Is Franchising Bad Business?

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Is Franchising Bad Business?

Posted On : Sep-28-2011 | seen (227) times | Article Word Count : 732 |

In addition there are many local and national franchise consulting and brokerage firms and franchise attorneys you can speak with.

Last month I participated in a business forum where one of the panelists stated that owning a franchise is one of, if not the worst, the ways to open a business. He further added that if someone wanted to start their own business, they need to create their own idea, brand and proceeding further by taking steps carefully.

Considering the panel including entrepreneurs, bankers, a business and franchise broker (not me), an attorney and business coach, I will let you guess the member that made statement.

But questions remain… Was this person right? Is that the owning of a franchise is a bad way to enter business?

Considering the fact that I have my own franchise brokerage and consulting firm, you might think I am biased in one way or another. Be this as it is projected, let me take a stab at these questions.

Regarding the first question, was the person right? The answer to the question is NO. Franchise concept is NOT the worst way to get into a business. Well, I guess that both the questions that are answered are right off the bat, but before you start thinking that as I have “franchise consulting and brokerage” and that is the reason that made me think this way. Here is the explanation:

There are a lot of horror stories regarding franchise development. If you search the web, you will run across countless stories regarding people that lost A LOT of money and failed miserably with a franchise. If you are curious; then, a careful research can lead to run across many examples. In fact, I have been viciously attacked by critics and former franchisees, when I provide any sort of argument regarding the viability of the industry and while I hate to see people fail; I know there are many poorly run franchise models, which does not clarifies the picture that mean owning a franchise is the wrong way to own a business.

So does that mean franchising is a bad business option?

The answer is certainly not, and while I am not going to perform a statistical analysis, (much to the chagrin of my critics) I would add that for every negative story you can find a positive one. My point here is, just because people failed, doesn’t mean franchise ownerships is a wrongful manner to enter a business and while you still may want to consider the source, there are many franchises, franchise consulting firms, brokers, attorneys, lenders, and franchise owners who would agree, argue and provide examples of many people that are VERY successful with a franchise investment.

So how do I know if a franchise is right for me?

Well, this the $64,000 question. In my experience and after having discussions with a few franchise consulting firms, brokers and franchisors, it depends upon a number of different factors including the quality of the franchise, a willingness to learn and follow the franchise system, having enough start up and working capital and also making sure it’s a business the person actually enjoys. That’s really the hidden elements enjoying what you do. I would further add that franchising is NOT for everyone. Too often I run across people who want to buy a franchise because they think in GUARANTEES success, which could not be further from the truth. I have been doing both franchise consulting and brokerage for years and nothing bothers me more when a concept uses the phrase “recession proof” to describe their model. The reality is, owning a franchise has risk… just like any other investment.

The bottom line here is a general statement, “franchising is the worst way to open a business” is just simply wrong. Saying that is just as bad as someone saying owning a franchise guarantees success. If you’re serious about the concept. I highly recommend you to carry out doing your research. Educate yourself about the industry and speak with people (particularly franchise owners) about their experience. In addition there are many local and national franchise consulting and brokerage firms and franchise attorneys you can speak with. This can help teach you about what to look for and make the best possible decision for you.

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<h1>Is Franchising Bad Business?</h1> Author: <a href='http://www.articleseen.com/profile_sunshineconsultingltd.aspx'>sunshineconsultingltd</a> Last month I participated in a business forum where one of the panelists stated that owning a franchise is one of, if not the worst, the ways to open a business. He further added that if someone wanted to start their own business, they need to create their own idea, brand and proceeding further by taking steps carefully.

Considering the panel including entrepreneurs, bankers, a business and franchise broker (not me), an attorney and business coach, I will let you guess the member that made statement.

But questions remain…  Was this person right?  Is that the owning of a franchise is a bad way to enter business?

Considering the fact that I have my own franchise brokerage and consulting firm, you might think I am biased in one way or another.  Be this as it is projected, let me take a stab at these questions.

Regarding the first question, was the person right?  The answer to the question is NO.  Franchise concept is NOT the worst way to get into a business.  Well, I guess that both the questions that are answered are right off the bat, but before you start thinking that as I have “franchise consulting and brokerage” and that is the reason that made me think this way. Here is the explanation:

There are a lot of horror stories regarding franchise development.  If you search the web, you will run across countless stories regarding people that lost A LOT of money and failed miserably with a franchise.   If you are curious; then, a careful research can lead to run across many examples. In fact, I have been viciously attacked by critics and former franchisees, when I provide any sort of argument regarding the viability of the industry and while I hate to see people fail; I know there are many poorly run franchise models, which does not clarifies the picture that mean owning a franchise is the wrong way to own a business.

So does that mean franchising is a bad business option?

The answer is certainly not, and while I am not going to perform a statistical analysis, (much to the chagrin of my critics) I would add that for every negative story you can find a positive one.  My point here is, just because people failed, doesn’t mean franchise ownerships is a wrongful manner to enter a business and while you still may want to consider the source, there are many franchises, franchise consulting firms, brokers, attorneys, lenders, and franchise owners who would agree, argue and provide examples of many people that are VERY successful with a franchise investment.

So how do I know if a franchise is right for me?

Well, this the $64,000 question.  In my experience and after having discussions with a few franchise consulting firms, brokers and franchisors, it depends upon a number of different factors including the quality of the franchise, a willingness to learn and follow the franchise system, having enough start up and working capital and also making sure it’s a business the person actually enjoys.  That’s really the hidden elements enjoying what you do.  I would further add that franchising is NOT for everyone.  Too often I run across people who want to buy a franchise because they think in GUARANTEES success, which could not be further from the truth.  I have been doing both franchise consulting and brokerage for years and nothing bothers me more when a concept uses the phrase “recession proof” to describe their model.  The reality is, owning a franchise has risk… just like any other investment.

The bottom line here is a general statement, “franchising is the worst way to open a business” is just simply wrong. Saying that is just as bad as someone saying owning a franchise guarantees success. If you’re serious about the concept. I highly recommend you to carry out doing your research. Educate yourself about the industry and speak with people (particularly franchise owners) about their experience. In addition there are many local and national franchise consulting and brokerage firms and franchise attorneys you can speak with. This can help teach you about what to look for and make the best possible decision for you.About the Author: The author of this article has specialization in Franchise Concepts. His enormous experience is summed up in the article ‘Franchise Disclosure Document brings the master plans for the Franchise Opportunities’. Along with this he also provides <a rel="nofollow" href="http://sunshineconsultingltd.com/services/franchise-consulting/">franchise consulting</a>, franchise development and brokerage services to both individuals and franchise systems.
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Author Resource :
The author of this article has specialization in Franchise Concepts. His enormous experience is summed up in the article ‘Franchise Disclosure Document brings the master plans for the Franchise Opportunities’. Along with this he also provides franchise consulting, franchise development and brokerage services to both individuals and franchise systems.

Keywords : Franchise Consulting, Franchise Models, Franchise System, Franchise Brokerage, Business Coaching, Strategic Business Planning,

Category : Business : Business

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