Before you Franchise, Read This…

The biggest question on your mind, if you’re considering the purchase of a franchise should be, “What do I get for the money I’m sending out?”.  No, I mean it.  You really need to stop, quantify and put a value on, “What You are Being Sold”.   Take a step back forget for a moment that you really like the idea, forget that you want to work for yourself, forget everything you’ve been told about the franchise.   Now ask two questions.

1. Did you know the name of this franchise before you considered the purchase, and do you know what emotion that name draws from people?

2. How many other people have bought into this franchise, are there enough people, where as a group, you can collectively purchase national advertising?

Only if, the answer to those two questions is a resounding YES, is this company worth further consideration. 

Why?  Read on…

The number one reason is simply because… If you have what it takes to run a successful business, then you will be successful with or without a franchise.  Qualities like, risk taker, persistence, perserverance, dedication, and a love for what you do are absolute musts, no matter what.  Do you have these qualities?  It’s time to be honest with yourself, before you write any large franchise fee checks.  No franchise system, is going to give you these qualities, and no franchise system is going to be successful for people who don’t have these qualities.

So you do have these qualities? Well then…

There are only two things that make your franchise fee and monthly royalties worth a dime.  Brand name recognition, and collective national advertising.  If these don’t already exist for the company you’re considering then you will be paying for the chance that some day these might exist.   If these don’t already exist, then what your franchise broker is telling you, about it being a proven system, is a lie.  If it was a proven system, these things would already exist.

Take it slow.  Really spend time doing a lot of research on any franchise you’re considering.  The best thing to do is to call current franchisees of the franchise you’re considering and ask, “If you had it to do again, would you?”.  Then wait six months to a year and call them back and ask them the same question again.  If they have the same answer, then and only then is it worth considering further.  Research and find owners yourself, do not take a list from the franchise to call.  That list is edited to include only the people they want you talking to.

Further… do not, listen to anything the franchise broker has to say.  Not a single word.  This franchise broker does not own or run a location. This franchise broker does not know anything about the business except, what might convince you to buy it.  This franchise broker will mislead you no matter how honest he/she comes across.  Just remember this franchise broker’s livelihood and family’s well being depends on selling this franchise to you.  It does not matter how honest someone is, this fact will trump that in the end.