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There’s all kind of advice you’ll find out there – and here – about what it’s like to be a franchisee, and what it means to purchase a franchise. But, in general, there are some things that people won’t tell you. In order to make sure that we’re doing our due diligence and providing you with all the information you need to know about being or becoming a franchisee, we thought we’d share some things they don’t tell you.
If You’re Starting Out…
You know what goes into purchasing a house, right – especially these days? Well, whatever financial microscope a potential lender might put you under, it pales in comparison to the financial microscope that a franchisor will put you under.
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It’s important that you have a full understanding of this before you begin the process of looking at franchise opportunities. Your financials need to be on lock down. This, mind you, doesn’t mean that you have to be flush with capital. But, even if you’re looking at low-cost franchise opportunities, you need to make sure that you have, at the very least, solid credit.
Territory Is Everything
A franchise business means different things to a franchisee and a franchisor. As a franchisee, you’re fully invested in the success of your particular franchise. The franchisor is invested in the success of all franchises. At first blush, it may seem like these things are inclusive of one another, but they’re not.
Especially with larger franchises, the franchisor may not be fully invested in making sure that you have the very best location or the very best territory. Therefore, make sure that whatever opportunity you might be considering, the location and territory you’re getting is actually viable.
Relationships Are Fundamental
The lure of becoming a franchisee is simple. You’re going to become a small business owner. But, that’s not exactly the case. In reality, you’re actually entering into a business relationship with a much larger partner, as well as other entrepreneurs who are in the same position that you are.
The way that the relationship functions between you and the franchisor, as well as other franchisees, is fundamental. If this relationship isn’t sound, then problems will ensure, whether they’re coming from other franchisees or from the franchisor itself. Make sure you have a firm understanding of the culture of a franchise before signing on. That culture is going to define your life.
Not “Get Rich Quick”
Ultimately, this might be the most important thing to understand about becoming a franchisee. Because it’s attached to the idea of becoming a “business owner,” many go into a franchise situation believing that they’re signing a contract to become rich.
In almost every case, your overall quality of life is not going to improve dramatically – at least in the beginning. Gaining success with a franchise takes time, and earning the riches you want takes even longer.
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Franchising is for people that are willing to put in work and to get their hands dirty. If you’re a person who’s capable of that, and you understand everything else that we’ve outlined, then you’re ready to be a franchisee.
