That Franchise Down The Street IS A Small Local Business

As a franchise operator for a decade, I can tell you that there’s one myth that just won’t seem to die — that is that your local franchise somehow is not a small local business.

So, before I get too far here, I want to be sure that this is clear — pretty much every franchise will have corporately run stores, but most franchises are run by a local businessperson.

They are NOT billion dollar companies.

The are you or me, buying into a system, and paying extra to hang that brand name on the door.

The differences between Bob’s Sandwich Shack and Subway are aplenty, and there are advantages and disadvantages to both.

Let me share a few.

A franchisee will generally not have creative control over how his store looks — this is normally in complete control of the franchisor. Often times the franchisee is also at the mercy of the franchisor when it comes to frequent upgrades as well — to signage, fixtures, paint, sales systems and so on.

Bob at Bob’s Sandwich Shack can upgrade his decor never if he so chooses, but that franchise sub shop will keep the owner on his toes — likely every five years or less he will be forced to renovate/upgrade his store.

If Bob doesn’t like his sales software or cash register, he can simply replace it. The franchisee often cannot — they are bound by contract to use whatever the franchisor mandates.

Quite often running a franchise is more costly than running a “Mom and Pop” shop for a number of reasons, but not the least of which is royalties — generally speaking a portion of every dollar earned is sent back to the franchisor — part of being the franchise.

Anyways — the point of this article was to explain a few differences, but also point out one big similarity — behind the franchise in your small town is likely a local business owner, who needs your support as much as Bob at Bob’s Sandwich Shop. They both need your support when times are tough!

Thanks for supporting small local business!