Wednesday, June 24, 2009

Franchisees and Franchisor - Married

Are you married? Do you enjoy being married? What does this has to do with owning and operating a franchise? Everything.

When you buy a franchise, you are committing yourself to cooperate, to be loyal, for richer or poorer, in sickness and in health, to obey, till death of the franchise you do part. That's your part as the franchisee. For the franchisor, the "obey" part isn't there.

If a mandate comes down from the corporate office that you must be audited, or inspected, etc, you better pencil it in on your calendar. If they decide that everyone will buy a new sign with a new logo, then you will be budgeting for a new sign. There is no "but I was going to use that money for a new boat" type backtalk. If the logo is new, the sign, the stationary, the yellow pages, everything will change, and you will pay for it.

When you sign a franchise agreement, you are pledging your love and promising to wear your branded ring so that everyone knows who you belong to. After several years and your business is built up, it is especially like a mature marriage. Even if things aren't great, you are used to each other and it would be more trouble to change it than its worth. Besides, what else are your going to do?

If you are not a good partner in a marriage or in a neighborhood association, or a country club, then be doubly sure about buying a franchise. It can be a wonderful thing to own your own business and have the name recognition a known brand brings. The operating systems have been proven, the company is there to help you so you aren't alone. But just like marriage, it isn't for everyone.

It is a commitment when you get in bed with a franchise. No one night stands or playing the field. If you have visions of keeping another job on the side, not being faithful to obey, being able to turn away when times are rough, then look at your franchise agreement again, whether you have signed it yet or not.

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