Most people who buy franchises have absolutely no idea what they’re doing.
Kind of harsh, right? Especially if you happen to be looking at franchise opportunities. But it’s true. And it has nothing to do with your business smarts and or intelligence.
With that in mind, you have two choices.
1. You can disregard what I just said, continue doing what you’ve been doing, and potentially make a bank account emptying mistake.
2. You can admit you don’t know* how to buy a franchise and do whatever it takes to learn how to do it right, so you can become the owner of a profitable business you can be proud of.
*Of course you don’t know how to buy a franchise. You’ve never done it before!
You: “I know what you’re trying to do, Joel. You’re just trying to scare me so I’ll buy one of your books or hire you to consult with me.”
Let’s Get This Out Of The Way
I’ve been providing franchise researching and information on the best franchises to own for 20+ years. And 90% of it is available in the public domain. In other words, it’s free!
So if you have a couple of months to spare, you could probably read enough of my articles and watch most of my videos on franchise opportunities and more to get a good feel of how to choose, purchase and buy a profitable franchise. Probably.
And if you can give yourself another week or so, you may be able to listen to enough of the radio/podcast interviews I’ve done over the years to educate you further. Maybe.
Heck, I’ll even get you started. Check out the next section of this blog post.
Free Information For People Who Want To Buy Franchises
Here’s where you can find my free franchise articles, videos, and interviews. Have at it.
The Franchise King Blog® (1750+ articles)
U.S. Small Business Administration (85 articles; 40 are still live on their website)
Entrepreneur® (6 articles)
Small Business Trends® (50+ articles)
Franchise Direct (120+ articles)
AllBusiness.com (30+ articles)
In addition, I’ve written articles on franchising for The New York Times® website, CNBC, Fortune®, BPlans, Corpnet, American Express® and more.
StartupNation® Radio Interview
Franchise Interviews Podcast
Duct Tape Marketing® Podcast
Small Business Advocate® – 40+ Radio Interviews
Miscellaneous Radio/Podcast Interviews
My You Tube Channel
Check out my franchise videos on YouTube. You’ll find them helpful.
And those are only my franchise articles, franchising videos, and audio resources. There are hundreds of other franchise business resources you can use and learn from.
The Not Free Part Of Buying Franchises
For some, there’s going to come a time when basic information-gathering transitions to “I’m starting to like the idea of using the franchise model to be my own boss.” Notice I said, “for some.”
That’s because most people don’t want to risk their money on something they’re not sure will work. Like owning a franchise business…or any business. And that’s okay.
But if you’re determined to take more control of your life by owning a franchise business, and you’re willing to take on some risk, welcome to the real world.
A world where, in most cases, free information only gets you so far.
The Hiring Professionals Part
The next logical step for those interested in buying a franchise the right way is to hire a few business professionals (ahem).
If you’d like 1-on-1 guidance as you investigate franchise opportunities, you can work with me.
In addition, you’re going to want to talk to a firm that specializes in helping new businesses, so you can get an idea of how the numbers are going to work.
Next, you’ll need to prepare a formal business plan. But there’s proven software you can use to do that. And when you start hiring your employees, recruiting automation software will simplify the process too.
Finally, if you’re 90% sure you’re going to move forward and buy a specific franchise business, you’re going to want to need to hire a competent franchise lawyer.
My Observations About Most People Who Buy Franchise Businesses
Unfortunately, most of the people who buy franchises today don’t do the things (above) they need to do to lower their financial risk.
Like hiring franchise industry professionals, accounting/bookkeeping firms, and franchise attorneys. And you know why.
Because they want to save a few bucks!
Think about this:
Jim and Susan are about to plunk down $75,000 upfront, and then sign on the dotted line for a $150,000 small business loan…but are all of a sudden “cautious” about spending a couple of thousand dollars to protect themselves before they make a 10-year commitment* with a franchise company. Really?
*Most franchise contracts are 10 years in length.
How smart is that?
You Can Do It Alone
There’s nothing preventing you from trying to figure out how to choose, research, and buy a franchise all by yourself. Doing so would certainly save you money.
Or would it?
P.S. I’m dedicating this post to former franchisees.
Not the people who sold their franchise businesses for a profit and are (hopefully) living large near a spectacular turquoise blue body of water.
But to the former franchisees who went out of business-and didn’t need to, if only they did their homework upfront and spent some money to help protect themselves before they purchased their franchises.