This
is one of those "homework" items that cannot be over
emphasized. Conducting franchise
review, talking with other successful franchisees and
understanding what has made them successful is one of the most
important activities you can do when determining if a franchise is a
good fit for you.
You
can easily be mislead by the franchisor's own sales information, only
because you see only what you want to see and the franchisor is not
going to go out of their way to emphasize the negative aspects of the
franchise. Details in company advertising can be overblown on the one
hand and certain points can be skewed to favor only certain aspects
of franchise ownership. Most franchisors provide truthful facts, but
sometimes these facts don’t tell the whole story. Remember, it's
in a
franchisor's best interest to sell you a franchise - making it work
to your benefit is up to you.
Talking
with Franchisees
You
need honest, unbiased information from others that have already made
the leap of faith and are operating their own franchise. Seek out
franchisees who have already gone through the process you are now
considering. In addition to talking with them on the phone, ask if
you can visit with them in person to talk about the experience they
have had in owning the same franchise that interests you. Find
franchisees with varying levels of experience - one that has been in
the business
for less than a year, another with 3 to 5 years
experience, and another with over 5 years experience. You need to
understand the various phases of the business.
Meeting
with Franchise Owners
When
looking for franchise reviews, meet with those who are willing to
talk to you in a comfortable setting. You’ll get better
information. Also, don't waste their time. Be direct and get right to
the questions. Here are some open-ended questions to get you
started:
- Have you had a good experience as a franchisee?
- What were the worst and best parts of the experience?
- Has the franchisor been supportive and honest with you?
- Are there things you regret? If so, what are they?
- Would you go through the process again?
- If you could change something, what would it be?
Using
questions such as these gives you an overall assessment of the
experience of being a franchise owner. If you are still excited about
the franchise after the franchise reviews, then consider assessing
yourself.
Assessing
Yourself
Put
yourself in the position of a funding a franchise owner and
ask the following questions:
- Are you willing to sacrifice the time needed to get the franchise going?
- Are you willing to be flexible as the franchisor’s model changes and evolves?
- Are you a "people person"? Do you have the temperament for dealing with the public and employees on both good days and bad?
- Do you have the personality for franchising?
- Are you passionate about starting a business?
- Can you weather seasonal ups and downs that may come or are you the type of person that worries about everything?
Franchise
reviews are a critical step in your franchise evaluation process,
however, it won't give you all the information you need. You have to
look at yourself for the rest. Make sure the franchise meets your
standards and make sure your standards also match the franchise. Only
then will you find a combination that leads to success.