Having worked in the franchise world for almost twenty years, I’ve heard this old adage more than enough times to understand its weight. And although franchisees buy and run their
own businesses at their own risks, they have access to a strong support
infrastructure every step of the way. This infrastructure includes corporate
offices, phone and email addresses of the franchisor and other franchisees, national
conference software, and field support staff.
So, by these measures, the old adage appears to be accurate
franchisees are in business for themselves, but certainly never by themselves.
Having sold franchises and also been a franchise consultant, I’ve noticed a change in how entrepreneurs approach franchising: Over the last
ten years, more prospects have purchased comprehensive franchise systems with
strict menu, decor, and marketing standards than ever before. This is because
doing so allows them to own their own business and also lessen start-up risks.
When I first landed in the franchise world, a turnkey
franchise was a hot commodity. Today, the term has all but disappeared. Now, franchise prospects are interested in
franchise systems with strict menu, decor, and marketing standards.
So, how did this happen and is it a good thing?
Early franchisors were larger, more established corporate
businesses. They possessed brand-name recognition, personnel, and proven systems.
Today’s franchises have less brand recognition and are rooted in concepts rather
than proven results. This makes them
more likely to challenge new systems and-since most of them lack financial
strength and confidence-avoid presenting a firm, comprehensive offering. The
only problem is that this flexibility can actually erode the fabric of the franchise
and make it harder to garner brand recognition and franchisee support.
If you want to invest in a franchise, choose one that has a
proven track record and can survive without undergoing major change. You must trust the franchisor you are going
into business with and allow them to perform their corporate duties, while you
execute at the unit level. If you choose
to purchase a franchise system and find yourself going back and forth with the
franchisor, wrestling for control — put the FDD down and walk away. Franchising
probably isn’t for you and you will be happier being in business by yourself.
About the author:
For the past decade, Upside Group has been helping franchisees develop their business plans and marketing strategies with an aim to increase sales and to ensure long term success. Comprised of an experienced and professional team, Upside Group understands every aspect of the franchise model and how to execute the most effective strategies for a number of different business goals.With measurable results and proven expertise, Upside Group is committed to providing clients with a list of comprehensive services that will strengthen the development of their franchise. The Upside franchise consulting business team is relied upon industry-wide to attract qualified franchisees that are in line with your strategic growth goals.
From sales planning to franchise lead scrubbing and screening, tracking, and customer management, Upside Group's proven franchise sales management professionals sell franchises, help with franchisee re-sales, and assist entrepreneurs interested in buying a franchise to find one in the industry that fits their professional vision and the potential for franchise profits in their local marketplace.