If you’ve chosen the right franchise for you, (which means your choice was based on what you feel is a nice match for your strengths, combined with enough market research to know that it has a reasonably good chance to succeed in your region) then being the actual owner of this franchise should be a fairly simple proposition. Why would you want to complicate it? You’re investing in a franchise because;
- You want to have more control in your professional life
- You want a business of your own
- You wish to follow someone else’s business system
- You want to get to market quickly
- You don’t want to be alone in your venture
- You want to build equity
The actual business model of franchising is really simple. How simple?
“Franchising is the practice of using another person's business model. The franchisor grants the independent operator the right to distribute its products, techniques, and trademarks for a percentage of gross monthly sales and a royalty fee. Various tangibles and intangibles such as national or international advertising, training, and other support services are commonly made available by the franchisor.”
So, let’s say you have purchased the franchise of your dreams. Now what?
First of all, after your financing goes through, and you have found a suitable location for your business, you’ll be scheduled to attend the franchisors formal training program. You’ll probably travel to their headquarters, and spend anywhere for 3 days to two weeks there. Here’s what you’ll do;
- You’ll go through the franchise operations manual
- You’ll learn how to use their technology
- You’ll learn how to hire employees
- You’ll learn about their marketing and advertising plans, and how to implement them
- You’ll learn how to sell your products/services
- You’ll learn how to work with your businesses’ financial statements
You may work in a simulated franchise operation, or visit a local franchisee, and spend the day there. Bottom line is that you will learn pretty much all you’ll need to run your new business on a daily basis. If your franchise will be having an official “grand opening,” you’ll tentatively schedule it, and learn how to make it a huge success.
So, when you invest in a franchise business of your own, you receive all the training and all the tools you’ll need to launch it. Usually, there are a couple of folks from headquarters on site for a few days when you finally do open your new business. They will help you work through any glitches you may be experiencing. (You will have glitches! Just because it’s a franchise, doesn’t mean everything’s going to be perfect.)
Do you see how simple this really is? You buy the franchise, you find a location, (Did I mention that the franchisor, in most cases, will help you find a great location?) you go through an in-depth, formal training process, you plan for your grand opening, and you…open! You’ve only had to figure out a relatively small amount of things necessary to get your new business launched during this entire process. (There is a lot to do on your end, but it’s a heck of a lot less than if you were preparing to launch a start-up business of your own.)
Now, I never said that all of this would be easy. It’s hard work, and you’ll be doing the work. The franchisor will be there for you a lot at the beginning, and less and less as you start evolving into a full-fledged small business owner. You’ll probably end up liking that part of it.
After all, you have a system to use. You have the necessary tools to use in your business. You have a marketing plan. You have support from the franchisor when needed. How simple is that?
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Joel Libava, The Franchise King,® is the president of Franchise Selection Specialists Inc, a franchise consulting firm that specializes in helping prospective franchise owners all over the US find great opportunities in franchise ownership. Joel discusses all aspects of franchising on The Franchise King Blog, is quite active in social media, and serves as the community promotions director for Small Business Trends.