|
(This exchange is much longer than normal, but
if you are looking for a franchise, you need to read
every word.)
Nick,
I recently went through an evaluation with a franchise
placement company and they concluded that my best
franchise opportunity exists within something I
have little or no interest - a retail shop. I feel
that I have to have an interest in a business in
order to be successful. However, the placement expert
says otherwise. He says that I have to demonstrate
leadership and place the right people within the
business for me to succeed. Who is right?
Adam
Adam,
You are right; 100% right. This 'expert' needs
to go back to expert school. First, only you should decide which business best fits you and your needs. Second, the "expert"
argues with you after you express discomfort. If it feels wrong then run, and run as fast as you can from this kind of help.
EVERY franchise 'consultant' offering
'free' services is a broker poised to earn a commission or finder's fee, while making us feel that
our needs are of prime importance. It's not true. Under this arrangement the broker has established
relationships with franchisors that have
agreed to pay a fee when a sale is made. Consultants charge for their services, brokers work for commissions and post-sale incentives.
Ultimately, nothing is free and after brief consideration, we all can appreciate the difference between a dedicated advocate and a salesperson working on a placement. The cost of a franchise goes way beyond
the "total initial investment", especially when you consider the cost of a bad decision. So, be sure that you are
#1 in the equation.
Competent guides can
provide great insight concerning the franchise industry in
general, if they have adequate experience to actually
know their subject, so ask about their background,
their experience and the length of time they have
been in the business. Look for the presence of a logical "screening mechanism" that
helps you reach reasonable conclusions about your options.
I wrote the Focus Program for Emerging Entrepreneurs
for just that purpose - see www.emerging-entrepreneurs.com.
Here's the bottom line. If you use a franchise consultant, use
one who has YOUR best interests at heart.
Good luck,
Nick
|
