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Franchise Opportunity - Questions To Ask The Franchisor - #44

Posted in Franchise Business Consultants by admin on April 13th, 2008
Tip! Develop a franchise brand positioning platform. Recognize that your franchise is a separate (though interrelated) brand from your consumer brand, and develop a franchise brand development platform.

Finding The Right Franchise

Whether it’s hamburgers, pizza, telecom, coffee, Internet, muffler parts, or seniors’ services, there are Franchise opportunities available to evaluate. There are great Franchise systems, good Franchise systems, and bad Franchise systems. The challenge is to ask the right questions to find the right system that will fit your goals and dreams. The key is to ask the questions - and listen closely to the responses. Only then can you determine if the Franchise opportunity is the right fit for you. So whether it’s food services like burgers or coffee, professional services like telecom or IT, or manual services like cleaning or oil changes, ask the questions and record the answers.

Tip! Re-sell your current franchisees. To calculate how many times you need to re-sell franchise owners, add up every royalty check they’ll write and add 1.

Control Your Own Destiny

The degree of priority that this particular criterion holds for an individual is probably the single most important factor to consider before making the decision to strike out on your own. Just how important is it that you control day-to-day decisions about what you do, and where you do it. How important is it to you to know that you have ultimate control over whether you stay or whether you go at some point.

Tip! ) Franchises often have recognized brand names, which consumers feel safer with.

The reality is that it’s not really possible to control your own destiny with a job. Even the most important CEO’s must answer to the Board of Directors. In more traditional circumstances, when and where you travel, when you get promoted, how much you earn, and how long you keep your job are items that are simply not in your control. The boss, and his boss, and her boss, control those things. As we have seen, bosses change, as do Boards, and status quo is sent for a topsy-turvy spin. When, and if, those things happen, are generally not in the control of an employee.

Tip! ) Franchise Organizations and Companies have set up territories between each outlet; The Catholic Church has member churches set up in a similar fashion.

As we have seen in recent years, decades really, right-sizing, down-sizing, out-sourcing, and severance packages are the norm of the employment world. The importance of these items, including the degree of control you require over them, should help guide you to your own comfort zone. In addition to a systematic approach to the objective items in making a decision to become an entrepreneur on your own, or to become a Franchisee in a good system, these emotional factors should be ticked off the list as well. Are you satisfied where you are? Can you achieve your goals and dreams in your current situation? Are you more likely to satisfy the need to control your results with your own business? How important is each criteria to you?

Tip! ) Marketing Plans are already in place in a franchised business and therefore you will not waste money on advertising, which does not pull for you.

Did you have to travel over your son’s birthday? Did you have an expense disallowed unfairly? Is the likelihood high or low of the bronze (as opposed to golden) parachute at age 53, with a low chance of a comparable position in the job market? Did you get passed over for a promotion, did you have to work overtime through the Christmas holidays, did you miss your daughter’s volleyball tournament because you couldn’t get off early on Friday? If these things eat at you, perhaps a change in course is due. If you accept that these things go with the territory of employment, then change may not be necessary.

Of course, as you progress up the ladder of promotion, you gain some additional autonomy for these types of issues. However, you must also try to determine if that next rung also carries an additional risk of termination at some point.

On the other hand, will being in the business you are evaluating help solve the problems that are important to you? Will your business cause the same travel issues? Will the time demands, or strange hours of being a businessperson, be an advantage or disadvantage?

Evaluate these items honestly, and with as much empirical evidence as you can gather, along with the other control issues that matter to you. Then determine which situation meets your goals more appropriately. And determine how important that is to you. Then it’s time to move on to the next evaluation criteria.

Tip! Get your salespeople and brokers on-board. Experienced, reputable salespeople and brokers can be useful in generating interest and following up, but you must be careful that the prospects they bring you - and the prospects you sign - match your profile, are adequately capitalized, have a clear understanding of the franchisor/franchisee relationship and have realistic expectations.

If you always use the

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