When looking at various business models for the brave entrepreneurial spirit, franchises must be in the mix of what you may consider. Pros and cons abound, some of them I know first hand as I managed my mom's coffee franchise for a while back in the nineties.
I know that franchising is not for me because I'm a little too stubborn and independent-minded, and I like lots of free time and a flexible schedule. Although I'm getting the picture that franchises are coming in more and more shapes and sizes these days.
A franchise can be a great option for someone who does not want to start from scratch. Franchises already have a proven and tested business model, product or service, and a big plus - financiers abound. It makes sense to me, a franchiser is selling their business to you, so they should court you and walk you through the process of getting in business and ensuring your enterprise is successful. The level of support you receive of course depends on the franchise, but my guess is the supportive options outnumber the non-supportive ones. Your success is their success, right?
Also, I've noticed a lot of what I consider more "fun" franchising options like Snip-its (www.snipits.com) - a fun haircutting place for kids (I think I may want to get my hair cut there); and Abrakadoodle (www.abrakadoodle.com) a home-based art education program for kids. These more innovative and family-friendly concepts seem a far cry from my previous notions of food-service-only franchises. I think it may be possible to identify what you are passionate about and start doing a search to see if there is an existing franchise model out there that could incorporate your interests and offer you a blueprint for your first (or second or third...) entrepreneurial venture.
Some great tips from the Costco Connection magazine regarding franchising are as follows:
1) Read the entire disclosure document! (Sounds basic but certainly the devil can be in the details)
2) Contact current and former franchisees to ask them what they liked and didn't like about the franchise and the support and training they received .
3) Review the franchiser's audited financial statements with an experienced business accountant who can evaluate the financial strength of the franchiser and determine whether that franchise can assist you with accomplishing your financial goals. Definitely take a hard look at how long it will take you to profit from your initial investment.
Basically, do your homework! Look at your long term goals. (If you don't have any, now is a good time to start some personal visioning) The thing that has always made me cringe when I think of a franchise is the traditionally large upfront investment to get you going. Best case scenario, how long will it take you to recoup that investment? I'd hate to see you working your tail off for 5-10 years just to work off your initial investment.
On the other hand, some of the newer franchise concepts out there most likely require smaller start-up costs. So, if you want a simple blueprint, this may be a great option for you. Check out www.franchising.org for more resources and tips.
