Most People Have No Idea How To Do This
Most people don’t know how to buy a franchise. That’s right. How could they?
Most people start thinking about becoming the owner of a franchise because circumstances force them to. 80% of the people I work with have been downsized, and they don’t want to participate in the corporate shuffle. For them, it may make sense to pursue a franchise opportunity instead of heading back down the more traditional career path. A “job” path.
Most People Don’t Know How To Buy A Franchise
Most people don’t know if they’re even suited for a franchise business. As a matter of fact…
Most people aren’t even a match for franchise ownership. Unfortunately, some of them find that out a bit late. Like after they’ve written a ginormous check to a franchisor.
Most people expect franchise ownership to be a lower-risk proposition when compared to starting a business from scratch. That’s a false assumption. You need to read my article about franchise success rates, so you can learn the truth about franchise ownership.
Most people who buy a franchise do so because they’ve been seduced into thinking that they’re buying a “Turnkey” business or a “Business in a Box.” The marketing geniuses who came up with those words deserve kudos for their amazing copywriting skills. Unfortunately, none of them have ever owned a franchise business. They’re not talking from experience. But I do. I was a franchisee.
Most people who look at franchise opportunities think they should focus on franchise opportunities that are closely related to their interests and hobbies. I disagree. When hobbies become work, they aren’t hobbies anymore.
Most people listen to their friends and colleagues way too much when they’re investigating franchise opportunities. I’ve found that 10 times out of 10, these “advisers” have never actually owned a franchise.
Most people don’t spend time studying franchise trends. If they did, they’d have a better chance of spotting opportunities before they become “hot.”
Most people confuse franchise ownership with entrepreneurship. While it’s true that there are some activities franchisees do that are entrepreneurial in nature, the real entrepreneur is the person who created the franchise concept.
Most people don’t understand why franchise brokers/consultants/coaches offer “Free franchise consultations and advice.” Would you like to know why someone would offer to “Help you choose the right franchise” for free?
Most people think that it’s a lot easier to get a small business loan for a franchise than it is for an independent start-up business. Years ago that was true, but it’s not anymore. But, there are always ways for you to increase your chances of getting a loan approved. (Like maintaining a high credit ranking and keeping your debt low.)
Most people think that franchise agreements (contracts) are not negotiable, so they don’t consult with a franchise attorney. Today’s franchise attorneys can sometimes convince franchisors to change an item or two for their clients. It makes good business sense to invest some money with an attorney who’s well-versed in franchise law. You’ll sleep better at night if you do.
Most people will invest $200,000 or more in a franchise that they feel it would be almost “impossible” to lose money in, but they won’t invest a few hundred dollars to talk to a franchise industry insider to make sure they haven’t missed something in their research.
Most people believe that a low-cost home-based business is low-risk. Wrong. There’s risk-believe me.
Please Don’t Be Like Most People
Before you embark on your search for a perfect franchise, make a commitment right now…today, that you’ll do whatever it takes to learn all you can about franchising. That you’ll learn exactly how to do powerful franchise business research. That you’ll work with a franchise industry professional, preferably one who doesn’t have any skin* in the game. That way there’s no bias.
*Definition of skin: When someone you’re working with (a franchise coach/consultant/broker) would be getting paid a commission if you end up purchasing the franchise.
(The Franchise King®, Joel Libava, is a top franchise expert, the author of Become A Franchise Owner! (Wiley Publishing), and owns and operates Franchise Business University, where you can increase your franchise IQ with the online franchise courses offered there.)