A NICHE INDUSTRY GUARANTEES YOUR SUCCESS It is very important to be fulfilling a growing niche market, but this alone will not make your franchise endeavour a success. There are many factors to take into consideration when looking at a franchise model such as the level of hands-on training, marketing, on going training and how you implement the master franchise plan. These factors will be far more important to your business success than just the appeal, niche and growth factor of that industry.
I AM SURE I CAN OPEN MY FRANCHISE FOR LESS THAN THE FRANCHISOR PROJECTED If you are overly cheap and unrealistically optimistic and subsequently undercapitalized, you are writing your own plan to failure. Follow the business model with the Franchisor.
THE MORE THE BETTER, RIGHT? Sometimes, in an over zealous attempt to grow quickly, a franchise model will “over-saturate” a city or territory with many franchisees. Over saturation erupts with like-minded franchisees trying to steal business from each other. Watch for market share and/or some sort of protection based on population density.
NEVER BE THE FIRST FRANCHISEE IN A SYSTEM Who is going to get more love, TLC and hands on attention than the first franchisee to join? If the business concept is fundamentally good and the franchisor has hands on experience; being the first could actually be a huge bonus!
THERE’S NO NEED TO HIRE AN ATTORNEY OR ACCOUNTANT UNTIL I GET UP AND RUNNING. Early mistakes can be fatal. Be sure to have a professional lined up and involved before you commit. Ask questions and make sure you understand the business model and expectations.
I’LL USE MOST OF THE FRANCHISORS BUSINESS PLAN, BUT I’LL CHANGE IT UP TO FIT MY OWN STYLE If you buy a franchise, they have an established system. Use it. If you insist on altering it and making changes, you may violate your franchisee agreement and be terminated (with potential penalties)
ALL FRANCHISE SYSTEMS ARE PRETTY MUCH THE SAME Each system has a unique model, vision and corporate culture of its own. But every single one will be very different, especially between different industries. Even franchises within the SAME industry can be vastly different. Do your homework.
WHEN YOU BUY A FRANCHISE, YOUR SUCCESS IS GUARANTEED If business was this easy, we would all be rich and successful! Any new business venture has its own risks. Success comes from hard work, determination and your ability to follow a business plan. Work hard and don’t be afraid to ask questions along the way.
I’M SURE MY BANK WILL GIVE ME A BUSINESS LOAN FOR A FRANCHISE Banks are generally more willing to finance franchise operations than independent startups. However, they need to believe in your system, business plan and most importantly,...YOU. Be prepared to explain why YOU are perfect for this opportunity.
I CAN MANAGE PEOPLE, PROJECTS EVEN WITHOUT PAST EXPERIENCE Buying into a franchise agreement does not rewrite your business and employment experience. If you do NOT have previous experience managing people, projects, you need to let your franchisor know. No faking it allowed.