The Franchise Business Is a Business!
Ultimately a franchise does reduce the risk to the franchisee having done the research and then gone through the costly mistakes that you might have had especially if you are a novice. A good Franchisor should have one main goal and that is to build a solid brand through profitable franchisees.
Franchisors need to offer training to the franchisee and hold them accountable for learning the franchise through tests and exams with a minimum pass rate of 80%. Franchisors will also offer site selection and negotiate leases for a fee. Something that is very important when doing your due diligence is talk to franchisees already in the system or attend seminars or webinars to find out as much as you can about regular people that are doing the business and learn from them. Don’t forget the franchise wants you to become successful because if you make money so do they.
With the development of the internet the franchise business can make it more affordable for the franchisee to obtain training through webinars. The internet has opened a whole new world for entrepreneurs out there with 1.5 billion online every day.
Because the Franchisor is buying in bulk from the suppliers they can pass on the savings to the franchisee but most franchises make money here buy marking the products up before offering them to the franchisee. Of course the franchise business offers many advantages over a traditional, independently owned business and has to be treated as a normal business. If the franchise model is a good one then odds of success are greater if you are not afraid of hard work and being away from your family.
Many people think a franchise is the way to go as long as they are prepared for the work and long hours that have to be put in. The franchise system is by no means a get rich quick scheme but it is an alternative for the inexperienced entrepreneur who needs a proven system. There are thousands of franchises out there because they are no different than any other business there is no guarantee for success a very successful businessman once said the best insurance of any business is the owners two feet planted firm on the companies floor. When considering a franchise make sure you are paying for a brand because if it is a start up franchise the franchise fee should be low. With a bricks and motor business be careful of the lease that the landlord can tie you up for years holding you responsible personally for the rent even if the business fails. These are some tips and advice that I have to offer. I have owned a total of 2 franchises with 10 locations and close to 100 staff.