Joel Libava
The franchise business model can be a great thing for the right person.
But………
Not everybody is right for franchise ownership…..
Do you enjoy following the rules?
A franchise agreement has certain requirements, all designed to keep the franchise brand uniform, and provide maximum profit potential for the franchisor.
Please make sure you are prepared to be a rule follower, before you sign any franchise agreements.
The Rules
- You will have to attend a formal training class, usually at the franchisor's headquarters
- You will have to follow a 200-300 page operating manual
- You will be required to use their signage
- You will only be allowed to sell products and services stated in your franchise contract
- You must be open for business as stated in the franchise contract
- You must use their advertising templates
- You must respect territory restrictions
- You must pay your royalties to the franchisor as agreed
- You may not sell your franchise to someone that is not approved by the franchisor
- Finally, you must do things their way, not your way
The rules stated above are not all of them. However, you will be able to see the rest of them in the 250 page FDD. {Franchise Disclosure Document}
Rules. Rules. Rules.
You are becoming a franchise owner because you want to get into business for yourself, and you want to use a proven plan, right?
The proven plan isn't your invention. Unless you have an idea for a product or service that you want to start from scratch, and are willing to put a lot of money and time into it, the franchise route may be the way to go for you.
So now that you know some of the rules, are you confident that you have the right kind of personality to actually follow the rules?
Find out now.
If you decide to start looking at franchises, check out this recent book review.
