What’s Involved with Owning a Franchise?
With over twenty years in franchising, friends and acquaintances often ask questions about franchises. Sometimes they are generally curious about how it works, often they are motivated by an interest in learning more about owning one. I have divided the top questions asked, and some that should be asked, into five segments in creating this blog. This is the first segment of the group.
Part 1 of 5: What’s Involved with Owning a Franchise?
Owning Your Own Business
The American dream of business ownership is the most common route taken by a substantial number of successful entrepreneurs. However, getting to ownership seems to be an elusive and complex dream for many. The benefits should outweigh the challenges, but if they do not, perhaps owning your own business isn’t the route for you.
The advantages to owning a business that can change your life:
- Independence from a boss setting your schedule
- Freedom from worrying about having a job tomorrow
- Flexibility to work the hours you choose
- Pride in the work you do because you are helping others
- Stimulation from daily challenges, no dull office routine
- Leadership, the ability to mentor and motivate others can be extremely fulfilling
The challenges to owning a business can be the breaking point for those going it alone:
- Finding the finances to back your business, including managing cash flow
- Legal issues such as contracts, trademarks, rental agreements, etc.
- Hiring and training staff to run your business
- Building a brand takes a lot of time and money
The Franchise Model
One reason franchise ownership is growing so rapidly is due largely to the fact that a franchise model provides you with a system that addresses the challenges of owning a business. You are instantly buying into a proven business model, typically with financial assistance, marketing plans and training available.
The very basis of the franchise model addresses another challenge of business ownership – branding. When you enter a business relationship as a franchisee, you are getting permission to operate a business under the trademark of the established business (franchisor). Essentially a franchisee is running a business using the concept and success of the franchisor’s brand and operating methods.
Even though the franchisor has created and set up the actual business model, the franchisee is still considered an independent business owner. Day-to-day operations of running a business are left up to the franchisee. Handling the local media, promotions, hiring, maintenance of the building, bank accounts and various multitasking are the sole responsibility of the franchisee.
In the next installment, we will examine where to start the exploration process.
About the blog author
With over 25 years of franchise experience, Tiffany Dodson, CFE holds deep roots from senior marketing roles at well-known international franchises to recognition as a top performing franchisee, Master Developer, author, and speaker. Find Tiffany at The Salt Suite and reach her via Tiffany@TheSaltSuite.com.Back