Industry Word

Blogs.Industry Word


Becoming a Franchise Owner; Having Realistic Expectations

Becoming a Franchise Owner; Having Realistic Expectations

By FranchiseKing, Guest Blogger
Published: November 30, 2010

There are two words used in the franchise industry that can be downright dangerous for some folks that are considering franchise ownership.

The words that ;m about to share with you are what I call,-visual words- Yo'll'see

The two words that 'm referring to are'turn-key'

What was the first picture that came into your mind when you saw those two words?

For me, I saw a key going into the door of an anonymous retail or food franchise. Then, thoughts of instant business success soon followed in my little franchise vision.

Now, 'm going to attempt to snap you out of your own personal franchise vision that you undoubtedly had when you read the words'turn-key. Snap!

A turn-key business doesn't mean that everything is all setup for you. It also doesn't guarantee that you'll own an easy business to run.

When you purchase the rights to a franchise business, even if the marketing/advertising literature (online or offline) says that you'll be buying a turn-key business, please remember that it's you that'll be turning the key. (Every day.) contributor, *Caron Beesley, reminds us, franchisors and franchise associations are very good at persuading would-be franchisees that franchising is generally a lower business risk, than independent business ownership. Read what else Caron says about a franchise.

I happen to feel that buying a franchise can be lower risk than doing a pure start-up business, in the right situation.

The Right Situation

  • The prospective franchisee's family fully buys into the idea.
  • The geographical location is right for the franchise business that's been chosen.
  • The financials of the prospective franchisee are strong.

If you're going to start exploring becoming a franchise owner, please make sure that you remain grounded. By grounded, I mean that you need to have realistic expectations of what your franchise life is going to look like, and feel like.

If you think that all you'll have to do is turn the key, you will have a rude awakening. (Rude awakenings in franchising usually come into play around month #6.)

Your life as a franchise owner will have its ups and downs, along with some twists and turns. It's not going to be easy. You'll be working harder than you ever have. Your stress level will enter the red zone. You may doubt your own abilities if the business takes longer to become profitable than you thought it would. (If you *talk with existing franchisees before you sign your franchise contracts, you'll find out when you can expect the profit to start trickling in.)

On the positive side of the franchise ownership ledger, you'll be (in most cases) glad you did it. It's a great feeling to finally be more in control of your own destiny. Working for yourself beats working for someone else, hands down. There's just a certain power to it, and you won't know it until you try.

The money part can be good too! Once you become profitable, thoughts of growth will become your new visual. Maybe you'll become a multi-unit franchisee. Who knows? You'll have options. Options are nice to have.

As long as your expectations of life as a franchise owner are realistic, and you can be patient while your new franchise business ramps up, the decision to be more in control of your life, via franchising, will be one of the best decisions you've ever made.

*Non-US Government links

Joel 1a.jpg

The Franchise King®, Joel Libava, is president of Franchise Selection Specialists Inc. Joel provides franchise advisory services to those interested in exploring franchise ownership, by showing them how to select and research franchise opportunities. He is frequently called on by the media for his no-spin insights on the world of franchising. You can follow Joel on his award winning blog-The Franchise King Blog

About the Author:

Joel Libava

Guest Blogger

The Franchise King®, Joel Libava, is the author of Become a Franchise Owner! and recently launched Franchise Business University.