Practical, Pragmatic PreparationCooked up by CPA's, Attorneys and Insurance Brokers, with a dash of disgruntled franchisees and a pinch of fatherly advice from a Franchiser, this utilitarian dish is nothing if not healthy.
With a steady diet of this recipe, potential franchisees will leave the table full and satisfied and yearning for a VERY rich desert to make up for all the pragmatic, reasonable and intelligent ingredients used to prepare this three course meal.
Section 1: "Choosing Your Franchise" opens with a franchising history explaining how Singer Sewing Centers were the first franchiser in 1858. There are tales of early automobile dealerships, oil company and service station franchises, and motel chain successes that led to the explosion of the franchise phenomenon in the 1950's and 60's.
The most interesting portions describe the rise of Ray Croc's eFranchise of the Centuryi, McDonald's. There's a promise of a "Good News Future" discussing the establishment in 1992 of the American Association of Franchisees and Dealers or AAFD, (the equivalent of a Franchisees union).
There are multiple warnings that you must be very clear of the large difference between an entrepreneur and a franchisee. It is simply stated that if you spend more time thinking about how things "could or should be" then it is likely you are an entrepreneur and franchising is definitely not for you.
Predefined trade dress, business practices, required equipment, signage, etc., are each carefully chosen and non-negotiable by the franchisee. Once again, the AAFD proudly defines newly negotiable items of contracts and leases while clearly stating that the Franchiser maintains the upper hand in all cases.
From the initial colorful history right into the bland body of "how-to" information through helping the potential franchisee to determine the selection, research, pricing, purchasing a franchise and choosing location and leasing details.
Finally there is a tale by a none too happy franchisee who thought long and hard but ignored danger signs in acquiring a business she had decided on before her research told her that this was a sour deal.
Section 2: "Acquiring your Franchise" is the main course and while definitely healthy and well prepared, it is something you read because it is good for you, not because you like it. This course is made up of a discussion of another acronym, the UFOC or Uniform Franchise Offering Circular. This is a federally mandated document outlining 23 tightly defined items which are illuminated to simplify them for the reader.
If you are purchasing a franchise, then this will always be the first and most important step in determining core issues about a particular Franchisor. Two attorneys walk you through the preparation of the franchise agreement, lease negotiation, incorporation, then come the CPA's with cash flow, banking, loans and business plans. It's all critical to those considering the purchase and highly informative as a checklist of important issues.
Section 3: "Managing your Franchise" is a discusses the managing, motivating, hiring and firing of employees. The bulk of this chapter is made up of more essential pragmatic requirements of market research, taxes, insurance, accounting, marketing and business management practices. This section chafes a bit with the fatherly advice of a franchiser who basically suggests that franchisees should respect their elders and be good kids and they will be rewarded with favoritism. Business should not be run on favoritism, but realistically, it's good advice as people skills often determine business success.
Altogether, what it all comes down to is that operating a franchise is serious business, that it takes money to make money, and that it will clearly be very hard work.
There are the benefits such as managing your own time, doing what you enjoy, scheduling your own vacations, and making major decisions without a boss hovering over you. It will leave those with a taste for perks and bonuses wanting. This is definitely your minimum must-have businesslike presentation without discussing even a few of the benefits of self-employment.
This step-by-step guide will no doubt be good for you if you've already firmly decided that franchising is the career path you wish to follow. Nothing is left out and there will be plenty of good information to answer your financial questions and set a course for smooth franchisee sailing.
After you make your decisions you'll definitely want to go elsewhere for convincing reasons to become a franchisee because Franchising 101 offers up only pragmatic, practical fare. This is the hard work without discussing any of the rewards to tantalize you and only a sad tale of one unhappy franchisee answer your questions regarding possible self-fulfilling careers.
