I loved the comment I received on the post so much, that I want to write about that today.
First, thanks for the hilarious comment. You are right. Franchisees more or less fit in one of 3 categories and then several sub-categories.
For those of you reading this because you are contemplating buying a franchise, this is good information because you will fit in one of these categories and also interact with people in the other categories.
If you are buying a franchise to be your own boss.......
you are not alone. I think that is the biggest group of franchisees. If you are a go-getter and feel like you can sell anything to anyone and are good with money, and have a good business head, you will probably be very successful. Owning this business will give you a chance to spend more time with your family and your income will not be limited by others. However, if you are buying the franchise so you can spend half of your time with your kids, or because you didn't get along with people where you have worked in the past, or because your wife or husband thinks you should be making more money and this is your best hope of a better income, you might want to rethink the idea.
You know those "Your probably a redneck if........" sayings of Jeff Foxworthy?
You probably shouldn't buy a franchise if............
You haven't kept a job more than 3 years even if "it wasn't your fault".
You are buying it because somebody died and you are buying it to put the money to good use.
You are buying it because nobody will hire you because of your driving or police record.
You need the exercise outside because you have been working inside your whole life.
You need to work inside in an office because you have been working outside your whole life.
You want to learn something new and don't know the first thing about the business you are buying.
You can't balance your checkbook.
You have gone through personal bankruptcy.
Your husband/wife/partner has always taken care of all the financial decisions.
You don't know how to drive.
You are going to be a bad example of whatever you are selling i.e. a car wash franchisee that always has a filthy car, a maid service fran. with a dirty house, a hamburger chain fran. that is always eating at the Mexican restaurant.
There are good franchisees that make a ton of money and are very successful. If you are on the computer reading a blog about franchisees, you are probably a good candidate.
Fran
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Dear Fran:
I’m glad you liked my comments. I’m betting that a smart chic like you already knows that the word “franchise” originates from the Anglo-French, meaning freedom and liberty. Alas, what so few prospective franchisees don’t know is that in today’s world, freedom (as we know it) has nothing do with owning a franchise.
Owning a business will always seem like a slam dunk to the drones longing to escape from Cubicle Ville. But running a business is the tricky, three-point shot reserved for those in the big leagues. Let’s abandon logic for the moment and suppose someone is already business-savvy. What are the prerequisite skills needed to make it in Franchise Land?
Here is one that you will hear ad nauseam: “You should have a strong desire to succeed while being your own boss.” More importantly, you should understand that you are NOT going to reinvent the wheel when you purchase a Wonder-Rama franchise. Billions were served because “people love consistency.” Do not go boldly forth into Franchise Land thinking you can change the formula with a bright new idea. Uniformity rules.
Do not dream of owning a McRoyalbucks franchise only to be appalled by the idea that a steady diet of fat-laden junk food will have your customers on the fast track to a triple bypass. The corporate office will not take kindly to your adding tofu to the menu unless they think of it first.
Running a franchise is NOT for the free-spirited, independent-minded, innovative entrepreneur. It is however, ideal for people who want to bust their butt following a proven method for making a tidy profit, who will agree to follow the corporate party line and who will cheerfully pay a royalty for the privilege of riding on the coattails of a nationally-recognized brand.
So what do you need to do before deciding to buy a one-way ticket to Franchise Land? (That’s right, one way. Beware the non-compete clause).
Step Number 1. You need to look at the whole idea with a jaundiced eye. Don’t behave as if you are on a first date with someone from Baywatch. Remind yourself that the buxom models probably have implants and the hunky lifeguard may be on steroids.
Start by reading the October 10th, 2006 issue of Forbes “Ten Reasons Not to Buy a Franchise.” If you cannot find this article online, forgetaboutit.
If the salient points of this article do make you run for the exits, you can proceed to the next step.
Step Number 2. Caveat Emptor! I didn’t take Latin, but even I know what this means. Unfortunately, too few franchisees do their homework. I took part in presentations to prospective franchisees and was amazed at how little they bothered to ask while they had the chance. Most of the prospects seemed as if they were in a hypnotic trance while being shown around the corporate HQ. Maybe it was the non-stop whirl of canned presentations, the plastic-smile- razzle-dazzle or the Ambien-laced coffee. Something got to them.
Do some detective work before you plunk down grandma’s Mutual of Omaha money. If the company is publicly owned, ask for an annual report. It might a good idea to know how to read that annual report. Do you know what to look for? Do you know what you are looking at? If, like me, you can’t make heads or tails out of a spreadsheet, make sure you have a business partner who can. Or, if you flunked out of the London School of Economics, go to Google and type in “How to Read an Annual Report.” Otherwise, go back to your cubicle where you belong. You have no business running a business.
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