Just Say No!
Franchising can and should provide a successful journey for both franchisees and franchisors. Unfortunately, this is not always the case.
When investigating a franchise just say no….
If the franchisor is willing to change the franchise agreement just to make the franchise sale.
If your discussions with existing franchisees reveal discontent between franchisees and franchisor.
If there isn’t a comprehensive operation manual or set of manuals, either in hard copy or with intranet access.
If you don’t feel comfortable that you could work happily with the franchisor.
If there is no procedure by the franchisor to ensure that you have the right qualifications and attributes to qualify to become a franchisee of the franchise system.
If prior to purchase you realize that after purchasing the franchise you do not have sufficient money or borrowing power to supply the working capital to operate the franchise comfortably or pay your living expenses while you build the business.
If your wife, husband or partner are not totally happy for you to purchase the franchise.
If you are not allowed to visit a franchisee to get an idea of how the business operates and what that franchisee thinks of the system, the business and the support of the franchisor.
If the franchisor cannot satisfy you that they have taken proper steps to fully prepare the business for franchising in a sound and professional manor.
If there have been unsuccessful franchisees in the business and you cannot obtain a explanation of why they failed.
While investigating a franchise if you uncover any of the situations above, just say no!
Jim Coen, Mr. Franchise
I have learned franchising from the ground up. I’ve been a franchisee for a bad franchisor. I’ve worked for good franchisors and I’ve worked for marginal franchisors. I’ve helped many franchisees succeed.
I provide a consulting process that saves you time and money in your franchise search and provides you with the tools to make the right choice for you and your family.
Call: 617-469-3002
Comments
I was very interested in going ahead with a franchise when I learned that two had failed in the area I was considering. The franchisor didn’t mention it, and it wasn’t evident in the UFOC, I learned when I started talking to real estate agents.
It turns out I got conflicting reasons why the two locations failed and it soured me.
Very good reason to be soured.
What any prospective franchisee deserves is a honest explanation of what happened. If the franchisor understands what happened maybe they can work to make sure failure doesn’t happen again. If the franchisor isn’t concerned about franchisee failure chances are failure may happen again.
Thanks for your comments.
Jim Coen
Write a Comment