For some business owners franchising is too large a personal sacrifice. One obvious choice for the future of your business is to maintain your current business course and focus solely on your current existing business location or locations. This may not be the right decision and it’s clearly the least dramatic, but there are benefits to staying the course.
First, the cost and time commitment required in franchising a business can be excessive, with the costs totaling more than one hundred thousand dollars, and in some cases, taking over a year to complete. While there are certainly many methods available to cut costs and save time, by no means is the franchise development process an inexpensive, quick process to complete.
Secondly, becoming a Franchisor requires a significant shift in your current managerial functions. This means that you will no longer be the “owner-operator” of a private, local business. You will quickly transform your daily role into the role of the “the Franchisor,” which requires the use of an entirely new skill set and an abandonment of your current role in the business. While this can be a welcome change for many would-be Franchisors, many find themselves unprepared for the sudden role change and find it difficult to “let go” of their current business operations.
Similarly, many owners are so vital to the success of their business that shifting their focus to the franchising process can prove threatening to the success of the original business locations. New Franchisors must firmly believe that taking on a more “executive” approach to their business and focusing on the management of a large, geographically distributed group of Franchisees, is more appealing than the routine operating responsibilities of their current business. Once the commitment is made to franchise, you will be forced to either stay the course as “Franchisor” or hire an experienced executive to manage the growth of your franchise so you can return to the daily management of your original business.
Being an entrepreneur most of my life, I feel this point could be among the most significant factors for a business owner considering franchising. When I speak personally to each of my potential clients, I make it a point to visualize this aspect by asserting to them that they must be willing to “walk away” from their current way of doing business, and that they will largely no longer be materially involved in their business as they have been accustomed.
Further, I ask each of them to imagine never returning to their store, restaurant or other business and greeting customers, vendors and employees again in the same way. I ask them to imagine their current location(s), one day becoming a franchise unit itself, which is often the case, and further assert their future as being limited to being a Franchisor. Not a pizza vendor, childcare service provider, dry cleaner operator or another business owner? If not, I ask them again if they think franchising is right for them and their future happiness.
There are many things to consider before taking this step, but if you’ve decided that you’re a good candidate for franchising and you’d like to make a similar move, contact us and see how we can help you on your way to becoming a franchise owner.