Reasons Not To Buy A Franchise Debunked
Reasons Not To Buy A Franchise Debunked
This is a common misconception. Yes, Franchisors do charge an up front franchise fee. Yes, they also charge an ongoing royalty payment. But most of this money is invested in you, your training, and brand awareness nationally and in your market. The franchise fee you pay gives you the right to the Franchisor’s system. They train you in all aspects of their business. The ongoing royalty payments are used for advertising and to keep the brand in the public eye. It is in the best interest of the Franchisor to make sure that Franchisees are profitable and happy. If Franchisees are unhappy, it will be very hard for the Franchisor to sell more franchise territories.
2. Franchise businesses are too expensive
Aside from the initial franchise fee (which provides you with thorough training on all aspects of the business you are buying), franchised businesses cost the same to start as independent businesses. This is where your research comes in. Choose a franchise model that you can afford. They range from a couple thousand dollars up to a half million or more depending on the type of franchise and the industry.
3. I can’t wait 2-3 years to make money
You may not have to wait 2-3 years to make money. Research – Research – Research. When you are deciding which franchise you want to purchase, call existing franchisees…ask them if they are profitable and if so, how long it took them to start making money.
4. I am not interested in auto or food
Great! You don’t have to be interested in auto or food to find a right fit in franchising. There are over 5,000 franchise opportunities in 80 different industries. There are thousands of franchise opportunities that have absolutely nothing to do with auto or food.
5. I don’t want to work 24/7
Again, this comes down to research! You need to thoroughly understand what you are getting into before you purchase a franchise. Ask existing franchisees how many hours they work now and how many hours they worked when they first opened the business. Starting a franchise or any business is hard work. You need to be prepared to work long hours (at least in the beginning) to establish your franchise.
6. The market is already saturated
Do your research! With all the different franchise opportunities available, carefully research which ones you think would be successful in your area. What types of retail or services are missing in the area around you?
7. I don’t want to buy myself a job
Buying a job is usually not the goal of franchise buyers. Sure, you will have to work in the business at least in the beginning. As your business grows and becomes profitable, you can slowly step back and put managers in your place. There are also other opportunities in franchising like Area Developer or Master Franchise opportunities that allow you to build your own local empire of franchisees and create residual income for yourself.
Franchising is a great way to get into business ownership. Confused by all the options out there? That is why you need to utilize the FREE services of a franchise consultant/broker. They can help you with the research and selection process of buying a franchise.
Reasons Not To Buy A Franchise Debunked - To learn more about this author, visit Anne Barr's Website.
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1. The franchisor makes all the money
This is a common misconception. Yes, Franchisors do charge an up front franchise fee. Yes, they also charge an ongoing royalty payment. But most of this money is invested in you, your training, and brand awareness nationally and in your market. The franchise fee you pay gives you the right to the Franchisor’s system. They train you in all aspects of their business. The ongoing royalty payments are used for advertising and to keep the brand in the public eye. It is in the best interest of the Franchisor to make sure that Franchisees are profitable and happy. If Franchisees are unhappy, it will be very hard for the Franchisor to sell more franchise territories.
2. Franchise businesses are too expensive
Aside from the initial franchise fee (which provides you with thorough training on all aspects of the business you are buying), franchised businesses cost the same to start as independent businesses. This is where your research comes in. Choose a franchise model that you can afford. They range from a couple thousand dollars up to a half million or more depending on the type of franchise and the industry.
3. I can’t wait 2-3 years to make money
You may not have to wait 2-3 years to make money. Research – Research – Research. When you are deciding which franchise you want to purchase, call existing franchisees…ask them if they are profitable and if so, how long it took them to start making money.
4. I am not interested in auto or food
Great! You don’t have to be interested in auto or food to find a right fit in franchising. There are over 5,000 franchise opportunities in 80 different industries. There are thousands of franchise opportunities that have absolutely nothing to do with auto or food.
5. I don’t want to work 24/7
Again, this comes down to research! You need to thoroughly understand what you are getting into before you purchase a franchise. Ask existing franchisees how many hours they work now and how many hours they worked when they first opened the business. Starting a franchise or any business is hard work. You need to be prepared to work long hours (at least in the beginning) to establish your franchise.
6. The market is already saturated
Do your research! With all the different franchise opportunities available, carefully research which ones you think would be successful in your area. What types of retail or services are missing in the area around you?
7. I don’t want to buy myself a job
Buying a job is usually not the goal of franchise buyers. Sure, you will have to work in the business at least in the beginning. As your business grows and becomes profitable, you can slowly step back and put managers in your place. There are also other opportunities in franchising like Area Developer or Master Franchise opportunities that allow you to build your own local empire of franchisees and create residual income for yourself.
Franchising is a great way to get into business ownership. Confused by all the options out there? That is why you need to utilize the FREE services of a franchise consultant/broker. They can help you with the research and selection process of buying a franchise.
Reasons Not To Buy A Franchise Debunked - To learn more about this author, visit Anne Barr's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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