

No-charge Franchise Consultation: 855-728-1970 (U.S.); 760-473-4659 (WhatsApp).ย  View call availability on the calendar by clicking the Schedule Appointment button.


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