Franchise Opportunities Are Tricky Business
Both Enticing & Potentially Dangerous, Franchising Means ‘CAUTION.’
Your Franchise Options Are Many. Educate Yourself.
There are literally thousands of franchise opportunities representing at least 100 industries (food, printing, cleaning, automotive, retail, repair, etc.). And they range wildly in price, depth, management, quality and franchisee satisfaction. Franchising is also nowhere near as safe as advertising leads us to believe. Franchise failure is high.
Franchise buyers must understand that not all franchise opportunities are created equal. There are good, bad and marginal investments. And while buying anything should first mean investigating, franchise buyers often buy with near blindness. Most buyers don’t have a plan for evaluating franchise opportunities. That’s the problem. Without a plan, the process of elimination and selection is just too confusing and dangerous.
Help Discerning Among Franchise Opportunities
Just as there are countless franchise opportunities, there are countless salespeople and brokers representing franchise opportunities. If you’ve been searching, you’ve come to know these folks by the title they like to use: Franchise Consultant. Unfortunately that title is terribly misleading. Those new to franchising expect that these ‘consultants’ exist to light the path to better buying.
Advertisements for ‘Free Franchise Consulting’ are the hallmark of the broker. In that nothing is free, how are they paid?. They’re paid a commission, a referral fee if you buy a franchise they introduce. Of course, the franchise opportunities shown will all be safe and profitable. To identify loyalty follow the money.
Have A Purchasing Plan
Franchise buyers generally don’t know what they want. That’s obstacle number one to creating a short list of any kind. And that’s precisely why the best salesman with the best story can sell a franchise that isn’t remotely close to what the buyer originally thought they wanted. Buyers without focus make decisions that are poor at best.
The most informed buyers are the safest buyers. If you’re buying a franchise, first have a plan before wandering into the forest. We created The Focus Program for Emerging Entrepreneurs to address that issue among many others. It will be the most dynamic, inexpensive, logical process you’ve ever encountered for making better choices about self-employment. Check it out.
Choosing From Among Franchise Opportunities Requires Due Diligence
We must know what type of business might best suit our skills, finances, and interests. It’s the first step in eliminating vast numbers of franchise opportunities that make no sense and only create confusion. So what do you do if you’ve narrowed your choice to pizza franchises and find at least 20 possibilities? You chart out a plan for franchise due diligence. BTW, the Focus Program above will also guide you in due diligence. But, no matter how one approaches the issue, due diligence is essential. To make a purchase without it, is to buy blindly.
Franchise Due Diligence Is Critical, But It’s Ignored Or Done Poorly.
It took years to understand why most franchise buyers ignore investigation. Here are my conclusions.
- People believe that franchising is safe. Investigation really isn’t necessary. (See ‘failure’ reference above.)
- Franchise salespeople do their job. Once a buyer accepts the dream, the sale is made. It’s all so beautiful.
- Due diligence is hard and requires expertise. If one doesn’t know what to look for, it can’t be found.
Real Help, Real Protection
In the end, if you’re buying a franchise, commit to having a plan that includes knowledge of yourself as well as a method for investigating opportunities. Examine the potential relationship with a franchisor unemotionally to make the best decisions. Think about searching for franchise opportunities in terms of selecting a friend or a mate. Emotions must take a second seat to objective analysis. Most buyers skip right past franchise due diligence and for that mistake they may pay a big price later on. Buying the wrong franchise can ruin your life. Be good to yourself. Protect yourself.
If you want expert assistance with your investigative due diligence, make contact. Our services are outstanding. Good luck.