Franchise Business Information & What To Trust
Franchise Information Is Abundant –
Discerning Among Sources Of Franchise Information
QUESTION: Can you recommend any beginner’s guides or franchise information sources for learning about the franchise industry? In other words, are there resources out there that amount to a franchise version of “DYI franchising” for starting a new franchise?
Yes, But Choose Between Fact & Fiction
There are countless resources for franchise information on both franchising a business and buying a franchise. Online research alone will result in more words and advertising than you can read in a lifetime. But the key is differentiating between factual guidance and salesmanship.
Information For Franchise Buyers
If your goal is to buy a franchise, you probably know by now that there are thousands of websites dedicated to selling them. Those sites are owned by franchisors and/or brokerage and advertising companies gathering sales leads. While those sites are good for viewing a variety of brands, they’re not necessarily good information resources. Why? Because their business is promoting franchise sales and unless you have an understanding of what you want and how the process works, you can be easily distracted. Self-analysis is always the best starting point. To know what it is you’d like to do as a business owner is nine-tenths of the battle.
Also, be aware of so-called ‘franchise consultants’ who are actually brokers. Know who you’re dealing with. Some may be knowledgeable. Many are not. But in the end, all brokers are working toward a commission, not your future success. A true consultant works for you and you can expect to pay for information and protection. A ‘free’ franchise consultant is not working for free.
Information If You’re Financing A Purchase
If it’s the financing side of franchising that interests you, some great capital resources are found in “Franchise Times“ Magazine. Franchise Times has thoughtful articles on all aspects of franchising. And it does a good job of keeping insiders abreast of industry news.
Information If You’re Franchising A Business
Becoming a franchisor is risky business. And it’s not a “do-it-yourself” proposition. The basics may seem straight forward, but the pitfalls are many. Interview and choose reputable help and demand a quality feasibility study. Many consultants attempt to sell business owners into franchising their brand. Don’t fall prey to that tactic. If you run into a consultant who is pushing you to franchise, that’s your signal to run.
Bottom line, franchise information sources are plentiful especially in the beginning stages. But if you’re serious about getting into the franchise business in any capacity, find a mentor that you feel comfortable with, one who’s looking out for your best interests. You get what you pay for and franchising is no different. Protect yourself and increase your chances for success.